PRA concerned about insurers under pricing risk
Coverage of David Rule’s speech in Dublin this week suggests that the PRA (Prudential Regulation Authority) is concerned about a race to the bottom amongst carriers keen to retain market share in the soft market.
Mr Rule is the PRA’s Executive Director for Insurance Supervision and so ought to be listened to. He wants insurer’s Boards to “seek evidence that underwriters are maintaining appropriate discipline”. At Risk Solved we have to ask – how can that evidence be provided when most in the market are surveying less than 6% of their property risks per annum, and many don’t even consider risk assessment of other classes.
It seems to us the regulator is making a call for insurers to price accurately based on better risk data. Our risk management software can deliver 100% survey coverage of all risks across all classes of business. We recommend insurers and brokers start using it – it would appear that the regulator would like you to.