Insurers are innovating successfully

A major message of this year’s Airmic conference has been the need for innovation within the insurance industry. However, the view of John Durkin, AJG’s chair of UK retail, is that there is currently innovation within the industry as insurers strive to meet clients’ needs.

“Airmic has made it clear that lack of innovation is a concern but I personally don’t feel it’s lacking,” he said. “If you are listening to the clients and finding ways to meet their needs then you are innovating.

“Our team is working on a number of custom ideas for our clients. For example, you can take a basic product like ‘after the event’ protection, which is creative enough, and look at ways to use that in all sorts of different applications.”

He added that AJG’s approach relies strongly on bringing a whole toolbox of resources to bear in order to meet clients’ needs.

The company has over 70 offices in the UK and combines this strong presence with hubs of specialised expertise, which can be called upon by local offices whenever the need arises.

“As a company we are able to bring resources to bear, and have different minds all solving problems together,” he said. “Our aim over the next year is to continue to get the specialists visiting those local offices so if need arises they know who to contact.”

He added that the current soft to stable market is helping to support innovation.

“Even though the loss ratios are getting higher, the capacity in the market has enabled it to stay relatively stable. I think that’s allowed our risk managers and clients to look at other things,” he said.

One common focus for risk managers has been the adoption of an Enterprise Risk Management (ERM) approach.

“It’s allowed them to be more proactive in looking at their risks throughout the enterprise and deciding whether they are going to transfer it or put some resources into managing that risk more proactively,” he said.