London’s personal accident insurance market has always been well known for the diverse range of people it insures, from sports stars to actors and musicians, when it comes to covering them for death, bodily injury and illness, but a more recent trend has been the demand for cover from new occupations such as social media influencers, podcasters and gig economy workers.
Influencers look to protect their interests
“New professions represent a small but rapidly growing segment of the personal accident insurance we underwrite,” says Henry Weston-Simons, Senior Underwriter in the Personal Accident team for Hiscox London Market. “In the last 12 months, for example, we have seen an increasing number of requests for quotes from social media influencers. These enquiries reflect the profession starting to mature as influencers become better managed and more aware of the need to protect their long-term financial interests. Travel influencers in particular are turning to London looking for personal accident cover given their frequent travel to riskier countries where security is an issue.”
London attracts
The London insurance market is a particularly attractive destination for personal accident insurance for these new professions, given its ability to cater for the unique requirements and risks of an influencer’s career. “Standard forms of insurance don't allow for the complex ways influencers earn income. Emerging professions such as influencers and podcasters have different business models which demand the bespoke approach that London provides,” says Henry.
Underwriting in a data desert
One of the key issues for underwriters in considering new risks is the lack of historical data. “The challenge from an underwriting perspective is in finding the right price for the risk given the lack of historical claims data for influencers and the fact that many have only been making meaningful income from their influencer role for six months before their insurance application,” explains Henry. It's this absence of data, however, that plays to London's strengths and its heritage as a market that underwrites risks other markets might not consider. "As an underwriter, it’s important to judge if the influencer will remain relevant and justify the sums insured offered over the next twelve months,” concludes Henry. “Finding that balance means an underwriter’s experience and judgement, key London insurance market skills, will continue to be core to underwriting personal accident risks into the future and long after social media influencers have been replaced by tomorrow’s emerging professions.”