Blanc looks all round and a positive outlook in this week's review of the news

Blanc looks all around

With the reputation-damaging High Court business interruption case continuing to simmer away in the background – the insurance trade media was able to focus on something more unifying this week - the full-on return of Amanda Blanc.

Whilst there was sympathy for outgoing Aviva CEO Maurice Tulloch who has stepped down for personal reasons, coverage of Amanda’s appointment as CEO from the likes of Insurance Post and Insurance Times was resoundingly positive - if not occasionally gushing.

Amanda is not only someone who knows and really gets broking and how to tackle corporate inertia, she is also someone who does not suffer fools gladly; she will look closely around the business and will certainly not shy away from any difficult decisions. And for an industry that is far from diverse, the return of one of the few women at the forefront of the profession to the topflight is welcome indeed. No doubt the Association of British Insurers – for whom she had to step down as chair when she left Zurich abruptly – will come knocking again, once she has got her distinctive shoes under the desk, with a view to bringing her back on board in some role.

Not cheers all round

As some in the market raised a socially distanced drink to celebrate, the insurtech community was seemingly set to be drowning its potential sorrows following a plea for more support.  In a stark warning UK Insurtech board chair Ed Leon Klinger told Insurance Insider that some insurtechs could cease trading in the next 6-12 months and that investor appetite could take over a year to return following the pandemic related disruption.

With many insurers, brokers and reinsurers having invested heavily in – at least in time if not financially – the insurtech sector, and others keen to acquire insurtechs to boost their own technical capabilities, any damage to the insurtech pipeline could slow down the market’s move to embrace digital. However, perhaps the more positive spin could be that it will lead to a weeding out of lots of potential deadwood and help concentrate focus and support on the better insurtechs.

Either way, a healthy insurtech sector is key if the insurance market is to move with the times and meet ever increasing customer and supplier expectations.

A positive outlook

Whilst insurtech has the potential to keep the industry moving forwards, there was some good news for the short-term outlook for traditional revenue in Swiss Re’s Sigma report as reported by Insurance Day. In essence, a v-shaped recovery is predicted, which would see premium volumes for non-life products bounce back and exceed pre-coronavirus levels in a matter of months.  And for those with an international outlook the future looks even more positive with emerging economies – particularly China – set to drive the insurance sector’s post-Covid-19 recovery, while premium volumes in emerging Asian countries will grow by one percent this year in spite of the pandemic.

Building a better future

And finally, talking of rebuilding, the insurance market was able to highlight its importance to the economy – and its socially responsible role – as it called for action to help drive a more sustainable future.  As Continuity Insurance & Risk reported this week, Flood Re is pushing for a ‘build back better’ approach and investment in flood-risk management strategies by the government as part of any Covid-19 recovery plan. The call followed revelations that the flood backstop provider made pay-outs of £160m in 2019/20 - ten times higher than the previous year.

In the long run the insurance market will play a key role in the ability of both individuals and businesses to recover economically from the coronavirus pandemic. And no matter what the outcome of the BI dispute over coverage, the country needs the market to be robust, to learn, to adapt and innovate in order to provide cover and protection for whatever risks and crisis lay ahead.

With thanks to:

Insurance Post - https://www.postonline.co.uk/commercial/7652261/briefing-in-ceo-amanda-blanc-aviva-finally-gets-its-woman\

Insurance Times - https://www.insurancetimes.co.uk/analysis/a-look-back-at-the-career-of-new-aviva-ceo-amanda-blanc/1433798.article

Insurance Insider - https://insuranceinsider.com/articles/134314/insurtech-board-chairman-warns-of-start-up-collapses

Insurance Day - https://insuranceday.maritimeintelligence.informa.com/ID1131488/Global-insurance-to-bounce-back-in-2021-Swiss-Re

Insurance Times: - https://www.insurancetimes.co.uk/news/tech-nation-and-insurtech-uk-call-on-insurance-leaders-to-support-insurtechs-post-pandemic/1433785.article

Continuity Insurance & Risk - https://www.cirmagazine.com/cir/2020070802.php