How long will the hard commercial insurance market last? Well, it seems that is still is anyone’s guess.
Artesian : DueDil research depicts an acceptance from both underwriters and brokers that no one can predict how long the current tough conditions will last. And that whilst there is some stabilisation in certain areas of the market, in the commercial sector rates are still high, capacity is still hard to find and risk appetites are still a challenge.
Although brokers and underwriters are experienced and prepared for the challenges of operating in a complex and rapidly changing hard commercial insurance market, each cycle presents its own mitigations, and this one is no different. Brokers and underwriters alike must adjust to the post-covid business environment and rapidly changing customer needs and expectations.
Bringing the best insurance minds together
Artesian recently hosted an intimate roundtable event, chaired by David Williams, Managing Director, Underwriting & Technical Services at AXA Insurance (UK), and attended by 26 underwriting and broking leaders as well as insurtech innovators across both the composite and specialist insurance markets. During the discussion, two recurring themes emerged – collaboration and innovation.
Firstly collaboration, brokers and underwriters working together, building a symbiotic relationship for a wider purpose – to improve what they collectively offer clients in terms of both underwriting innovation and service.
Secondly innovation. The arrival of a global pandemic forced the insurance industry to embrace and accelerate digital transformation and technology innovation. Moving forward, to counteract the effects of a hard market, proactive use of data is the best way to secure coverage and work around lack of capacity.
Collaboration and innovation are not mutually exclusive
Broker and underwriter relationships are under strain according to 89% of stakeholders (underwriters, brokers, MGAs, Insurtech/fintech respondents).
For underwriters, building a strong relationship with brokers has never been more important, and vice versa of course. But who has ultimate responsibility when assessing the risk of a policy?
Brokers need underwriters to craft policies and take on risks on behalf of their clients, but to do this underwriters need top-notch presentations from brokers.
The key of course is collaboration, and I would actually go a step further…the key is investing in collaboration enhancing technology innovation. Greater access to better quality data and insight enables brokers to make the best possible submissions to underwriters and armed with this better-quality intelligence underwriters can make more accurate assessments of risk and therefore provide better terms and prices to the broker’s clients.
Win-win – brokers can rely on their underwriter relationships to insure their clients, and underwriters can rely on their broker relationships to present new opportunities for profitable growth in a hard market. Neither can thrive without the other, they must collaborate and innovate in unison.
Collaborate and innovate with Artesian : DueDil
Artesian : DueDil is on a mission to help brokers and underwriters survive and thrive in hard market conditions.
Our Business Information Graph and Premium APIs in combination with our powerful web application and advanced rules-based insight engine means our broker and underwriter clients can harness:
- Rules Engines – create bespoke solutions using customised company data
- Customisable risk and compliance management – the combination of DueDil’s Business Information Graph (B.I.G) and the Artesian Connect rules-engine enables the implementation of unique KYB, onboarding and in-life monitoring processes
- Real-time data – billions of connections and real-time insights, relevant to both current and future customer relationships
- Artificial Intelligence – drive advanced customer experiences through optimal decision making and operational processes
- Customisable Decision Engine – make split-second, error-free decisions that free up resource, lower risk, and deliver new highs of efficiency
Ready to transform? Find out how we are helping our insurance clients do better business faster and win in a hard market