Technology provides greatest opportunity for reinsurance growth
The reinsurance sector’s use of technology is eyed as the biggest potential driver of growth in 2017, industry executives believe.
At the Property and Casualty Insurers Association of America’s 2016 meeting in Dallas, insurance and reinsurance executives were asked about the top opportunities and threats for their business in the year ahead.
The poll, carried out by
Guy Carpenter & Company, revealed that technology innovation is considered the top opportunity by 42 per cent with new products (25 per cent) and new geographical markets (13 per cent) completing the top 3.
“One of the most important findings we can take away from this year’s survey is the significant growth opportunity that technology innovation continues to bring to the (re)insurance industry,” said Tim Gardner, CEO of US Operations for Guy Carpenter. “The industry must be prepared to not only understand and manage the risks associated with these rapid advancements, but to also utilize these innovations to create actionable business intelligence and realize profitable growth opportunities.”
More than a third of the executives said that recession would be the greatest threat, followed closely by cyber. Technology innovation also made this list, at number three in the potential biggest threats to the industry.
Other issues that are firmly in the minds of industry leaders is the use of big data, likely to cause the biggest disruption in (re)insurance in the next five years. Regulatory change is seen as a key risk in 2017.
Insurer simplifies North American structure
Zurich has announced that it is changing the structure of its North American business, combining its Commercial Markets and Global Corporate businesses.
“Bringing together our expertise from our corporate and commercial businesses allows us to simplify our customer interaction and go-to-market approach,” said Mike Foley, Zurich CEO, North America.
Global head of corporate in North America, Paul Hogan will lead the combined unit, reporting to Foley and the global CEO of commercial insurance James Shea.
“Paul’s 30 years of industry experience, in addition to his Zurich experience leading our Global Corporate North America team and global leadership roles in Underwriting and Reinsurance, make him a great choice to lead this team,” Shea commented.
The change will be effective January 1, 2017, when head of commercial markets Craig Fundum will also become Chief Administrative Officer.
Lloyd’s Indian branch approved
Lloyd’s will open a branch office in India in 2017, following approval by the country’s regulators.
"This is a very significant day for Lloyd’s and we look forward to establishing a branch in Mumbai in 2017. I believe Lloyd’s can bring unique benefits to India by providing both protection and new opportunities for many domestic insurance businesses,” said Lloyd’s chair John Nelson.
He added that its opening will help diversify India’s reinsurance market and set it on the path to becoming a center for insurance and reinsurance.
The opening was announced during a UK government trade visit to India; the country is a potential key partner post-Brexit due to its colonial links.
