UPFRONT
STATISTICS SMEs EYE RAPID DIGITAL TRANSFORMATION
US 50% 40% 30% 20%
UK
18% 18% 17% 14%
50%
10%
40%
0%
30%
44% 35%
31% 34%
20% 10%
45%
COMPOSITE INSURANCE PRICING CHANGE BY REGION
of SMEs say providing seamless, on-demand delivery of products and services is currently a top priority
Q2 2020
Q3 2020
Q4 2020
Q1 2021
0%
PRICING INCREASES TEMPERED IN Q1
46%
say offering tailored products and services that meet the needs of multiple generations is their top priority right now
75%
of SMEs say adopting artificial intelligence is their top priority over the next three years
Global commercial insurance prices rose by an average of 18% in the first quarter of 2021, according to Marsh, marking 14 consecutive quarters of price increases. However, the pace of the price growth seems to have moderated, falling from 22% in the fourth quarter of 2020. Marsh attributed this trend primarily to slower rates of increase in property insurance and financial and professional lines. Cyber insurance diverged from the trend, however, posting a rate increase of 35% for the first quarter, double the increase from Q4 2020.
LATIN AMERICA 50% 40% 30% 20% 10%
8%
9%
9%
5%
0%
OPENNESS TO CAPTIVE INSURERS GROWS WORLDWIDE The volatile insurance market is prompting more companies to explore the possibility of forming a captive, according to a recent study by Swiss Re. Globally, almost half of companies are open to forming a captive, although the figure is considerably higher in APAC.
PERCENTAGE OF COMPANIES OPEN TO FORMING A NEW CAPTIVE Yes
Global
20%
46%
North America
APAC
54%
57%
No
43%
36% 64%
Latin America
EMEA
50%
50%
57%
43%
of SMEs currently have sufficient technology to implement and use AI Source: Digital Business Accelerated, Chubb and Accenture
6
Source: “Hard market solutions: captive insurance thrives in tough times,” Swiss Re
www.insurancebusinessonline.com.au
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09/07/2021 10:14:05 am
