14th July 2019

Newslink Global Insurance Trends-The Week

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This week, Lloyd’s confirmed that the proposals set out in the Future at Lloyd’s prospectus have received widespread backing from market participants, customers and other stakeholders, as the consultation on the global insurance market’s new strategy, launched on 1st May this year, draws to a close and the blueprint build begins-the blueprint is scheduled to be published on 30th September. Meanwhile, Lloyd's published two significant reports on parametric insurance and smart contract-both developments Lloyd's says could help insurers offer customers better products and services. While only 13% of organisations use artificial intelligence (AI) and machine learning to detect and deter fraud, another 25% plan to adopt such technologies in the next year or two–a nearly 200% increase. Fraud examiners revealed this and other anti-fraud tech trends in a cross-industry, global survey by the Association of Certified Fraud Examiners(ACFE), developed in collaboration with analytics leader SAS. Cyber insurance has potential to further consolidate broker dominance in the UK, according to a new survey by GlobalData. As more small and medium enterprises(SMEs) begin to digitize part or all of their business, the need for cyber cover has gained prominence more than ever before-however, less than a third of UK SMEs held cyber insurance in 2018. Pro Global launched its unique Cyber Audit Practice, developed to support the insurance industry’s response to cyber risk. Researchers at Colorado State University have released their updated hurricane season forecast-the updated forecast calls for 14 named storms, 6 hurricanes, and two major hurricanes-as news of flooding in Louisiana begins to flow in.
Verisk announced the launch of its Sequel product suite in the US, and Willis Re deployed its wildfire risk solution that can be used throughout the US, partnering with SpatialKey. Duck Creek Technologies announced that IBM has joined its partnership ecosystem program-“Our goal is to improve traditional insurance business models by combining Duck Creek’s P&C process excellence with deep industry experience and advanced technologies such as AI, cloud, and blockchain,” said Mark McLaughlin, Global Insurance director for IBM. It was a key week for Guidewire-MACIF selected Guidewire InsurancePlatform, delivered as a Software-as-a-Service (SaaS) solution via Guidewire Cloud-the first Guidewire Cloud customer in France and Europe, whilst another French insurer Natixis Assurances has successfully deployed Guidewire InsurancePlatform Core and Digital products for claims management and enhanced customer experience, and in the US, Western National Insurance selected further Guidewire solutions. Dinghy, the on-demand freelancer insurance broker, was named one of the most disruptive companies in the UK by the Disruption50 Index 2019.
The Financial Conduct Authority(FCA) published its Annual Report and Accounts, and EIOPA launched a consultation on its Advice on the harmonisation of national insurance guarantee schemes across the Member States of the EU. The Global Federation of Insurance Associations(GFIA) commented on proposals by the Canadian Superintendent of Financial Institutions(OSFI) to limit the ability of insurers to use reinsurance.
MAPFRE signed a memorandum of understanding with China Re to insure infrastructure within the belt and road initiative promoted by China. Pool Re announced the placement of its new retrocession programme covering non-damage business interruption(NDBI) losses, and Swiss Re suspended its ReAssure IPO. Allianz's Jon Dye was named chair of the ABI, and there were senior appointments at EC3 Brokers and PartnerRe.
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