In the news - Aaron answers the big question

This week Insurance Times asked experts about challenges brokers face and what can be done to mitigate evolving threats. One of the experts interviewed was our very own, Aaron Woodhams, chief underwriting officer!

In the interview he discusses how, recently, the soft market trend, particularly in the mid to high net worth (HNW) home segment, has caused premiums to decrease, resulting in a substantial number of policyholders having underfunded premiums. As a result, certain insurers and capacity providers are encountering difficulty in achieving a satisfactory return on their capital.

Aaron continued to say that because of this:

“Some are exiting specific arrangements or implementing substantial across-the-board increases, irrespective of any material changes in risk. The situation has been further complicated by Brexit and the ongoing impact of Covid-19.

Labor shortages, rising material costs and increased prices for luxury goods and services have exacerbated the issue.”

He emphasised:

“Our advice to brokers and their clients is always to look beyond price alone.  When considering insurance products, avoid making decisions solely based on price, because whilst the cheapest policy may seem attractive, it often lacks longevity.

Brokers should look to build partnerships with underwriters who demonstrate sustainable, considered pricing.”

No matter what type of evolving threats our brokers may face, iprism will continue to provide a disciplined underwriting service and long term solutions.

To read the full set of interviews, click here: (subscription required).