IRL Preview – May 2019

IRL Preview – May 2019

Subscribe to the Insurance Research Letter here. Each issue includes topical articles written by experts that you won’t read anywhere else. Stay current with major developments with Global Briefs; monthly Synopsis of insurer and broker news; and the popular Back Page with all sorts of non-insurance fun and interesting subjects.

Ryan Specialty Group and Nationwide launch a new Bermudian reinsurer, Geneva Re

Pat Ryan and Mike O’Halleran have teamed up again to form a new Bermuda reinsurer with Nationwide – each company with a 50 percent share. The time is ripe for new Bermuda reinsurers. Read more on page 10.

Why the need for new Bermuda Reinsurance Companies: The Future of reinsurance Solutions

Andy Barile, having been a buyer of reinsurance, a seller of reinsurance, and a reinsurance broker, he understands the business of reinsurance from many different aspects. Read why Andy thinks reinsurers need to provide expert reinsurance solutions on page 11.

The Continuing Evolution of Cyber Insurance Coverages

Read why cyber insurance policies are continually being updated to provide new and innovative coverages in light of today’s new and increasing cyber risks. Judy Selby, a true expert in the field, highlights some of the latest cyber coverage offerings on page 11.

The New Normal in Claims Management

In just a few short years, big data and analytics have fundamentally shifted the way claims departments litigate claims. Read how these technologies changing how experts assess risk in the courtroom on page 11.

Brexit is boring

After the much reported rhetoric in the House of Commons where Britain’s worst prime minister ever has suffered humiliation after humiliation in her attempts to get her deal through parliament, it has gone relatively quiet on the Brexit front. Even the frequent calls for Mrs May to resign don’t always reach the dailies’ headlines. Read an insiders view of what’s going on now on page 15.

IRL Preview – April 2019

IRL Preview – April 2019

 

Subscribe to the Insurance Research Letter here. Each issue has topical articles written by experts that you won’t read anywhere else. Stay current with major developments with our Global Briefs; monthly Synopsis of insurer and broker news; and the popular Back Page with all sorts of non-insurance fun and interesting subjects.

Highlights

Uncle Sam Onboards Social Media Surveillance “Bigly”

On March 10, 2019, The New York Times published an article titled, “On Disability and on Facebook? Uncle Sam Wants to Watch What You Post,” and within minutes my inbox was blowing up with friends and colleagues forwarding the article to me with all-caps notes along the lines of, “OMG DID YOU SEE THIS?” It’s exciting news for insurers and self-insureds alike. Read more on page 10

The 21st Century Spy

In the 1980’s, taking a camera into the bathroom would raise a lot of eyebrows, but today we knowingly and voluntarily bring two cameras (front and face) along with a microphone into our most intimate settings, unaware of who maybe listening or watching. Most do not realize that technology we pay for (personal assistants, security cameras, cellular phones, conferencing tools) could be unknowingly creating significant organizational or personal liability. Read more on page 11

Aon’s New Ventures Group accelerates the firm’s Intellectual Property Solutions

On March 12, 2019 Aon announced its commitment to further develop its innovation portfolio and deliver new sources of value to clients through the New Ventures Group (NVG).  The NVG is now formally sponsoring the firm’s Intellectual Property Solutions (IPS) to help manage clients’ intangible assets and expand the marketplace. Read how Aon plans to march into the C-Suite on page 11

 Willis Towers Watson to showcase The Intelligent Frontier at RIMS 2019

Willis Towers Watson has announced its program for the upcoming RIMS 2019 Annual Conference and Exhibition in Boston, Massachusetts; April 28 to May 1. Read what the company is featuring during the conference and what educational sessions are being offered on page 12

Moving Insurance Teams – Spring Fever

Spring is the traditional time when broking and underwriting Teams seek to move. The major renewal season is over, and bonuses for the previous year paid. Over the years, the London insurance broking market has witnessed the movement of many broking Teams at this time. Read how to carefully plan and execute a team move on page 13

IRL Preview – March 2019

IRL Preview – March 2019

 

Subscribe to the Insurance Research Letter here. Each issue has topical articles written by experts that you won’t read anywhere else. Stay current with major developments with our Global Briefs; monthly Synopsis of insurer and broker news; and the popular Back Page with all sorts of non-insurance fun and interesting subjects.

Highlights

Britain’s Ongoing National Humiliation
Britain’s Ongoing National Humiliation is Prime Minister Theresa May. Throughout the Brexit project she has shown herself to be an ineffective salesman, a poor public speaker, deaf to advice, terrible at delegating and lousy at appointing Brexit negotiators. The situation is a mess. Following on from David Cameron’s miserable pleas to the European Union for changes to the rules for Britain, the country lurched into the Referendum in 2016. Since then the EU has… read on page 10

IRL: Click on this link for a hysterical SNL-type look at Brexit for Americans

Attractive Target Group
The Rising Middle Class in China and its Implications for Insurance and Reinsurance
Middle-Class Society China: Insurers and Reinsurers are facing big Opportunities and Challenges
China has become a superpower economy in the world. The industrialization and increased domestic and international trades have supplied large numbers of people with a disposable income with which they can be considered as a middle class. The implications of the rising middle class are tremendous, as it will dictate the directions of companies’ success or failure. Knowing the huge and attractive customer base is an advantage when offering them insurance products and services. The insurance and reinsurance markets must grow with this opportunity and minimize the risks that have recently emerged. The following implications…read on page 11

Leveraging the Power of Networks
While the Japanese insurance market is currently still stable and profitable, it offers only limited growth opportunities as the shrinking population negatively affects premium income in almost all insurance classes. While expansion into new intangible risk classes such as cyber insurance or digitalization initiatives still offer leeway for potential domestic growth within Japan, there is no doubt that the future of Japanese insurers lies abroad such as in growth markets in Asia-Pacific where premium growth rates…read on page 15

Brexit – IRL, February 2019

Brexit – IRL, February 2019

* One Star Missing

A Brexit of illusions

By David Worsfold

Brexit is everywhere. In the UK you cannot escape from it. Brexit dominates the news, the whole political system is consumed by it, it is top of boardroom agendas and it is the most frequent topic of conversation wherever you go. Even though some families and friends try to avoid discussing it – for fear of falling out – Brexit still looms large as the grim elephant stalking the room.

There is an increasing sense of desperation – or is it despair – as the country hurtles towards the EU exit door. Endless scenarios are mapped out which will either see the UK propelled firmly through that door on 29 March, find the departure delayed for months while something – no-one knows what – is renegotiated, or even see Brexit cancelled. This latter scenario is looking increasingly unlikely.

Some of the scenarios have entered the realms of fantasy, and our politicians are not immune on that count.

In one night at the end of January they managed to vote to send Prime Minister Theresa May back to the negotiating table with a mandate to renegotiate one part – the Irish border – of an agreement that MPs (Members of Parliament) rejected by an unprecedented 2 to 1 majority just two weeks earlier. That same night they narrowly voted to against a no-deal Brexit. Yet, the chances of persuading the EU to change an agreement it took months to negotiate are not promising, which means the UK Parliament either accepts the original deal or leaves on 29 March with no deal. They voted for an illusion, not a reality.

The day after that vote, British businesses, including the insurance and financial services sector, were unanimous in saying they were re-doubling their planning for a hard – no deal – Brexit on 29 March. They could see what the politicians were blind to: by voting against May’s original deal, against a no deal but for a renegotiation that the EU has already rejected, they had actually made a no deal Brexit more likely.

The insurance industry, along with the entire valuable service sector, has never been part of Prime Minister May’s deal. 80 percent of UK GDP is excluded from it.

What the abandoned service industries have been hoping for is a two to three year transition period following Brexit during which a new relationship with the EU can be worked out. For them all the talk about trading on World Trade Organisation terms is another irrelevant illusion. The WTO is just about tariffs while trading with the EU is about regulatory alignment.

If the UK insurance industry wants to maintain a smooth relationship with its European clients two priorities have to be addressed. Firms can re-domicile large parts of their business into new EU subsidiaries and many are already doing this with Dublin and Luxembourg as the top destinations. For those who need to maintain cross-border relationships they also need UK regulations to stay in line with European regulations. Their hope was that this could be worked out during the transition period: a hard Brexit with no deal jeopardises that.

The alarm bells started ringing even louder at the end of January when the powerful Treasury Select Committee of MPs announced that it was going to look at how UK financial regulations could be varied after Brexit.

Launching the inquiry, Nicky Morgan MP, chair of the Treasury Committee, said: “London is the world’s premier financial centre, and many of us want to keep it that way.

“Brexit will have a significant and long-lasting impact on the financial services sector, including the insurance, retail banking and asset management sectors, in the UK, the EU, and potentially the rest of the world.

“The UK may converge, seek equivalence, or diverge from the EU. As part of our new inquiry, the Treasury Committee will examine the risks and rewards of each of these choices.

“We’ll also explore the opportunities outside Brexit, such as fintech, on which we should be capitalising.

“After we’ve taken evidence from industry, regulators, ministers and officials, we’ll make a series of recommendations to the Government and regulators about what it should prioritise in negotiations with the EU and the rest of the world.

“We’ll also seek to conclude whether it would be in the long-term interests of the UK to align closely with EU financial rules, or to forgo financial services trade with the EU and pursue trade with other third countries.”

That last sentence is the sting in the tail. It is precisely what insurance company bosses fear, the illusion that by deviating from the narrow path of equivalence with the EU there is a new world of yet untapped trading relationships that will be opened up.

The crisis over Brexit is unprecedented and has been made worse by the woeful inadequacy of British constitutional precedent to cope with it. The UK is a representative, Parliamentary democracy but the referendum was an exercise in direct democracy. That put Parliament on a collision course with the people. Our unwritten constitution and the arcane precedent-based rules of Parliamentary procedure have both been exposed as not fit for purpose. That, above all, is why it is so hard to predict where we will be at 11pm GMT on Friday 29 March 2019.

IRL Preview – February 2019, Brexit articles

IRL Preview – February 2019, Brexit articles

Subscribe to the Insurance Research Letter here. Each issue has topical articles written by experts that you won’t read anywhere else. Stay current with major developments with our Global Briefs; monthly Synopsis of insurer and broker news; and our popular Back Page with all sorts of non-insurance fun and interesting subjects.

IRL February 2019 Highlights

The UK’s problem with Brexit is Theresa May herself

Having suffered two humiliating defeats in Parliament, the UK prime minister is displaying a suicidal inability to learn from all the signs that she will be unable to deliver a Brexit plan which both the EU and the UK can agree upon before the 29th March. Read more on page 12

The Great Online Data Scramble

We used to think that databases would solve all of our problems by keeping information about people organized and categorized. And for a while it did work that way—paper files became digitized, scattered data collated, and duplicate files were slowly weeded out until… read on page 10

Is insurance the new frontline of activism?

With some global insurance companies publically backing populist campaigns, we explore whether the insurance industry has become the new front line of ethical business protestation.

In the past, passionate lobbyists would use shareholder meetings to try to protest against a company’s direction. More crudely perhaps they would even camp out at a corporate headquarters with chants and placards in an attempt to draw media attention to their cause. In recent years, however, a new target has emerged for the protester. The insurer. Read more on page 11

A Brexit of illusions

Brexit is everywhere. In the UK you cannot escape from it. Brexit dominates the news, the whole political system is consumed by it, it is top of boardroom agendas and it is the most frequent topic of conversation wherever you go. Even though some families and friends try to avoid discussing it – for fear of falling out – Brexit still looms large as the grim elephant stalking the room. Read more on page 12

IRL Preview – January 2019

IRL Preview – January 2019

To learn more about subscribing to the Insurance Research Letter email us. Every issue has topical articles written by industry experts that you won’t read anywhere else. In addition, you will stay current with major developments around the world with Global Briefs; a monthly Synopsis of insurer and broker news; and our acclaimed Back Page with all sorts of non-insurance fun and interesting subjects.

IRL January 2019 Highlights

What DARPA Technologies can offer the Insurance Industry – In the last decade, many of the giant humming brains of technology have migrated to government projects for the Defense Advanced Research Projects Agency (DARPA) because the work there has been super fun – their instructions were simply “build whatever massive tool you want to, and then turn it over to our analysts to use or not use as they choose.” Page 10

2018 – A CrisisRisk™ Year in Review – In reviewing 2018 critical incidents, critical events, disasters, and crises, it is clear that the ability to identify and control those events before escalation into a crisis is essential. Understanding each event’s CrisisRisk™ potential, the preparation required, and the responses needed, empowers leadership. Page 10

Globalization has not reached its peak – An interview with Coface CEO Xavier Durand who speaks about the impact of sanctions and trade wars on credit insurers on page 13

Read about the Consequences of Brexit Deal Rejection for U.K. Insurance Market on page 13