The re/insurance sectors have been warned not to repeat the mistakes of the past as the industry continues to look at its strategy to cope with the world of big data and connected risks.
Speaking at the company’s conference in Nottingham, Suki Basi, Managing Director of re/insurance risk technology firm Russell Group said that he is increasingly seeing underwriters revert to past behaviours.
“We live in a world of ever connected risk,” he said. “However, while the level of data available has grown significantly we are seeing underwriters looking to hoard data as they see it as a competitive advantage.”
Mr Basi said such a strategy was harming the ability of the industry to meet the needs of its major corporate clients which have global footprints and with it global risk profiles.
“Increasingly insurance data and underwriting will need to be realigned to the corporate’s perspective,” he added. “If we can get access to all the data our clients possess the industry will have the ability to analyse each and every risk and as such better offer the correct cover.”
“Firms which have international operations need to establish not only where its exposures sit compared with their peers but also within their supply chain. It is amazing when you look at the complexity of the risks that companies face in the modern world.”
Mr Basi added that risk management within firms is still struggling to be recognised in the board room.
“I was shocked how detached from the C suite the buying of insurance is,” he added.
“It needs to change, it will change but it will take time.”