AIRMIC finds market hardening slows

The pace of the hardening in the insurance market is slowing, according to a survey by Airmic (the Association of Insurance and Risk Managers in Industry and Commerce).

The UK-based association Pulse survey of its members found the proportion perceiving the insurance market as hard had fallen from 92% in the third quarter of 2021 to 70% in the first quarter of 2022. A slim majority also expected that the market would either improve (22%) or remain consistent (33%) by the end of the year.

Despite this, challenges persisted. Premium rates for cyber had “skyrocketed”, it found, with a tenth of its respondents reporting rate increases of more than 400%.

While satisfaction with insurers and brokers was improving, many also felt the London Market’s IT infrastructure system was unfit for purpose. A third said it was not fit at all, and 67% said it was not but was gradually improving.

More generally, Airmic warned digital transformation was challenging traditional players.

“The pandemic-driven surge in the use of digital technologies by member organisations, many of which adjusted at short notice to remote working, has accelerated the longer-term trend towards digital transformation,” the authors wrote. “As our respondents underscored, current insurers stand to lose business to more modern, agile insurance competitors who are without legacy systems, unless they also up their game in the digital sphere.”