Page 31 - The Insurance Times January 2022

adequate and affordable fiduciary coverage, whereas it was arm and telematics to determine whether to partner with
once a more routine renewal process. What does this mean? a potential insured.
Ultimately, today's plan sponsors cannot rely exclusively on
fiduciary insurance to fund and absorb these losses. Instead, Personalize response to immediate
plan committees need to learn from this loss trend and take
steps to mitigate risk. needs
Although the full impact of the crisis continues to unfold in
4: Opportunity in offshore wind infrastructure many parts of Asia, the pandemic has already led to a broad
economic slowdown. As a result, an increase in late
The growth of the industry is bringing business sectors
together to make offshore wind farms a reality. More premium payments and policy surrenders has pushed many
workers are needed to maintain and repair these facilities insurers to rush into quick fixes, such as offering refunds on
along with loading and moving, transportation hubs and a portion of premiums for all customers. While such broad
actions may boost customer retention, a more targeted
construction. Even shipbuilding is seeing an uptick in demand
approach could use analytics to prioritize such offers for
for crew and services as laws require specialized ships for
crew, supply, maintenance, service, installation and customers most in need and proactively reach out.
construction of wind farms. The growth of the industry
translates into a growing need for infrastructure and liability This could be more cost effective and strengthen the
protection as a result of the Longshore and Harbor The insurer's long-term relationships with those customers.
challenge is making sure the right insurance is in place for Companies with this capability can also determine the size
the unique exposures that exist. of the premium relief based on the predicted customer
lifetime value. The sudden and visible increase in health and
mortality risks has also created an urgent customer desire
5: Markets rely on telematics and loss control
for relevant insurance coverage. Insurers with established
For the transportation industry, buyers are seeing up to 15%
analytics capabilities could gather customer-reaction data
rate increases for best-in-class risks as well as premium jumps during the first month of a new product launch and use it
and scrutiny for distressed risks. On the other hand, capacity to refresh their campaign analytics model to support more-
to write this insurance continues to grow as more carriers targeted digital marketing and outbound-call campaigns.
enter the market. The auto space as a whole is heavily
composed of distressed risks that can be attributed to a From a technical perspective, insurers that have already
variety of factors including loss history, subpar driver pools, deployed data and analytics use cases have observed that
unsatisfactory CABs and sharp industry growth. For some of their analytical models have become less accurate
companies investing in safety programs and trucking
as a result of COVID-19 because changes in underlying
technology, brokers are more receptive to offering
customer behaviors have occurred at a much faster pace.
significant underwriting consideration, but many markets
For example, segments that were previously deemed safe
turn away from high-risk markets. Ultimately, these factors started to see increasing loss ratios. To address these effects,
play a role in leading markets to rely on their loss control
insurers have focused on increasing their agility to react
quickly: if it took months
to launch a new
analytical model in the
past, it might now take
less than a week.

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value proposition.
Although financial
planning is well
established in many
developed markets, the
concept is relatively
nascent in emerging Asia.

The Insurance Times, January 2022 31