The future of insurance cover lies in intangible risks, a conference of claims professionals has heard.
Speaking at Post’s Claims Club Summit in London, Julian Enoizi, CEO of Pool Re said the emergence of risk such as cyber, and the rising threat of chemical, biological, radiological and nuclear from terrorist groups means that today’s landscape is often difficult to predict and quantify.
Enoizi, pictured, said: “What about pandemic flu; this remains uncovered. What about unforeseen regulatory changes and the issue of climate change? The future is about a shift from tangible to intangible risks. We need to ask how the industry is preparing for that.”
Building relationships between the insurance sector, academia, and government will be essential if the industry is to provide appropriate cover, he said.
Enoizi said the amount the industry spends on claims is a concern. Adding that paying claims fast and accurately should be a top priority.
“Less than 60 pence to the pound goes towards paying claims,” he said. “That is a horrific statistic. Paying claims is what we’re here to do.”
The Pool Re CEO drew attention to the foreign aid bond, a catastrophe bond designed to partner insurance companies with governments to provide cover against major loss events and drive infrastructure resilience.
Enoizi said that such initiatives will be essential in closing the protection gap and boosting take up in insurance cover within both the private and the public sector.
The claims process is an essential part of the insurance offering and needs to be higher up the agenda in making the case for increased insurance penetration.
The claims process is the “end game of insurance”, Enoizi said, and should be used as leverage to show the benefit insurance cover.
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