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See all the news storiesThe personal accident insurance market in Europe is ripe for change. There are many local players who are typically restricted in terms of the capacity and coverage they can offer, potentially under-serving their clients’ needs.
There are many benefits to insurers having a local presence. A boots-on-the-ground approach confers unrivalled knowledge and insights on the market. It enables carriers to discuss and understand local issues with native nuance.
However, if local markets cannot furnish clients with the cover they need or want, evolve their offering or provide a bespoke, specialist product, then the benefits of a local presence are dampened.
Across the European personal accident market, local players dominate, thanks to their offer of regional knowledge and deep understanding of the individual businesses taking out cover.
Much of the cover available is focused solely on accidents in the workplace. For high earners, benefits can be limited, sufficient only to protect more basic standards of living.
The standard of cover can also vary markedly across Europe. Due to lack of capacity, lower limits are provided in some countries compared to others and local carriers often struggle to support larger or more complex needs. Coverage is limited, benefit periods are shortened, and income protection is often lacklustre.
In addition, to provide appropriate cover, local insurers frequently require additional detail information including medical information for each employee. This process can be time consuming, invasive and if medical exclusions are applied, can ultimately restrict the extent of coverage.
On the other hand, global insurers with abundant capacity can offer larger limits on employee cover and, by extension, better outcomes for workers. For white-collar employees who often demand superior coverage, better packages can be a key differentiator for competing brands.
International insurers bring the advantage of scale; often giving longer benefit periods, higher coverage limits and much more comprehensive packages without the need for intricate details on the business.
This does, however, risk losing the benefits of localised expertise if not implemented correctly. While global players have made inroads, the local knowledge and expertise of domestic carriers has largely resisted. This has not always been to the benefit of insureds.
For the most part, corporates across Europe are having to find a compromise between these two routes. On one hand, the strong localised knowledge of regional providers can be of great assistance when developing bespoke insurance plans. On the other and in contrast, the bigger carriers provide a much higher limit on policies that better service the rising expectations of employees as medical bills and the cost-of-living rise. Neither in isolation is ideal.
Taking a hard line towards either route can be a disservice to employees and businesses. However, the reality is that you do not need to choose. By working with an insurer offering a ‘global - local’ approach, you can get the benefits of both.
At Tokio Marine HCC, we have a team of specialty underwriters and over 35 years of specialty insurance experience under our belt. Our local teams focus on Europe from offices in Belgium, France, Spain, Germany and the UK.
They are highly specialised, with a fundamental understanding of their local markets. This way, we can build policies with the background context of local markets and offer coverage backed by the larger capacity that a global insurer provides.
For brokers, there is a commercial opportunity. Better packages equal happier clients. For businesses, better coverage gives a competitive advantage. For employees, there are better protections for lifestyles and families in the event of a loss.
A global-local approach ensures the best results for all those involved and at Tokio Marine HCC, we firmly believe it is the way forward. It will disrupt the market. And it should be welcomed.
