Post magazine – 13 November 2014

In this issue, with 40% of premiums under threat from emerging markets, we ask what the future holds for the London insurance market.

International Underwriting Association CEO David Matcham told Post that, although the London Matters report’s findings on the growing proportion of business written outside London confirmed the IUA’s own research, the “starkness” of the reasons for brokers and risk managers not using London were “cause for the London market to take notice and implement changes”.

In other news, Hyperion and Willis have been touted as early movers in a predicted spate of London market broker merger and acquisition activity; motor insurer profitability will remain “under the cosh” at full year, following warnings from firms around increased personal injury claims in the third quarter; insurers must pick their battles when deciding which cases to pursue for private prosecution; and the Association of British Insurers is to redouble its lobbying efforts on reforms for graduated driving licences after adding its name to a joint letter dispatched to the British Medical Journal designed to raise awareness.

We also have a round-up of the news from Post Fraud 2014 conference, including insurers being accused of making a ‘crisis’ out of fraud for own industry gains; defendant parties are to be prioritised to assist with the Insurance Fraud Bureau’s strategy; government data security rules mean major challenges for My Licence; and the Metropolitan Police insists fraud is still on the agenda despite Catcher’s demise.

Our State of the Broking Nation research wraps up by focusing on digitalisation and professionalism. The insurance market is rapidly changing as digital technology presents new ways to reach clients and new ways of working. How well set up is the broking sector to engage with these opportunities and does the digital revolution come with downsides? In the last instalment of our survey, we report brokers’ thoughts on the impact of digitalisation on insurance broking as well another theme that is changing the face of broking: the drive towards greater professionalism. 

Hiscox UK’s Ross Dingwall and R&Q MGA’s Nick Hales are in the C-Suite. Dingwall argues that brokers should not lose sight of what they do best in search of a ‘bigger piece of the pie’, while Hales comments it’s ironic that the fundamental definition for success for an MGA is in its specialism. DWF’s Jamie Taylor is in the Fraud Focus seat asking where fraudsters will turn their attention to next, now that the industry is tackling motor fraud.

Mark Sands meets DLG managing director of personal lines Mike Holliday-Williams. After more than three years as RSA Scandinavia CEO, he talks about what he’s learnt from his time abroad and how he is responding to the changes in the UK market.

Our In Series features on personal injury continue with a look at conflicting arguments between insurers and lawyers. While insurers are hopeful recent reforms have signalled a sea change in personal injury, making it more difficult to succeed with fraudulent claims, claimaint lawyers say genuine claimants will suffer. So who’s right?

Finally, we look at zoo insurance. The death of a man who entered a tiger enclosure at a Delhi zoo made global headlines in September, but has the tragedy had an impact on the wider zoo insurance sector – and how can the industry protect itself from such incidents?

Enjoy the read!