Novae Group PLC launches first industry survey - 'Looking Forward'
February 15 2013 - 5:15AM
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 economy to innovation, regulation and scale.
Some of the key themes to emerge from the research are as
follows:
-
"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."
-
"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."
-
"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
About Novae
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.
This
announcement is distributed by Thomson Reuters on behalf of Thomson
Reuters clients.
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the
information contained therein.
Source: Novae Group plc via Thomson Reuters ONE
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