2013-02-15 11:17:59 -
15 February 2013
Novae Group PLC launches first industry survey - 'Looking Forward'
Novae Group plc ("Novae") is pleased to announce the launch of its first
industry survey, which provides direct insight from the market on the market
about what the future of the insurance industry holds.
The report is based on original research done within the London insurance
industry, drawing on the insights and first-hand experience of many of the
leading figures from the insurance market. A central tenet of the research was
that "the future may not be easy to predict, but it is not impossible to prepare
for". The resulting publication is the cumulative wisdom of some of the
industry's greatest minds on everything from the context of the global
to innovation, regulation and scale. Some of the key themes to emerge from the
research are as follows:
1. "Bigger, Faster, Scarier": the future of the industry is 'big' and
competitive...not only the companies within it, but the nature of the risks
they will be asked to insure.
According to one market participant: "There will be more consolidation; the
three large brokers will consolidate down into two. There will be significantly
more consolidation in the US and globally amongst small brokers because of the
cost of capital and cost of regulation. Insurance companies don't welcome this
loss of competition. But it is a given."
2. "New products, new markets": in terms of both geography and product, areas
of growth in the future will be different from those in the past - and
profitability will be hard won
According to one market participant: "People need to be more innovative and
write more business and create relationships in emerging markets and use their
brains. It's a challenge but it's a challenge for all of us that we have to work
out. If you are struggling to write one line of business only, you will either
get taken over, or no-one will want to do business with you."
3. "Regulation": regulation was made for Man, not Man for regulation. The
insurance industry had a 'good crisis', and it should be more assertive in
telling the regulators what works
According to one market participant: "Increased regulation is the biggest factor
- it is more and more intrusive and completely bloody relentless. It
particularly impacts on new companies."
Commenting on the survey launch, Matthew Fosh, Chief Executive Officer of Novae
Group plc said:
"In an industry built on having eyes on future risk, how often do we look into
our own future? This was one of the reasons for carrying out the research, and
one of the first questions we asked the market. With this research, we also felt
it was right to tease out recognition of the importance of the industry, which
is often seen in the media in a negative way. The truth is that the insurance
industry, as a major contributor to the economy, is central to the financial
services sector, not only in the UK, but worldwide. Hopefully this survey
reinforces that reality."
For further information:
Matthew Fosh - Novae Group plc 020 7903 7300
Nick Miles - M:Communications 020 7920 2330
Based in London and listed on the London Stock Exchange, Novae underwrites a mix
of short- and long-tail business, encompassing property, liability, marine and
'specialty' classes. Approximately 60 per cent of Novae's business is drawn from
the UK and continental Europe, with the balance drawn largely from the Americas
and Australasia. Novae writes both insurance and reinsurance business.
Please click here to download the full version of the survey.:
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Source: Novae Group plc via Thomson Reuters ONE