Insurers need to invest more in co-creating products with brokers, particularly in the cyber sector, in order to help diffuse confusion among UK businesses.
The suggestion came from Anthony Baldwin, CEO of AIG
UK, who said at the recent Economist Insurance Summit in London that insurance products need to be more relevant.
“We need to be able to speak to the clients and say, ‘look you have cyber risk, it’s a business risk for you, and this is something you can avoid’.
“But it’s not something that can be avoided just with the right advice,” Baldwin said. “We need to be able to make the products more relevant and we need to think about co-creating new products [with brokers].”
Baldwin said one of the frustrations he hears from many clients is that there’s cyber products out there, but the products differ significantly from broker to broker. “So we need to start co-creating much more and show that our interests with our clients are 100% aligned.”
In terms of adoption, Baldwin said that cyber risk is generating a lot of interest but there is a very low level of take up, although that “is beginning to turn.”