Morning Briefing: Don’t let regulation curb innovation says Lloyd’s chief

Don’t let regulation curb innovation says Lloyd’s chief… Zurich joins cyber risk partnership… Canadians split on satisfaction with homeowners insurance…

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Don’t let regulation curb innovation says Lloyd’s chief
The chief executive of Lloyd’s of London says that the mutual insurance sector should not “hide behind regulation as a reason not to innovate.”

Speaking at the Reinsurance Officials Meeting, held by the International Cooperative and Mutual Insurance Federation, Inga Beale said: “The cooperative and mutual insurance market plays a vital role in covering people all over the world. Representing 27 per cent of the global insurance market it represents an amazing presence across the world.”

She warned that “an estimated 43% of the world’s countries do not have mutual or cooperative law. Protectionism is not good for these countries.”

Beale also urged the wider insurance industry to recognize the shift in power from insurers to consumers as wearable tech and social media increasingly provides data for the industry.
 
Zurich joins cyber risk partnership
Global insurer Zurich has joined a partnership aimed at focusing expertise from private and public sectors to tackle cyber risks.

The insurer will be a key industry consultant to the partnership, which also includes the University of Maryland and the National Institute of Standards and Technology.

“The knowledge gained will help provide benefactors such as government procurement agencies, insurance/reinsurance underwriting companies, financial institutions, and rating agencies with evidence-based guidance for securing their cyber supply chains,” Sandor Boyson, research professor and Supply Chain Management Center co-director.

The new project builds on an existing Cyber Risk Portal, administered through the University of Maryland, which collects data by allowing participating businesses to anonymously upload information to compare their cybersecurity capabilities to the existing NIST Framework, as well as to their peers and competitors.
 
Canadians split on satisfaction with homeowners insurance
The level of customer satisfaction with homeowners insurance in Eastern Canada has improved but has declined in Western provinces.

The latest report from J.D. Power shows that overall satisfaction in the Atlantic/Ontario region improves to 768 out of a possible 1000 in 2016 from 759 in 2015, while satisfaction in the Quebec region jumps to 797 from 777.

In the Western region, satisfaction drops to 732 in 2016 from 745 a year ago. Price is the leading cause of the drop in satisfaction, suffering a 23-point year-over-year decline.

“The Western provinces have had some very severe events in recent years, like the current Fort McMurray wildfire, which have caused significant financial losses for insurers,” said Valerie Monet, director of the insurance practice at J.D. Power. “From a customer perspective, price satisfaction hasn’t improved over the years, and data suggests that many insurers have not had time to focus their efforts on improving the customer experience after the upheaval these claims events have had on their business.”
 

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