Buyers have key role in creating better products/market – Insurance Forum

Buyers were urged to play a proactive role in improving the way the insurance market works for them at the conference Insurance Forum. Whilst the five top company executives on the panel acknowledged serious shortcomings, they said Airmic members needed to be part of the solution. Mark Baylis reports.

Even by the standards of Airmic conferences, it was a senior and distinguished panel. The topics were all dear to members – market trends, product innovation, insurance efficacy/claims and law reform.

The five panellists all understood the frustration felt by customers in these areas, but also called on risk managers to play their part in finding solutions. As Airmic chief executive John Hurrell commented afterwards: “Buyers, underwriters and brokers can achieve much as long as they work towards a common goal. Take away any component of this ‘triangle’, and efforts are likely to be frustrated.”

The good news for members is that, with more capital coming into the industry, there is no sign of an end to the benign market conditions. Buyers were urged, nonetheless, to avoid complacency. Mark Weil of Marsh urged them to take the opportunity to de-risk their businesses. “You need to earn it to make it [current rates] sustainable,” he told the audience.

Mike McGavick of XL developed the theme, encouraging members to become “risk sherpas” for their firms. “It’s a great time to be in your jobs,” he said.

Should insurers have a chief innovation officer?

Everyone on the panel agreed that more innovation was needed, though the idea (from an audience member) of a chief innovation officer had little support. Admitting that even his own company could not purchase  the cyber-cover it wanted, Mike Hammond of Lockton called for more dialogue between customers, brokers and insurers – a theme that recurred throughout the rest of the debate. “The industry has a good history of working together on problems,” he said. “I do get the sense that the [cyber-] products that are out there are not fit for purpose.”

Describing innovation as a continuous process of improvement, Andreas Berger of Allianz backed the need for a collaborative approach. Referring to challenging areas such as Cyber, he stressed the importance of data. The amount of data was not the main issue, he stressed, but getting the right kind, adding that risk managers had vital internal roles to play in this respect.

The panel – from left to right

Mark Geoghegan, editor, Insurance Insider (chair)

Mark Weil, CEO Marsh

Mike Hammond, CEO Lockton Companies LLP

Andreas Berger, board member, Allianz Global Corporate and Specialty

Philippe Rocard, CEO Axa Corporate Solutions

Mike McGavick, CEO XL Group