Laurence

In much the same way that everybody finds their own route into the insurance market, everybody has a unique path to recognising the role they have to play in becoming part of the diversity, equity & inclusion (DE&I) solution. For Jhan D. Doughty (pictured), global head of DE&I at Everest, the journey started when she began her career almost 20 years ago, working as a clinical mental health counsellor serving individuals with mental and physical disabilities.

“This was an honour as I valued the opportunity to support individuals through counselling to achieve their personal and professional goals,” she said. “After I graduated with my doctorate, I completed a research post-doctoral fellowship and conducted HIV/AIDS education with persons of colour in New York and Connecticut. I learned the value of engaging individuals through that research and loved working in the communities I served.”

From there, Doughty transitioned to an “amazing” career in higher education working in roles supporting student recruitment, professional development, and retention at public research universities. It was during this time that that she also worked as a professor teaching and conducting DE&I research and developed skills in grant-writing.

“I entered the non-profit and corporate sector working on a national contract aimed at DE&I for students in K-12 in the US,” she said. “There, I learned the joy and value of creating opportunities for underserved individuals as I developed national internship programs for undergraduate and graduate students and established research institutes at minority-serving institutions. Now, over 10 years later, I am thrilled to witness more than 100 former students thriving in their professional careers.”

Today, working at Everest, Doughty said she is pursuing “the work of [her] dreams” — developing and implementing DE&I initiatives on a global scale. She highlighted that working with her insurance industry colleagues in multiple countries and learning what DE&I means in various cultural contexts is what keeps her energised and inspired each day.

Looking back on her DE&I journey, she pinpointed some of the stand-out inspirational moments afforded by her career to date. These include such highlights as presenting her research and work at the International HIV/AIDS conference in Barcelona; launching research institutes at two Historically Black Colleges and Universities (HBCUs) in the United States; presenting strategies on recruiting and retaining diverse employees at the White House HBCU Conference; being named one of the Top 25 Women in Higher Education by Diverse Issues in Higher Education – and now serving as the inaugural global head of DE&I for Everest where she is, “fortunate to engage in work that underwrites opportunity each day.”

What are the key DE&I challenges facing insurance businesses?

Identifying some of the key challenges she sees facing insurance companies looking to create healthy DE&I strategies, Doughty noted that the insurance industry is ripe with interest in DE&I.

“Yet our biggest challenge is attracting new talent and informing candidates about the vast available career opportunities,” she said. “We solve for this by providing high school and college students with exploratory opportunities such as internships and exposure programs so that they can witness the work first-hand and see that the insurance industry is a viable and financially rewarding career option for them. Everest shares in this philosophy, and I am proud to shepherd this work.”

What do insurance businesses get wrong about DE&I?

For insurance businesses looking to move the dial, understanding what not to do is just as important as knowing the right steps to take – and Doughty shared insights into both. Highlighting some DE&I programme approaches that “continue to miss the mark” she advised against utilising a one-size-fits-all approach. Each organisation is different, she said, and engaging in this work requires time listening and learning about what matters most to different constituents and designing/co-creating solutions that will best serve each group.

She added: “I’ve made it a habit to listen, make iterative changes along the way and then create a strategy and execution plan.

Not engaging key stakeholders in the DE&I process is another area where organisations looking to make a change fall down. A big piece of DE&I work is relational, Doughty said, and it is important to have a clear sense of the individuals who will be affected by the work, and to understand their thoughts and perspectives.

“If individuals co-create solutions with you, solutions will be retained long after you leave,” she said. “While I have years of experience creating DE&I strategies and initiatives, each organisation and environment that I enter is a new one and requires a tailored approach. I can only succeed if I involve others, and to witness success in action is amazing.”

What do insurance businesses get right about DE&I?

Sharing some of the most successful strategies to DE&I that she has seen – ones which consistently create value – Doughty identified the value of:

1. Having a clear strategy with tactics and accountability measures. Often, she said, organisations will only have tactics, but no vision or strategy to serve as the foundation for the work.
2. Accountability being key. While sometimes challenging to identify and implement, she said, committed individuals seek ways to measure their progress to ensure they are meeting the mark.
3. Being an authentic leader. People want to work with and alongside someone whom they can connect with, she said. Bringing your full self to your work is truly DE&I in action. “Each one of us is unique, and if you bring your culture and experiences to the work you’re doing and are open to examining your biases and growth areas, you will be successful.”

The role of the Dive In Festival

The power of the Dive In Festival which is now in its ninth iteration – and runs from 26-28 September 2023 – is one emphasised by many DE&I leaders – and Doughty is no exception.  

“DIVE In is invaluable,” she said. “The opportunity to work on one of over 35 country teams and learn from over 130 DE&I events is unique. The energy and excitement around the launch of DIVE In 2023 is palpable and my colleagues and I can’t wait to get started. Joining the DIVE In Global Steering Committee and leading Everest’s efforts is a new milestone in my DE&I journey.”

Offering words of encouragement for those leaders looking to take up the mantle of championing DE&I within their insurance businesses, Doughty had the following advice to offer.

“Stay authentic, energised, focused and consistent,” she said. “Leadership in DE&I can happen no matter what industry you’re in or what role you hold. We need diverse individuals who are true to themselves and passionate about creating inclusive spaces and ways to foster belonging. If you are one of those individuals, then the industry needs you and I look forward to working alongside you.”

Registration for Dive In 2023 is now open here.

The MGA giant DUAL has today announced the appointment of Simon McGinn (pictured) as CEO of its UK business. The appointment, which is subject to regulatory approval, will see McGinn take up his new role on January 1, 2024, reporting to Richard Clapham, CEO of DUAL Group.

McGinn joins the business from Allianz where he spent 19 years, most recently as CEO of Allianz Commercial, Allianz UK before stepping down earlier this year. In a Press release, DUAL noted that the move is a “key appointment” that will see McGinn help lead ambitious plans to transform DUAL’s UK business, which currently underwrites £700 million GWP across 30+ business lines.

Commenting on the appointment, group CEO Clapham said DUAL is delighted to welcome McGinn to the business and highlighted that attracting somebody of his standing is a strong endorsement of the potential to grow its “already significant” UK business.

“Simon’s leadership skills and proven expertise makes him the perfect person to lead our UK business going forward,” he said. “He brings an exceptional knowledge of the UK insurance landscape, its evolving trends and the emerging opportunities they present. Simon’s vision will see us invest further in the people, technology and data needed to provide our brokers and their clients with expertly tailored products combined with an exceptional digitally-enabled service.”

CEO of Howden Group, David Howden also commented on the appointment, noting that in the 25 years since DUAL was first launched in Spain, it has grown to operate in 21 countries, underwriting over £2.5 billion in premium.

He added: “Under Simon’s leadership, we now have the opportunity to build regionally across the UK, by attracting the very best talent to ensure we are delivering the quality underwriting results we are known for whilst growing the UK business to £1.5 billion GWP. It is an exciting moment for DUAL.” 

Discussing his decision to join DUAL, McGinn said he is excited to be joining one of the world’s leading MGAs. He noted that amid changing broker and client expectations, DUAL has proven itself to be a business with “a strong sense of purpose and direction” and he said he is looking forward to working with the leadership team to continue the growth they have already seen in the UK.

“As we’re looking to expand the business,” he said, “I am sure that DUAL’s people first and empowered culture, combined with its strong focus on underwriting excellence, will continue to attract capacity providers, brokers and great people to the business.”

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You still have time to participate in the 2024 Elite Women. This annual report showcases women from all backgrounds who have gone above and beyond in their careers in the previous 12 months.

Submissions will be assessed by an esteemed panel of judges:

• Vivine Cameron, Education Partnerships Manager at the Chartered Insurance Institute (CII)
• Claire McDonald, Chair (and Member of the Executive Board – HDI Global SE) at the Insurance Women’s Inclusivity Network (iWIN)
• Mike Keating, Chief Executive Officer at the Managing General Agents’ Association
• Ajay Mistry, Co-Founder and Co-Chair at iCAN: The Insurance Cultural Awareness Network
• Maxine Goddard, Senior Vice President, Strategic Distribution & Development at Sompo International
• Christopher Croft, Chief Executive at LIIBA – London & International Insurance Brokers’ Association

Submit a nomination on or before Friday, 15 September.

In its time and turn, the insurance sector has played host to a myriad of leaders, each of whom has made their own stamp on the market and played their part in its ongoing evolution. From conversations with retired or soon-to-be-retiring leaders across the sector, it has become apparent that insurance operates its own little ‘Hotel California’, where you can check out any time you like, but you can never leave.

The pleasant irony that it is the same industry which – sometimes proudly, often ruefully – wears the distinctive trademark of being one that people “fall into” that is offering so many individuals such lasting and fulfilling careers is not to be ignored.

Last week, the British Insurance Brokers’ Association (BIBA) marked the retirement of its longest-serving chief executive Steve White in style at the Tower of London. It was a fitting venue for the occasion which saw executives, government officials and familiar faces from across the sector come together to pay tribute to an insurance stalwart who has worked tirelessly to strengthen the reputation of the insurance broking market.

Steve White’s accomplishments speak for themselves – under his tenure, the BIBA conference grew significantly, becoming the largest insurance broking event in the UK and one of the biggest in the world. Alongside this, he championed diversity, equity and inclusion initiatives within the association while helping BIBA become a one-stop-shop for brokers, politicians, media, and the regulator on insurance broker issues.

However, during the course of the evening’s speeches, two things were thrown into sharp relief. Firstly, that BIBA is in incredibly safe hands as Graeme Trudgill steps up as CEO. And secondly, that as important as every one of the above accomplishments is, what people remember most is the spirit in which such milestones are delivered. The ability to take your job very seriously without taking yourself very seriously is a rare ability – and one on full display from Steve White, Graeme Trudgill and the wider BIBA team.

The diverse array of personality types, skills and backgrounds at play in the industry writes off the idea that there is any specific set of characteristics inherent to great insurance leaders. But while not mandated, there is a fine through-line of good humour, energy and optimism that connects these leaders and, more importantly, connects them with the people around them.

Now more than ever, the profession needs great leaders as the external market conditions facing insurance businesses and their customers continue to depict a tumultuous and challenging horizon. But this cannot afford to be limited to C-Suite executives, general managers and others in positions where their responsibilities spell out their leadership duties. To paraphrase the legendary signal sent by the British naval commander Horatio Nelson, insurance expects everyone will do their duty.

This duty is such – not just that insurance professionals will recognise, support and celebrate the leaders in their midst – but also that they become them. The gauntlet has been thrown down not just by the 100 global insurance professionals recognised by Insurance Business this year but also closer to home, in the recent Rising Stars report which recognised no less than 52 upcoming industry leaders.

The drive to find the next generation of Steve White’s who will look to support the insurance industry while enabling the next stage of its evolution is being fostered by the Insurance Cultural Awareness Network (iCAN) which will host its Aviva-sponsored Elevate Conference – Empowering Gen Zs in Insurance – next week.

Whether it’s through industry events, internal projects or broader financial services initiatives, it’s never too early or too late to take up a leadership mantle. And from conversations across the market, I can attest to the value of doing so as among the lives you will change, might well be your own.

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The digital risk processing platform Cytora has today unveiled its integration with AI-powered property insights provider CAPE Analytics. Under the terms of the integration, CAPE’s commercial property data APIs will be accessible on the Cytora platform, bolstering insurers’ ability to assess and manage risks associated with commercial properties.

In a Press release, Cytora noted that by integrating CAPE’s APIs into the Cytora platform, insurers can access detailed property information, enabling them to make more informed underwriting decisions and optimise their risk management practices. In addition, this will allow insurers to harness advanced analytics and machine learning to streamline underwriting processes, bolster risk management practices, and make data-driven decisions for commercial property risks.

Commenting on the move, Cytora COO, Juan de Castro, highlighted that Cytora’s commitment to innovation “aligns perfectly” with the integration.

“By integrating CAPE Analytics’ commercial property data APIs into our platform, we’re equipping insurers with the tools they need to make more informed decisions about commercial property risks,” he said. “This collaboration strengthens our ongoing efforts to provide insurers with the most advanced solutions, ultimately enhancing their ability to manage risks effectively.”

Busy Cummings, chief revenue officer at CAPE Analytics, also commented on the news and said: “We’re excited to see Cytora continue to push the envelope of innovation in the commercial property insurance space and look forward to supporting carriers through this direct integration. 

“Decisions involving commercial property risk are often complex, making modernization and automation a challenge. Together, Cytora and CAPE are providing both the platform and the insights required to modernise commercial property carrier workflows and drive the industry forward.”  

What are your thoughts on this story? Feel free to share them in the comment box below.

Telematics applications have emerged as game-changing technology for the auto insurance industry. But while the uptake of the technology has steadily increased worldwide, carriers are also seeing rapid drop-off rates from app users, according to one telematics expert.

Also known as fleet tracking, telematics allows users to plot the movement of cars, trucks, and other vehicles using satellite technology and on-board diagnostics, a computer system inside a vehicle that tracks and regulates its performance. Carriers leverage this technology to make informed decisions about a driver’s risk.

Drivers are initially lured to telematics-based insurance policies on the promise of cheaper premiums. But poor engagement on carriers’ apps is leading users to quickly lose interest, said Andrew Brown-Allan (pictured below), executive vice president, growth (EMEA) at Insurance & Mobility Solutions (IMS).

“Several major insurers within North America are seeing some quite alarming drop-off rates or a lack of consistency, where a very high percentage of users drop out of app interaction after the first 30 days,” he told Insurance Business.

“Insurers are investing big in creating these programs to have a tool that becomes impotent after the first 30 days, and it’s a lost opportunity.”

The race for personalized insurance experiences

Smartphone apps have become the primary method of capturing telematics data as global insurers race to go to market with more personalized approaches to auto insurance policies.

The global market for usage-based insurance (UBI) is expected to reach US$67.8 billion (£53.4 billion) by 2032, growing at an astounding rate (CAGR of 29.2%), according to research firm Specialty Insights.

“The app is the center of around 90% of enacted insurance propositions that we’ve helped take to market over the past couple of years, and certainly 90% of the inbound demand that we experience on a daily basis internationally,” Brown-Allan said.

IMS is a vehicle and driving data provider that works with around 350 firms worldwide, including mobility operators, insurers, and governments.

Leveraging the application to create real engagement was “absolutely correlated” with a lower road risk in an individual driver, Brown-Allan added.

“The more engaged they are, the more likely they are to be attentive to this safety score,” he said. “The more attentive they are of the safety score, particularly if there’s something material in it for them to be safer and improve their score, the better their ultimate performance in loss terms, i.e., the lower their propensity to make a fault-based claim.”

“Scoring is boring” – why telematics app scores are poor motivators

At the same time, IMS has found aggregate safety scores on telematics apps to be a generally poor motivator for drivers.

IMS’ parent company, Trak Global Group, previously owned a UBI provider geared toward young UK drivers, called Carrot Insurance. The business was sold in 2021, but Brown-Allan said their learnings from Carrot helped inform IMS’ app engagement strategies.

“Through that period of 10 years, we found ourselves falling into the catchphrase of ‘scoring is boring,’” said Brown-Allan.

“If the center of your user interface is a list of journeys made, and the scores for each of those journeys contributing to an overall aggregate score, that’s really volatile when you first start using the app because the app doesn’t know anything about you,” Brown-Allan said.

“One trip it could be bad or contain some examples of speeding, and therefore you have a low score. But the next journey might be great. So, your aggregate score has a lot of volatility.

“In a relatively small number of weeks, your score starts to stabilize, and once you realize that you’re a seven out of 10, you recognize that your driving pattern doesn’t change much week on week. There’s very little compulsion for you to go back into that app because it doesn’t provide you with any new information. It remains very static, and I think a lot of the market is caught in that trap.”

Safety scoring also leads to self-selection among UBI users, in that safer drivers are more likely to gravitate towards the policies, while riskier drivers avoid them for fear of higher premiums.

“If you know you drive badly, then you’re probably not going to buy a telematics policy unless there’s a huge commercial incentive to do so,” Brown-Allan pointed out.

How can auto insurers do better with their telematics apps?

As the market for telematics and UBI policies grows, insurance companies need to create more differentiation between their apps to stay competitive. To keep users engaged, they must also take more control over user experience at both the interface and program level, according to IMS.

“We have a great opportunity to create a far stickier proposition and a far more secure relationship [with insureds] than a traditional non-telematics policy,” said Brown-Allan. “There are many, many more opportunities for touch points and interaction, but it’s about making those interactions the right quality, in the right variety, with the right frequency.

“It’s about making sure that you’re providing interventions and risk management information, promotions, and cross-sells that make the customer feel that they’ve bought into something that’s a truly connected insurance proposition, rather than just a static dashboard.”

Personalized coaching and content, as well as points schemes with retail partners, are powerful strategies for insurers to create engaging, rewarding experiences for their customers while improving their profitability.

“We certainly see that there’s a strong connection between a spend on rewards and an incentive budget with a return on investment in terms of an improvement of loss ratio,” said Brown-Allan.

“You essentially pay someone to drive safer, but they have fewer claims, so your loss ratio improves, and your profitability and combined operating ratio improve.”

Have thoughts on telematics apps and usage-based insurance? Share them in the comments below.

The commercial property insurance industry generated US$254.9 billion in 2022 and is projected to reach US$724 billion by 2032, with a compound annual growth rate (CAGR) of 11.3% from 2023 to 2032, according to a new report from Allied Market Research.

The growth of the commercial property insurance market is driven by factors such as increasing awareness of risk management among businesses, regulatory requirements mandating insurance coverage, and the rise in natural disasters and man-made incidents. Additionally, the expansion of businesses globally contributes to the demand for property insurance.

However, the market faces challenges such as insurance fraud, volatility in property values, and the complexities of underwriting large-scale properties, the report said. Despite these challenges, opportunities exist in the adoption of advanced technologies like artificial intelligence and data analytics for risk assessment, the development of customised insurance products, and the potential for market expansion in emerging economies with relatively low insurance penetration.

The COVID-19 pandemic has had a significant impact on the commercial property insurance market. Lockdowns and reduced activity resulted in a surge in claims for business interruption coverage, leading to disputes over coverage eligibility due to the requirement for physical property damage. Remote work, supply chain disruptions, and uncertain economic conditions prompted insurers to adjust premiums, coverage options, and underwriting practices, creating a more complex and challenging insurance environment.

Coverage market share

The open perils segment held the highest market share in 2022, accounting for approximately three-fifths of the global commercial property insurance market revenue, according to the report. This segment is projected to maintain its leadership status throughout the forecast period.

Offering multiple coverage alternatives can become a growth element as risks and requirements vary among firms. Additionally, the types of risks addressed by commercial properties may change as businesses expand and new sectors emerge, positively impacting market growth. The open perils segment is also expected to exhibit the fastest CAGR of 12.3% from 2023 to 2032. Organisations searching for comprehensive insurance solutions that protect against a wide range of dangers may be attracted to open perils coverage, contributing to market growth.

Distribution channels

The agents and brokers segment held the highest market share in 2022, accounting for over one-third of the global commercial property insurance market revenue. Agents and brokers evaluate specific risks faced by businesses, such as property location, construction type, and industry, among others. They customise commercial property insurance solutions that provide comprehensive coverage tailored to the specific risks encountered by each business.

However, the direct response segment is expected to exhibit the highest CAGR of 13.7% from 2022 to 2032. Commercial property insurance firms collect feedback from businesses that have interacted with their direct response platforms, which provides vital information on the user experience, accessibility of the platform, clarity of provided information, and areas for improvement.

Enterprise size

The large enterprises segment held the highest market share in 2022, accounting for approximately three-fifths of the global commercial property insurance market revenue. This is because large enterprises often engage dedicated risk management teams or consultants to identify and minimise risks, the report stated. They collaborate with insurance companies to establish customised coverage options tailored to their individual risk profiles.

However, the small and medium-sized enterprises segment is projected to exhibit the highest CAGR of 12.9% from 2023 to 2032. Workshops, seminars, and instructional campaigns can help SMEs understand the risks they face and the available coverage options, creating opportunities for corporate lending in the healthcare industry.

Industry verticals

The manufacturing segment held the highest market share in 2022, accounting for nearly one-fifth of the global commercial property insurance market revenue. This is due to the growing demand for equipment and technology finance in the healthcare industry to protect physical assets such as factories, warehouses, and machinery. Stricter regulations regarding safety standards and environmental protection drive manufacturers to invest in comprehensive insurance coverage to mitigate compliance risks.

However, the healthcare segment is expected to exhibit the highest CAGR of 16.4% from 2023 to 2032. The escalating value of medical equipment and technology necessitates protection against damage, theft, and breakdowns.

Regional breakdown

North America held the highest market share in 2022. However, Asia-Pacific is projected to post the greatest CAGR among the regions with 15% between 2023 and 2032, the report said.

Asia-Pacific is likely to dominate the market throughout the forecast period, with companies in the region focusing more heavily on risk management and loss mitigation, the report said.

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“Sometimes we might feel like regulatory change is something that is imposed on us. It can be very hard work and take a great deal of effort and resource. That said, I firmly believe we should see the opportunities that it also brings.”

Speaking with Insurance Business David Lever (pictured), senior customer experience strategy manager at RSA, highlighted how this is exemplified by the introduction of the Financial Conduct Authority’s (FCA) recent Consumer Duty standard, which came into force on July 31 this year.

Key for his team, he said, has been those addressing consumer understanding and support. RSA is also committed to improving the understanding of its communications with customers, including those who may struggle with numbers.

What is the “Plain Numbers” approach?

“Insurance is a numbers business,” Lever said, “and as part of our new Consumer Duty principles, we’ll now be putting numbers at the heart of enhancing our customer communications both through digital and more traditional channels.”

To assist with this, RSA has joined up with Plain Numbers – an organisation that has developed a tried and tested approach to improving consumer understanding. Lever noted that the Plain Numbers Approach was called out by the FCA in Consumer Duty as demonstrating “how seemingly small changes to communications can substantially increase comprehension among consumers.”

“What Plain Numbers do is support organisations such as ourselves in improving the understanding with our customers by the way we communicate our numbers,” he said. “So this could be the level of cover you’ll have and how much it will cost, as well as any claims figures further down the line. It really puts numbers at the centre of customer understanding.

“While I’m lead Plain Numbers Practitioner, we have a growing number of new Practitioners across the business through training and accreditation as part of our partnership. So, Practitioners like myself will be able to recognise communication through any channel where there’s the potential that applying the Plain Numbers approach will improve consumers’ understanding around that offering.”

Applications of the Plain Numbers approach for insurance companies

The applications of this are endless in the context of a financial services business, he said, among them, for example, ensuring that customers understand the critical numbers at the point of renewal. These figures should be presented based on what’s most important to the customer. For example, the cost this year compared to last, whether any difference can then be considered fairly – and what’s driving that difference, whether it’s inflation or a claim on the policy – and what’s the simplest and most cost-effective way for them to pay.

“It’s about looking at the way we present the numbers and presenting them in a way that the customer understands and which allows them to make informed decisions,” he said. “Poor numeracy is a big problem in the UK, causing one in five people to experience ‘maths anxiety’ when forced to deal with numbers. It’s quite difficult to pick up in our customer insight as it’s very much an invisible vulnerability, with people less likely to admit they don’t understand numbers.”

Removing the stigma around numeracy 

Statistics show that at least half of the UK working population struggle with numbers in some capacity, Lever said, but when you listen to RSA’s call analytics, the language used by consumers would rarely suggest that struggle. Because of the stigma around numeracy, it’s difficult for customers to admit when they’re facing an issue.

“Research by the FCA back in 2015 suggested that 20 million people in the UK have poor numeracy skills,” he said. “And coming in lower than that you see concerns like mental health issues, physical disability, dementia etc. – all things we see in our customer insight, but we don’t see the problems with numeracy.”

The Plain Numbers Approach doesn’t just improve the numbers, however. What RSA has found, he said, is that when you reshape the way numbers are presented, it better informs policy wordings as well by bringing both parts of the equation together.

“Something else I’m quite excited to be working on going forward is applying the Plain Numbers Approach internally,” he said. “Across all the vulnerable customer work we’ve done, we present our training and seminars etc. to our colleagues with a view to them understanding how customers are going to feel in those situations. But we also bring it back to our staff and how they might be feeling that way as well.

“I think if we can really embed that Plain Numbers way of thinking into our business it could be transformational for us. I’m keen to see where we go from here as one of the fundamentals of Consumer Duty is understanding how customers are interacting with our products and making choices in the real world. And that’s about the numbers.”

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