Some squalls on the horizon for 2022 according to Fitch.

"According to Fitch Ratings, profitability within the UK non-life company market will worsen as a result of high claims inflation and an increase in claims frequency – following the lifting of the UK’s lockdown, claims levels are working towards reaching pre-pandemic levels, it said.

Plus, the agency believes the incoming pricing rules from the FCA “could lead to short-term pricing volatility in the household and motor insurance markets in 2022”.

Insurance Times November 2nd 2021


Fitch continues:- 

"Deteriorating Our sector outlook for the company market is deteriorating, reflecting our view that weak pricing, rising claims costs and low investment yields will exert downward pressure on earnings in 2022. These issues are likely to be exacerbated by the new FCA fair-pricing rules, which we expect to lead to pricing volatility and a reduction in profitability in the short term. London Market Sector Outlook: Improving Our sector outlook for the London insurance market is improving, as pricing increases continue to outpace loss cost increases. We expect pricing conditions to remain favourable in 2022 but we believe that the momentum of price increases will begin to slow. Profitability will continue to be supported by improved market discipline but there are still a number of challenges, including increasing inflation, uncertainty over the ultimate costs of pandemic-related claims, and ultra-low investment yields. "

All the more reason to choose the best technology partners to help achieve goals of increasing customer satisfaction, increasing effectiveness and being more efficient- all whilst improving combined ratios and other key performance indicators.

New core insurance, MGA and broker platforms that include no-code/low-code benefits and transactional/subscription license models without Capex burdens are a great benefit. Some examples are listed below.

Quote & Buy, MTA & Renewal Platforms like Go-Insur, HUGHUB, iptiQ that enable an insurer to allow a customer to interactively manage all their policies from one dashboard

Digital Claims Platforms Synergy Cloud, RightIndem, Snapsheet, ClaimsGenius, Salesforce Industries, Five Sigma, 360Globalnet, Claims Technology etc

Home Ecosystems Providers: CoreLogic, Verisk

Auto Ecosystems Providers incl. telematics data exchanges: Verisk, Lexis Nexis Risk Solutions, Mitchell International, CCC Intelligent Solutions and Arity

Point Solutions: Weathernet, Tractable, Audatex/Solera, Shift, Friss Sprout.ai, Solera and many others

Telematics Service Providers: Octo, IMS, True Motion, Cambridge Mobile, Vitality Drive and The Floow

Shared Mobility Systems: Uber, Lyft, Enterprise CarShare, Zipcar, Car2go, GIG, Turo, Getaround

Combined claims services and technology providers Crawford & Company, Sedgwick, Davies Group, Claims Consortium Group. Control€xpert, Robertson & Company etc.

No-Code/Low-Code app building platforms from CodeEast, Unqork, 

Embedded insurance Wrisk, Qover, etc


Further Reading

Scouting platform for insurers seeking global insurtechs from Sønr 

Sønr, Altus DigitalBar and consumer research demonstrate that BoughtbyMany offers lessons for all insurers, brokers and insurtechs

Motor insurer digital maturity, touchless auto claims and customer satisfaction  

Innovation, home insurance digital maturity and customer satisfaction ratings