With the New Year in full swing, the question on the minds of many in the insurance market is whether the key themes of 2024 – geopolitical, economic, regulatory and otherwise – will continue to dominate conversations in 2025.
From the perspective of Jon Walker (pictured left), CEO of AXA Commercial, there’s no doubt that the year ahead will continue to field discussions about Consumer Duty, the regulatory environment and engaging with the new government.
“Following its introduction in July 2023, Consumer Duty has been a hot topic for insurers and brokers, but hopefully as any business changes are embedded, this becomes ‘business as usual’ and will be less of a topic of conversation as we move through 2025,” he said. “Certainly, the regulator will be really clear about expectations now the industry has had time to digest the legislation and ensure it is meeting the requirements.”
Consumer Duty is also on the mind of Matthew Hill (pictured centre), CEO of the Chartered Insurance Institute (CII), who anticipates that it will continue to drive many conversations in 2025. There is also likely to remain a focus on insurance claims, he said, to ensure individuals get the best service possible and appropriate redress in times of need.
“We also know from our Public Trust Index data that many existing customers still feel as if they are not getting fair rewards for their loyalty, despite the FCA’s rules on general insurance pricing,” Hill said. “Any tensions around premiums will not be helped by further cost-push inflation, which continues to be a challenge for the sector, particularly in relation to electric-powered cars and flood protection.”
Walker noted that the evolving regulatory environment is another enduring topic, and AXA Commercial expects to see more updates in the coming months as regulation keeps pace with the changing insurance landscape. “Putting customers at the heart of everything we do, from the products we provide to the service we deliver and the claims we settle, will remain our priority, and we welcome regulatory changes that help us achieve this aim.
“The change of government this year has provided challenges and opportunities that will continue throughout 2025 as we explore key issues and build relationships with the new ministerial team. We will continue to share our knowledge and expertise to inform government thinking and decision-making, such as our recent research into the areas of England most vulnerable to extreme weather in the wake of ambitious government house-building targets.”
Meanwhile, Mark McIlquham (pictured right), CEO UK at Acrisure, expects tech and artificial intelligence to commandeer conversations in 2025. This is only just the beginning of the phenomenon in the insurance industry, he said, and while some in the sector made inroads in 2024, there is so much more that can and should be done to improve quality, service and, ultimately, customer outcomes. “The obvious benefits are clear, but I also appreciate that not every organisation is able to invest the huge amounts of capital which we have done at Acrisure.”
As outlined in AXA’s latest annual Future Risks Report, cyber risk was ranked the third most significant concern for experts and members of the public in 2024. “We know that SME customers are searching for a product that has been designed with their needs in mind,” Walker said. “We’ll expand on our mid-corporate proposition further as we grow our footprint in collaboration with AXA XL.
“We’ll also explore how we can further support our SME and micro-SME customers, creating more flexible solutions that are aligned to their needs and ways of working. For micro-SMEs, we will explore ways to make our insurance offering even more inclusive and help them to navigate the often challenging early years of getting their business up and running.”
For Hill and his team at the CII, a key area of focus will be ensuring its more than 120,000 CII and PFS members and other aspiring professionals can access learning and qualifications that support their career growth and competence, as defined by its Professional Map. “We’re also in the process of revising our rules around Corporate Chartered status, so firms can more easily explain how they set themselves apart and achieve their growth ambitions.”
