Welcome to FINEX UK’s Banking market update. In this issue, we share our experiences for the first half of 2022 and our outlook for the second half, whilst also discussing some of the emerging issues that the Banking sector are likely to be navigating. During this first half of the year, the lingering effects of COVID-19 began to fade with the lifting of government restrictions, many people returning to their offices, at least for part of the week, and life beginning to resemble something close to normal. The difficult market conditions that the banking sector has endured whilst procuring their financial lines insurances over the past two years has much improved. The combination of aggressive insurer growth targets and an injection of new capital has meant that healthy market forces have returned, and there is a general sense from insurers that portfolios are in a more sustainable place. However, Cyber insurance is the notable exception to these positive trends.
There are however some headwinds with which to contend, including the cost of living crisis, the end of government support for businesses, and of course the crisis in Ukraine. Environmental, social and governance (ESG) remains high on the agenda for banks, governments and regulators worldwide, and we expect to see continuing close insurer scrutiny on how banks are managing these issues.
We hope that this update provides meaningful guidance to clients when preparing for upcoming renewals, managing stakeholder expectations, and assessing the impacts that industry events may have on your financial lines programmes. At WTW, we remain focused on working closely with our clients and delivering excellent service, and utilising our market leading data and analytics, risk insights and our experienced team to support clients to achieve the best outcomes. Even with the moderation in the market that we have outlined, we continue to work with our clients to explore the use of captives, alternative programme structures, self-insurance and risk financing portfolio analytics to better manage programme volatility in the future.
Should you have any questions or wish to discuss any of these issues in greater detail, please do contact me or a member of your WTW team.
Willis Towers Watson offers insurance-related services through its appropriately licensed and authorized companies in each country in which Willis Towers Watson operates. For further authorization and regulatory details about our Willis Towers Watson legal entities, operating in your country, please refer to our Willis Towers Watson website. It is a regulatory requirement for us to consider our local licensing requirements.
| Title | File Type | File Size |
|---|---|---|
| FI Banking Update – 2022 H1 (US) | .5 MB |
