Weekly News Roundup – 9th July
This week, the FCA has fired warning shots at insurance intermediaries revealing that serious action will be taken following widespread non-compliance to client money rules. Cyber insurance continues to dominate the front pages (and there are two articles for you to digest on that subject). There is also a powerful opinion piece around ‘broken broking’ and what the industry needs to do to change. Enjoy!
FCA issues stern reminder to general insurance intermediaries (Source: Insurance Business Magazine)
In a Dear CEO letter the regulator firmly reminds insurance intermediaries of what is expected of them regarding their client money obligations.
Cyber insurance industry predicted to exceed $20bn GWP by 2025 – GlobalData (Source: Insurance Times)
The pandemic has triggered a ‘permanent shift’ in the way businesses operate, which will push the demand for commercial and personal cyber cover.
7 major cyber insurers form company to coordinate cyber analysis, risk mitigation (Source: Insurance Journal)
CyberAcuView plans to help the industry develop best practices in the cyber space to ‘enhance value and service to policyholders’, as well as analysing trends and data to enable a competitive market.
EIOPA: pandemic has caused uncertainty in the European reinsurance sector (Source: Captive Insurance Times)
A recent report from EIOPA has indicated lingering effects of the COVID crisis has led to a severe decline in the capital position of reinsurers and that this will be exacerbated by risks related to cyber and climate change.
Insurance broking is broken and needs reform (Source: youTalk Insurance)
Ed Halsey, the Co-Founder of a challenger broker, argues that customer trust is gone and that brokers need to take drastic action, including making commissions a flat fee, to build that back up again.