Twenty or so years ago, a London market marine underwriter declared he was going golfing one particular afternoon because he had reached his annual capacity level. That was an underwriting model commonly used in the Lloyd’s and London markets.Executive SummaryCompanies need to maintain rigorous underwriting discipline during soft markets, hard markets and everything in between. And since many young underwriters have never seen a hard market, it’s important to focus on training them in the fundamentals of broking, according to executives from Hiscox Re and Swiss Re.
Underwriters sat in their boxes at Lloyd’s or at their desks and waited for risks to come to them. Once they achieved their business plan for the year, they spent their time as they wanted.
While that model of underwriting should be long gone, it still exists in the market, according to Mike Krefta, CEO of Hiscox Re and ILS in Bermuda.
“That is how an industry becomes disrupted. That is a level of complacency that encourages disruption and deserves disruption,” he emphasized.