June 30, 2020

Latest news from the insurance market

The latest news from the insurance market provides interesting insight. Alongside information on the challenges being faced as a result of the current pandemic, there are also positive glimpses into the future. Certainly there is still much to celebrate for the insurance industry.

Given where we are, it probably makes sense to look first at the challenges being thrown at the market by COVID-19

Central issues from COVID-19

Investment in insurance

Now to the positive stuff. Here are the optimistic stories that caught our eye:

New market opportunities

The insurance market is constantly evolving. There have been numerous examples of innovation and expansion. This month was the turn of the independent broking firm Howdens.  Howden Group expands overseas with a licence operate in Belgium.

A couple of months ago, we shared our thoughts on The future of insuranceWe made the point that the the insurance market must be ready for all eventualities. That includes spotting new profitable opportunities.

Business reorganisation

The PIB group have attracted much media attention with their aggressive growth through acquisition. As a result,  the Organisation now plans to simplify the Group structure. A recent announcement confirmed PIB Group Ltd is uniting 12 brands to trade as PIB Insurance Brokers. However, this brand consolidation has not stopped PIB growth plans. They confirmed their ambitions for international expansion with the announcement that they have acquired Munich based Marx Re-insurance brokers.

Mergers and acquisitions

If anything highlights a positive future, it is the news from the insurance market of plenty of activity in the M & A space. Here is a flavour:

 Innovating for the future

  • Lloyds of London: Many column inches have been dedicated to the determination of Lloyds to update their working methods to meet the needs of the 21st In the latest move, Lloyd’s of London Charges ahead with electronic placement progress. Jennifer Rigby, Lloyd’s Chief Operating Officer, is confident this is a huge step forward. In her view, “This is an exciting new development that will enhance and simplify the flow of electronic placement data across the market…”
  • Changing risks: The Climate Financial Risk Forum (CFRF) was established in March 2019 to advance the Financial Industry response to the risks from climate change. While recognising the huge challenge from the current pandemic, the forum recognises that minimising future climate change risks requires action now. As a consequence, the CFRF have published a guide to help the financial industry address climate-related financial risks.

Another month of constant activity in the insurance market, with evidence of positive plans for the future. Which provides me with a bright note to end on.

Content has been prepared exclusively for Total Systems plc, a specialist provider of insurance systems developed for the digital insurance age.