London Market Could Face Claims Expertise Challenge

The latest update from TMK for you;

 The London Market could face a growing claims expertise challenge as increasingly complex risks place greater demands on claims professionals, according to new research from Tokio Marine Kiln (TMK). While most brokers remain positive about the market’s current claims capabilities, many are less confident that it will have sufficient senior expertise to navigate the claims challenges of the future.

Three quarters (75%) of respondents believe the London Market is either leading the way (31%) or keeping pace (44%) with developments in claims. However, confidence declines when brokers look further ahead. Only one in four (25%) feel very confident the market will have enough senior claims expertise over the next decade, while more than a quarter (27%) have no confidence.

That confidence gap comes as brokers identify a range of complex and evolving risks that will place increasing demands on claims expertise in the years ahead. Cyber and systemic attacks were cited as the area where the market is least prepared (27%). Other risk areas highlighted are:

• Technology and data capabilities (25%)
• Geopolitical and conflict-related risks (21%)
• Climate-driven events and regulatory and legal complexity (both 11%)
• Supply chain and contingent risks (both 3%)

Despite these concerns over the future availability of senior claims expertise, talent development and succession planning was identified as the top investment priority by only 15% of brokers.

Tobin Ryan, Head of Claims at Tokio Marine Kiln, said: “At TMK we hire for character as much as technical skill.  Adapting to rapidly developing situations takes more than technical know-how, especially with the rising novelty and complexity of losses, for example cyber or geopolitical risks. We often see that good judgement now means knowing when to get involved and when to step back, empowering our experts to help clients recover from a loss.

“As risks evolve and become increasingly complex, the time to invest in people is now, before the claims that need them arrive. We already have enormous talent within the market with excellent candidates now seeing the London Market as a destination career. The challenge is to give that talent the best in training and opportunities to build rewarding and enjoyable careers in claims. That is something we at TMK strive to do every day.”