Disappointingly familiar and positively new
The past, present and future of the insurance world was on display this week in all its grim and innovative glory. Some of it continues to hark back to times that should have been consigned to history, some showed the reality of today’s market conditions, whilst other stories showed more positive signs for the future.
Starting with the less than favourable sight of Insurance Insider’s analysis of the UK insurance market’s gender pay gap. A marginal improvement still represented a 30% disparity between median gender pay, which compares unfavourably with a UK industry average of 13%. And as the publication pointed out, 2019 was hardly a stellar year for the insurance market in terms of behaviour in and around the workplace.
More disappointing news came from the Markerstudy group this week. Whilst the insurer wouldn’t confirm numbers, the press widely reported that it was making around 500 staff redundant out of a total of 3,000. It’s also believed a third of its workforce has already been furloughed. The provider has blamed the impact of Covid-19 for the job cuts which follow reports of staff being forced to take pay cuts.
Whilst the resilience of many of the UK and international insurance markets’ players continues to be tested by the near-global economic shutdown, the week was not all bad news.. Complaints to the Financial Ombudsman Service were down 23% over the course of 2019/20. Nearly a third of these complaints related to motor insurance policies, but this was still 25% less than the complaints received in 2018/19.
And in surely a sign of things to come, global insurer Direct Insurance Group announced this week that, following the coronavirus lockdown, the business is committing to a remote working policy for all staff permanently. The Group will allow all staff who want to work from home to continue to do so indefinitely. The insurer will continue to maintain all its offices located in the UK, Europe and North America and will remain headquartered in London. Staff will also have the option of working from home, from the office or a combination of both, based on business and personal needs. I’m all in favour of that.
And finally, with the Premier League set to return in front of empty stadiums (but with no doubt undiminished hype and hyperbole) insurers and brokers are set to play a key role. But will players have difficulty obtaining insurance or face premium hikes given that maintaining social distancing is near impossible in team sports? And if a player tests positive, will they be able to get cover or face exclusions? Issue like this will keep sports underwriters and brokers busy, and the public talking. Until the first big VAR howler anyway.
With thanks to our friends at the Insurance Insider, Insurance Business and Insurance Times.