Page 23 - The Insurance Times September 2024
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(UY) 2013 to 2021, only 2% of reported smoothing out the impact of major bal Service Proposition will help Aviva
losses exceeded $10 million, but these losses and providing a more stable view GCS to diversify internationally, accel-
accounted for 29% of the total loss of a portfolios performance over time. erating the growth of its Multinational
amount. Insurance statistics from IUMI reveal and delegated underwriting authority
Similarly, the 2021 Suez Canal blockage specific challenges within the marine (DUA) business.
by the Ever Given ship, while the hull hull insurance market, particularly dur- By bringing together DUA and Lead
insurance claim was manageable, had ing soft cycles. These cycles, driven by Multinational, Aviva plans to further
significant implications for global trade factors such as reductions in hull value, grow its Global Service Proposition and
and supply chains, leading to financial premium rates, and overcapacity, con- support business around the world. In
impacts well beyond the marine indus- sistently affect the markets perfor- addition, a refreshed Captives propo-
try. mance. sition will be launched later this year.
Xing notes that, while it may not always Over time, shifts in reinsurance market Led by Director of Multinational
be feasible to estimate the severity of capacity and intense competition fur- Belinda Steedman, the service propo-
losses for every underwriting year, it is ther contribute to these cycles, com- sition maximises Avivas existing inter-
national capability, helping it to better
possible to gauge the impact of major plicating the landscape for marine hull support brokers and customers. In re-
losses over a more extended period. insurers. cent years, Aviva has been laying the
Data from IUMI and the Nordic Marine Xing and Swiss Re Asia, in collaboration foundations to support its Lead Multi-
Insurance Plan (CEFOR) indicates that with GIA Singapore, continue to em- national ambition. This includes rein-
the average major loss ratio to the phasize the importance of understand- forcing its network to ensure it has
value of the marine hull book is around ing these dynamics as the industry partners in all key territories to write
13% annually for UYs 2013-2022. navigates the challenges posed by an expanding lines of business, and
evolving and increasingly complex ma-
This figure, while dynamic, suggests reengineering ways of working to de-
that a 10-20% major loss ratio is gen- rine environment. liver the best service to brokers and
erally acceptable in marine hull insur- customers.
ance costing, both in direct and rein- Global insurance market Aviva already has a large portfolio of
surance portfolios globally. poised for strong growth: Property Investors international busi-
ness, with a significant book of P&C
If major losses are excluded, the Munich Re study
attritional loss ratio tends to be more A new study by Munich Reinsurance programmes and a partner network
stable and predictable. However, there Co. has indicated that the global insur- covering 150+ territories and 95% of
the worlds GDP. In addition, the in-
can still be volatility, as seen in the ance market will see solid growth surer is growing its Specialty & Finan-
higher attritional loss ratios during UYs through 2020 as emerging nations cial Lines Multinational business.
2014-2018. gather speed, reported Artemis.bm.
Avivas new Global Service Proposition
Xing attributes this to additional fac- However, growth in the reinsurance underpins the critical accelerators to
tors such as fluctuations in hull values, market will not be as fast, the study its GCS business plan, while the recent
changes in direct market insurance revealed. Munich Re expects the prop- acquisition of Probitas represents a sig-
capacity, and broader economic influ- erty/casualty insurance market to nificant growth opportunity for the in-
ences like inflation, all of which contrib- grow by 50% reaching ¡ 1.85 trillion surer, with access to the Lloyds mar-
ute to performance volatility within ($2.39 trillion) by 2020. The study also ket, international licences and broader
the marine insurance cycle. forecasted insurance and reinsurance distribution networks.
growth to be considerably stronger in
The interplay between major losses emerging economies.
and the marine insurance cycle is criti- Join
cal to understanding the volatility in a Online Certificate
marine hull insurance book. Major Aviva Launches Global Ser- Course on
losses introduce significant vice & Specialty Proposi-
unpredictability, making it challenging tion Marine Insurance
to forecast short-term performance
Aviva has created a new Global Service
accurately. For details please visit
Proposition within its Global Corporate
A long-term perspective is essential, and Speciality (GCS) business. The Glo- www.smartonlinecourse.co.in
The Insurance Times September 2024 21
