The Chartered Insurance Institute’s (CII) Underwriting Faculty has released its Underwriter of the Future report six years on from its first edition.
The report, established with Oliver Wyman, offers a barometer on what is happening in underwriting and what it means for the future. Some of its key findings include:
- Change in SME insurance: There has been progress towards both online and direct distribution in relation to small and micro risks, while at the larger end person-to-person still dominates.
- Change in customer demands: There has been a clear focus on more price transparency and faster turnaround times – many insurers have had to significantly adjust their propositions and operating models accordingly.
- Supply pressures: There is an abundance of capital putting the traditional industry under both competitive and cost pressure. The usual broker-insurer-reinsurer value chain is reported to be “fragmenting” and innovative insurers are showing a willingness to separate capital provision from underwriting and risk selection.
“This excellent piece of research shows the different strategies open to insurers, and how this can affect demand for skills,” said Matthew Connell, director of policy and public affairs at the CII. “It is a useful guide for people planning their training and development and provides invaluable market context for professionals shaping their careers. As a profession we need to be looking at the changes affecting our sector in order to continue being relevant to the needs of our consumers and clients.”
