Call for insurer innovation in CMT sector
by Gill Montia
Story link: Call for insurer innovation in CMT sector
“Resistance to change” is seen as the biggest weakness for insurers (44%) and brokers (39%), according to a poll undertaken by JLT Specialty at the recent Global Communications, Technology & Media (CTM) Forum in Salzburg.
The survey also found that a majority of attendees “strongly agreed” with the following statements:
1. Insurers don’t understand patent infringement and cannot rate the risk properly.
2. Contingent Business Interruption claims are a recipe for disaster and disputes.
According to the poll, the current overall rating environment in the CTM sector was deemed to be flat in most classes of insurance, whereas last year’s view was that the environment was soft.
The notable exception this year was esoteric lines – New Product Development Business Interruption (NPD BI) / Catastrophe Business Interruption – which was deemed to be up.
It was the same picture when looking at current overall risks. And in terms of the underlying rating adequacy, NPD BI again stood out, with 80% of respondents describing it as “inadequate” or “very inadequate”.
JLT global head of the CTM practice, Peter Hacker, told the Forum that the survey revealed a clear shift from assets to liability, and a view that liabilities are a much bigger threat going forward.
He said the survey showed that the insurance industry needs to position the value of insurance at the right level, explaining: “That means it has to become more innovative, and we need to show the value of insurance.”
The study identified key risks as: privacy, patent infringement, network security, non-physical damage business interruption and online fraud (crime/malware).