HDInsights Edition 7 2022

Another interesting new field is autonomous vehicles which may make driving safer in the long term, therefore reducing bodily injury. This could then support stability for pricing insurance products. New technology like radar GPS and satellite data, geocoding or geomapping for example can also support the insurance sector. They help businesses monitor how users are performing – for example if they have been speeding before an accident. “So, when a claim comes in, they're able to look at the story versus the collected data and this again enables us to see if the client or the user has been negligent,” Mr Tarantino said. intangibles. This could also include topics like mental injury, mental distress or mental anguish, which are harder to quantify than the typical bodily injury loss for example, she explains. How can brokers make sure clients are not underinsured? To not be underinsured in this current environment, clients, particularly large multinational companies who have a substantial asset base with over 100 locations, need more frequent third-party valuations . “This is becoming more of a requirement from the insurance market,” Mr Mackay explained. “As a result, these companies will roll out the valuation for each location every three years.” He also recommends more discipline using inflation tables naming India as a positive example where it's a regulatory requirement to use industry standard inflation tables to update values. In Mr Mackay’s view however, the biggest challenge are business interruption values . “With the volatility we're seeing in the oil price currently, we're now doing quarterly business interruption updates with some clients,” he said. “There's definitely an increased appetite for longer term service contracts with suppliers to try and mitigate some of the volatility.” There's no silver bullet says Mr Mackay; “I think this just comes down to regular interaction with clients, but also sitting down and understanding the situation that they're in before pulling an insurance policy together.” Martha Hasan believes that over time artificial intelligence (AI) and big data can help cover

The Future of Insurance Responsive products and personal relationships “I think, we have to look at each individual client and the data that we have. We then have to build a product that works for that specific client. "Another important aspect is relationships and interaction. We've seen this throughout the pandemic: The insurers that have been successful are the insurers that stayed close to the brokers and clients.”

Willem van Wyk Regional Market Manager, Australasia and ASEAN HDI Global SE, Australia

Does the insurance market adapt fast enough to cover new types of risk? Mark Mackay believes yes. “I think the insurance market does step up,” he said. Naming as an example the new trend towards renewables to counteract climate change. “ HDI Global supports the transition from fossil fuels to renewables and new technologies that are part of the ESG initiative , the climate change initiative,” he said emphasizing that particularly in the liability space, insurances have to make sure that the clients that they underwrite have good green credentials.

HDInsight Edition 7 - page 11