'Where will insurers and brokers make money in 2013?'

Let’s ignore the doom and gloom of the tough economy and the commercial market that still needs hardening, and ask: where will the sweet spots be for insurers and brokers to make money in 2013?

In personal lines, home insurance seems to be on the menu for many insurers. Over time, it has had a much better combined ratio performance than motor, typically in the mid-90s. This year will be tough with the flooding, but rates are rising in response to events.

With typical shrewdness, Admiral has picked an auspicious time to enter the home insurance market. Meanwhile, big players such as Aviva and AXA will lean on broker channels to grow revenues.

In commercial lines, the UK remains very tough across all lines of property/casualty. Watch out for emerging players such as QBE and Ageas growing their market share in the mid-market. For those with the right expertise and strategy, there will be opportunities to make money in emerging risks such as cyber.

The London market looks in good shape. Last year, it had low losses for the first three quarters, although it took a big hit from Superstorm Sandy at the end of the year. The market will still make good money. Lloyd’s, in particular, has diversified its revenues and its strong reputation will serve it well.

For brokers, those that embrace professionalism to differentiate themselves could win business from their rivals. Chartered Insurance Institute accreditation is the name of the game. Those that prosper will cross-sell and market their businesses more aggressively. There’s all to play for in 2013.

UK Claims Excellence Awards 2013

Insurance Times is also pleased to announce the launch of the third annual UK Claims Excellence Awards on 10 May 2013. We look forward to another year of outstanding entries from the UK general insurance claims community. Enter online at www.insurancetimes.co.uk/uk-claims-excellence-awards-2013.