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5 Questions with Insurance Influencers: Marco Del Carlo

We are back on track with insurance influencer stories. We’re putting MGA CEOs and founders and consultancy experts in the hot seat. Today, we’re sharing an interview with Marco Del Carlo, CEO at Capacity Place, insurance and reinsurance program marketplace.

Marco believes that technology-based operating models are enabling insurance businesses to operate faster, smarter, and cheaper, to innovate and scale quicker. The adoption of technology ecosystems, APIs, and common data standards are bringing technologies from other industries into the insurance industry. Find out in more detail what he had to say below.

What are the top 3 trends in the insurance industry next year? 

  1. Demand for insurance in Covid-affected sectors is returning. As the world emerges from lockdown, more people are commuting back to work, travel is picking up and as a society we are going out a lot more to restaurants, sporting and entertainment venues, events, and galleries.
  2. Many (re)insurers are becoming more open to new business as their balance sheets strengthen. Coming off a year of record rate rises in most classes and declining loss reserves for Covid-19 BI coverages, many (re)insurers are now seeking sensible growth.
  3. There will be continued downward pressure on expensive commission structures and long distribution chains in the MGA and wholesale markets.

What are the main challenges the insurance industry will face next year?

Climate change is increasing the frequency and severity of natural catastrophe losses with accelerated growth in secondary perils such as wildfires, tornadoes, and severe convective storms.

Claims inflation is outpacing premium rate increases as a result of general inflation, cost increases in materials and skilled labour, rising litigation, and juries awarding larger settlements in casualty claims.

Ransomware attacks, enabled by weak cybersecurity and cryptocurrencies, are on the rise and show no signs of letting up.

The compliance overheads of running all insurance business continue to rise as increased demands for information and culture change are required through the entire distribution chain.

What is the biggest impact technology will have on the insurance industry?

The biggest impact that technology will have on the insurance industry is enabling insurance businesses to operate faster, smarter, and cheaper with better management information, and to innovate and scale quicker.

The adoption of technology ecosystems, APIs, and common data standards will bring technologies from other industries into insurance and enable capital market players and corporates to participate more in risk sharing.

Which business models will create the best revenue streams for insurers and MGAs?

The business models that create the best revenue streams are those where:

  • there is a large, addressable target market;
  • products provide excellent coverage to prospective insureds;
  • there are distribution channels;
  • the Insurer and MGA are working in partnership – sharing information without fear of misuse and collaborating for better and smarter ways of underwriting business.

What will be the main innovation in terms of product offerings?

There are a number of exciting innovations in insurance product offerings.

Parametric covers, where pre-specified loss payouts based on trigger events, are providing insureds with greater certainty of claims payment. Where the loss cost of an event can be reasonably estimated in advance, there are opportunities to create parametric versions of indemnity-based coverages.

Embedded and risk-managed insurances are incorporating insurance into non-insurance products, services and workflows – such as with threat response services incorporated into cyber coverages or purchasing extended warranty in e-commerce. From a customer’s perspective, insurance is integrated as part of the solution rather than a separate process or afterthought.

The introduction of usage-based, pay-as-you-go, and fractional insurance, where insureds are paying for just the coverage they need, is replacing annual covers.


Marco Del Carlo specialises in underwriting, structuring and placement of niche, non-life (re)insurance programmes. Marco founded Capacity Place, an insurance and reinsurance programme marketplace; MGA Union, a platform for specialist underwriting businesses; and XS Assure, an MGA, which underwrites professional liability business. Marco is a director of the MGAA where he also chairs the Lloyd’s Market Forum and participates on various committees, an advisor to Loyal VC, and a mentor at the Founder Institute.


Stay tuned for more insurance influencer stories and don’t forget to check out the recap of our interviews with top global insurtech experts: part 1 and part 2.