Insurance People December 2014 / January 2015 eEdition

insurancepeople issue 49 December 2014 / January 2015

Cover artwork: Carol Newman

! s a m t s i r h C y Happ

Insurance People inside include:

Reg Brown Adrian Coupland

Alan Clarke

Alan Cleary

Malcolm Forbes-Wilson

Elizabeth Holt

Dean Lamble

John Gibson

Cathy Taylor

ce nsuran I e h T “ ith zine w a g a M ality�

Person

surance “The In with ne Magazi ity” Personal

in association with

insurancepeople

leader

www.insurancepeople.uk.com

Why do insurers “feed the mouth that bites them”? ike a snake biting its own tail, the insurance industry’s subrogated claims conundrum - recently summed up in these pages as “feeding the mouth that bites them” – would appear to be insoluble.

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Editor and Publisher

Consultant Editor

Andrew Newman

Brian Susman

There are always going to be players who seek a competitive edge by playing the market as they find it. The sheer diversity of providers is both the industry’s strength and its weakness, harking back to dinosaurs v. mammals, Lloyd's v. company market, composite v. specialist.

Commercial Director

Production Director

Jeni Hall

Adrian Susman

Editorial

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

Adrian Susman adrian@insurancepeople.uk.com 07981 993974

The so called motor ‘Knock for Knock’ agreement was a bygone example where a smaller specialist insurer running a predominantly non-comp account could invite such an agreement with a larger company with a mainly comprehensive portfolio - and get it!

December 2014 / January 2015

In this issue 2

Late news

4

Market talk

8

Interview Cathy Taylor, Ageas

9

John Gibson, Markerstudy

The IP team wish all our readers, contributors, sponsors and advertisers a Happy Christmas and a very prosperous New Year

Commercial Director

10

Elizabeth Holt Public relations

www.insurancepeople.uk.com

12

Printers

Adrian Coupland Telematics

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

13

insurancepeople

Alan Cleary Bouquets & Brickbats

4

Alan Clarke has some new irons in the fire

5

Dean Lamble and a rebrand for SunLife

14

Who said insurance is boring?

The late Malcolm Forbes-Wilson memoir continues

Also find us on:

ISSN 2043-9202 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.

Reg Brown The Postcard Emporium

11

Jeni Hall jeni@insurancepeople.uk.com 07969 510172

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

Pets

15

News

26

On the move Who’s going where?

12

Adrian Coupland believes telematics offers more than an excuse for cheaper premiums

13

The annual Alan Cleary B&B’s are back!

28

On the Road In the Swamp

DECEMBER 2014/JANUARY 2015 insurancepeople 1

insurancepeople

Late News

in association with

Ageas announces Mark Cliff resignation geas has announced the resignation of Mark Cliff, CEO of Ageas Retail, who will join Brightside as executive chairman during 2015, subject to regulatory approval. He will remain with Ageas while a replacement is appointed. Brightside is

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a trading partner of Ageas.

Andy Watson, CEO of Ageas UK, says, “Mark has played a pivotal role in developing our business and I will be sorry to see him leave us during the course of next year. Part of his significant contribution has been in creating a very

strong team who will continue to provide the high level of personal touch and service that brokers, partners and customers have come to expect from Ageas. This new opportunity is a great one for Mark and will further develop our relationship with Brightside.”

Mark Cliff

BDML returns to Portsmouth home

Pool Re retrocession arrangements approved

DML Connect is celebrating its return in November to its original base at The Connect Centre, Portsmouth, where its headquarters were situated from formation in 1999 until 2011, when it moved to Lakeside.

To celebrate the return of 400 staff to the newly refurbished east wing of the building, employees were handed goodie bags with sweets, cakes, BDML balloons and a raffle ticket for a

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prize draw where 12 winners received Restaurant Choice vouchers.

Russell Bence, managing director of the Markerstudy Retail division said, “It’s fantastic to be back in the building where BMDL was ‘born’; it inspired the company name and still holds many memories for original staff. We had a great day and look forward to once again making The Connect Centre our ‘home’.”

ool Re reports that, at its EGM on November 21, members approved changes to the HM Treasury retrocession arrangements as set out in a letter to members on November 5.

The chairman of Pool Re, Tony Latham, says, “Today's EGM is the culmination of many months of negotiations with Her Majesty's Treasury. I am therefore delighted that our members have voted unanimously in favour of the resolutions which the board recommended.

“In the context of where the discussions began, the concessions which have been secured as well as the acceptance by HMT of the modernisation plans which we wish to pursue, I am sure that this agreement will benefit our members, original policyholders and the insurance industry as a whole.

“This vote has secured the long-term future of Pool Re and, as a result, the provision of terrorism insurance in Great Britain.”

Hiscox re-affirms ransom position rior to the introduction of the CounterTerrorism and Security Bill on November 26, Hiscox issued the following statement welcoming the move:“The Hiscox position on kidnap and ransom cover has been and

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remains clear. Our policies already exclude reimbursement for any illegally paid ransoms which, under current law, would include payments made to proscribed or terrorist organisations. This policy is in line with the UN’s position which has

2 insurancepeople DECEMBER 2014/JANUARY 2015

prohibited the reimbursement or payment of ransoms to proscribed terrorist organisations for a considerable amount of time, and Hiscox, like the rest of the London Market has and continues to operate under these parameters.

“Along with our partners, Control Risks, we therefore welcome the clarification the UK government is proposing.

It reflects our approach and we will continue to provide our clients with the support and expertise they need, should the worst happen.”

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We w i s ha Merry Ch sh o e ristmas

Happand a y YearNew !

And as a result, we’re going the

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Telephone: 0844 324 6900

market talk

Andrew Newman

Insurers “feeding the hand that bites them” A charity that fills the gap

Is there “something rotten…. etc etc”? ast month in IP’s ‘On the Road’ column I shared the moment when a young lady skidded her car in the road, and demolished a good chunk of the hedge at Chez Newman.

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While it’s easy to regard such mishaps as just part of fate’s random lottery, I couldn’t avoid peering into the “something rotten in the state of Denmark” department, involving the potential misuse of telematics information; Big Brother; and the spectre of brown envelopes for insurers.

The police rang the atfault motorist the same

evening, and the next day I received an unsolicited call from a claims farmer citing a report that a vehicle had been involved in an accident at my location.

That inevitably posed the question as to how exactly the police and the claims farmers get hold of this kind of information.

The police involvement is explained under the heading of ‘emergency services’ – but while the various explanations cite ambulance and fire, none that I found mentions the police.

But it’s really the claims farming aspect that sticks in the mind, particularly when one of our November contributors spoke about insurers “feeding the hand that bites them.”

A confession: I put this latter issue on one side. A good journo should always dig deep when the opportunity arises, but being a chartered insurer can sometimes be a bit of a burden. Had I subconsciously buried the thought of insurers milking claims data? Perhaps because I already knew

what I might find? The excuse of pressure of existing commitments can be overdone sometimes.

Then eight weeks after the incident, the phone rang from another claims farmer. I could have suggested they were really on the ball ringing me two months (!) after the incident, but instead I took a different tack suggesting that whoever they were paying for these leads was ripping them off. I invited them to tell me how they acquire this information… but by then they had rung off.

Men of ACTion marvellous evening in October was spent in the company of Alan Clarke, Harvey Wetherill, and Andy Hawkes at a charity concert and dinner held in the Victorian Theatre sited on the Salomons Estate near Tunbridge Wells.

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Alan Clarke

Alan and Harvey were founders of the European Insurance Services (EISL) business back in 2006 along with several other exIndy friends, while Andy is well known to IP readers thanks to his regular risk management articles.

All three were ‘on duty’ at the Salomons event acting as trustees of the charity involved – the Alchemy Charitable Trust (ACT). The brainchild of Alan Clarke, the great thing about this charity is its ability to fill the gap. Where can unfortunate families and individuals go when faced with unexpected financial demands, pressure, or hardship having already exhausted

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their efforts without success through the usual charitable and State channels?

Alan Clarke: “ACT was founded to help families and individuals resident in West Kent or Sussex, who are already doing everything for themselves, but who despite those efforts - face an exceptional need for which they are unable to obtain funding from any other source.” See www.alchemyct.org And the concert? A jazz theme featuring the highly extrovert artists Ian Shaw and Liane Carroll, who on the night - between them must have covered every extremity of the human

voice box, and all those in between – sometimes as alternate lines in the same song! Ian’s rendition of Kate Bush’s Wuthering Heights ought to be on YouTube.

I asked Alan if I could round off this item with an update on his current activities following the sale of the EISL business, expecting that this would embrace the usual ‘retirement’ pursuits like his charity work, watching rugby, and the odd glass of Cloudy Bay wine.

But… surprise, surprise. It seems there are irons in the fire. All under wraps at the moment, but ‘watch this space’!

Affordable new products from SunLife

in association with:

Rebrand at SunLife his year has seen many ‘Opportunity & Threat’ boards in UK life insurance operations tipped sideways by the new pensions rules, with other slings and arrows homing in from outside without much warning.

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But then, one man’s threat is another man’s opportunity. That thought prompted a chat with Dean Lamble, MD of SunLife, following the June 2014 announcement in connection

Dean Lamble

with their expansion, rebrand, and in particular the launch of a range of straightforward, affordable new products to address the needs of younger everyday customers and families – including a new stocks and shares with-profits ISA which starts at £10 a month.

Dean believes the change of focus will cause a revolution in the provision of investment products, which the mainstream providers are not geared up for.

“Traditionally the industry has focussed itself on higher net worth individuals for investment products – and that’s something we’re going to change,” he says. “The market needs affordable new products that help people get into the habit of saving and investing, and thinking about their future.”

One of the market’s ‘elder statesmen’ recently told me that he believed the current returns for savers are so derisory as to stray into Theft Act territory! Dean doesn’t go quite that far, but agrees the poor savings returns have created a demand from customers for the opportunity to invest in products that can beat the market, and encourage longer-term saving.

“Customers are demanding the opportunity to invest in products that can beat the poor returns they are getting from holding cash in bank accounts, and to encourage longer-term saving.”

The July launch was part of a larger development that will see SunLife introduce a number of new products across life, health and general insurance, all

specifically designed for mass market direct to consumer distribution.

“There’s a real opportunity for the direct to consumer market in UK financial services to grow,” says Dean. “But it requires deep customer understanding and engagement, as well as products, processes and servicing designed for the direct model. Our approach will empower customers with clear information and enable them to self-direct without explicit advice.”

Research by Sun Life Direct reveals that 39% of the mass market currently have no savings, and 24% of those that do have less than £1,000.

Henderson celebrate fifth year he adjacent photo shows Emma Simkins (back row, second from right) and Jonathan Willett (back row, third from right) with some of their 40 staff.

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Stockton-based Henderson Insurance Brokers celebrates its five years in business on Teesside.

Founder Joe Henderson launched the office at George Stephenson Way, Stockton in 2009 with four employees, since when over £11m in insurance premiums in commercial and rural business has been placed.

DECEMBER 2014/JANUARY 2015 insurancepeople 5

market talk Insurance teams donate £20k to disability charity Smart meters on the march

Markerstudy pip Be Wiser in charity golf event mong many of today’s charity golf tournaments, the Simpson Cup in aid of the On Course Foundation encouraging disabled ex-servicemen to take up golf stands out because of its transatlantic embrace.

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In October Markerstudy Group and Be Wiser Insurance clubbed together to bid £20,000 in a charity auction for a place to transport an invited team of volunteers willing to cover their own flights to Washington DC to take part in a Ryder Cup-style charity challenge at the Congressional Golf Club where ex-servicemen from the UK and USA competed in the official tournament.

Gary Eggleton and Paul Copeland

‘Team Markerstudy’, led by group commercial director Martyn Holman and group business development manager Paul Copeland included Gary Eggleton (Connected Media), Ian Donaldson (Autonet), Leighton Wilcox (Insurance Collections Bureau), Allan Hunter (Midas Underwriting), Stephen Duffy (Ashgrove Insurance) and Brendan Devine (Sure Thing).

Martyn Holman

The above team were up against Be Wiser’s Mark BowerDyke, Nigel Taylor and Glyn Evans, along with Mark Cliff (Ageas), Phil Bunker (LV=), Douglas Young (Canopius), Darren Taylor (Flint & Co) and Mark O'Shaugnessey (Crusader).

Martyn Holman: “The On Course Foundation is an incredible charity supporting disabled ex-Servicemen restore self-confidence and a sense of purpose after injury.

We’re very proud to have supported The Simpson Cup in aid of the Foundation and hope to make this a regular partnership with Be Wiser Insurance to ensure that the great work of the charity continues. Thanks must go to all our broker and insurer partners who took part and were great sports. I think that it’s safe to say that both teams thoroughly enjoyed the trip.”

Aon Benfield launches smart meter drive he UK government energy initiative to smother the nation in smart meter systems nationwide by 2020 took a step in that direction last month. Aon Benfield completed an insurance placement to help facilitate the communications hubs that form an integral requirement of the smart meter system, to allow real-time transmission of energy usage data from homes and businesses to energy companies.

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The placement, underwritten by AIG on behalf of smart meter provider EDMI provides extended warranty cover for around 10 million communications hubs to be installed in homes and small businesses in Scotland and northern England over the next five years.

The AIG cover offers the 15-year extended warranty protection demanded by the UK government for the devices.

Kurt Cripps, relationship manager within Aon Benfield’s ReSolutions team says the placement proved challenging 6 insurancepeople DECEMBER 2014/JANUARY 2015

given that insurers generally limit extended warranty cover to five years. “The placement followed an extensive analysis of potential carriers, and we identified AIG as being the best-match capacity provider for this customised product.”

Dave Smith, vice president Kurt Cripps of personal lines within AIG’s property casualty division highlights the AIG history of supporting such product innovation. “We’re excited to participate in this nationwide initiative and offer the supplier EDMI levels of insurance cover that are far broader than the standard market offering. We hope that this product will encourage further innovation in the marketplace.”

Cathy Taylor goes ‘on the road’

in association with:

Two new apprentices at Henderson

New role for Taylor

Happy New Year!

he interview with Cathy Taylor of Ageas appears on page 8, and as part of our discussion I asked Cathy how she likes to spend her ‘downtime’ in her busy ‘on the road’ schedule.

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“Hailing from Birmingham and still living near my favourite City, for my sins, I’m a lifelong Aston Villa fan, but it’s too stressful to have a season ticket these days!

“I have a passion for travel, so while spending much of my time on the road visiting brokers and calling in on Ageas’s other commercial underwriting teams based in Manchester and London, I still find time for family and friends.

“The theatre is also a great delight. I’m a member of Malvern Theatre which has some amazing productions for a venue of its size. I fulfilled a ‘bucket list’ ambition in July this year and saw Cosi fan tutte at La Scala in Milan – it was amazing.

“I’m also a voracious reader, and am often found with my head buried in a biography or historical tome. I also love historical buildings and old churches and cathedrals. As an active member of both English Heritage and the National Trust, I’m lucky enough to live in a part of the country where there are some great places to visit.

“I hear that our household team get to underwrite some listed buildings, so I will be finding out a bit more about that area of our business!”

Cathy Taylor

here used to be a time when the ‘bumper’ Christmas & New Year issue of IP could dip into the year’s accumulation of various ‘spoof’ photos – often taken at embarrassing moments at functions and venues.

And there were usually plenty of them – the embarrassing moments, that is. But whether it’s because there’s been a dose of more sensible behavour, or everything is simply becoming more boring, the cupboard is bare.

Except for this ‘still-life’ taken a few years back at a Manchester BIBA Conference – sent in by an otherwise well-meaning reader.

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New apprentices at Henderson

Cathy Taylor joined Ageas in October 2014 having previously begun her career working for Norwich Union, CGU, General Accident, and Hibernian Insurance.

A Chartered Insurer and MBA, she joined Ecclesiastical Group in 2002 and was latterly the Gloucester-based company’s Group Strategy Development Manager.

She spent ten years with Ecclesiastical, where she held a number of roles, including a charity project when she became part-time interim CEO of a Cotswolds hospice, sponsored by Ecclesiastical, where she was able to gain an in-depth understanding of the sector.

In 2011 she was appointed as Managing Director of Ansvar Insurance, owned by Ecclesiastical, but on making the decision to leave Ecclesiastical to explore new opportunities, she worked with St Peters Hospice in Bristol where she held another interim CEO role and helped to recruit their permanent CEO.

Pictured with office manager Sonya Hunt (centre), Jordan Key and Haleema Parker recently joined the Hessle, East Yorkshire office of Henderson Insurance Brokers as local apprentices. Sourced through the Learning Skills Partnership, Jordan will train as a broker and Haleema as a claims handler, while both study for their apprenticeship in business administration Level 2 DECEMBER 2014/JANUARY 2015 insurancepeople 7

interview

Cathy Taylor HEAD OF COMMERCIAL UNDERWRITING AND OPERATIONS AGEAS

“

Trusting people to give their best

”

The news that Cathy Taylor, a familiar face to many brokers, had joined Ageas and was based in the commercial lines centre in Gloucester to manage that account was in line with Ageas ambitions to both grow while continuing to improve the combined operating ratio. The Editor caught up with Cathy recently to find out more

AN: Why Ageas? And why now at this point in your career?

CT: First, let’s just make clear, I started my career young! And just to illustrate that point, I was the first woman branch manager of an insurer back in the 1990s – that was at Hibernian Insurance, now owned

by Aviva.

Seriously though, it was an easy decision. This is a fantastic opportunity to be part of a really strong brand that genuinely cares about brokers and is highly respected by them. The role embraces operations and underwriting, as well as direct engagement with brokers – so all of this works as the perfect combination for me, and ensures I can bring my experience to bear.

AN: So you are ‘on the road’? What gets you up in the morning? What are your main goals?

CT: That’s easy, I want to take Ageas to the next level in the commercial market space, and build an even better reputation for quality of proposition and service. At the heart of this is building a reputation of excellence in the crucial e-trading space.

what they want - and not what we think they want. And to make this happen, I want to create a great working environment for our teams, who can then deliver the best service in the market.

frustrates me. I would love to change this perception, and believe Ageas is well placed to achieve this given its fantastic record of Awards and Institute of Customer Service accreditations.

It might sound corny, but I want to make a positive difference to the business, and will be quite tough on myself to make that happen.

Finding and nurturing talent is key, and I know that we have plenty of that in Ageas, including some who don’t even know it yet!

On a more personal level, I’ve been involved with the hospice movement for the past five years, and feel strongly that high quality palliative care should be made more easily accessible for everyone who needs it.

AN: So what are your immediate priorities?

CT: Where do I start? There are lots!

My initial focus has been on getting to know all my teams really well, and meeting as many key customers as soon as possible. I need to build trust on both sides, and the best way to start that process is face-toface so I have been covering a fair few miles.

AN: There must be certain things in this market that irritate you more than others? What gets you onto your soapbox?

CT: In the insurance sector, the reputation for poor service really

I’m also keen to collaborate with our brokers to make sure we deliver 8 insurancepeople DECEMBER 2014/JANUARY 2015

AN: I know from personal experience that improvement in service reputation is a tough one, particularly the in-house aspects.

How would you describe your management style?

CT: In my role as a manager and leader, I believe one of my key responsibilities is to give my teams the space to get on with their own jobs. My relationships are built on mutual trust, and in my experience, if you trust people to give their best, then that is what you normally get.

However, I think it’s fair to say, I do have some high expectations, so I will try my best to paint as clear a picture of what those expectations are.

There’s more about Cathy Taylor on page 7

pets

Pets at Christmas: Trick or Treat?

John Gibson has a Christmas message for all pet owners – Please, please don’t poison your pets this Christmas!

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hristmas is often a whirlwind of activity and excess, and overindulging in a little too much mulled wine, Christmas pudding, and the odd chocolate coin. It’s an annual tradition, but while most of us will lie groaning on the sofa with the Rennie’s to hand, the same tactic cannot be applied to our pets who have gorged on unsuitable treats.

Recent figures from Markerstudy indicate that ‘spoiling’ our pets can hold disastrous consequences for owners and the insurance industry alike, with a sharp increase in claims experienced industry-wide during, and immediately after the festive period.

Chocolate might be a treat for us, but many don’t realise that it is poisonous to dogs. The Zenith Insurance claims department saw

an increase in pet-related chocolate poisoning go up by 700% during the ten-day period last year, compared to the ten days immediately prior to this date.

One victim, an eight year-old Cockapoo, was poisoned by 100g of milk chocolate it was given.

After being rushed to the vet hospital and receiving treatment she fully recovered, but the bill came in at a whopping £581.

Raisins and other dried fruit also pose a potentially deadly threat to cats and dogs, making the odd bite of Christmas pudding the pet equivalent of playing Russian roulette.

Zenith figures from 2013 also showed seasonal incidences of kidney failure increase by 200% and a two-fold increase in undiagnosed vomiting.

www.ssp-wo orldwide.com

John Gibson HEAD OF PET MARKERSTUDY GROUP

So is it time for the industry to take charge and issue advice as part of their policy documentation? Or, if the trend continues, will we eventually see unsuitable foodrelated illnesses exempt from cover?

Of course people want to treat their pet at Christmas, and rightfully so, but we must raise awareness of these seasonal hazards and advise owners to use pet-friendly goodies from a reputable pet shop or store.

Limiting or removing access to potentially harmful situations will help ensure a happy festive season for owners, their beloved pets… and the insurance industry.

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“Everything is going up!”

The venues where the UK intermediary market would gather for annual shindigs were never as exotic, nay… romantic… as Monte Carlo, Baden-Baden, or Key Largo.

These views from the Reg Brown collection reveal how the Yanks used to do it… and probably still do.

Above is a 1968 card published by Provident Indemnity Life of Norristown, Pennsylvania. The caption on the reverse reads, “Arriving at Key Largo. Brokers, agents, Provident Indemnity officers, and their wives flew to Miami and bussed to the exclusive Ocean Reef Club for their 1968 Sales Seminar” Of course, there’s ‘exclusive’ and ‘exclusive’ – a comparative marker depending on the degree of exclusivity, as illustrated by the next card (right).

The reverse of this card above reads. “EVERYTHING IS GOING UP! Stocks, bonds, commodity prices and public optimism are going up, so I am ‘up in the air’ on my trip to San Francisco, where I am to speak before the ‘Million Dollar Round Table’ of which I have been a member for two years. Wishing you lots of California sunshine, Vic Pettric, Life Underwriter” Two clues towards dating this postcard. The first is that the Ford Trimotor aircraft was state-of-the-art in 1925. The second is more abstract, but nonetheless loud and clear – the reckless abandon of the sender means it must have been posted before the Wall Street Crash of 1929!

So if we guess at 1928, then the following year’s card from Mr Pettric would more likely have indicated that he was staying home, with the heading “EVERYTHING IS GOING DOWN.”

Left - no postcard collection would be complete without a Bamford!

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marketing

Never underestimate the power of PR

Elizabeth Holt puts the case for increased levels of communication in difficult times

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hese are interesting times for the insurance industry. As the burden of regulation grows ever heavier, and the pressure of competition ever tighter, budgets need to be cut to survive. And often, it’s the marketing budget which becomes the soft target.

Insurance is not alone in seeking to make economies in a challenging market. Unfortunately, the softest target within the wide marketing mix is the corporate communications and media relations programme.

Short term costs may well be saved, but corporate reputations and brand values built up over many years need continual and continuous support to ensure they maintain their standing.

Increasing numbers of companies and individuals are chasing business from both a dwindling, and increasingly sophisticated customer base. This is not the time to take any

measures that could weaken a company’s hard-won reputation.

Elizabeth Holt

dvertising and public relations are all too often lumped together, but the difference between the two is extremely significant - and all too often misunderstood by busy directors who are trying to focus on their business rather than marketing peripherals.

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Advertising - in whatever form it may take – “says “Look at us… we have great products, offer a great service, and are a great company.”

Public relations and corporate communications delivers a less flamboyant, but ultimately far more hard-hitting approach. It can leave current and potential customers with the message, “I have heard you have some great products. And your service is really good, and the company and its spokespeople

HOLT PUBLIC RELATIONS

have a very good reputation in the market.” That is worth investing in.

Every company will have a very clear idea on their target audiences, and probably an equally clear idea of the messages they wish to get across.

An array of communication channels can be used, and importantly tightly targeted. These could take the form of news releases, topical comment, by-lined articles, one-to-one journalist briefings, speaking opportunities or any combination of these and many other avenues.

Clear, concise, relevant and expert comment lies at the heart of any communications programme, and if that programme is delivered effectively it can help any company to both consolidate and grow its business.

DECEMBER 2014/JANUARY 2015 insurancepeople 11

telematics customer service

Adrian Coupland HEAD OF DATA STRATEGY SSP

Telematics: more than a pricing tool Adrian Coupland advocates telematics products which empower the consumer, rather than simply aiming at more affordable cover elematics has ceased to be the next big thing – that’s an unusual statement from a company which processes telematics data! But the fact is, the technology has well and truly arrived.

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In the 18 months from June 2012, the number of live telematics policies increased by 61% to 296,000 according to BIBA and analysts predict that 2.15 million such policies will be in place by 2015.

Nevertheless, there is still much to be done. Our own research indicates that 57% of motorists would either be willing to participate in a telematics scheme, or be interested pending further information and reassurance about how their data will be used.

This potential consumer demand presents opportunities, but also challenges. The pace of development in the UK has been so fast that some would already consider the black box ‘old hat’ and costly.

In this changing landscape, whilst there is a clear demand for insurers and brokers to push telematics products, it’s not clear how they can create a proposition that works for all consumers. It’s clearly not a problem the industry can simply throw money at. Based on our data, even for a yearly saving of £150, 29% of consumers are still unwilling to put up with a telematics product in their car.

The answer is a payment in kind. In return for their data, consumers and businesses want insights on how they can save money and stay safer.

SoteriaDrive, our own telematics solution developed in conjunction with Wunelli is a whole of market telematics solution that leads with app technology, but can also support black box or tethered devices.

Drivers receive a score of between 1 and 100 for every journey they make, as well as periodic feedback on how they can improve their driving. This feedback has been proven to improve driver behaviour as well as provide a regular customer engagement tool for insurers and brokers to use.

Put simply, telematics is more than an insurance product – it’s an enabler which allows insurers to provide more services than ever before, particularly when the features of an insurance policy are still the most important factor for consumers buying insurance.

As insurers look to adopt innovative technologies to develop products, and reach out to people through new channels, telematics forms a key component to realise their digital strategy.

Telematics forms a new route for additional real-time data enrichment, from driver behavioural data through

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geo-spacial/locational data to social media activity - particularly when offered through smartphones given their level of adoption and usage by individuals. he key is in understanding the appeal of telematics to different groups. There’s still a misconception that telematics is primarily a premium reduction tool for younger drivers, yet three out of five motorists over the age of 65 told us that they would be interested in telematics - a market which represents 4.5 million drivers.

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They often look for added services which incentivise good driving in other ways. For example, the gamification of telematics products has seen drivers competing to be the best, while telematics-based driver reports can offer motorists insights into fuel-efficiency, or how much wear and tear is being done to a vehicle - and therefore how its value is likely to depreciate over time.

In addition, breakdown and emergency teams can be sent automatically to the site of a crash and the police can even use GPS tracking data to recover stolen cars.

Products like this work because they empower the consumer. Insurers and brokers alike must pitch telematics as a tool for the driver, not simply the price for more affordable cover.

Alan Cleary

Bouquets & Brickbats – 2014 MOST MOSTADMIRED PROMISING INDUSTRY NEWCOMER: PROFESSIONAL: Gerry Loughney Stephen Lewis FAT CAT OF THE YEAR: Mark Hodges ROCK MOSTSTAR ADMIRED CEO INDUSTRY OF THE YEAR: PROFESSIONAL: Jon Dye Phil Hayes of 2direct ROCK STARFAT EXECUTIVE OF THE YEAR: Davey INSURANCE CAT OF THE YEAR: That Jonathan Hester chap - MOST you know, OVERDUE the bloke(NOT in fox-hunting AWARDED) gearKNIGHTHOOD with the sheepish OF THE YEAR: PROFESSIONAL OF THE YEAR: SELFLESS smile The inspirational Karen Rose Sir Robert Hiscox BABE 2013 MAGNET “REVOLVING OF THE DOOR” YEAR: AWARD: Jonathan Aviva Davey

DISTANT MEMORY OF THE YEAR: ANDY OF “Treating customers fairly”. A recent PWC report claimed IT-GIRL OF THE THE YEAR: YEAR: Homer Inga Beale that only 27% ofof customers insurance providers INDUSTRY WOMEN OF THE YEAR: Karen Rose of the Insurance Institute Reading trusted and Karen Cartridge of THE ANT AND DEC OF BRITISH LOSS ADJUSTING: (32% trusted retail banks) the Insurance Institute of Manchester Kieran Rigby and Mike Jones TOFF OF THE YEAR: Nick Starling, recently moved on to Downton 2014 “REVOLVING DOOR” AWARDS: THE “ON A HIDING TO NOTHING FROM DAY ONE” RSA; Towergate; QBE; Aviva again POSH TOTTY OF THE YEAR: Candy Holland AWARD, 2014: Mark Hodges CAFFE LATTE LIBERAL OF THE YEAR: Peter Staddon “BREATH OF FRESH AIR” OF THE YEAR: LUNACY OF THE YEAR: The 84-year-old Bernie BUNGLING DUNCES OF THE YEAR: HMRC; Homeserve Ashwin Mistry. Tells it like it is Ecclestone, in court on bribery charges, pays the court £60m, THE MOURINHO without admitting “THE guilt, SPECIAL and walks ONE” away AWARD: Branko Bjelobaba.

BEST INSURERS OF THE YEAR: John Lewis; Sainsbury’s; Tesco; M&S; Argos; Poundland MOST INEXPLICABLE CAREER MOVE OF THE and all half-decent charity shops CENTURY SO FAR: Andy Haste to Wonga “IDEAS ABOVE THEIR STATION” AWARDS: Nick Clegg; Bono; Tracey Emin; Russell Brand; Pippa’s mum; Pippa’s bum

FILM STAR GOOD LOOKS OF THE YEAR: Ian Ritchie - it says here PETROL-HEAD OF THE YEAR: Barry Smith

2014 “I’M TOO SEXY FOR MY SHIRT” AWARD: David Shaw. Runners-up - Lyndon Willshire, inventor of the coin-operated chastity belt, and Kevin Hancock, known throughout the insurance profession as “the special one” and the secret lovechild of Rab C. Nesbitt and Ann Widdecombe Finally, a few New Year Resolutions to be considered by chief executives l We will recruit more people from ethnic minorities and not just by moving our call centres overseas l We will cease trying quite so hard to cut our policyholders’ claims to a rock-bottom minimum

Happy Christmas!, dear reader

MOST ILLUMINATING (?) DANE DOUETIL OBSERVATION OF 2014: “Solvency II …. was a marvellous solution to nobody’s problem. After 2008, it was hijacked by the politicians and it has ended up an enormous waste of money” l

We will try much harder to win the public’s trust, having finally recognised that they view us as even dodgier than estate agents, MPs, local councillors, pimps, tattoo artists, personal injury lawyers, roofing contractors, house clearance people, car dealers, money-lenders and tabloid journalists Alan Cleary (Emeritus Professor of Urine Extraction, Warwick College of Further Educayshun) DECEMBER 2014/JANUARY 2015 insurancepeople 13

Who says insurance is boring?

Part Five

The late Malcolm Forbes-Wilson penned his remarkable insurance biography just before he passed away after a long illness in April 2014.

This month Malcolm enjoys another never-to-be-forgotten trip, and finds himself riding in a New York limo convoy complete with police outriders to meet a secretive aviation club called the QBs eing a non-marine broker, my next intervention into the aviation world came about during a chance meeting in the bar at the International Hotel at La Guardia International airport in New York. That’s where I got into conversation with a man recently appointed as the Federal Air Agency’s air safety officer for the north east USA.

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It turned out that, although the FAA provided cash for seminars for private pilots from that region, there were no funds available to pay for venue hire – that sponsorship had to be found elsewhere. immediately spotted the chance for a spot of free editorial, little knowing at the time that our aviation division (specialising in the insurance of major airlines, as well as space satellites) was about to run away from insuring privately-owned planes.

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Nonetheless I indicated that my firm might be interested in providing the required sponsorship, which involved a $1,000 24-hour rental of an empty hangar at JFK.

It sounded like a good idea at the time, and twelve months later provided a personal dividend of an unforgettable kind.

I returned to London, enthusiastically announcing that I was hoping Crawley Warren would supply the funds, which it reluctantly agreed to do - provided there was no publicity! (You can’t make it up, can you? Ed) en months later, a call from my FAA friend elicited the request for us to extend our sponsorship for the next seminar to $2,500 so they could hire sole usage of the aircraft carrier USS Intrepid berthed on the Hudson River as the centrepiece of the Intrepid Sea, Air & Space Museum.

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My firm agreed to fund the seminar at this venue on condition it was to be our final year, and that I should attend the event as a guest.

The big day I flew into JFK and my friend ushered me through immigration, and we agreed to meet the following afternoon in the lobby of the World Trade Center.

He picked me up and drove us to the heliport on the East River. There I learned that the guest of honour at the seminar was to be Lynn Helms, ex-President of Piper Aircraft Corporation and, as a direct appointee of Ronald Regan, the administrator of the FAA.

Charles Lindbergh with The Spirit of St Louis

Lynn flew in from Washington. We met him at the heliport from where we joined his cavalcade of stretch limos, complete with police escort outriders to smooth our way to the Marta restaurant in Greenwich Village.

14 insurancepeople DECEMBER 2014/JANUARY 2015

Malcolm Forbes-Wilson That’s where the Quiet Birdmen organisation were holding one of their regular meetings. Lynn Helms was a member of this secretive club of US male aviators, which was founded in 1921 by former World War 1 pilots that meet in various locations, never announced to the public.

The members, called QBs, included the WW1 flying aces Eddie Rickenbacker, Jimmy Doolittle, and the German ace Ernst Udet.

Membership was invitation only and members joined for life. s a guest of the club I was given a warm welcome and most unexpectedly presented with a signed print of Lindberg crossing the Atlantic at Dingle Bay entitled ‘Landfall’ painted by John T McCoy. Copies appear on ebay to this day.

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We left the restaurant with the police escort clearing the way to USS Intrepid. Lynn Helms had actually flown from this carrier in WW2. At the end of the event I returned to my hotel by cab, and flew back to London the following day.

A never-to-be-forgotten trip.

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

To be continued

Next time: Malcolm places the very first one million dollar golf hole-in-one prize

insurancepeople

News

Logistics LawPlan from Allianz Legal Protection llianz Legal Protection will provide legal expenses insurance and legal services for Jelf Insurance Brokers. Its newly designed product, Logistics LawPlan, is tailored specifically to the needs of hauliers, offering protection that is claimed not to be catered for by standard commercial legal expenses products.

This exclusive partnership is reckoned to

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be the first legal services proposition in the market aimed at specific sectors in the mid-corporate commercial market.

Logistics LawPlan allows operators to access specialist legal support as and when required.

Features include immediate access to a solicitor, updates on relevant statutory matters and the opportunity to discuss and agree wider non- insured or

fee paying services for the provision of legal representation irrespective of the issue.

Business development manager, David Vine, comments, “After identifying a gap in the haulage market for a sector specific product, we used our existing relationship with Jelf Insurance Brokers to design a new product to meet the day to day needs of the operators. This is the first of

David Vine

many sector specific products Allianz Legal Protection is looking to offer in the legal services market.”

Vitality revamps customer rewards

Increase of 4.2% in Amlin GWP

itality, the business formerly known as PruHealth and PruProtect, has announced a revamp of how it incentivises healthy living, and in the process launched rewards from British Airways and Starbucks, across its VitalityHealth and VitalityLife insurance lines.

The way in which Vitality members can take advantage of these benefits is changing, with two categories established: Active Rewards, where through exercising and tracking their results members can unlock rewards every week, and Status Rewards, from which members can benefit by improving their Vitality Status over time.

This means Vitality members will be able to benefit from:

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Status Rewards l Discounts of up to 40% on British Airways return flights to more than 70 destinations across the UK and Europe, including taxes and charges.

Active Rewards l A free drink from Starbucks for earning nine Vitality points on a weekly basis As part of the changes to the rewards model, the Cineworld and Vue ticket reward will become an Active Reward. Members now need to earn nine Vitality points in a week to benefit from a free cinema pass, as an attempt to inspire even more members to form healthier habits.

Vitality has made these changes following extensive research which found members respond positively when asked to undertake activity which results in rewards.

mlin's statement for the nine months to the end of September says that it has “ … continued to generate healthy returns despite the ongoing challenging trading environment, supported by its increasingly diversified nature and strong client proposition”.

Gross written premium was up 4.2% at £2,288.1 million (30 September 2013: £2,195.7 million). At constant rates of exchange, the increase was 9.9%. Growth includes income attributable to multi-year reinsurance contracts, and adjusting for the premium attributable to future years, growth at constant rates of exchange was 7.9%.

Average renewal rates were down 3.5% (30 September 2013: flat) and the renewal retention ratio

was 85.5% (30 September 2013: 86.5%).

Following the changes made to outwards reinsurance at the start of the year, net written premium increased by 8.8%.

Charles Phillipps, chief executive, comments, “We are pleased with our progress to date in 2014 and are confident that we can continue to deliver healthy returns for shareholders. Against a backdrop of intensifying competition as a result of increasing industry capital, we have successfully maintained underwriting discipline while making good progress in building a more diversified business which is better suited to meeting the challenges of the current environment.”

DECEMBER 2014/JANUARY 2015 insurancepeople 15

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News

Insurers “too slow” with new products R esearch released by Target Group reveals that three quarters (76%) of insurance marketing professionals believe that they are too slow taking new products or services to market and struggle to keep pace with everchanging consumer demands. These findings come as part of the launch of its ‘Four D’s of Insurance’ white paper.

They also reveal that more than three quarters (78%) of respondents believe that their insurance products should be more dynamic at adapting to changing consumer behaviour.

The survey of top UK insurance professionals also suggests that larger organisations are less likely to be able to get new offerings to market consistently and quickly.

This is highlighted by the fact that just 13% of large organisations surveyed feel they do this well enough compared with 23% of SMEs. A combination of the volume of launches, legacy product lines, legacy systems, complex structures and multiple sites are all major factors cited.

Target Group has commissioned the ‘Four

New $25m Lloyd's D&O facility hree of the largest US wholesale firms, CRC, AmWINS Brokerage, and Swett & Crawford have announced the launch of a new $25m public D&O program at Lloyd’s called the CAS Facility. The facility, which offers excess and/or Side A DIC coverages, is only available through those three wholesale brokers and will begin binding risks with effective dates starting on 1 December 2014.

Aimed at the North American market, the CAS Facility is an A-rated program backed 100% by Lloyd’s paper. Licensed and permitted in 87 countries, Lloyd’s features a geographical split uncorrelated from North

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American domestic capacity.

An additional layer of protection for CAS policyholders will also be provided by the Lloyd’s Central Fund.

Jason White, managing director, Swett & Crawford Professional Services Group, said, “The $25m dedicated capacity is bigger than most other D&O markets which typically offer $10m so it’s a more efficient way to place risk. Lloyd’s has written D&O since its inception and this facility is a great way for every retail broker in North America to access Lloyd’s.

Lloyd’s has built its reputation being committed to long term relationships with their insureds through many challenging times.”

16 insurancepeople DECEMBER 2014/JANUARY 2015

D’s of Insurance’ whitepaper to offer free and relevant insight to insurers on how to be successful and innovative in dealing with the significant challenges of developing products within the evolving insurance landscape.

John Miles, product manager, insurance at Target Group, says: “For an industry focused on future risks, insurance companies can be slow to adapt to future challenges. We are in the midst of an innovation wave driven by the four d’s of insurance dynamic products,

changing distribution patterns, the use of data and disruptive new technologies. For insurers, underwriters and distributors it brings the promise of both threats and opportunities. It offers the potential for new products and growth, aligned with greater customer insight, the ability to tailor products and pricing, as well as the prospect of radically transforming interactions between market participants.”

For a copy of the white paper, visit www.targetgroup.com.

Tesco Bank adds L&G to home insurance panel esco Bank has added Legal and General to its home insurance underwriting panel, to join the existing panel with Tesco Underwriting, RSA, AXA and Towergate.

Tesco Bank Home Insurance has a 5-star rating from Defaqto and offers unlimited building and £75,000 content cover as standard. All Clubcard customers receive a guaranteed Clubcard discount. Customers can tailor their policy to meet their needs by choosing from a number of optional extras such as home emergency and bicycle cover.

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Karl Bedlow, managing director, insurance at Tesco Bank, commented: “We are delighted that the addition of Legal and General to our home insurance panel will help us to offer more customers an even better deal on their policy. All of our panel of insurers are chosen because they help us offer comprehensive cover at a competitive price. We are continuously seeking to improve our insurance offer and we are pleased to welcome Legal and General to the Tesco panel.”

Markerstudy supports Cancer Relief Gibraltar

EPG launches Shepherd Compello

ancer Relief Gibraltar has received £10,000 from Markerstudy to contribute towards an oncology support nurse for their Cancer Relief Centre.

The OSN initiative allows patients who are receiving cancer treatment to have a nurse who monitors, advises and supports them throughout their treatment and recovery process.

Gary Humphreys, group underwriting director for Markerstudy, which has supported the charity for the last three years, recently handed the cheque over to Geoff Harding, trustee of the Gibraltar Society for Cancer Relief.

The donation will be put towards the continued employment of Kate Howarth, who has been

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working as an OSN since January 2013.

Marisa Desoiza, chairperson for Cancer Relief Gibraltar, said: “We could not do any of the vital work carried out by the charity were it not for the amazingly generous spirit of companies like Markerstudy; on behalf of all those who benefit from the services of our oncology support nurse, thank you.”

Gary Humphreys said: “We have been very proud to support Cancer Relief Gibraltar and pleased we have been able to contribute towards a new oncology support nurse for patients receiving cancer treatment. We hope to be able to continue to support the centre for years to come.”

Gary Humphreys (right) presents the cheque to Geoff Harding who is a non executive director of Markerstudy Group as well as a trustee of the Gibraltar Society for Cancer Relief.

PG Insurance Services has announced expansion plans with the launch of new Lloyd’s broking arm Shepherd Compello. The new broker will be based at 55 Gracechurch Street.

Shepherd Compello will broke a range of specialist services, including physical damage insurance, motor truck cargo, extended warranty and GAP, marine cargo, catastrophe exposed commercial property. and high value homeowner’s insurance.

EPG reports that it has “...ambitious growth plans serving the construction, automobile and agriculture industries using its network across all five continents to enhance its international brand with extended warranty and related products”.

Hiscox GWP £1,361.3m iscox Ltd GWP in the first nine months of 2014 was £1,361.3m, compared with £1,370.5m in the same period of 2013, “ … as a disciplined approach in reinsurance is offset by steady growth in insurance lines”, says Hiscox.

For Hiscox UK, GWP was £324.0m, compared with £312.8m.

Bronek Masojada, chief executive, comments, “Long term investment in our brand and in building our retail business has paid off as we continue to grow particularly in USA, London market and Europe, while we sensibly reduce our catastrophe reinsurance book.”

On rates, the company adds, “We are experiencing the same environment as everyone else in reinsurance; our portfolio is down 15% in USA and down 10% in international business. The contagion has only spread into insurance on big ticket property and energy lines. In other insurance lines, rates remain fairly flat with reasonable margins. We will walk away from business where rates and conditions are unhealthy.”

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Wishes you a Merry Christmas and thank you for all your support.

DECEMBER 2014/JANUARY 2015 insurancepeople 17

insurancepeople

News

Former Swinton executives fined and banned he FCA has fined three former senior executives of Swinton Group £928,000. The action follows previous enforcement action taken against Swinton: in 2013 it was fined £7.4m after it adopted an “aggressive sales strategy” that resulted in mis-sales of monthly add-on PA, home emergency and motor breakdown cover; and in 2009 the firm was fined £770,000 for failures in its sales of PPI. Peter Halpin (former chief executive) is fined £412,700 and is also banned from acting as chief executive of a financial services firm, while Anthony Clare (former finance director), who is fined £208,600, and Nicholas Bowyer (former marketing director), who is fined £306.700, are banned from performing significant influence functions at financial services firms.

Tracey McDermott, director of enforcement and financial crime at the FCA, said: “A culture was allowed to develop within Swinton that pushed for high sales and increased profit without regard to the impact on the firm’s customers. We expect firms to put customers at the heart of their business. These three directors should have recognised the risk to customers and redressed the balance so that the

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drive to maximise profits did not jeopardise the fair treatment of customers.

“Those with significant influence within firms are responsible for setting the tone and the culture; they set the example that others will follow. Today’s enforcement action should serve as a timely reminder to those at the very top of firms that the FCA is determined to hold individuals to account where they fall short of the standard we require.”

The FCA has found that a sales-focused culture in Swinton was encouraged

by Clare and Bowyer driving a business strategy that was designed to boost the firm’s profits in 2011.

“The three former directors did not recognise the risk of this culture developing or take reasonable steps to prevent it”.

Swinton’s participating directors (including these three directors) stood to gain a bonus of approximately £90 million under the directors' share scheme if operating profits reached £110 million in 2011. Halpin, Clare and Bowyer would have benefited significantly under the scheme had these results been achieved.

All three former directors settled at an early stage of the FCA’s investigation and therefore qualified for a 30 per cent discount on their fines.

18 insurancepeople DECEMBER 2014/JANUARY 2015

First Central joins BIBA aywards Heath-based personal lines motor broker First Central Insurance Management has joined BIBA. Steve White, BIBA’s chief executive, says, “We are delighted to welcome First Central Insurance Management Ltd into membership and we look forward to working together on the important issues around motor insurance.”

Andy James, CEO of First Central Insurance Management, comments, “This is an exciting time for us as we continue to see extensive growth across the business. It’s great to be recognised by BIBA for this growth, the quality of our customer offering and our ongoing work to reduce

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fraud in the industry. We’ll be working closely with BIBA in the future, offering our expertise on key issues and supporting the development of the industry.”

Among First Central's recent industry awards are: Counter Fraud Initiative of the Year - Personal Lines, and Young Fraud Investigator of the Year, at the Insurance Fraud Awards 2014; Employer of the Year at the 2014 Gatwick Diamond Business awards; and shortlisted for a number of Technology and Marketing awards.

The company joins with immediate effect, representing around 500 members of staff and over 300,000 customers.

Tokio Marine Kiln at “Walkie Talkie” building iln and Tokio Marine Europe have sealed their union by formally rebranding as Tokio Marine Kiln. The newly combined business, formed in January this year, is now headquartered at the “Walkie Talkie” building, 20 Fenchurch Street, London, EC3M 3BY. Group CEO Charles Franks comments, “As Tokio Marine Kiln, we will fulfil our clients’ needs by offering a broader range of products and services, significant financial strength, an empowered talent pool and greater flexibility through having both a Lloyd’s and Company platform.

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“Kiln and Tokio Marine Europe were built on the strength of our people, relationships and underwriting expertise underpinned by shared values. We take these forward as Tokio Marine Kiln and will continue to focus on being a good company and serving the needs of our clients.

“Uniting Kiln and Tokio Marine Europe under a single brand enables us to capitalise on the global scale and financial strength of our parent, one of the largest insurance groups in the world, at a time when scale, distribution and relevance are critical differentiators.”

Organic growth the top factor in technology investment survey of more than 100 insurance professionals at the Applied Net 2014 conference in Orlando, Florida, is reported

by Applied Systems to have shown that organic growth is the top factor (55% of respondents) in driving independent agency and brokerage technology investment. Other principal factors are: changing customer demand (54%) and competition (48%).

“Digital technology is driving fundamental and rapid shifts in consumer behaviour, and changing demographics, including the economic and professional arrival of the

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millennial generation, are only accelerating this shift,” said Reid French, chief executive officer, Applied Systems. “This survey further showcases the growing appetite for advanced technology solutions from agencies and brokerages to strengthen their competitive position, organically grow their businesses, and better meet expectations for multichannel engagement – anywhere, anytime – from today’s insurance consumers.”

Applied Systems also reports that 60% of respondents indicated agency or brokerage

management system updates as the highestpriority technology investment area, and that, in line with the need to meet changing consumer demand, 47% of respondents indicated online client self-service as a top technology investment area, with 37% citing mobile technology as a top investment priority.

“Data growth and availability continues at an exponential rate, which is creating a wealth of untapped information that can deliver new insights into business operations, potential new markets, client retention and business

opportunities,” said Michael Howe, senior vice president of product management, Applied Systems. “These findings clearly demonstrate growing agency and broker interest in business intelligence applications to improve business operations and ensure the greatest level of staff productivity. Additionally, the implementation of business intelligence applications will quickly deliver the insights desired by agency and brokerage executives to extend current client portfolios, as well as identify new geographical markets to further expand their client base.”

No.1 in the handling and disposing of motor vehicles The handling and disposing of motor vehicle salvage is a constant drain on financial and administrative resources. HBC reduce this by providing an unrivalled service. We are prompt, efficient and fully in accordance with current industry guidelines and environmental legislation. We also require only minimum administration to collect and dispose of your vehicle salvage.

With continued investment and systems development we are able to set the standards that others struggle to achieve. We are the safest hands in salvage.

HBC Vehicle Services, HBC House, Charfleets Road, Canvey Island, Essex SS8 0PQ

www.hbc.co.uk 01268 696444 Fax: 01268 510087 Email: info@hbc.co.uk BRITISH VEHICLE SALVAGE FEDERATION

DECEMBER 2014/JANUARY 2015 insurancepeople 19

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Chase Templeton backs Rovers' medical team P rivate medical insurance specialist Chase Templeton is to sponsor the six-strong squad of medics and physios at Blackburn Rovers.

Club doctor Amit Pannu and head of sports medicine Dave Fevre will now wear Chase Templeton branded kit as they tend to injured players on the pitch. The stretcher at Ewood Park will also bear the logo of the company. In addition fans will be kept informed of injured players’

progress through sponsored updates in matchday programmes.

Warren Dickson, chief executive officer of Chase Templeton, says, “It’s an absolute privilege to be able to support Rovers, a club which lies right at the heart of the community here in Blackburn. We hope this sponsorship deal is just the first of many as we look to develop a deeper, long term relationship with one of the country’s oldest yet most forward thinking clubs.”

Pictured left to right are: Blackburn Rovers manager Gary Bowyer; head of sports medicine Dave Fevre; Chase Templeton CEO Warren Dickson; and Rovers defender Tommy Spurr.

Markel reports underwriting profits

Markerstudy retail appoints Premium Credit

arkel Corporation has reported book value per common share outstanding of $514.06 at September 30, 2014, up 8% from $477.16 at December 31, 2013.

Comprehensive income to shareholders was $36.5 million for the third quarter of 2014 compared to $144.4 million for the same period of 2013. Comprehensive income to shareholders was $517.4 million for the nine months ended September 30, 2014 compared to $253.0 million for the same period of 2013.

The combined ratio was 97% for the third quarter of 2014 compared to 96% for the third quarter of 2013.

Diluted net income per share was $5.30 for the quarter ended September 30, 2014 compared to $4.67 for the third quarter of 2013. Diluted net income per share was $14.21 for the nine months ended September 30, 2014 compared to $15.33 for the same period of 2013.

Alan I. Kirshner, chairman and chief executive officer, commented, “During the third quarter and first nine months of 2014, all three insurance segments achieved underwriting profitability. We remain focussed on disciplined underwriting despite increasing competition in the marketplace, most notably in reinsurance. In addition, we completed the acquisition of Cottrell in the third quarter adding it to the Markel Ventures portfolio of companies and we continue to look for profitable growth opportunities.”

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20 insurancepeople DECEMBER 2014/JANUARY 2015

remium Credit has been appointed by Markerstudy‘s retail division – which includes brands such as The Insurance Factory, Lancaster Insurance, and BDML Connect -- as its premium finance partner.

The integration of Premium Credit into Markerstudy’s proposition aims to make it easier for customers to budget for the cost of motor cover, as well as reduce the administrative burden on the business operations.

“The innovative ‘My Premium Credit’ portal, which enables customers to access their credit agreements 24/7, was one of the key reasons we chose to work with Premium Credit”, says Russell Bence, managing director of retail at Markerstudy. “Not only

does this enhance the service experience for our customers – giving them a better way to budget for their motor insurance cover - but it will significantly reduce the administrative burden on our operations, enabling us to focus on growing our already strong customer base and improve profitability.”

“We are extremely proud to have been chosen by Markerstudy as its premium finance provider”, adds Simon Moran, chief marketing officer at Premium Credit. “We are looking forward to working with the business to help make its operations even more efficient, whilst enhancing the overall customer service proposition.”

Allianz GWP £1,640.9m in third quarter or the third quarter of 2014 Allianz Insurance reports GWP up from £1,459.7m in the third quarter of 2013 to £1,640.9m. Pre-tax profit was £117.2m (£128.7m) and the combined ratio was 96.9%, against 95.7%.

Commercial business produced GWP of £805.1m (£763.1m) and a combined ratio of 94.2% (97.0%).

Retail business GWP was £836.5m (£696.6m) and the combined ratio 100.2% (94.5%).

Chief executive officer Jon Dye says,“I am pleased to report that the company’s performance to

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the end of the third quarter is in line with our strategy to profitably grow the business. To emphasise this point, our combined ratio stands at a very healthy 96.9%, we have grown our revenue by 12.4% compared to this time last year and we have approximately 200,000 more customers than we had at the start of the year.

“We believe that in order to be a successful company it is important to put our customers at the heart of everything we do and to improve our processes based on customer feedback. Net

Promoter Score (NPS) is a globally recognised measure of customer service and we carry out this research amongst brokers every year.

“This year’s NPS results have confirmed that we have retained the top position with brokers for our engineering and retail businesses. In addition, we have widened the gap as the number one provider between ourselves and our key competitors in commercial.

“I would also add that the results of our NPS research are in line with other market feedback

Jon Dye

which is helpful validation of our own research.These results demonstrate the sustained nature of our positive reputation with brokers for our products, services and the quality of our people.”

Fitch downgrades Towergate IDR itch Ratings has downgraded Towergate Finance plc's Long-term Issuer Default Rating (IDR) to 'B-' from 'B' and placed the rating on Rating Watch Negative (RWN).

Towergate's senior secured notes due 2018 have been downgraded to 'BB-'/'RR1' and senior notes due 2019 downgraded to 'CCC+'/'RR5'. They have also been placed on RWN. The agency comments, “The downgrade and RWN reflects growing uncertainty concerning

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Towergate's ability to improve short-term operational cash flow and maintain sufficient liquidity moving into 2015. Free cash flow has remained under sustained pressure during 2014, primarily due to costs incurred as part of the group's strategic reorganisation.

Organic revenues declined in the third quarter of 2014 while Towergate's ability to grow through acquisitions looks increasingly challenged, given the limited sources of capital available to the company.”

Warmest Christmas wishes from yourr helpful insurance partner. commercialexpress.co.uk DECEMBER 2014/JANUARY 2015 insurancepeople 21

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News

SSP/Prestige provide non-standard home cover SP is partnering with Prestige Underwriting to make non-standard Coverall home cover available through the SSP Keychoice network.

SSP’s Coverall Keychoice Household product provides coverage for nonstandard buildings, including those with an adverse claims history, high risk occupation or extended unoccupancy, or

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that are listed, converted, affected by subsidence and flooding, or linked to individuals with criminal convictions.

Jonathan Davey, managing director, Keychoice and Corporate Partners, says, “Our members can now offer their customers cover against a whole range of perils, such as subsidence and flooding, as well as for a greater variety of building

structures, while benefitting from enhanced covers and bespoke rating with exclusive discounts.”

Gillian King, property underwriting director at Prestige adds, “Partnering with SSP’s Keychoice network broadens our distribution reach to homeowners via the intermediated channel.

Due to the proven track record of Keychoice members in delivering good

Jonathan Davey

quality, profitable business, this is a fantastic opportunity for us.”

DWF wins appeal against hearing loss claim

RSA reports “good progress” in re-structure

ational law firm, DWF LLP, has successfully challenged an industrial noise induced hearing loss (NIHL) claim on behalf of its client, the Department for Transport, against a former railway employee who claimed to have impaired hearing after working at the British Rail Engineering works in Crewe.

The Court of Appeal handed down its judgment in the case Howard Platt v BRB (Residuary) Ltd rejecting the claim on the basis the claimant had ‘constructive knowledge considerably earlier than the three year period of bringing proceedings against his employer’. The Court of Appeal re-examined key prior cases and the operation of the Limitation Act 1980.

Helen Elsworth, partner in the occupational health insurance team at DWF, who acted for the Department for Transport which inherited the

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liabilities for BRB (Residuary) Ltd after it was abolished on 30 September 2013, said: “Industrial disease claims for NIHL are rapidly increasing and this judgment could assist in deterring unmeritorious claims in the future. This area of disease litigation is a constant source of controversy despite the growing body of case law giving reasonably clear and robust guidance on how section 11(4) and Section 14(3) of the Limitation Act 1980 should be applied.

“Those defending NIHL claims are often faced with GP notes littered with references to tinnitus and hearing problems over many years before a claim is brought. The burden is on the claimant to show he had neither actual knowledge or ought not to be imputed with constructive knowledge and the threshold is reasonably high, as is made clear throughout this judgment.”

22 insurancepeople DECEMBER 2014/JANUARY 2015

n interim management statement on the third quarter of 2014 from RSA Insurance Group reports: “Good progress continues across RSA’s restructuring actions to achieve strategic refocus, capital strengthening and cost reduction. Headline Q3 profit strong due to disposal gains. Q3 underwriting result weak overall. Premiums down 9% (down 3% underlying) in line with H1 trends and guidance.”

Stephen Hester, RSA group chief executive, commented: “The building blocks to support RSA’s recovery are coming together. Since H1 we announced new disposals in Singapore, Hong Kong, China and Italy. The disposals of Noraxis, and our businesses in Poland,

Lithuania and Estonia have completed, booking strong gains.

“Our capital position strengthened further through these disposals, and a £400m subordinated bond issue in early October underlined RSA’s credit improvement. We are progressing well in the areas of cost reduction,underwriting actions and refreshing our management line-up.

“Overall, work continues towards meeting the medium-term performance targets we have set. Soft insurance and investment market conditions and a conservative outlook for prior year profit emergence seem likely to put even more emphasis on improving underwriting and cost re-engineering, which will take time to have full effect.”

“Steady performance” from Charles Taylor harles Taylor plc reports, in a trading update, that “ … the performance of the group has been in line with the board's expectations”.

David Marock, group CEO, comments, “We are pleased with the group’s overall steady performance.

Whilst the unusually low level of large insured claims across the market has affected our adjusting services business, our strategy of investing in new

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adjusting offices and senior staff puts us in a strong position to benefit when insurance claims return to more normal levels. Our management services business has delivered a good performance alongside the much improved performance of our insurance support services business. This demonstrates the resilience of our diversified business model.”

Novae GWP up 6% or the period ended September 30, 2014, Novae Group reports gross written premiums up 6% to £515.1 million, with “ … strong new business growth in targeted specialty classes”.

Group chief executive Matthew Fosh comments, “Good new business growth, active capital management

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Online flats comparison from Deacon pecialist blocks of flats insurance broker Deacon, part of the Arthur J. Gallagher group, has invested more than £65,000 creating DEACONlink, its first online quote and buy website for smaller blocks of up to 20 flats.

“DEACONlink is fast and easy to use,” says Nigel Feast, managing director of Deacon. “Benefits include the instant and simultaneous display of premium prices from three insurers, quotes by email for fast comparison and all the convenience of 24/7 availability, plus the backing of Deacon’s personal service for enquiries, administration and claims - not a call centre.”

DEACONlink policies are designed for blocks of flats where the directors of a residents’ management company manage the block in accordance with the requirements of the lease and on behalf of fellow leaseholders.

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and disciplined underwriting has allowed us to build on the positive momentum gained in the first half of the year. This focus, in addition to another quiet period for catastrophe events, leaves the business in a strong position for the final quarter and going into 2015, despite the softening pricing environment.”

Challenges unresolved for small businesses imply Business, which specialises in insurances for micro-businesses and sole traders, reports that its recent survey shows that 95% of the UK's 4.9 million SMEs fall into the micro-business/sole trader category and that 56% of the 2,000 micro and small businesses surveyed believe that both local and central government are out of touch with the issues that matter to them.

When asked about their biggest challenges, petrol costs ranked the highest (60%), with utility costs also amongst the top four concerns, alongside business rates and tax. For example despite the government’s well-publicised Red Tape Challenge, a third still believed that changes to red tape had hindered their business (33 per cent).

Additionally, the majority believe policy changes to

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export (81 per cent), childcare (77 per cent) and employment laws (69 per cent) have made no impact on their business.

Simply Business has outlined five recommendations for key influencers and policy makers to consider in a bid to improve the landscape for this part of the economy: 1.

The establishment of a Minister for Micro-business 2.

A reduction in the small profits rate of corporation tax 3.

A further increase in the rate of mileage tax relief 4.

The extension and enhancement of the government backed growth voucher programme 5.

Further funding for, and clearer sign-posting of, a local authority business support.

DECEMBER 2014/JANUARY 2015 insurancepeople 23

insurancepeople

News

New mobile app from FCA warning on financial crime risk QuestGates T L oss adjuster QuestGates has launched a new mobile app called QUBEGo which aims to deliver “ ...huge efficiency savings in all areas of its business, speeding up the claims process for insurers and claimants as well as improving the customer journey”. The app is being rolled out across all divisions of the business.

The mobile app gives QuestGates’s adjusters a live version of its claims management system. It will provide them with a tool to support their field visits and allows more information to be captured on site and uploaded to the system within minutes of leaving, including site notes, statements, photographs, video footage and reserves. It will also allow adjusters to obtain documentation, complete signature recognition and make settlements on site.

Greg Laker, director, QuestGates, comments: “Mobile technology has the potential to have a significant impact on our business. QuestGates is well recognised for delivering excellent service and value to our clients but we are always looking to find innovative ways to improve efficiencies to benefit our clients. The launch of QUBEGo will deliver significant benefits to us, our clients and claimants, and forms part of a roll out of a number of IT developments that QuestGates has invested in this year to further enhance its service, including the launch of QUBE our new claims management system.

“Technology cannot and should not replace rigorous field visits. We pride ourselves on our personal service and so our investment in the latest technologies will support site visits and enable us to provide our clients with a speedier service without compromising on the quality or the quantity of the information gathered on site. We feel that video footage in particular will significantly enhance our liability and major loss products enabling our clients to have a better feel and understanding of the claim.”

24 insurancepeople DECEMBER 2014/JANUARY 2015

he FCA has found that many small banks and commercial insurance intermediaries fail to manage financial crime risk effectively. The two reviews published on November 14th follow related work by the FCA’s predecessor on banks in 2011 and intermediaries in 2010.

While the reviews found some firms had made good progress in addressing areas of weakness and saw examples of good practice, there were significant shortcomings at other firms.

The FCA has proposed further guidance for all firms to ensure that expectations are clear.

Tracey McDermott, FCA director of enforcement and financial crime, says, “Firms must take their responsibility to reduce the risk of financial crime seriously.

Significant improvements are still required in this area.

“To do that successfully requires firms to use their judgement and common sense. That is not about box ticking or wholesale derisking. It is about firms getting the basics right – understanding their customers, the risks they pose and managing those risks proportionately and sensibly.”

Following reviews of ten commercial insurance intermediaries and 21 banks, the FCA found: “ … significant and widespread weaknesses in most banks' anti-money laundering systems and controls, and in some banks' sanctions controls”; and that “ … most intermediaries' controls failed to manage bribery and corruption risk effectively”.

Fitch maintains rating coverage on Zurich itch Ratings says it is maintaining rating coverage on Zurich Insurance, following feedback in response to its proposed withdrawal of the ratings.

On 3 October, Fitch had announced its intention to withdraw the ratings on Zurich Insurance after a 30-day period for commercial reasons. The 30-day notice is designed to allow market participants to provide Fitch feedback on proposed withdrawals.

Fitch has reviewed its previous intention to withdraw ratings coverage of Zurich Insurance, and opted to continue coverage until further notice, after several prominent and influential users of insurance ratings expressed their desire for these ratings to be maintained.

Fitch currently rates Zurich Insurance Company's “Insurer Financial Strength” rating at 'AA-'; stable outlook.

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Five-star rating for Gadget Cover adget Cover has been awarded a Defaqto 5-star Rating for its mobile phone product. The company says that factors earning the rating included its protection for mobile phone accessories up to the value of £150, and replacement accessories up to the same value if a gadget is replaced with another make or model. Other benefits include reimbursement of calls made following a phone being lost or stolen up to the value of £2,500 and worldwide cover at no extra cost for up to 90 days.

Amanda Kerry-Wallington, operations director for Supercover, which owns the Gadget Cover brand, says, “We’ve worked hard to differentiate our product by offering unlimited claims, free online data back-up and a ‘no claims bonus’ leading to reduced excess fees if a claim isn’t made. We’ve really got mobile phone insurance covered, and we’re delighted Defaqto has recognised this too with its 5 Star Rating.”

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CGSC announces new identity ooper Gay Swett & Crawford (CGSC) has announced the renaming of its London market brokerage businesses in advance of its 50th year of trading. From 1 January 2015, CGNMB LLP will become the single united brand that combines Lloyd’s brokers Cooper Gay & Company Ltd and Newman Martin and Buchan LLP (NMB).

Gordon Newman, CEO of Cooper Gay & Company

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Ltd and NMB said: “During the course of 2014 we have been working to bring Cooper Gay and NMB together and merging the two brands is a natural next step for us to take. We will be writing to our clients to explain in more detail how we are bringing this change about. I believe that the new name reflects the successful integration of the two predecessor businesses and we are all looking forward to being part of one business with one identity.”

Aon targets ultra high net worth life market on Benfield has announced the launch of an insurance product that aims to close a gap in the life and health global protection market.

Developed by the firm’s ReSolutions team and Aon Private Clients, the product allows ultra high net worth (UHNW) individuals residing outside of the UK to access high levels of life insurance cover by increasing the size and geographical scope of their life insurance limits.

Through the expansion of life insurance limits, the product can be used to mitigate the exposures on UHNW individuals’ UK interests – such as property.

Andrew Matson, managing director of Aon Benfield ReSolutions, says, “Where UHNW international life cover had traditionally been very scarce, this new product provides a stable and long term solution to Aon clients. ReSolutions worked with Aon Private Clients to access capacity within both Lloyd’s and the reinsurance markets where large premiums and limits are commonplace. Through Aon Private Clients it

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was possible to identify a number of key sources of distribution, which enabled us to appraise the size of the target market and quantify insured needs.”

DECEMBER 2014/JANUARY 2015 insurancepeople 25

On the move Who’s going where?

BMS

Paul Kerner

HISL Paul Kerner is appointed as a director of the board for Heritage Insurance Solutions (HISL) in London. With over 20 years’ professional risk experience he worked for 12 years at James Hallam Insurance Brokers, latterly as professional risks director, followed by Miller Insurance in a similar role.

BMS Group appoints Andrew Hitchings as managing director of its newly launched specialty reinsurance division. He joins from Cooper Gay where he was managing director of the reinsurance division and later took responsibility for all classes worldwide as CEO.

The Floow Telematics organisation The Floow appoints Claire Sargeant to manage the firm’s Direct Line Group telematics contract.

Formerly the UK business development manager at Octo Telematics, she spent four years at Hastings Direct.

Cunningham Lindsey Cunningham Lindsey appoint Brian Croll as customer service consultant, based in Glasgow. He joins from Marsh, where he was claims executive. He previously held senior management and business development roles with both Crawford & Co and Aviva.

Simon How joins as global specialty markets director. He was previously a senior manager at Lloyd’s, responsible for Lloyd's claims strategy, including leadership of the Claims Transformation Programme (2011-2014). Prior to that, he spent seven years working in claims consultancy for PWC and EY.

Brian Croll

Simon How

26 insurancepeople DECEMBER 2014/JANUARY 2015

Erin Pugh

Camille Le Long

Commercial Express Commercial Express appoints Erin Pugh to its commercial combined team, having previously worked for Zurich for three years on their commercial combined facility.

Camille Le Long joins the liability team. With over seven years’ experience, she previously worked at AXA on renewals and new business accounts. Her speciality lies with construction and higher risk trades.

Barbican Barbican Insurance Group appoints John Sawyer as underwriter to lead property binders within the firm’s international property division. Most recently, he was a property binding authority underwriter at Faraday Syndicate 435, having originally joined them in 2003. His 30 years’ experience includes broker/ underwriter at MD Jensvold, and underwriter for property/casualty binding authority business at Sphere Drake (Odyssey Re). He began his insurance career at JL Dodson Syndicate 660 in 1985.

Markerstudy After a 40-year career Markerstudy group retail operations manager Mervyn ‘Merv’ Vaughan retires. He joined Markerstudy in 2007 when he sold his own business to the group.

Promoting from within, Carl Mannion steps up to the role of retail head of operations.

He started his career at Thames City over 25 years ago, where he managed regional offices and held sales manager and customer services

Mervyn Vaughan

manager positions.

Following Markerstudy’s acquisition of Thames City and The Insurance Factory in 2009, Carl was appointed broker software manager for retail.

In association with

VEHICLE SERVICES Collection, storage and sales

Hood

Argo

Hood Group appoint Alison Haines as the new group-wide role of head of sales, joining from AXA after four years leading an account management team responsible for travel insurance solutions to partners including American Express, the CoOperative and Endsleigh.

With 14 years’ experience, her career includes roles at Royal Bank of Scotland and Tesco Compare where she was responsible for home and motor.

Argo International appoints Ewelina Kudla as marketing and distribution manager from Chaucer Syndicates where she was production and business development analyst. Prior to this, she spent seven years at Antares in development and marketing.

Alison Haines

Open GI Open GI appoint Sara Noble as commercial product specialist.

Joining from Central Insurance Services, she previously worked as operations manager at Castle Cairn, and as a commercial account handler with Willis.

Sara Noble

Robert LaLonde

InsFocus BI specialist InsFocus Systems appoint Robert LaLonde as senior account executive responsible for business development in the US market. He joins from Insight Decision Solutions where he was vice president and senior account executive. Previously, he was senior vice president at Applied Quantitative Solutions.

Before that he held leadership roles at SS&C Technologies and PolySystems. He was also a team leader in the actuarial insurance practice at KPMG.

Ewelina Kudla

Drivestyle Insure

Autonet

Telematics-based motor insurer Drivestyle Insure appoint Nick Spence-Thomas as operations director. He joins from AXA where he was head of motor claims, was previously head of operations at the AA, and spent 15 years in management roles at Barclays.

Autonet Insurance appoints Tony Way as its new director of operations. He joins from Ageas Retail where he was director of aggregator & products.

His 25 years’ experience includes being managing director of Express Insurance between 2008– 2011.

LV= Anna Peak, previously head of marketing for LV= Broker, is now promoted to the newly created role of broker marketing director.

With 18 years’ experience, she joined Highway Insurance in 2003 (later acquired by LV= in 2008) and before that worked at Fortis Insurance as a senior marketing officer.

Pushpa Sriwignarajah

Linda Naili

Markel Markel International appoints Pushpa Sriwignarajah as senior underwriter in its professional and financial risks division. Joining from CNA Insurance where she was senior underwriter for technology and cyber risks, she held the same role at Chubb Insurance Company of Europe.

Linda Naili joins to help grow the Asia Pacific trade credit book based in Singapore. Her 10 years’ experience as a credit risk analyst includes time at GE Capital in Paris.

DECEMBER 2014/JANUARY 2015 insurancepeople 27

by Andrew Newman

Don’t get mad - get even!

in association with:

“Why is my office so steaming hot!... get the engineers in!” his harangue, delivered by an exasperated 1990s life office branch manager at his chief clerk, derived from an eccentric character this column has met before.

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‘Whole-week Eric’ (as he became known after the incident about to be related) was a manic blend of John Cleese and Patrick Moore.

He was a first-rate salesman, but finds himself promoted out of his depth, and expected to run a branch office in London’s West End. Absent minded, socially inept, and saddled with a brain that never stops buzzing, it’s no surprise he often fails to see the bigger picture. In other words, the classic British eccentric.

His promotion made commuting a whole new science, and one that was proving difficult to master.

Last year’s commentary (Insurance People, November 2013) explored among other eccentricities his visits to the railway lost property office, and regular diversions to recover one item, only to mislay another – in the same lost property office!

Also his complete inability to delegate, which went

alongside his lack of normal office tact. His double booked appointments (and once even a triple! faux pas) were legendary.

His accent was distinctive, best described as ‘whiney’.

The pitch rose the more excited he got, and it had a transatlantic twang, with a trace of Aussie, but coupled with the Scottish habit of turning a statement into a question. “Hamish, do you not think it would be better to do it my way?”

As one staff colleague recalls, “Genial giant comes to mind upon meeting Eric for the first time. Eccentric is another term you would employ the more you got to know him. Working with him was another experience altogether.

“Most irritating was his habit of ‘latching on’ to individual members of staff and smothering the unfortunate person with a stifling enthusiasm for whatever Eric regarded as commercially vogue at that moment in time.

“Each of these subordinates would have to withstand the intensity of this focus until, thank God, the time came when he would ‘move on’ to the next poor soul. During this period, your life was not your own.”

28 insurancepeople DECEMBER 2014/JANUARY 2015

One of Eric’s ‘victims’ – Hamish, a tough Glaswegian consultant refused to be bullied in this way. In the early stages of their association he would exclaim in his flinty Scottish accent, “For heevens seke Eric - what ah mun you are!”

Revenge is sweet It was summer and Eric was away on vacation – leaving the office to enjoy a more hassle-free environment. By chance, the workplace was infiltrated by a freelance saleswoman selling plants, and staff were happy to buy some greenery out of their own pockets to cheer the place up.

A few days later, people became aware of some ‘immigrants’ that had taken

up residence – very small black flies. Early morning all was still, but as the office warmed up with bodily presence, these mites began to take flight. “One moment you would be on the phone, and the next find yourself wildly gesturing as if practising semaphore, to prevent an invasion of face and hair,” remembers one staff member. “We later called it ‘the Eric handjive’.”

Suspicion turned to the newly installed plants. Sure enough, an early morning inspection revealed masses of the blighters under the leaves, revving up for another ‘Eagle Day’ attack.

But rather than chuck all the plants in the skip, Hamish the consultant suggested

that it would be a nice gesture to donate them to Eric’s empty office while he was away. ric returns from holiday.

He was never an early commuter, arriving around 9.30 most days - unlike Hamish, who was in at 7am.

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Eric immediately takes up where he left off with Hamish, pestering him in infinite detail as to progress on his current task. In his intense eccentricity, Eric doesn’t seem to realise that his office has turned into a greenhouse.

But one thing he does notice is the heat, despite the heating being off and all windows open.

In fact, Eric was very sensitive to heat. He went out to Australia in his early career, but had to retreat back to Blighty very quickly because he couldn’t stand the higher temperatures. He yells to his chief clerk, demanding to know why his office is so hot.

Next day, the same thing happens. The chief clerk is summoned, and this time the heating engineers are called in. They agree, his room is extraordinarily warm, but they can’t fathom it out because the heating is off.

During the course of the week Eric disrupts normal office routine, dragging staff away from their desks into his office. He’s almost always interrupted by the phone, and invitees are requested to sit and wait.

Eric looks haggard - jacket off, tie loosened, unbuttoned shirt revealing - despite the heat - a string vest (even at that time a highly unfashionable clothing accessory).

He talks rapidly, voice steadily rising in pitch, while sweating and swatting the flies. Patient staff sit for a time, waiting for him to finish his phone call, but eventually indicate by mime and gesture that they have another appointment. The troublesome flies are now in serious numbers, and within the confines of a single office, the opportunity to ‘exit stage left’ is a priority. ext day, the heating engineers make their third visit. Eric paces the main office yelling his demands, and is now spending time working at a desk in a corridor, away from the staff, who welcome this temporary lack of interference.

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Some callers mistake him for a janitor – looking as he

does as if he’s just completed a hot shift, stoking the boiler on a freighter travelling down the Red Sea on the hottest day of the year. he climax is imminent.

Friday arrives and Hamish and his immediate colleagues meet for lunchtime refreshment at a nearby pub in Mayfair.

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Eric’s discomfort is the main topic of conversation, and there’s a degree of sympathy towards him because, A) those plants were dumped in his office (which he has apparently yet to notice) and B) his office is definitely over warm.

And he hasn’t yet complained about the flies, despite his hand-jive antics.

Everyone in the pub accepts Eric’s bizarre ignorance of his immediate steamy swamp environment, but all are puzzled by the heating conundrum.

All, that is, except Hamish, who quietly confesses that very early each morning he’s been turning Eric’s heating up full blast for an hour or so with the door closed.

Nemesis The climax comes that very Friday afternoon when the staff arrive back from their lunch breaks. Eric is back in his office, and has collected a number of staff in his greenhouse by the simple process of interrupting his current conversation with a patient sitter by answering the phone, or calling in anyone who happens to pass his door. His greeting is always the same:-

ERIC: Ah! James! Come in a moment. Do you not think it’s very hot in here?

[JAMES nods noncommittally (now aware of the Hamish plot), while ERIC swipes at an invisible fly] This process continues, with Eric becoming ever more flustered. His room is now well overcrowded, not just by people, but by the dogfighting insect air squadrons, now scrambled at ‘big wing’ level.

Everyone is doing the handjive, including Eric, who dabs his neck with a sweatsoaked handkerchief, looking like a potential fancy dress winner as Humphrey Bogarde in the swamp scene from The African Queen.

With each new staff arrival, Eric gets more excited, the transatlantic twang reaching its crescendo with every rise in octave, and the hand-jive now constant.

Eric’s punchline is on its way:-

ERIC: Does anyone not agree with me that it’s really hot in here? I can’t be the only one?

(LOOKING AROUND, THEN SUDDEN REALISATION!) …and where have all these damn flies come from?

(SECOND SUDDEN REALISATION!!) …and who put all these b****y plants in my office!!!

It had taken Eric a week, and three engineers’ visits, to put this question. Hence the nickname ‘Whole-week Eric’ which stuck for a while!

DECEMBER 2014/JANUARY 2015 insurancepeople 29

TOGETHER WE’RE HELPING KEEP BUSINESS HEALTHY SMEs are the backbone of Britain’s economy.

That’s why we’re here to help support you with a range of healthcare solutions designed to help keep your clients healthy and open for business.

Get in touch with our dedicated SME team:

smeintermediaryteam@bupa.com 0800 33 2000* *Calls may be recorded and may be monitored.