Ian Bowen, Sales Director for UK and Republic of Ireland at The Innovation Group

After the rocky, disaster-strewn years of 2011 and 2012, many insurers are undoubtedly hoping 2013 to provide a much needed period of respite. Ideally they are looking for a year framed by low catastrophe occurrence, prudent underwriting and a reduction of the economic uncertainty that has been dogging key markets around the world.

However it has not been the easiest of starts to the year. Ripples from catastrophes such as Superstorm Sandy are still being felt by insurers as losses hit US$30bn and continue to climb. Elsewhere the UK and most European economies are still in recession, while both the US and APAC regions are seeing varying degrees of growth.

Low interest rates around the world have also hit insurers, cutting yields on the bonds and related securities that their investment portfolios tend to favour. This has forced some insurers to construct less generous policies, cut benefits and, in some situations, raise prices.

Coupled with these pressures are changing customer demands and an emerging suite of new distribution channels, both of which are driving insurers to constantly innovate in order to remain competitive. In particular, the growing loyalty issues between consumers and insurers a...Read More