As part of its new business plan for 2020, the International Underwriting Association (IUA) has announced that it plans to establish a new market group to focus on climate change.
The committee will be tasked with examining the growing impact of climate change policies on a range of insurance activities, including investment, underwriting, and risk management.
“The business challenges facing companies are evolving and the work of the IUA is changing to reflect this,” said Dave Matcham, Chief Executive of the IUA.
“In 2019 the Prudential Regulation Authority called on insurers to develop a strategic approach to managing the financial risks from climate change and our members are responding,” he explained. “More than 20 companies have already nominated representatives to our new committee on this subject.”
Other key issues for the London Market this year include cyber risks, according to the IUA’s new business plan, which continue to dominate member discussions across a wide range of different lines of business.
The IUA noted that its dedicated cyber committees are focusing, in particular, on the consequences of cyber warfare, with a research paper due for release later this year, in addition to model cyber clauses and an underwriting questionnaire.
“Questions around the challenge of covering cyber risks are being asked across the London company market and will feature prominently in the IUA’s work throughout this year,” Matcham continued.
“Indeed, we will produce an overview document for members that allows them to monitor the many different cyber projects that are being pursued across our 20 plus underwriting groups.”
Other research and best practice projects planned by the IUA in 2020 will cover delegated authorities, developing technologies, illegal ship-to-ship transfers and the discount rate.
The association’s public policy work will further include updating members on regulatory developments as Brexit is confirmed.
Attention will be increasingly turned towards the shape of a new trading relationship between the UK and the EU and opportunities for company market interests to be featured in new trade negotiations across the globe.
The IUA believes that the post-Brexit environment will allow for a greater possibility of a more independent UK approach to international trade restrictions, and therefore plans to expand its UK sanctions database.
On business process reform, 2020 will see the IUA participating in projects such as claims processing that are being developed as part of the Future at Lloyd’s blueprint, and which have important consequences for the whole London Market.
PPL meanwhile, remains the principal vehicle to deliver e-trading, and the IUA expects to see significant enhancements to the platform over the next 12 months.
“Over the past five years membership of the IUA has increased by around a third and is now at a record level,” Matcham further stated.
“The year ahead is already shaping up to be a fascinating one for the company market in London and we are looking forward to delivering a wide range of services for the firms we are proud to represent.”
