ANALYSIS - INSURANCE BUSINESS AMERICA Continued From Page 18
DATA ANALYTICS ‘THE HOLY GRAIL’ FOR INSURERS data analytics and let it be managed through a portal, and they then can use the insights delivered to differentiate themselves from the competition. But they have to start climbing that mountain from the very first percent by developing the basics, which are practically the same for every company.” Data analytics, in that sense, will be a product for insurance companies that will need to be managed by business-minded professionals as opposed to strictly technical experts. It is the business-minded professionals, according to Raskin, who understand that “data is an asset that can be ameliorated over time” through targeted analytics. “Analytics is the Holy Grail,” he stressed. “But to reach that Holy Grail, you’ve got to have the data, which is 70% of the effort. If you’re excelling with data, you will excel with analytics and you will gain a competitive advantage.” www.chart-exchange.com
LLOYD’S REPORTS STRONG 2021 HALF YEAR RESULTS WITH £1.4BN PROFIT AND 92.2% COMBINED RATIO
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ross written premiums increased to £20.5bn (HY 2020: £20.0bn) due to an increase in premium rates, high customer retention and new growth for the first time in four years. Premium rates increased by 9.9%, continuing the trend of 15 consecutive quarters of positive rate movement. The combined ratio of 92.2% (HY 2020: 110.4% and 97.0% excluding COVID-19 claims for FY 2020) is a solid improvement with a 4.8 percentage point reduction on the previous year, excluding COVID-19. These results demonstrate the substantial turnaround of Lloyd’s profitability and performance. Lloyd’s continued to provide significant support to its customers around the world, paying £9.4bn of claims, including to customers impacted by COVID-19 where 80% of TABLE OF CONTENTS
the claims notified to date have been paid. Improvements to the combined ratio have been driven by notable reductions to both the attritional loss ratio and the expense ratio. The attritional loss ratio of 50.5% (HY 2020: 52.6%), is a 2.1 percentage point reduction from the ratio reported for the first six months of 2020. The expense ratio of 35.8% (HY 2020: 37.7%) is a 1.9 percentage point improvement, and 3.7 percentage points improvement since 2017. The reduction in operating expenses remains a focus of Lloyd’s digital transformation programme. Lloyd’s maintains strong capital and solvency positions, with net resources increasing by £2.6bn to £36.5bn, reinforcing the exceptional strength of Lloyd’s balance sheet
See Lloyd’s Profit Report Pg 40 OCTOBER 2021
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