2020 professional vision published

IN JULY, the government-sponsored Insurance Industry Working Group published its 70-page blueprint for the future of general insurance. The thrust of the report was the need to increase customer confidence and trust by improving financial education. Disappointingly but not unexpectedly, the report stopped short of an action plan.

The group behind the report was set up in November 2008 and is co-chaired by Chancellor of the Exchequer Alistair Darling and Andrew Moss, chief executive officer at Aviva. The broking sector is represented in the main by Brendan McManus, the former RSA stalwart who is presently chief executive officer at Willis UK & Ireland.

The group's white paper, Vision for the insurance industry in 2020, sets out some bold aims and recommends: "Action from the insurance industry, government and the Financial Services Authority to increase customer confidence and trust through improving financial education and considering further steps to improve transparency, simplicity and access for consumers."

This represents, therefore, a partnership between the profession and the government to attempt to better manage risk in society and explore options to increase savings and protection provision. For example, government and industry should consider sharing data and research findings to help reduce the likely impact of risks such as flooding and crime.

Furthermore, work is suggested to help consumers manage financial distress, building on the government's financial capability initiatives. The insurance sector should work with government to assess the scope for a greater industry role where it is commercially viable, such as helping people with the need for a retirement income and help with long-term care.

The group is also concerned with encouraging capital flow into the UK insurance sector by ensuring its competitive position in the global marketplace is maintained and enhanced.

Moss commented at the launch: "The insurance industry makes a great contribution to the UK economy. Taking forward the recommendations in this report will create a stronger partnership between government and the industry, which is essential to help people manage the risks of everyday life.

"Taking steps now will build customer confidence and deliver our vision to become the world's leading insurance centre."