Five priorities for the London company market in 2017 have been identified by the International Underwriting Association (IUA). Over the past 12 months, member firms have faced considerable challenges, commented the association’s CEO David J Matcham, but the IUA is well-positioned to respond to their needs for the coming year.
The IUA’s business plan for 2017 identifies a strong representation of London insurers’ views in Brexit negotiations as one key objective.
Another is to grow significantly the use of the market’s electronic placing platform and move towards a user-pays model for the system.
The successful upgrading of the Insurers Market Repository is also on the priority list, said IUA. This facility contains over 60 million documents and is relied upon by IUA members. It is essential, therefore, that its transfer to a new software system is completed smoothly and does not cause market disruption.
Elsewhere, companies will be seeking to improve claims agreement services and develop new arrangements for managing central processing services.
Mr Matcham said: “There is no doubt that current business conditions faced by our members are extremely tough; many practitioners currently working have never experienced a sustained hard market. The challenge of rate pressures may also be accentuated by uncertainty surrounding the exact nature of the Brexit process.
“There are, however, a number of reasons to be optimistic as we are, I believe, well-placed to meet the challenges ahead. Through the London Market Group, we have a greater level of market unity than ever before which is helping us discuss effectively our concerns with government.
“Progress is being made, for example, in the introduction of a new regime for insurance-linked securities and the refresh of central processing services. Brexit has also pushed the possibility of new trade deals up the government agenda and as one of the most international sectors of the British economy, the London market should benefit from such developments.”
The IUA’s business plan for 2017 also includes a review of the previous 12 months which saw two new members join the association, a full review of model wordings in light of the Insurance Act 2015 and increased international activities with a link to the Singapore Reinsurers’ Association.