IUA plans to develop central risk function in 2025 to address emerging risks

The International Underwriting Association (IUA) is reviewing its core services for London insurers to adapt to the evolving nature of risk transfer, with plans to establish a central risk function focused on issues like sustainability and cyber risk in its 2025 business plan.

The review process will assess the operation of existing underwriting and claims committees focusing on traditional lines of business. Currently, the IUA oversees over 30 such groups, composed of senior company market representatives.

Dave Matcham, Chief Executive, said, “Recent years have seen the emergence of new risks, often driven by technological change, that span traditional classes of insurance business. London is at the forefront of developing insurance and reinsurance solutions for these challenges and the IUA needs to make sure it is equipped to help members respond to modern realities and changing customer needs.”

He added, “We will be looking to foster better cooperation on issues that have widespread impact. A more holistic approach has already been seen in our work on sustainability and cyber risk, but there are many other areas requiring similar discussion. For example, artificial intelligence, geopolitical uncertainty, parametrics and insurance distribution models.”

The IUA’s 2025 business plan also emphasises education initiatives, claims-related issues, regulatory developments, and operational digital enhancements. The association plans to expand training initiatives to meet growing demand from companies seeking to develop the next generation of talent, offering around 40 events and networking opportunities.

The IUA will also publish good practice guides on claims and investigate emerging claims trends, particularly social inflation and the rise of third-party litigation funding and class actions.

Additionally, the IUA will monitor the finalisation of the Solvency II framework in the UK and anticipate a new policy statement on Consumer Duty regulations.

Lastly, the digital transformation of the London Market through the delivery of phase 1 of the Velonetic Blueprint Two initiative is a priority for IUA members. The association will play a central role in key strategic and operational discussions, as one of three shareholders in Velonetic, alongside DXC and Lloyd’s.

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