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No longer the new kid on the block of insurance offerings, cyber has been enjoying a sustained period in the sun, with every day bringing new reports and market briefings emphasising the critical role cyber insurance has to play in maintaining the stability of the industry and society alike.

Among the swathe of market developments announced recently came the news of specialist insurer Brit’s decision to expand its cyber consortium, Brit Cyber Attack Plus (BCAP) – a cyber product designed to protect insureds from the impact of physical damage arising from cyberattacks. Speaking with Insurance Business, Adam Taylor (pictured), class underwriter for cyber at Brit, noted that BCAP has been in existence since 2015 and grew to a gross written premium of $100 million (approx. £79 million) in 2022.

Taylor, who joined Brit in 2015 and whose role has a specific focus on the insurer’s large business cyber portfolio and the BCAP consortium, noted that Brit sees it as its role to continually lead and innovate in the cyber insurance space.

“We have seen increasing demand for larger limits to cater for the emerging cyber threats in both the tangible and intangible space,” he said. “The move to increase the consortium’s limits was designed to support our clients as they move through the current heightened threat landscape while continuing to offer best-in-class physical and non-physical damage cover.”

Getting the timing right for cyber innovations

The expansion of Brit’s cyber consortium is especially well-timed given the upheaval felt across the global markets in recent years. The past few years have given way to a heightened threat environment, Taylor said, which is related primarily to the rising malware and ransomware threats affecting companies globally.

“This is playing out across multiple industry verticals, but we have recently seen a trend of increasing threat activity against heavy industrial companies, particularly in the manufacturing and utilities space,” he said. “This heightened threat activity has led to an increased number of attacks creating both physical and non-physical losses for companies, with the potential insurable loss reaching catastrophic levels given the severity of such attacks.

“This is now playing out in reality, with the frequency of property damage events triggered by a malicious cyberattack continuing to rise. The ever-increasing interconnectivity of devices, the reliance on automation and the interdependent nature of information and operational technology is opening up exposures for companies that were previously benign.”

While the benefits of increasing technology deployment are well known, he said, the potential attack surface created needs to be recognised by companies and alternative risk mitigation strategies need to be implemented. BCAP is designed to offer coverage for clients across both the physical and non-physical, creating an affirmative product designed to respond to any form of malicious cyberattack whether that leads to tangible or intangible loss. And taken in combination with Brit’s claims expertise, clients are strongly positioned to respond to even the most catastrophic of cyber events.

The response of the market to BCAP

Taylor noted that the response of the market to Brit’s developments has been great to see, with the insurer receiving “fantastic feedback” from all its key broking and distribution partners. Brokers continue to strive towards innovative solutions for their clients, he said, and they’re looking for solutions which cater for the ever-evolving threat landscape and offer meaningful coverage and limit scope.

As for what’s next, he said: “As we see the coverage scope within more traditional lines of insurance reduce relating to cyber, this will present further opportunities for innovation within the cyber insurance market. This combined with emerging threats and loss activity, will provide further opportunities to assess enhancements to our BCAP product offerings to provide the most meaningful solution to our clients.”

There is a pressing need for continuous innovation when it comes to the cyber insurance market, not least considering the fast-evolving nature of cyber incidents. From Taylor’s perspective, it is a “massively unspoken” aspect of the insurance market that industry players have always acted as pioneers when it comes to innovative risk transfer solutions.

“And given the fluid nature of cyber risk,” he said, “our position as cyber insurers is more important now than ever before to help our insureds respond and recover from cyber incidents.”

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

The following article is written by Liz Foster, non-executive director of the CII’s professional broking community.

Have you noticed the increased profile of young insurance professionals across the sector? Those involved in underwriting, broking and claims handling are making their presence and opinions felt,  which can only be a great thing for insurance and for the long-standing issue of finding and retaining talent.

For over 10 years the CII has been encouraging firms within the sector to nominate young professionals to join the annual New Gen programme and this initiative has most definitely been a successful one. The early days of making calls to firms to encourage them to take up places are long gone, and applications exceed places. Being in the room on the launch day for the current New Gen groups (one each for underwriting, broking and claims) there was a palpable buzz; the young professionals were very focused and full of ideas for their respective group’s research paper; they had questions to ask of the more experienced in the room, and they were keen to express how much value they placed on the opportunity presented to them.

BIBA 2023 included a Young Broker Day and with the BIBA conference exceeding 9,000 delegates for the first time ever, the young professionals were out in force. Whether taking to the stage, visiting the stands, attending plenary  and breakout sessions, or networking in general, they were an obvious and vibrant presence. Hopefully this was noticed by the group of visiting school students.

The WCI and iWin, iCAN and the local insurance institutes and professional communities and societies benefit the development of young professionals across the country, as well as benefitting from the contributions made by this eager, knowledgeable, and energetic generation.

These insurance sector newbies are, of course, skilful in their use of social media; they have embraced remote learning and in the early months of COVID, were using CII webinars to extend their knowledge both of technical subjects and the softer skills. Online communication is second nature to them, but given their in-person presence – whenever the opportunity arises – they clearly have the appetite for networking too.

So, how to build on all of this and solve the talent acquisition and retention dilemma?

Organisations that have encouraged their young professionals to get out there and embrace opportunities are to be applauded, and are surely setting an example to those that don’t see value  outside of being behind a desk and attacking the keyboard. Is the recent headline “How to tackle the talent question in ‘old’ and ‘boring’ insurance sector” a result of the latter approach? 

Apprenticeships and graduate schemes are available  to those interested in a career in insurance, as has been the case for many years. However, interest must be sparked at a younger age in order to bring attention to these opportunities.

Could the energy, enthusiasm, and positive experience of  young professionals be communicated to schools, colleges and universities through a concerted effort that  brings together insurers, brokers, loss adjusters, the CII, BIBA, the WCI and other insurance related groups?

Ask the young professionals and they will sort it! 

The fourth annual 5-Star Brokerages report will again highlight the top-performing businesses that achieved their annual target premium income, client retention, policies written and secured a number of new clients in the past 12 months.

To participate, brokerages must have three or more brokers writing business (license holders or authorised representatives) and must have been in business for the whole of 2022.

The entry period closes on Friday, June 9.

The 5-Star Brokerages report will be featured on Insurance Business UK’s website in September.

Total global insurance premium income amounted to nearly €5.6 trillion last year, according to a new report by Allianz Trade.

Life remained the largest insurance segment at €2.6 trillion, followed by property-casualty (€1.8 trillion) and health (€1.1 trillion). The premium pool grew by 4.9%, or €259 billion, amid a global inflation rate of 8.6%, Allianz Trade said.

The three segments fared quite differently when it came to growth. While P&C grew at a robust 8.7%, health grew by a more modest 4.9%. The life insurance market grew only 2.4% as households felt the squeeze of inflation on their incomes.

P&C growth

The rise in P&C premiums was driven by all regions of the world. However, more than half (€77.5 billion) of last year’s global increase came from North America alone. With premium income of €860 billion, North America remains the largest market in the world by a significant margin, Allianz Trade said.

Asia also saw significant growth of 8.4% (€31 billion) last year. With total premium income of almost €403 billion, Asia overtook Europe for the first time last year. 

Life insurance sector woes

While P&C enjoyed robust growth, the life insurance market took a hit last year, particularly in Western Europe, where premium income fell by almost 3% (€22 billion) to €740 billion in 2022.

Sector growth was also disappointing in Asia, with an increase of only 3% (€33 billion) to €925 billion.

As with the P&C sector, North America was the main growth driver for the life insurance segment last year, adding €61 billion in new premiums – a growth of 7.8% to €840 billion. North American dominance was even clearer in the health sector, where the US accounts for about two thirds of global premium income.

North American dominance

North America – and specifically the US, which accounts for 94% of the region’s premium pool – has dominated the global insurance market over the last decade, Allianz Trade reported.

More than half of the increase in global premium income in P&C and health was generated in North America. In the life segment, the North American share is still slightly below a third, with Asia dominating that market.

As a result, the region’s global share rose from 39.6% in 2012 to 43.9% in 2022, Allianz Trade reported.

That’s in direct contrast to Western Europe, which tumbled more than six percentage points to 23.8%.

Japan fell 3.7 percentage points to 5.5%, while China nearly doubled its global share to 11.4%.

Inflation continues to bite

Navigating the inflationary environment will be the industry’s biggest economic challenge over the coming years, Allianz Trade reported.

Still, premiums are predicted to increase by 5.2%pa over the next decade, adding €4,190 billion to the global premium pool. In 2033, premium income is projected to hit €4.3 trillion in life, €3.1 trillion in P&C and €2.3 trillion in health.

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London-headquartered managing general agent CFC now offers multi-product capability on its Connect trading platform, allowing brokers to get bindable quotes across multiple commercial specialty lines insurance products by answering a single question.

The move means that, aside from the SME cyber cover that CFC is known for, users of the Connect platform can now also auto-rate and bind admitted professional liability and technology errors & omissions policies. Without underwriter referral, rates and limits can be adjusted by brokers, and cover elements can be selected.

CFC chief executive Graeme Newman said in an emailed release: “Our proprietary technology interrogates numerous data points to ascertain business characteristics and interpret more accurately what a business does and its exposure to various risk factors. Combined with our 20-plus years of underwriting and claims data, this enables us to price the risk accordingly in milliseconds without any human interaction.

“Our unique advanced intelligent automation systems go beyond what has been achieved to date in the commercial specialty market. We’re now expanding our dynamic autonomous underwriting capability across multiple lines of business, making our brokers’ lives easier and the whole process frictionless and more efficient than anything else in the market.”

The first trading platform to offer single-question quoting for commercial specialty lines insurance, Connect has delivered more than US$100 million in cyber premium since its launch in 2020.

What do you think about this story? Share your thoughts in the comments below.

Insurance apps are gaining momentum in the UK as one in 10 adults use Android apps to manage their insurance policies.

This is according to analysis conducted by app marketing analytics platform App Radar on insurance apps available on the Google Play Store. Focusing on the motor, travel, life, and home insurance sectors, the study found a 40% increase in app downloads in 2022, amounting to 2.2 million downloads compared to 1.6 million in 2021.

As of the end of 2022, the lifetime downloads of insurance apps on the Google Play Store in the UK had reached an estimated 6.9 million. If Apple App Store downloads were taken into account, the total figure for 2022 could be as high as 13.8 million, the study noted.

App Radar’s analysis also shed light on the most popular insurance apps in terms of lifetime Google Play Store downloads. Topping the list was Hastings Direct Insurance, with 1.2 million downloads, followed closely by Cuvva with 1.1 million and Holiday Extras with 1 million. MyAviva and MyRAC also garnered significant traction with 652,000 and 648,000 downloads respectively.

Additionally, several insurance apps witnessed substantial growth in downloads from 2021 to 2022. Post Office Travel experienced an impressive increase of 256%, followed closely by Travel Mate – Cedar Tree with 249%. Holiday Extras, Dayinsure, and Rooster Car Insurance also showcased substantial growth percentages of 190%, 100%, and 91% respectively.

Further examination of the data revealed the top five apps in terms of 2022 downloads. Hastings Direct Insurance led the pack with 392,000 downloads, followed by Holiday Extras with 373,000. Admiral Insurance, MyRAC, and Cuvva rounded out the list with 246,000, 201,000, and 170,000 downloads respectively.

App Radar managing director Silvio Peruci highlighted the significant growth potential of the insurtech sector, citing reports that have estimated that the global insurtech sector will be worth almost $30 billion by 2026 from $8 billion in 2021.

“For the UK specifically, the market is ripe for growth with an estimated £50 billion potential revenue opportunity from disruption,” said Peruci.

Peruci also highlighted the need for established incumbents to adapt to the changing landscape, as insurtech startups strive to revolutionise the industry through innovative technology.

“Startups in this area are hungry to disrupt and make insurance easy for their customers with new tech,” he said. “Cuvva, for example, is the second most downloaded insurance app in the Google Play Store, according to our analysis, with DriveScore, Caura, Dayinsure and Rooster joining the race for app users.”

With the ongoing cost-of-living crisis, Peruci said insurance companies are facing intensifying competition to attract new app users, especially since consumers are used to shopping around for the best quote when it comes to their insurance policies.

“One way to retain and gain customers is to offer the best user experience and features that they need, in addition to competitive policy pricing,” he said. “As the insurtech sector continues to grow in uncertain economic times, app developers and marketers will need to undertake thorough market research to understand their customers’ needs to be able to cut through the noise.”

What are your thoughts on this story? Feel free to share your comments below.

AXIS Capital Holdings has announced the appointment of Rebecca O’Kill as chief data and analytics officer. O’Kill will be based in London and will report to Dan Draper, chief underwriting officer at AXIS.

In her new role, O’Kill will oversee global data strategy and governance across the company, as well as its analytics operating model. She will also help to deliver business intelligence and insights to support the underwriting process.

“Rebecca is a proven global leader in data and analytics who brings a deep understanding of driving value in specialty insurance, informed by her actuarial experience and background,” Draper said. “Her leadership and perspective will be invaluable as we continue to enhance our usage of data and analytics to empower our team and further strengthen the speed and service that we provide to our brokers and customers.”

O’Kill joins the company after 16 years with Beazley, where she held a variety of leadership roles including interim chief data officer and head of actuarial analytics.

Earlier this month, AXIS announced the appointments of Mark Gregory as head of global markets and Michael J. McKenna as head of North America. Last month, the company named Megan Watt as chief claims officer.

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Following a successful BIBA conference for iCAN this month, it was apparent how important networking is to us all, both personally and professionally.

In today’s interconnected world, networking is no longer just an option – it is a necessity. This is especially true in the diverse and dynamic landscape of UK insurance, where varied perspectives help stimulate innovation and influence product development.

In an exclusive conversation with iCAN, Peter Blanc, head of M&A at Howden Group Holdings, told us how networking is an essential part of his professional life: “When businesses are looking for talent to hire, or experts to use for a particular job, or when they need a service they will inevitably think firstly about people that they’ve met and interacted with.

“Anybody that runs a business or has aspirations to run or grow a business would be very well advised to get busy on the networking front – the more people that know you, the more opportunities will come your way; it really is as simple as that!”

The UK insurance industry is a vibrant blend of sectors, each bringing its own unique insights and expertise. When harnessed effectively, this diversity can be a significant asset. This is where the power of networking comes in.

In a conversation with Yasmin Carter-Esdale, iCAN partnerships lead and schemes account executive at Hiscox, she told us: “Insurance is a people’s business, built on both the connections you make and relationships you build.

“Networking is key to driving success for diverse groups as it allows them to build their professional network and further amplify their name within the insurance industry.”

By facilitating open dialogue and shared insights, networking enables us to tap into the industry’s diversity and leverage it for collective growth. This can happen in the following ways:

• Breaking barriers and building relationships. When people from different backgrounds come together, they have the opportunity to learn about each other’s experiences and perspectives. This can help to build trust and understanding, which can lead to stronger relationships.
• Creating a sense of community. When people feel connected to others, they are more likely to feel supported and valued. This can be especially important for people who feel like they are part of a minority group.
• Promoting innovation. When people from different backgrounds come together, they can share their ideas and perspectives. This can lead to new and innovative solutions to problems.

Networking can open doors that might otherwise remain closed. It can be a channel for opportunities, such as potential job offers, business partnerships, or an insightful piece of advice that could transform your approach.

The support that networking can bring is something Mandy Hunt, chief underwriting officer at RSA and chairperson of the CII Underwriting Community Board, feels is crucial in every stage of our careers: “In my experience almost everything you do in life needs some support. Outside of work our friends and family become our personal network and give us honest and helpful guidance.  

“At work, having a network is just as important. At all stages of your career you need a group of colleagues who can help you navigate all areas of your career, from development to delivery, and your network can be a gamechanger in your success. I know the strength of my network has really made a difference in my career.”

So, how does one network effectively within the UK insurance industry? It starts with being open and proactive. Attend industry events, participate in online forums, and leverage professional networking platforms. Remember, networking is a two-way street, so share your insights as you learn from others.

Ola Jacob Raji, broker success manager, uses networking to learn more about different cultures and broaden his horizons: “There is a feeling of discovery and connection that can be experienced by networking with diverse groups; it’s a networking superpower that can propel aspiring professionals with diverse backgrounds.”

Furthermore, connection can happen online now – so the utilisation of tools, such as LinkedIn, can propel your ability to access people that were previously difficult to reach.

It can bring a lot of benefits, but networking isn’t without its challenges. Many individuals find it intimidating or struggle to make meaningful connections. It’s important to approach networking with a genuine interest in others, rather than seeing it as a transaction. With practice, anyone can become an effective networker.

On a final note, I always like to flip the word networking to “relationship-building” – something that a lot of us are good at in our own lives, so why should this be different in our professional life?

If you are looking for more networking opportunities in the insurance sector, a good place to start is at iCAN. We are a multicultural insurance network driving change across the industry and we regularly host networking events for members to meet, collaborate and grow. To find out more, visit: https://www.i-can.me/

Davies, a specialist professional services and technology firm serving insurance and highly regulated markets, has announced the appointment of Jen Morrissey (pictured above) to the newly created position of group chief operations officer. She will be based in the US.

Morrissey has more than 20 years of experience in leading global strategic information technology and operations in the risk management and professional services sectors, Davies said. Prior to joining Davies, she served as chief information officer at Union Risk Advisors. Morrissey also previously served in roles at Willis Towers Watson and Electronic Data Systems.

In her new role, Morrissey will oversee Davies’ global technology, transformation, M&A integration, procurement and real estate functions. She will report directly to group CEO Dan Saulter.

Morrissey’s appointment aligns with Davies’ new, simplified organisational structure, which organised its global operations across three business units: Global Solutions, UK & Ireland, and Davies US. Globally, Davies employs more than 7,000 people across 10 countries.

“This is a very exciting time to join Davies, and I’m looking forward to working alongside Dan and the wider team in our next phase of growth, continued transformation and positive disruption,” Morrissey said. “It has never been more crucial for a business to remain agile to help clients face the external challenges that our industry is currently undergoing.” 

“I am delighted to welcome Jen to Davies,” Saulter said. “Her extensive experience as an executive leader and her in-depth knowledge of the industry will undoubtedly be a fantastic asset to the successful growth of the business. As we embark on our next phase of international growth and investment, it is important that we position our business units and leadership so we can best serve our 1,500-plus clients across the globe.”

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Global insurance broker Howden Group Holdings (Howden) will unify its business structure under one global executive.

In a Press release, Howden confirmed that its insurance broking, reinsurance broking, and underwriting businesses will report directly to CEO David Howden, effective October 1, 2023. The holding company and broking operations will also rebrand under the Howden name and a single visual identity during the same month.

Insurance broking

Howden’s UK&I broking operations will be chaired by Barnaby Rugge-Price, current deputy chair of Howden Broking Group. He will work closely with deputy chairs Paul Redgate (current CEO of global specialty) and Mark Wood (current head of global practices).

Other changes include the following:

• UK Specialty CEO Sarah Hughes will lead Howden Specialty, bringing together the current UK specialty, global specialty, and Howden CAP businesses;
• Carl Shuker will lead the UK&I retail broking operations;
• Andy Bragoli, executive chair of global specialty, will become the global head of placement; and
• Luigi Sturani will continue to lead the broking operations in Europe, supported by Salvador Marin as CEO Northern Europe and Danny Sever as chairman.

Howden’s operations in Turkey will become part of its Europe region. Asia-Pacific will be chaired by Mark Wood, with Goh Chye Huat and Matt Bacon leading Asia and Pacific, respectively.

India, Middle East & Africa, and LatAm will be led by Sonia Caamaño (current CEO of international growth markets) and chaired by Paul Redgate, with Richard Mockett as CEO MEA and Pablo Bores as CEO LatAm.

Reinsurance broking

Rob Bredahl will lead Howden Tiger as CEO, supported by Rod Fox as executive chairman, Tim Ronda as president, and Elliot Richardson as vice chair

CEO Richard Clapham and executive chairman Kieran Sweeney will continue to lead DUAL.

Other changes include the following:

• Olaf Jonda, Damien Coates, and John Johnson will continue to lead Europe, Asia-Pacific, and the US, respectively; and
• Howden Broking Group CEO José Manuel González will retire from executive positions and remain with the group as a special adviser, CEO Office, and become the chair of Howden Iberia, which he founded.

González took over as CEO of the broking group in 2018. Under his leadership, the business has grown from £500 million to £2 billion in revenue in five years by attracting and aligning a formidable team.

Commenting on the changes, David Howden said: “As I said last year when we announced that we had reached agreement to acquire TigerRisk Partners, we have completed the architecture of the group. As we begin the next phase of our growth, it is critical that we have the right structure in place so that we are aligned as one to harness our collective power, protect our culture, and ensure we face our clients and markets as one business. We will do this with our retail, specialty, reinsurance, and underwriting leaders working together as a single management team.

“Our operating model and infrastructure are key to our sustainable growth, and we will continue to invest significantly in our support services functions to allow our experts to get on with what they do best – serving our clients.”