A changing regulatory environment
Studies suggest that around 25% of policyholders renew their insurance policies with their suppliers without looking for better offers elsewhere. ( Note: this specific figure in the United Kingdom seems rather low compared to the French market, which in my opinion is much higher ). As a result, this represents £ 37m of premiums that are paid “needlessly” on housing contracts, and up to £ 1.3bn on auto contracts. ( Note: this figure seems abnormally overvalued … ).
The new regulation in place in the United Kingdom requires the display of the premium amount n-1 in the contract renewal information for year n. Thus, this should both avoid the drift of tariff changes and give all the keys to the insured to challenge the tariff or seek better elsewhere. This evolution is seen as a first step before other operations to improve transparency and competition.
Impact of Brexit
Like all other countries, the United Kingdom is significantly affected by the regulatory aspects. The arrival of Brexit, which the insurers did not want, was initially seen as having quite a few impacts. Just after the referendum, 86% of respondents believed that the regulatory aspects, the exit of Brexit would have little effect. However, they are now 1 in 2 to estimate that it may be necessary to take the opportunity to review the texts, including those from the EU, and first, Solvency II.
Moreover, the impact on the industry itself is, for the moment, very limited. Of the actors present in the UK, only 9% have since opened a subsidiary in another EU country. This is not a move that heralds a stronger wave pushed back, as only 3% say they want to do it in the future.
The arrival of GDPR (French RGPD) will have a major impact on how insurers process and manage customer data. However, more than a third of respondents indicate that they have only recently started to comply. It will therefore be necessary to act quickly to avoid fines that will be quite high.
In addition, this evolution can be a good opportunity to overhaul the tools and processes. In addition, there is a real business opportunity to develop new products, such as those related to the responsibility of companies or leaders. The latter products are credited by four out of five insurers as a relevant development target.
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