Out of office on ... ? Ant reviews this week's insurance news
Are you sitting comfortably?
As some insurance businesses look to leave office working behind them (at least for the short-term), others are looking to go back as soon as possible. This week’s insurance news shenanigans clearly show the market is, understandably, split on which direction to take going forward in the wake of the coronavirus pandemic.
Lloyd’s kicked off the office news cycle this week with details of its plans to re-open in September with conditions including the mandatory wearing of face coverings in the reception, lift lobbies, lifts, bathrooms, and of course, the coffee shop. Additionally, staff are advised to wear face coverings while walking around the Underwriting Room.
But as Lloyd’s looks for ways to get back, EC3 neighbour the Chartered Insurance Institute is mulling a move in the opposite direction. According to Insurance Post the institute, which sold its historic Aldermanbury HQ in 2017, is looking to exercise a break clause in its present rented home in Lombard Street.
The office or remote working debate is not just one that the larger businesses are having to wrestle with; it is one that is raging across the UK – and for that matter, globally. At Full Circle, we are fortunate to not be hamstrung by having a huge building where we might have to queue for hours to get into the ‘limited number of people at a time’ lift just to get to our desks. And so, commuting challenges aside, we are looking to return to our own office, in some form or another, in September. So for those in London, or visiting, then maybe see you there. Or not.
Longer times
Another aspect to the debate is, according to a report in CIR Magazine, that remote working has resulted in longer working hours in both the UK and US. Data compiled by NordVPN between April and August suggests the average working week has increased by 15 and 10 hours in the US and UK respectively -- more than one extra work week per month. The VPN use-based data also suggests that whilst the UK seems to start work an hour later than before the lockdown, people are skipping lunch breaks and working later.
Remote working has also impacted Aviva’s interim results. According to Insurance Times the insurer’s first quarter results showed that its regional broker partners contributed to a 25% improvement in the amount of GWP traded online. The insurer attributed these improvements to the move to working from home since the onset of the COVID-19 pandemic. It said lockdown had resulted in a 40% drop in incoming phone calls within the first week of working remotely, while its live chat facility received a third more enquiries over the same time frame, increasing to a 43% total overall.
Harder times ahead
Talking of productivity, the reinsurance market – which traditionally drives primary market rates - is also talking, increasingly robustly, about the return of a full hard market. According to the Insurance Insider, Swiss Re, Munich Re, Hannover Re and Scor have all reported differing levels of optimism on rate increase and growth opportunity in the wake of COVID-19.
Of particular note was an uncharacteristically bullish comment from Munich Re CEO Joachim Wenning who said: “Reinsurance markets are hardening as they haven't for a pretty long time. You have never heard me or us here in this room saying so before corona.” This was underlined by Scor Global P&C CEO Jean-Paul Conoscente who added: “We believe the hard market will be durable as it is based on a combination of factors that are unlikely to dissipate anytime soon.”
And talking of hard times, it’s time to end this article.
With thanks this week to: Insurance Day, Insurance Post, CIR, Insurance Times and Insurance Insider
Insurance Day
https://insuranceday.maritimeintelligence.informa.com/ID1131784/Lloyds-mandates-face-masks-in-all-public-areas
Insurance Post
https://www.postonline.co.uk/people/7670001/cii-hands-in-notice-for-its-london-office
Continuity Insurance & Risk
https://www.cirmagazine.com/cir/2020081307.php
Insurance Times
Insurance Insider
https://insuranceinsider.com/articles/135153/european-reinsurers-munich-re-bullish-but-swiss-re-cautious-on-growth