’We are seeing inflation abate, but frankly not quite as fast as many would like,’ says chief executive 

There has been a “significant costs push in certain areas” of the insurance sector, according to Earnix UK chief executive Robin Gilthorpe.

Gilthorpe told Insurance Times: “We are seeing inflation abate but, frankly, not quite as fast as many would like – and then, on top of that, rising interest rates.”

As an example of the rising costs in the insurance sector, Gilthorpe noted the impacts of the change in driving behaviour  post-pandemic, as well as the scarcity of car parts for repairers.

The comments followed the insurtech’s latest Insurance Operations in a Changing Industry report, published last week (11 October 2023).

The survey, which was conducted by Earnix in June 2023, surveyed 400 global insurance executives from Europe, Australia, Canada and the US. Respondents spanned c-suite, IT, analytics, product and underwriting roles.

Gilthorpe also noted that “the price cycle [was] driving adverse selection of risks and therefore poorer returns” for insurers.

He said: ”It’s not a great environment if you can’t go to capital markets and you can’t go to reinsurance markets – that’s really driving a lot of interest in how to manage and tune [insurer’s] risk return portfolios.”


Gilthorpe predicted that interest rates may remain at an “elevated level” in contrast to the lower rates seen over the last ten or so years. 

He continued: “[The economic environment has] refocused a lot of carriers on being very selective about risk and very focused on profitability.

”When the yield curve was completely flat and reinsurance rates were very benign, it was almost a sort of race to accumulate as much gross written premium and policies in force as possible.

“That is not the general view or dynamic in the market today.”

As a result, Gilthorpe said he believes that insurtech firms and insurers must now “prove their value,” as investors become more focused on profitability and incremental investments for exponential gain.