ACE’s Kendrick lays out client centric 2020 insurance model vision

Mr Kendrick set out his vision for the future of the European insurance industry during a keynote speech at The Economist Insurance Summit in London last week. Mr Kendrick told delegates that his five-point strategy would allow the insurance industry to support its customers through economic recovery, while insurers continue to navigate challenging conditions in which competition has intensified, new premium growth remains difficult and lower investment returns have impacted industry returns. In his Insurance 2020-Tomorrow's Insurance Model speech, Mr Kendrick said as the risk transfer industry supports its customers through the economic 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 through emerging and multinational risk solutions.hide"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," he argued. He believes that environmental, cyber, D&O and supply chain risk are all areas in which the insurance industry should invest further as 2020 approaches. Mr Kendrick also suggested that tomorrow's successful insurers will follow 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," he explained. Data discipline must become the new mantra for insurers looking to make the most of the opportunities afforded by today's information-rich world, continued Mr Kendrick. Adding: "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." Insurers must remember that sustainable underwriting is needed to deliver long-term and sustainable risk transfer solutions, continued Mr Kendrick. "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," he said. Perhaps above all else insurers must place their clients at the centre of their business in order to thrive. Mr Kendrick, for one, believes that the insurance industry has taken its customers for granted for too long. "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," he said.

ACE’s Kendrick lays out client centric 2020 insurance model vision

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