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Earlier this month, a cohort of Honan leaders from across Asia-Pacific headed to San Francisco for the 66th Worldwide Broker Network (WBN) Global Conference. The WBN is the largest independent broker network in the world, and Honan has been a proud member for the last twenty years. With more than 100 broker members across 100 countries, the Network provides services to multinational clients across Property & Casualty and Employee Benefits.
The 66th Annual Conference was a terrific opportunity to reconnect with our partner brokers, discuss global insurance trends, insights, and lessons learned from the last 12 months, and explore opportunities to collaborate on great new initiatives for the benefit of mutual clients.
We were also fortunate to hear from some of the greatest minds from the world of insurance and business alike. Highlights included John Hanh, Executive Chairman - Galway Holdings, Gideon Yu, former CFO - Facebook and YouTube, and now a co-owner of the San Francisco 49ers, and Bruce Basso, Founder of ABD and current Chairman Emeritus of the WBN. The core message from all speakers was consistent - think big and make the most of your opportunities, but always remember the client comes first.
So, what were the key headlines from this jam-packed 4 days of insurance industry keynotes, seminars, and meetings in between?
Here are the top 4 trends set to impact clients now, and into the future, as tabled at the WBN’s Annual Global Conference for 2022:
1. THE CENTRALITY OF CYBER
Cyber risk was a dominant theme in all discussions, with brokers from all corners of the globe having to navigate complex renewals every quarter across all industries. It was agreed that the best way for clients to maintain broad cover at the most competitive premium, is by embedding robust cyber security controls. Insurers are now dropping capacity and enforcing premium uplift, with companies only able to achieve their required insurance limits upon successfully demonstrating best-in-class cyber controls and procedures. Don’t miss our 3-step approach to help protect your systems from cybercrime.
2. AI ACCELERATION
Artificial Intelligence (AI) was another dominant theme, particularly in terms of what it means for the industry moving forward. With a surge in connected devices has come a dramatic rise in the volume of information now available to insurers. This information is expected to streamline the underwriting process, particularly for personal and small business products. We anticipate major AI-enhanced changes in the insurance industry over the next five years.
3. ESG ESSENTIALS
Environmental, Social & Governance (ESG) featured heavily in discussions, particularly its growing importance in investor circles, and flow-on impacts on Directors & Officers (D&O) insurance. With companies facing increased pressure to address ESG imperatives across all aspects of business, ESG is now a critical consideration for underwriters, particularly at D&O renewal time. The key takeaway? Companies that can show evidence of strong ESG principles can expect more favourable policy terms.
4. SUPPLY CHAIN SHORTFALLS
Global supply chain disruptions continue amid the ongoing challenges of Covid-19 and Russia’s invasion of Ukraine. Disorder, delays, and shortages are leading to breaches in contractual requirements by many of our clients. Moreover, restrictions and sanctions around Acts of War mean that Business Interruption policies are not being triggered in many circumstances. The key is for insurers and brokers to maintain an ongoing dialogue with clients about what is and isn’t covered. Supply chain issues should be covered under the Business Interruption section of most policies, however, the sums insured/limits need to be interrogated and confirmed with the client to help ensure adequate cover is in place.
After travel restrictions for the last 2 years, it was great to see old friends who have been long supporters of Honan and continue to be valuable members of the WBN. We look forward to the next conference as we continue to play our part as a key member of this valuable network.
Steve Pappas - Head of Global & Networks
Partners We’re Proud of – Sustainability Edition
