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Canopius Group has announced the launch of its Cyber Incident Management Team (CIMT) to provide comprehensive support to Canopius cyber policyholders worldwide in the face of cyberattacks.

Leading the service are the Cyber Incident Response team leaders based in Canopius’s international business units. Brendan Helleman, who served in the British Army and UK Ministry of Defence for two decades, heads the team in London. Ellen Brookes, previously a technical support specialist at global law firm K&L Gates, leads the team in Sydney. Steven Wesolek, with nearly 10 years of information security and incident response experience, assumes the role in Chicago.

In addition to the regional leaders, six team members are spread across London, Sydney, and Chicago, bringing diverse expertise from backgrounds in cybersecurity, corporate relationship development, and the military.

Canopius’ CIMT aims to significantly enhance the insureds’ initial response to cyber attacks, reducing recovery time and improving service quality. The team manages interactions with specialized services required to address the attack’s impact, including lawyers, data forensics experts, and PR and reputation specialists. In-house response capabilities allow Canopius to address incidents within hours, while outsourced services can take days, the company said.

Canopius policyholders gain access to preferred rates for specialist cyber incident service providers. The CIMT also offers pre-event risk mitigation services, such as tabletop hacking simulations, which help identify vulnerabilities in insured computer systems.

“The launch of Canopius’s global cyber incident response marks a significant investment in our capabilities and further specialisation of our dedicated cyber claims team. It represents another milestone in the growth of our global cyber portfolio, wherein the focus is always to provide first class services,” said Matt Northedge, global head of cyber and technology at Canopius. “As the impact of cyber-attacks continues to grow in complexity, insureds and brokers require even closer collaboration when managing the consequences of such attacks. I am delighted to welcome our new team, who are already adding significant value and relief to our growing number of policyholders.”

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Over the last few weeks, we have seen two sharply contradictory stories on risk management and climate change. In response to accusations from Republican politicians in the US that the UN’s Net Zero Alliance is anti-competitive, a growing number of insurance firms have pulled out of the initiative. At the same time, an industry expert in the UK recently warned insurance executives that they could be held individually liable if their firm fails to live up to promises about environmental, social and governance issues.

It seems that insurers are being squeezed between two conflicting demands, one which criminalises an over-zealous approach to climate change, while another adds teeth to demands for climate change to be taken more seriously.

How are insurers supposed to negotiate these risks?

The first lesson is that there are no easy answers – there is no absolute good and bad in the practice of sustainability, and often the right thing to do is to embrace complexity and ambiguity and play a part in managing complex changes – ensuring the right governance and plans are in place to create an orderly transition, not only in insurance firms, but in the companies they underwrite and invest in.

More black-and-white approaches like screening out entire sectors or seizing on one technology as a panacea for the environment will ultimately reveal a lack of rigour, and a lack of willingness to track and understand the issues as they develop.

There is no easy way out of the demands that face insurers on climate change, but there is a way to meet the challenges. By tracking the route through to net zero, and factoring equally important issues such as political and social stability and biodiversity, insurers can develop a new dimension of professionalism that will enable them to manage regulatory risks and emerge from the climate change debate with a stronger reputation for ethical practice.
 

Her years spent supporting insurance brokers in lead generation and sales consulting have equipped Barbara Miller (pictured), group head of corporate sales at Clear Insurance, with a keen understanding of what it takes to succeed in a highly competitive marketplace. Insurance is perceived as a transactional industry, she said, so her role is to support people in demonstrating the power of the consultative approach.

“It’s a challenge that has been here forever because differentiation is notoriously difficult in this service sector industry,” she said. “People don’t see a difference between these service-led businesses which, when you cut through it, are selling the same product from the same marketplace to the same pool of businesses in the UK.

“So, how do you differentiate yourself? You do that through your work ethic, your ability to instil confidence in your clients and your ability to demonstrate that you’re the best and safest pair of hands to look after them. And that takes training and cultural change.”

Learning and development – the key to differentiation?

Learning and development are at the core of Clear’s employee-centric proposition, she said, and it’s that emphasis which led to the recent development of its Early Career Professionals (ECP) Network. The idea was first suggested by one of the current members of the network, who pinpointed the value in having a support programme aimed at people looking to develop their insurance careers.

Miller noted that at the heart of getting any such initiative off the ground is having a business that’s willing to listen to new ideas and make the investment necessary to make them happen. For Clear, she said, which is passionate about developing its talent pipeline, it made sense to seize the opportunity at hand to support and nurture its early career professionals.

“I got involved because naturally, some of the feedback we received was that people felt they’re missing the confidence to know how to identify their career opportunities and propel themselves,” she said. “They want to know how to voice their opinion, how to network well and how to do public speaking. They asked me because I do a lot of that around the business and also produce our Clear forums which are internal company-wide forums offering training on products, services and soft skills.”

She was delighted to get involved with the network, Miller said, as it directly links to something she is deeply passionate about – reducing the investment gap in early careers is a clear concern across all sectors, not just insurance. People have got to get involved in bridging that gap, and this network provided a clear opportunity to do just that.

Rolling out a successful network

The next step was the creation of a workshop looking specifically at building confidence in public speaking and networking, which saw Miller undertake a ‘roadshow’, going out to different branches and teams around the business. It was overwhelming to see how well this was received, she said, and to see how people were encouraged to step out of their comfort zones and to really take charge of their own career trajectories.

“The immediate feedback was that they felt inspired,” she said. “And that’s so important to me because going back to my background, I don’t have a degree, I’m not Chartered, and I’m not qualified in sales or marketing. Yet, I’m the group head of corporate sales for the Clear Group. What makes the difference isn’t all about your academic background.

“It’s about the choices you make along the way. Will you take an opportunity, or won’t you? Will you stand up in front of a room of people and say what you think, based on good information – or will you not because you feel unconfident? It’s about making sure that people feel empowered to take opportunities.”

The ECP Network is aimed at those early in their careers within the insurance industry who feel passionate about insurance as a career rather than just a job. It attracts those who are looking to progress and make the most of the opportunities available to them, she said, and those who want to be part of the future of the insurance profession.

The purpose of Clear’s ECP Network

“The purpose and mission of this is to provide a platform for [these individuals] to contribute their ideas,” she said. “Also, it’s a place where they can network with like-minded individuals that are in a similar position in other business areas or branches so they can come together and share their experiences. It also allows them to learn from and seek support from around the group.

“Clear is growing so fast as a group and this gives our people the platform to understand how the business is coming together, why it’s purchasing the businesses it is and how that strategy bolsters our clients’ experience and our service offering.”

The network is not just for client-facing early careers professionals, she said, but instead recognises the incredible variety of roles which are available within an insurance business.

Miller added that this is a particularly timely idea when you consider the amount of M&A activity Clear has completed in recent years. When a small business or book is acquired, she said, often the people who join the group as a result are used to being the only ones on their team doing their respective roles. This can be quite an isolating experience for them, and this initiative offers them the chance to network with others doing similar roles and understanding how they fit into the context of the broader group.

“Our measurement of success is how we retain the talent that we bring in and we nurture that into different roles,” she said. “It’s not just about giving opportunities but also making sure they’re at the top of the game when they take on that opportunity… One thing I learnt from meeting all these people – which represent a not-insignificant 10% of our business – is that it’s about making sure they understand the bigger picture of their role and how it matters.”
It’s that which gives people a sense of purpose around their careers, she said, and seeing that blossom across the ECP Network has been very rewarding.

Where the network goes next

The programme started last November, and while it’s still relatively early days, network member representatives are already meeting regularly to keep coordinated and keep the initiative on theme and on mission.

“There’s a long way to go but we’ve got a good platform,” she said. “Clear has shown that they see how important this is and they’ve made significant investments into the initiative. Identifying the need for a network like this in a group of our size was the first step and that recognition of its purpose encourages people to want to become part of the network. And now it’s our responsibility to make sure that we give people enough opportunities to exercise some of the things they’ve learned and the support they have through the network.”

The ethos behind the creation of Allianz Trade in the UK closely mirrors the purpose at the heart of trade credit insurance – to protect businesses and livelihoods, and to stimulate entrepreneurship.

Then-named Euler Hermes, Allianz Trade was formed as a result of the UK government’s decision to establish an entity to promote exporting in the wake of the First World War. In 2021, the organisation welcomed its first woman leader in its 100-plus year history with Sarah Murrow (pictured) stepping up as CEO of the UK and Ireland business. Speaking with Insurance Business, Murrow noted that her two-decade-strong career within Allianz Trade is a powerful indicator of the opportunities that exist within the trade credit insurance market.

“I’ve been presented with every opportunity that I ever wanted but I had to seize those opportunities,” she said. “I think sometimes when people are given them, they don’t want to take that risk but I’ve found that, when you do, it really pays off and is a very rewarding experience. And when I look among my friends, I see how rare it is for someone of my generation to have been with one company for 20 years which is testament to the different opportunities the company has given me along the way.”

Trade credit insurance – a safety net for UK businesses

It’s a running joke in the trade credit insurance industry that people will ask each other how they fell into it, she said, but she knows why she stayed in the sector – because of the opportunity at hand to protect the very fabric of society, particularly amid tough economic conditions. Credit insurance is hugely beneficial to society, because it can stem the knock-on effect of insolvencies on an economy and prevent financial shocks from reverberating down the entire supply chain.

In her role as CEO, Murrow looks after a team of over 300 staff across the UK and Ireland – a remit that offers her a horizon view of the challenges and opportunities facing brokers and clients. Businesses generally are facing a difficult time due to the much more sensitive economic situation, she said, and Allianz Trade is forecasting a 16% year-on-year increase in business insolvencies in the UK.

“Last year realised a 51% increase over 2021, albeit on a very low base given that we were in COVID and there was a lot of money flowing in the economy which kept business insolvencies artificially low,” she said. “That 16% increase is net 29% above our 2019 levels – which was our most recent ‘normal’ year.

“That increased level of business insolvencies is putting credit risk very much back on the agenda for our clients, and also UK businesses in general. This is really a result of lower growth, higher inflation, higher cost of financing, and obviously more non-payments. In fact, our recent studies show that suppliers are being paid much more slowly by their customers. So, what we’re seeing is that corporates are essentially becoming banks, and not necessarily knowingly.”

In addition, there are lingering supply chain disruptions coming out of COVID, she said, which has seen businesses becoming more cautious about having inventory on hand. But given that consumer demand is down, just-in-time inventory levels are becoming more just-in-case, which is creating an oversupply of inventory for some businesses which is negatively impacting their returns. Transport, equipment, textiles and electronics are among the sectors most impacted by this glut of inventory.

“We saw a failure earlier this year when an online retailer cited inventory issues as being one of the main reasons they failed,” she said. “They stocked up on Christmas stock and they couldn’t get rid of it and had a cash flow issue as a result. So, I think supply chain issues are definitely one of the reasons that business owners are looking to protect their receivables.”

Trade credit insurance – opening up opportunities for trade

Despite these challenges, it’s not all bad news for UK businesses, Murrow said, and there are opportunities to be had in any economic conditions. In her time in the UK, she has seen first-hand that UK businesses are very agile and entrepreneurial, and she feels confident that they will be well-placed to source and seize those opportunities. And with the backing of trade credit insurance, clients can trade with greater confidence despite the sensitive business environment.

“Because we’re looking out for them and underwriting their credit risks, they won’t be hampered by the fear that if they trade on credit terms, they might not get paid,” she said. “There’s a great opportunity for these businesses to leverage the power of credit insurance to trade during difficult economic times.

“Another big opportunity is the growth of B2B e-commerce. We saw this accelerate during the pandemic and it’s a trend that’s just going to continue. We believe in the trend so much that we have actually developed two new solutions around e-commerce. The first is an e-commerce solution for businesses that trade directly with their customers online. [The second] is our solution for buy now, pay later providers, which we’re quite excited about.”

Supporting clients through tough economic conditions

Murrow highlighted that it’s clear customers are looking to Allianz Trade to help them grow safely during and through the downturn and there are several ways her team go about lending that support. With businesses going through so many challenges, a critical aspect of this is continuing to provide robust levels of coverage. This allows insureds to keep their credit limits open and to continue to trade. It’s always a good time to buy credit insurance, she said, but now is a great time.

In addition, the business looks to support its brokers and clients by giving them a 3D view of the risk environment they’re trading in. In a deteriorating economic situation, there will be weak spots and growth spots, she said. When Allianz Trade assesses credit risk it does so through three lenses –geopolitical risks, sector risks and buyer risks. That view allows the customer to fully understand the credit risks of the businesses they’re trading with – and also pinpoints potential areas for growth and prioritisation.

“We’re able to show them where there’s a good country, a good sector and a good buyer, so they can direct their sales team to that opportunity and potentially increase sales with them,” she said. “I think showing our customers the bright spots in their customer database or even for prospecting is a very valuable thing for them right now.”

Murrow noted that Allianz Trade’s broker partners are essential to ensuring that clients can make the most of this growth-oriented tool and that the business’s broker distribution channel is critical to the sustainability of the trade credit insurance market. Brokers enable real connectivity with the market, she said, and offer an independent third-party view of what their clients need and want from their insurance providers.

“Also,” she said, “they do a really great job in working with different trade associations and different partners to really articulate why the product is valuable and why a customer might need it.”

International General Insurance Holdings (IGI) has announced that its founder and current CEO Wasef Jabsheh will step down, while current president Waleed Jabsheh will succeed him as the company’s chief executive.

The succession plan goes into effect on July 1.

Waleed Jabsheh will take on expanded responsibilities beyond the insurance and reinsurance business, to include all aspects of the holding company activities, according to a Press statement. He joined IGI in 2002 shortly after inception and has served as president since 2011.

Wasef Jabsheh will continue to be engaged in overseeing the strategic direction of IGI as executive chairman.

In the Press release, IGI’s board said that Waleed Jabsheh “exhibited exceptional leadership during a period of significant growth and transition” for IGI, and was instrumental in delivering “some of the best financial results in [the company’s history.”

“This is a natural transition for us and is part of the succession plan our board set in motion several years ago,” said Wasef Jabsheh.

“The company has been on an excellent trajectory of profitable growth and expansion, and Waleed and I will continue to work together to maintain our company’s commitment to excellence and to delivering long-term shareholder value.

“Waleed has played an important role in developing the IGI culture that has supported our long track record of success and this ensures a seamless transition to CEO. The board and I look forward to continuing to provide strong stewardship to the IGI group.”

“It is an honour and a great privilege to take on the role of CEO and follow in the footsteps of our founding CEO, Wasef,” said Waleed Jabsheh.

“It is Wasef’s vision, leadership and consistent commitment to our clients, shareholders and most importantly our people, that IGI has achieved its many successes over the past two decades.

“I am committed to carrying on this legacy and building upon it; we have deep talent across the IGI group with an embedded culture of performance.”

IGI is an international specialty risks commercial insurer and reinsurer underwriting a diverse portfolio of specialty lines. It is registered in Bermuda, with operations in Bermuda, London, Malta, Dubai, Amman, Oslo, Kuala Lumpur, and Casablanca.

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The Bank of England (BoE) has put out a letter urging the UK insurance sector to ensure their reserves are sufficient as claims inflation continues to threaten the market.

In a statement addressed to chief actuaries of general insurers and managing agents under Lloyd’s, the BoE said that claims inflation due to factors such as rising wage, medical, and raw material costs is expected to affect all general insurers.

“As we have communicated previously, we expect claims inflation to affect all general insurance firms, although the nature of the impact will vary depending on the firm’s business model and risk profile. There is a risk that persistently elevated claims inflation might result in a material deterioration of solvency coverage for some firms unless they take appropriate mitigating actions,” the BoE said in its letter.

The BoE also stressed that technical provisions must be calculated based on up-to-date, credible information, and realistic assumptions.

“Firms also need to ensure the risk of further claims inflation is appropriately allowed for in internal model (IM) solvency capital requirement (SCR) calculations and where the standard formula (SF) is used to calculate the firm’s SCR, that it remains appropriate,” the BoE said.

The bank also highlighted its assessments come 2024, saying that it will continue to be in line with the Prudential Regulation Authority’s approach to insurance supervision and will consider the external environment in which these insurers operate. This includes reviewing potential system-wide risks, one of which is threats of insolvency resulting from low reserves.

“We trust this letter will be useful as your firm prepares for its mid-year reserving exercise, along with capital and business planning for 2024 later in the year,” the BoE said.

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“You can’t be what you can’t see” is a quote by Marian Wright Edelman that resonates with many of us. It speaks to the profound influence of the examples we see around us and how they shape our aspirations.

The importance of diverse role models

As iCAN (The Insurance Cultural Awareness Network) actively engages with professionals across our sector, we witness first-hand the unique hurdles faced by ethnically diverse individuals in advancing their careers, including a lack of connections, navigating a complex industry, and a scarcity of relatable figures to look up to.

In recent years, there has been a growing emphasis on promoting greater ethnic diversity within the insurance industry. Efforts have been made to encourage more individuals from diverse backgrounds to pursue senior roles but many professionals from ethnically diverse backgrounds still feel held back, often because of a feeling of imposter syndrome.

It is essential to recognise the significance of representation and ensure that the possibility of achieving senior roles is visibly demonstrated to those who are planning their careers in our sector.

What makes a role model?

Traditionally, we might envision role models as high-profile, C-suite captains of industry, however, it is better to broaden our definition and consider the traits exhibited by individuals in various roles.

Role models come in all shapes and sizes, at all levels of career and with all types of experience, but they possess some common traits. They inspire us through their words, actions, or creative thinking. They may also share invaluable guidance, offering insights into best practices, industry trends, and emerging technologies. They frequently hold themselves to high standards, whether in terms of their achievements or their behaviours.

Finding a role model

If you don’t already have a role model, you might want to find one. Here are some ways to think about it:

• It’s OK for the trait, rather than the individual, to be the thing that you admire. Consider what behaviours and qualities you find impressive, or conversely, those you might want to avoid.
• Consider the impact and influence a role model has had on others. Look for individuals who have made a positive difference in their communities or society at large.
• If you’re facing a challenge, how does your role model deal with it? Sometimes when we’re feeling unsure we can imagine ourselves in someone else’s shoes and channel their best qualities. As the pop-culture catchphrase goes… ‘what would Beyoncé do?’
• Don’t limit your influences to those who have achieved high status in their fields. Role models can be found in our colleagues, professional networks, friends, family members, historical figures, or even fictional characters.

It is important to note that role models – for yourself and for others – are key to helping you evolve into the diverse leader that you want to become. They will provide lessons you can use, advice you can pass on and ultimately allow you to take the best of others to develop yourself.

iCAN’s 2023 role models

At iCAN, amplifying and promoting the diverse talent in our industry has always been a priority, not only to celebrate their successes but also to serve as inspiration to others. This month, to commemorate our sixth birthday we published our second edition of iCAN’s book of role models, selecting 60 outstanding insurance professionals who are contributing significantly to challenging norms and pushing boundaries within our industry. They come from underwriting, broking, claims, insurtech, DE&I, talent, HR and are all making a difference to our industry.

One of our 2023 role models, Waseem Malik, chief claims officer of UK & Ireland general insurance at Aviva reflected: “We are making small steps but still have a long way to go to catch up with other sectors – however, I am pleased to see the momentum we now have and the role models who are passionately driving this.”

We encourage you to read their stories and be inspired!

Lockton, the world’s largest independent insurance broker, has announced the appointment of Mark Drummond-Brady as an advisor to the senior international leadership team, effective July 1.

Drummond-Brady has more than 40 years of experience in the insurance industry. He began his career as a broker at Hogg Robinson in 1981 after serving in the British Army. In 1987, he joined Lloyd Thompson Plc, which later merged with Jardine Lloyd Thompson Group (JLT Group).

Drummond-Brady served as chairman of the Lloyd’s and City of London branch of the Royal British Legion from 2007 to 2022. He also served two terms on the board of the Council of Insurance Agents and Brokers.

“Mark is a leader in the insurance industry, having been at the forefront of it for nearly four decades,” said Chris Brown, president of Lockton International. “His exceptional level of market knowledge, industry acumen and counsel will be invaluable as we continue to grow. Welcoming someone of Mark’s calibre to our senior leadership team is a statement of intent and will further support our development as a business and our client focus.”

“Mark shares so many of the values of Lockton, bringing with him the knowledge and experience that our associates, clients and trading partners will recognise as invaluable to us,” said EJ Hentenaar, European CEO at Lockton. “Lockton continues to attract great talent from within our industry as well as outside of our market. Mark’s arrival will allow us to continue to grow, whilst never losing sight of the approach, values and culture that make us different.”

“I am delighted to be joining Lockton at such an exciting time for the business, having watched it progress from afar for several years,” Drummond-Brady said. “Lockton has even more ambitious growth plans, which are credibly grounded in its impressive performance in recent years. Lockton remains proudly independent and has retained its values, which sets it apart from many peers in the market and provides a solid foundation as the business continues to scale. I look forward to working closely with the executive team to maintain this momentum.”

Drummond-Brady is the latest addition to Lockton’s roster. The company recently announced the appointment of Jeff Henningsen as CEO for its Texas P&C business and Tyler Bolander as senior vice president of regional operations.

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After a long time spent “flying under the radar,” AmTrust International is ready to find its voice in the insurance marketplace. Speaking with Insurance Business, CUO Bruce Whitmee (pictured) shared why the time is right for the company market P&C insurer to boost its profile and market its potent blend of financial strength and strategic agility.

“AmTrust Financial wrote over $8 billion worth of GWP across the group in 2022, and about $1+ billion of that is outside North America,” he said. “In that international part of our business, we write a sub-90 combined ratio and we occupy some fairly niche lines of business.”

Touching on the reach of AmTrust International, a subsidiary of AmTrust Financial, Whitmee highlighted that the business specialises in professional indemnity (PI), legal expenses, mortgage & credit, property and warranty. Warranty is a business line embedded in the very DNA of AmTrust Financial, he said, while AmTrust International underwrites significant warranty business in the UK, Europe and around the world (including Asia and South America).

Getting back in the conversation

He revealed that the “natural uplift” AmTrust International’s business has seen over the last 12-18 months has served as the starting gun to get back into the conversation of the marketplace.

“We’ve started to see a lot more activity and a lot more opportunities coming through,” he said. “Obviously that differs from business line to business line because we’re quite diverse in our appetite within those niches. So, different areas of the market are moving at a different pace and a lot of what happens next depends on wider market trends.

“Take the PI space, for example – there’s been a significant hardening of rates over the past three or four years and we’re nimble and entrepreneurial enough as an organisation to spot those natural changes in the cycle of the market and jump in where we see an opportunity. And we have the [expertise and reach] to expand quite quickly because we have headroom in our capital.”

Whitmee noted that there’s no shortage of appetite for growth within AmTrust International and that the business has significant ambitions for the years ahead. The foundations have been laid by the restructuring undertaken by the company in recent years. AmTrust Financial went through a period of consolidation from 2018 until the end of COVID. Going private in 2018, he said, was a strategic move that allowed the business to step back and reassess which lines of business it wanted to operate in.

“Pre-2018, AmTrust Financial went through a very acquisitive period, and, over time, I think we allowed ourselves to get stretched slightly thin across multiple lines of business. Since 2018, we have focused on what we know and love, and what we’re good at – and to really invest in finding the right people to drive those lines of business.”

At the core of AmTrust International’s strategy in recent years have been two key components – getting the right people in the right roles and being very selective about the clients it wants to work with going forward. He said that working with trustworthy partners who bring a good understanding of the market and distribution, reliable data, and knowledge of compliance requirements is critical, as it is at the heart of building a secure and sustainable business and partnership.

“We’re now back on the front foot,” Whitmee said. “We’re looking for new MGA partners. In most of our lines of business, even though we have a wholly owned MGA that is a key distribution partner for us in that line, we don’t work with them on an exclusive basis. We do work with other clients and MGAs in those spaces and our objective is to work with more. As a great example, in PI, we have Collegiate, but we also work with a number of other partners.”

The British Insurance Brokers’ Association (BIBA)’s recent conference represented a great opportunity for AmTrust to go out to the market and relay its message among its broking and MGA partners. To be able to speak with them face-to-face about the business’s plans for the year ahead and what it will mean for them was a very special experience, Whitmee said, and it was great to see how well that message was received.

“We’re continuing a big push on getting out and meeting our brokers,” he said. “Most of them are aware of AmTrust in its various guises but haven’t been able to see the full picture before now. I think they do see us as a credible, robust, well-capitalised market that is interested in writing business that fits within our niches and, most importantly, looking for more niches that match the characteristics of the business we love to write and segments we prefer to operate in.”

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Forecast to exceed $70 billion in premium by 2030, the risks and opportunities presented by the embedded insurance market are provoking active debate across the insurance industry. For some, the sector is rife with opportunities for profitability and differentiation while for others, concerns around data misuse and regulation call to mind the spectre of the PPI scandal.

For Luigi Alicante (pictured), co-founder of the Open & Embedded Insurance Observatory, navigating the challenges and taking advantage of the opportunities presented by embedded insurance is a matter of keeping up to date with the key trends shaping and reshaping the market. Unpicking his decision to join the insurance industry two years ago after 10 years as a university researcher, he highlighted his interest in how insurance responds to innovation.

Innovation in insurance

“After I was introduced to the sector in a role as senior product owner with the digital platform builder Mia Platform, I was curious to know more about innovation in the insurance space and the most important trends and new technologies in the market,” he said. “And from looking at those trends, I think that most insurance companies today are quite old companies with good margins, who don’t yet feel the incredible winds of change that have arrived.”

Change doesn’t tend to happen quickly in insurance, he said, but he can see how factors including the COVID-19 crisis and the rate of natural catastrophes are putting pressure on insurer margins. This isn’t happening in isolation but rather in tandem with the expansion of the insurtech sector which has seen tech entrepreneurs create their own insurance businesses rather than taking on the challenge of trying to sell their technology solutions to traditional market players.

“The third important trend that I’m seeing is that companies like Tesla, Amazon and Google are trying to understand how they can exploit this market,” he said. “Tesla’s decision to sell embedded insurance and Amazon’s entrance into the UK business insurance market are just the beginning of the new wave of changes coming for the insurance industry.”

What’s moving the dial on innovation in insurance?

Each of these factors individually is creating increased pressure on insurance companies, he said, and the combination of all three at once is forcing insurers to move the dial faster when it comes to their own digital transformation. Alicante believes these three trends will define the direction of travel of the insurance industry over the next five years.

“What I’m seeing in my role is the importance of the right technologies in that transformation,” he said. “And the right technologies are the ones that understand and support the future strategies of insurance companies. Take embedded insurance, for example. Embedded insurance is a matter of strategy and a matter of integration with different companies. Insurance carriers, insurtechs and distributors have to work together in order to create an offering in this space.

“What is important to understand is the role the right technology and APIs have in creating these integrations. A survey carried out by the Observatory reveals that today, an integration between an insurance company and a distributor takes on average between nine to 12 months. When you see that, you understand that embedded insurance cannot happen without the right APIs. These APIs are the key to integrating faster.”

The acceleration towards innovative insurance solutions

Some insurance companies are already making rapid inroads into this space, he said, and in the future, that will have to be the direction that the whole market takes. Underpinning this is that in Europe, EIOPA is now looking to define the open API standard. Once that definition is established and when it becomes mandatory for insurers to expose their APIs, he is confident that the sector will see a strong acceleration from insurers towards more innovative insurance solutions, including embedded insurance.

Fundamentally, Alicante said, this development is still at the embryonic stage and insurers today should be looking to keep abreast of all the changes and evolutions occurring across the market. His key advice for insurers looking to proactively engage with greater innovation and to invoke meaningful technological change across their organisations is simple – surround yourselves with the right people.

“I think the insurtech space is characterised by amazing people who have brilliant brains and the most fantastic technologies,” he said. “But moreover, they’re enthusiastic people that want to grow their companies and develop their ideas. So, my message to the insurance companies is this – please trust these people.

“Create an ecosystem where you can focus on your core business and on creating new products for your customers that satisfy your customer needs. But at the same time, invest in these insurtech startups of which there are so many and which are doing so many interesting things all around the world. These entrepreneurs have the energy to help take insurance companies through the digital transformation journeys that they have to make. My suggestion is to invest in these entrepreneurs and undertake those journeys together.”

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