Climate change and cyber warfare risks are two key London market issues highlighted by the International Underwriting Association (IUA) in its business plan for 2020.
The association said it is establishing a new market group to examine the growing impact of climate change policies on a range of insurance activities, including investment, underwriting and risk management.
Meanwhile, cyber – particularly cyber warfare – continues to dominate IUA member discussions across a wide range of different lines of business, said the association in a statement. As a result, a research paper on cyber warfare and model cyber clauses are part of the 2020 business plan.
“The business challenges facing companies are evolving, and the work of the IUA is changing to reflect this. In 2019 the Prudential Regulation Authority called on insurers to develop a strategic approach to managing the financial risks from climate change, and our members are responding. More than 20 companies have already nominated representatives to our new committee on this subject,” commented Dave Matcham, chief executive of the IUA.
“Questions around the challenge of covering cyber risks are being asked across the London company market and will feature prominently in the IUA’s work throughout this year. Indeed, we will producing an overview document for members that allows them to monitor the many different cyber projects that are being pursued across our 20-plus underwriting groups,” he added.
Other research and best practice projects planned by the IUA in 2020 will cover delegated authorities, developing technologies, illegal ship-to-ship transfers and the discount rate.
The association’s public policy work will include updating members on regulatory developments as Brexit is confirmed. Attention will be increasingly turned toward the shape of a new trading relationship between the UK and the EU and opportunities for company market interests to be featured in new trade negotiations across the globe, said the IUA.
In a post-Brexit environment there will also be a greater possibility for a more independent UK approach to international trade restrictions, and the IUA’s sanctions database will therefore be expanded.
On business process reform, 2020 will see the IUA participating fully in projects such as claims processing that are being developed as part of the Future at Lloyd’s blueprint but have important consequences for the whole London market, said the association.
The London market’s Platform Placing Ltd. (PPL) system, meanwhile, remains the principal vehicle to deliver e-trading, and the coming 12 months are likely to see significant enhancements to the platform to make sure it can deliver an effective “end-to-end” digital solution, said the IUA.
“Over the past five years membership of the IUA has increased by around a third and is now at a record level,” added Matcham. The IUA represents international and wholesale insurance and reinsurance companies operating in or through London.
Source: International Underwriting Association
*This story ran previously in our sister publication Insurance Journal.