The role of the underwriter in the insurance industry is forever changing. Emerging technologies within the industry and developing risks throughout the market mean that underwriters need to continue to develop to stay on top of their game.
The second annual Underwriting Agencies CEO Survey, conducted by the Underwriting Agencies Council and Gratex
International, revealed that underwriters are preparing themselves for a competitive future, with broker relationships a key area of concern.
The anonymous survey of senior executives in both Australia and New Zealand saw shifting priorities, said Milan Neklapil, managing director of Gratex
“For the ﬁrst time, we can share the shifts in priorities and dynamics that shape our domestic markets. Working on a daily basis with underwriting agencies, I was not surprised to see some of the pressure points that demand proactive action with unprecedented speed and agility under ﬁ ercely increasing competition.”
- Number of UAC
members across Australia and New Zealand
- Number of respondents that report a GWP of $10m to $200m
members are responsible for over $2.5bn worth of premiums in Australia
- The biggest decreasing challenge in this year’s survey was identifying clear opportunities for operational cost reduction
Source: Underwriting Agencies Australia/New Zealand CEO Survey 2015
Fast, accurate online experience key for brokers
When asked how important each of the following is in the context of online dealings with underwriting agencies, brokers made it known that speed and accuracy are paramount
Broker loyalty, competition key challenges
Underwriters see the broker channel as one of their key challenges for success in the future as fierce competition in the industry is also turning heads
What are the key challenges that impact on your business today, or might do so in the future?
The underwriter of the future?
The survey finds three major emerging trends for the underwriting industry, which could help shape the future of businesses
Claims handling in insurer shift
- Speed – of service and time to market
- Collaboration – with broker channel and insurance partners
- New markets –diversification targeting new segments with new products
Underwriters are handling their own claims less and less, with a big rise in the number of organisations using a third-party claims service instead of their insurers
We process claims internally
We use our insurer’s claims facility
We use a third-party administrator