Climate risk, business interruption, regulatory changes and pandemic response are all topics that are both of concern to London company market clients and set to be addressed by the IUA in the months ahead.
The association’s Climate Risk Committee will continue to cooperate with regulators as the insurance industry’s supervisory rules in this area are further developed. On cyber risk the IUA intends to publish research looking at supply chain risk and claims series clauses as well as continuing its discussions on available coverage with the National Cyber Security Centre.
Dave Matcham, chief executive of the IUA, said: “Our most important task is assisting our members to effectively transfer and help mitigate the most pressing risks faced by their clients. There is a close correlation, therefore, between the targets in our business plan and the problems that keep risk managers awake at night.
“These issues have each been the subject of regular dialogue between the IUA and government and are the subject of specific actions points throughout our workplan for 2022. We will also be representing our members’ views as the UK continues its post-Brexit examination of Solvency II and the future regulatory framework for insurance.”
Elsewhere in the IUA Business Plan for 2022 are a number of initiatives supporting the digital transformation of central processing services in the London Market. These will largely be conducted through a new joint venture agreement with DXC Technology and Lloyd’s. The next 12 months will also see a renegotiation of the contract under which IUA members use central processing services (known as FERN 2).
Meanwhile, the association’s public policy work will include responding to proposed changes to regulatory reporting requirements, including the introduction of specific rules for cyber underwriting, operational resilience and climate risk. The IUA will also argue that any new ‘Consumer Duty’ introduced for UK insurers must be appropriate and proportional for the wholesale commercial market.
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