Taking the pulse of insurance trends: Pandemic Re

If you read my last blog ‘How brokers can plan for a future of business interruption’, you’ll know that many insurers came under heavy criticism for their stance on claims for loss of business – business interruption – during the Coronavirus pandemic. The Financial Conduct Authority (FCA) brought a test case before the High Court in 2020, for a ruling on whether business interruption policies offered coverage against closures necessitated by Government-imposed lockdowns. As a result of this test case, in January 2021 the Supreme Court ruled insurers were liable in most cases, especially when a policy offered cover for closure as a result of an outbreak of infectious disease.

But, as ever, keeping a finger on the pulse of insurance trends that could impact our customers and their customers, we have been closely monitoring developments around calls for Pandemic Re – a state-backed insurance company that would pay out to cover losses from any future pandemic.

What could Pandemic Re look like?

Well, it appears it could look very similar to Pool Re, the state-backed terrorism insurer.

According to a recent report in the FT, a group of insurance executives, led by industry veteran Stephen Caitlin, is working on proposals for how pandemic insurance could operate. These could include either expanding Pool Re’s remit or setting up a new company along similar lines.

Support for Pandemic Re is certainly growing with insurers, reinsurers and brokers (most of whom just happen to be Artesian customers), professional advisory organisations, data providers, insurance associations (ABI, BIBA, CBI, LMA and LMG), top law firms, and the NHS all participating in various Pandemic Re working groups.

The role of data and data science

One of the participants in the Pandemic Re discussions is Dun & Bradstreet, who in a recent statement highlighted the importance of, and role for, data and analytics. According to UKI Head of Insurance, James Harrison, the pandemic revealed the fragility of operating models from a lack of investment in digital and data technologies. He said – “those who have made investments in digital data have been more robust, as they seek to understand who their customers are and develop a high-resolution view of their risk profile to then support processes across the insurance value chain.”

Sounds familiar doesn’t it…?

Better Business Faster

Last month, we announced we have merged with DueDil. This means our insurance customers, whether brokers, underwriters, MGAs, insurers or reinsurers, can access a more advanced ability to drive value. By combining DueDil’s Business Information Graph and Premium APIs with Artesian’s powerful web application and advanced rules-based insight engine, our insurance customers 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

Get ahead of trends

You don’t have to wait for a final decision on Pandemic Re – get ahead of the game now to ensure you’re ready for whatever the future may bring. Give me or another member of the team a call today to find out how you can drive more value from data.

In the meantime, if you are already an Artesian customer here’s a top tip to takeaway – check out our Trends and Topics features and start following government bodies for regulatory updates, and key associations in the insurance sector for news on the development of Pandemic Re and other emerging trends.