Insurance People April 2015

insurancepeople issue 52 April 2015

Nick Cooper See page 7 Insurance People inside include:

Phil Bayles

Reg Brown

Malcolm Forbes-Wilson Elizabeth Holt

Allison Hughes

Alexander Burgess

Rachel Harris Mark Preston

Phil Hayes Kedric Rhodes

urance s n I e h T “ e with Magazin � ity Personal

surance “The In with ne Magazi ity” Personal

in association with

leader

insurancepeople

leader

www.insurancepeople.uk.com

Do short-term CEOs suit insurance? he Pru CEO departed last month after six years – a longterm sojourn by today’s standards, but still a significant contrast to the one-time ‘job for life’ insurance CEO.

T Editor and Publisher

Consultant Editor

Andrew Newman

Brian Susman

Commercial Director

Production Director

Jeni Hall

Adrian Susman

Late news

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3

Market talk

But does this theme suit insurance? Being intangible, and basically a ‘promise’, can the word of one person be fulfilled by a short-term successor in exactly the same spirit?

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D&O

The ‘has been known’ heading includes:-

Cover artwork: Carol Newman

Alexander Burgess, British Money

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Dramatic share price falls for shareholders at the first whiff of change uncertainty

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Staff move from a stable culture to extreme doubt

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Brokers discover long term relationships nurtured over many years destroyed overnight

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Customers know that inevitable cost economies usually mean poorer service for them

Design & Production

Adrian Susman adrian@insurancepeople.uk.com 07981 993974

In this issue 2

Tidjane Thiam’s ‘sign of the times’ quote sums it up. “The job of a CEO is not to stay as long as possible, but to leave a company in a better shape than the one you received.”

Editorial

Andrew Newman FCII, Dip.M andrewnewman@talk21.com 01892 730539

April 2015

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E-trading Allison Hughes, Ageas

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Who said insurance is boring?

The late Malcolm Forbes-Wilson

Not everyone can be a winner in the ‘live for today’ world of the short-term insurance CEO

memoir continues

Commercial Director

Jeni Hall jeni@insurancepeople.uk.com 07969 510172

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Reg Brown The Postcard Emporium

www.insurancepeople.uk.com

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Printers

Pensord Magazines & Periodicals Tram Road, Pontllanfraith, Blackwood NP12 2YA

Mark Preston, Cardinus

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insurancepeople PO Box 537 Tonbridge Kent TN12 9WG t 01562 862990 m 07981 993974 e adrian@insurancepeople.uk.com

Interview Phil Bayles, Aviva

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Phil Hayes –Get well soon!

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Rachel Harris describes an ultimate insurance ‘promise’ solution

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Public relations Elizabeth Holt, Holt PR

Also find us on:

ISSN 2043-9202

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News

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On the move

Insurance People is published monthly by Buttermere Wedge Publishing Limited.

While every attempt has been made to ensure that the information contained within this publication is accurate, the publisher accepts no liability for information published in error, or for views expressed. All rights for Insurance People magazine are reserved. Reproduction in whole or in part without prior permission from the publisher is strictly prohibited.

Risk management

Who’s going where?

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Allison Hughes says e-trading is the answer for small fleets

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Phil Bayles is married to insurance

On the Road OTR goes ‘Round the Corner’

APRIL 2015 insurancepeople 1

insurancepeople

Late News

in association with

Commercial Express on the road nderwriting agency Commercial Express has announced the dates for its first ever series of roadshows called ‘Commercial Express On the Road’. The CE team will be visiting six cities throughout April and May to update both existing and prospective agents on the company’s future plans and initiatives. ‘Commercial Express On the Road’ aims to build further relationships with its 1,300 agents throughout the country. It offers the opportunity for

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Duncan Pritchard

agents to meet face-to-face with a number of key personnel, including the managing director, business development managers, underwriting and claims

MGAA supports talent development he Managing General Agents' Association (MGAA) has launched a new initiative designed to recognise and develop young talent in the MGA sector.

The MGAA Learning and Development Initiative has also been designed to enhance the skills of future leaders in the MGA sector.

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Through a series of targeted learning programmes, the MGAA aims to contribute to the professional education and development of talent within its member companies, offering an environment to encourage new and innovative ideas through knowledge and understanding.

At the first programme

managers, plus a selection of the underwriting team.

The roadshows begin in Central London on 21 and 22 April, move to Manchester on 28 April, Birmingham on 29 April, on to Bristol on 7 May and conclude in Belfast on May 21.

Duncan Pritchard, managing director of Commercial Express says, “The intention of the roadshows is to highlight

For details email: efarrell@commercialexpress.co.uk

of the initiative, in partnership with the Lloyd's Global Development Centre, a total of 24 individuals under 35 years of age from the association's member organisations took part in a day-long programme developed to enable participants to better understand the Lloyd's insurance market.

Peter Staddon, managing director of the MGAA says, "The

MGAA 1st learning and development group with Peter Staddon far right 2 insurancepeople APRIL 2015

what Commercial Express is all about and to share our future plans in a relaxed informal atmosphere. “We have an extremely exciting initiative planned for 2015 that we will be unveiling during the roadshows and we are looking forward to meeting our agents face to face and finding out how we can help them grow their businesses.�

development and nurturing of talent plays an important part of the success of our sector. Supporting future leaders makes business sense, not just in terms of succession planning, but also in ensuring MGAs offer employees a clear progression path that enables them to reach their full potential. These factors are also key when it comes to attracting new talent to our growing sector."

The first MGAA UK Conference takes place at One America Square in London on 1st July 2015. MGAA managing director Peter Staddon (pictured left) recently reported that over the last 15 months, MGAA membership increased from 71 to 105. đ&#x;˜ł

market talk

Andrew Newman

Dumbing down a profession H

in association with:

Andrew Newman

in associatio n with:

Are we a p rofession o I r an indust ry? ow far can you dumb down a profession? Well, the TV s insuranc e a profess ion or an indus particularly try? That nu within the has been b broking fra exercised ternity. more than once before in the The Hamp se pages. An shire-based d it arises Wiser Acad again this month emy open on page 12 ed its doors in 20 in the article 12

by Cresce then has no and since ns George, dir t only traine ector of d many staff learning & of parent organisati com onal d

ad agencies seem to be making a first rate job of it, according to reader feedback.

How many of us wince at the banality of some of today’s TV insurance ads? And I don’t believe it’s an ‘age’ thing because I’ve heard graduates and apprentices just coming into our business voicing similar dismay.

A reader writes from Spain – it’s Kedric Rhodes, the former MD of TEn Insurance Services; non-executive director at Broker Direct; chairman of Resolution, among many other appointments.

Having ‘retired’, and receiving his copy of IP at his villa in Spain in between business trips back home, Kedric is well known for his informed (and sometimes downright angry) views on market issues. He abhors events that tend to push our profession - or industry, as you prefer - down the drain:-

A profession or industry? : II A reader preferring anonymity (perhaps wisely, given his/her status) writes:

“

Isn’t it time the CII wheeled out its ‘bringing the profession into disrepute’ rule? Even if we do regard ourselves as a profession, it’s probably far too late to even attempt to convince the public otherwise – thanks to the havoc wreaked by the TV ad agencies and their mega-buck paymasters.

They’ve completely dumbed down our image – the latest outrage being a City slicker strutting his stuff and wiggling his backside in high heels and hot pants.

Will things get any worse than this? Yes, of course they will. We ain’t seen nuthin’ yet!

The irony of course, is that the CII can do nothing, even if it wanted to. The perpetrators in the ad agencies are not CII members. They are not even insurance people. As for the ABI stepping in… well, that’s just a joke, isn’t it.

”

H’m… this ‘name & address supplied’ reader might find him/herself hauled up to Aldermanbury (and Gresham Street) under the same ‘disrepute’ charge. IP will keep mum (Ed.)

this move . “Wiser Academy was born from the ideolo gy to lead change in helping cre ate qualified pr ofe within insura ssionals nce. We als underst o d

uniquely qu alified to understan d the chall enge facing brok ers, and thu si well place d to cater for their need s. All cours es h

A profession or industry?

Dear Editor, Again, thanks for the lat est edition of Insurance People just rec eived at this Spanish outpost.

I joined the insurance industry/profession in 1961 and have been ass ailed with discussions of the ‘profe ssion or industry?’ argument ever since.

I passed my ACII way bac k in 1971 (OK - I was a late developer!) and desperately wanted to be a 'professi onal'. However, sections of the market have eroded this status, and I feel we sho uld all move on now, and accept that we are an 'industry'.

Anyone represented in the public eye by a bulldog, a meerkat, et al cannot be taken seriously as part of a 'profession'.

But does it matter? Tak e the legal profession. They used to be called ‘ambulance chasers’ but have since degraded themselves even further by moving on to become 'claims creators' .

Yet, they are still reg arded as a 'profession'. But with what gain? I regard them with total contempt, but does anyone else?

And what’s wrong in bei ng an industry anyway? We are here to make money, but let’s do it with honour, decenc y, and feeling.

Let’s look after the vul nerable and the unfortunate.

And then – who knows the public might decide that we deserve the accolade of being a 'profession'. But we’ ll have to work hard at it!

As always, thank you for a super magazine!

Kedric Rhodes APRIL 2015 insurancepeople 3

market talk Bollington appoint three Rebrand for Brightside

Bollington motor trade appointments HQ. When founder Tony Woolley first showed it to me in 2001 it had yet to be occupied, having just been sympathetically renovated and restored to incorporate a modern call centre and comfortable office space.

t was 1976 when I first discovered Bollington village near Macclesfield, situated amongst the Cheshire countryside,. It was the home of Bollington Insurance - still there today as an independent broker, despite a short period of ownership by insurer Groupama.

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My own career had suddenly sent me out on the road, developing business throughout the whole country, free to pick and choose, rather than having to squeeze milk from a tired patch already developed by someone else.

And Bollington, seemingly in the middle of nowhere, was where I found Tony Woolley, who had founded the business just three years earlier as a predominantly personal lines operation.

A staggering 25 years later Tony (now nearly retired) invited me back to visit the operation to find that SME customers were now targeted, particularly within

Pauline Brookes 4 insurancepeople APRIL 2015

Gary Cotterell

the motor trade sector, and the Bollington net had spread nationwide.

So Bollington Insurance’s recent appointment of the pictured trio to their motor trade team, struck a chord.

Pauline Brookes joins as commercial development manager to head the motor trade combined sales team.

She brings over 16 years’ motor trade insurance experience and arrives from E R Shaw, where she acted as new business & servicing director for over a decade.

Former FM Green account managers Gary Cotterell and Adrian Bridges rejoin Bollington after a six-year hiatus via Ernest R Shaw.

Gary has worked in insurance since 1980, with experience as a commercial development underwriter at General Accident amongst his roles before his previous stint at Bollington, who took over former employer FM Green in 2006.

And thanks to Google, it was good to relook at the magnificent Adlington House, still occupied as Bollington’s

Previously the local Conservative Club, this impressive (and I believe now listed) building was resplendent in the local stone, and it was easy to imagine the ghostly click of balls on green baize in the old snooker room downstairs, and dance music in the converted ballroom on the upper storey.

Adrian Bridges

I'd seen some impressive insurance HQ piles in my time - conversions from churches, chapels, converted mills and warehouses - but this turned out to be a real gem.

Kedric Rhodes at his Spanish outpost

Kedric Rhodes’ takes time out in the Spanish winter sunshine after posting his letter to the Editor – see page 3

Brightside rebrands he new management team at insurance broker Brightside has rebranded with a new identity to signify the intention to build its own insurance portfolio rather than just being an umbrella for its other brands.

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CEO Andrew Wallin highlights Brightside’s “immense untapped

potential” and the launch of Brightside car insurance in July 2015. “We want to plant a flag in the ground and say that we will be different, we will deliver what the customer wants and needs.”

Phil Hayes is on the mend!

in association with:

Insurance in the firing line again?

Get well soon! ll best wishes for an ultimate recovery go out to Phil Hayes of insurance solutions provider 2Direct. Just after leaving home - and not far from his door - Phil skidded in unexpected flood water in a sudden torrential rainstorm. He suffered serious injuries and was airlifted to hospital – well, he would have been airlifted, but the weather prevented his stretcher reaching the helicopter across a muddy field.

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Those who know the effervescent Phil (and frankly, I’m not aware of too many who don’t!) are aware of his resilience, and while otherwise temporarily incapacitated he has been talking (and joking) with family, friends, and colleagues as he

starts his road to recovery.

When I spoke with him on the telephone he asked for this message to be conveyed so that clients and industry colleagues can be made aware.

Well-known and liked in the market, Phil’s progress and his positive attitude have been noted by a succession of bedside visitors, with small improvements in his mobility being achieved every day.

We spoke on 12th March. In fact Phil returned my call, which indicates the progress he is already making, having been practically immobile at the beginning of that week.

As Phil told me in a very clear voice (in fact you would never know he’s been in such an accident), “I’m lying here in this hospital bed. I don’t want to be here for the

The pension ‘big bang’ T

he new pension rules could prove to be the biggest insurance upheaval of the decade. In recent conversation with pensions industry expert Tony Tarquini, European insurance director at Pegasystems, he spoke on the subject of the FCA setting out its retirement risks warning rules, which he believes will place the insurance industry right in the firing line.

Tony Tarquini

“

The industry needs to be cautious about how it engages with customers on the new rules. Pensions Freedom Day is going to stress test current customer

rest of my life (which I’m told is what sometimes happens to people with my injuries). I don’t want to be bedridden for the rest of my life, or even in rehab for three or four years. I’m determined it’s going to be months, not years.

“The surgeon came in this morning, and said it was remarkable that my right arm is responding already. I’m a ‘leftie’, but most of the damage to my spinal cord was on that side, and the right arm is a lot stronger.

“I’m not allowed to sit up more than 30 degrees because of the pressure on the spine, so I’ll be bedbound for probably another three or four weeks.

Physiotherapy is helping, and I’m working b****y hard on that day and night. I’m already feeling like I’m on the

Phil Hayes

mend. I can’t change the past, but I can mould the future. With grit and determination I will be back, strong as ever. And I’m so grateful to everyone who has stepped up to the plate with help and assistance. It’s been tremendous and it has really blown my mind.”

A very scary story, yet very uplifting.

Hang in there, Phil!

engagement capabilities. There’s a great opportunity to guide customers through the options, but the risks are high that we’re sowing the seeds to put industry into a future firing line of mis-selling products and services.

Notwithstanding whether the free advisory services can cope, staff cannot be left to muddle through and do the best they can when customers ask about their annuities. The FCA is helping with its retirement risks warning, but the customer engagement required needs to be so much more if the big bang of new legislation doesn’t blow up in everyone’s’ faces.

As some are already recognising, there’s a real requirement here for guided processes. Plus a deeper understanding of the customer’s context, taking account of their unique situation and recommending products and courses of action correctly and with the correct risk warnings.

Anything less and customers, insurers and politicians will rue the legacy of Pensions Freedom Day.

”

APRIL 2015 insurancepeople 5

market talk

Award for Goebbels How to get started with apprenticeships

The work & pleasure bonus roking or underwriting for a living has its plus factors, but there have always been insurance people who score a doubleblessing when “the subject matter of the insurance” – to quote the CII text book – proves to be their hobby.

Classic car enthusiasts and sport and celebrity specialists are a good example.

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Another category that comes to light is the global touring, festival, and live entertainment industries, and that’s where Martin Goebbels, UK & European director at bespoke insurance and risk management advisors Robertson Taylor, has scored a hat-trick. His triple-blessing includes an award, having recently been named ‘Most Professional Professional’ in the professional services category at this year’s International Live Music Conference (ILMC) Arthur Awards.

Martin Goebbels

And that’s obviously no fluke win, since this is Martin’s third triumph in this category at these awards since their inception, recognising professionals involved in the global touring, festival and live entertainment industries.

Robertson Taylor provide customised advice for top grossing acts, tours, sporting events, theatrical productions, and all related tour support companies, with offices in Atlanta, London, Los Angeles, Nashville, and New York.

“Doing what you love to do” ow many company cars had to have a tow-bar fitted?

I once enjoyed a stint of the extra-curricular employment mentioned in the previous item - “doing what you love to do”. I wouldn’t say I was an avid motor sport enthusiast, but I took the opportunity that came my way during the late 1980s to oversee an insurance company motor sport sponsorship.

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I wouldn’t have earned any CII continuous professional development (CPD) points for towing a corporate caravan around the country and putting up awnings and banners, but the networking opportunities proved priceless.

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New CII apprenticeship guide T he existing ‘frameworks’ relating to the hiring of apprentices are to be replaced by new employer-driven standards that recognise employers’ needs, according to Daniel Pedley, public affairs manager at the Chartered Insurance Institute.

The CII launched its definitive guide to apprentice hiring during National Apprenticeship Week (9 – 13 March 2015). The CII’s Guide to Getting Started is a stepby-step manual to walk employers through the apprenticeship programme process, and obtaining government funding among other things.

Daniel Pedley believes that one of the biggest challenges facing the insurance sector is a talent shortfall.

“Apprenticeships are a key component of the insurance profession's drive to attract new talent. In particular those who previously might not have considered insurance as a career.

However, far too often employers worry that apprenticeships are too complicated. This guide

dispels the myth that implementing an apprenticeship programme is complex and overly bureaucratic.

“The industry needs to ensure we have a strong and diverse flow of talent that will safeguard the UK’s position as a global insurance leader. The best way to secure our rich heritage and foster the innovation necessitated by the fast paced world we operate in, is to draw from the widest and most diverse talent pool. Apprenticeships play a key role in achieving this aim."

The CII’s 2014 Skills Survey showed that more employers are aware of insurance apprenticeships, and there is also an increased willingness to take on an apprentice.

Daniel Pedley

in association with:

A CBE for Nick Cooper

Nicholas Cooper CBE Recent months have proved an eventful time for Nick Cooper, founder of Sterling Insurance Group and its former chairman. A trip to Buckingham Palace took place in March to receive his CBE awarded in the New Year Honours List, and a little before that he completed the sale of Sterling to French insurer Covéa is New Year Honour was received for services to the arts and higher education. “Out of the blue, in December 2014, I received a letter saying they would like to give me an honour for my services to higher education - with RADA - and the arts, namely my support with The Old Vic,” Nick told me when we spoke.

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I was aware that Nick enjoyed a close involvement with the world of theatre. He hosted many annual charity lunches in London for the Royal Academy of Dramatic Art (RADA) - some of which my wife Carol and I were fortunate enough to attend.

He sat on the RADA Council for ten years, and in 2008 he became chairman of The Old Vic for five years.

I asked Nick how the RADA involvement came about.

“My daughter went to RADA,” he explains. “And its president, Lord Attenborough, lived quite near me. He asked if I would sort out some of their financial affairs, and the upshot was that I joined the council of RADA and we

started a business called RADA in Business.

“And that organisation expanded into higher education, with interpersonal skills, two-day courses, and public speaking. It wasn’t long before we were doing a lot of business with commercial companies. There was also a cruise ship deal with Cunard.

“And that whole enterprise is now generating income of over half a million pounds a year, all of which goes back into the charity.”

As a theatre-goer myself, it’s always been fascinating to watch new actors honing their craft over the years.

Nick agrees. “I’ve seen a lot of unknown actors coming to the fore. RADA is just an unbelievable establishment of quality. It stands for excellence, and is a very interesting place.”

Qualities that I suggested to Nick are not a million miles from those he has created within Sterling Insurance?

“Yes, I believe Sterling has proved to be a centre of excellence, both in business and the way in which we treat our customers. We

Nick Cooper Although his father was an insurance broker, Nick became a chartered accountant in 1974, but close links to insurance were never far away. He found himself working as a panel auditor in the London insurance market, and became involved with M&A work.

He joined an American company, Beneficial Corporation and was involved in the management of their insurance companies. A management buyout took place in 1987 and the Consolidated Insurance Group came into being, to be sold later to General Electric Corporation of America in 1994.

That was when Nick founded Sterling Insurance Group, later buying Sterling Life and Albion Insurance. Sterling Hamilton Wright was acquired in 1996 as a niche insurance broking company.

“At Consolidated, I started with just a secretary, as I did with Sterling, and both groups subsequently grew to around 500 people.

“The right time for me to sell Sterling came about last year, and the French Covéa insurance group proved extremely nice people to deal with. The respective portfolios matched very well, so that Covéa now possess a strong motor, contents & buildings, commercial, and life presence. I found them a remarkable company to do business with.”

don’t mess people about on claims, and we have an enviable reputation in the fields where we operate.

We’re very selective of course, particularly in the business that we write. We do treat our customers well, and we strive to do the best we can for our brokers.”

So, to the future. What is Nick going to do next?

“What am I going to do?

Have a rest,” says Nick. “For a short while anyway.

There’s some insurance opportunities opening up, and I’ll just take my time and have a look. There’s no rush.”

APRIL 2015 insurancepeople 7

market talk Andeva find the ‘missing link’

in association with:

The ultimate ‘on the road’ solution?

W hat’s the last remaining weak link in the insurance claim promise?

What’s the ultimate solution to the question first posed way back in the 1980s - what do our customers really need us to provide - as opposed to our provision of what we think they need?

Traditionally it was indemnity, but that fulfilment could take days, even months. But what, say, a private car customer really wants is instant roadside help at the point of incident – when unexpected stress and inconvenience suddenly strike.

Those thoughts came to mind with the news of a motor-related service that claims to do exactly that.

Andeva Underwriting Agency provides a specialist policy for motorists against the mistake of mis-fuelling.

Trading as Fuel Protect, Andeva worked closely with Auto Fuel Fix to create 24/7 protection… at the roadside (my italics, not theirs).

I spoke with Rachel Harris, MD at Andeva Underwriting Agency.

AN: Did Andeva spot a gap in the current market in launching this product?

RH: Yes. If you’re lucky, your insurance company will treat a mis-fuelling incident as accidental damage and pay for the repairs. However, many policies contain exclusions for mis-fuelling and third party policies are unlikely to provide any cover. For this reason Andeva identified a need for a low-cost dedicated policy that provides a meaningful benefit for motorists.

AN: What’s the history of mis-fuelling and insurance?

I recall it was never mentioned in motor policies of the past since it wasn’t ‘accidental damage’.

To what extent has the market re-addressed this omission?

RH: Around 30% of UK insurers will not pay for a mis-fuelling claim, according to research by BIBA. Some insurers will not specifically cover mis-fuelling in their policies, but will cover it

under ‘accidental damage’ if the engine fails. However, if you broke down as a result, they would not provide roadside rescue. There are only a small number of insurers who specifically cover mis-fuelling in their policies. In either case a roadside repair service, 24/7, provides a tangible benefit over the alternatives.

AN: Is the Andeva ‘on the road’ repair unique?

RH:: No – Green Flag, AA and RAC all offer the service.

However insurers who are prepared to cover misfuelling under ‘accidental damage’ - and those who have specific cover - will usually recover the vehicle to an approved garage where the repair will take place. The significant benefits of Fuel Protect are 24/7 availability, and an average repair time of 30 minutes once on scene.

AN: I’ll pose the crunch question – does it work?

RH: There’s a 95% roadside success ratio. If a repair is unsuccessful, or the breakdown occurs in a location that cannot be reached by a mobile fuel drain unit, a 30 mile recovery is included within the cover.

Stranded motorists can usually be reached in no more than 90 minutes once the call out is received. The

8 insurancepeople APRIL 2015

Rachel Harris

mobile engineer will arrive on scene in a specifically equipped van and is able to remove the contaminated fuel, flush the fuel lines and filter, and deal with the disposal of the waste product. The service takes on average 30 minutes to carry out after which the motorist is able to carry on their journey with no further action required.

AN: How big is this market?

RH: The AA estimate that 150,000 vehicles are misfuelled every year on UK roads. A garage repair can vary from £200 for an independent carrying out a basic drain, to £10,000 for a luxury brand main dealer replacing major components.

AN: And what does the policy cost the motorist?

RH: The annual retail cost of the policy is £19.99, which allows up to two claims, and is subject to a £50 excess.

directors & officers

Alexander Burgess DIRECTOR BRITISH MONEY

Are brokers underselling D&O?

Industry needs to deliver more on D&O Estimates suggest less than 30% of UK businesses purchase D&O cover. Alexander Burgess believes brokers could do more to close this gap n his 1998 book, Exploring the global landscapes of litigation, Christian Wollschlager argues the US is not - as perceived - the most litigious country in the world.

Germany has this ‘honour’ with 123 cases bought per 1,000 population.

The UK ranks sixth at 64.

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Given we appear to be one of the ten most litigious countries in the world, why do so few businesses protect themselves against such litigation?

In order to understand why businesses leave themselves exposed to such liabilities (which in my view, is linked to brokers underselling the cover) I spent time with Adam Wickens, Axa’s national management liability sales and development manager.

He, like all insurers offering D & O, believes the take-up of this policy is nowhere near the levels it should be for the cover it provides - essentially all the legal and regulatory exposures to investigations and legal actions against business owners, directors, and employees.

All businesses, regardless of their profession or size, are subject to regulatory scrutiny. They have responsibilities to local authorities, their trade bodies, stakeholders, employees and customers. o why is there such little appetite for this cover? Many simply don’t see the need for it. Adam suggests

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over 80% of litigation against companies in the D&O world involve employment law. This is far too high a stat for businesses to think ‘it’ll never happen to them’.

Last year over 100,000 employment tribunals awarded average total claims costs of £20,000. For a small business, this amount could be crippling. In many cases, investigations cost thousands before they even get to court or a tribunal. erhaps firms think it’s easier to ‘take a hit’ on a claim than to pay a premium. But haven’t premiums come down in the past few years? Adam confirms yes, and reminds that commercial pricing remains flat. Axa’s premiums start at under £100 and full cover for a business with less than £1m turnover can be secured for around £400.

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This gap in cover is more likely to be due to a general malaise among brokers who find it difficult to understand and therefore sell. Why push a policy which - by insurers’ own admissions - has in the past used old-style US wordings which were complicated and restrictive (confusing broker and buyer) and is asking a business to insure against something it cannot see? We may appreciate it’s the unknown that puts you out of business, but try telling that to a business owner.

A prime contender for its failure to sell is people’s perceptions. When

D&O first came to the UK from the US 30-35 years ago, it was considered only appropriate for multi-nationals, the big PLCs, and FTSE 100 firms. There was a lack of understanding on how it can benefit all businesses. In order to change business perceptions insurers should have worked harder at changing brokers’ perceptions.

Because it’s a relatively new line, insurers have had to learn how to underwrite it, and brokers have to learn how to sell it. With brokers under increasing levels of regulatory scrutiny, few will want to sell a product where failings in the process could be shown. In order to resolve this, underwriters need to take more responsibility for training. nsurers must change policy wordings to embrace a wider range of risks. Some policies only cover certain regulatory exposures, for example the Health & Safety Executive and Inland Revenue, but not the Environment Agency. Axa adopts a greater inclusion policy, taking into account Government legislative changes, such as those around cold calling and food standards.

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Better broker training, greater policy transparency (keeping an eye on emerging risks), and improved insurer support mechanisms appear to be the key to increasing sales.

Let’s hope the industry can deliver more.

APRIL 2015 insurancepeople 9

Allison Hughes

e-trading

BUSINESS DEVELOPMENT MANAGER FOR COMMERCIAL E-TRADING AT AGEAS

E-trading in small fleet

Digital trading puts SME fleet cover in pole position Ageas recently surveyed 1,000 SMEs, half of whom are planning to expand their fleet.

Allison Hughes explains the thinking behind the enhancement of the Ageas Optima Small Fleet in response to market demands n 2014 the number of private sector businesses exceeded five million for the first time. And a whopping 96% are micro-businesses – employing 0-9 people (VSMEs).

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So what do most of these firms have in common? They all need to be mobile to a lesser or greater degree depending on the nature of their business. And at the VSME end of the business scale, many will use their own private cars, or light commercial vehicles, or may even run a small fleet.

So it follows that demand for small fleet cover is on the rise. In fact, if you need a sure-fire sign of improved business confidence, look at the plans small businesses have for their fleets. It’s a market ripe for development.

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Servicing small fleets

needs to be slick

”

However, the challenge for brokers is that typical premiums for a VSME policy will be small, meaning margins will be slim, so servicing this business needs to be slick for the customer, and time-efficient for the broker.

As such, small fleet lends itself perfectly to digital trading, allowing brokers to service these clients cost 10 insurancepeople APRIL 2015

effectively, while still providing a high level of service and the personal touch their customers require.

Insurers are meeting this demand with digital trading solutions on an increasing range of products designed for the SME and VSME market, including small fleet cover.

Adopting digital trading While the small fleet market is just one area of growth in SME digital trading, it’s a great example of how effectively digital trading can work.

Fundamentally, digital trading enables brokers to provide timely and accurate quotations, secure cover easily and issue documentation – all quickly and seamlessly.

By fulfilling client needs on the spot, brokers can capitalise on immediate opportunities and focus on building one-to-one relationships. Of course, as the functionality develops, service will become even simpler with the broker simply quoting and binding cover on a tablet or similar before leaving their client’s premises.

Remember that digital trading is not a replacement for human expertise it’s designed to complement it. This is crucial to ensure the level of cover is adequate and to avoid the potential for unde-rinsurance, which

could have a serious impact on the survival of a small business.

The broker’s expertise is invaluable in ensuring the customer is offered the right policy for their needs. The good news on the fleet front is that brokers may be pushing against an open door.

In the Ageas SME survey we found that for 37% of respondents the top priority for selecting fleet cover was the benefits offered. 34% said it was price, and 18% said that excess levels were their chief consideration.

As digital trading continues to develop, insurers will use more data to refine products and offerings. We already have a team dedicated to the review and refinement of our digital solutions to help with the risk selection process, improve pricing and streamline the whole process.

Finally, brokers need to know that if they need it, they can speak to an underwriter at the end of the phone for those cases that need some intervention to arrive at the best solution for the customer.

Ultimately digital trading tools allow brokers to put business on risk in a cost-effective, timely and streamlined way, whilst allowing them to do what they do best – deliver a personal service and expert advice to a growing audience of SME customers.

Who says insurance is boring?

Part Eight

The late Malcolm Forbes-Wilson penned his remarkable insurance biography just before he passed away after a long illness in April 2014. Lloyd's has been hit with a fair number of scandals over the years. This month he highlights the 1980s Lloyd's LMX Spiral s a facultative broker, only placing individual risks, the 1980s London Market excess of loss spiral didn’t affect me directly. But it did result in the failure of many Lloyd’s syndicates, so lowering capacity to place risks. To explain the problem I can do no better than quote from an article written in 2009

by Michael Wade for the Daily Telegraph.

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In Lloyd's there was not enough business to underwrite to satisfy the demand created by the increasing number of Lloyd’s members. It became necessary to invent new ways of trading, and specialist syndicates developed which reinsured other syndicates. So long as there were no underlying losses, these new syndicates made good profits, and they attracted more capital. The market grew yet further.

However, in reality the market wasn’t growing - it was simply inventing ways of recycling excess capital.

When underlying losses did develop, they were funnelled into the new reinsurance syndicates – and that became known as the LMX Spiral.

The consequence of the excess capital was that underlying risks could be underpriced, as they were being passed on to the new specialist reinsurance syndicates. In turn, they could not measure the correct pricing, as they appeared to be hugely profitable.

Malcolm Forbes-Wilson reinsurance syndicates, and the losses came back to them in another cycle of contracts.

”

But Lloyd’s survived… and learnt how to thrive on better managed risk and a lower cost base. And so the drive for more business continued.

Malcolm Forbes-Wilson (1946-2014) written in January 2014

So, when the underlying losses did occur, there was systemic collapse of the Lloyd’s market - not just because the losses went round in an impossibly complicated spiral - but because many members of Lloyd’s were also members of other

To be continued Next time: Malcolm qualifies for the ‘Three Rooms’ club

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APRIL 2015 insurancepeople 11

Anyone for tennis?

his month’s postcard from the Reg Brown collection was once a familiar sight in the insurance world before emails came along. At a time when there were many more insurance firms in existence than there are today, towns and cities throughout the UK buzzed with sporting leagues. They were an ideal method to find out about the world outside your own particular organisation.

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This example is addressed to a Mr F H Jenkins, and he’s the one we know the least about because there’s no company name.

It’s sent to him by a J H Christmas of London EC4 telling him to arrange to play E J Harvey who works for Union Assurance Society in Royal Exchange Buildings. Mr Christmas is the voluntary coordinator of the Insurance Offices’ Lawn Tennis Association and he wants this round 2 match in the Men’s Single Championship completed before 3rd June 1937!

That would explain the need for postcard communication.

Christmas doesn’t even have a phone! It printed on the card – “No Communication with me by telephone”.

There’s no stamp on the card, and the reason for that is most probably that it was never delivered by the GPO. With so many business houses rubbing shoulders with each other within easy distance, it was feasible for each company to employ their own ‘messengers’ who delivered by hand. l

So what else can this card tell us? 1937 was a long time ago. What was happening in the world that day?

On 3rd June 1937 the main sporting headline was that American baseball catcher Josh Gibson of the Negro League’s Homestead Grays (this in the days of US segregation) hit a ball two feet from 12 insurancepeople APRIL 2015

the top of the façade of Yankee Stadium - 580 feet from the home plate. Gibson was voted into the Baseball Hall of Fame in 1972 by the Committee on Negro Baseball Leagues many years after he died.

Meanwhile closer to home on the 3rd June 1937 the Duke of Windsor –formerly King Edward VIII of Great Britain and Northern Ireland - married Wallis Warfield in France, the American divorcee for whom he abdicated the British throne in December 1936. l

Tennis player Mr Jenkins now breaks up the above reverie. A pencilled note on the postcard tells us that by the time the 3rd June match deadline was up, he had already arranged the game with Mr Harvey on 21st May 1937 and beaten him four days later 6-4, 6-1!

risk management

Mark Preston ASSOCIATE DIRECTOR OF TECHNICAL & MANAGED SERVICES CARDINUS RISK MANAGEMENT

CDM regulations changes – are clients prepared?

Mark Preston says new construction regulations will impose extra care on brokers to fully understand their clients’ construction activity he changes to the Construction (Design & Management) Regulations - and forthcoming enactment of CDM 2015 this year - will bring many of the smaller operational and maintenance-type projects within its scope for the first time. And place new obligations on firms throughout the UK.

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The scope of what constitutes ‘construction work’ has also been increased, and now clearly includes facilities management works. It will be incumbent on those who procure such ‘works’ to be familiar with their obligations.

prepares a Construction Phase Plan. This document sets out how the work will be managed safely. On completion, the client will be provided with a Health and Safety Plan, giving safety information on managing the work.

These responsibilities impose additional work on both designers and contractors who will, no doubt, add the costs on and increase tender prices. For a small project under the current 30-day threshold, this could add 10%20% to a project’s cost.

So it falls to brokers to ensure they fully understand exactly what their clients do!

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ith the planned changes expected to come into force in April 2015, CDM 2015 makes the client – namely, an organisation or individual for whom a construction project is carried out – accountable for the impact of their decisions on, and their approach to health, safety and welfare on the project.

So, it is evident that property owners carrying out maintenance work on their properties will face additional costs from designers and contractors for the added work that they now have to undertake, as well as new compliance risks as a result of the introduction of new duties and the strict liabilities for the performance of these duty-holders.

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Crucially, it introduces strict liability on the client in a number of areas – in particular, for the performance of their appointed duty-holders. Strict liability is a legal term that relates to the ‘ensure’ obligations set out in the regulations.

As well as happy lawyers expecting more work, this could also lead to clients being investigated by HSE where ‘Fee for Intervention’ is now a reality.

“

New strict liabilities on clients

”

A further substantial change - which will particularly affect facilities managers undertaking ongoing projects and works within their estates - is the new requirement relating to projects involving more than one contractor.

A principal designer (architect) and principal contractor must now be appointed by the client, and the client must ensure – a new strict liability – that the principal contractor

New obligations for UK firms

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These risks will need to be managed by client organisations, in the same way as other business risks, including the organisation’s board. This will entail a review and revision of the organisation’s management procedures, including; works and consultant procurement, operational management and supervision, health and safety risk management, and internal assurance and audit processes.

Now it becomes crucial that client organisations – and their facilities managers, in particular – understand completely the implications to their businesses of the changes.

Whilst there is debate in the construction sector on whether these changes will result in safer workplaces and projects, the fact remains that there is a greater duty on the client, and as an insurance profession we need to encourage safer behaviours to reduce risk and the costs associated with these risks.

APRIL 2015 insurancepeople 13

In association with:

We now w pro The great majority of the luminaries in today’s insurance world will tell you that insurance was NEVER on their radar when seeking out that first door of opportunity towards their subsequent insurance career path.

But once on board, they not only survived the ordeal, but thrived on the opportunities.

Result: A marriage for life. Wedded bliss. For better or worse.

In association with Markerstudy Group, Insurance People presents the second in a series of interviews featuring some of the insurance people happy to have pledged their troth to this industry

Phil Bayles Chief Sales & Marketing Officer, Aviva Aviva’s commercial business team get out ‘on the road’, and after the difficulties of 2013, there’s a revived hunger to win and retain business

AN: Can we talk first about the Aviva transformation programme, which of course inevitably drags in the upheavals of 2013 involving staffing and top executive changes.

Presumably, in spite of the difficulties, it wasn’t just a case of “business as usual” for the core of Aviva long servers, some going back to Norwich Union times. Those people were actually transforming the business while all that was going on?

PB: That’s true. We have in fact been on a three year programme to transform our commercial business and that meant changes had to happen. Some of those changes were very painful, but had to be carried out for the good of the business. For instance, Aviva reduced the size of its branch network from 30 to 17 offices, and 14 insurancepeople APRIL 2015

we lost some people - always an upsetting experience.

labours have now come through for us very positively.

But what we have seen happen since then is a resurgence in the business.

Service levels to our brokers have improved, and have earned accolades in the form of industry awards and impressive survey results.

Looking back, it’s inevitable that there are occasionally going to be difficult times, like Aviva experienced in 2013.

People leaving, the closure of branches, having to lay people off etc. Not happy times. But... despite the situation, everyone knuckled down to the task of transformation, and here we are 18 months later - in a really strong position.

Our financial performance is market leading with our combined operating ratio below 95% for our UK general business, and the commercial business result was even better than that.

While our transformation activity is not entirely complete - we still have the delivery of our new underwriting and claims system to be implemented - the fruits of our

Our brokers are very happy, as proven by the awards and survey results. Aviva now has some really healthy propositions out there in the market. Our mid-market new products - Aviva Premier - have been received exceptionally well and we were the first large company to launch such specialist products.

nounce you u...

AN: And I understand you are now encouraging your teams to get out from behind the desks and hit the road?

PB: Yes, very deliberately so. If you are in a people-based business like ours, and in a branch in a local area, then you need to utilise the fact that you are local to that broker and client by getting out and getting to know them. If you’re going to remain at the desk, and rely on the telephone, then you may just as well be in Timbuktu.

We have emphasised the value to our staff to spend more time with brokers and their clients and understand the risks that they are writing. They do a better job, and they win more business when they do that. It’s a kind of virtuous circle.

AN: Has the closure of some branch offices impeded your progress at all?

PB: No, not at all. When we reduced our branch numbers, we didn’t desert the localities. The closures were more about reducing the bricks and mortar. We still trade in those centres. For instance, although we closed our Reading branch, we still have underwriters there. And the same with Brighton. They work from home, and that hasn’t been a problem. You can have a market presence without having an office building. And you don’t need to be stuck in an office to do your job – with today’s communications you can do everything from your car, from a coffee shop, face-to-face etc.

AN: How have brokers reacted to this changed way of working?

PB: Well with Aviva, they’ve actually been used to it for a long time. The main things brokers want in terms of an insurer’s performance are good service levels; an appetite to win and retain business; and a sound

financial position. Questions asked of my team are:Are you responding quickly? Are you talking about renewals in time? Are you getting back quickly on all other queries?... We’re doing that.

Is there a hunger to do business together? An appetite to trade, with plenty of scope and on-the-spot flexibility?... We have that too.

If we weren’t achieving those aims, we wouldn’t have the positive feedback we’re receiving from brokers, and via the various surveys and awards. So we’re obviously doing something right.

AN: You have described the first notification of claim as the “chance to shine!” - the trigger for the claim promise to be fulfilled. And since last year Aviva has tackled the other, darker side of modern claims handling with its Road to Reform – Tackling the UK’s compensation culture initiative. What’s the thinking there?

PB: Road to Reform aims to help shake up not only the insurance

industry, but all stakeholders involved in trying to clean up the present dysfunctional nature of the claims farming scene in the UK. It’s a campaign around the reform of bodily injury, including the abuses and often downright fraudulent activity, particularly with alleged whiplash neck injuries and industrial deafness.

It faces up to the blatant fact that some claims farming activity is just a racket, fleecing government, policyholders, and the insurance industry as a soft touch for anti-social behaviour. I think it’s fair to say everyone is fed up with the whole claims farming culture, because it affects us all.

As long as there’s an incentive for claims farmers to exist, then they will exist – remove the incentive, and they will disappear.

This topic is on the Aviva agenda to encourage government to take action. And we will pass on the savings – our industry is competitive enough to make that happen.

AN: Phil, tell me about the business relationship between Aviva and Markerstudy?

PB: We have a number of different business relationships with Markerstudy.

They play at both ends of the table, being an insurer and a broker, with a number of other strings to their bow, such as BDML. Aviva sits alongside them on their pet business, where we are 50% carriers. And as a broker they also place business with us.

They possess good underwriting-related values, and the fact that they are underwriters as well as brokers gives them credibility. They are interesting guys to work with, they come up with new ideas, and are always looking for new opportunities.

AN: So how do you get on with Markerstudy’s so called ‘irreverent’ style?

PB: Well, it’s true there’s never a dull moment, and from a personal point of view they are a great bunch of characters, right the way through the whole structure.

Markerstudy is very refreshing because it is so diverse, and it has entrepreneurial people. We find them very professional. They are clever people and very dynamic.

APRIL 2015 insurancepeople 15

marketing

Building a reputation

A good reputation is a company's greatest asset, so it has to be carefully managed. Elizabeth Holt looks at the role public relations plays in creating and maintaining a good reputation

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uality products - Excellent service proposition - Dedicated employees. All three can be used to build reputation among customers.

But how to publicise a company so that both existing, and potential customers are aware of a reputation for excellence?

Apart from word-of-mouth, the obvious answer is to develop a communication strategy. This is not just about communicating strengths it's also to shape the right opinion of the business and its management.

And it needs the same due care and attention as applied in any other aspect of the business.

If not, it can go drastically wrong.

Remember the example of the infamous speech by jeweller, Gerald Ratner, where he was asked to speak to a group of business leaders about the success of his then eponymous

high street and stockmarket-listed jewellery business.

At the time Ratner, the business leader, and his company were darlings of both the media and the stockmarket. The business had turned around in the depths of a recession, the share price had risen steadily, customers loved the goodvalue products, and Ratner himself was seen as a business genius.

Of course, most people will also remember how the story ended - in disaster! Asked at a conference in 1991 to describe the secret of the firm’s success, Ratner made the cardinal mistake of jokingly running down his own products e.g. that they were “total crap” , and that Ratner earrings were, "cheaper than an M&S prawn sandwich, but probably wouldn't last as long." Attempts to inject humour can insult loyal

Elizabeth Holt HOLT PUBLIC RELATIONS

customers, and be pounced on by the media.

As a result, £500 million was wiped from the company's value, as well as destroying years of positive reputation the firm had built up. he lesson is two-fold. First, that while it can take years to build a positive reputation, it only takes seconds to destroy.

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Secondly, managing stakeholder relationships (employees, investors, the media and - most important – your customers), is not as easy as it looks.

Effective PR can help safeguard reputations by delivering the messages in a way that leaves little room for misinterpretation.

In association with

insurancepeople

News

New underwriting agency targets waste management olon Underwriting, backed by Lloyd's capacity, has been created to deliver a range of products targeted at the recycling and waste management sector.

The UK recycled 38% of its solid waste in 2011 and has sought to drive further increases by raising its landfill tax from £15 per tonne in 2006 to £80 per tonne last year, with an annual increase now linked to the retail price index.

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16 insurancepeople APRIL 2015

Solon says that, in terms of insurance, recycling and waste management firms have been faced with a capacity shortage for their specific risks and with less than a handful of underwriters offering specific products for the sector in the UK/Eire and in Germany.

“The capacity shortage has seen companies faced with products not specifically designed for the sector,

some capacity from poorly rated underwriters, and clients sometimes simply having to self-insure,” says managing director Bill Adamson. “We work with specialist brokers in the sector, identifying what their clients need and we provide a range of cover underwritten by Navigators Syndicate 1221. As a Lloyd's market the syndicate provides 'A-rated' insurance capacity, they have a

Bill Adamson

strong focus on technical underwriting, and they are committed to the class.”

In association with

insurancepeople

News

Increased income at NFU Mutual eneral insurance premium income at NFU Mutual in 2014 was £1.330 billion (2013: £1.288bn). The combined operating ratio was 87.8% (89.9%), the underwriting profit £150m (£120m) and the profit for the year £413m (£635m).

The company reports that, notwithstanding difficult market conditions, it achieved an underwriting profit for the fourth year in a row.

Lindsay Sinclair, group chief executive, says, “We saw an uncertain start to the year with wind, storms and flooding causing havoc to many of our members, signifying the longest period of continuous severe weather seen by NFU Mutual in over 100 years.

“We’ve been supporting our members every step of the way in making a good

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recovery from the impact and damage caused by the flooding, and at the end of the year we had paid out more than £81 million for flood and storm damage.

“Our agency network and staff were quickly out in force on the Somerset Levels, helping members with emergency payments and supplies and it is at times like this that the value of our local, personal service really comes to the fore.

“This dedication to customer service is recognised not only by our customers but by major consumer organisations as well, and we were very proud to be named Which?

Best Insurance Services Provider – a new category in 2014, as well as a Recommended Provider for car and home insurance for the ninth time in a row.”

New commercial combined from AXA XA Commercial Lines and Personal Intermediary has launched a new e-traded commercial combined product, offering cover for more than 2,000 trades.

AXA Business Choice, available via AXA’s extranet, the Acturis broker trading platform, or by contacting AXA’s online trading team, provides cover for manufacturing and wholesale businesses with turnovers of up to £5m and up to three premises. The product will also be made available on other broker software houses throughout the course of the year.

With premiums starting at £350 and commission flexibility available, AXA Business Choice is supported by a dedicated trading team which, says the company, will respond to 90% of broker referrals immediately and 100% within 30 minutes.

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Motor breakdown cover for motor traders

breakdown scheme for motor traders has been launched by Auto Legal Protection Services (ALPS).. Available through brokers, the scheme is designed for both full and part-time motor traders who could be driving many different vehicles, including recovery trucks, during the course of their work.

Cover is given to the policyholder rather than a specified vehicle and includes six call-outs per policy period, cover for vehicles up to 7.5 tonnes and mis-fuelling cover and breakdown assistance anywhere in the UK, including their office and home.

The scheme is being run in association with AXA Assistance, which is providing a 24/7 claims line.

The scheme is available to all brokers

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upon request and ALPS is already working with three brokers on the scheme, who have in excess of 47,000 policyholders between them. The company says that it can also work with brokers to tailor the scheme according to their needs.

Matt Field, sales and marketing director of ALPS, comments, “Conventional motor policies offering breakdown cover to the driver of a specific vehicle are not really suitable for motor traders. Until now there have been a few policies on the market, but with very limited cover and limited support. We can now cover a vehicle or a person in any vehicle within the motor trade market and offer a comprehensive package of customer support and breakdown assistance.”

APRIL 2015 insurancepeople 17

insurancepeople

News

Single TOBA for Pen

Easier to gamble than save

en Underwriting is rolling out a single Terms of Business Agreement (TOBA) giving producing brokers across the UK the potential to trade with all its specialist businesses and marking the next step towards establishing a single underwriting entity.

It follows the launch last year of Pen Underwriting as a common brand to unite the UK MGAs of Dallas Kirkland, e-Underwriting, Ink, IRS, Keelan Westall, Oamps, Think, Vela, Woodbrook and Zennor that collectively write around £300m in gross written premium — all of which will begin trading under the Pen Underwriting name during the course of 2015.

new study from SunLife reveals that many UK consumers have low levels of savings set aside for a rainy day.

According to SunLife’s research, almost a quarter (23%) have less than £100 in savings. Yet the UK household average for gambling is 40% more than that, at £140.16 a year.

Dean Lamble, SunLife managing director, comments,“In Britain many of us enjoy a flutter, and with the rise of online gambling websites it’s never been easier to place a bet. But we think it should be just as easy to save and invest online, with straightforward financial planning and saving products that are accessible to everyone, regardless of their income or financial experience.

“It’s why we introduced a stocks and shares ISA from just £10 a month, with a 10 year safety-net and the chance to beat the returns savers could get from a cash savings account over the long term, available at sunlife.co.uk. So now it’s as easy to save for a brighter future as it is to bet on one.”

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Simon Taylor, sales director for Pen Underwriting, says, “When we unveiled Pen Underwriting as the collective brand for our specialist MGA businesses and began the journey to creating a single underwriting business, we made it clear that being easy to do business with was a top priority.

“The creation of one TOBA to cover all our underlying underwriting specialisms is tangible evidence of us delivering on that promise — and we’ll continue to look for ways to help independent brokers more quickly and easily respond to the needs of an ever-greater range of businesses.

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Markerstudy completes Ultimate purchase arkerstudy has announced that approval has been granted by the Financial Services Commission (Gibraltar) and Financial Conduct Authority (UK) for their acquisition of Ultimate Insurance Company, the independent niche personal lines insurer based in Gibraltar, and Ultimate Pet Partners Limited, the UK administrative arm of the business. The completion of this deal adds in excess of £30m GWP. The business founders, Brian Lambert and Paul Hampshire, will remain with the business.

The Ultimate Insurance Company operation will be overseen by Gary Humphreys, Markerstudy Group underwriting director, whilst Ultimate Pet Partners Limited will join the Markerstudy retail division, headed by managing Gary Humphreys director, Russell Bence.

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18 insurancepeople APRIL 2015

Three-year higher apprenticeships from Bluefin luefin is offering schoolleavers three-year higher apprenticeships for the second year running, in addition to the one-year standard apprenticeships being offered for the seventh year in a row. The standard apprenticeship is a 12month programme after which students obtain the Cert CII, and the higher apprenticeship is a 36month programme following

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which students obtain the Dip CII. Having been involved in the National Apprenticeship Scheme for the past six years, Bluefin has seen 119 members of staff obtain their Cert CII. The National Apprenticeship Scheme combines technical training with study for the Chartered Insurance Institute qualifications, tailored to the apprentices’ areas of work.

In association with

Risks in pensions freedoms he Institute and Faculty of Actuaries (IFoA) warns of the risks surrounding the new pensions freedoms coming into effect in April 2015.

The IFoA says, “Individual members of Defined Benefit (DB) pension schemes may be targeted to transfer out of their current schemes and into Defined Contribution (DC) schemes to enable them to benefit from the new

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freedoms. However, individuals need to understand the risks this involves.” The IFoA has published guidance for its members ahead of the April changes.

Desmond Hudson, chair of the IFoA’s regulation board, comments, “There is a danger that unscrupulous selling or advice to the unwary could see individuals suffering

financial loss. People who transfer benefits out of their existing DB schemes and into DC schemes may be accepting more risk than they realise by giving up a lifetime income.

“The IFoA is also encouraging life insurance companies to develop products for the new retirement market that are fit for purpose for the individuals who would be purchasing them and do all

they reasonably can to ensure well informed decisions are being made.

“The public should be reassured that actuaries have professional responsibilities when providing advice, as IFoA members have an obligation to observe the principles of The Actuaries’ Code in the public interest that promote confidence in the work of actuaries and the actuarial profession.”

“Present danger” of pension scams ollowing Martin Wheatley's speech on the FCA's responsibility to protect pension savers ahead of the new pension freedoms in April, Malcolm Kerr, senior adviser to EY, comments: “With less than a month until the pensions changes are implemented, we are still in a position of lots of questions, but very few answers. Pensions scams represent a very clear and present danger, and the industry would welcome more clarity around the measures that the FCA is considering in order to protect consumers from these threats. Providing pensions advice, as opposed to guidance, is complex, irrespective of the size of the customer’s overall savings, and what is very clear is that if the Retail Distribution Review didn’t create an ‘advice gap’, there’s a real danger the incoming pensions freedom will.”

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Open GI appointed by Entire Cover ollowing its recent official launch, Entire Cover has appointed Open GI as its technology supplier. Based in the Midlands and headed

by Mark Copper, Entire Cover offers a range of personal lines cover, including motor, van, classic cars and motorcycles. The company also offers cover for

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individuals with driving and criminal convictions, and to specialist vehicles such as ice cream vans and horse boxes.

Mark Copper comments, “We are working with a number of leading insurers to offer our customers an opportunity to access specialist cover tailored for

the motor industry. In addition to our offering, Entire Cover aims to ensure that our customers have access to immediate cover on these products to help keep them moving and not left dangling on the end of the telephone.”

Open GI’s sales and marketing director, Simon Hughes, adds, “2015 has

started strongly for Open GI. We are working with a number of leading brokers, some new and some existing, to equip them with the latest technology initiatives. Entire Cover’s start-up success to offer specialist motor cover is another positive story for the industry.”

APRIL 2015 insurancepeople 19

insurancepeople

News

Applied Systems connects to MyLicence A pplied TAM UK is to connect to the MIB Hub to use the MyLicence service. MyLicence will enable Applied TAM UK brokers to provide more accurate risk assessments for insurer premium pricing and will go live in Applied TAM UK Q2 2015.

UK brokers will be able to enter a consumer’s driving licence number into Applied TAM, which will

Jeff Purdy

be connected to the MyLicence service to obtain complete and accurate driving history

directly from the DVLA database. This information – driving endorsements, entitlements and penalty points – is then submitted to insurers for use at point of quote.

“Consumer data continues to grow at an exponential rate, providing key insurance industry stakeholders a critical opportunity to leverage this valuable information for more accurate risk-assessment

and underwriting,” said Jeff Purdy, senior vice president of international operations, Applied Systems. “By connecting Applied TAM to the MIB Hub and using the MyLicence service, brokers will be able to enhance their competitive value by offering lower premiums and quicker client servicing, further enabling business growth and profitability in today’s evolving marketplace.”

Pool Re announces £1.8 billion reinsurance programme

Markerstudy “11th best” to work for

ool Re has purchased reinsurance in the commercial market for the first time in its history. The three-year programme provides £1.8bn of cover and has been placed with “a highly secure panel of reinsurers”.

Pool Re says that the placement further distances Her Majesty’s Treasury and the UK tax payer from any potential liability, but importantly also protects scheme assets thereby increasing the sustainability of the pool.

The single layer programme, led by Munich Re and brokered by Guy Carpenter, mirrors the cover currently provided to Pool Re members, including chemical, biological, radioactive and nuclear risks.

Julian Enoizi, chief executive of Pool Re says, “I

or the third year, Markerstudy appears in the Sunday Times “100 Best Companies to work for” awards, maintaining its 11th position and being placed in the top 20 for the third year running.

Surveys conducted as part of the awards found 87% of staff said they were excited about where the company is heading, taking

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am extremely pleased to announce the placement of Pool Re’s first reinsurance programme. The purchase of external reinsurance cover is one of our key initiatives to reinforce the Pool Re Scheme which will protect and increase the resilience of the members’ fund, diminishing the UK Government’s exposure and distancing the UK taxpayers from any potential liability.

“This programme provides the largest amount of cover ever secured by a national terrorism pool and is backed by excellent security. Today’s announcement is a key step in the evolution of Pool Re and in keeping with one of its founding objectives, allows the commercial market to once again provide terrorism insurance in the UK”.

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it to 3rd place overall and 82% of employees said that the company has a plan that they can commit to (top ten score). Furthermore the company was ranked 5th for wellbeing with 82% of staff saying that they love working for Markerstudy and 85% citing Kevin Spencer, group CEO, as an inspiration (6th place for most inspiring leaders).

Pictured left to right: Jonathan Austin, founder & CEO, Best Companies Ltd, Tanya Gerrard White, director of HR and talent development, Markerstudy and Lizzie Smith-Foreman, head of group marketing & communications, Markerstudy

In association with

VitalityHealth new corporate proposition italityHealth, the business formerly known as PruHealth, recently launched its new corporate proposition, which has been established “ … to improve the health of Britain’s businesses”.

This new proposition has been developed using insight from Britain’s Healthiest Company, an initiative launched in 2012, which is claimed to be the largest, most comprehensive survey of employee health and wellbeing in the UK. The 2014 study of 82 companies and over 23,500 employees provides VitalityHealth with a view of the corporate wellness picture. This is not simply the level of fitness and activity that organisations participate in

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but includes mental wellbeing, stress, morale and overall satisfaction.

Greg Levine, director of corporate and intermediated business, says, “Today it’s vital that Corporate UK takes a holistic view on employee physical and mental health.

Our new corporate proposition enables employers to tailor their plans depending on requirements and budget and with the benefit of our integrated wellness proposition – which is clinically proven to drive positive healthy behaviour change – staff are able to live happier, healthier lives and businesses can benefit from claims fund savings, reduced absenteeism and improved productivity.”

Rules for charges in workplace pensions he FCA has confirmed final rules which will require firms operating workplace pension schemes to implement a charge cap for default funds used for automatic enrolment. Default funds are used automatically to invest pension scheme members who have not actively chosen a fund into which to invest.

From April 6th, firms providing workplace pension schemes used by employers for automatic enrolment will have to cap the charges within default funds to 0.75% per year of funds under management.

Christopher Woolard, director of strategy and competition at the FCA says, “It is important that those saving into workplace pension schemes get value for money and this is especially true for those who are not playing an active role in deciding where their money is invested.

“Schemes need to work effectively for members and the charge cap, alongside other new measures such as independent governance committees and transparency of costs, will help to ensure this going forward.”

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Prime-time TV advertising for SunLife

or the first time in its history, SunLife advertising on prime-time television by sponsoring the third series of ITV’s “Big Star’s Little Star”, which started on March 4th for a six week run.

Dean Lamble, SunLife’s managing director said; “Big Star’s Little Star is a fun, family favourite watched in millions of households around the UK. It’s a really simple idea and the perfect fit for SunLife, as our family life insurance and ISAs are ideally suited to families who want straightforward, affordable ways to plan for their future.”

To coincide with the start of the new series, SunLife launched a “mystar” social media competition, inviting viewers to share their stories and videos of funny or embarrassing things their children have said about them, for the chance to win family hampers.

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New leaders for BIBA small brokers' board ndrew Gibbons, managing director at Mason Owen Financial Services, has been appointed chairman of the BIBA Smaller Brokers' Advisory Board. Hewas previously the deputy chairman and replaces Kevin Hancock, who has stepped down from the advisory board following the integration of the General Insurance Brokers’ Committee, in order to focus

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on his personal business commitments.

Ashley Rogoff, managing director at Ashley Page Insurance Brokers, has become the deputy chairman. He has been a member of the advisory board since it launched last year and is also a member of the Financial Conduct Authority’s Smaller Business Practitioners’ Panel which provides a voice for smaller regulated firms into the FCA. APRIL 2015 insurancepeople 21

insurancepeople

News

CII group raises care home concerns he CII's Insurance Broking Faculty New Generation Group 2014 have published a new report into the availability and future market for liability cover for care homes.

The report, part of the brokers’ participation in the CII’s New Generation Group programme, provides an insight into the state of the care home market. This is in the wake of increasing reports of abuse in the

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media and the potential for a rise in related claims as a result. The report emphasises the key role that brokers can play in ensuring the right protection continues to be available.

One area of concern raised in the report is a lack in consistency of cover offered to care homes as insurers review their coverage and appetite for the sector. It looks at the role of the broking sector and

how brokers are key to ensuring the future viability of the market in terms of finding the right cover for clients.

Ant Gould, director of faculties at the CII says, “The group decided to take an objective and constructive look at an area of real public concern. It is to their credit that they have produced a report that should encourage brokers to embrace a sector that is in the media spotlight.

Carole Nash launches Rider Cover arole Nash has launched Rider Cover, to provide motorcyclists with enhanced cover to ride someone else's bike at no extra cost. This is an extension to existing Carole Nash cover, allowing the policyholder to ride anyone else's motorcyle, with the bike in question covered should it be accidentally or maliciously damaged or vandalised.

Nick Baker, products and marketing director for Carole Nash, comments, "The launch of Rider Cover is further evidence of our forward-thinking approach, in-depth understanding of the market and bikers' requirements. We spotted a gap in the market and acted on it with a new and unique offering.

"As part of the product development phase, we asked a large number of bikers to give us their thoughts on Rider Cover. Their feedback was really positive, with most people praising our new proposition for the added peace of mind that it brings them."

Thus ensuring the continued protection of vulnerable people.”

Hiscox GWP up to £1,756m or the year to December 31st 2013, Hiscox Ltd reports GWP of £1,756.3 million (£1,699.5m in 2013). Pretax profit was £231.1m (£244.5m), and the group combined ratio 83.9% (83.0%).

Chief executive Bronek Masojada comments, “Hiscox has had another good year.

We have been able to grow profitably in

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22 insurancepeople APRIL 2015

Ant Gould

insurance and position Hiscox Re sensibly, reducing premiums and attracting new capital in the face of tough conditions. The strategy of diversification we have pursued for decades means that, whatever the headwinds, we have the firepower to set our own course. We have the strategy, brand, people and capital support for a rewarding future."

Novae reports GWP of £638m n its preliminary results for 2014 Novae Group reports GWP of £638.5 million (2013: £590.3m), an increase of 13%. The claims ratio improved to 49.1% (52.4%) and the combined ratio was 91.0% (90.3%).

Pre-tax profit was £52.4m (£54.2m).

Matthew Fosh, group chief executive, says, “The group has again performed strongly, achieving record

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premiums, an improved claims ratio, and making good progress operationally.

Opportunities for profitable growth remain for those with the agility to navigate a challenging market environment. We continue to invest in the business, to attract talented people and to develop new ideas, all of which are maintaining and building the group’s momentum.”

In association with

CDL wins charity award DL has been named Corporate Supporter of the Year at the Forever Manchester 25 yearanniversary award ceremony.

The award was presented in recognition of the company’s continuing successful partnership with Forever Manchester (the Community Foundation for Greater Manchester), and ongoing support for grassroot community projects in the Stockport area.

CDL operates an active community investment programme called the CDL Fund, which Forever Manchester administers on the company’s behalf. This has delivered over £90,000 in grants and awards since it was established in 2012, providing support to around 70 community projects.

Aviation industry underprepared for cyber risks

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eporting on results to year-end 2014, esure says that a “ … disciplined approach in a challenging environment” has resulted in GWP decreasing by 3.4% to £517.8 million, and pre-tax profit going down by 12.8% to £103.3m. The combined operating ratio increased by 2.2 points to 91.9%.

Acquisition of the outstanding 50% of Gocompare for £95.0 million was expected to complete on 31 March.

Peter Wood, chairman of esure Group, comments, "esure’s management team continue to make the right decisions to position the business for further profitable growth when market conditions permit. As we wait for those conditions, 2014 has been another year of discipline. The recent acquisition of Gocompare is an exciting opportunity for the group. It provides us with strategic control of a leading UK financial services brand with great potential.

“The group has delivered a solid set of results and has a strong financial position. In light of this, I am pleased to announce that the board has declared a final dividend of 11.7 pence per share, which together with the interim dividend of 5.1 pence per share, represents a payout ratio of 85%, demonstrating the board’s commitment to return excess capital to shareholders."

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he aviation industry is behind the curve in terms of its response and readiness to the threat posed by cyber criminality whether from criminals, terrorists, nation states or hackers, according to Peter Armstrong, head of cyber strategy for Willis Group.

Speaking at the Willis-IATA-AAPA Aviation Insurance conference in Hong Kong, he explained that the aviation industry’s under-preparedness is noteworthy in a sector that abhors uncertainty and works tirelessly to eradicate it.

He added that the recent launch of the American Institute of Aeronautics and Astronautics cyber security framework is a good start, supported by the International Air Transport Association aviation cyber security tool kit.

However, he warned that regulators, manufacturers and operators are only now waking up to the pervasive nature of cyber threats. “We remain concerned that cyber risk is not viewed as a significant enabler, amplifier or accelerator of existing risk in the portfolio as well as discrete cyber risk posed for example through use of Cloud technologies. This is a board room issue representing a sophisticated challenge to sophisticated organisations.”

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FCA consultation on pension transfers he Financial Conduct Authority has published a consultation paper on proposed changes to its pension transfer rules, designed to reflect the Government’s new flexible pensions regime.

The FCA already regulates advice on transfers to personal pensions. The Government’s new regime will bring advice on transfers from defined benefit schemes to occupational defined contribution schemes into the FCA’s remit.

Consumers will be required to take advice before transferring out of a DB scheme and it will be the responsibility of trustees to check that people have taken advice.

T CDL Group Chairman, Tom Hogg, being presented with the Corporate Supporter of the Year Award

esure GWP and profit down

APRIL 2015 insurancepeople 23

insurancepeople

News

Senior appointments at Besso esso Insurance Group, the Lloyd’s broker, has announced a number of senior appointments to the group management board and to Besso Limited.

Howard Green, chairman of Besso Property, will become CEO of Besso Limited. He joined Besso in 1985 and is one of

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Howard Green

the founding members and architects of the company following the management buy-out that saw the creation of Besso in its present form. He has nearly 50 years’ experience in the insurance industry working in the Lloyd’s market and specialising in property.

Roddy Caxton-Spencer,

Robert Dowman

BIBA registered email facility IBA has launched a new Registered Email service for members with RPost. The service provides a registered receipt containing legal proof of sending, content, delivery and opening of emails and will help members to evidence compliance with ICOBs, TCF and best practice.

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24 insurancepeople APRIL 2015

A reduced rate for BIBA members has been agreed for the RMail service, along with no set up fees, no long term commitment, no limit on the number of users and a pay as you go model.

BIBA comments, “The built in encryption option ensures messages and attachments are securely protected, helping brokers to meet their data security obligations. Electronic signature features allow brokers to obtain multiple legal signatures on contracts instantly via email, helping to close business quicker, save valuable time and reduce the need for chasing.”

chairman of Besso International, Robert Dowman, head of Besso Global Casualty, and Russell Nichols, head of Besso Global Property, have been appointed to the Besso Insurance Group board.

John Hudson, managing director of Besso

Russell Nichols

Marine, has been appointed as a director of Besso Limited.

At the same time as these appointments, Colin Marshall a founding partner of the group has made the decision to retire as a director of Besso Insurance Group and as CEO of Besso Limited.

John Hudson

New guaranteed hire cover for motorcyclists exelle has expanded its range of products by launching a new Guaranteed Hire Vehicle (GHV) policy for motorcyclists.

Complementing Lexelle’s existing GHV motor scheme, the motorcycle GHV is underwritten by UK General Insurance on behalf of Ageas Insurance Limited.

Levels of cover range from 50cc to gold cover that provides a replacement bike up to 1,000cc where, if the insured cannot ride due to injury sustained in an

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accident, the hire bike can be replaced by a car.

Lexelle managing director Sharon West says, “We believe we have not only identified a gap in the increasing motorcycle market but also a niche product that provides a real benefit to the biker community.

“This is particularly significant with recent statistics showing a total of 101,277 new motorcycles, scooters and mopeds were registered during 2014 - a 10 per cent rise on the previous year.”

In association with

Rural Insurance moves motor to Catlin ural Insurance, the specialist agricultural insurer, has increased a number of covers and limits across its motor products to accommodate risks with higher single vehicle values in response to specialist broker feedback.

The product improvements – covering the company’s Farm Motor Insurance and Rural Business Motor Insurance – are based on moving its motor business to Catlin, which already provides capacity for Rural Insurance’s Farm Combined cover.

The Farm Motor Insurance policy includes an increase to a £50,000 limit for “unspecified trailers”, which Rural Business Motor provides up to £5,000. Other changes include increases across medical expenses, personal belongings and loss of keys.

Rural Insurance managing director Ian Barclay says, “As shown by Catlin’s collaboration on our Farm Combined product, we have chosen a capacity provider with a similar appetite to ours for continually reviewing and improving the offer to rural brokers and their customers.”

The new farm motor capacity arrangements with Catlin go live on 1 April 2015, though brokers and their clients will be aware of the change when receiving renewal documentation as from the start of March.

On your bike for charity

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Olympic gold cyclist to close conference lympic cycling gold medalist Dani King will be the closing speaker at the Working for Success Insurance Conference and networking event being held at St Mary’s Stadium, Southampton on Wednesday April 15th.

Ageas chief operating officer Barry Smith will give the keynote address to open this all-day event, which is being jointly presented by the Insurance Institutes of Southampton and Bournemouth.

Also on a full day’s programme will be presentations on Driverless Cars, Flood Re, Abuse Claims, Compliance, and soft skills, as well as an address from Reg Brown.

Southampton president Dilys Gale says, “Diverse and top quality events such as this are rarely held outside of London and we are attracting interest from across the south of England. Normally conferences with speakers of the calibre we have sourced attract a price in the hundreds. We are delighted to bring such an event to the south offering top speakers, a full day’s CPD, networking opportunity and lunch, all for £40 per delegate.”

For further information, go to www.cii.co.uk/southampton and click on the link to the conference.

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usiness and finance people are being urged to join the Edinburgh Night Ride to support the charity of their choice. They are invited to get on their bikes to pedal around Edinburgh while the city sleeps.

Organised by Global Adventure Challenges, the Edinburgh Night Ride will take place on Saturday June 20th, starting and ending at the Meadowbank Stadium.

Cyclists will ride off into the sunset and continue through the night. The route will take in some of Edinburgh’s most iconic sights including Arthur’s Seat, Holyrood Palace, the Forth Bridges, not forgetting Edinburgh Castle.

Registration is now open. Log onto http://globaladventurechallenges-mail.com/GAX37UAR-J55CJ8-1HT1O4-1/c.aspx where cyclists can enter as an individual or as a company team? A discount is available for groups of ten or more.

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APRIL 2015 insurancepeople 25

On the move Who’s going where?

Marianna Grammatika

HSB HSB Engineering Insurance appoint Marianna Grammatika as senior loss control engineer. She joins from

FM Global where she worked for seven years as a loss prevention field engineer, specialising in fire control on high risk accounts within the chemical, biochemical, and pharmaceutical industries.

She holds a master’s degree in chemical engineering, a PhD in chemical and process engineering, and previously worked as a research fellow at the University of Birmingham.

Liberty Liberty Specialty Markets appoints Serge Davidoux as claims manager for France, based in Paris. He joins from Aon in France where for 15 years he held roles including chief claims officer and head of property claims. The holder of a law degree from University Paris XII, he began his career in 1983 as a senior claims manager for ADP, part of AXA Group.

Novae Novae Group appoint Alexandra Moon as group general counsel from RSA where she spent seven years, most recently as general counsel for its emerging markets division.

Prior to that she qualified in the corporate department of Allen & Overy before joining Travers Smith, where she focused on M&A, private equity and corporate finance.

Pinpoint Pinpoint Underwriting appoint Brian Kerrigan to its underwriting team. His professional indemnity career began at General Accident in 1997 and eventually took him to Aviva.

Triton Global Commercial claims organisation Triton Global appoints Vandna Batchelor as head of Triton Audit UK. She brings over ten years’ experience and joins from Brit where she was delegated authorities audit manager.

26 insurancepeople APRIL 2015

Vandna Batchelor

Sterling Sterling Insurance Group appoint Pauline Palmer as a regional development manager for the West Midlands and South Wales region. With 27 years’ experience she joins from broker network Purple Partnership. Prior to this, she worked at Powerplace having previously worked as a personal lines broker.

CFC Underwriting

Towergate Towergate Insurance appoint Steve Wood as CEO of Paymentshield. He was previously UK managing director at Ecclesiastical Insurance where he spent 8 years. Prior to that he led the MBO of Royal SunAlliance’s healthcare division. He started his career at Royal Insurance.

James Watson, currently acting CEO reverts to his role as sales director.

Pauline Palmer

Anthony Bradley

AXA Assistance AXA Assistance UK appoint Anthony Bradley as chief financial officer.

Previously deputy chief financial officer, he joined in 2002 in roles including underwriting analyst, senior finance analyst, and financial controller.

He graduated from Oxford University with an honours degree in Mathematical Sciences and is Association of Chartered Certified Accountants qualified.

Specialist lines underwriting agency CFC appoint Jamie Bouloux to its corporate cyber practice. He joins from AIG where he was head of cyber and technology liability for Europe, Middle East and Africa.

His new role involves the development of corporate cyber on a global basis.

Jamie Bouloux

Robertson Taylor

Chase Templeton

Live entertainment industry specialist broker Robertson Taylor appoint Richard Arnold as its new head of private client services in the UK. He brings over 20 years’ experience in this sector, and joins business from R.K.Harrison, where he was account director overseeing London and South East teams

Chase Templeton appoint Gillian Adams to head its SME department. In 1987 she joined RSA as a business analyst, then spent five years as a business manager at Guardian Health before being appointed as an account manager at FirstAssist.

Five years later she joined Groupama Healthcare as strategic

Richard Arnold

Paul Jeffrey

LMA Paul Jeffrey, joins the Lloyd’s Market Association to lead its work towards overhauling the processes for delegated authority underwriting. With 30 years’ experience in the London market, his previous roles include Aon, Kiln, where he was binding authority group manager, and more recently Brit.

Auto Windscreens Marc Lafferty joins Auto Windscreens as sales director.

A former sales and commercial director at Acal PLC, and was head of sales at Belron responsible for key fleet and insurer relationships.

Phil Kemp joins as operations director. His ten years’ experience includes working at Silver Shield and Autoglass.

Gillian Adams

account manager and was retained by Simplyhealth following its purchase of the business.

Swinton

Tysers

Swinton Insurance promote chief risk officer Rob Harding to CFO. A chartered accountant, he joined Swinton in 2012 having held senior positions with Ageas and Aviva. He will continue to oversee the risk function.

Christian Plumer has resigned after two-and-ahalf years as chief financial officer.

Independent Lloyd’s broker Tyser & Co appoint Stuart Blakeborough as chief operating officer. He joins from Lancashire Insurance Group where he was COO, and prior to that worked at Hardy Underwriting Agencies and Aon. He has over 25 years’ experience in the London insurance market.

Hood Ageas Ageas appoints two new regional underwriters to its commercial lines proposition for brokers.

Paul Gray has 15 years’ experience and covers the South-East. He joins from Fusion where he was commercial underwriter. Prior to this he worked for NIG and RSA. Nick Hall covers the North-East and has over

Paul Gray

25 years’ experience with roles at Groupama, CIGNA, and Keychoice.

Hood Group appoint Jonathan Beaven as head of finance. An ACMA qualified accountant, he joins from the Whitehouse Leisure Group where he spent 10 years as group financial controller. Prior to that he spent four years as finance manager for HML Marketing, then a subsidiary of Cox Insurance Group. His earlier career was spent

Jonathan Beaven

in the City working with Plc’s including Cable and Wireless and Dow Jones.

APRIL 2015 insurancepeople 27

by Andrew Newman

ne of the pleasures of collating this regular column in IP is that it certainly “breaks the ice at parties”. While networking souls are sometimes reticent at talking freely with a journo, the existence of this column seems to ease that strain.

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Several contents of last month’s IP issue attracted the kind of feedback ideal for this page. Take the Forbes-Wilson memoir which featured a 1970s Lloyd's underwriter, infamous for writing New York tenement block property cover - not in the Room at Lloyd's, but in a hostelry round the corner.

Many readers - both in Lloyd's and elsewhere -

correctly identified Frederick “Tim” Sasse as the progenitor of what became known as the “Sasse Affair”.

Sasse ran up syndicate losses in 1976 of £21m. The 110 syndicate members (now facing bankruptcy) refused to pay up when they discovered his flagrant breach of Lloyd's rules by giving his pen to a Florida agency (of doubtful background) who placed large volumes of substandard property insurance on housing in New York City’s South Bronx slums, and similar areas elsewhere in the USA and Canada. A number of the insured properties burnt down, with arson the most likely cause.

The scam’s perpetrators pocketed several million

Immoral hazard ere’s a reader response prompted by comment in last month’s IP highlighting our industry’s reputation for ‘small print-related’ claims repudiation.

“At a time when there were over 40 Lloyd's motor syndicates and umpteen motor insurers, it’s true there was some raw work pulled when taking policy wording interpretation to the extreme on vehicle modification.

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“But it wasn’t only related to vehicle. One motor underwriter providing a ‘Husband-and-wife only’ driving discount didn’t go to the bother of viewing a marriage certificate at inception. But he certainly checked this out when the claim came in if the spouse was driving. And if such evidence was lacking, his grounds for repudiation (‘immoral’ hazard) wouldn’t cut much ice today.”

28 insurancepeople APRIL 2015

dollars, and Sasse’s Brazilian reinsurers refused to pay. It wasn’t until late 1977 that Lloyd’s suspended Sasse. And it took until the mid-1980s before Lloyd's reached a compromise settlement with the Names, with Lloyd’s achieving this via a levy on all 18,000 Names.

So thanks to the memoir left

by Malcolm Forbes-Wilson, the startling embellishment that can be added to the

in association with:

Sasse affair is that this disaster for Lloyd's wasn’t actually perpetrated within the Lloyd's building – it all took place round the corner in a wine bar in Billiter Street where Sasse allegedly held court every afternoon, fortified with large glasses of vintage port!

For all its mystique, Lloyd's apparently did have its informal moments. Strong and ribald language in the box was not unknown, and one aspect - no doubt today swept under the carpet of the digital age - was “literary bribery”.

This was alleged to take place to help dispel any awkward risk categories that might lead the underwriter to decline acceptance. Such cases would naturally be complex and need a thick file, in which a ‘doubtful’ mag could be discreetly placed. “If the file came back to the broker slightly lighter than when you handed it over, all was well,” says my contact on this aspect of life at Lloyd's. “If it weighed the same, then you knew you’d got a declinature. But mostly all was well.

You had to know your underwriter.”

A connected anecdote on the same topic relates to the apparently much more naïve and genteel 1920s period, related by one whose grandfather worked in Lloyd's in that era. Similar bribery was known to take place, but a ladies’ lingerie catalogue tucked discreetly in the file was the best they could do.

On the Road.

For the ďŹ rst time ever we are running a series of roadshows across the country.

We welcome both new and existing agents to join us in a relaxed, informal atmosphere.

Why should I attend?

Get insight from our underwriters on how our schemes can beneďŹ t your business.

Find out before the competition on what new exciting initiatives we have planned for 2015.

Come and join us for a drink, put a face to a name and meet the underwriters and decision makers that help mould Commercial Express.

Ĺ— Ĺ— Ĺ—

Roadshow Dates: ),."Ĺ— )( )(ŗßÝŗ *,#&Ĺ—Ĺ—Ĺ—ÄŠĹ—Ĺ—Ĺ— )/."Ĺ— )( )(ŗßßŗ *,#& Ĺ— ( " -. ,ŗßĂŗ *,#&Ĺ—Ĺ—Ĺ—ÄŠĹ—Ĺ—Ĺ— #,'#(!" 'Ĺ—ĂźÄƒĹ— *,#& Ĺ—Ĺ—Ĺ— ,#-.)&Ĺ—Ä Ĺ— 3Ĺ—Ĺ—Ĺ—ÄŠĹ—Ĺ—Ĺ— & -.ŗßÝŗ 3 Please email

efarrell@commercialexpress.co.uk or call Eve on 01384 473030 if you’re interested in attending one of our roadshows.