Conditions in financial lines are varied and in some places volatile, and are likely to remain so for the foreseeable future.
Recent volatility in the Australian financial lines market is a reminder of the need to take a strategic approach to placement.
Buyers of directors’ and officers’ (D&O) insurance in Australia have experienced 100-400 per cent price increases, as well as a contraction in capacity and restrictive terms and conditions.
Fortunately for our clients, JLT Australia foresaw this market correction (due to years of under- pricing and an increase in claims) and worked with London-based colleagues to work with international D&O markets to build capacity and ensure continued access to coverage.
The experience of the Australian D&O market is a reminder of the cyclical nature of insurance markets and the volatility of local markets.
By thinking tactically and having a global approach to placing business, clients in all markets can manage these peaks and troughs.
A more sophisticated approach to buying financial lines insurance is also more fitting in today’s risk environment.
Data and analytics
Sharing of knowledge and data globally is now fundamental to advising clients and placing financial lines insurance, whether it’s traditional covers such as D&O, professional indemnity and crime, or fast-growing areas like cyber and M&A insurance.
JLT has been developing data and analytics that are relevant to individual clients, enabling them to make smarter insurance purchasing decisions and benchmark against their peer groups.
Cyber is an area where advice and insurance solutions are particularly sought after following a number of substantial claims and with increased data protection and privacy regulation around the world.
Cyber insurance penetration in Europe remains relatively low – at less than 10 per cent – but the implementation of the EU’s General Data Protection Regulation (GDPR) in May is likely to fuel increased buying.
The global cyber insurance market is predicted to grow from around $3 billion today to as much as $20 billion by 2025, and JLT continues to invest in expertise around the world.
For more information please contact Mark Wood, Global Specialty Head, Financial Lines Group on +44 20 7558 3307 or email firstname.lastname@example.org.