The insurance industry will have to work together to become more innovative both now and in the future, an Asia Pacific expert has said.
, Lloyd’s of London head of Asia Pacific, said that the industry will have to band together and innovate to meet changing client needs.
“I think it’s critical, next year and into the future, at an industry level, that we work together cohesively … to become more innovative,” Chaplin told Insurance Business.
“Innovation is about really addressing the changing risk landscape, meeting customer demand and consumer appetite, and producing new and innovative products which address certain terms, rather than concentrating purely on top line growth.”
Published last year, the Lloyd’s City Risk Index
detailed the changing landscape that risk businesses face throughout the region. Australasian cities have more than $88 billion at risk in terms of GDP with emerging risks such as cyber attack and human pandemic heading the areas of concern.
Globally, with US$342.79 billion of GDP at risk from emerging threats, Chaplin said that the industry not only has a responsibility to respond to the changing risk environment but also an obligation to create products which meet these emerging needs.
While cohesiveness and collaboration will be important for the industry, Chaplin also stressed that the ability for an insurer, underwriter or broker to differentiate themselves from the competition will still remain important. He added that individual businesses will also need to diversify in order to differentiate themselves from the pack.
“I think that’s certainly an industry responsibility – not just insurers and reinsurers, but brokers – and it also requires a dialogue with governments, with businesses and buyers,” he explained. “[They need to] sit down and look at what the future looks like, and how we can ensure that we are providing adequate sorts of protection.”
With Lloyd’s currently able to delegate underwriting authority to its coverholder network in Australia and New Zealand, as well as in Hong Kong and Singapore, Chaplin noted that the Australian industry is important for the entire Asia Pacific region as businesses such as Steadfast and Honan continue to spread their wings.
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