An insurer perspective of some of the challenges facing the GI
sector. The author starts by acknowledging that the social value of
insurance is being lost in the lack of trust. Then he explains that
rising to this will help the industry confront other issues such as
emerging technology and dealing with public policy themes such as
flood risk, reform to personal motor insurance and fraud.
- Insurance is an industry with a long and proud history and
strong financial foundations. It weathered the financial crisis
well, and in 2011 paid out £1.4bn to businesses for property damage
- However, insurance needs to think about the challenges ahead
such as trust, a customer-centric business, regulation, public
policy and opportunities such as technology.
- Public trust is one of the industry's biggest challenges. It
threatens to undermine the social value of insurance and all its
added benefits of stability and risk handling.
- This trust is has to be earned one step, and one customer, at a
time. We do it by demonstrating over months and years that we are
focused on our customers and that we will deliver the right level
of service and protection.
- Another challenge is responding to regulatory change. New
structures are being developed and implemented at the UK and EU
levels. Aviva's vision is of financially capable and well-informed
consumers and businesses able to better access suitable products
and advice in competitive, open markets.
- Insurers must adapt to new technology, both in terms of
communicating with consumers (e.g. via social media) or driving new
product design (e.g. apps that reward safer driving). For example,
brokers provide over 60% of Aviva's business, and the insurer has
invested in "quote and buy" online technology specifically for
brokers which can be accessed through an iPad app.
- The insurance industry must play a full and active role in
public policy debates and work to rebuild trust.
the attached document »
The following documents may also be of interest:
door of every cottage ... protecting the public in general
The UK's new financial services regulatory landscape »
The CII's future risk report