Insurance market showing signs of more agile response to emerging risks, says industry panel

The insurance industry is at a tipping point where it is beginning to be more agile in response to emerging risks, according to a panel of insurers who urged their profession to focus solutions on risk mitigation rather than response. Those on the ‘Ask The Insurer’ panel at the British Insurance Brokers’ Association conference, also said the industry needs to boost diversity and inclusion if it wants to improve its reputation among the public and attract young talent. Tulsi Naidu, CEO of Zurich UK, said she has seen recent improvements from the insurance industry when it comes to innovation around emerging risks. “I think it is quite interesting that as an industry over the last six to nine months, I have seen us respond with greater agility to the change of pace we are seeing in the world around us. I think we are starting to see a tipping point where there is much more agility in response,” she told the audience this week. Adding: “My sense is we are now responding with greater agility and collaboration across the industry than we perhaps might have been even 18 months ago.” Fellow panellist Rob Townend, managing director of Aviva UK general insurance, said his industry needs to think more about delivering solutions based on risk mitigation rather than focusing on response. “At the Association of British Insurers, we talk about how we can move from risk response to risk prevention and mitigation. I think there is gaining momentum around prevention… we need to work on this together and think further ahead about the new risks that technologies might bring in,” he said. Mr Townend also stressed the importance of working with industry to find solutions to new and emerging risks. Following recent media reports on bad behaviour at Lloyd’s of London, Darren Rowe, head of UK business development at Allied World, said such behaviour is simply “not acceptable in any industry”. The insurance industry must change the way it is perceived if it wants to be respected in the same way as solicitors or accountants, he said. Jon Dye, chief executive of Allianz Insurance in the UK, suggested that some of the problems at Lloyd’s were caused by a lack of diversity that needs to be tackled across the insurance industry. “I think this gets us into the whole diversity and inclusion area, because some of what was described in that report is a result of the diversity imbalance in the market. We have been working on gender parity for a long time. In 2003, 20% of Allianz’s managers were female and today it is 35%. That is a lot of progress but we clearly have much further to go,” he said. Mr Dye noted that Allianz has a whole range of employee-run networks to support different communities in the business. It is vital that these are created and managed by employees themselves, he added. “They are the ones who know what is going on in their lives. I think the important thing for us is giving them the platform and framework so they can actually get the support they need,” he said. Ms Naidu said improving diversity is important for two reasons – defining the insurance industry and attracting new talent. “It is about the kind of industry we are. One of the things that has struck me is the extent to which when you have a gap and imbalances at more senior levels, people who don’t fit the mould feel powerless. I think we must be a welcoming place for anybody to work and feel confident and be able to contribute,” she said. “The future of our industry is based around the quality of talent we bring in… we have got to become a cool thing to do rather than working for a startup. Within that is the future and regeneration of our industry,” she added. Mr Townend said creating communities and role models within business is vital to encourage an inclusive and more diverse place of work. He pointed to Aviva’s recent decision to give staff equal maternity and paternity leave as an example of where companies can do more.

Insurance market showing signs of more agile response to emerging risks, says industry panel

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