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AM BEST'S MONTHLY INSURANCE MAGAZINE


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A Global Conversation
Special Solutions

Experts in the specialty lines, program and surplus lines markets discuss the challenges and new strategies facing this part of the insurance industry with AMBestTV.
  • March 2019
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Andrew Rear

Andrew Rear

“I think we'd all agree that insurance is a slow-clock speed industry. Change takes time. The more interesting question is, what does the end game look like? There, I think the answer is, the end game is fundamentally a revolution.

If you're a personal lines insurer, then almost certainly, motor dominates what you do. Motor is how you acquire customers. It's how you fund your brand spend. It's your biggest product line.

The motor market, in 10, 20 years, is going to disappear entirely from personal lines. When we're in the autonomous car world, I think motor is going to be essentially a wholesale insurance product. If you're a personal lines insurer, your entire business model has now changed.

This is not just about one line changing technically. This is about the way you acquire customers. It's the way you finance and structure your business.

The same is true if you think about commercial lines. First of all, the industries that you are serving are being fundamentally disrupted. Things like 3D printing changed the way manufacturing processes work. Secondly, also, the way you underwrite is being disrupted.

If you're not using artificial intelligence, external data sources in your underwriting, then you're on the road to becoming unprofitable. Who knows how long it will take before you realize that that's a problem? The problem has already started now.”

Andrew Rear
CEO
Munich Re Digital Partners


Brady Kelley

Brady Kelley

“I think there are always those things people have on their minds that cause them some concern. What will technology do to the industry? Does any of that type of technology advancement disintermediate our market?

I think those are things that keep some people up at night.

We've got regulation on our minds all the time. How the states regulate the business. How the federal government is thinking about changes in certain areas that could impact our market. There are always risk factors out there, things to be well aware of and on top of.

We lobby. We advocate. We educate about how this market works, how it's regulated, how it operates. If we do that well, a lot of those concerns should not be significant ones.”

Brady Kelley
Executive Director
Wholesale & Specialty Insurance Association


Zainudin bin Ishak

Zainudin bin Ishak

“Our expansion [plans] are typically to strengthen our relationships with segmentized clients. We are also looking for an opportunity like managing general agent binders, where we think that we are able to participate in a far more disciplined market, but we are taking our time. We are sufficiently capitalized, so we should be able to cherry-pick some of these good opportunities.”

Zainudin bin Ishak
President, CEO
Malaysian Re Berhad


David Blades

David Blades

“In today's marketplace, there are a number of challenges. Just being able to react with speed to develop solutions for emerging risks. Again, we talk about new technology. As great as technology is in terms of bringing solutions to the marketplace, there are also risks that are associated with that.

The ability of surplus lines and specialty market companies to bring those solutions to bear in the marketplace, to develop them comprehensively, and to react in accordance with what the customers need, including not just the insurance products.

Also, again, on the risk mitigation side, to help those entities be more holistic in terms of how they're looking at covering their own risks. That's something that we're looking at that's important in that regard.”

David Blades
Senior Industry Analyst
AM Best


Name

Bob Ridinger

“We see wholesalers, program administrators, MGAs creating marketplaces, superstores, that become watering holes for their brokers to connect with them, to connect with the programs they're offering, and to be able to then fulfill the business that's being submitted.”

Bob Ridinger
Director of Business Development
ValueMomentum


Visit www.ambest.tv to watch the video interviews with these executives.


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