Brexit referendum one of 50 challenges facing insurers
The uncertainty around the so-called Brexit referendum, which could result in the UK leaving the EU, the challenge of realising value from M&A and the pitfalls in implementing the Insurance Act are just some of 50 challenges facing insurers, according to a report by DAC Beachcroft.
The Insurance Market Conditions & Trends 2015/16 publication also considers how the 'internet of things' could reshape the insurance cycle, new liabilities associated with 3D printing and wearable devices, and the implications for insurers of the proliferation of mega-cities.
The 50 predictions cover 13 different areas of insurance business, from property, marine and casualty to product liability, professional liability and reinsurance.
David Pollitt, partner and head of insurance at DAC Beachcroft, said: "Making predictions about the future of the insurance market is not for the faint-hearted but this is what we asked our insurance experts to do.
"Take cyber risks, for example, we think evolving data protection law could really boost cyber insurance policies, with data breaches set to become more costly.
"We're also predicting that autonomous cars will herald a change of gear in assessing risk in motor claims, with greater emphasis on the vehicle."
The report has included, 'grey swan' watermarks for the first time, in order to identify predictions that DAC Beachcroft believes could develop into seriously disruptive events.
Four thought leadership pieces are also included in the 65-page publication in which the firm's specialists call for greater co-operation in tackling arson, discuss the exposure of liability insurers as cyber risks rise, warn of the dangers of M&A and debate the revolution in transport as vehicles, planes and ships become autonomous.
