Risk, regulation and recruitment
At our recent UK CFC Summit, the audience put our panel through its paces with a range of insurance market questions. Facing these questions were Bruce Carnegie-Brown, Chairman of Lloyd's; Dave Walsh, Founder & Group CEO of CFC and Graeme Newman, CEO of CFC.
Here’s a snapshot of some of the questions and answers.
My team provides insurance solutions to GP and dental practices, how can CFC help us to educate these customers about the cyber risks that they face?
We’ve got a huge team of cyber experts people who do nothing but study and talk about cyber risks. They've created a cyber masterclass series, which is used internally for training and will soon be available externally. The team is always happy to come out and speak to brokers, go to events [across all industries] and help brokers reengage with their customers around the topic of cyber. We’re very keen to bridge the cyber awareness gap and want to work with the market to make ensure businesses are thinking about and understand cyber fully.
There have been a lot of protests around Lloyd’s syndicates insuring fossil fuel risks, but coal is going to be around for a long time. If these risks are uninsured, what safeguard is there for all the people and communities supported by the coal industry?
It’s not about creating cliff edges, but it’s about transition. Over the next 10 years we’ll continue to provide cover for coal mines, but hope that when that time is up, the mines will have been substituted for other forms of energy provision. We’re guiding the market that we don’t want to do new projects on thermal coal. Climate change is an existential risk for the world in which we live, and as a responsible industry we want to play our part.
Lloyd’s is leading the way on cyber insurance regulation. What advice does the panel have for me – someone who broadly agrees with the Lloyd’s approach, but on a daily basis is competing with or looking to participate on programmes led by markets that don’t put the same value on regulation?
Regulation is about bringing clarity and certainty and so there are benefits for everybody if new rules create better understanding. I think robust regulation can create competitive advantage. Good regulation creates clearer policy wordings. This transparency lets clients assess value more accurately and be confident in what they’re buying.
Bad news on claims not being paid spreads like wild fire, but why is more not made of the good news stories?
We do need to have more people advocating for the industry and to find platforms where we can engage with our clients about exactly how we help and support them. As an industry we’re prone to be inward looking and that’s something we could improve.
How can we attract diverse, top-quality talent to the insurance market and talk about the profession more confidently?
A large part of recruiting the best diverse talent is about looking in different places and trying new methods to attract people. This makes it easier to source new talent pools and around 30% of the people CFC has recruited this year come from black and ethnic minority backgrounds. There’s also a huge amount of innovation in the insurance industry and that’s something we can focus on to attract people. We can and should be more proactive about telling people about our positive solutions and interventions.