EUROPE

RISKSA Magazine - - International News -

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.

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