Underwriters in the London Market will continue to face an uphill struggle unless they make better use of the readily available data, warned a leading consultant this week.
Raj Ahuja, a consultant with actuaries English Matthews Brockman, also added that recent failures and withdrawals from the market, in particular from the US casualty and marine divisions, had highlighted the need for more analysis and management control.
Speaking at the London Underwriting Centre at the launch of Pris EMB, actuarial software for pricing in the London Market, Ahuja said: “Of course, whether or not to accept a risk at below a technical rate in order to win business is ultimately a business decision.
“Before you can make that decision, however, you need to fully understand the risk you are being offered, and too often that is not the case.”
Pris EMB was designed to help underwriters assess commercial insurance and reinsurance risks by analysing, storing and retrieving data.
Lloyd's managing agencies Newmarket Underwriting, Cotesworth and RF Bailey have already bought licences for the software.