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The detailed sustainability strategy lays out the steps which the company will take over the next 36 months and provides multi-point plans for how it will implement ESG criteria and monitor its performance effectively, a release said. MS Amlin added that the plan would support its commitment to minimising the environmental impacts of its operations globally, while also expanding its social and governance practices.

The plan also aligns MS Amlin’s business strategy with the vision of its parent company MS&AD., while addressing the increased appetite from clients looking for support on sustainability.

MS Amlin’s sustainability strategy has three components:

• Supporting profitable growth – Deploying data, analytics and underwriting expertise to: i) support and influence clients aligning with the UN Sustainable Development Goals (UNSDGs) and transitioning to net zero; and ii) appropriately price for exposures arising from this transition.
• Empowering our people – Embedding sustainability practices to attract, engage, motivate and empower employees, while having a positive impact on the wider community.
• Delivering on obligations – Ensuring MS Amlin is well placed to fulfil its regulatory and other sustainability-related obligations, particularly in relation to climate risk

During the 36-month period, MS Amlin will fulfil the target setting requirements as specified by the Science Based Targets Institute (SBTi). The (re)insurer will also submit its targets for validation to the SBTi.

“MS Amlin has a key role to play in the transition to net-zero. Insurance is one of the enablers of growth and trade, meaning it can spearhead and support with the transition of economies and driving decarbonisation,” said MS Amlin Underwriting Limited CEO Johan Slabbert. “This document and the subject at its heart, sustainability, touches every aspect of our business.”

Slabbert added that the sustainability plan’s scope is broad and that the challenge to meet the requirements is “sizeable,” and that it will not be easily solved in a matter of years – but the opportunity ahead of the company is enormous.

“As the world continues on its journey to transition to a low carbon economy, we recognise that it is our duty to act, and responsibly contribute to these developments,” said MS Amlin head of sustainability and ESG Amir Sethu. “In addition to our corporate responsibility to act ethically, our employees have told us that they are passionate about, and prioritise sustainability, in their personal lives. Our new Sustainability Strategy sets out our goals, and we are certain that we can rise to the challenge and effectively tackle some of the biggest questions we are currently facing in the world.”

Read more: MS Amlin Underwriting brings in claims head

Earlier this month, MS Amlin appointed Clare Constable as head of claims. Constable joins from HDI Global Specialty UK, where she was claims director.

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“Lloyd’s provides the ideal platform for Trium,” said Josh Ladeau, chief executive officer of Trium Cyber. “Alongside the obvious advantages of Lloyd’s licences and agency ratings, we will benefit from its global position as a specialty underwriting leader, thought leadership on cyber risk, appetite for best-in-breed cyber exposure, and the globally renowned Lloyd’s brand.”

Prior to Trium, Ladeau was the global head of cyber for Aspen. He is supported by Jeff Bores, as chief underwriting officer and active underwriter of syndicate 1322. The pair have a successful track record of underwriting leadership and strong historical performance in the evolving cyber class.

“The timing for the launch of Trium Cyber could not be better,” Ladeau added. “Demand for coverage is significant and while rates have risen materially in line with exposure, capacity remains severely constricted. Trium delivers to the market significant cyber underwriting experience and fresh capacity at a point of critical need.”

Lorraine Harfitt, chief executive officer of Asta, said Trium’s launch provides an opportunity to make “a focused play in the demanding cyber market.”

“Through Lloyd’s, in line with its best traditions, the Trium team along with Asta has been able to plan and launch an underwriting operation in just a few months, in response to clients’ urgent need for highly-rated specialist cover delivered by experts,” she said.

Alongside coverage, Trium Cyber is establishing the provision of complementary risk management advisory services and customized real-time loss mitigation services to drive rapid claims decisions and favourable loss outcomes.

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Specialty insurer Beazley has announced that it aims to raise £385 million by selling new shares in the business, equivalent to a 10% stake.

The insurer said it will raise funds to expand its cyber and specialty businesses. It will conduct the share placement through an accelerated book-building process, with JP Morgan and Numis as the joint bookrunners, according to Reuters.

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“My biggest concern is that lots of companies in this space, and even traditional healthcare companies that are transitioning to become a hybrid model, whereby they have some patients that are demanding some services be done electronically, they’re probably acutely unaware of the potential risks and exposures that they’re sleepwalking into,” Boyce said.

 “[Or they may be] potentially unaware that their traditional medical malpractice policy they’ve had for many, many years has now become slightly insufficient, because it isn’t now considering or determining all of these different threats that they’re potentially opening themselves up to.”

Boyce called for a “rethink and refresh” around the risks affecting healthcare businesses in 2022 and beyond, and what insurance needs to offer.

“Historically, we roughly know what the risks and exposures are when we know where the claims are going to emanate from, but the moment you layer in different types of technology to potentially diagnose patient conditions using AI, or if they’re offering a video consultation and they haven’t picked up on something, or they give a misdiagnosis – because they’ve been using technology to diagnose cancerous lesions – it can be really problematic,” Boyce said.

Read more: Digital health and wellness sector lack cover – insurer report

Telemedicine, or virtual appointments, has become commonplace in global healthcare settings, with its use buoyed by COVID-19 pandemic restrictions and consumer choice – the pandemic “probably fast forwarded the adoption of telehealth solutions by about 10 years,” according to Boyce.

The telehealth sector has continued to dominate CFC’s digital healthcare book, accounting for 53% of its portfolio in 2021.

In the UK, 99% of general practitioners now have access to video consultations, up from fewer than 10% in February 2020 before the country’s first COVID lockdown.

At least $17.8 billion has been raised by Canadian healthcare start-ups, according to PWC, with digital healthcare spending expected to more than double by 2030 and much interest focused on telehealth and virtual care services.

“The pandemic was a catalyst but not the sole driver for growth; we’re under no illusions that the pandemic has obviously helped – the fact that it showed telehealth in a completely different light,” Boyce said.

Global telehealth use settled at around 38 times higher than pre-pandemic, a July 2021 McKinsey study found.

Attitudes have changed to the tool since it became more commonplace and medical providers are expected to look to a hybrid model in the coming years.

“There was a lot of people that were hugely against it because they thought that there were huge limitations around telehealth – you couldn’t physically touch and feel the patient and, therefore, you probably couldn’t potentially give them the right diagnosis,” Boyce said.

“But what the pandemic has definitely shown is that actually, these sort of thoughts and comments that people had previously have been very much nullified – there hasn’t been a huge uptick in in misdiagnosis as a result of telehealth.”

Other emerging technologies being used by healthcare organisations include mobile health, remote patient monitoring solutions, and online fitness.

AI – representing just 4% of the MGA’s portfolio as of 2021 – has seen 32% growth, according to CFC.

The technology is being used in chatbots, which can help determine whether someone needs a face-to-face appointment, as well as increasingly in diagnostics, for example to analyse CT scans – the technology can analyse up to 20,000 images in a matter of minutes, according to Boyce.

“The [AI tools] that become more challenging are the ones that are a little bit more like a black box that are making diagnostic decisions direct to patients, as opposed to it being used as a secondary tool, and those are the most concerning areas for us,” Boyce said.

“Not all forms of AI are the same and often you don’t exactly know why the algorithm made that decision.”

Organisations must also deal with a regulation challenge where it comes to AI and telehealth as governments and regulators grapple with what good practice looks like and whether to keep deregulation that came in under COVID.

Intellectual property claims have also proved a challenge for digital healthcare businesses, and around 18% of CFC’s claims in the segment have stemmed from IP issues.

“There’s an absence of legal clarity around whether some forms of AI would be considered intellectual property, so an algorithm which was created by one party – if that potential developer leaves and goes to another organisation, and they create an algorithm that is very similar to it, have they breached their potential IP?” Boyce said.

“A lot of it is concerning because there’s very little in the way of affirmative coverage in any healthcare policy – any medical malpractice policy, you just wouldn’t see coverage for it.”

Read more: CFC builds London market healthcare insurance unit

CFC debuted its digital healthcare practice in the US five years ago and has seen growth across other markets since widening its reach.

Overall, the US accounted for 81% of its book in 2021, from 92% in 2019.

Canadian insureds’ proportion within the business grew from 2% in 2019, to 5% in 2021, with the UK swelling from 5% to 10% over the same period.

“In Canada, we’ve seen slightly slower adoption rates on the basis that it took a little bit of time to get government buy in, and that’s the same with the UK as well,” Boyce said. “They have relatively similar healthcare payer systems whereby in the UK, we have the NHS [National Health Service] but we’ve also got a private system.”

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But that was the opportunity afforded to David Carson (pictured above left), head underwriter, K2 CAT, and Richard Coello (pictured above right) MD of K2 Financial, when they set about establishing K2 International – the London market operation of San Diego-based K2 Insurance Services. Discussing how the venture came about, Coello noted that he and Carson were part of Pioneer Underwriting – which entered into a period of difficulty that saw any business units that had not closed down essentially being put up for sale.

“We met with a number of businesses who were interested in taking us on and one of those was K2,” he said. “And they seemed a really natural fit when we met up with them, we just clicked. At that point, they were an entirely US-based MGA platform, though some of their units in the US have London capacity already, and they were really interested in putting together a London platform.”

Those early discussions gave him and Carson a real sense of the opportunity that lay ahead to build something different. From the outset, the wider K2 group offered K2 International’s team a huge amount of independence, he said, and offered them the exciting counterbalance of feeling like a start-up again while also being backed by a highly respected $1.5 billion international brand.

“We took about 30 people out of Pioneer and formed K2 International,” Carson said. “So, on the one hand, the only thing that changed for everyone was the name but actually [our] whole culture has been completely flipped. We had the chance to start again and to create a great place to work. And I think the first success of our business was that we actually did the deal with K2 at all, given that it took place during lockdown and it wasn’t  easy to do a deal [in those conditions].”

It was an exciting leap to move across into the management sphere, Coello said, and while leading through the early days of the pandemic was quite daunting, two years later he is very proud of where the business stands today. The business has seen its profit margin spike from 4-5% to almost 30% driven by the reshaping of the business to a form that works for its team, without sacrificing service quality and now boasts a platform not just fit for purpose but primed for expansion.

It’s not about standing still for K2 International, however, he said, as its platform is ripe for the development opportunities offered by new teams and partnerships. K2 International is actively exploring new opportunities to go out and acquire businesses and teams in the UK and more broadly across Europe on a talent-first basis. The team is fundamentally agnostic about what class of business it’s looking to invest in, he said, but rather is looking to bring on board the right talent and then bolster them with a broad range of support services.

“We’ve taken the opportunity to completely rebuild our infrastructure, to install a new underwriting system and to reconstruct our data warehouse,” Carson said. “Because I think, one of the key USPs for K2 International is that we have best-in-class management of information. Our carriers keep on telling us that of all the MGAs with which they deal, K2 International is up there with the best.”

Having K2 International described as the “Swiss watch” of their portfolio of MGAs was a high point, Coello said, as it reflects the work that has been done by the entire team who have worked tirelessly to get its platform to where it is today. The whole team should be very proud of the work it has done, he said, as the platform is a joy to work on – and he wants to see new business units benefit from that.

Read more: K2 International names new underwriter

“What we would like to do now that we’ve got the infrastructure in place is to expand the number of underwriting teams we’ve got,” Carson said. “Of course, we were a bit stymied by COVID and the lockdowns but now it’s just a question of getting our brand out there – that brand of ‘underwriting with a view’… We are an underwriting company in the true sense of the word. Lots of companies claim to be underwriting companies but aren’t. We’re underwriting first – and second, third and fourth. That’s the key for us.”

The way a lot of MGAs are currently set up is that they are essentially just distributors, selling as much product as they can for their market, Coello said. And that is one way of building out an MGA but he and the team at K2 International firmly believe that MGAs should provide out-performance against the index of the class of business that they’re writing.

“What is the point of an MGA unless it is delivering a better result than those carriers could get for themselves? That, to me, is and should be the main purpose of an MGA,” he said. “And so for us, underwriting with a view encapsulates our fundamental core belief that we’re here to underwrite, risk select and building profitability for our carriers and everything else – the benefits to us and the income that flows successful underwriting and producing high-quality results for our carriers – everything else comes second to that.”

It’s quite an unusual offering across the MGA community, Coello said, but he and Carson have seen first-hand how this philosophy is resonating with entrepreneurial underwriters frustrated with the current norms of doing business in the market. There’s a strong ownership element to being part of K2, he added, as you own your business unit and therefore, you own your results.

“Not all MGAs are structured that way,” he said. “So you have to be pretty confident in joining a platform like K2 that you back yourself to be successful. Because if you don’t, you’re not going to get rewarded. You are in charge of your destiny.

“Some people will not be comfortable with that and won’t want to be part of something like that. But for us, that’s the way we’re structured. I think that’s what makes us attractive, to those underwriters who aspire to build their own businesses within a robust infrastructure. That’s our differentiator and one that we believe will be right for certain types of underwriters. And we want to talk to those types of underwriters.”

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The board of directors said it was fortunate to have Zaffino continue his leadership of AIG for “at least the next five years”, having witnessed first-hand his ability to turn his strategic visions into measurable success.

“Under Peter’s leadership, AIG has delivered on ambitious operational and financial objectives and is well-positioned to continue to drive long-term value for the company’s shareholders and other stakeholders,” said John Rice on behalf of the board in a statement from AIG.

Zaffino agreed that AIG’s team had managed a complex ‘turnaround’ of AIG’s performance over the last few years while he was at the helm, including a reported $168 million underwriting income from general insurance in the third quarter of 2022 compared to $20 million the previous year and the initial public offering (IPO) of Corebridge Financial, the holding company of AIG’s life and retirement business.

Zaffino had stressed that the organisation’s third-quarter (Q3) results were even more impressive when viewed in the context of the ‘challenging macro-economic environment’ and hurricane Ian, one of the largest insured-loss hurricanes in US history.

“We instilled a culture of underwriting and operating excellence, dramatically changed our risk tolerance, and transformed the way we work and collaborate across the organisation,” he said. “It is a privilege to lead AIG and our talented group of colleagues, and I look forward to continuing to build on our significant momentum on our journey to become a top performing company and market leader in everything we do.”

AIG provides property casualty insurance, life insurance, retirement solutions, and other financial services to customers across approximately 70 countries and jurisdictions.

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His four decades of experience with consulting organisations from every conceivable industry on the risks that customers face have imparted Altus’s Aaron Cain with a keen understanding of the pitfalls and perils of information without insight, data without analytics and knowledge without accessibility.

Find out more: Discover how Altus’ team can help you navigate today’s ever-shifting cyber landscape

As a cyber security consultant at Altus, Cain (pictured) sees first-hand how new areas of exposure are opening up for businesses all the time – and how the role of quality and accessible insights and advice has come into its own amid this tumultuous environment. The tendency with conversations around cyber, he said, is that they become very theoretical and people miss that cyber risk is not an abstract notion but something hardwired even into the physical infrastructure that makes up our workplaces.

“A big concern at the moment is having your infrastructure, in terms of your PCs, your accessible pieces etc internal,” he said. “You’ve got the boundary, you’ve got the shell, whether you’re going to use Cloud or whether you’re going to use something else – it’s still marginally within your control. However, what has now opened up in terms of new exposures, very specifically, is the role of operational technology.”

Read more: Staggering 90% of cyber risk uninsured

To get a full view of the security exposures they face, he said, businesses need to tap into the threat posed by the interconnectivity resulting from the Internet of Things infrastructure of a modern-day office. He cited an example, where in the past he scanned an office he was working in to determine its exposures and found that everything from the copier to the coffee machine was digitally transmitting information to its manufacturer.

“What’s happened is that what used to be a wall around the organisation has become a kind of mesh fishing net,” he said. “And isn’t even things as ludicrous as that, it’s simple things like the sensors that sit in a computer room that tell you whether or not you’re having a fire. They’re connected to the outside world to alert and talk to the fire department. But that connection runs through your network and the question becomes – is it properly segmented?”

Cain noted that the expansion of the operating environment of modern workplaces is a processing gap that then represents part of an attack vector where hackers can enter and do harm. And it’s a problem compounded by the changing nature of software as well. Back in the old monolithic days, he said, when he used to write software for IBM, everything he wrote was his and if he made an error, it was his error.

“Now, there’s more and more software being developed under open source,” he said. “And with open source, you get a lot faster generation of software, but you also then inherit other people’s problems. The Log4j is a classic example, it sat there for generations of software development and nobody really thought about it until somebody thought ‘hang on, I could exploit this’, only to find out that it’s in enterprises, instances across the world.”

No company is an island because of the interconnectivity of supply vectors, he said, as they’re all using software services and other solutions, often without understanding the risk that goes with that.

COVID-19 and the wholesale move to working from home that took place across organisations from every sector, opened up new paradigms, he said, as the natural perimeter of workplaces became extended. But it’s not just remote working, Bring Your Own Device and dynamic workload management (i.e. Virtual Machines, Containerisation) have also extended that perimeter, which means that consideration has to be given to:

1. Network protection via VPNs, Zero Trust
2. Device management protocols like InTune or other ways of checking for acceptable update levels on personal devices before access is allowed
3. The hosting of dynamically configurable infrastructure, local VMs/Containers onsite

“COVID impacted to an extent because companies are now assuming somebody else’s problems,” he said. “The reason being that previously when you dialled into the office, you might have had VPN etc but it was a limited time thing and you knew you had to be careful… So, now you’ve basically got two things, number one, you assume other people’s hygiene. And there are a lot of employees out there who still think it’s the company’s responsibility to protect them from cyber risk, and nothing to do with them.”

But using a company device – whether that’s a laptop, a tablet or a mobile – while working from home means that employees need to be more aware of their cyber hygiene, and act responsibly. This means ensuring that the device security is kept up to date, he said, and ensuring that should the device be lost, stolen or destroyed – the corporate data that remains on it can be restored or wiped.

Read more: “Long way to go” for global cyber insurance penetration

Going back to the idea that cyber risk needs to move out of the realm of the theoretical, he also highlighted the very physical cyber exposures that exist. These critical considerations include things as simple as where your PC screens are positioned, monitoring who has access to the interior and exterior of your building, and ensuring that WiFi extenders are secure.

“Moving to this paradigm, you inherit [these exposures],” he said. “Unfortunately, these are often not discussed when companies are providing policies, procedures, documentation, and employee training about cyber risk. Most of that documentation still assumes that we are an on-site monolithic company with everybody in the office all the time.”

Existing employee handbooks might discuss device security or VPNs, Cain said, but they need to move one step further – to emphasise a holistic perspective on what good cyber hygiene looks like for a remote or on-site worker.

It is in the provision of that broad, holistic overview of a business’s cyber risks and, perhaps more critically, of an accessible breakdown of how to mitigate those exposures where Altus really shines. He noted that it’s a common theme among some of the larger consultancies in the market that the reports they provide – while exceptional in terms of technical content – are being simplified without being made accessible.

Businesses are being charged extraordinary amounts of money for dense reports that they end up passing on to their cyber insurance provider, or in a worst-case scenario to the ICO, without ever reviewing them closely themselves. Also, he noted that the nature of how these reports are created – through intensive, technically worded question sets – also means that the recommendations they generate are sometimes not as accurate as they could be as the business in question doesn’t really understand what’s being asked much less how to answer it.

“Getting this information into a useable format is so important,” he said. “It comes back to the same thing the legal profession has gone through… What we’re doing is getting this information down to common, plain English – away from these acronym-strewn commentaries that make it quicker for us because it’s understandable internally but which don’t help the customer.

“That customer needs information, so policies need to take that next step forward and get away from that ‘this is what it said in the template package that I got for all my HR policies.’ Because are they fit for purpose? In this case, perhaps not.”

Having worked across a variety of consultancies, Cain has a lived experience of what true best practice looks like and he emphasised that he is very grateful to be working for Altus – with its two-decade strong emphasis on real-world programme delivery.

“They basically say that if you can’t put in a diagram then you haven’t simplified it enough,” he said. “Once you can get [that advisory report] to the point that will fit into that Altus programme delivery framework visual description then you’re there.”

One of the problems with standard reports is that these are broken down into three key levels. You have the board report, which is simplified. You have the technical report, which is comprehensive. And you have the justification report – which is essentially completely indecipherable to anybody who is not a cybersecurity expert. The justification report is one which gets given to the lawyers in the event of a breach, he said, to demonstrate what preventative actions have been taken.

“What Altus does is when we produce the package that goes to the customer, it is one seamless package,” he said. “The board can see as much or as little detail as they want. And the technical team see what the board is seeing and sees what’s going on in their environment. It is an absolutely fantastic way to present information in an understandable and  usable fashion.”

Find out more: Discover how Altus’ team can help you navigate today’s ever-shifting cyber landscape

With over four decades of experience in multiple market verticals, Aaron Cain has worked to integrate and secure business critical information flows across technology stacks ranging from legacy systems to cloud computing.

During years of independent consulting assignments based in the UK and EU, Aaron has developed the ability to frame complex technical and security concepts in concise and clear business terminology. Leveraging his experience with banking, hedge fund and insurance clients, Aaron will be working within Altus to develop specialised cyber security solutions and programmes for the financial services marketplace.

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Lockton Re, the global reinsurance business of the world’s largest privately held independent insurance broker, has announced the appointment of Ben Ryan as a senior broker in its non-marine retrocession and property specialty team in London.

“Ben is a great addition to our expanding global presence in the retrocession marketplace,” said Matt Foreman, head of non-marine retrocession and property specialty at Lockton Re. “His excellent experience broking and operating in the London, USA and Bermuda marketplaces will enhance our holistic offering and geographical reach to clients. Ben’s analytical approach and broad network will be a huge asset as we continue to grow our division and seek to bring innovative structures and solutions to clients. We are all excited to be working with Ben as we head into a very busy and complex renewal season at 1 January.”

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As an insider to the debate, it has been fascinating for Tim Hardcastle, CEO of the British insurtech INSTANDA to see the role and contribution of insurtech in the evolution of the insurance industry. He’s proud that INSTANDA can count itself among the early waves of companies championing the idea that there are different ways to think about technology and how it can be used to enable, streamline and modernise core insurance processes.

“Ultimately, this is about creating a better proposition and a better experience for customers,” he said. “And I think people in the industry knew that what they had, several years ago, was not as good as they should be, and they were frustrated. There was a lot of hype and expectation around the beginnings of insurtech [about] five years ago. You also saw the venture capital companies coming in and realising there were some good ideas and backing them up with funding.

“So, there was a lot of hype and expectation and sadly not all of the promises have been met from the insurtech contribution. But overriding that I think the most substantive thing and the most exciting thing to be talking about is the fact that a small but significant number of companies have grown through that period, have gained traction with many clients and organisations within insurance, and have made significant contributions to the progression of insurance.”

Insurance does what it does well, Hardcastle said, and insurtech has helped it do what it does much better. And with the dust settling from the hope, hype and excitement after the splash insurtech made when it entered the market, the market has seen some amazing success stories emerge over the last five years.

He noted that while there are still some great new companies coming forward, you can point to 10-20 companies globally that are doing a lot of really interesting things and are working with some major clients and partners to the benefit of the wider ecosystem.

These firms are delivering real value and have raised capital, he said, which is always a good indicator of market confidence in the proposition. INSTANDA itself recently announced the close of its latest $45 million fundraising – led by the growth equity investment firm Toscafund, with the participation of existing investor Dale Ventures.

“You can argue that the funding providers are a kind of lighthouse seeing out into the future and believing whether or not a company has the ability to ultimately make money for them,” he said. “And so [that where] you see companies like ours, that have raised significant amounts of equity and capital coming in… And [generally speaking], looking over the five years, there’s a lot to be really pleased about.

“Sadly, not every company has made it but, really positively, there is a significant number that have made it and have really got a lot more to offer. And that’s where I feel we are. We’ve got to a significant milestone with the recent fundraising, and we’ve got so much more to do. It’s now just about trying to find the hours in the day.”

Listen now: For crying out cloud: INSTANDA offers a practical guide for insurers on cloud computing

Looking across the market at the makeup of the firms that have succeeded over the last five years, Hardcastle highlighted that there are some “systemic success factors” that these firms share. These are the attributes required to transition a great idea into something that matches market demand and is scalable, he said – and one such factor that is especially relevant to the market right now is the question of performance.

It stands to reason that a successful insurtech must be able to have an impact on an insurance company’s performance, he said, whether that’s to do with the customer, cost-saving, data analytics or new insights. But this systemic risk factor also offers a keen insight into why it’s so difficult for insurtechs to make the move from ideas to scalable offerings.

Large insurance companies are looking for solutions that will impact their core business, he said, and the pressing challenge, especially for new entrants, is the characteristics that define the technology companies that these goliaths are comfortable partnering with for these solutions.

“One of those metrics is – are you financially stable?” he said. “So, you’re in this wonderful chicken and egg situation. Because to be financially stable, we actually have to grow and have some quite significant revenue, then we can get raise some money, and then we can have a balance sheet that looks amazing. Which is where [INSTANDA is] are right now.”

Hardcastle noted that the difficulty that arises for new firms looking to offer something like the end-to-end digital core platform that INSTANDA offers is that people do not want to use such platforms unless they know that the company is going to be around for a while and is financially secure.

It’s almost a contradiction in terms for these firms, he said. They’re being asked to have a significant impact on core operations but are not being given the opportunity to be used in a meaningful way before they have proved the full benefit of their proposition. Therein lies the challenge, and it’s the reason that a lot of companies with brilliant ideas haven’t made it – they simply haven’t been able to build the momentum necessary to get the funding required to make themselves appear a safe bet.

“You could argue that’s just a natural selection process and the way that business works,” he said. “But personally, I am of the view that there are ideas out there that have been really good and could have made a significant impact, but the industry hasn’t found a way to support them sufficiently well to get them to the place where they then would be financially secure. It’s just been left to the craft and the ability of the insurtech management teams to navigate that juxtaposition.

“We’re quite fortunate that we’re seasoned insurance veterans and so have been able to navigate that, probably better than most. But I do feel for some younger entrepreneurs who may haven’t got that industry experience and quite as many scars on their back, which means they might struggle in getting that transition from idea to scale. So, that’s one of the big systemic success factors, but in and of itself, it’s a fundamental challenge.”

Hardcastle highlighted that there is an inconsistency in expecting firms to deliver innovation while measuring their success against such traditional metrics. The industry needs to find a better way to engage and support smaller companies with great ideas, he said, for the benefit of themselves if nothing else.

“There are exceptions and companies that are quite progressive,” he said. “But at an industry level, I think it could do more and it wouldn’t cost it very much. And it would be so much more beneficial for the industry to nurture and develop these great ideas. So, we’re fortunate that we’re in a great position but I’m not being parochial or myopic here, I’m looking at the broader industry issues – and I think [the insurance industry] could do more.”

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The search for the UK’s 2023 Elite Women in insurance is still in progress. The special report, proudly supported by iCAN, Managing General Agents’ Association (MGAA), British Insurance Brokers Association (BIBA), DWF Law LLP, The Insurance Institute of Sussex and Chartered Insurance Institute (CII), gathers the industry’s outstanding women leaders who have achieved remarkable success in their careers.

Readers are invited to submit a nomination for a deserving colleague. Nominations are open to all women in the UK insurance industry from diverse backgrounds.

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