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- London Market under threat says LMG/Boston Consulting global research report
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29th November 2015
Newslink Trends: Weekly Global Insurance Analysis
Trend
This week, Swiss Re published its Global Insurance Review 2015 and outlook for 2016/17. Marsh highlighted cyber risks in its Global Insurance Market Quarterly Briefing, London Market players were warned that the vast majority of UK businesses were unprepared for cyber threats, whilst an Xchanging Conference poll indicated that almost half of the delegates felt they were underprepared for a major cyber attack. Climate Wise, in its annual review, prior to the Climate Summit in Paris, said that positive progress continues to be made. The London Market Group(LMG) and Deloitte launched the first London Market survey to identify existing skill gaps and future talent requirements. The Chinese insurance regulator(CIRC) and potential mutual insurers attended an International Forum on Operations Experience of Mutual Insurance in Shanghai with speakers from the International Cooperative and Mutual Insurance Federation(ICMIF) playing a prominent part.
The regulatory scene warmed up with Bermuda Solvency II equivalence being adopted by the EC, and co-operation on reinsurance and other matters moving a step forward with the US. The International Association of Insurance Supervisors(IAIS) began public consultations on G-SIIs and NTNI activities and products. The Financial Conduct Authority(FCA) launched a Call for Inputs on the use of Big Data in the UK retail general insurance market.
A survey highlighted the growth of digital health tools and their potential impact on the health insurance market, and a Future Thinking study compared UK personal lines insurers against other providers across a range of services, highlighting the infrequent customer touchpoint as a major factor in the insurers' high renewal churn.
The Chancellor of the Exchequer's Autumn Statement included measures aiming to cut down the fraudulent element of small whiplash claims, emphasizing treatment alongside other changes-it was met with a positive reaction from the Association of British Insurers(ABI) and the Automobile Association(AA) but criticism from The Law Society.
Allianz announced a 3-year plan and an online insurance joint venture in China. Ergo is to sell its Italian subsidiary to Cinven, and the Covea Group was upgraded by Standard & Poor's. Towergate announced negative EBITDA for the nine months but new ceo David Ross was optimistic. Crawford simplified its structure, Asia Capital Re opened a representative office in Shanghai, Randall & Quilter is to acquire in Malta, and both Bupa and Nippon Life are to raise their investment in Indian joint ventures to the new foreign insurer maximum limit of 49%, as expected. Barbican Managing Agency received Lloyd's approval to manage Arcus Syndicate 1856, Novae Group and Securis launched a new SPS, and Fosun announced it had completed the acquisition of all the interests in Ironshore.
A new chairman of Lloyd's Market Association(LMA) was elected, Tokio Marine Kiln appointed a head of innovation, ACE announced European management for the new Chubb Group, Markel appointed co-ceos, and the International Insurance Society(IIS) revealed three candidates for its 2016 Hall of Fame.
Articles on the above topics are included in those added to the Insurance Newslink and Financial Newslink global database service on Wednesday and today at www.onlystrategic.com