Telematics policies increase by nine per cent in the UK The British Insurance Brokers’ Association (BIBA) has released research that estimates there are 323 000 live ‘ black box’ telematics motor insurance policies in the United Kingdom compared to 296 000 in December 2013. According to Graeme Trudgill, executive director at BIBA, this new research indicates growth in this innovative area of motor insurance and is demonstrated by the fact that more brokers are launching products to meet this demand. Although BIBA remains optimistic, nine per cent is lower than previous years that experienced double-digit percentage increases and the UK penetration rate of around one per cent has been described as small compared to predictions by a uSwitch.com poll that estimated penetration at 3.2 per cent. Swiss Re highlights emerging risk in latest report Swiss Re’s latest emerging risk insights report published in May highlights 21 emerging risk themes of which the four with the highest potential impact are: large natural catastrophes, financial repression, de-globalisation, and the challenge that the Internet of Things poses. The insights were drawn from the identification and evaluation of new threats by Swiss Re’s internal risk management expertise using the crowdsourcing SONAR process. The report suggested that atmospheric river events and volcanic eruptions are not fully taken into account by a wide range of stakeholders for their potential for serious disruption, and quote findings that indicate flooding would overwhelm flood protections in mqny areas. Findings also point to an increased risk of bushfires where losses have grown in frequency and size in the past 10 years resulting in 90 per cent of global insurance losses incurred since 2002. UK Motor premium drops as profitability increases According to Deloitte, the UK motor insurance industry’s premium income dropped by £400 million in 2014 to £13 billion, but the industry’s underwriting profitability improved with a collective combined operating ratio (COR) of 100 per cent last year. However, Deloitte predicts a challenging few years ahead with COR predicted to increase by 103 per cent this year and 105 per cent next year, appearing to indicate the possibility of rising premiums for consumers. These numbers were released by Deloitte at their annual motor insurance seminar where there was a focus on the opportunities presented by driverless cars and telematics data to reduce traditional risk pools so that insurers remain client centric and premiums, competitively priced.