The UK is at heightened risk as ’inflation remains elevated,’ says head of underwriting strategy

The economy is facing a “tipping point” amid inflation affecting “all sectors of the UK economy” as well as clients. 

That was according to Michael Gregory, head of underwriting strategy at insurer RSA, who warned the UK is at heightened risk as “inflation remains elevated”.

Speaking at a session entitled Navigating Uncertain Times with RSA at the Biba conference earlier this week (10 May 2023), he said risks included interest rates hitting margins, consumer confidence falling, geopolitical tensions and energy shortages exacerbating the risk of business continuity failures.

Gregory said that only by understanding where to look and how to act on these indicators could insurers and brokers work together to overcome these challenges.

Survey

It came as RSA released the results of its RSA Broker Pulse Q1 2023 survey, which found 54% of brokers citied economic uncertainty as a common concern or challenge they were hearing from clients.

It also suggested brokers would welcome additional support from insurers in understanding the macro-economic environment, with 85% wanting more and only 10% thinking insurers were doing enough to help them navigate an uncertain environment.

Gregory said that from an insurance point of view, “we’ve got to find ways to support” clients and brokers and “support [them in] what challenges [the] industry is facing”.