A personal view from Andrew Kendrick – well worth reading. Published by CII. http://www.cii.co.uk/search-results/?q=thinkpiece+97&searchIn=site
In particular on page 4, a plea for risk based pricing, without which the sustainability of an insurer seems more and more to depend on good fortune.
How long will investors, regulators and policy-holders tolerate a ‘good luck’ argument?
Some insurance products have a strategic role to play in lubricating the economy. My suspicion is that these will be the focus of the insurance regulator. Risk based pricing and transparent systems for managing emerging risks will be very important to them. Margin, market share and group exposure cannot always be traded off against each other, at some point insurance must keep its promises.