Lloyd’s of London has come out this week saying that they lost money in 2016, which will drive the 90 in the insurance market to be more selective in the risks they take for 2017 and forcing Lloyd's to cut its current subscription rates.
So, on how to address the downturn in premium rates, insurers will need to review their current business plansfor next year as Lloyd's Chairman John Nelson and Chief Executive Inga Beale said “Current year underwriting is not profitable in aggregate at the moment... this is a matter of great concern to us”
Part of the loss is coming from stiff competition in insurance, which has typically offered high returns, has put pressure on premium rates in the last few years and Lloyd's has responded by changing its structure to cut costs, and is lowering 2017 market subscriptions by 10 percent.
Tom, Exaxe’s Head of Product Strategy, is not surprised by this as the same pressures are hitting insurance providers in the retail space. Exaxe’s clients are looking for an insurance software solution that will help them with the following:
- Reducing the cost to acquire new insurance clients
- Reducing the time it takes to bring new insurance products to marketing
- Identifying insurance policy cross sells within their current client base
- Reducing client churn while increasing client satisfaction
- Speeding up while reducing the cost of claim processing
- Enabling their channel partners
In summary, they want an insurance software solution that will cut costs, increase sales, reduce churn and enable their partners to perform better…. Hence why they are talking to Exaxe. So, if you a looking at your business plans for 2017, then it might be good to talk to Tom to understand how Exaxe insurance solutions will help your company tackle rising costs and stiff competition.