IUA TO WORK WITH RISK MANAGERS ON DEVELOPMENT OF NEW INSURANCE PRODUCTS
Efforts to boost the development of innovative insurance products in the London Market have received the support of UK risk managers.
The Board of the International Underwriting Association discussed the challenges of providing cover for emerging risks at a recent meeting with the Association of Risk and Insurance Managers (Airmic). Both organisations agreed a collaborative approach would encourage innovation and allow London to build on its reputation as a global centre for the development of new policies.
Dave Matcham, Chief Executive of the IUA, said: “The London market is currently developing a plan to make it a more attractive destination for international re/insurance business. A key part of this focus is attracting the best talent to the market so that it can continue to evolve and develop product offerings in response to changing business needs.
“But innovation rarely happens in isolation. While individual companies are, of course, developing their own new products, such is the likely scale of demand for coverage of emerging risks like cyber, a wider market response also seems worthwhile. In that regard the IUA will invite representatives from the Lloyd’s market to join in this initiative.
“The co-operation with Airmic members will be a great asset as we seek to address the competitive challenges laid out in the recent London Matters report published by the London Market Group.”
Both Airmic’s Chief Executive John Hurrell and its Chairman Helen-Clare Pope attended the February meeting of the IUA Board. They welcomed the opportunity to cooperate with any future product development initiatives and indicated that many Airmic members would be keen to participate in discussions with London market firms.
Mr Hurrell commented: “Airmic members are increasingly being kept awake at night by emerging risks where currently there are no or inadequate insurance solutions. These are often difficult risk areas for potential underwriters as there is a lack of relevant historical data and exposures are uncertain.
“Against this background, we welcome plans for a more co-ordinated market response to looking at these risks and a willingness for underwriters to work with potential policyholders to develop appropriate and effective responses to these growing needs. Airmic members will be very pleased to participate”
Airmic has 1200 individual members across 500 firms with an annual direct insurance spend of £5bn. It represents two thirds of the FTSE 100 companies. During the IUA Board meeting Mr Hurrell and Ms Pope confirmed the association is working with risk managers to address a number of developing areas including both reputational risk and cyber liability.
About the IUA
The International Underwriting Association of London (IUA) represents international and wholesale insurance and reinsurance companies operating in or through London. It exists to promote and enhance the business environment for its members.
The IUA’s London Company Market Statistics Report shows that premium income for the company market in 2013 was £17.445bn with a further £6.831bn controlled by London but written elsewhere. These results are based on a comprehensive survey of 57 companies and combined give an overall intellectual and economic premium total of £24.276bn for the London company market.