Technology could disrupt casualty insurers’ model
Casualty insurers could lose out if motor companies choose to cover their risks in a different way as technology in that sector advances, Andrew Newman, head of global casualty and co-president of Willis Re, told Monte Carlo Today.
He made the claim in relation to the increasing technology influx to the motor sector, particularly the potential of driverless cars.
He said that there are “some underlying changes taking place in the industry” with regard to technology, which have the potential to “challenge the entire structure of the business”.
Driverless technology will affect the nature of the risk as drivers will be relying on the technology to drive the vehicle.
But if motor companies do decide to work with insurers, it could also represent a huge opportunity to “transform the way motor insurance is processed,” he said.
He also said rates remain soft in the casualty sector, driven by property cat reinsurers moving into the casualty sector in search of growth.
“The margins in the property cat business are going down, and reinsurers looking for growth or to hold their position are seeking diversification”, said Newman, adding that these reinsurers are clearly experiencing the “grass is greener” effect.
This has led to a buyer’s market for the casualty sector, according to Newman, who said clients now “have more choice of what they buy, and who they buy from, than they have had in the last two decades”.
