Promoting Insurance as a Force for Social Good
Richard Dudley, group chief broking officer for BMS Group, has issued a challenge to the re/insurance market to move beyond viewing insurance as a “necessary evil” and instead promote it as a critical component of societal functioning. In an interview with Insurance Business, Dudley emphasized the need for the industry to be proactive in highlighting its positive impact.
One way to achieve this is by engaging in discussions around closing the climate protection gap and supporting individuals and communities affected by various challenges. Dudley pointed to his involvement with the Insurance United Against Dementia (IUAD) campaign as an example of the industry coming together for a social cause. The campaign recently hit its initial £10 million fundraising target and has set another £10 million goal for its next phase.
Dudley stressed that insurance underpins virtually all economic activity. “There isn’t anything that happens in the economy without it being insured in one form or another,” he said, citing examples such as Directors’ and Officers’ (D&O) policies and insurance for offshore wind farm construction. He believes the industry has not effectively communicated its importance to economic development.
The industry faces a challenge to innovate in response to rapidly changing risks driven by technological advancements, geopolitical uncertainty, and climate change. Businesses are continually reimagining their models and creating new technologies, and insurance must be equipped to support this innovation. Dudley called for the industry to be more entrepreneurial and invest in addressing emerging challenges.
“Businesses out there are reimagining their business models… and all of that requires our industry to really innovate to address this innovation properly,” Dudley said. He acknowledged that while there are examples of innovation within the industry, it needs to scale up its efforts to keep pace with the changing economy.
Dudley’s challenge to the re/insurance industry is to commit to greater innovation and entrepreneurialism. By doing so, the industry can better support economic activity and demonstrate its value as a force for social good.
