One thing we love are market trends and spotting them often comes down to watching what big brands are doing. Moves from Zurich on business travel this week might point the way ahead for the travel cover market.
OK, let’s get to reading the runes.
START: HELLO, IS THAT ZURICH, LONDON COMMAND?
If proof were needed that mass market travel is in decline and business/HNW travel is on the rise, the move announced by Zurich this week is a clear indicator in the Insurance Edge tea leaves that the future is Concierge-level cover.
Zurich is opening a 24/7 World Command Centre in London, which is a smart move if you expect lots of exemptions on Vax Pass regs, testing, quarantine and more for VIPs – or you expect the rules to change at the drop of a hat. In which case, companies and HNW individuals will need to make a claim for all that lost time and business if they become stranded in Spitalfields or locked down at Luton airport. Nightmare.
RUN: AON-WTW DEAL HIGHLIGHTS REGULATOR POWER
Two events this week highlight the increasing power of regulators. The collapse of the Aon-Willis Towers Watson deal was down to opposition from the US Dept of Justice, acting on the request of the US government of course. It’s interesting that in a country where Google completely dominates online search and Microsoft has a big chunk of the admin software market, there is resistance to consolidation.
Here’s another thing; this week the FCA announced it was seeking comments on its idea to make financial companies explain themselves in writing if they hired a white bloke to their Board of Directors.
Not only are regulators gaining more power over the day-to-day running of companies, but they are sometimes influenced by political activists, not the consumer champions of old like Martin Lewis or Which? magazine. The landscape of regulation is changing and brokers. MGAs and insurers will all have to adapt to a new normal.
GROW: ELECTRIC CAR BUYERS KNOW WHAT THEY WANT
If you’re a broker or insurance brand active in the Motor market, then it’s good to know who the buyers are, as opposed to online tyre-kickers and dreamers.
Buy-a-car did some research and found that buyers of cars like the Honda E, Nissan Leaf or Renault Zoe don’t take many searches online to find their car. That got us thinking; maybe the same decisive thought process would be applied to insurance too. Could be something wrapped up with the lease package, could be something that covers an essential feature – like battery pack replacement five years down the line perhaps?
EVs are a new market in some ways, so it’s worth remembering that the old rules surrounding petrol/diesel car ownership don’t apply.
GROW SMARTER: FINANCIAL CRIME CAN COST 1.7% OF TURNOVER
When you have tough times, then financial crime and fraud always rises. It is a truth that has been observed by BAE Systems and many other companies who specialise in fighting fraudulent claims and cyber-crimes like hacking data, ransomware etc. Law firm DWF sent IE mag some research this week that showed fighting financial crime can cost bigger companies about 1.7% of turnover. That is a great deal of money. Smaller companies still spent about 1% by the way and remember that’s turnover – not profit.
The solution for many insurers and brokers is agile software, that flags up suspicious patterns of data flow, devices/addresses being shared on multiple claims for example. By automating your systems, from quote to claims settlement, you burn less cash, and less time, when it comes to fighting fraud.