Douglas Shillito
This week will likely be remembered for the UK Prime Minister's Brexit "clarity" speech, a range of comments at Davos, and President Trump's protectionist "America First" inaugural address. However, much was also happening in the insurance market. Aviva is bringing its UK insurance businesses together - life, general and health insurance – under the leadership of Andy Briggs, and Zurich announced the finalisation of its own UK restructure, with the loss of around 240 mainly back-office jobs expected.
EIOPA and the Bermuda Monetary Authority signed a Memorandum of Understanding (MoU), and EIOPA also reported that the EU and US Insurance Project had convened, where experts discussed cyber security efforts in financial services. The International Insurance Society (IIS) launched its Global Centers of Insurance Excellence (GCIE) initiative, and The Association of British Insurers (ABI) criticised the ruling on change in discount rate in calculating compensation for long term claims. The WINNERS Project to form insurance of supply chain infrastructure across Sub Saharan Africa was announced from Davos, and an MGAA Matters report reviewed trends in the UK MGA market.
An increasing number of insurers now regard investment in digitalisation as a priority, according to a global survey from Willis Towers Watson and Mergermarket, whilst an Oliver Wyman report said that the financial services industry needs to digitize existing core businesses to radically reduce operating costs and maintain current market share, profits, and valuations. Startupbootcamp announced that French company CBien will join the ten selected InsurTech startups on its 2017 program as Startup in Residence. Duck Creek signed up NIIT Technologies for its Global Alliance Program, claims specialist Validus-IVC joined Guidewire's PartnerConnect, and a range of Guidewire solutions were selected by US-based Grinnell Mutual. JBA Risk Management released the first-ever high level, multi-peril flood model for Vietnam, and Sequel appointed a CFO.
Standard Chartered Bank and Allianz announced a 15-year General Insurance Partnership in Asia, and Aviva, Hillhouse Capital and Tencent are to form a digital insurer in Hong Kong. Lloyd's is to open its Indian reinsurance branch in time for the April renewals, and Markel International was granted a licence to write primary insurance in Brazil. Compre acquired again, this time in Luxembourg, and RFIB's holding company launched a new MGA. There were senior appointments at Pioneer Underwriters, SCOR, Willis Towers Watson, and XL Catlin, and the Lloyd's Market Association (LMA) revealed two new Board members.
Full articles on the above topics may be found on the Insurance Newslink and Financial Newslink global trends database services at www.onlystrategic.com.