By Christopher Hillman, Principal Data Scientist at Think Big Analytics, a Teradata Company

Insurance fraud is a growing problem which many insurers have begun to dedicate new departments and whopping budgets to try and tackle. Huge amounts of time and effort is now spent detecting fraud before paying claims to avoid the complexity and expense of recovering a loss – insurance companies certainly don’t want to pay out claims only then to realise they are fake.

Previously, this process involved manually and laboriously going through masses of individual claims while looking out for suspicious activity, creating a large drain on time, revenue and resources. Now, much of that backend research is being completed faster utilising data and analytics, thereby improving the productivity and efficiency of processes while keeping costs down. Despite this, a significant amount of data that might be meaningful never gets analysed and often, advanced analysts still need to be brought in to uncover meaning from results.

Fraud Invaders: a business case

Imagine being able to cut directly to the chase, removing the human effort needed to tackle huge numbers of worksheets to view potentially fraudulent activity. With advanced analytics and visualisation techniques, this is now possible. To demonstrate, let’s look at a business case called Fraud Invaders.

This case aimed to solve an insurer’s crucial business challenge by discovering a new way to focus on a tighter subset of cases to drive fraud investigation efficiency. To begin, claims documents that had been filled out and submitted by the insurer’s customers were collected, some of which were known to be fraudulent. These known cases of fraud were flagged and put through text mining to extract anything that was a clear identifier such as a bank account, email address or phone number. Following this process, analytics were used to uncover correlations between claims.

With this output, a data visualisation (or network graph) was put together. The resulting image, like the one included below, was made up of dots which represent individual claims, with lines which draw data connections between two or more claim documents. An example of a fraud indicator can be monthly insurance payments from the same bank account: chances are the separate claims belong to the same person or are three different people working together to commit fraud.

Not just a pretty picture: how it works

There’s more to see than initially (and appealingly) meets the eye. The dot clusters visible in the image show us who the “fraud invaders” are. The larger and more apparently connected the cluster, the greater the likelihood of fraudulent activity: this ability to gauge the potential for fraud based on the size of dots and amount of connections can be carried out with the need for little more than a quick look.

Using graphs like these as a foundation, claims teams can identify likely suspects and focus their investigations on these groups. Although not all suspects pulled out will turn out to be fraudsters, far less time, revenue and resources will have been required for this process in comparison to traditional, manual methods. In addition, incidents that may have previously slipped through the net may now be uncovered.

Uncapped opportunity: lessons from Fraud Invaders

In addition to helping insurers to identify fraudulent activity, advanced analytics and visualisation can also reveal networks of people and strong influencers who can assist businesses in attracting new customers, or cause them to lose them. This branch of data science, known as “Social Network Analysis” (not to be confused with Social Media) is a powerful technique that requires true multi-genre analytics. A variety of individual techniques are required to produce a model of a customers’ social network including text mining, fuzzy matching, time series processing and graph analytics. By traversing a persons’ network graph, claim teams can see who they are connected with and who they are influenced by when making decisions such as a purchase or switching services.

Overall, regardless of the desired outcome, Fraud Invaders offers a good lesson to businesses in how to achieve what they want: begin with a solution – rather than just a problem – in mind.

Website: http://www.teradata.com/

Only 12% of homeowners in the US had flood insurance in 2016. For every one inch of flood, it could cost a homeowner $20,000 in damages. Here’s how flood insurance works, the average cost and if it’s too late to get covered.

A recent report form PwC concludes that UK investment in InsurTech in the second quarter of 2017 surpassed that of the previous three quarters, increasing to $290 million (£218m) in the first half of 2017, compared to $9.7 million (£7.3m) the year before.

Global investment in InsurTech by global insurance firms, reinsurance firms and venture capital companies surged 247% to $985 million.

Mark Boulton, Insurance Sector Lead at Fujitsu UK & Ireland has this to say to Finance Monthly:

“This year has been phenomenal for the insurtech industry in the UK, and these latest figures reflect it. Increasingly, we see the market gaining momentum, and the amalgam of data made available is reshaping the industry in an unparalleled fashion. Investors are coming to much better understand the values that lie within a connected world, from more dynamic customer relationships to personalisation and need for tailor-made solutions.

“Fujitsu’s recent research looking into the UK’s digital landscape showed that nearly 40% of people want the UK to make faster digital progress. As such, insurers need to keep up with the rapidly changing dynamics and unlock the power of technologies.

“Although many insurance companies have digital on their radar, it is important for this industry to take advantage of digital innovation by not only creating savvy online apps and improving the digital elements on the consumer-facing side, but by also implementing digital throughout the business. This will help insurers not only save more, but also become more integrated and process efficient. The amount of deals and investment in the past year are a vote of confidence and now is time UK claims its role as a global insurtech hub.”

While many younger drivers have been using so-called black box car insurance, telematics has yet to become mainstream. The FT's Oliver Ralph test drives a telematics system to see how it affects his driving, and whether it could be the future of car insurance.

Customer satisfaction isn’t something that resonates when we think about insurance companies, so what are they getting wrong? Karen Wheeler, Country Manager and Vice-President of Affinion UK, here presents for Finance Monthly 4 ways insurers can improve customer fulfilment.

The insurance industry didn’t have much cause for celebration when the Institute of Customer Satisfaction released its latest Customer Satisfaction Index. In a survey of over 10,000 UK customers, the sector faced the unenviable accolade of being the only sector not to improve its satisfaction index score compared to the previous six months. In contrast, banks, leisure and telcos were some of the sectors to show improved levels of customer satisfaction. This bad news was echoed by research by The Actuary, which revealed 27.9% find the insurance sector the worst when it comes to customer service.

So, for an industry which is notorious for low customer loyalty and bad service, what can providers do to build better relationships with their customers?

1. Stand out in a crowded market

The challenge insurers’ face is that they operate in a highly commoditised environment, with customers faced with a sea of overwhelming choice. And the truth is that customers are often only basing their choice on price. According to research by Marks & Spencer, 95% of respondents stated that price was one of the most important factors to them when deciding which insurance provider to choose.

Insurers also know their customers will typically only make contact when they either need to make a claim, or renew a policy. And making a claim usually happens at a point of crisis, for example theft, damage or loss – when people are, understandably, feeling worried about their possessions, health or family.

These factors combined means insurers need to work hard to differentiate themselves from competitors by engaging with customers in a positive way, and finding new reasons to be a part of their lives. For example, thinking beyond the traditional, physical products insurance policies cover – homes, cars, phones – to solutions that can help customers keep their personal data safe online.

2. Deliver the right digital service

In a world where we live our lives through our devices – using apps to transfer money, ordering shopping to be delivered on the same day – it’s clear that insurers need to keep pace with the digital age. However, there are still improvements to be made, a recent survey by Eptica found the UK’s leading insurance companies fail to accurately answer more than two thirds (68%) of routine questions asked through the web, email, Twitter and Facebook.

Looking to the US for inspiration, digital insurer Lemonade is making waves for its digital-first, fuss-free approach to claims. At the start of 2017, its virtual assistant Jim set a world record as it reviewed, processed and paid a claim in 3 seconds – with no paperwork. If all insurers can aim to deliver this level of service, which brings cost and time-saving benefits to consumers, this could lead to increased engagement, loyalty and advocacy.

3. Think outside the box

Many people take out insurance policies and never have to make a claim. The appeal of a policy is the peace of mind it offers; consumers feel better knowing that if the worst happens, they have the support in place to help them. Of course, it isn’t just physical possessions – houses, cars, phones – that people want to protect.

With cyber hacking scandals hitting the headlines every week, consumers are increasingly aware, and worried about, the threat of online fraud. According to research by Callcredit Information Group, 66% of consumers perceive the risk of identity theft and online fraud as one of their biggest concerns around sharing personal information online.

As the old saying goes, prevention is better than cure – and this is certainly the case when it comes to online fraud. If a hacker finds out the password a person uses across several sites, it can quickly snowball out of control. This is clearly a risk many take, with Callcredit also revealing less than half (49%) of consumers regularly change their passwords as a way to prevent fraud.

4. Become their digital guardian angel

So what can insurers do to help their customers? When you consider the perception consumers’ have of their insurers as guardians of their belongings, there is a natural role they can play in helping customers to prevent and detect fraud incidents before they have even occurred – and help assist and resolve issues if they do arise. For example, providing cyber prevention and detection services that continually monitor their customers’ activity online and flags incidents when they’re at risk.

With insurance often seen as a necessary, but not particularly enjoyable part, of life, insurers need to think beyond their remit and consider how else they can add value and benefits to consumers’ lives. That way, they may well move up the table in the next Customer Satisfaction Index.

Two of the UK’s largest insurance companies, Axa and Aviva, recently disclosed increased profits and dividends at a time when drivers are paying out car insurance premiums at a record high average of £690 for comprehensive cover.

Aviva’s half year results for 2017 show that its overall operating profit rose by 11%, and that operating profit from UK motor insurance increased 9% (2017: £580m; 2016: £530m). The dividend paid out to shareholders went up by 13%.

Axa also reported strong half year performance: a 4% increase in underlying earnings, with 6% growth in revenue from UK motor insurance. Axa even concedes in their report to the stock market that the UK motor insurance market was a factor in their overall growth in the first half of the financial year.

“Axa and Aviva haven't missed a trick in blaming everything and everyone else for insurance premium rises – whiplash, fraud, insurance premium tax, the discount rate – but today we can see the real reason in black and white. Yet another boost in profits and yet more pay outs for their shareholders. They run a good line in shifting the blame but the facts speak for themselves - their whinging is to distract from what is really going on here, healthy profits and well feathered nests,” said Tom Jones, head of policy at campaign law firm Thompsons Solicitors.

In the last week, insurers have again come under fire as an investigation found motorists were being charged as much as 100% over the odds for repair costs. The Telegraph published evidence of Axa ‘instructing a repairer to charge "not at fault" customers a labour rate 54% higher than the rate paid by other customers’.

There are concerns that a potential government U-turn on the discount rate which affects the damages paid out by insurers to those with long term, serious and life changing injuries as well as the government's willingness to increase the small claims limit against inflationary logic will only see further increases in profits and remuneration for insurer CEOs.

“The insurers are constantly crying wolf and the government needs to stop pandering to them. They claim their backs are against the wall but in reality, as Aviva and Axa’s figures prove, it's all looking pretty sunny for them and their investors,” continued Mr. Jones.

“Motor insurance is compulsory in the UK yet those who provide it and are making good profit from it are unabashed in punishing the consumer by continually bumping up premiums at the same time as lobbying for changes that will restrict access to justice.”

(Source: Thompsons Solicitors)

By Rob Brown, Associate Vice President at Cognizant’s Centre for the Future of Work

Chatbots are gaining in popularity in a number of industries as an important customer service tool, with financial services and insurance particularly keen to roll them out: Crédit Agricole Assurance has Marc, and Bank of America recently announced it was introducing Erica. Barclays, Société Générale, USAA, BBVA, and Capital One have all also begun investigating the technology.

The rise of chatbots is being driven by several converging trends: the popularity of messaging apps, the explosion of the app ecosystem, advancements in artificial intelligence (AI) and cognitive technologies, conversational user interfaces and a wider reach of automation. Their adoption is accelerating so quickly that Oracle believes that 80% of brands will be using them by 2020. But will the current hype be sustainable over time without a stronger business rationale and better short-term results?

We live in an age of instant gratification, and this certainly applies to exchange of information – the core mission of financial services.  So why are customers confronted with long wait-times on hold, being transferred department-to-department, or having to wait through a list of phone prompts? In the context of chatbots, it is actually not about “the robot” at all, it is all about how easy the end-user finds it to use, and simply whether it works or not. To get it right, businesses should start preparing for the coming bot age now if they have not begun to already. This means peeking into the future and designing bots to respond to today’s customer needs, such as personalisation, context, meaning, first contact resolution, management, as well as bot-human interaction and interface design.

Here are four areas chatbots will evolve.

1. Specialisation and Personalisation
   For chatbots to be effective, they need to become far more specialised in topics and tasks, and have the ability to personalise interactions. As time goes by, we will begin to see this happen. Very soon we will see expert chatbots that specialise in providing information about different banking solutions, while there will be some like x.ai’s Amy, Apple’s Siri or Microsoft’s Cortana that are experts in making calls and scheduling meetings, or helping to orchestrate process steps. For example, your close of escrow got delayed due to unforeseen disclosures from the seller – was the bank notified not to fund the mortgage loan? In-the-moment examples like these will make chatbots more utilitarian and dependable.On the flip side, users will also then need to understand what the chatbots does, specialises in, excels in and – most importantly – where it has limitations. This leads to one of the most crucial design decisions: the history of continuity and personal connection. Consider this element as a “tuning fork” of sorts that brings together and harmonises all interactions a person may have on a given subject.If the user were to stray from a central line of main dialogue, for example, from Siri to Facebook Messenger, a chatbot will need the history and context of other discussions with people, places, and things in order to provide continuity and personal connection. In turn, this will dictate how much personalisation can be brought into the interaction itself. For instance, can the system remember user profiles, previous interactions, the interactions of other users in the system, the current context and the situational bigger picture? Chatbot creators will then need to design them so that they can access this information using a multitude of systems and derive meaning from that information, all while keeping the central “plot line” of context intact.
2. Speed of ResponseOne of the things that makes most present-day browsers so useful is their ability to answer questions at almost the speed of the user’s thoughts – sometimes faster. The experience of a good chatbot interaction is not judged only on its capacity to answer a question correctly but also the speed at which such a response is provided. In the bot world, solving a problem after a first contact with a customer will become a key performance metric.Chatbots that can provide basic solutions in the first instance without the need to paraphrase or explain the problem in greater detail will be the most useful and, by extension, the most popular.
3. “Superbots” – Your Personal Assistant
   The concept of a superbot is not yet well known but will be a significant element in the future of bots. Indeed, as bots become more specialised and popular, they will proliferate. For many companies, managing them could become as overwhelming and complex as managing apps is today. The solution could come in the form of a superbot.A superbot, or “bot of bots,” would act as a personal assistant, getting things done on behalf of the user. That would mean calling other bots to complete tasks such as scheduling meetings, dialing conference call numbers or redirecting the customer to the appropriate page to make a claim. The superbot would know which bot to call for a particular task and instruct that bot to provide feedback to the user, therefore being faster and more efficient. Some platforms already use “global managers”, automated robots that orchestrate workflow, and delegate which process transactions should be worked on by myriad other robots.
4. Humanising Chatbots
   Many of us will have seen an example of a gimmicky, humanoid “greeter robot” deployed in your high-street bank branch but the chances are, it fell short on actual needs-based problem solving for the customer. Chatbots, to the rescue – customers actually want solutions to process common choke-points in the gaps between information flows. Most of today’s technology exploration focuses on enhancing features and improving functionality to enable chatbots to mimic human responses, engaging in a more natural, intelligent conversation with users. Despite the merits of this work, the continued success of chatbots will not wholly depend on their ability to conduct a natural conversation but on the accuracy of their responses to customers’ questions at the moment-of-truth: when the tax bill is due, when the overdraft charge kicks in or when the mortgage documents are being finalised.Humans can sense when they are interacting with a machine, and any attempt to make it appear more human rather than intelligent may end up triggering negative emotional responses in humans— this phenomenon has been called “the uncanny valley” by a Japanese roboticist in the 70s. That is why some novelties robots are merely a distracting detour on the road to real breakthroughs in applying automation that matters to the financial services sector for real and lasting results.

Chatbots will be the vanguard of these efforts, and success will hinge upon their ability to become useful, maybe even indispensable, to human beings. Automation has its limits — and there are some things that robots just cannot do. That is where a blended model of automation augmenting people in their daily lives, conversations, and information requirements can provide extraordinary outcomes. By connecting conversations with meaning, context and intelligence, and providing people with relevant information in real-time and after absences, chatbots will provide as higher quality service and outcomes.

For companies in financial services, in addition to other industries, it requires striking a balance between speed, specialisation, and personalisation provided by chatbots and the ability to cater to human sensibilities and expectations. After all, the main goal is to support users and to make their lives easier.

With the upcoming introduction of IFRS 17, the new insurance contracts standard, the Financial Stability Board (FSB) is calling for implementation as soon as possible. Under IFRS 17, insurance obligations will be accounted for using current values, instead of historical cost. Martin Sarjeant, Global Risk Solutions Expert, FIS, below provides Finance Monthly with a thorough account of why firms should welcome the change.

With concerns over costs and a perceived lack of benefits among some insurers, there’s a prevailing mood of doom and gloom about IFRS 17. But rather than striking a deathly blow to the balance sheet, I believe that the new accounting standard for insurance contracts spells good news for insurers and stakeholders.

From this radical “glass half full” viewpoint, I’ve identified seven big benefits that IFRS 17 will bring to the insurance industry:

1. Liabilities valued at market value
   By bringing the valuation of insurance contracts in line with both the assets that back them and valuations made in other industries, IFRS 17 will initiate better product design and greater transparency. As IASB chairman Hans Hoogervorst explains: “Proper accounting shines light on risks that might otherwise go unnoticed – both by companies themselves and by investors.” So, although the standard may appear initially to weaken some insurers’ balance sheets, it will actually encourage better pricing of insurance contracts and strengthen the balance sheet over time.
2. Truer reflection of profits
   In some jurisdictions, insurers have designed products to maximize early profits. For example, if an insurer sells a 10-year insurance contract, with premiums paid for one year, it generates massive profits in the first year and then small losses afterwards. IFRS 17, by contrast, measures profit in line with the services performed and spreads it over the contract’s life in a series of smaller cash flows – giving more insight into how profit emerges. The standard also excludes deposit coverage from revenue calculations, which will especially affect the accounting of thinly veiled savings contracts – and, again, help better reflect reality.
3. Nearly global consistency 
   A consistent and high-quality accounting standard for all insurance contracts across most jurisdictions has to be a good thing, right? Particularly for multinational insurers, it will reduce the long-term costs of compliance and make it easier to compare business units and aggregate results and financial statements. What’s not to like?
4. Collaboration between actuaries and accountants
   Both actuaries and accountants look after the interests of stakeholders and help manage insurers’ finances and risks. But in many organizations, these are still siloed functions with little interaction or understanding of each other’s activities. IFRS 17 will drive them to work together and establish mutual respect and cooperation, which would mean good news for stakeholders and improve the way the company is managed in the future.
5. Better governance of actuarial systems
   For more than a decade, many insurers have been raising their governance game and reaping tremendous benefits such as lower operational risks and reduced ongoing costs. Others, however, continue to use actuarial systems without the control and automation that IFRS 17 demands. Improving governance standards will not only help achieve compliance but also reduce costs, minimize manual errors and make it easier to access risk insight, all leading to better management of the business.
6. Greater protection for policyholders
   IFRS 17 will help strengthen insurance company balance sheets (see benefit 1) and offer more protection to policyholders as a result.
7. Investor confidence
   All the above improvements to the accounting standard give investors proper insight into insurance companies, allowing them to compare one firm with another more consistently. This can only improve investors’ confidence in and understanding of insurers – surely another reason to be cheerful.

However you look at IFRS 17, nothing will stop it from coming into force in more than 100 countries in 2021. So, why not ditch the despair, seize the opportunity for change, embrace the benefits – and see the many positive sides of compliance?

With the introduction of the Insurance Act 2015, everything changed, and one year ahead of its implementation, Tanmaya Varma, Global Head of Industry Solutions at SugarCRM, tells Finance Monthly about the impact it’s had on the market, its insurers and customers.

It’s no secret that the insurance industry is one of the most cut throat when it comes to customer loyalty. With competitive rates available at the click of a button on price comparison websites, customers have the freedom to pick and choose their providers with minimal effort, from the comfort of their homes. The abundance of insurance companies in the market means they are on a constant uphill struggle to provide not only a competitive price, but a customer experience that sets them apart from the rest. With Gartner estimating that 89% of organisations now compete solely on this, this is the new benchmark of success for insurers.

In a competitive market, retaining that loyal ‘golden customer’ is challenging. Insurers need to show they are evolving to meet the needs of modern customers, and are not just companies who do little more than churn out cheap holiday or housing cover. Research from The Institute of Customer Service revealed an increase in customer satisfaction from July - December 2016 compared to the six months before it, with a number of insurers listed in the Top 50 organisations for customer satisfaction, such as LV and Aviva. Despite this, the sector still experienced a 9.9 point drop in Net Promoter Score, a figure which summarises the overall neglect and disconnect between insurers and their customers.

So what are insurers already doing to address this, and what more can they do to improve customer loyalty?

Changing laws

It’s clear that how insurers treat their customers is being monitored at the highest level. Prior to 2016, the insurance industry had been left to stagnate. In a sense, it was an industry complacent with its low retention rates and poor customer service. This changed last year with the introduction of the Insurance Act 2015 which set a new precedent – with BIBA  marking it the “the biggest change in insurance laws in 100 years.”

The introduction of the Insurance Act promised to deliver greater transparency between companies and consumers. In an industry notorious for false claims, well-hidden small print and poor customer service, the shift was a much needed one. With this new act underway, it’s now more essential than ever that insurers have access to up-to-date data.

Providers were also instructed to improve communications across all channels to ensure clarity at all points in the customer journey. There is also an onus on customers to ensure they’re providing the correct information, and understand the policies they are signing up to.

Turning to technology

The right technology is of paramount importance to any customer-facing business. Insurers must harness tech to empower employees to work more efficiently.  One way this can be done is through customer relationship software systems, which allow customer data to be collected, stored and managed to deliver a 360-degree view of the customer.

By giving employees everything they need at the press of a button, this can help alleviate lengthy, confusing calls and improve the customer experience.  An easily-accessible system can deliver increased efficiency, better communication and happier customers. If we consider that in a survey conducted by Realwire 68% of questions asked digitally are inaccurately answered, it’s essential that insurers become more digitally focused and capable.

Some insurers are already adopting a digitally forward stance. The insurer Lemonade, for example, developed a virtual assistant at the start of 2017 called Jim who is able to process insurance claims in seconds. This virtual assistant reflects the advancements of AI and how some insurers recognise the power of tech. Realwire’s study concludes that with 91% of consumers saying good digital customer service from insurers makes them more loyal, it’s essential that insurers can deliver this.

The importance of the human touch 

The benefits, and potential, of technology as part of the customer experience are endless, but have their limitations. Yes, there have been significant advancements in Artificial Intelligence (AI), and the rise of the chatbot is a forever trending topic. But despite a continued integration of AI in to customer service, research by Vanson Bourne concludes that 91% of respondents still preferred to contact a real person.

AI is great in automating mundane tasks, and taking care of repetitive jobs where humans don’t add value. But, so far, a robot can’t empathise with a distraught traveller half way across the world who wants to check the small print of their holiday insurance policy. That’s something that only a human can do at present. This is proven further through SugarCRM and Flamingo’s research, that found that three quarters of people surveyed still aren’t happy with talking to chatbots – a figure which clearly translates across all industries.

The future of the customer experience

Machines are great at automating repetitive tasks, and chatbots are undoubtedly becoming more sophisticated – and at a growing rate. But the real benefits of technology appear when it aids and empowers employees, and helps customers be autonomous in self-service functions where the human touch isn’t needed.

For an industry that, according to Realwire, saw a 47% decline in performance in 2016, it’s essential that insurers act quickly to evaluate the customer experience they offer at every touchpoint. The insurance industry has generally been slow to adopt a better digital approach, but, when customer dissatisfaction is often rife, it could be the difference between keeping or losing a customer.

Speciality MGA Fiducia has teamed up with a Lloyd’s insurer, Atrium Underwriting, to produce a new terrorism product which will allow brokers to offer specific cover to their clients of all sizes.

Fiducia and Atrium have developed the terrorism and sabotage policy which takes account of the changing risks associated with the latest types of terror threats.

While the UK insurance sector’s specialist terrorism risk pool, Pool Re, offers cover, it does so in most cases only if the insured’s building suffered physical damage.

However, there is now a real demand for terrorism cover which is triggered if a business suffers business interruption, although there is no physical damage to the insured’s premises.

Many firms in the recent attacks on the Manchester Arena and Borough Market found they were unable to access their buildings due to the ongoing police operations for some days or weeks afterwards. Businesses in Borough Market have also said they have seen a significant fall in trade as visitors are concerned to go to the area following the attack.

Underwriter at Fiducia, David Heeney says: “Understanding the benefits of having a standalone terrorism policy is a difficult proposition for many clients but we at Fiducia have developed, for UK regional brokers, a market leading terrorism product to assist them in engaging with clients who feel their property and assets may not be vulnerable to an act of terrorism.

“Following previous terrorism events 70% of the companies that went out of business due to the after effects had suffered no physical damage or loss. They simply were unable to access their buildings and the area, which had been popular with visitors, no longer held any attraction so business was dramatically reduced.”

He adds: “There has been a demand for terrorism cover that offers protection above and beyond that offered by the Pool Re scheme. While Lloyd’s underwriters have been providing cover with extensions for business interruption, denial of access and loss of attraction, regional brokers have not really had the ability to access it until now.”

He says that the policy comes with access to Atrium’s unique risk management analysis software that will enable brokers to provide detailed advice on the level and type of insurance needed by their clients on an individual basis.

“Blast Zone Exposure Management is a unique risk management analysis software,” he explains. “Our experience shows us that the largest single location often isn't the largest accumulation of exposure a client has within a 200 metre blast zone where they can suffer both physical damage and business interruption that reaches far beyond a top single location value. We can analyse the insured’s assets and assist them in selecting a level of cover to match their accumulation of exposure, eliminating under and over insurance.”

Stuart Harmer Underwriter Political Violence at Atrium said: “We are excited to be supporting the Fiducia team. The company has put first class service levels at the heart of their business. At Atrium we choose our partners carefully and we are confident that Fiducia and the innovative products they have designed and created will provide a very attractive alternative to those currently in the market. From the outset of our discussions we have been impressed by the drive, professionalism and depth of knowledge within Fiducia and we look forward to a long and successful partnership”

(Source: Fiducia)

More than 50% of the customers of UK financial services brands would be willing to spend more – potentially equating to billions – if only they felt more valued by them, according to new research from Jacob Bailey Group.

Missing Billions is a new report from Jacob Bailey Group, the creative business services agency, based on a survey of 1,200 UK consumers in Spring 2017, to better understand the concerns of financial services customers today.

Key findings include:

Brands are missing out on billions

• More than 50% of financial services institutions’ existing customers would be willing to spend more money on multiple products with the same provider if only they received better communications;
• This would equate to: £2.6 billion spent on debit cards, £2.3 billion on credit cards, £2.3 billion on car insurance, £1.9 billion on home insurance, £1.7 billion on mortgage lenders, and finally £1.6 billion on life insurance;
• 15% of people would spend more than £100 extra per year.

Customers do not feel valued

• More than one third of people (37%) do not feel valued by their current bank; while one in ten (12%) do not feel valued at all by bank brands;
• Nearly a third of people (31%) do not feel valued by their credit card provider;
• Just over a third (35%) do not feel valued by their home insurance company;
• 22% do not feel valued by their life insurance company.

Communication is poor

Almost one fifth of people believe their financial services provider does not communicate with them enough. This figure is higher for people who earn between £45,000 to £55,000 (22%), as well as people with an income above that bracket (21%).

The study uncovered a number of issues around how financial services brands communicate with their customers, including lack of timely, relevant, personalised and helpful information, and general misunderstanding of financial circumstances.

The Missing Billions report also ranks financial services companies according to how valued their customers feel. Out of 20 brands examined, Bank of Ireland was the top performing company with the fewest customers feeling undervalued (22%), followed by Nationwide (31%) and RBS (33%).

Rob Manning, Strategy Director, Jacob Bailey Group, said: “In an age dominated by digitisation, convenience and personalisation, the financial services sector has never been under so much pressure to evolve.

“We set out to understand why these brands are failing, losing out to savvier, more agile new market entrants, finding that how financial services brands communicate with their customers is potentially costing them billions every year. To unlock these missing billions, these brands need to connect relevance through microtargeting, based on the best use of data, technology and creativity, leading to brilliant customer experiences.”

(Source:  Jacob Bailey Group)

Led by growth in Asia Pacific, the global insurance industry has been experiencing moderate growth in recent years. However, a slowdown in the industry is likely, though growth is going to remain steady.

While the life insurance sector remained the most profitable in 2015, the non-life insurance sector was not far behind, according to Global Insurance Industry - Forecast, Opportunities & Trends 2015-2020, a report recently released by Taiyou Research. The industry remains fragmented, thus increasing the level of rivalry within the market. Large, international companies have more or less entered most countries now and have either driven many smaller players out of business or have formed partnerships with them.

Online insurance is also a rapidly growing business, competing successfully with existing players. Apart from insurance market players, many financial service providers and banks are also entering into the global insurance business, thus creating even more competition for existing players.

Stringent regulations govern the insurance industry and it remains to be seen how this scenario plays out in the coming years.

(Source: Taiyou Research)