The association has highlighted key challenges for the London Market in the coming year

The International Underwriting Association (IUA) has highlighted the key challenges it expects London market insurance companies to face in its business plan for 2023.

Published today (4 January 2023), the plan lays out the IUA’s intention to support its members through ongoing issues such as inflation, the need to recruit and train new talent and the importance of contract clarity. 

The newly published document also revealed that the IUA’s Cyber Underwriting Group is developing a research paper on supply chain risk while its Claims Strategy Committee will oversee a review of claims agreement procedures with the intention of maintaining a market-wide standard in claims processing. 

Dave Matcham, IUA chief executive, said: ”The IUA’s mission statement is to secure an optimal trading environment for London insurance companies and all our activities are targeted towards achieving this outcome. 

“Our business plan this year addresses both market cycles facing different classs of business and regualtory challenges, such as the scope of the FCA’s fair value requirements.” 

Matcham added that 2023 would also see developments of digital processing in the London market as the IUA’s joint venture with Lloyd’s and DXC Technology pushes ahead. 

Regualtory reviews 

The IUA will also carry out public policy work this year to monitor the implemenatation of the government’s reform package to Solvency II – during the consultation phase of this exercise the IUA argued for a removal of duplicative reporting requirements imposed on UK branches of overseas insurers and while this was integrated into the government’s policy announcement the association said it would review drafts of new rules and regulations when they are published. 

Related policy work directed at the Financial Services and Markets Bill – which is currently in the report stage in the House of Commons – will also be undertaken by the IUA. 

Working alongside the London Market Group, the association will follow the introduction of a statuatory objective compelling UK regulators to consider the international competitiveness of the London market as they carry out their supervisory duties. 

The IUA said: “We will be monitoring how this new objective is addressed and adhered to in practice.”