Regulatory developments, such as the EU’s new data protection law, will dominate priorities for the London company insurance market in 2018, according to the International Underwriting Association in its annual business plan.
While preparations for Brexit will continue to require a great deal of attention, the year also will see firms adapting to several other major changes to the supervisory environment, said the IUA, the association that represents international and wholesale insurance and reinsurance companies operating in or through London.
The IUA also highlighted that 2018 will be a pivotal year to prove that initiatives to modernize London’s business processing can deliver promised savings and efficiencies.
Dave Matcham, chief executive of association, said: “2018 will be an incredibly busy year from a regulatory perspective. The need to establish mutual market access between the UK and EU and agree an implementation period before a new trading arrangement post-Brexit are incredibly important.
“In addition, at least three significant new regulations become effective during the year: namely, the General Data Protection Regulation, the Insurance Distribution Directive and the enhanced Senior Insurance Managers Regime,” he said.
The market’s priorities for technology involve accelerating the use of new Target Operating Model (TOM) infrastructure projects, so that they can move towards a sustainable “user-pays” funding model, the IUA said.
“The TOM program can only be successful if e-placing is widely used and supported by enhanced capture of data in a structured manner. Growing volumes and take-up for Placing Platform Ltd. is clearly a top priority,” added Matcham.
“However, another very important project for 2018 will be completing the re-platforming of the Insurers’ Market Repository,” he said. “Our members place huge reliance on the repository and it is, therefore, imperative that this process proceeds smoothly and does not cause market disruption.”
The IUA business plan also highlights the need to recognize changing risk profiles in maintaining best underwriting practices. Further, a number of claims modernization initiatives will be considered in an effort to improve customer experience and a voluntary Single Claims Agreement Party policy clause will be rolled-out.