Underwriting Agencies Council Reveals Industry Outlook for New Zealand

With three and a half years since its establishment, NZUAC has been dedicated to supporting underwriting agencies and facilitating consolidated representation within the insurance marketplace.

The New Zealand Underwriting Agencies Council (NZUAC) was first established in February 2020 and has been dedicated to supporting underwriters and facilitating consolidated representation within the insurance marketplace. Gallagher Bassett has a longstanding global partnership with UAC and as we mark three and a half years since its creation in New Zealand, our Chief Client Officer, Steven Walsh, sat down with Nigel Edmiston, Executive Director – NZUAC, to gain insights into the industry, market opportunities and the initiatives driving NZUAC's mission forward.

Steven Walsh (SW): NZUAC was established in February 2020 with the goal of supporting underwriting agencies and consolidated representation in the evolving insurance marketplace. Can you please share an update on how the past three years have been and how NZUAC is progressing toward achieving this goal?

Nigel Edmiston (NE): The past few years have had good success as we grow our membership of underwriting agencies and supply partners. Our aim has been to deliver value to our member base, but with very limited resources this remains a challenge. Adding value continues to be a primary goal for NZUAC in supporting the development and growth of specialist underwriting agencies to deliver the insurance objectives of their partnering businesses. Most recently, the Auckland floods and Cyclone Gabrielle weather events have caused enormous claims pressure for our members and the industry as a whole. Having hit insurers nationwide, the dual catastrophes have certainly impacted the appetite for risk looking forward.

SW: What changes have you seen in the industry since the NZUAC was established?

 NE: The industry’s core principles and market dynamics largely remain the same, however, the recent weather events and ongoing industry challenges have certainly resulted in significant losses for insurers. As a result, we’ve seen a shift in reinsurer capacity support and appetite for risk in New Zealand. This inevitably provides opportunities for our members as the major insurers limit their risk appetite and raise pricing to reflect the losses they have suffered.

SW: What are the main opportunities currently facing underwriting agencies in the New Zealand insurance market?

 NE: Our members are also currently confronted with the challenge of maintaining underwriting capacity and support. However, this situation inherently presents opportunities for them, provided they can secure the appropriate underwriting support. Additionally, the rapid expansion of new markets, like Cyber, has led one of our new members to venture into this specialised domain as a Cyber underwriter. We look forward to seeing the success of this venture and would encourage others to consider expansion opportunities in emerging markets.

SW: What is NZUAC’s main focus areas, or themes this year, and how are these impacting the industry?

 NE: Looking ahead, the primary focus lies in offering a platform for our members to foster business growth and enhance their capacity to tackle industry challenges. This year’s expo theme of ‘challenging markets and innovative solutions’, expands this to the global and local markets that have placed pressures on insurer capacity to accept risk. Additionally, innovation remains the pioneering strategy of our members to meet the challenges facing insurance brokers and their customers. The upcoming NZUAC Expo scheduled for October 25 will provide our members with a valuable opportunity to showcase their service offerings to brokers and strengthen their relationships within the industry.

SW: What resources or support does the NZUAC offer to underwriting agencies in the insurance market?

NE: We look to provide valuable support to underwriting agencies in several key areas. This includes timely legal updates from our sponsor law firm, facilitating opportunities for hard-to-place risks, organising networking events for our members, and in future we hope to enhance training and communication through more regular newsletters and webinars. Our aim is to empower our members by keeping them informed, connecting them with unique underwriting opportunities, fostering a sense of community, and facilitating continuous learning to strengthen their expertise. As industry challenges arise, we will represent their interests and offer support to navigate the changing landscape.

For those seeking support in growing their capacity and profitability amid economic constraints, you can find more information about NZUAC at https://www.nzuac.org.nz/. As a valued partner of Gallagher Bassett, NZUAC has been instrumental in supporting access to underwriting agencies and insurers nationwide.