In another head-spinning but generally improved FY21 for general insurers, COVID-19, new customer regulations and climate change are proving to be the biggest issues affecting insurers, according to Taylor Fry’s recently released annual analysis of the general insurance sector, RADAR. Read the key findings, which draw on the latest APRA data.
The survey, conducted by Willis Towers Watson, found Life and Property & Casualty (P&C) insurers are likely to enhance their use of automation over the coming five years to streamline processes.
For several years, the insurance industry has been anticipating a hardening of the reinsurance market, which last occurred in the early to mid-2000s. Soft market conditions have prevailed for nearly 15 years until 2020. The COVID-19 pandemic was arguably the final harbinger for what appears to be a hardening of the reinsurance market.
Founded in 2015, American insurer 'Lemonade' has rapidly reached a market capitalisation of $8.5bn and a price to sales ratio of 71.63. This compares to a price to sales ratio of 2.06 for Berkshire Hathaway, the largest global insurer by market capitalisation as at 2 February 2021. Joseph Hoang-Luu, General Insurance Editor of Actuaries Digital, analyses Lemonade's growth and presence in the insurance space.