Delays cause risk managers to “rethink their programmes at very late notice”
The CEO of Airmic John Ludlow has criticised insurers for holding up renewals by not telling policyholders that they have decided to cut back in certain lines.
“People have been having to rethink their programmes at very late notice,” Ludlow said, adding: “The communication’s maybe not been handled well enough.”
Fujitsu’s risk manager and company secretary, Lynda Lucas, said insurers would lose out by not telling clients about the “patchy reduction” in limit and not respecting “so called long-term relationships”.
“I think the result is that there will be a bit more risk management going on and I think that business might not end up back in insurance,” she said.
Airmic’s CEO, Ludlow, said members had been surprised by the lack of notice and - “to a lesser extent” - price changes.
“Some buyers have found that the market is absolutely fine and life carries on,” he said. But he noted that some had found certain lines “really tough”, blaming insurers for changing their strategies.
“In terms of the pricing generally, I don’t hear too much gnashing of teeth,” he said pointing to directors and officers cover in particular, which saw years of price declines until a recent uptick in premium bills.
However, he acknowledged that there was a firming in pricing. “This year we’ve been seeing some more challenging renewals in some industries and in some lines,” Ludlow said.
“It seems that the dash for market share is over and underwriting decisions are more discerning.”
“This may be uncomfortable but ultimately, it’s a good thing for risk and insurance managers,” he went on.
“It’s in these conditions that experienced insurance buyers can really demonstrate their value.”