Efforts to boost the development of innovative insurance products in the London Market have received the support of UK risk managers. The board of the International Underwriting Association discussed the challenges of providing cover for emerging risks at a recent meeting with the Association of Risk and Insurance Managers (Airmic). Both organisations agreed a collaborative approach would encourage innovation and allow London to build on its reputation as a global centre for the development of new policies.

Dave Matcham, chief executive of the IUA, said: “The London market is currently developing a plan to make it a more attractive destination for international re/insurance business. A key part of this focus is attracting the best talent to the market so that it can continue to evolve and develop product offerings in response to changing business
needs.

“But innovation rarely happens in isolation. While individual companies are, of course, developing their own new products, such is the likely scale of demand for coverage of emerging risks like cyber [risk], a wider market response also seems worthwhile. In that regard the IUA will invite representatives from the Lloyd’s market to join in this initiative.

“The co-operation with Airmic members will be a great asset as we seek to address the competitive challenges laid out in the recent London Matters report published by the London Market Group.”

Welcoming the collaboration, Airmic chief executive, John Hurrell commented: "Airmic members are increasingly being kept awake at night by emerging risks where currently there are no or inadequate insurance solutions. These are often difficult risk areas for potential underwriters as there is a lack of relevant historical data and exposures are uncertain.

“Against this background, we welcome plans for a more co-ordinated market response to looking at these risks and a willingness for underwriters to work with potential policyholders to develop appropriate and effective responses to these growing needs. Airmic members will be very pleased to participate."

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