And expected to go higher. For insurers just having to generate extra GWP to cover that and/or reduce costs to is an additional challenge to digital disruption and new competitors.
Look to digital insurance platforms that can deliver delighted customers and collapsed costs as an essential part of the strategy. Better still ones that do not require upfront license fees or capital costs.
Agile, No-Code, Self-Service platforms that the business can control rather than be hostage to the classic £1million minimum and no less than 12 months of typical digital transformation projects.
The direct financial impact of Brexit on major financial services firms, including insurers and brokers, has reached nearly £4bn as of 31 May 2019, according to EY. The firm detailed that this included a cost of £1.3bn to relocate staff and operations, legal advice, contingency provisions and an additional £2.6bn for capital injections to grow headquarters based outside of the UK. According to EY, the actual figure is likely to be higher as only 13 of the 122 firms monitored by its Financial Services Brexit Tracker have put a figure on the direct financial impact of Brexit.