Innovation and digitisation have percolated through both the B2B and B2C insurance industry in recent years. This is particularly true in the credit insurance industry and its niche political risks and structured credit market, otherwise referred as the Credit and Political Risks Insurance (CPRI) market. The primary goals are to automate and simplify, but this modernisation carries many additional benefits for market players and clients. Not only does it improve market pace and response time, but it also means better data reliability and client service.
Innovation done right
The CPRI market is intermediated, given the variety of risks, transactions and placement processes that sometimes involve several underwriters sharing one and the same risk. However specific it may be, this market doesn’t shy away from innovation. Any innovation just needs to match the market’s specific needs. So how can insurers in this CPRI market contribute?
As Head of Operations and Innovation at Allianz Trade’ Transactional Cover Unit (TCU), I focus on finding solutions to improve the way we work. And if you ask me, there are a few specific things that need to happen for this industry to meet its modernisation needs. Firstly, we need to support market initiatives, in particular through the use of electronic placement platforms. We also need to contribute to market data standards, and build and test new digital solutions. These should help to build efficient underwriting tools, better serve the intermediation and the broker-underwriter relationship, and eventually improve the service we offer clients.
As Head of Operations and Innovation at Allianz Trade’ Transactional Cover Unit (TCU), I focus on finding solutions to improve the way we work. And if you ask me, there are a few specific things that need to happen for this industry to meet its modernisation needs. Firstly, we need to support market initiatives, in particular through the use of electronic placement platforms. We also need to contribute to market data standards, and build and test new digital solutions. These should help to build efficient underwriting tools, better serve the intermediation and the broker-underwriter relationship, and eventually improve the service we offer clients.
A need for speed
However specific, the CPRI market is no different from other B2B insurance markets: it’s a highly competitive environment, with clients seeking appropriate cover from specialist insurers. In order to guarantee that these clients receive the right insurance offer for them in as short a time as they require, and to drive a speedier insurance market overall, there is a need for innovative tools.
Recently, curious about exploring the possibility to automatize the broker-insurer process, and in particular the insurance cover request process, we at Allianz Trade tested the possibility of automating and digitising the acquisition process. The aim was to enable brokers to easily submit their credit cover requests, and underwriters to acquire them automatically and digitally, process them quickly, then analyse data. This would enable them to—you guessed it—underwrite and respond faster.
Recently, curious about exploring the possibility to automatize the broker-insurer process, and in particular the insurance cover request process, we at Allianz Trade tested the possibility of automating and digitising the acquisition process. The aim was to enable brokers to easily submit their credit cover requests, and underwriters to acquire them automatically and digitally, process them quickly, then analyse data. This would enable them to—you guessed it—underwrite and respond faster.
Going digital
In October 2021, we delivered a successful proof of concept for the first-ever application programming interface (API)-based integrated broker-underwriter platform for the CPRI market . Working through an existing, external platform, the idea was to have an interface that may eventually replace the old system of brokers sending requests by email, with underwriters manually adding and saving data onto their own systems before even being able to start underwriting. We have proven that broker and underwriter system integration is possible, enabling both parties to be able to connect to each other and easily share information in the same digital language.
The system is currently in a pilot stage, but we’ve identified several additional benefits for all parties, including the customer, the broker and the underwriting team. They include higher operational efficiency thanks to the limited number of steps to complete on each side of the transaction; instant access to quote requests; faster response times; and easy data analysis. Most importantly, our proof of concept shows that a more streamlined future in trade credit insurance is not only possible, but could soon be available at our fingertips.
The system is currently in a pilot stage, but we’ve identified several additional benefits for all parties, including the customer, the broker and the underwriting team. They include higher operational efficiency thanks to the limited number of steps to complete on each side of the transaction; instant access to quote requests; faster response times; and easy data analysis. Most importantly, our proof of concept shows that a more streamlined future in trade credit insurance is not only possible, but could soon be available at our fingertips.
Working towards the future of credit insurance
We live in a world that expects both speed and improved accuracy. And when it comes to insurance, there is a clear path towards fully digital trading. At Allianz Trade, we aim to drive innovation in the digital space and envisage a future where insurance cover is offered with greater efficiency, reliability and operational excellence. So, watch this space!
Got questions? Connect with Thomas
Thomas Laporte-Many
Head of Operations & Innovation - Transactional Cover