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Insurance Business | 15 Apr 2015, 08:56 AM Agree 0
A leading international brokerage has warned underwriters and insurers that they need to innovate in order to survive in a key market.
  • Lulu | 15 Apr 2015, 10:02 AM Agree 0
    The trouble with innovation is that brokers struggle to sell these new products. Cyber is a good example. Cover under Cyber is far greater than just Privacy breaches, it is also a 1st party cover which financial lines brokers just can't seem to get their heads around. There are a variety of Cyber products in the market which are all different yet brokers seem to fail to understand the differences instead just focussing on price. Many brokers deal only in markets which do not have product differentiators so reading a wording and understanding differences is not what they do.
    I agree innovation is good and necessary, it is people who need to stop the 'same same' mentality and move with the times.
  • Phil | 15 Apr 2015, 03:14 PM Agree 0
    I do not know whether you are an UW or Intermediary Lulu but I take great exception to your comments that brokers can't seem to get their heads around it. Speaking with over 40 years experience in this industry, most in underwriting and senior management roles I cannot speak highly enough of the role brokers play and the extent to which brokers are required to ensure that not only their compliance obligations are up to the highest standard but that their insurance knowledge across a broad spectrum of products, Cyber included, is also to a very high standard. I have met very few brokers who would not fit this level of professionalism so be careful with your generalisations.
  • Pete | 15 Apr 2015, 04:01 PM Agree 0
    Well Phil, it appears you have been the lucky one in the last 40 years! My experience of over 35 years follows very closely to Lulu's experience in that brokers, no matter whether they are selling simple, complex or niche classes, tend to focus on price and are unable to explain, or unwilling to highlight, wording differences.
  • Phil | 15 Apr 2015, 04:13 PM Agree 0
    You have answered a question then - I guess you are both underwriters. Once again I would argue that both your points of view (yours Pete & Lulu's) are both generalisations and not reflective of the professionalism within the broking industry. Remember, without brokers these days UW's would have very little to do.
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