Why insurers must innovate. Conning study lifts the lid on the world’s most innovative insurance market.
September 12, 2022
HARTFORD, CT – September 12, 2022 – A new report from Conning, sponsored by Amwins, explores why demand for innovative insurance is growing in the U.S. and examines the critical role played by the excess and surplus lines (E&S) market in meeting this demand. The report will be published in five weekly episodes beginning today.
The E&S market currently accounts for less than 20% of commercial lines business and 0.4% of personal lines. But it has been growing fast and, in terms of innovation, E&S insurers punch well above their weight, accounting for most of the major new insurance product categories launched over the past 50 years, from employment practices liability insurance to cyber.
Conning’s five-part study is an in-depth analysis of the E&S market as a seedbed for insurance product innovation. In addition to assessing the financial health and competitiveness of the E&S market, the study will explore:
- the mix of talent, technology and capital that fuels E&S market innovation;
- the flexible regulatory regime that governs the E&S market (which plays a large role in participants’ willingness to innovate);
- the growing role played by managing general agents (MGAs) in developing new insurance products backed by new data sources;
- the peril and promise of risk modeling, including for risks affected by climate change such as wildfire; and
- the part the E&S market can play in increasing the supply of affordable insurance for emerging risks and in reducing protection gaps, including through parametric products.
The five parts of the study will be released on the following dates:
|Monday, September 12||The innovation imperative: Why insurers need to innovate|
|Monday, September 19||Regulatory freedoms, regulatory constraints. E&S market regulation|
|Monday, September 26||The remarkable rise of MGAs|
|Monday, October 3||The perils and promise of risk modeling|
|Wednesday, October 5||The future of the E&S market (The full report will also be published on this date.)|
Scott Purviance, CEO at Amwins, said: “We are excited to support Conning's work that highlights the value of the E&S industry. In today’s market environment we have seen growth in the sector as a result of a number of factors. However, regardless of the cycle we believe the E&S industry needs to continue to innovate in order to anticipate retail clients' needs and determine how they can deliver the best product to their insureds. Amwins will continue our focus on developing the next generation of talent that will allow us to provide innovative solutions to the evolving issues that we will face.”
William Pitt, a director of research at Conning and the principal author of the report, said: “Since the turn of the century, the E&S market has grown far faster than the broader property casualty market, reflecting the new and more complex risks that insurers are being asked to cover. If the insurance industry is to meet the challenges posed by climate change and cyber-attacks, among other growing risks, it is in the U.S. E&S market that solutions will likely be found.”
“The World’s Most Innovative Insurance Market” will be available from October 5 on the Conning website here. Part One of the study is available now at https://go.conning.com/Chapter-One-The-Innovation-Imperative-Social.html.
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Conning (www.conning.com) is a leading investment management firm with a long history of serving the insurance industry. Conning supports institutional investors, including insurers and pension plans, with investment solutions, risk modeling software, and industry research. Founded in 1912, Conning has investment centers in Asia, Europe and North America.
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