OLDWICK, N.J.--(BUSINESS WIRE)--In this AMBestTV episode, Catherine Thomas, senior director of analytics, AM Best, said the roles of brokers and underwriters are blurring in the London market as participants look to improve efficiency and drive down costs. Click on http://www.ambest.com/v.asp?v=thomas1119 to view the entire program.
Thomas highlighted what she perceives is causing these shifting operating models.
“In a competitive market, such as the London one, there is a need to realize efficiency, as well as to demonstrate what value you will add to the client,” said Thomas. “As a consequence, brokers are increasingly performing services that have historically been provided by underwriters, such as the provision of advisory services and the pricing of risk. I think broker facilities are a good example of where we see brokers using their data and analytics to operate in a way that much more closely resembles an underwriter. As for insurers, they are looking to get closer to their clients, as well as better understand their risks and insurance requirements.”
Thomas also addressed the reasons for the high costs associated with operating in the London market.
“The high cost of operating in the London market is a well-established and well-documented issue,” she said. “Part of the reason is because of the focus on specialty business where there is a high requirement for underwriting expertise and a high reliance on broker distribution. Additionally, the inefficiency of placing business in the market and the length of the value chain, as well as the increasing acquisition costs are all playing a significant part in that disparity.”
To access a copy of this market segment report, titled, “Roles in London Insurance Market Blur as Participants Seek to Add Value,” please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=291602.
Recent AMBestTV coverage includes:
- Identity Theft Coverage Could Become ‘Personal Cyber’ Insurance, Say AM Best Analysts: AM Best analysts discuss the state of the identity theft insurance market, and how the product could evolve into stand-alone personal cyber coverage: http://www.ambest.com/v.asp?v=idtheft1119.
- Catastrophes Likely to Dent Reinsurance Earnings, Says AM Best Senior Financial Analyst: AM Best Senior Financial Analyst Mariza Costa says three straight years of catastrophe losses likely will dampen reinsurers’ third-quarter 2019 earnings: http://www.ambest.com/v.asp?v=catsreport1119.
- AM Best Director: Top European Insurers Stable but Face Competition: Mathilde Jakobsen, AM Best director, analytics, said Europe’s five largest non-life insurers represent nearly 50% of the total market, yet still face strong competition: http://www.ambest.com/v.asp?v=largesteuropeaninsurerers1119.
- Insurers Likely to Grow Green Bonds, Say AM Best Analysts:Recent issuances of green and sustainable debt by insurance companies represent the start of an emerging trend, say AM Best’s Michael Dunckley, assistant director, and Jessica Botelho-Young, senior financial analyst: http://www.ambest.com/v.asp?v=greenbonds1019.
AM BestTV covers exclusive AM Best and insurance industry information and reports, targeted topics and key developments in the insurance, reinsurance and related sectors daily. Sign up for alerts of episodes at http://www.ambest.com/multimedia/ambtvsignup.html. View AM BestTV episodes at http://www.ambest.tv.
AM Best is a global credit rating agency, news publisher and data provider specializing in the insurance industry. The company does business in more than 100 countries. Headquartered in Oldwick, NJ, AM Best has offices in cities around the world, including London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
Copyright © 2019 by A.M. Best Company, Inc. and/or its affiliates. ALL RIGHTS RESERVED.