The IUA will also update members on Brexit-related issues

The International Underwriting Association (IUA) has highlighted two key London Market issues – climate change and cyber warfare in its 2020 business plan.

It is setting up a market group to examine the growing impact of climate change policies on a range of insurance activities such as investment, underwriting and risk management.

Meanwhile, cyber continues to dominate its member discussions across various lines of business, with the IUA’s cyber committees focussing on consequences of cyber warfare ahead of a new research paper to be published this year. 

Other focusses include model cyber clauses and an underwriting questionnaire as part of its business plan this year.

Dave Matcham, the IUA’s chief executive explained that business challenges facing companies are evolving and the work of the IUA is changing to reflect this.

“The year ahead is already shaping up to be a fascinating one for the company market in London and we are looking forward to delivering a wide range of services for the firms we are proud to represent, he continued.

In 2019 the Prudential Regulation Authority called on insurers to develop a strategic approach to managing the financial risks from climate change and our members are responding.

More than 20 companies have already nominated representatives to its new committee on this subject.

“Questions around the challenge of covering cyber risks are being asked across the London company market and will feature prominently in the IUA’s work throughout this year.

Indeed, we will be producing an overview document for members that allows them to monitor the many different cyber projects that are being pursued across our 20 plus underwriting groups,” Matcham added.

Post-Brexit environment

The IUA warned that in a post-Brexit environment there will also be a greater possibility for a more independent UK approach to international trade restrictions and the IUA’s sanctions database will therefore be expanded.

As Brexit is confirmed the IUA’s public policy work will include updating members on regulatory changes.

Meanwhile attention will turn towards shaping a new trading relationship between the UK and the EU as well as opportunities for company market interests to be featured in new trade negotiations around the world.

Other research and best practice projects planned by the IUA in 2020 will cover delegated authorities, developing technologies, illegal ship-to-ship transfers and the discount rate.

On business process reform, this year will see the IUA participating fully in projects such as claims processing that are being developed as part of the Future at Lloyd’s blueprint but might impact the whole London market.

PPL remains the main vehicle to deliver e-trading and significant enhancements to the platform to ensure it can deliver an effective end to end digital solution will be likely over the next 12 months.

“Over the past five years membership of the IUA has increased by around a third and is now at a record level,” added Matcham.