Report challenges insurers to manage the insurance cycle better...
Insurers have the tools and information necessary to manage the insurance cycle better, a new report by Lloyd's claims.
The publication, Managing the Insurance Cycle, outlines seven steps to make sure the industry becomes less unpredictable and underwrites on a sustainable basis for the benefit of both policyholders and insurers. These steps include not following the herd, providing the right incentives for underwriters and investing in the latest risk management tools.
“In the past, insurers have simply accepted the insurance cycle, seeing it as a force of nature with an uncontrollable impact on their business. But at Lloyd's we believe that insurers now have the information and the tools they need to manage the cycle much more effectively,” said Rolf Tolle, Lloyd's director, franchise performance.
“Market conditions are changing – with rates softening in a number of lines - and we believe that it is now more important than ever for insurers to take action. We have already done a lot of work on this at Lloyd's to encourage underwriters to manage the cycle, but the real test of a soft market is still ahead of us and there remains much to be done.”
Lloyd's commissioned the report from the Economist Intelligence Unit as part of its 360 Risk Project, which aims to generate debate about today's key risk issues and how best to manage them.
