Of Special Interest


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2nd January 2022

2022-Collaboration the key to the Climate Change challenge and an opportunity for the global insurance market

As Insurance Newslink enters its 29th year of covering strategic global trends across insurance markets, we look forward with optimism to covering the challenges and opportunities ahead.
The core purpose of insurance is to identity, measure, and price protection against risk. After experiencing COVID-19 for nearly two years, it is clear that many risks cannot be predicted particularly over timing and ferocity. Speedy response by the industry is key, but prevention and mitigation also play a major part-the protection gap, particularly in undeveloped countries, is still much too wide. Several key factors are acting as a catalyst for greater co-operation within the industry, with regulators, and government organisations-climate change is a key area of opportunity.
Major insurers/reinsurers have made a commitment regarding reducing investment in fossil fuels and increasing investment in renewables. Leading brokers are enabling businesses to plan and insure against rising climate issues and other major disrupters such as cyber risk. Underwriters are increasingly using the latest artificial intelligence developments to assess and price present and future risks, and the impact of InSurTechs continues at a high rate, with rising collaboration and investment from market players and established systems solutions suppliers.
There is growing pressure from regulators for insurers to provide a fair-priced and appropriate product set with customer service to the fore. Technology will continue enabling more efficient ways to assess personal lines risks, such as IOT for household risks. In motor insurance, with the number of electric-driven cars increasing, a wider range of underwriting factors such as mileage are also on the rise. Claims settlements are speeding up and parametric development will be observed with interest, particularly as global warming continues to provide an increasing unsettled weather scenario. The London Market is committed to simplify and speed access/processing and to reduce overhead costs.
Insurance Newslink will continue to bring together from source intelligence the strategic trends across all of these participants around the world by market, company and regulatory announcements, research/surveys/publications, and information technology developments in context.
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