Emma Hughes reviews the News
This week we spoke to Emma Hughes, the new editor of Insurance Post, to get her take on the past week in insurance news.
1.What has been the stand-out story for you in the insurance market this week and why?
For an industry deluged with data it was kind of depressing that the Financial Conduct Authority found many smaller insurance firms had few or no records to prove they met the pricing requirements introduced at the start of 2022. When the regulator came calling small firms failed to produce paperwork or data about the approach to motor insurance pricing. When the FCA delved deeper into the smaller firms pricing practices, the regulator found they were compliant with the dual-pricing ban. The FCA has simply recommended they up their game and follow good practice when it comes to record keeping.
2. Who is your insurance personality of the week and why?
Tom Murphy, founder of Machine Learning Programs, should be applauded for calling on the Financial Conduct Authority to tackle the “shockingly bad” use of data in insurance. He said: “One thing that concerns me is the number of people who are existing programmers or underwriters who have done a quick six-week course on data science, installed a couple of tools and now can go out and double their salary by claiming they are data science specialists in the industry. I think that is somewhere the FCA needs to step in and make it clear there is a level of capacity and expertise that should be required before you are allowed to work on these areas.”
3. Which news this week do you think will have the most long-term impact on the insurance profession?
Insurers are picking up the pace of the race to net-zero. RSA launched a low-carbon underwriting policy and committed to achieving an underwriting portfolio for energy production that is over 75% low carbon by 2030. The move marks a leap forward from the 2019 goals the insurer set itself. With research by insurance broker Howden and specialty insurance and re-insurance business Fidelis showing higher ESG ratings lead to better underwriting performance, I expect others will follow RSA’s lead and step-up their green commitments sooner rather than later.
4. If you could interview anyone from the world of insurance and they had to answer your question 100% truthfully, who would it be and what would you ask them?
Nikhil Rathi, chief executive of the FCA. I want to know what he thinks the industry should be doing better at.
5. If you could wave a magic wand and change one thing about our industry, what would it be?
Just because you did something in the past does not mean you should do it the same way in the future. Insurers need to reimagine their operating models, understand the expectations of consumers today and become truly customer-centric if they are to achieve profitable growth in the future.
6. As we approach Christmas, what has been your highlight in 2022?
Becoming the 21st editor of Insurance Post. I have been overwhelmed with how welcoming the industry has been and the amount of interest in one of the 182-year-old publication’s new features for 2023 – Diary of an Insurer. As the former Communications Director of the Chartered Insurance Institute, I am aware of the industry’s need to attract, develop and retain top talent so the sector can provide the cover required for the economy to thrive. Diary of an Insurer will offer a snapshot of what it is like to work in different functions, across an array of companies, and enjoy a rewarding career in insurance.
7. And finally, would you survive a zombie apocalypse?
I am confident my English Heritage membership means I know where I can go to borrow some serious weaponry. I hope to survive by killing quite a few zombies.