The impact of GDPR tops the list of challenges facing the insurer market in the coming year, according to a survey of BIBA delegates at the conference in May.
Brexit uncertainty was the second biggest concern, followed closely by the prospect of merger and acquisition activity.
Other challenges flagged in our informal survey included those presented by technology, insurers exiting lines of business, and commission levels.
Opinion was divided on whether the Civil Liability Bill – now looking likely to go ahead after the defeat in the House Lords of an amendment seeking to dilute it – would have a positive overall impact on the industry. Just under a quarter of those who gave a view thought it would, the same number thought it wouldn’t, and just over half were undecided.
But more than 80% expect it to drive increases in the cost of motor legal expenses policies and claims handling services. Almost all expect to write more or around the same amount of legal expenses in the next 12 months as they did in the previous year.
Commenting on the results for MSL, Ben Clarke, National Sales Manager explained that while ministers have said BTE insurance could provide a solution to injured claimants needing legal advice following the personal injury reforms, the government…
“Needed to do more to support the market, and that sufficient lead-in time will be required for legal expenses insurers to re-engineer their product and service proposition for the new world.”
“If premiums for BTE increase rapidly, which is more than likely, it stands to reason that customers are far less likely to purchase the product, and will then be left without access to justice if they need to make a claim for injury compensation.”