Page 18 - Insurance Times JUNE 2022

related life insurance products which aware of the threat, but don’t feel it insurance lines due to the COVID-19
serve as an alternative to bank depos- is applicable to them. We expect that, pandemic negatively impacted the
its. This channel has started to gain while interest in cyber insurance will general insurance industry in India in
market share in the general insurance continue to rise, price will continue to 2021.
segment as well.” be a key barrier to cyber insurance
Shabbir Ansari, Senior Insurance Ana-
uptake in the near future.”
The bancassurance business has been lyst at GlobalData, comments: “Gen-
supported by cross-selling and bundling GlobalData notes that, as risk of attack eral insurance industry in India is
insurance products such as home mort- increases, so will the premiums. Given poised for a strong recovery in 2022,
gage insurance, risk life insurance, loan that cutting costs is one of the leading driven by increase in awareness and
amortization insurance and fire insur- causes for policy cancellations, this will demand for health insurance and an
ance. Unemployment insurance cover- be a significant obstacle. economic recovery, which has helped
ing mortgage payments for 12 months automobiles and property demand
Carey-Evans continues: “Even if UK
have also supported its growth. reach its pre-pandemic levels.
SMEs do become more concerned
Examples of bancassurance partnerships about their business being targeted by Personal accident and health (PA&H)
include Bankinter and Liberty's partnership cybercriminals, they are unlikely to be insurance was the largest segment,
in February 2022 to set up a new willing to pay even higher premiums to accounting for 33.8% of general insur-
bancassurance company under the name protect themselves. It is a difficult prod- ance GWP in 2021. It grew by 14.0% in
Bankinter Liberty Hogar y Auto (which is uct for insurers to price, as unlike 2021 due to a surge in demand for
pending for regulatory authorization), the other products, they cannot look to health insurance policies following the
agreement between Mapfre and the limit risk—any SME could be hit with a COVID-19 pandemic. This trend will
Catalan savings bank in December 2021, cyberattack at any time, and the costs continue over the forecast period as the
and an extension of the bancassurance
can be significant.” PA&H segment is expected to grow at
agreement between Caser and Crèdit a CAGR of 11.7% over 2021-26.
The Ukraine-Russia war has only
Andorrà in November 2021.
heightened potential cybersecurity Motor insurance was the second-largest
risks. The UK’s National Cyber Security segment, accounting for 33.3% of GWP
Cyber insurance prices still
Centre (part of GCHQ) advised all or- in 2021. It registered a sluggish growth
too high as almost 30% of ganizations in the UK to bolster their of 2.7% due to lower vehicle sales follow-
cybersecurity in March 2022, specifi- ing the economic slowdown and short-
small-medium UK busi-
cally due to the increased risk posed age of automobile chips globally. The
nesses cancelled policies from the Ukraine-Russia war. motor insurance segment is expected to
in 2021 to cut costs recover in 2022 and grow by 8.8%, in-
General insurance industry line with recovery in automobile sales.
While interest in cyber insurance is cer-
tainly increasing—especially amid in India to grow at 9.9% Furthermore, the expected increase in
heightened risk due to the Russia- motor third-party liability (MTPL) pre-
CAGR through 2026
Ukraine conflict and working from mium rates later this year is expected
home—the price is likely to still be too The general insurance industry in India, to help motor insurance premium grow
high for UK small-to-medium enterprises which grew by 5% in 2021, its slowest at a CAGR of 8.1% during 2021-26.
(SMEs), according to GlobalData. A sur- growth during the last decade, is pro-
Property insurance was the third-larg-
vey by the leading data and analytics jected to grow at a compound annual
est general insurance segment with a
company notes that 38%* of these busi- growth rate (CAGR) of 9.9% from
25.4% share of GWP in 2021. It de-
nesses think it is unlikely that they will INR2,172.03 billion ($29.39bn) in 2021
clined by 5.0% in 2021 due to a halt in
be targeted, while 29%* cancelled their to INR3,484.35 billion ($41.78bn) in
commercial construction activities and
policies in 2021 due to cost cutting. 2026, in terms of gross written premi-
decline in housing demand due to
ums (GWP), forecasts GlobalData, a
Ben Carey-Evans, Senior Insurance COVID-19. There was decline in agri-
leading data and analytics company.
Analyst at GlobalData, said: “The re- culture insurance premiums due to
sults from GlobalData’s 2021 SME In- GlobalData reveals that the sluggish delays in claim settlements and release
surance survey suggest that SMEs are performance of motor and property of subsidies.
18 The Insurance Times, June 2022