This week has seen green shoots of recovery in the travel insurance sector, a drop in detected insurance fraud, plus an interesting partnership deal in Gibraltar. Let’s get into it.
START: TRAVEL COVER STILL UP IN THE AIR
Although the traffic light and quarantine/testing system has been pretty much relaxed this week by the UK government, there is still a question mark over the travel insurance sector. Just Travel Cover sent IE news this week that there was a return in bookings for winter sun this week, plus customers want to book two holidays in 2022.
But the black swan on the horizon is climate change. Activists are not going to keep quiet about the impact of the travel sector on the planet. In short, you can expect Insulate Britain-type protests next year at airports and seaports too, plus new green taxes on holidays as politicians see a chance to look virtuous and gather up more cash to service COVID-19 debt.
For brokers in the travel market, there are still challenges ahead.
RUN: ABI FRAUD STATS SHOW TECH CAN WORK
The latest fraud stats from the ABI were published this week and they made interesting reading. Detected fraud was down 10 percent in 2019, to the lowest level since 2007, despite the UK population rising substantially since then.
IE has no doubt that the deployment of technology, from dashcams to Ring doorbells, automated data analytics, smartphone location data, and stacked data, where previous IP addresses, email accounts, claims history and linked names can be layered on top of each other, is all part of the reason for some fraud becoming less lucrative.
It was also refreshing to see cases like the attempted fraud in York, where the failed claimants were obliged to pay ten grand in court costs. Contrast that situation in the UK with Ireland, where fake claims bingo is still a game without consequences for the vast majority of would-be injured parties.
GROW: GIBRALTAR WANTS TO DO INSURANCE BUSINESS
IE magazine chatted earlier this year with Albert Isola, the `get things done’ Minster for Digital and Financial Services on Gibraltar. This is a location which wants to do business with the EU and the UK and welcomes more insurance newbies to the fold. So, it’s no surprise to learn this week that Insurtech UK has negotiated a deal to help start-ups thrive on The Rock.
For brokers and MGAs keen to utilise the cheap investment money slushing around the world right now, by developing new insurance products, the matter of compliance – automated on digital platforms – can be a tough gig in terms of time management. If you can get help with that then it leaves you free to create the good stuff online. Just saying.
AND FINALLY: WFH ISOLATION IS A REAL THING
The insurance industry has embraced working from home and for many, it’s a great relief not to commute using Britain’s dangerous, dirty and unreliable public transport network. The roads aren’t much better either.
But spending 5 days a week in your spare bedroom, glued to a PC or laptop can be a bit lonely too and so this week’s story on the insurance industry karting day, acts as a reminder that brokers and insurers alike need to find ways to bring staff together. Some fresh air, even in winter, is welcome and a competitive activity is a fantastic way to boost morale, plus spot future team leaders within your organisation. There is a value is making people feel like they are part of something bigger than themselves and their own little online world, even if there can be only one winner, yes, congrats Adrian Flux.
On that Top Gear style bombshell, we bid you farewell.