Challenges ahead, warns ArgoGlobal

The industry is facing a number of key challenges over the next few years—but ArgoGlobal is well-placed to handle them, Matt Harris, group head of international operations at the company, told Monte Carlo Today.

“We are focused on the performance of Syndicate 1200, our Lloyd’s platform,” Harris said.

“We’ve taken a number of very positive actions over the past 18 months to improve that business and to drive an improvement in margins out of that platform.”

In terms of themes at the Rendez-Vous, he said it is no surprise that rates and digitisation are topping the list, as well as new market entrants.

“That is going to be one of the fascinating things to watch over the next 12 months. We’ll see some of these well-established industry names forming new distribution in a market that is already quite crowded with distribution alternatives,” he said.

Harris thinks it will be interesting to see how these players differentiate themselves and whether they use digitisation to lower friction costs.

However, he said, the greatest challenge in the industry, outside of cyber, is keeping multiple steps ahead when it comes to understanding risk, so that they can help educate clients.

In the cyber space, he said, the challenge is around understanding the kind of exposures businesses have. Most carriers now have established business verticals with underwriting expertise.

“ArgoGlobal is no different, with some very strong underwriters now beginning a cyber push,” he said.

“It’s going to be a key growth area for the industry through the next two to three years, and it will be interesting to see what kind of events emerge,” Harris concluded.

“One thing we know for sure is that there are going to be cyber incidents. I expect the industry will learn more about the ultimate cyber exposure from one incident to the next.”