Insurance news – week commencing 30/01/22

week commencing 30/01/22:

The gloves have come off at the FCA, but boots are going on in Hull where it seems more floods are likely than anywhere else in the UK. At Luther Towers we’re channelling Churchill – keeping on keeping on – while watching for the storm to break over the Johnson administration.

Lloyd’s to cut costs

Lloyd’s CEO John Neal has argued that the market must reduce its expense ratio to 30% to be competitive. He said Blueprint Two would reduce the cost of servicing, but brokers and underwriters need to consider their processes too. External-link. [The Insurer]

Inappropriate creep

The insurance regulation inquiry has brought attention to the overspill of consumer safeguards into specialist markets. Liiba CEO Chris Croft criticised this ‘creep of scope’, saying that it didn’t address any existing issues. External-link. [Insurance Insider]

Insurtech syndicate approved

Syndicate 3456, established by Greenlight Re, is the latest syndicate-in-a-box to get in-principle approval from Lloyds. It will be used to provide capacity to Greenlight Re’s insurtech portfolio and support innovation. External-link. [Insurance Business]

Private e-scooters cause headache

Concerns about private e-scooters – currently illegal on UK roads – mean that insurers are reserving hundreds of thousands of pounds for collisions. External-link. [Insurance Post]

Unite to make FCA pay

FCA staff who are members of Unite voted overwhelmingly in favour of industrial action if CEO Nikhil Rathi does not enter into pay negotiations. External-link. [Investment Week]

Descartes come up trumps

Descartes Underwriting, the parametric insurtech, has raised $120m in a Series B round. It will use the funds to expand its technology platform and grow into new lines of underwriting. External-link. [Artemis]

Cyber rates rise

Marsh’s Global Insurance Market Index found that cyber rates shot up by 92% in Q4 2021, driven by an increase in the frequency and severity of attacks. External-link. [Insurance Times]

Potential flood of claims

Modelling from JBA Risk Management shows that as many as one in four UK homes is at risk of flooding. The Hull postcode area was found to have the greatest risk. External-link. [Insurance Business]

Ambassador, you are spoiling us

Amazon’s attempt to promote the business on social media by making ordinary staff ‘fulfilment centre ambassadors’ has bombed – bringing yet more attention to dubious working conditions and practices. Ironically, some social media fakes really are easy to spot. External-link. [Financial Times]

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