LONDON--(BUSINESS WIRE)--
President of ACE European Group, Andrew Kendrick, today set out his
vision for the future of the European insurance industry as he addressed
delegates in a keynote speech to The Economist Insurance Summit in
London.
President of ACE European Group, Andrew Kendrick (Photo: Business Wire)
Speaking to almost 200 insurance industry chief executives and senior
management, Andrew Kendrick set out a five-point strategy for the
industry to support its customers through economic recovery, while
continuing to navigate challenging conditions in which competition has
intensified, new premium growth remains difficult and lower investment
returns have impacted industry returns. The five points are:
Sustainable underwriting
“The easy strategy for attracting new business in the current market
conditions is to reduce underwriting discipline. But history proves that
this is financial suicide. This time will be no different. Insurers need
to understand that lower investment returns have reinforced the need for
underwriting discipline as the only route to long-term performance. They
also need to take more accountability and responsibility for their own
pricing decisions.”
Data discipline
“Underwriting discipline has never been more important in driving
insurer returns. But to this we must now add a new mantra if we
are going to capture the opportunities of our information-rich world:
data discipline. Insurers need to make transformational changes about
how information is captured, analysed and applied. There are ways of
tackling those changes in a manageable way which could revolutionise our
industry as we approach 2020.”
Investment in emerging risk solutions
“The crisis has elevated the importance of risk management. Many risk
managers are now being asked to provide greater insight into
non-traditional areas and demand for solutions for emerging risks is
likely to increase as the business agenda turns to investment. Our
Emerging Risks Barometer highlights four areas where at least 40% of UK
businesses expect the financial impact to rise in the next two years.
These are environmental, cyber, D&O and supply chain risk. All are areas
in which the insurance industry should invest further as we approach
2020.”
An international outlook
“I believe that tomorrow’s successful insurers will be those who can
demonstrate that they follow their customers on their increasingly
international journey. Managing risk across borders is increasingly
important for companies of all sizes. Working with clients to navigate
this and to develop robust multinational insurance programmes is rarely
simple. But it is vital if the insurance industry is to support its
customers in their recovery.”
A client-centric approach
“The insurance industry has avoided the egregious excesses seen
elsewhere in financial services. But for too long we have taken our
customers for granted. We need to get in tune again with what they
expect – and invest in service and relationships. We need to make things
more transparent. And we need to communicate more – and do it better.”
In conclusion, Andrew Kendrick said:
“As we support our customers through the recovery and the new G20-led
world of trade, there is a real sweet spot of opportunity for insurers
and brokers who can add value on emerging and multinational risk
solutions.”
“And, as we consider the rehabilitation of UK financial services, let’s
not forget our own opportunity: to refocus on service and transparency.
If we can achieve that, I believe that by 2020, insurance will be better
recognised as the honourable and client-focused industry that it is and
must continue to be.”
You can read Andrew Kendrick’s speech here.
-ENDS-
About ACE GROUP:
ACE Group is one of the world’s largest multiline property and casualty
insurers. With operations in 54 countries, ACE provides commercial and
personal property and casualty insurance, personal accident and
supplemental health insurance, reinsurance and life insurance to a
diverse group of clients. ACE Limited, the parent company of the ACE
Group, is listed on the New York Stock Exchange (NYSE: ACE) and is a
component of the S&P 500 index.
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Source: ACE