What key trends have shaped the direction of travel of the schemes market over the last 12 months? This was the question put to a panel of schemes experts in the latest of IB TV’s ‘big question’ series.
Among those lending their insights was Bspoke Group CEO Tim Smyth who noted that regulatory change is at the core of recent movement in the space. The advent of Consumer Duty is bringing a lot of change, he said, but there are also several other changes from the regulator which is impacting the schemes market.
Aviva’s head of schemes and DUA Wendy Carrigan also identified the onset of Consumer Duty as a key change and she highlighted that with the whole insurance industry rising to that challenge, the schemes market is not immune to that impact.
“For example,” she said, “we already measure conduct within our schemes management exposure, to have real equal balance on consumer outcomes. And that means refreshing some of our policy wordings to make it clearer for customers to understand what they’re insured for and what they can claim for.”
Paul Howard, head of coverholder development at AXA XL, highlighted that regulatory challenges are being factored into the way companies are doing business in the schemes market, particularly the development of Consumer Duty and the new emphasis on product value. And he pinpointed embracing technology as the key to handling the challenges and making the most of the opportunities facing the schemes sector as it navigates ongoing market changes.
“I think people have been trying to improve their systems and look at the way that they do their business to make things more efficient and slicker and more effective,” he said. “[…] And I think the other thing is about the fight for talent. The sector maybe hasn’t invested in talent as much as it can and it has got some really good opportunities for people looking to either start their insurance career or develop it”.
Watch now: What’s changed in the UK schemes market?
