23rd June 2019

Newslink Global Insurance Trends-The Week

Technology has moved from third to the top issue in the risks facing insurers worldwide in the latest biennial CFSI(Centre for Financial Services Innovation)/PwC Banana Skins survey from 927 senior manager respondents across 53 territories. Cyber risk and change management are still in the top three, and Brexit remains at the foot of the list. Meanwhile, insurer legacy systems are holding back a single customer view and slowing digital transformation, according to a new MarkLogic global survey, and Econocom research indicated that over a quarter of businesses(26%) have had digital transformation projects fail.
The official launch of the global collaborative risk modelling effort, The Wave, was announced at this week's Oasis Loss Modelling Framework(Oasis LMF) London Conference. The Wave is an international project with the aim of creating more openness, interoperability and lowering the costs of risk modelling and data. AIR Worldwide updated its New Zealand earthquake model. An ACORD London event placed emphasis on straight-through processing as the only viable long-term solution to tackling the re/insurance industry’s ongoing challenge with out-of-control expense ratios. Riskbook was named the winner of the London semi-final round of the ACORD InsurTech Innovation Challenge(AIIC). Aioi Nissay Dowa Europe(AND-E) chose Guidewire solutions, SURA Columbia successfully deployed its integrated claims fraud detection programme for motor personal lines with the FRISS accelerator for Guidewire ClaimCenter, and Argo deployed AVYST’s bi-directional forms system, eForms Wizard, making it possible for clients and brokers to enter risk details just once, at source.
UK motor insurers had an impressive 2018 but prospects could worsen in the next two years, according to EY research. An ICMIF(International Cooperative and Mutual Insurance Federation) Cambridge report indicated that mutual microinsurance delivers greater resilience in vulnerable communities recovering from natural disasters, and all nine Caribbean members have completed the selection of their CCRIF climate insurance portfolio for 2019/20. IPCC(Intergovernmental Panel on Climate Change) circulated its Final Draft including the Summary for Policymakers(SPM) of the Special Report on the Ocean and Cryosphere in a Changing Climate(SROCC) to governments.
The IAIS(International Association of Insurance Supervisors) will soon embark on a new strategic direction following approval of its 2020-2024 Strategic Plan and Financial Outlook(SPFO), EIOPA published its 2018 Annual Report, and the FCA(Financial Conduct Authority) released its first annual perimeter report.
Lloyd's announced the the establishment of Global and London advisory committees to support its bold new strategy for the future-members of the advisory committees are comprised of a number of prominent figures from across the global industry. AIG consolidated its assumed reinsurance operations to form global business AIG Re, Hamilton Re sponsored its first catastrophe bond, and the Tokio Marine Kiln Insurance(TMKI) portfolio is to be placed into run-off-to concentrate on the group's Lloyd's syndicates. There were senior appointments at AIG, Randall & Quilter, Royal London, and SSP.
Full articles on the above topics are included in those added this week to the Newslink Global Trends Database Research Matrix service at www.onlystrategic.com