ILC ARTICLE

ILC Breakfast News – Wednesday 12 January 2022

11th January 2022

Motor

Register now… webinARC January 2022: Sustainability

In this webinARC we explore the key themes of sustainability across the industry to discover just what it means to different operations at this current time.

Aviva agrees five-year deal

Aviva has agreed a five-year deal to underwrite cover for non-standard motor and van risks for Prestige Underwriting Services.The deal, which will be distributed through Prestige Underwriting’s network of 600 brokers and affinity partners, adds to an existing partnership which sees Aviva underwrite motor and non-standard home policies for Prestige Underwriting.

McKinsey models future of mobility

McKinsey has published a report which reveals the results of its own mobility modelling. Its granular Mobility Market Model takes data from more than 2,800 cities and towns in more than 110 to model a range of possible mobility projects.

As well as considering miles travelled, vehicle sales, infrastructure and environmental impact, the report also estimates the size of private and shared transport markets through 2030 and beyond.

BSI reviews CAV standards roadmap

BSI has announced it is reviewing its CAV standards roadmap. The roadmap was first published in 2020 and identifies future projects and potential areas for future standardisation.

It is inviting industry input in the process and will host two online workshops on 26 January and 3 March during which stakeholders will be encouraged to provide guidance.

Roundtable event shines a spotlight on salvage

Experts from across the insurance industry met late in 2021 to consider the perennial – and one of the most pressing issues facing the sector at the moment – total loss vehicle management. Despite around one fifth of all damaged vehicles ending up as total losses, it’s an often-obtuse area of the motor claims continuum.

Home & Property

Home claims changes on the way

A new report published by Sedgwick has warned of a change in home claims and repairs as a result of supply shortages and new restrictions.

The report, View 22, also identified a shortage of skills as one of the main challenges of 2022 urges businesses to accept that the pandemic has changed the mindset of many employees, and said the solution rests in partnership.

2021 house price rises to taper off

House prices rose 9.8% during December 2021 compared to the same month a year earlier, according to data released by Ernst & Young. Prices were also up 1.1% on November’s average figure, capping off a year of sharp rises.

The suspension of stamp duty contributed to the increase, but continued growth could be hindered by higher inflation, tax rises and rising mortgage rates. However, with low unemployment and savings accumulated during the pandemic, a fall in house prices in unlikely.

ILS to avoid Stamp Duty taxes

Parliament has approved new government legislation designed to exempt insurance-linked securities issuance from Stamp Duty taxes.

If passed, the move will allow the government to ensure Stamp Duty and Stamp Duty Reserve Tax does not add cost to securitisations and insurance-linked securities (ILS) arrangements.

US: CoreLogic solution hailed by AXA Climate

AXA Climate has selected CoreLogic to deliver its Hail Protection product.

The announcement comes after a successful trial and will see AXA Climate offer the solution, designed to help businesses recover from financial losses such as property damage or business interruption following a hail event, to condominiums, golf courses and greenhouses.

ClaimsTech

Lloyd’s launches new home for innovation

Lloyd’s has created Product Launchpad as the new home for the development of insurance solutions to tackle emerging risks.

Product Launchpad replaces Product Innovation Facility and has been established to support continued innovation and facilitate further partnerships with insurtech.

Tractable reaches international market

UK-based AI specialist Tractable has announced two new significant partnerships.

It will provide its AI solutions to help US-based insurtech Root Insurance accelerate its end-to-end claims process, beginning with subrogation, while the largest Spanish multinational insurance group in the world, MAPFRE, will now apply Tractable’s AI technology to speed up claims.

Duck Creek secures key partnerships

US-based Duck Creek Technologies will offer motor insurance policies based on data gleaned from telematics, artificial learning and machine learning after announcing a new partnership with UK insurtech Adiona.

Meanwhile, the company is also partnering with global information services company Experian to deliver more detailed risk profiles to general insurance providers in the UK through a new Software as a Service (SaaS) solution which collates critical data to support underwriting in motor, buildings, and contents insurance.

SecureNow positioned for further growth

India-based company SecureNow has raised $6m in its last round of funding, with support coming from Apis Partners and and Charan Singh.

SecureNow will use the investment to further develop its end-to-end commercial insurance platform and increase its customer base from 25,000 small businesses to more than a million in three years.

Market News

Optio Group acquires Brockwell Capital

Optio Group has acquired leading warranty and indemnity MGA Brockwell Capital for an undisclosed sum. The deal adds to Optio’s transactional liability capabilities and brings into the group expertise in the fields of tax liability, contingent liability and financial lines.

Brockwell writes £30m of GWP and all eight of its staff will join Optio.

KPMG names Jones UK head

KPMG UK has named Trevor Jones as new head of its insurance practice. He takes over from Simon Ranger, who will focus on his position as Vice Chair.

Jones has been with KPMG for 24 years and previously led the firm’s UK actuarial practice. He will lead its team serving clients across the insurance spectrum, including insurers, reinsurers and brokers.

Dealmakers enjoy fruitful 2021

Companies that completed mergers and acquisitions last year outperformed the World Index for the first time since 2016. According to the Willis Towers Watson’s Quarterly Deal Performance Monitor, run in partnership with the M&A Research Centre, businesses which made significant deals during 2021 exceeded the World Index by 1.4%.

The research also found that there were 1,047 deals valued at more than $100m, which is a significant increase on 2020 (674), and the highest total since analysis began in 2008.

ILC partners scoop prestigious awards

ILC insurer partners Aviva and LV= were among the winners at the 2022 Consumer Intelligence Awards. The industry awards are the ones of their kind voted for by customers, with more than 500,000 providing feedback.

Aviva and LV= were both recognised in the motor insurance category, winning awards for customer trust, customer service, claims satisfaction, customer satisfaction, and recommendation by customers.