Simon Glairy is a distinguished figure in the global insurance landscape, renowned for his expertise in navigating the intersection of traditional risk management and the evolving world of Insurtech. With a career dedicated to deciphering complex transactional liabilities and the nuances of credit risk, he has become a go-to advisor for firms looking to bridge the gap between regulatory requirements and market innovation. In this conversation, we explore the strategic shifts occurring within the UK market, focusing on how increased deal volumes, healthcare pressures, and sophisticated credit modeling are forcing a reevaluation of traditional underwriting and claims processes.
The discussion centers on the dramatic rise in Warranty and Indemnity notifications and the increasing reliance on specialist expertise to manage high-value financial statement breaches. We also examine the ripple effects of the current NHS crisis on the private healthcare insurance sector, specifically how rising waiting lists and new cosmetic regulations are reshaping liability. Finally, the interview touches upon the critical role of credit risk integration and the strategic acquisitions driving consultancy growth in the banking sector.
With Warranty and Indemnity claims notifications in EMEA jumping from 70 in 2024 to 119 in 2025, what does this surge tell us about the current state of deal-making and the underlying risks involved?
This spike in activity is a direct reflection of a market that is becoming both more litigious and more complex as deal volumes continue their steady climb. When you see a broker like Marsh placing $91.6 billion in transactional risk limits—a massive 34% increase over the previous year—it is clear that these products are no longer just for the largest cross-border deals, but are now standard across more than 3,800 policies ranging down to the lower mid-market. The fact that financial statement breaches account for 38% of total losses globally highlights a significant vulnerability in the due diligence process that underwriters must now account for. To manage these high-value claims effectively, firms like Markel are bringing in specialists with over a decade of experience and legal backgrounds to provide the clarity and consistency that brokers now demand. We are seeing a shift where the insurance product is moving from a deal-facilitation tool to a critical safety net that is being tested more frequently than ever before.
The private healthcare sector is seeing record numbers, with PMI-funded admissions hitting 670,000 in 2025. How are the pressures on the NHS and new regulatory regimes for cosmetic procedures changing the landscape for healthcare underwriters?
The reality is that the private sector is stepping in to fill a massive void, with NHS waiting lists reaching a staggering 7.3 million people by the end of 2025. This migration toward private care for specialties like orthopedics and gynecology has fundamentally changed the risk profile of the patients being treated, as the complexity of cases increases alongside the volume. While we saw a massive 14% growth in PMI-funded admissions back in 2022, the growth slowed to a more modest 0.8% in 2025, yet the diagnostic waiting list alone still stood at 1.92 million in March 2026. This environment requires a very specific type of underwriting expertise, which is why we see MGAs like Euna prioritizing hires with 25 years of experience to handle the London Market’s needs. Furthermore, the introduction of a new licensing regime for cosmetic procedures is a game-changer, as it brings a previously unregulated and high-risk sector into the fold of professional indemnity requirements, demanding fast and informed decision-making from specialized teams.
Broadstone has been aggressively expanding its credit risk practice through the acquisitions of Vestigo Partners and Rockstead. In your view, why is specialized expertise in IRB and model risk strategy becoming so vital for modern banking and credit advisory?
The banking landscape is under constant pressure to refine how capital is managed, and the integration of Internal Ratings-Based models is at the heart of that challenge. By bringing in leadership with a background in major building societies and national banking groups, firms are looking to navigate the treacherous waters of Pillar 2 requirements and regulatory assessments with greater precision. The complexity of these models requires a deep understanding of design, development, and validation to ensure that credit risk is not just measured but proactively managed. As the market consolidates through strategic acquisitions like those in 2024 and 2026, the goal is to provide a holistic view of model risk strategy that can withstand intense scrutiny. This specialization is essential because, in a volatile economy, the difference between a robust model and a flawed one can mean millions of dollars in capital efficiency or regulatory penalties.
What is your forecast for the transactional liability market as we look toward 2026?
I anticipate that the reliance on Warranty and Indemnity insurance will only deepen, with approximately 65% of senior dealmakers already planning to increase their use of these products in the coming year. As transactional risk becomes even more interconnected and complex, the focus will shift heavily toward the quality of the claims experience, as expertise in handling intricate international professional indemnity cases becomes a primary competitive advantage. We will likely see more specialized hires and a continued expansion of capacity, but underwriters will need to be increasingly vigilant about financial statement accuracy, given its leading role in recent losses. The market is maturing, and the winners will be those who can provide tailored solutions and swift, expert-led responses to the rising tide of notifications. Only by marrying data-driven risk assessment with seasoned legal and insurance expertise can the industry maintain the confidence of global dealmakers.
