New capacity still on the agenda at RIMS

The influx of new capacity into the market remained a big talking point at RIMS this year as new entrants continue to enter the space.

“Particularly in my market sector, there are a lot of new entrants, so difficult conversations about premiums dropping and wordings getting broadened are inevitable,” said Neil Evans, senior class underwriter, crisis management at Talbot Underwriting.

He added that the influx of new capacity into the kidnap & ransom and piracy market is making it harder to win business.

“There is plenty of capacity and not enough business but it is still early days,” he said. “It will be interesting in three years’ time to look back and see who’s still writing business and whether it is profitable for them.”

Despite the competition, he and his colleagues intend to grow their kidnap & ransom book, partly by optimising on its synergy with other areas such as terrorism, marine, personal accident and energy.

“We will be looking to work with our existing relationships internally as well as marketing directly to the brokers that hold the business, so it’s definitely a growth area for us in the next three years,” he said.

He added that there is still some untapped potential within kidnap & ransom, particularly from China, which is spawning a growing number of wealthy travellers.

While capacity is a key topic, the focus on recall liability insurance – an area that is generating a great deal of demand from clients in the field of automotive manufacturing, where Evans sees particular growth potential, was also a key talking point.

“What’s interesting is that the manufacturers are increasingly demanding that as a supplier you have some form of recall insurance,” he said. “That’s a new area for us and, unlike the food and beverage market, there are a limited number of underwriters writing this segment, particularly in London. That will be a good development area for us this year.”