Airmic and IUA to tackle innovation

Airmic and the International Underwriting Association (IUA) have announced plans to work together to tackle the need for more effective product innovation in the insurance industry.

A lack of cover for emerging risks such as cyber and reputation has often been cited by Airmic members as a top concern.  However, take up of new products has been relatively low – for example, less than 10% of companies buy cyber insurance, despite an increase in product offering.

Airmic has been urging the insurance industry to do more to provide innovative and relevant solutions, or risk losing their relevance to 21st century businesses. The IUA represents the company sector of the London insurance market, including several of the top providers of cover to Airmic members.

The association has strongly welcomed the chance to work more closely with the market. John Hurrell, chief executive, said: "Airmic members are increasingly being kept wake at night by emerging risks where currently there are no or inadequate insurance solutions. These are often difficult risk areas for potential underwriters as there is a lack of relevant historical data and exposures are uncertain.

“We therefore welcome plans for a more co-ordinated market response to looking at these risks and a willingness for underwriters to work with potential policyholders to develop appropriate and effective responses to these growing needs.  Airmic members will be very pleased to participate."

Dave Matcham, the chief executive of the IUA, said the cooperation is part of a wider plan to make the London market a more attractive destination for international insurance business. “A key part of this focus is attracting the best talent to the market so that it can continue to evolve and develop product offerings in response to changing business needs.

“But innovation rarely happens in isolation. While individual companies are, of course, developing their own new products, such is the likely scale of demand for coverage of emerging risks like cyber, a wider market response also seems worthwhile.”

Talks between the two bodies are in early stages and further details of the collaboration will be announced later in the year.