30% of Airmic Members surveyed in a new report believed that market conditions will deteriorate in 2023 on the back of a grueling renewal process and rate rises.
The new report, Pulse Survey: Insurance Market Conditions, highlighted some interesting views among Airmic’s Risk Management community.
A key issue raised by Airmic members in the survey, was that they wanted a greater willingness from the insurance market to designing policy coverage that fit their needs -a solution not a product.
Keith Jury, a Airmic Member, speaking to Strategic Risk, reinforced this view:
“The value of insurance is being discussed in the boardroom. We need to work as a industry to deliver that value by meaningful cover at a fair and sustainable price together with expert analytics, advice and knowledge.”
In their desire for alternatives to the traditional insurance mechanism, some risk managers are actively looking at captives to address their risk requirements.
Cyber was again raised as a significant issue, with many respondents saying that the excessive demands from reinsurers for more data and delays in delivering the terms of policy, is creating a situation of what Strategic Risk called, “too little cover at too much cost”.
ESG is still proving to be more than a buzzword, with many members keen to strengthen their ESG ratings, in line with Government policy but also with insurance policies too.
Airmic’s report cited a 2022 survey from Marsh, which said that 79% of insurers would offer incentives such as premium credits or more favourable terms and conditions to their insureds who demonstrate positive ESG metrics.