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Insurtech managing general agency (MGA) Qlaims has signed a multi-year deal with specialist MGA Prestige Underwriting to include Qlaims insurance cover in the Prestige Underwriting Coverall Household Policy.

Under the partnership, Qlaims will provide clients who experienced a loss their own claims specialist that’s certified with the Chartered Institute of Loss Adjusters (CILA) to prepare and manage their property claims. The partnership aims to help on larger claims, with Prestige Underwriting selecting customer claims above £25,000 to benefit from the support of the value-added service.

Prestige’s non-standard home insurance product, Coverall, is distributed throughout the country by a network of over 500 brokers, with over 30,000 clients in total. Qlaims’ inclusion in the policy reinforces the firm’s customer approach, while Qlaims fulfills its consumer duty of supporting good outcomes for customers while managing insurer claims costs.

Qlaims CEO Liz Latter (pictured left) said the firm’s goal has always been to manage claims efficiently and effectively to ensure the correct outcome for their clients.

“We think the UK has a gap in its policy wordings and as a business we are keen to see this type of cover offered more broadly to clients,” Latter said. “A clear and well-presented claim both speeds the process and supports a fair and correct outcome for customers. With the FCA focus on this area, Qlaims Insurance can help clients at their time of need and enable them to realise the value from their insurance policy. Something I think all of us are keen to achieve.”

Prestige Underwriting managing director Alison Williams (pictured right) also praised the partnership, saying that it added further value to the firm’s Coverall product.

“Experiencing a claim event can be overwhelming for many customers and we endeavour to support in every way we can to resolve a claim efficiently and successfully. Working in partnership with the specialist team at Qlaims will reinforce the support and assistance we can offer, adding value for our Brokers and their policyholders,” Williams said.

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This article was provided by Jonathan Forster (pictured), SME distribution director at Travelers Europe.

Even when times are good, cash flow is a struggle for small- to medium-size businesses (SMEs). According to research from Xero and Accenture, late payments cost UK small businesses approximately £684 million annually. That doesn’t even account for the time businesses lose in chasing those payments.

In today’s conditions, making ends meet is that much more difficult. Scan the news headlines right now and you’re sure to find an article about inflation, supply chain disruptions, increased energy costs, higher taxes and interest rates – the list goes on.

It’s a sobering mix for any business owner, but for SMEs, the strains intensify cash flow problems:

Fortunately, there is help for businesses needing to preserve cash flow or get back on their feet.

“SMEs are facing a lot of uncertainty, but they can access resources to help ease the burden,” said Jonathan Forster, SME distribution director at Travelers Europe. “Travelers wants to be part of the solution and has made a commitment to serving the SME space with not only a growing suite of products in areas we truly understand, but also through valuable added benefits that are free to the end customer.”

Benefits can save a business

The SME product offering from Travelers includes Cyber, Property Owners, Marine Cargo, Office, Management Liability and Professional Indemnity Combined insurance – and the roster of benefits supporting these products has been growing. Travelers SME Office policyholders recently gained the benefit of First Recovery, a service that gets an SME customer back up and running if they experience an insured event such as a fire, flood or explosion at their premises.

“A catastrophe such as a fire can bring down a business that doesn’t have a disaster plan,” Forster said. “First Recovery can get an impacted business into temporary quarters, supplied with the necessary IT infrastructure, and ready to operate again often within hours of an incident. They also help policyholders develop a free disaster recovery plan bespoke to their business. The early days following an incident are vital to take the stress away from clients so they can focus on running their businesses. Travelers is the only insurer in the UK that offers the First Recovery benefit to SMEs for free as part of the cover.”

Expertise for mitigating everyday challenges

While not all business owners will experience an event as dramatic as a fire, they will frequently face challenges that require them to consult expert support in the moment. Cyberattacks, for instance, are becoming more frequent and increasingly sophisticated: Vodafone Business research found that 54% of SMEs in the UK experienced some kind of cyberattack in 2022, up from 39% in 2020. Hiring a cybersecurity consultant can cost a business thousands of pounds per hour.

Beyond Cyber, Travelers offers Office policyholders support via free HR and accounting helplines. Through the Travelers Management Liability package offering, customers can get an hour of free legal advice from Kennedys, a leading UK law firm, about any matter relating to their policy. Customers can make an unlimited number of calls – each one just can’t exceed one hour.

In these times, more businesses are managing concerns ranging from Directors’ & Officers’ claims to Employment Practices Liability issues, which can drain an SME’s time and cash flow. Access to support is valuable to have in the moment, whether a business is facing an uptick in claims in the current environment, or it simply wants to minimise distraction and time spent away from the task of running a business each day. The support ensures that for businesses that struggle with cash flow, any money leaving the business is well spent.

“Like everything else, the cost of insurance is going up,” Forster said. “So it’s important for SMEs to ask, ‘What am I receiving in return?’ Travelers’ product offering includes these valuable benefits, and these cover enhancements can relieve so many burdens.  Indeed, they could potentially even save your client’s business.”

_{The information provided in this document is for general information purposes only. It does not constitute
legal or professional advice nor a recommendation to any individual or business of any product or service.
Insurance coverage is governed by the actual terms and conditions of insurance as set out in the policy
documentation and not by any of the information in this document}

The release of Lloyd’s nation state cyber mandate last August ballooned into a “PR disaster” following a barrage of negative coverage and the insurance industry must learn lessons on communicating, the CEO of managing general agent (MGA) CFC, which has a Lloyd’s syndicate, has said.

“It was an absolute PR disaster, it kills me,” Newman said in response to a question posed by Insurance Business at the 2023 CFC Summit in Chicago on May 18, 2023.

Newman labelled the fallout that erupted from the mandate a “frantic panic”, likely spurred on by conflict erupting in Europe with the onset of Russia’s Ukraine war, despite the clauses and intent having been in the works with the Lloyd’s Market Association for three years.

Last year, Lloyd’s unveiled suggested model clauses and a mandate, effective from the end of March 2023, for its participants to exclude certain state-impairing nation state-backed attacks and losses arising from a war, stoking broker and client fears and confusion, and resulting in a tide of what were described during the CFC event as negative headlines.

“I’ve never seen worse communication in my life,” Newman said of what followed the mandate’s release. “I would say in the insurance industry we don’t seem to be great at PR, and I think that’s something that we should all work on.

“Absolutely as insurers, we should bear a lot of culpability there for getting the messaging right.”

Counteracting the “digital equivalent of a nuclear strike” – CFC underwriter on Lloyd’s cyber mandate

Newman’s comments came during a Q&A session at the MGA’s US broker event and followed a presentation from CFC corporate cyber senior underwriter Beth Granger in which 100s of attendees heard that the changes were not a kneejerk reaction or bid to close walls entirely on nation state-backed cyberattacks, rather a response to ongoing incidents dating back as far as 2014 through which Russia has targeted Ukrainian infrastructure. Such attacks have highlighted what might be possible should cyberwarfare be used to cripple countries.

In a bid to tackle the spectre of systemic cyber risk, the clauses built by lawyers for Lloyd’s participants and the ensuing mandate was a bid to ensure carriers “excluded losses by nation state actors that were so catastrophic in nature that they destroyed a nation’s ability to function”, Granger said.

In layman’s terms, Granger said, this would have to be the “digital equivalent of a nuclear strike”, an event so vast that it would not be covered in any other standard insurance policy.

The cyber underwriter took aim at the “dozens of negative headlines” that stemmed from the changes.

“Be very clear, cyber insurers will continue to cover nation state attacks as they have been doing so for decades,” Granger said.  “It’s important to clarify that this is not a new exclusion – we are simply altering the language and upgrading it and bringing it into the modern world.

“It really is such a shame to see a change in our market that is fundamentally positive for policyholders be portrayed negatively due to essentially it being misrepresented in the press and there being a load of confusion in our market.”

Cyber remains “a priority area” for Lloyd’s following mandate, corporation says

Lloyd’s declined to comment explicitly on what was said around communication at the CFC event; however, a Lloyd’s spokesperson said that cyber “remains a priority area for Lloyd’s and we will continue to take a pragmatic and innovative approach to supporting the growth of cyber at Lloyd’s.”

“The advisory guidance provided in August 2022 ensures we manage risk responsibly on behalf of customers – including potentially systemic risks – while approaching this complex field with the expertise and diligence it requires,” the spokesperson said. “Our response ensures we maintain an adequately capitalised market for manageable events, while providing clarity for customers on emerging political risks.”

The spokesperson said that rather than applying a “one size fits all” approach, the updated guidance is intended to encourage its managing agents to “recognise and apply due diligence to the specific complexities around state-sponsored cyberattacks, which come with potentially systemic risks for customers and our market.”

The spokesperson reaffirmed Lloyd’s commitment to the changes, and said that the corporation “did not take this decision lightly”.

“It is not a blanket exclusion but a segregation of risks in a fast maturing area of insurance,” the spokesperson said. “There are a number of teams of underwriters working on developing products in the Lloyd’s Lab to satiate the demand for this cover while managing the risk with appropriate capital and pricing to reflect volatility.”

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.”

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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.

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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.”

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