The last decade saw a buoyant, soft insurance market with low premiums and accessible solutions; however, it is clear that the 20s will be a contrasting decade with a harder insurance market as the macro environment becomes increasing turbulent and the effects of past underwriting decisions becomes apparent.
Already the implications of a tougher market are causing insurance premiums to rise, and in some cases remarkably. As Regis’ Mutuals work in partnership with the insurance market, any price increase will naturally have an impact on Members’ contributions. However, Mutuals exists to serve Members’ needs and they are always focussed in their mission to provide a fair price to their Members. Also, a Regis managed Mutual has some resilience to the increase of insurance pricing due to the pooled retention layer which does not impact on the insurance market as it is largely dependent on actual claims made by its Members.
We also remain hopeful of, and have witnessed, a trend between premium price increases and demand for alternative risk solutions, including a greater awareness and confidence in self-retained risk management.
It has been well documented that cyber and the effects of climate change will be the largest emerging risks for 2020. Whilst some of these risks have previously been absorbed within historic wordings, there is now an increasing demand for them to be isolated with distinct products and appropriate levels of cover. Members of our Mutuals will need adequate cover and additional products to reflect these growing trends and we are working with our insurance partners as well as our Members to meet this need.
Ownership, control and transparency are words often mooted in the insurance markets but given very little credence – but the world is shifting its view on corporate behaviour. I believe 2020 will see a significant increase in demand from clients to have greater control over how their money is spent. As technology fuels transparency, clients will be turning to the financial markets to prove their integrity and this will give more opportunities for companies to self-manage their risk and reinvest any savings back to their customers or colleagues.
Regis’ 2020 vision
2020 will be a year of dealing with the effects of a turbulent market. We will be working with the boards of our Mutuals to deliver financial stability and efficiencies. Partnership is critical for our success; partnership with our Mutuals and our Mutual Members but also with our insurance market partners.
We are pleased to continue working with our mutual collaborators, such as ICMIF and AFM, supporting the excellent work they do.
We remain focussed on our mission to provide choices to our clients and their Members, future clients and Members, and more choices for our staff.
What is my vision for 2020?
My personal vision is simple: encourage associations, businesses, financial markets and insurers to explore the benefits of mutuality: to ignite the passion across the sector that I and my team feel. Mutuals offer choice, opportunities and transparency – these are all things that excite me.
To find out more about Regis visit: www.rmml.com