Letter: Threats to the UK insurance industry

Mr Geoffrey Saunders
Thursday 12 August 1993 18:02 EDT
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

Sir: Your report (9 August) on the analysis of the UK insurance industry by McKinsey & Company correctly identifies the two main threats to the industry's future - that 'there is no other industry in which so little information exists about customer needs' and that 'talented young managers avoid careers in insurance'.

The former point was amply illustrated by the sudden withdrawal last November by the Association of British Insurers (ABI) of insurance against acts of terrorism, without any form of consultation with its customers. In fact, so little contact exists between commercial insurers and their customers that the annual conference of the Association of Insurance and Risk Managers in Industry and Commerce (Airmic), an association that represents the interests of some 700 companies and individuals as insurance buyers, has now become the industry's pre-eminent forum for discussion for both parties.

The relative lack of talent and innovation within the industry and low level of intellectual debate similarly is a constant concern to Airmic members. It also does little to dispel the industry's somewhat dull and grey image.

For many years the association has been pressing for higher levels of professionalism. To this end the association founded the Institute of Risk Management (IRM), which holds examinations for its members and remains the only academic body for industry and commerce.

Only a committed drive to raise standards throughout the insurance industry will change these real and imagined perceptions and secure our long-term future.

Yours faithfully,

GEOFFREY SAUNDERS

Chairman, Association of

Insurance and Risk Managers

in Industry and Commerce

London, EC3

10 August

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in