Ed targets further growth in 2018

The devastation wrought by natural catastrophes across the globe in 2017 and how the industry responded, and continues to respond, defined the year and will have a big bearing on 2018, according to Andy Wallin, group commercial director, Ed.

He believes the way the industry and individual companies react to these events will shape the year, and will highlight the growing importance of technology to the sector and how the industry may change.

“The lack of activity in recent years meant that many people in our market had not witnessed a heavy cat year. How brokers and carriers responded will shape many businesses’ reputations for years to come,” Wallin says.

“These events also highlighted the increasing role of technology in ensuring that claims are paid swiftly. Indeed, the impact of technology, realised and potential, was a key theme for 2017.

“There has been increasing talk that insurtech startups will soon disrupt our business model. We must evolve or face extinction. Regardless of how real the threat of disruption is, our market needs to change and become better at embracing new technologies.

“We are also capable of innovation and developing our own platforms to drive efficiencies. TradEd is one example of this and a clear indication of our capacity to drive change.”

Wallin is seeking growth for the TradEd platform in 2018. He says that although Ed has only just begun using the new trading platform, the benefits are already clear, immense and scalable.

“We went live in mid-July with our energy business and are now using TradEd for all business placed in London, Singapore, Miami and Dubai. Data and how it is used has become a key differentiator in our market. TradEd puts us and our partners ahead of the curve. 2018 will see us increase this lead and drive further efficiencies,” he says.

“The reduction of frictional and other costs in the distribution chain is vital to the long-term future of our industry. There are simply too many cost points between the re/insurer and the original risk. Our new trading platform is a key step towards reducing these costs and closing the distance between capital and insured.

“In doing so, we will be in a unique position to pass on cost savings to customers. The technology we are now deploying is beyond the capability of many smaller brokers, while the business models of other larger intermediaries, which have become dependent on income derived from the sale of data, market derived income and facilitisation, does not allow for its implementation.”

Growth plans

On the back of this, Wallin also wants to further develop Ed’s international office network. “We now have the talent and capabilities to compete at the highest level. There are clear opportunities for expansion, particularly in Dubai and across several Asian markets. Throughout this year we have enhanced our proposition in these areas and I am looking forward to seeing the fruits of our efforts in 2018,” he says.

To achieve all this, he acknowledges that Ed must attract the best talent. He asserts that in the past 18 months, Ed has built “an exceptional team” and brought in more than 100 new team members. In 2018, Wallin expects this remarkable growth trend to continue.

“The development of talent and the makeup of our industry will continue to be a key topic until demographics, backgrounds, ethnicities and genders reflect those of our clients,” he says. At present, there is a shortage of the skills and competencies which will make this a reality.

“How we tackle this issue will continue to be a core focus next year,” he says.

“We have set ourselves some very ambitious goals for our business. We have the talent, the expertise and the capabilities to realise these goals, so ensuring that each member of the team is accountable for performance is key,” he says.

“The Ed story has been remarkable and we need to keep building on this momentum. In 2017 we witnessed a series of major natural catastrophes which will impact our industry next year, and amid all the talk of changes to the rating environment, we must not forget the human impact of these events.

“Major disasters are when our industry comes under particular scrutiny. The swift payment of all genuine claims must be central to our approach.

“We will also continue to embrace new technology at every juncture where there is a tangible business benefit. The messages from Lloyd’s new chairman have been clear and highly encouraging. As a market, 2018 should be the year when the support to drive increased efficiencies and to pass savings on to the customer begins to show truly meaningful results. We are resolved to support this in any we can.”

The effect of Brexit

Wallin adds that some important themes in 2018 will be the impact of the UK’s decision to leave the EU, and how competitive London will be long-term outside the EU. He says it is important the industry unites on these issues.

“Our industry must work together and speak with a shared voice on Brexit. We need to have clear answers for our clients on how this will impact them. We need to know precisely how Brexit will affect relationships with our European customers and partners.

“Entering the 2018/19 renewals without certainty would damage our market; understandably, our customers would look elsewhere. This should be a resolution for all of us and one which we stick to,” he says.

“A key topic will be London’s position relative to other markets and its future role. Both are increasingly unclear. The decentralisation of the global specialty insurance market is set to continue. Growth rates in Asia far outstrip those in the West and mean the market’s eastward shift will continue apace.

“If London is to retain its position and remain competitive it must offer something its competitors cannot provide, at least to the same degree. If this is expertise and intellectual property, we need to be able to discern and articulate what this means and take steps towards future-proofing it through product innovation.

“As multiple global underwriting centres emerge and compete against each other for global business, London’s position will increasingly be seen as one player among several.

“If it is to remain a credible competitor and, at least in some cases, the lead market, it must also be seen as the leader in innovation and as a provider of an unparalleled customer experience,” he concludes.