The hard market is having a serious effect on information processing according to a panel of experts established to discuss market conditions by Lloyd’s.
Lloyd’s announcement indicated that a number of “underwriters and brokers said that as the number of enquiries to specialist markets such as Lloyd’s is rising, underwriters must become faster at assimilating and analysing information.”
Panel member Chris Warrior stated that, “The volume of information seen by underwriters has soared, due to an increase in submissions and an increase in the volume of publicly available client information. However, cases such as Enron show that you cannot always rely on what is publicly available. The challenge for underwriters is to be smarter at identifying the relevant details in order to rate risk accurately.”
Janet Copping (CPCU) commented that, “Many clients are being asked to accept changes to their programme on a scale they have not experienced recently. Brokers need to keep the client informed during the quoting and market process and make them aware of changes. They must also explain the reasoning behind these changes, and work with the client and underwriter to develop a solution which is mutually acceptable.”
Six Lloyd’s panelists – Chris Warrior, Faraday Underwriting Ltd.; Janet Copping, Price Forbes Ltd.; Janet Helson, Kiln Ltd.; Conor Finn, Markel Syndicate Management; Tim Press, Miller Insurance Group, and Roddy Graham, FirstCity Partnership, answered questions raised by producers taking part on the final day of Lloyd’s fourth Educational Program for U.S. brokers.
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