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Can Artificial Intelligence Revolutionise the Insurance Industry?
30-Jan-18
Can Artificial Intelligence Revolutionise the Insurance Industry? Artificial Intelligence (AI) allows a computer to access data and use that to predict outcomes. It also has the potential to respond with a relevant action without additional human involvement. AI can make processes run more smoothly, with no margin for human error and huge scope for intelligent targeting of services for customers. The insurance industry is an ideal candidate to benefit from the application of AI. Deloittes 2018 Insurance Industry Outlook has predicted that worldwide spending from the insurance sector on AI and Cognitive Intelligence (CI) will reach $1.4 billion by 2021; a 48% increase.[i] Many experts suggest that companies that do not invest in this disruptive technology may find themselves left behind – so insurers need to be careful not to miss opportunities. Targeted marketing and customer retention 86% of companies believe that AI will make their marketing strategies more effective in their interactions with customers. [ii] AI can combine data from a number of spheres - including social media and accessible data from current policyholders. It can build up a local knowledge using statistics of the neighbourhood and predict likely preferences based on demographics. AI can use this information to draw conclusions and then target individuals with packages that are ideal for them. In this way, marketing can be honed for each individual. This strategy is especially useful for giving existing customers targeted marketing – very important as customer retention is far less expensive than generating new custom. Underwriting risk   At a basic level, AI can be used to automate services for policy purchases and calculating risks. As technology becomes more sophisticated it is possible to imagine that the Internet of Things [iii] (IoT) in conjunction with AI may be able to assess risk with far more accuracy that the questionnaire style data gathering that is currently used. ...

How will Brexit Affect the Insurance Industry?
30-Jan-18
How will Brexit Affect the Insurance Industry? For the insurance industry, the uncertainty of Brexit is an anxious time. Immediately following the referendum, shares in insurance companies fell heavily, with some insurers falling over 15%.[i] Answering the title question; “how will Brexit affect the insurance industry?” is not straightforward. The simple answer is in fact, “we don’t know;” an unsatisfying answer for an industry that bases its entire business strategy on reliably predicting risk. However, while no one can yet be sure of all the effects, it is possible to make a number of assumptions based on what we already know; and there are advantages as well as concerns. Most insurance companies are now looking to the future positively and strategizing ways in which they can benefit from Brexit. Restrictions for working throughout the EU As a member of the EU single market, UK insurance companies can currently underwrite businesses throughout the EU, on the basis of their UK authorisations. Once the UK exits the EU, this right may end. This is not an insurmountable problem, and it is one that many UK based insurance companies are already seeking to overcome, by creating subsidiaries in the EU. [ii] However, it is certainly an issue that companies need to think about, well in advance of the exit from the EU. There will be a financial cost Certainly, there will be ways in which the industry will feel the financial cost of leaving the EU. This will happen in a number of ways. The weakening pound may mean people are less inclined to engage in activities that require additional insurance. There will be costs involved in changes to structures or policies as regulations may change. Documents will need to be updated and staff will need to be educated about new systems. Some companies may also invest in ways to continue trading abroad, in case reciprocal trading agreements are not reached. However, there are ways in which all these costs can be mitigated by ...

The New General Data Protection Regulation: What is the Effect on the Insurance Industry?
30-Jan-18
The New General Data Protection Regulation: What is the Effect on the Insurance Industry? Collection of personal data from clients is vital to many industries, including the insurance sector. Gathering this sort of information allows brokers and underwriters to offer clients the most suitable products available, meaning that policyholders receive the best service. The Data Protection Directive of 1995 has offered some level of protection to customers and clients, meaning that when they share their personal details with companies, their details are secure. However, the DPD has long been considered outdated by many, with concerns that the directive has not kept up with the risks associated with cybercrime. Only 74% of businesses consider cyber security a high priority (with only 31% defining it as “very high.”[i] However, 46% of UK businesses have identified a cyber breach over the last 12 months. [ii] In 4% of cyber breaches, personal data was destroyed, altered or taken. [iii] Last year, the EU adopted a new regulation; the General Data Protection Regulation (GDPR), which will be enforceable across the EU (and for any companies trading within the EU) from May 2018. This new regulation will allow individuals to have much more control over the data that is collected about them. Huge fines can be imposed for organisations that don’t follow the new legislation. How does this affect the insurance industry? The insurance industry uses personal data from clients to ensure a client centred service, offering packages aimed specifically at their customers (or prospective customers). The sharing and use of data between brokers and insurers is vital to the smooth operating of these companies. However, some changes may be required in order to remain compliant with the new legislation. Tightening of cyber security It is likely that data security is already a prominent consideration for many insurance companies. The financial and insurance sectors already have a better ...

Commercial Insurance Recruiter of the Year!!!!
11-Jan-18
We are delighted to announced that Aston Charles has been shortlisted in the Commercial Insurance Recruiter of the Year category at the prestigious Commercial Insurance Awards 2018. Richard Jones, Director, says, “with finalists from other categories including such well-known names as AJ Gallagher, RSA and Hiscox, it really is an honour.  To be recognised in such illustrious company is testament to our team’s steadfast commitment to offering a best in class service to our client and candidates alike.” Hosted by CIR Magazine and now in its fifth year, the Awards showcase the very best that the Commercial Insurance industry has to offer and includes a Gala Dinner followed by entertainment at the Millennium Hotel, London....

Relax Insurance, you’re in safe hands!
05-Dec-17
Can’t teach an old ish (still clinging to the ‘mid thirties’ title, but closer to 40 than 35…) dog new tricks? Well, I was taught a thing or two recently by a generation my weekend papers call, ‘Millennials’; a generation often derided as work shy, entitled and self-obsessed.   A key client of mine asked me to work on a new national recruitment assignment; multiple Trainee Corporate Development/ Account Executives. Whilst, like any savvy employer, they welcomed applications from candidates of all ages and backgrounds, it was clear to me that this role would have the greatest pull with newer entrants to the industry. Whilst it’s always nice to be asked to represent a global broker (and I have a lot of time for the HR Manager who appointed me so I was genuinely delighted to accept the brief), I must confess that I was perhaps initially a little prejudiced. I’m actually embarrassed that I’d taken popular culture’s caricatured version of Millennials at face value. Would I be inundated by selfie taking hoards, brought up under the illusion that the world owed them a living? As expected, interest in the role has been ‘through the roof’ from all quarters. This much I did expect; my client is a big name, offering structured corporate development, both formal and professional qualifications, and a salary that was so good I had to call the HR Manager back to double check (honestly!) I’ve had applications from school leavers, through to seasoned veterans of the industry wishing to move into a more corporate/ global broking environment. Needless to say, all applications are judged on their own merit with age playing no part in my vetting processes. What has been a pleasant surprise is the quality of the applications from candidates who fall into the ‘Millennials’ category. On the whole, these candidates have between 1-3 years’ experience, and a nicer bunch you couldn’t hope to meet. They come from a wide range of backgrounds - some uni grads ...

Underwriting International Risks: What are the Challenges?
29-Nov-17
Underwriting International Risks: What are the Challenges? Recent decades have seen a massive leap in globalisation, with better transport links and electronic data transfer making vast distances almost insignificant. With these changes it has become increasingly common for businesses to have an international aspect; perhaps offering services abroad, investing in companies from other countries, or importing goods from across the world. While British businesses are expanding their services abroad, there are significant repercussions for the insurance industry. Insurance companies are having to consider in detail the risks that they are underwriting, as more and more of their customers become international. What additional risks need to be considered? Language barriers Working across language barriers is one significant aspect of international risk. Worldwide, there are 200 languages that have three million (or more) speakers, with an additional 1000 languages being spoken by more than 100,000 people. Many countries use multiple languages, with China alone having 7 official languages and another 59 recognised languages.[i] Where a country has multiple languages, businesses need to choose the language of correspondence carefully. Aside from having excellent language use, it is also important to be well versed in the culture – with an understanding of the way in which language is used professionally and colloquially, as well as words that have multiple meanings. Without this knowledge, a direct translation from English to another language could be perceived in a completely different way from its intended meaning; causing offence or misunderstanding. Where individuals and corporations do not understand one another clearly, there is massive scope for error and when big businesses are involved, the financial fallout can be huge. Infrastructure and stability Local infrastructure will have an impact on the amount of risk that is being taken on. For example, where ...

Identifying the Best: How do Brokers Select Insurance Providers for their Clients?
23-Oct-17
Identifying the Best: How do Brokers Select Insurance Providers for their Clients? Insurance brokers rely heavily on a good reputation in order to attract and retain custom. Therefore, the choice of insurance policies that they offer their clients is vital to their business. Recommending comprehensive, affordable products with a trouble-free response in the event of a claim, can gain the broker a reputation of excellence. Equally, a bad customer experience for a client can be very detrimental to the broker’s own good name. A recent series of interviews by Insurance Age, Insurance Post and Insurance Hound, investigated the ways in which brokers choose insurers for their customers. The group documented their findings in a paper entitled “Broker Insight.”[i] They found that many brokers repeatedly used a small selection of insurers and examined the factors used by brokers to decide upon their selection.  Quality of Experience and a Positive Claims Process  Today, customer experience professionals are recognising that customers are putting experience above product and price in their purchase choices. Walker’s in-depth study about customers suggests that by the year 2020, the balance of importance will be 50% experience, 34% product and 16% price.[ii] The “Broker Insight” findings suggest that insurance brokers have anticipated these customer priorities, with most brokers stating that the quality of the insurer’s cover is the most important consideration when identifying insurance providers to recommend to clients. Brokers don’t like policies with numerous exclusions and they prefer policies that have a good breadth of cover.  Brokers are extremely keen that their clients should have a positive experience in the unfortunate event of a claim. The public perception of the insurer claims process is regrettably very negative in the UK, with a recent poll by Dewberry Insurance finding that people tend to believe that only 50% of life insurance claims are paid ...

Electrical Fires: How Can Insurance Brokers Help Landlords Mitigate the Risks?
16-Oct-17
Electrical Fires: How Can Insurance Brokers Help Landlords Mitigate the Risks? A 2011-2014 survey found that faulty electrical appliances caused over 10,000 fires during that three-year period. The top most at-risk appliances were washing machines (14%), tumble driers (12%) and dishwashers (11%).[i]  Household fire hazards are particularly worrying for landlords, who have responsibility for the safety of their tenants as well as a financial investment in the property. The primary objective will be in lessening the risk of a fire starting. However, it is impossible to completely remove the risk and so it is vital to know what to do in the event of a fire as well as having a plan in place for property recovery. Insurance brokers are well placed to discuss the risk of electrical fires with their clients, advising them on how to reduce the risks and keep their tenants safe.  Reducing the risk of an electrical fire There are a number of things that can be done to reduce the risk of an electrical fire. The household electrical system should be checked on a regular basis to ensure that the system is safe. Landlords should also have any electrical appliances that they supply tested regularly for safety. Do not overload one plug socket with too many appliances. Only buy brand new electrical items from reputable suppliers, ensuring that all cables and chargers are the ones intended for the item in question. There have been a number of high profile fire-causing faults in leading brand appliances in recent years. Ensure that you register appliances so that the manufacturers can contact you in the event of a product recall. This list is not exhaustive and it is important that your clients discuss any concerns with a qualified electrician.  What should happen in the event of a fire? While the risk of fire breaking out can be managed with careful safety measures, it is sadly impossible to reduce the risk to zero. Having a fire safety plan is a necessity to ensure ...

How Interest Rates Impact Insurance Costs: Explaining Rising Premium Prices to your Clients
30-Aug-17
How Interest Rates Impact Insurance Costs: Explaining Rising Premium Prices To Your Clients The latter part of 2017 is likely to see insurance brokers inundated with demands for explanation regarding price hikes across a wide variety of insurance products. Being able to explain the relevant issues in a succinct and clear fashion will be vital to retaining the trust – and custom – of your clients through into 2018. Why has insurance gone up? There are a number of factors that have caused insurance premiums to rise over the past year. See our article: “A Guide for Changes to Personal Injury Payouts” for details on how tax, whiplash reforms and changes to the discount rate have significantly affected the costs of pay outs for insurance companies.   Another major issue having an impact on insurance policy prices is the sustained low interest rate we are currently seeing in the UK. Why do interest rates affect insurance? Insurance companies make some of their money from the income that they receive from policy holder’s premiums. The hope is that the policy payments exceed the cost of any pay outs that need to be made in the event of a claim. However, most of their income is made from the returns from investing these policy payments. This allows them, at times, to offer insurance policies at a very low profit, or even at a loss. However, the current low interest rate has seen investment profits plummet. LV=, the UK’s largest mutual, indicated that car insurance is likely to rise in 2017. They declared a massive pre-tax profit reduction for the first half of 2016, falling nearly 98% from 49 million in 2015, to 1 million in the same period of 2016.[i] This type of drop is clearly not sustainable for insurance companies. Many companies have been attempting to become more efficient in the way that they process policies and claims, in order to avoid increasing prices too much. However, limits have been reached and this year has seen companies UK wide having to increase ...

Interview to Impress; How Employers Can Positively Impact Candidates
18-Aug-17
A quick internet search will reveal multiple online articles about “interview techniques” aimed at job applicants hoping to impress an interviewer. However, it’s important to remember that interview technique can be as important for the interviewer as it is for the interviewee. Across the financial sector we are seeing highly qualified and experienced candidates enjoying the benefit of a wide range of employment opportunities and they are in the position of being able to choose between a number of different companies. With 47% of job seekers stating that the job interview gives the biggest impact when it comes to their impression of an employment opportunity, prospective employers need to be ready to interview to impress.[i] Here at Aston Charles, we are adept at recruiting the “best of the best” to apply for your specialist roles. Once they enter the interview room it is over to you. How can you positively impact job applicants, to ensure that you get the pick of the best? Be prepared Read your candidates’ applications to ensure that you are able to ask questions that are pertinent and specific to them. Job seekers often spend many hours filling in application forms. Realising that an employer has taken the time to read it carefully can create a very positive impression. Think about what you want to know and tailor your questions accordingly. A question like, “what is your biggest weakness?” is likely to elicit a response that is – in reality - a positive trait with a negative angle; such as “perfectionism” or “working too hard”. Both you and the candidate will be aware that the answer is not indicative of what you want to know, but they don’t really want to share their weaknesses with an employer! What you actually want to know is probably whether the candidate can recognise their own limitations in order to bring in assistance when necessary; or whether they are adept at finding ways to recover a situation that is not going to plan. Instead of asking about their ...

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