Rob Tolley

For businesses, having a comprehensive financial strategy in place is vital for sustainable business success.  

As well as enabling a business to better manage its finances in general, such a strategy puts a business in a better position to seize opportunities, create long-term value for stakeholders and weather economic downturns. 

What Should a Financial Strategy Incorporate? 

A financial strategy should detail the financial goals of a business (ensuring they align with its overall values), address how it will manage its costs and resources effectively, and set priorities. 

When writing a financial strategy, the business should set out both its long- and short-term goals, include comprehensive forecasts, and detail its capital structure by determining the optimal mix of equity and debt to fund growth initiatives and operations. The strategy should also include details regarding how investment decisions will be made and how it will approach risk management. 

Pursuing Funding 

If a business is planning to pursue funding, it’s important to ensure the financial strategy also includes potential risks and an outline of the exit strategy. The latter is a plan for how an entrepreneur (or investor) will transfer ownership of the enterprise to a third party in the future. This could be through the business being acquired by another company, an employee or management buyout, or the sale of equity. 

Financial Planning and Strategic Planning 

Successful entrepreneurs, such as Rob Tolley, former London broker, understand that financial strategising should combine elements of strategic planning and financial planning to define the overall direction of the business’s finances and how this will deliver on innovation and growth goals. The strategy should take into account new technologies and tools (such as AI and machine learning) to make the most of the efficiencies and enhanced insights these things offer. 

Financial Strategy: A Real-World Example 

As those with extensive corporate experience – such as Rob Tolley – know, a solid financial strategy is vital for all businesses, including the tech behemoth Apple Inc., to drive sustainable growth.  

Apple’s strategy has placed a focus on product and service diversification, while keeping innovation a priority. This has resulted in consistent investment in research and development to maintain a competitive market edge and generate new revenue streams.  

GSU, headquartered in Florida, is a managing general agent offering specialist underwriting services in facultative reinsurance to businesses in the Middle East, Asia and Africa on behalf of rated reinsurers. The company provides a range of products in the sectors of energy, marine cargo, marine hull and machinery, specie and surety. 

Energy Products 

Offered on a worldwide basis, GSU’s energy products are designed to deliver real solutions to its clients. Tailored risk transfer solutions can be provided on an insurance or reinsurance basis to select and key partners. 

Marine Hull and Machinery Products 

From global enterprises to smaller local and domestic companies, GSU’s marine hull and machinery products offer coverage that includes loss of hire, builders’ risks, voyage and tow, marine war, bluewater tonnage, specialist tonnage, yacht and pleasure craft, and mortgagee’s interest. 

Marine Cargo Products 

GSU’s marine cargo products are offered on a worldwide basis, with a focus on client-based services in Africa, Asia and the Middle East, with products tailored to meet the needs of each individual client. Coverage options include stock throughput and cargo in transit (land, air or sea). Activities and sectors covered include containers, grains and foodstuffs, bulk and breakbulk, crude oil (and related products), manufactured goods, machinery and equipment, and project cargo.  

Specie Products 

Offering global coverage, the specie products available from GSU (a company founded by Rob Tolley, former London broker) cover activities including manufacturing, refining, retail, wholesale and more, to protect precious metals and stones, antiquities and fine arts. 

Surety 

The team at GSU, which formerly included reinsurance expert Rob Tolley, has extensive experience in surety products, allowing the company to offer this niche class to a wide variety of clients. It can provide bespoke, tailored offerings with key coverages including tender and bid bonds, performance bonds, advance payment bonds, warranty bonds, rental bonds, and warehouse and custom bonds, in activities such as construction, import and export, and within the services industry. 

Why GSU? 

Founded by a group of like-minded investors, GSU is on a mission to be the leading reinsurance MGA for Africa, Asia and the Middle East.  

As well as in-depth knowledge and expertise in a range of speciality insurance products, the company prides itself on exemplary communication with clients, reliability and consistent provision of high-quality, professional services.  

Underwriters work within the finance industry to assess and assume risk, including evaluating risks in insurance, mortgages, investments and loans for a fee or commission. They help ensure financial transactions progress smoothly and are usually associated with financial institutions. An underwriter balances the likelihood of a successful outcome against potential claims or defaults. 

What Are an Underwriter’s Responsibilities? 

Working in areas such as equity markets, insurance and mortgages, lead underwriters are often referred to as book runners. Modern underwriters undertake a variety of tasks, which will depend on the industry in which they work. As well as determining level of risk, they typically also handle sales activities and may buy an entire IPO issue to resell to investors, where relevant. 

How Does an Underwriter Evaluate Risk? 

Those with experience in this field, such as Rob Tolley, former London broker, know that underwriters typically rely on both actuarial data and computer programs (that deploy algorithms) to evaluate the risk to the insurance company.  

They use data models to predict the expense associated with insuring, for example, a healthy individual of a specific age, an individual within a certain income bracket, someone with a specific family disease or an individual that has a certain occupation.  

An underwriter’s overarching goal is to help the insurance company avoid claims that may result in a large payout. 

What Is the Most Common Type of Underwriter? 

One of the most common types of underwriter are mortgage underwriters. These individuals help to ensure loan applicants meet all the necessary requirements so that the loan can be approved or denied. Insurance underwriters are another common type of underwriter. They assess applications for insurance coverage so that, again, an applicant can be accepted or rejected. 

Some underwriters work in the equity markets, and their role is to administer the issuance and distribution of securities (from a corporation or similar entity) in the form of preferred or common stock. 

Debt security underwriters, meanwhile, purchase debt securities to subsequently sell for a profit. When multiple underwriters are required to distribute and manage risk effectively, they form syndicates to this end. 

What Skills Does an Underwriter Need? 

A financial strategy is a combination of strategic and financial planning and is an essential part of helping a business to ensure it meets its goals in the short and long term. The strategy should evaluate a company’s current costs, financial resources and budget and assess how these can be leveraged. As well as helping business owners make better-informed decisions, a good financial strategy can be an excellent means of risk mitigation.

What Are the Benefits of a Financial Strategy?

There are many benefits to having a financial strategy in place. As well as allowing for better decision making, such a strategy can deliver focus and clarity by identifying unnecessary spending that won’t help a business meet its objectives.  Furthermore, through effective budgeting and cashflow management, a business can achieve greater stability, minimising financial uncertainty and stress, and even maximise returns via disciplined, targeted saving and investment.

What Should be Included in a Financial Strategy?

A financial strategy should incorporate details about the business’s financial performance, expense outgoings, working capital management, investment planning and cash flow projection. Regarding the latter, it’s recommended to predict cash flow for a whole year to facilitate planning ahead and make it easier to spot potential cash flow issues.

Creating an Effective Financial Strategy

It’s important to take a structured approach to creating a financial strategy to ensure plans are aligned with the business’s overarching goals. To do this, seasoned CEOs like Rob Tolley know that it’s a good idea to assess the business’s strategic vision and then identify the ways that the financial strategy can support this.

Setting a budget is the next stage of the process, allowing the business, among other things, to allocate resources effectively and stay on track in terms of spending. It’s important to define clear key performance indicators (KPIs) in the financial strategy and make regular adjustments to these to ensure the strategy remains relevant. When developing the strategy, business leaders should work with colleagues across departments to best understand their financial needs and goals and foster company-wide alignment.

There are lots of benefits to joining a cycling club, whether one is a new or experienced cyclist, including the enhancement of a rider’s safety, social life and fitness. As well as promoting the sport, cycle clubs aim to foster a sense of community and provide a safe environment for members. They typically organise regular competitions, social gatherings and events, all of which have the aim of making cycling a more enjoyable activity.

Increase Motivation

A key benefit of joining a cycling club is that it can help with motivation: especially when it comes to getting out cycling during the winter months. Committing to regularly riding by joining a club can help boost engagement, even on the coldest of days.

Boost Fitness

Riding with fellow cyclists with similar fitness goals can be an effective way of encouraging us to push our limits and seeing tangible improvements, fast. Cycling strengthens the lungs and heart, improves coordination and balance, and enhances muscle flexibility and strength. The sport can also boost the immune system, improve mood and alleviate stress.

Develop New Skills

By attending a cycling club, members have the opportunity to learn essential and new skills from experienced riders and even pit themselves against the best riders in the club. The aspect of competition that cycling clubs offer a is great way for riders to hone their skills.

Socially Connect

Keen cyclists like Rob Tolley know that joining a cycle club is a great way to meet others who share the same passion, foster camaraderie and make new friends. Rob Tolley, former London broker, appreciates how group rides and social events organised by cycling clubs can enhance members’ social lives and keep them feeling motivated and engaged with the sport.

Tips for Riding in a Group

Objection handling refers to the techniques and processes deployed to address and overcome customer objections regarding a service or product. It’s a vital skill for those involved in customer service or sales.

Handling Objections

Successful CEOs – like Rob Tolley, former London broker – know that maintaining situational awareness is a key part of successful objection handling. In a nutshell, this means understanding the circumstances informing the customer or prospect’s objection in order to address them effectively. Keeping the focus on the customer’s needs and interests is one of the main factors in doing this.

Experienced managers such as Rob Tolley understand that empathy is also important, and those who are successful at handling objections are well aware that (in most cases) these objections reflect reasonable concerns. The objection handler should remain patient, even in the case of pushback, and always avoid becoming frustrated.

Asking the Right Questions

The ability to ask open-ended and thoughtful questions is the foundation of great objection handling skills. Relevant, tactful questions are often the best place to start, and the objection handler should be mindful to give the customer or prospect the time and space to answer them thoroughly. Those with objections should feel able to air their thoughts in order for the objection handler to best discover the underlying pain points.

Anticipating Objections

Effective objection handling relies on anticipating objections in the first place. This involves identifying and thinking about potential objections a customer or prospect could raise and preparing an appropriate response for each of these. A fundamental part of doing this is research; the customer or prospect’s goals, pain points and business (where relevant) should all be considered. This enables the creation of customer-specific responses to possible objections.

The Objection Breakthrough Formula

Some objection handling techniques involve using the objection breakthrough formula, which has three steps: break, disrupt and ask. The first step disrupts the emotional response through pre-prepared responses, while the second step aims to pique the customer or prospect’s interest and offer an alternative perspective. The final stage steers the discussion back to the original objective and is an opportunity to reiterate the value of the action first proposed in order to obtain agreement or compromise.

Navigating Towards a Mutual Goal

Europe is full of hidden gems, with plenty of places to visit that are far from the tourist throng, from ancient cities to remote island chains.

The Ancient City of Matera, Italy

Nestled in the south of Italy, the ancient city of Matera, perched atop its rocky hill, remains one of the country’s best-kept secrets. Matera languished abandoned for some years but has now come alive once more, and it is bustling with restaurants, galleries and boutique hotels. The cave dwellings of Matera are well worth checking out, such as the rocky church of St Lucia alle Malve, with its 13th century frescoes, and Casa Grotta di Vico Solitario, a museum housing artisan tools and furniture.

The Tiny Town of Aveiro, Portugal

Portugal may be a popular tourist destination, but relatively few visitors find their way to the little town of Aveiro, in the north of the country. Keen travellers like Rob Tolley know that it really is a hidden gem, with canals winding through the town, brightly coloured buildings and intricately decorated Moliceiro boats. Aveiro sits on the edge of a saltwater lagoon, the Ria de Aveiro, that was historically farmed for its salt, seaweed and fish.

The Green Appeal: Graz, Austria

Graz may be Austria’s second-largest city, but it’s still relatively unknown when it comes to city breaks. Surrounded by swathes of Styrian countryside, visitors can enjoy plenty of farm-to-fork cuisine here; Graz is particularly celebrated for its fresh produce and vegetarian dishes. However, fine food isn’t all the city has to offer; Graz has earned two UNESCO designations and boasts gorgeous frescoed facades, medieval cobbled streets, the ruins of a hilltop fortress and ancient churches to explore.

The Wild Outer Hebrides, Scotland

The Outer Hebrides islands, off the coast of Scotland, are among the most remote destinations in Europe and are home to awe-inspiring ancient sites, pristine sandy beaches and quaint seaside villages. The Isle of Harris and the Isle of Lewis are known for their delicious fresh seafood, hiking opportunities and the chance to spot whales.

The Rich Culture of Zagreb, Croatia

Traveling for business can be stressful and sometimes even uncomfortable, but taking a few simple steps can make the whole experience much easier and more pleasant for frequent business travellers.

Be Clear on the Company’s Travel Policy

Before doing anything else, it’s important for the business traveller to be familiar with their company’s procedures and rules relating to corporate travel. This includes things like who needs to approve the trip, expenses that can be claimed and how the refund process works.

Packing for Business Travel

It’s a good idea to only use carry-on bags and to pack light. Packing dress shirts in plastic garment bags will help keep them wrinkle-free in the suitcase, and taking along some casual clothing is advisable to make the most of any opportunities to explore the destination. Add some items to help with sleep too, such as an eye mask, pillow or headphones.

When packing, keep security checkpoints in mind; for example, electronics and liquids should be easily accessible. Make the most of packing cubes to get everything organised; each could hold a different day’s outfit or certain type of garments, like casual or gym wear.

Opt for Non-Stop Flights

While it may be tempting to break up a long flight with a layover, it’s usually best to book a non-stop flight to avoid lengthening a trip more than necessary. Exercise may help to counter the effects of jet lag. Exercising in the early morning or late afternoon can push your circadian rhythm back to an earlier time, while exercising in the evening can bring it forward.

Be Aware of Etiquette

Regular business travellers like entrepreneur Rob Tolley, former London broker, know that researching the country being travelled to allows you to find out about local etiquette, including etiquette relating to business. For example, while eye contact and handshakes are normal in the West, greetings in Asian countries often prioritise hierarchy and age. Similarly, business meetings in Mexico tend to be conducted over lunch, while Finnish business people regularly gather in a sauna to promote creativity and an open approach.

Make the Most of Airport Lounges

Frequent travellers such as Rob Tolley realise that airport lounges often offer a comfortable space in which to either relax or work. Wi-Fi connections, electrical outlets, food, drink, showers and even spa facilities can usually be found, presenting the opportunity to catch up on last-minute work tasks or take a break.

Store Receipts Properly

Those who would love to enjoy barista-style coffee at home will be pleased to know that doing so is possible. By simply following the coffee expert-endorsed tips below, anyone can create an amazing cup of coffee to savour without needing any expensive equipment.

Opt for Coffee Beans

Choosing coffee beans over ground coffee is the start of making great coffee at home. Beans retain their inherent aromatic oils better than ground, so they stay fresher for longer. This is because grinding the beans allows the coffee’s surface area to come into contact with oxygen, and it is this oxygenation that causes grounds to become flavourless and stale. For information on how to properly store coffee beans, take a look at the embedded PDF.

Freshness is Key

Coffee aficionados like Rob Tolley, former London broker, know that the freshness of the ground coffee beans is essential to make barista-worthy coffee at home. Ideally, coffee beans should be used within a month of their roasting date, and it’s best to purchase just the amount of coffee that one will use in a fortnight, rather than stockpiling it.

Grinding Coffee Beans

Rob Tolley understands that when it comes to coffee grinders, not all are made equal. Experts often recommend using a burr rather than a blade grinder as users can easily adjust the former to achieve the desired consistency. The brewing method should determine the size beans are ground to. For example, coarse is best for use in a cafetière, medium works best for filter coffee, and a fine grind is perfect to brew an espresso-style strong coffee.

Pay Attention to the Water

When making barista-style coffee at home, it can be easy to forget that the majority of the beverage is made up of water; to this end it’s important to use boiled, filtered water, and pausing once the kettle has boiled is also key. Experts point out that coffee can be burnt by just-boiled water, so it’s a good idea to leave the kettle to stand for a minute or two before pouring.

Get Pre-Warming

While waiting for the kettle to cool a little, it’s the perfect time to pre-warm your coffee mug. To do this, simply pour a little of the hot water into the mug to warm its walls, ready to receive the beverage.

Perfecting the Frothy Cappuccino Milk Technique

Trial and error – and plenty of practice – is the best way to achieve the perfect frothy milk for a barista-style cappuccino. Listen for a tearing noise when steaming the milk: this noise should be present for half the time the milk is being steamed to ensure it’s sufficiently foamy.

For cyclists, there are more opportunities to enjoy the sport than ever before, from riding in the great outdoors to using an indoor bike or a spin bike in a gym. This article will consider which is the best form of the sport.

Convenience

When it comes to convenience, it’s hard to beat indoor cycling; there’s no need to worry about the weather, donning layers of clothing or having to carry out a tricky repair on the side of a road. At home, cyclists can ride whenever they want, with minimal hassle, whether this is first thing in the morning, during a lunchbreak or late in the evening.

Boost to Mental Health

While indoor and outdoor cycling (as with all forms of exercise) are both great for physical and mental health, outdoor cycling may have the slight edge in terms of the latter. Cycling outdoors allows you to enjoy fresh air, sunshine and chatting with friends during the ride. However, internet connectivity and training apps now offer cyclists the ability to socialise even when exercising indoors.

The Cost Factor

Keen cyclists such as Rob Tolley know that whether cycling indoors or outdoors, there is likely to be a significant cost involved – although there are ways to mitigate this. For example, while a contemporary, high-end road bike can cost £10,000 or more, used models can be found for a fraction of this price. Similarly with indoor bikes, the cyclist could choose to purchase a pricey direct drive bike or a budget-friendly magnetic model.

Which Form of Cycling is More Challenging?

Generally speaking, outdoor cycling is the most physically challenging. Rob Tolley, former London broker, recognises that unlike riding indoors, cycling outdoors involves maintaining balance on often difficult terrain. This can help to develop better reaction times and the ability to shift weight, as well as build confidence. Of course, it’s worth noting that cyclists can make their workouts as easy or intense as they wish, whether they are riding at home or outdoors; in terms of the latter, this can be done by increasing the indoor bike’s resistance or cadence level.

Transitioning from Outdoor to Indoor Cycling

For those who want to transition from cycling outdoors to indoors, it’s important to ensure that the fit on their static bike is as close as possible to that of their outdoor bike. This means, where possible, adjusting the seat height, the distance between the saddle and handlebars, and the height of the handlebars as necessary.

Take a look at the embedded PDF to learn about the differences between spin bikes and indoor stationary bikes.

Surety bond underwriting is a pre-approval evaluation – performed by the surety – of the bond performance requirements as determined by the obligee. This evaluation also assesses the current financial situation of the principal in order to weigh up the risk related to the performance criteria and the principal's ability to reimburse the surety in the event of a claim occurring.

What Are the Stages of the Surety Underwriting Process?

The process starts with the principal applying for a surety bond through a surety bond broker or surety company. Upon application, the principal provides information to the surety regarding their business and financial history. Once this is received the surety performs a more detailed evaluation of the information provided. The surety then provides the principal with a quote for a surety bond premium, based on the risk level determined by the underwriters.

The principal has three options at this point. They can accept the quote and buy the surety bond, shop around for another quote or work with the surety to find ways of making their premium more affordable

What Are the Three Cs of the Surety Underwriting Process?

The three Cs of surety underwriting are capital, capacity and character. Capital relates to the applicant’s capital position and the assessment of the financial health of the company or individual applying for surety credit. Many bonds require an underwriter to perform a financial analysis to assess net worth, capital and the company’s trajectory. The applicant’s capacity to undertake and perform the contract is a vital part of the underwriting process, too. To this end, underwriters collect questionnaires, check previous work references, review the applicant’s business operations, get to know their processes and meet with the applicant themselves.

Finally, character. While this element can be very difficult to underwrite, there are tools that can be deployed, such as credit checks, to get a better idea of whether the potential principal is likely – or otherwise - to honour the obligations set out in a bonded contract.

Underwriting a Riskier Surety Bond

Rob Tolley (former London broker) is the CEO of Global Specialty Underwriters LLC, leveraging more than three decades of exceptional leadership experience to develop innovative business strategies for increased productivity and profitability. This article will look at business expansion and growth, sharing pointers to help founders scale their business and take their enterprise to the next level.

A concrete growth strategy is critical to the success of any business. Without one, the enterprise will be left at the mercy of potentially volatile market fluctuations and a fickle customer base.

The growth stage of a business is a phase when the organisation experiences unprecedented and sustained increases in both profit avenues and market reach. This can occur when a company launches new products or services, increases revenue or expands its customer base. Most businesses are launched with the key objective of growth, with business decisions typically based on what would contribute to expanding the business’s reach and making it more productive and profitable.

Business owners have several avenues open to them in terms of driving growth, which generally fall into one of four categories:

Strategic growth, where the company develops initiatives to promote long-term growth

Organic growth, where the company expands by utilising its own resources

Internal growth, by optimising internal processes to increase revenue

Mergers, partnerships and acquisitions, a riskier growth type that potentially offers greater rewards

A business grows through various different stages, with each stage having crises attached to it. For example, in a business experiencing a period of rapid expansion, operations may not run as smoothly as they did previously and managers may not be as efficient as their responsibilities and span of control increases.

Corporate expansion requires careful planning to create solid foundations for the future success of the business. Key components of a sound growth plan include:

Clear objectives

Growth strategies to achieve those goals

Details of marketing strategies to reach new customers

A section dealing with operational aspects, such as the need to engage new suppliers or move to new business premises

An overview of the company’s staff structure and details on key staff and their responsibilities and competencies

It is also sensible to include details outlining the business’s financial situation including accounts, a cashflow forecast and profit and loss forecasts.

A niche market refers to a focused set of people or businesses who are interested in purchasing a specific type of item. It’s important for an entrepreneur to find their niche: by offering specific products and services, as opposed to a wide variety, there is the opportunity to build a competitive advantage, save money and operate more productively.

How to Find a Niche

To find the best niche market, an entrepreneur should identify their own interests and the problems their business may be able to solve. It is also important to focus on individual groups rather than trying to reach everyone – finding the right customers is essential to promote profitability and build brand loyalty.

Successful entrepreneurs such as Rob Tolley (former London broker) know that when it comes to finding a niche, a level of experimentation may be required to assess what fits. Taking note of what competitors are doing can be a vital part of this.

Assessing the Niche’s Profitability

Once the would-be entrepreneur has identified a possible niche, it’s vital to ascertain its profitability before moving forward. Again, prospective competitors can offer some clues on this front. There are also online tools that can be used to figure out how others have monetized the niche.

Google Trends is a useful tool to help track trends, by allowing the user to see how many times a particular term has been searched for online. This is a good way to see if a trend is waxing, waning or staying stable, and allows the entrepreneur to assess market size and demand. Free keyword research tools also provide a detailed overview of each term searched for and help identify the best-selling products with the most online searches.

Test the Niche

The final part of identifying a niche is testing it out, and this is a vital part of the process – as understood by business founders such as Rob Tolley. A good way to test the market is to create a landing page for pre-sales of a product the entrepreneur is developing. Paid and organic advertising can be deployed to drive traffic to this page, and the volume of the pre-sales assessed.

A surety bond serves as a financial guarantee that the contractor will fulfil their contractual obligations, such completing the project on time, paying suppliers and subcontractors, and adhering to specifications. Surety bonds reassure project owners that they will be protected if a contractor fails to meet their obligations.

Surety bonds involve the obligee (project owner), principal (contractor) and the surety company.

The Functions of Surety Bonds

As well as the above protections, surety bonds can smooth the transition from construction to permanent financing by removing liens and reduce the risk of a contractor diverting project funds.

Insurance experts such as Rob Tolley know that surety bonds also provide an intermediary, in the form of the surety, to whom the project owner can air grievances and complaints. In some cases, they can even lower construction costs by facilitating the use of competitive bids.

How to Obtain a Surety Bond

To obtain a surety bond, the project owner must first assess the type of surety bond they need. There are different types of surety bonds, including contract bonds, court bonds, licence and permit bonds, and fidelity bonds. Next, surety bond providers should be researched to identify a reputable provider that specialises in issuing these types of bonds. Once this has been done, the project owner will need to prepare the documentation and information needed to apply for the bond – the exact requirements regarding this will vary depending on the type of surety bond being sought.

After submitting an application, the underwriting process will begin. During this stage the bond provider will assess the project owner’s creditworthiness, financial stability and any risks involved in issuing the security bond. If the application is approved, the bond will be issued and the obligee (project owner) will need to pay a premium, which is a percentage of the bond amount. Once payment is made, the surety bond provider will deliver the bond to either the obligee or appropriate party as necessary.

Is a Surety Bond a Type of Insurance?

While the insurance industry as a whole has generated pockets of innovation, pursuing innovation in a systematic way is something that has been undertaken by very few carriers. However, low interest rates, shifting customer expectations and new sources of competition have combined to put pressure on carriers to embed innovation into their operations.

Key Technologies for the Insurance Industry to Embrace

Cyber insurance is an example of technological innovation created in response to the increasing danger of external attacks on organisations’ digital information systems. Although it’s a relatively new market, it’s predicted to see an annual growth rate of more than 25% according to the 2022-2027 forecast from IndustryARC.

It’s also anticipated that the Internet of Things (IoT) market will see sustained growth worldwide. In terms of the insurance industry, this technology allows carriers to more accurately assess risk profiles associated with individual portfolios, which can ultimately improve the company’s profitability and productivity.

Directly linked to the IoT is the connected insurance model. As experts in the insurance industry such as Rob Tolley will know, this model creates a complete ecosystem that incorporates sensors, devices and IoT platforms to collect relevant data for monitoring consumer and user behaviour. This data can provide valuable insights by providing the knowledge needed by insurance companies to improve decision making. Furthermore, this model enhances customer empowerment, which could result in carriers developing a significant and sustainable digital presence in the market.

How Insurance Companies Can Enhance Innovation

For new innovation initiatives to be successful, it’s likely that new approaches will need to be developed. For example, disruptive new policies come with a host of risks, and the organisations developing them will find there is less clarity around these risks. As such, to manage the means by which an innovation process is delivered, organisations will need to develop specific pathways regarding product development.

Insurance companies should also create innovative value propositions designed to incorporate new approaches to distribution and customer engagement. Innovative value propositions tend to integrate insurance prevention and protection, distribution and marketing, and customer engagement, combining all of these elements to deliver differentiated experiences.

Keeping Things People-Centred