Preview: What will 2022 bring for the insurance market?

What do you anticipate to be the biggest event of 2022?

Neil McKinley, president of the Association of Personal Injury Lawyers: “Maybe there will finally be a proper ban on calls and texts which tout for personal injury claims. It would be so simple, and is needed. Research and common sense tell us nobody likes them, yet these calls are still the most common type of complaint to the Information Commissioners’ Office. Apil’s research with You Gov showed that people can be very distressed and upset by the calls. It also brings the sector into disrepute. Something needs to happen. We’re working on it.”

Chris Sime, group markets director for GRP: “In our sector, I’m looking forward to British Insurance Brokers’ Association Conference 2022 and the chance to for us all to come together again after such a long break. We underestimated the value of events such as this, and I’m sure for scoop-starved journalists, the opportunity to pick up gossip in the bars of Manchester again will be very welcome.”

David Nichols, chief claims officer at Zurich: “We hope to see a quick recovery of supply chain capability. This is both in terms of the delivery of material and skilled resources. This will enable us to fulfil our commitments to our customers, particularly in light of the impending storm season surges.

Catherine Dixon, chief underwriting officer at Allianz: “From a general standpoint January’s pricing practices will obviously be a huge change for the industry and everyone, personal and commercial lines, will be watching to see how it all unfolds.”

Matthew Harrington, senior partner at BLM: “A mid-term general election.”

Helen Faulkner, head of insurance at DAC Beachcroft: ”COP27 in Egypt, where countries and industries will need to show that action has been taken.  Countries need to go to COP27 with updated plans, rather than just relying on an honour system. The United Nations will publish regular reports, calling out those falling behind on their temperature goals.”

What challenges will the sector face? Is it ready for them?

McKinley: “Personal injury firms are dropping out of the sector, a trend which will continue”.

Sime: “How to establish a new ‘normal’ for office working patterns. The lockdown has set the precedent for home working, and while some flexibility has to be a good thing, bringing staff back into the office has lots of benefits in terms of building a team culture, helping inexperienced staff learn and develop professionally. People have got used to working from home and saving commuting money, but it’s important to re-boot our offices.”

Dixon: “Changing methods of mobility, associated technology and green targets is just one example that the industry will need to grapple with – not only the futuristic side of things but the here and now as people’s lives and working habits have changed over the last year.  Another area that could prove to be a challenge is claims inflation and associated pricing as supply chains continue to be disrupted. How to look after customers and demonstrate product value while there is still so much economic uncertainty will be top of mind for all insurers.”

Harrington: “On the customer side, continuing to develop seamless digital propositions will remain key. At organisational level, the importance of Equality, Diversion and Inclusion - will continue to increase. We are firmly committed to both these issues which are critical to our success. Although the insurance sector has demonstrated genuine leadership on EDI via initiatives such at the Dive In Festivals, the momentum around this topic must be maintained.”

Paul White, CEO at Sedgwick: “All businesses are now having to really demonstrate that they are taking ESG seriously and, rightly, must show what impact their business is having on the environment and wider society. Some businesses will be making great progress in this area, but for others, where it’s not so high on the agenda, it will be a significant challenge.”

Tara Foley, CEO of Axa UK Retail Insurance: “Meeting the needs and expectations of today’s and tomorrow’s customers remains the biggest challenge. Customer expectations have been changed irrevocably by the pandemic and, rather than a challenge, this should be viewed by the sector as an opportunity to develop and launch new propositions to meet their evolving needs.”

Adam Winslow, CEO, UK & Ireland general insurance at Aviva: “From an insurance perspective, the FCA regulatory changes on pricing will be an important milestone in addressing consumer concerns around new versus renewal pricing. However, from a longer term outlook, COP26 has shown us that in 2022 our focus needs to be on how we collectively address climate change. The insurance industry has an important role to play, not only in considering how it reduces its carbon emissions, but additionally how it helps its customers take action.”

Russell Corbould-Warren, chief underwriting officer at Collective Benefits: ”There’s going to be an exponential amount of growth over the following years: the fact that the gig economy workforce in the European Union is due to grow by 53% to 43 million in the next three years is huge for us. A challenge for 2022 will be working through this phase of expansion while preparing for even more growth.”

Faulkner: “Social inflation will become an important consideration for insurers writing business globally.  It is no longer a US phenomenon and insurers will need to track developments closely to adjust pricing and reserving. Climate change will continue to top the agenda, as part of the wider push on environmental, social and governance issues, which the industry is now getting to grips with. Cyber risks will also continue to challenge the sector. Ransomware attacks are crippling businesses globally. Cryptocurrencies have exacerbated the problem. Governments are taking action but so far these measures are only a small drop in the ocean in the fight against cyber criminals.”

Ant Middle, CEO, Ageas Insurance: “Changes in the way we work and the way we consume products has dramatically accelerated over the last two years and the insurance sector has started to respond. From offering flexible working to our employees to sustainable products and on-demand insurance, the industry is faced with the challenge of meeting the expectations of the societies we support. I believe that we are ready for them and matching the pace of change.”