Welcome to this week’s insurance round-up, curated exclusively for us by Alastair Walker, editor of Insurance Edge.
DOES EVERY COMPANY NEED A HEAD OF DATA?
We only ask the question because during an interview with Albany Group this week IE raised that exact subject.
The consensus was that IT as a department cannot really manage all the data issues that a company has to deal with. As the Colonial Pipeline incident in the USA shows, serious problems can arise from denial of service – it isn’t just about the ransom costs. So maybe a Chief Data Officer should be on your Board to look at the risk landscape ahead?
Just a thought, but a good thought. Let’s crack on with some news.
GAS BOILER BAN WILL CREATE INSURER OPPORTUNITIES
Leaving aside the politics of whether replacing gas boilers with hydrogen heating systems (it all comes from natural gas), the move will create new insurance product demand long-term in the EU and the UK.
The EU issued a statement this week that stated they were backing hydrogen, so the issue of compliance in the Commercial sector, home repairs, replacing systems after a flood or fire etc are all things brokers and insurers need to think about.
Get planning now everyone because the climate agenda will open all kinds of doors in the home insurance sector.
CYCLING IS ON THE UP
Cycle sales are up 60%, according to Slater-Gordon’s news blog and apart from the theft risk, there is lots to think about regarding bike insurance.
Lots of people bought bikes during the pandemic and from a broker point of view, the demand for cover is rising. Partly it is because bikes over £500 in value are usually not covered on standard home/contents policies. But it’s also a lifestyle choice, so there are loads of opportunities for cross-selling here; injury, income protection for self-employed, syncing smartwatch or Strava app data to healthcare or Life policies.
When you think about it, regular cycling tells you something about a policyholder and their intent to get fit, or keep fit. That buzzword Wellbeing is something that cycle insurance brands could build into their products, and reach out beyond an annual theft policy. By offering lots of lifestyle rewards and loyalty discounts you add value – and reasons to keep in touch with customers. Just saying.
RAINY DAYS AND MONDAYS
Fed up of the rain yet? Yeah, annoying. But the fact is, floods via escape of water are the biggest expense for insurers, not rainfall events. Some £1.8m a day in claims bills are down to EOW claims.
One solution is ultrasound scanning of pipework to trace leaks before they get to River Severn levels in your kitchen. REHAU launched a new product that acts as an internet enabled monitoring system, using scanning and data to detect changes in water flow, even offering the option of shutting off water flow remotely. That has huge benefits for social housing and Commercial management companies, as well as domestic homeowners who might be away on holiday while a leaky pipe bursts.
Here’s to a heatwave June, until next time.
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