Monte Carlo Survey: How can innovation enable our industry to be more resilient?
In association with Swiss Re, Monte Carlo Today conducted surveys of senior industry executives ahead of and during the conference. Their responses to various questions on the subject.
How can innovation enable our industry to be more resilient?
"The world is changing rapidly and innovation is vital to respond to this dynamic landscape. We must take an entrepreneurial approach to offer solutions with the same flexibility and simplicity as new entrants and insurtech startups, applying modern technology and artificial intelligence where it adds value to the client. That means matching the agility of the newcomer without forgetting the value of the advice, risk management and capital markets expertise refined over time by seasoned insurance professionals."
Grahame Chilton, CEO, Arthur J. Gallagher International
"History tells us that industries that don’t innovate die. So, innovation (an overused term), whether in terms of coverage, product delivery, risk assessment/mitigation, data management or claims handling are fundamental to the industry’s resilience. To innovate as an industry, and provide our customers with relevant and effective product, we need to be constantly curious, and be prepared to be brave. How well does our industry foster that kind of culture?"
Graeme Rayner, group director of underwriting, Pioneer Underwriters
"Insurers must move away from the old way of doing things. We cannot simply pay claims—we need to look at new and innovative ways of partnering with our customers to help them manage their risks. A good example is our work with the Building Research Executive, where we have helped build a flood-resilient home, aimed at raising awareness of all the things policyholders can do to prevent the damage caused by flooding and to bounce back quickly following a flood."
Brendan McCafferty, CEO, AXA Insurance, Intermediated and Direct
"What are the underlying reasons for protection gaps globally and how could the industry tackle them?
In some places insurance is not a cultural norm. In some places it’s just not affordable, and there are also regulatory reasons. Governments are starting to retain less risk, and starting to transfer some of the risk back to the private market. The protection gap is a challenge on such a great scale in the developed and the developing world that it requires an innovative and collaborative approach involving a broad approach including industry groups, governments, and the World Bank."
Charles Cooper, chief executive, Reinsurance, XL Catlin
"Individuals and small businesses often don’t know they have protection gaps until it is too late. A public-private partnership with a carrot-and-stick approach (ineligibility for disaster aid without some insurance) has worked in the past but re/insurers need to do their part as well by being prepared to take on difficult risks. To be successful, we must take a long view of the product development cycle and not be distracted by quarterly volatility that often comes along with long-term success."
Charlie Goldie, CEO Worldwide Specialty, PartnerRe
"Too few organisations use a total cost of risk approach for insurance decisions and governments step in to cover losses. We have more than a protection gap—we have a capital efficiency gap. What’s the most effective tool to deal with economic losses? It’s not always insurance. Looking at post-disaster recovery in GDP, we estimate the capital efficiency gap stands at 25 percent. Insurance analytics, new technologies, and a total cost of risk approach can help assess the best approach."
Greg Lowe, global head of resilience and sustainability, Aon
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