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In July 2021, with lockdown lifted in the UK and life gradually returning to normal, consumers and SMEs were less concerned about an insurer’s claims performance.  

For example, the CII’s Public Trust Index recorded that only 64% of SMEs rated the statement ‘I have a choice in how the claim is settled’ as important in summer 2021. Indeed, for SMEs, speed of claims, respect shown while making a claim, and control over the way a claim was paid were ranked the lowest of the nine elements of consumer trust for importance.

Fast forward to summer 2023 and speed of claims now ranks second out of the nine elements, with all three climbing above price.

In these uncertain economic times, it appears that SMEs have less of an attitude of ‘I’ll cross that bridge when I come to it’ about claims. They want the claims process to be fast and flexible, giving them a choice over how it is paid.  

So, it is reassuring that our latest research shows that claims professionals are rising to this challenge. Our latest data shows that 74% of SMEs were likely to rate performance against the statement ‘I have a choice in how the claim is settled’ as positive in summer 2023.

That’s good news given that the FCA’s Consumer Duty, which came into force in July this year, introduced ‘consumer support’ requirements for the first time. That means firms have a regulatory requirement to ensure, in the FCA’s words, that ‘the means of making a claim should be easy to find and the firm should not… create barriers to them making a claim’.

Our public trust index will continue to provide a unique window into how insurers are meeting increased consumer expectations in this key area of reputation and compliance with the Consumer Duty by making it easier and faster to make a claim. This is something we’ll continue to monitor and report on over time.

Like so many of his peers in the insurance marketplace, it was chance and circumstance that brought Steven Moore (pictured), head of professional indemnity & professional lines – specialty at AmTrust International, to the professional lines insurance sector. Some 30 years later, he has seen the market through good times and tough times alike, and his passion for professional lines remains undiminished.

With previous credits including 17 years at RSA, Moore has seen first-hand the difference between working for a large corporate and a specialty lines underwriting business. His time with the former provided a “great foundation”, he said, but he’s relishing the decision-making responsibilities that come with his present role.

“What I really enjoy most about working at AmTrust is that you’re empowered to make decisions quickly,” he said. “That specialist lines approach means you’re always focused on your class. We’re very customer-orientated so we’re always listening to what the customer wants and trying to provide solutions to the market. And there’s no broader corporate strategic agenda sitting behind that – so if you come up with a good idea, you’re supported to bring that to the market as quickly and efficiently as possible.”

Professional lines insurance – what sets it apart?

Moore noted that what’s kept his interest in professional lines alive is the variety of individuals and businesses he has the opportunity to interact with and support on a daily basis. Whether they’re accountants, surveyors or engineers, each professional line has an ever-changing risk profile which requires continual research and analysis. Often that’s quite complex to navigate, which means it’s a very hands-on line of business, he said, and one which gives him the chance to speak to a lot of very interesting customers.

“Actually, that’s the fun part of the job,” he said. “Often, you only have to ask one question, and then someone can talk for an hour about what they do. You don’t need a piece of paper to bring professional lines insurance to life which is what I really enjoy about it. And as a class, it’s well-established now but that doesn’t mean there aren’t always new challenges coming along.”

Examining some of those challenges, Moore highlighted how external market conditions are impacting the sector. The economy is always an issue for the class, he said, and AmTrust monitors that very closely. Each recessionary period is different in terms of the respective roles and responsibilities of various stakeholders including the banks, the government and the regulator.

“For us, it’s about negotiating how our customers respond to that environment and the changing claims landscape as well,” he said. “Because that changes in an economic downturn with fraud increases, etc. The economy is a real concern to everyone and to businesses as well, and we appreciate that affordability can become an issue. We’re very aware of that and we respond where we can to assist in that. But it’s an interesting time for professional lines because it’s where the power of really good strong underwriting experience comes through.”

Leveraging relationships to create a sustainable professional lines insurance market

Professional lines and professional indemnity are always very relationship-driven classes of business, he said, but this only becomes more applicable amid challenging market conditions. When you have strong and long-standing relationships with a customer, you have to look for every opportunity to add more value to that relationship.

There’s a two-way strength to that partnership approach, he said, having a longer-term relationship means that the insurer understands and trusts you. That makes them more likely to respond to the pinch points facing a business and make concessions wherever possible – if not through premium, then potentially giving some coverage back or changing up the payment method.

“The importance of these relationships to the customer is reflected in the business meetings that we have,” he said. “Quite often we’ll see the CEO, the CFO in those meetings because they recognise that, for a professional, it’s a big cost but also that it’s a relationship that needs to be nurtured and protected.

“What they don’t want is someone who’s going to walk away the moment you have a problem. You want someone who’s going to be supportive and also experienced enough to help you through the process of a claim. Because it’s stressful for the professional that is going through it.”

Where brokers sit in the professional lines insurance ecosystem

While on the smaller end, brokers tend to be less invested in the relationship management aspect of this product line, he said, on the larger end the role of the broker in fostering and nurturing these strong relationships is critical. These brokers are involved throughout the entirety of the relationship, from bringing the risk to AmTrust’s attention, to putting the team in front of the customer, to explaining to the customer the terms of the coverage and why it’s so important.

“Brokers are particularly vital during difficult market conditions or when a client has had a claim,” he said. “They’re the ones best placed in assisting both the insurer and the client on understanding what happened, why it happened and what they can do to prevent it from happening again.

“It’s a really vital relationship which is why we focus on communicating with our broker. Because the easiest thing to say is ‘yes’ and the most difficult thing to say is ‘no’. But the important thing for me is when I say ‘no’, I give a reason. It’s not good enough just to say ‘no’, you need to give the customer and the broker an insight into why, as an insurer, you like the risk or you don’t.”

What’s next for AmTrust International?

Looking at what’s next on the growth agenda for AmTrust, Moore revealed that the business is actively exploring new opportunities to give out its capacity – which is why it recently joined the MGAA. With one eye fixed on the economy, he said, it’s looking at different sectors of the market. The business is already quite strong in the UK in certain sectors and would like to be stronger in Europe more generally.

“I think it’s about just taking the skills that we’ve got within the UK markets to build them out in other territories,” he said. “Despite writing $1 billion-plus of GWP outside North America in 2023, we’re not as well known as we’d like to be in the UK and Europe, and we’d like to get our name out there more by going to industry events, meeting people, and finding new ways to expand our presence.

“We’re open for business. We’re a big and a growing company… and we’re a real underwriting company that is prepared to back people, and which is looking to make it as easy as possible for people to work with us for the long term. The customers that we’ve got, we aim to keep for a long time – and hopefully, they aim to insure with us for a long time as well!”

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If cyber insurance was a person their young age would seem at odds with the sheer number of momentous events they have experienced during their lifetime. It’s a dichotomy at the heart of cyber insurance – that contradiction between the coverage’s relative youth and tumultuous trajectory.

Discussing the evolution of the cyber insurance market, Christopher Burgess (pictured), director of cyber at Markel International – which is celebrating 10 years of serving the sector – highlighted some of the landmark years in its vibrant and varied calendar. Looking at the formative cyber events that have shaped the last decade, he said, it’s impossible not to mention ransomware.

Ransomware – still a driver of change for the market

Ransomware continues to be a game changer for the cyber insurance market, Burgess said, and the majority of cyber claims are still paid out for ransomware losses. The threat has been around for a while but the emergence of cryptocurrency and Bitcoin which has allowed malicious actors to demand traceless payments led to an uptick – culminating in a seminal year during 2017 where it started to spike in both frequency and severity – while its profile was raised by several high-profile incidents, among them WannaCry and NotPetya.

“I think that growth in ransomware drove the market in a couple of ways,” he said. “It required underwriters to upskill significantly to gain cyber knowledge, and it put greater scrutiny around certain controls to help defend against and mitigate the ransomware threat. I think clients suddenly realised the value of cyber insurance during that time and we saw a huge growth in the portfolios of the cyber insurance market globally.

“[…] And as rates increased, which we saw culminating in 2021/2022, clients themselves started to increase their security controls, their IT budgets but also their insurance budgets to buy the cyber coverage they’ve begun to really value as part and parcel of how to protect a company and its balance sheet from cyber attacks. So, I think really drove the market and that stems back to ransomware and when that started to really take off in 2017.”

Twenty-nineteen was another landmark year in the cyber insurance timeline, Burgess said, as it saw the material take-off of double ransomware – where the insured suffers not just having their data encrypted in return for paying a ransom but also facing having that data exfiltrated. That can and has cost clients and insurers more money, driving up claims costs – which is where the corrective market conditions of 2021 and 2022 came from.

“It’s interesting looking back at these seminal years in the ransomware story which have really shaped where we are as a market today,” he said. “NotPetya and WannaCry in 2017 were widespread attacks that took place and are widely acknowledged as nation-state-backed attacks.

“That was a key moment for the market because that started the debate, in my opinion, about war and about war exclusions, and about the extent to which insurers feel comfortable covering certain elements of nation-state attacks. It started that conversation which continued earlier this year with the Lloyd’s bulletin and the requirement to put certain war exclusions into policies.”

The output around this bulletin is work that really started back in 2017 when those questions were first being asked within Lloyd’s, within the wider London insurance community, and around the world. Those pivotal years in the cyber insurance calendar continue to resonate across the cyber insurance sector, he said, and the market as a whole is continuing to see how these will play out in 2023 and beyond.

How Markel International’s cyber proposition has evolved

The development of Markel’s cyber insurance proposition has played out in the context of how the broader cyber landscape has developed – and it will evolve as that landscape continues to change. Examining that evolution, Burgess highlighted the irony that consistency has been the key to navigating the ever-changing sector. In cyber, he said, things are changing constantly which is why providing a consistent offering is such a critical consideration for brokers and insureds alike.

“We’ve had a consistent offering for over a decade now in cyber,” he said. “We’ve never pulled out of writing or insuring a certain industry or a certain territory. We’ve been consistently there for our broker partners and clients, we’ve been consistent in paying claims and we’ve kept a consistent team together.

“Remaining competitive in this market while remaining profitable is quite challenging and there are some competitors we’ve seen in the last decade that are no longer here because of that challenge. Our consistency has been the key to us continuing to achieve that. I often feel we’re spinning quickly because there’s always so much going on internally that we have to do to make sure we keep our position as a market leader in cyber.”

Burgess noted that when Markel’s London Wholesale  division  first started writing cyber a decade ago, the coverage was still relatively new and so there was little appetite and slow growth in the market. However, he said, in recent years, it recently hit the important milestone of writing over USD $100 million of cyber premium at the Syndicate in London and it’s now well on its way to reaching the USD $200 million mark.

“We’re also on the cusp of releasing our third cyber product at the Syndicate here at Markel in London, which we will do this year,” he said. “I think that will be another big milestone for us in cyber at Markel.”

Looking at the makeup of the market, Burgess highlighted that people coming into the cyber market tend to either hail from a financial lines background, like himself, or be new to the insurance market. Given that the market is still so young and that cyber as a product has only been around since the late 90s, he said, there’s a high value placed on having a skilled, experienced, and dependable team.

“Having a supportive environment where we invest in our people means that our people stay and gain experience and training and expertise,” he said. “And I think brokers do genuinely value that and value the fact that they can get service from that. We’ve expanded our team as the portfolio has grown which has been a big success as it means we can keep servicing that business. Retaining talent and developing the next generation of cyber underwriters is a challenge for the whole market but I like to think that here at Markel, we’re doing our part.”

Allianz has released its comprehensive net-zero transition plan, reaffirming its commitment to achieving net-zero emissions by 2050 within its investment and property and casualty underwriting portfolios and by 2030 in its own operations.

This plan outlines specific intermediate targets for 2030, focusing on reducing greenhouse gas (GHG) emissions across Allianz’s business operations, investment portfolio, and P&C insurance business.

Additionally, Allianz announced its goals, which are to strengthen its engagement with customers and investee companies in their journey towards net-zero emissions, expand investments in renewable energy, low-carbon technology, and sustainable mobility, and advocate for climate action alongside partners, the financial services sector, other industries, and policymakers.

Key elements of the Allianz transition plan include a commitment to achieve 150% profitable growth in revenues from renewable energy and low-carbon technology solutions in the commercial insurance segment by 2030 compared to 2022. Allianz plans to provide coverage for emerging hydrogen technologies and invest an additional €20 billion in climate and cleantech solutions to align with EU sustainability regulations.

Net-zero targets for investments, businesses, and operations

For Allianz’s corporate insurance business, which includes large company customers reporting GHG emissions, the company aims to reduce emission intensity by 45% by 2030. In retail motor insurance, Allianz targets a 30% reduction in carbon emissions in nine key European markets by 2030 compared to 2022.

Allianz’s commitment also extends to its investment portfolio, with targets to reduce absolute owned emissions by 50% compared to the 2019 baseline for listed equity and corporate bonds by the end of this decade. All directly held real estate assets and joint ventures will align with the 1.5°C pathway, and GHG emissions from investments in corporates (both listed and non-listed) will be reduced by 50% compared to 2019.

The plan also emphasizes emissions reduction in high-emitting sectors such as electricity utilities, oil and gas, steel, and automobiles, achieved through active engagement with companies and sector-wide initiatives.

Allianz underscored its commitment to achieving net-zero emissions in its operations across 70 countries by 2030. Measures include reducing climate gases per employee by 70% compared to 2019, transitioning to 100% green electricity from 2023, and adopting a fully electric corporate car fleet over time.

Allianz also touted its net-zero plan as a reflection of its determination to drive transparency, trust, and lead by example in the journey toward full decarbonization of its insurance and investment portfolios by 2050. Annual progress reports will provide updates on Allianz’s environmental goals.

“With extreme weather events, this summer has reinforced the urgency to act on climate change,” Allianz CEO Oliver Bäte said. “Governments, businesses and individuals must work together to build resilience and limit global warming to 1.5°C. Therefore, at Allianz, we are committed to delivering on our own net-zero targets, as well as partnering with our clients and investee companies in their transition. We believe our intermediate targets will help us realize our growth potential and contribute to a healthier, more secure future for everyone.”

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Insurtech UK has today announced the appointment of its first-ever CEO, with Melissa Collett (pictured) taking the reins of the insurtech trade association.

In a Press release, Insurtech UK noted that Collett, who steps into the CEO role with immediate effect, will drive its mission of transforming insurance through technology and making the UK the global leader for insurance innovation. Among her responsibilities, she will look to maintain and expand Insurtech UK’s relationships with key stakeholders within both Government and regulators.

In addition, Collett will support the further development of Insurtech UK’s membership base – which currently consists of over 100 companies, including 100 insurtech businesses and 30 partners both from the traditional insurance space and industries which serve the insurance market – while strengthening its existing network and collaboration between insurers and insurtechs.

Commenting on her appointment, Collett – who most recently served as executive director for professional standards at the Chartered Insurance Institute (CII) where she spearheaded the Digital Ethics Companion – said: “This is a crucial time for the sector. AI and tech innovation is firmly on the government agenda and the UK ecosystem is uniquely placed to transform the way insurance works.

“I have seen the exponential growth of the sector firsthand and how it can make a real difference to consumers and businesses. The recent report that our partners McKinsey & Co produced around the sector, outlines that growth opportunity. I am very excited about leading an organisation that truly represents the future of insurance.”

Also commenting on Collett’s appointment, John Warburton, Insurtech UK co-chair and CEO of Konsileo, said “Alongside a proven track record in the industry, Melissa’s previous role at the CII means she understands the challenges and opportunities facing a membership organisation. Insurtech UK has gone a long way in just five years, and we want to take it to the next level. With Melissa’s energy, network, and strategic vision, she is well-placed to do just that.”

Co-chair Luise Barile, CFO of Many Pets added: “Melissa has the profile and experience to help us navigate the challenges ahead and help promote our sector further to its broad and diverse stakeholder groups, ensuring we provide a robust voice for our sector.”

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Insurtech Vesttoo, which has faced turbulence since it emerged that alleged fraudulent letters of credit (LOCs) had been used via its platform, has alleged that its CEO, other former executives and third parties engaged in “pervasive and systemic misconduct” and has claimed to have uncovered “conspiracy”.

The allegations came as Vesttoo filed its first interim bankruptcy report in the United States Bankruptcy Court for the District of Delaware.  

In the report, it was alleged that former Vesttoo executives Yaniv Bertele (former CEO), Alon Lifshitz (former CFE), Udi Ginati (former senior director, capital markets) and Josh Rurka (former senior director, Asian markets) were “directly involved” in creating fake documents and forging identities.

Employees of China Construction Bank, as well as other banks and individuals associated with the Company’s largest investor, Yu Po Finance, were also alleged to have engaged in wrongdoings, according to a news update shared by Vesttoo. 

While it was initially claimed that the source of fraud was external, the investigation found that that the individuals stated above knowingly directed, instigated and engaged in the fraudulent activities themselves.

Vesttoo fraud allegations – insurtech sets out next steps

The report highlighted the steps that Vesttoo has taken to ensure that appropriate institutional financial security controls are in place to resolve its contractual obligations on a commercial basis. It also described the development of a plan for reforming and conducting its business going-forward, named “Trade Forward.”

“While we obviously remain very troubled by the misconduct of those that the company and markets placed great trust in, we are pleased that the investigation has confirmed that this scheme was confined to a small subset of the Vesttoo leadership team,” said Ami Barlev, Vesttoo’s interim CEO.

“The company’s technology platform and its core value remain strong, and we intend to use it and our deeply experienced insurance professionals to emerge from this process as a trusted partner.”

Co-founders of Vesttoo speak up against “opportunistic parties” #insurancenews https://t.co/MdUACxZI2C

— Insurance Business America (@InsuranceBizUS) August 30, 2023

The pair have claimed that “opportunistic parties exploited the temporary crisis the company was facing to advance aggressive and unilateral actions aimed at taking control of the company,” according to reports.

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.