’There needs to be better communication and clarity when it comes to underwriting,’ says chief executive
Insurers have said the industry needs to get better at communication despite the challenges it faces.
Speaking during a panel session entitled What Next for Insurers at the 2024 Biba Conference, panellists said there were still issues with how the market talked to each other and to its clients.
The event was chaired by Towergate chief executive Richard Tuplin, who said the market needed to understand that companies cannot succeed in isolation.
“We have a highly complex and difficult world in which to operate and we will better navigate it together,” he explained.
“Whatever the challenges we face, we need to bring the role we do back to the client. They remain at the heart of what we are seeking to achieve.”
Jason Storah, UK and Ireland general insurance chief executive at Aviva, added that enhanced communication would deliver better outcomes for all.
“There needs to be better communication and clarity when it comes to underwriting,” he said.
“If there is really clear and transparent communication, the process goes a lot better. It is not rocket science but it needs to be a focus.
“My advice to brokers is to make sure you know your underwriters and they know you. Insurance is a game of inches, there are no big wins or big gains. Rather, it is a case of hard work, day in day out.”
Underinsurance
Meanwhile, the panel also discussed underinsurance, with Nadia Cote, commercial managing director at Allianz UK, warning that inflation was not helping the issue.
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Figures released by the insurer on Monday showed that some 61% of small and medium sized enterprises (SMEs) felt inflation and the cost of living were their biggest concerns, while 31% felt cash flow could be an issue.
Despite these concerns, only 19% of small business owners increased their sums insured in the past year, while just 12% increased their insurance indemnity periods.
Cote highlighted the need for businesses to look at the limits on their policies and the length of their indemnity periods and that there needed to be communication to highlight the issue.
“Inflation is here to stay and the issue is not going to go away,” she said.
“We have all asked what we can do. I think it is all about education and talking about the issue early in the conversation we have with clients.
“We have to make sure that we raise the topic and with it awareness.”
Sue Coffey, personal lines director at Covea, added: “The key to this is that insurers have a huge amount of information and that needs to be better shared with the brokers to enable them to discuss it with the client.
“Better sharing of information will help clients understand their needs.”
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