Insurance People June 2014 by Insurance People

insurancepeople issue 44 June 2014

ce nsuran I e h T â&#x20AC;&#x153; ith zine w a g a M alityâ&#x20AC;? Person

Andy Watson See Page 8 Insurance People inside include:

Reg Brown James Guthrie Robert Hiscox Peter Middleton Duncan Pritchard Alan Rice Jamie Truscott

Understanding the things that are important to you and your customers can only be achieved by listening and getting closer to you - our brokers. This means that we can provide even more innovative and ďŹ&#x201A;exible insurance solutions designed to help your business grow and increase proďŹ tability. Our executive range of high net worth and commercial products are designed to the highest standards, backed up with excellent service; as evidenced by the many industry awards we have recently won. Our immediate access to decision makers and our ongoing commitment to exceptional customer service, competitive pricing and fast, fair claims settlement makes Sterling a company that truly makes a difference in the marketplace.

To ďŹ nd out more about how Sterling can deliver great service to you, contact our Broker Operations Manager, Mark Arends via the details below.

T: 0845 271 1300 E: marends@sterlinginsurancegroup.com www.sterlinginsurancegroup.com Sterling Insurance Company Limited and Sterling Life Limited are incorporated and registered in England and Wales under numbers 498605 and 911235 respectively. They are authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. They are covered by the FInancial Services Compensation Scheme and the Financial Ombudsman Service.

surance “The In with ne Magazi ity” Personal

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leader

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Broker business is buzzing! Editor and Publisher

Consultant Editor

Andrew Newman

Brian Susman

he signs of growing confidence in the broker market, as recession recovery slowly proceeds, was nowhere stronger than in Manchester last month at the 2014 BIBA Conference & Exhibition.

Production Director

Jeni Hall

Adrian Susman

In this issue

Manchester Central was alive with a constant hubbub, not just as a result of networking but from business being placed. Many of the stands themselves spoke volumes for the colossal investment many players are making in this market. Commercial Director

June 2014

But the broker market is of course a ‘people-focused’ part of the industry, and no matter how fine a trade stand may be, complete success depends on how it is crewed. And that’s where some differences were apparent.

Late news

Market talk

Interview Andy Watson, CEO, Ageas UK

Editorial

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

Adrian Susman adrian@insurancepeople.uk.com 07981 993974

The winners were the ones who succeeded in melding their whole team towards delegate welcome, working together to solve needs, whether that be with decision-makers; top brass; underwriters; claims people; or those working in the front line. It would be hard to pick a sole winner in this category at BIBA 2014!

Ones that got away Peter Middleton was a Lloyd's CEO

Risk Management Jamie Truscott, Cardinus

Commercial Director

Jeni Hall jeni@insurancepeople.uk.com 07969 510172

www.insurancepeople.uk.com

Reg Brown’s Postcard Emporium Hands off my plums!

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

Sterling Broker Survey James Guthrie

Robert Hiscox was so fond of his local bookshop – he bought it!

Andy Watson takes the interview chair

Customer service Duncan Pritchard

Also find us on:

News

On the move Who’s going where?

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.

On the Road Upheaval in Undershaft

Jamie Truscott considers fire risk

Duncan Pritchard says a complaint is not always a negative experience JUNE 2014 insurancepeople 1

insurancepeople

Late News

in association with

Broker Direct offers facility for RSA brokers SA is to reduce the number of its personal motor broker relationships in the UK by 35%. The company says it will continue to offer motor insurance through personal brokers where it is balanced by a profitable home insurance portfolio but will no longer partner with brokers where the majority of the relationship comprises motor insurance. Reacting to the RSA announcement, Broker Direct has offered members a price-match facility with Zurich. Terry Stanley, chief executive of Broker Direct comments, "In order to help Broker Direct brokers and their clients affected by the RSA announcement we will allow

Xchanging cycle challenge raises £20,000 changing, together with companies from the London insurance market, has raised over £20,000 for charity through its annual cycle challenge, the proceeds going to Barnardo's and London Air Ambulance. The event took place on 16 May, and was organised and led by Max Pell, managing director of UK Insurance at Xchanging. The ride started from Parham House in the South Downs, and explored the surrounding Sussex area through two route choices - 120km and 150km.

New Auto Windscreens fitting centres uto Windscreens has opened two new sites – in Preston and Hoddesdon. Preston Fitting Centre has a six-strong team, including four mobile technicians who will cover surrounding areas and help the neighbouring Manchester fitting centre when work volumes are high. Similarly, Hoddesdon has seven staff members responsible for covering North and North West London and Hertfordshire. They will also handle customers in areas between the Romford and Slough fitting centres.

2 insurancepeople JUNE 2014

them to switch business onto our BDZ 40 product, which is underwritten by Zurich, at the expiring RSA premium. It fits with some initiatives we have already been piloting and have shown to produce additional, profitable business from our carefully selected brokers”. Mark Allan, managing director of RSA’s personal lines Intermediated division, says, “We remain committed to the personal broker market and providing car insurance to our customers. However, we’re not prepared to write business where we can’t make sustainable returns. To ensure we are successful in the tough UK motor market we are adopting a much more targeted approach.”

Governor's comments in the spotlight ommenting on Mark Carney's warning to insurers that he will hold top insurance executives to account in the same way as he has cracked down on errant bankers, Andy Tromans, corporate insurance partner at Clyde & Co, says: “It will come as no surprise to anyone in the UK financial services sector that high standards of integrity, honesty and skill are key regulatory requirements across all sectors, but just because there have been examples of failures of this in the banking sector it would be unfair to imply that this is rife in the insurance sector in a way that requires the Bank of England to markedly change its approach to its regulation. “He also needs to understand the differences that exist when applying the lessons of failures in the banking system to the insurance sector. Even where insurers seek out new, more profitable opportunities, it would be wrong to characterise them as taking the same kind of casino approach that has been attributed to banks. It is inherent in insurance to take both investment and underwriting ........ “As insurers face ever increasing capital requirements, the question also arises as to where the profitability that will generate increased levels of capital will come from. Insurers are also subject to regulation by the Financial Conduct Authority, whose consumer-focused approach has different priorities to those highlighted by Mark Carney. Now Mr Carney has shown his interest in the sector, one question many insurers will be keen to be asking him is how the Bank of England is going to interact with the FCA effectively in order to provide effective and understandable regulation for insurers.”

market talk

Andrew Newman

in association with:

Robert Hiscox – bookseller hanks to a kind invitation from Robert Hiscox, I enjoyed a recent opportunity to peer down into London’s inactive Pinnacle skyscraper building site. That was from a top floor of the Great St Helen’s building occupied by Hiscox Insurance. (For more about Pinnacle ‘non’progress see page 25). But I was not visiting Hiscox Insurance to talk about giant skyscraper construction. Nor indeed to necessarily discuss insurance matters. The objective was to learn more about Mr Hiscox’s recently publicised purchase of his local bookshop, and to chew the fat over the tangible magic and relevance of books and the printed word in today’s digital world. That’s a topic I naturally have more than just a passing interest in. Although IP’s digital version is favoured by a good number of readers, by far the majority prefer the ‘touchy feely’ and comfy chair combination away from the keyboard.

Robert Hiscox: “Bookshops are gradually disappearing thanks to Amazon and digital reading, but digital purchase cannot reproduce the unique bookshop browsing experience. In fact, all good High Streets themselves should be a browsing experience, attracting people as a worthwhile way to spend their time.” Mr Hiscox has strong views on some of the obstacles that retard that High Street browsing experience, particularly draconian parking restrictions and unenthusiastic shop keeping. “You can still go into some retailers and get an indifferent welcome - or no welcome at all. I believe there is nothing like spending time in an independent bookshop surrounded by a cornucopia of interesting books you might never find online, with a friendly and knowledgeable staff on hand to give you advice and encouragement to

Dame Jacqueline Wilson cuts the ribbon alongside manager Angus MacLennon. Photo courtesy of Neil Goodwin

browse as long as you like. Marlborough is full of intelligent book readers and parents who want to encourage their children to become avid readers." The re-launch opening of the revamped 17th century-listed White Horse bookshop in the High Street in Marlborough, Wilts took place on 26 April 2014. Children’s author Dame Jacqueline Wilson cut the ribbon. It has been a bookshop since 1948, but rather than let the shop close

down when the owner retired, Robert Hiscox and entrepreneur Brian Kingham stepped in, appointing Angus MacLennon as manager, who was previously in charge of Waterstone’s branch in London’s Chelsea. I asked Mr Hiscox if there are any similarities from the customer point of view between selling books and selling insurance. “Yes, the cheapest is not necessarily the best!”

Brokerbility Academy website goes live roker network group Brokerbility is set to do its bit on the apprentice front later this year with a higher level training scholarship on offer. Successful applicants will commence a CII accredited apprenticeship and training programme to graduate over 15-18 months. Launched earlier this year, the Brokerbility Academy aims to attract talented people of all ages into a career with one of Brokerbility’s member firms. The website has now gone live. Group director David McCallum says the new website is designed “to connect industry stars of the future with our member brokers”. See www.brokerbilityacademy.co.uk

Robert Hiscox and Brian Kingham Photo courtesy of Neil Goodwin

JUNE 2014 insurancepeople 3

market talk New apprentice joins Henderson Another London sky liner

Henderson apprenticeship scheme moves on B usiness apprenticeship schemes are much in the news at the present time, but it’s not just the mega-corporations that get involved. Lauren Burnett is the latest recruit to join the apprenticeship scheme at Henderson Insurance Brokers at the Hessle, East Yorkshire branch after applying for an apprenticeship in general business administration at the Learning Skills Partnership (LSP). The 12-month apprenticeship will lead to a

NVQ level 2 qualification while allowing Lauren to work as a trainee receptionist and broker. Director Andy Wakefield says that previous apprentices and junior staff members have tended to stay and progress with Henderson. “We try wherever possible to employ local people, and are committed to helping young and talented people like Lauren via official apprenticeship schemes.” The Hessle branch employs 16 people, involved mainly

on bespoke services for business sectors such as logistics and construction. Lauren left school with A-levels in English and law, and is paid by Henderson while she studies and works. “I was attracted to the apprenticeship because it was a general business admin course that would also allow me to develop specific broking skills to further my future career.” Henderson Insurance Brokers operates from ten offices across the UK and describes itself as “bridging

DWF to move into the ‘Loofah’ T he constant joy of editing a magazine like Insurance People is the unexpected way in which certain themes barge themselves onto the pages, especially when the link to our subject matter of insurance and the people who work in it is not necessarily a direct one.

Take this month’s inescapable London skyscraper theme. It came into being by chance when I glanced through the window when visiting the Hiscox office to interview Robert Hiscox (see page 3). The overspill from that item found a home on page 25, and now the good people at

The Sky Garden - see more pictures on page 7 4 insurancepeople JUNE 2014

national law firm DWF add more fuel by announcing their major relocation to 20 Fenchurch Street, EC3 otherwise known as the ‘Walkie Talkie’. And that’s the point where inevitable controversy needs to be stirred. Why? Because ‘20 Fenchurch Street’ is a far too staid title

Lauren Burnett

the gap between small local brokers and large multinational corporations”.

for such an exciting structure, and ‘Walkie Talkie’ simply isn’t irreverent enough. ‘Walkie Scorchie’ perhaps? But do today’s digital jaywalkers even know what a walkietalkie was? No, it’s got to be ‘The Loofah’. We nearly had the ‘Helter-Skelter (see page 25), but we’ve definitely got the Gherkin, the Cheese Grater, the Prawn, the Shard etc. And in the centre of all this there’s Lloyd's, with its inside-out architecture telling the world that the people behind the recently named world-centre for finance do indeed have a sense of humour and the ability to see the joke. Humorous or not, you have to admit the ‘Loofah’s’ internal views are pretty spectacular.

‘Eleventh hour’ reputational help from Hill Dickinson

in association with:

New reputation risk audit service here’s no need to list the names of the various financial services operators who have suffered significant reputational damage over the past few years - some of them are still suffering. Prevention is better than cure, and that’s a topic I discussed with Ruth Lawrence, partner and head of insurance at commercial law firm Hill Dickinson. Recognising the commercial significance of reputation, the insurance business group has developed a reputation risk audit product. “Research shows that the share price fails to recover - even in the medium term - of over half of the companies impacted by major reputational damage,” explains Ruth.

Ruth Lawrence

“Our experience in crisis management confirms that anticipation and strategic forward planning is the most successful and cost effective solution. It’s more effective to protect reputations before attacks than to rebuild them afterwards.” But how far can preventative audit go to uncover potential crisis? Could it prevent say, a

bank falling into the PPI scandal? Or an insurance broker being heavily fined for mis-selling? I put that question to Ruth: “The underlying purpose of the reputation risk audit is to uncover the issues that might turn into potential crises, and in so doing prevent them from happening or exercise greater control over them if they do happen. The extent to which an audit could prevent a major crisis will depend almost entirely on what the client brings to an audit. “The audit process is a risk assessment through the prism of experienced media lawyers. The extent to which it could include a degree of independent investigation will be agreed on a case-by-case basis. It’s essentially a collaborative tool, rather than

Reputation risk service remedies The Hill Dickinson service aims to provide solutions encompassing the following examples based on actual cases:l

Advising on appointments to the board of an organisation to pre-empt an issue arising that would have caused potential damage to the reputation of that organisation

Advising an organisation of the reputational issues arising from mooted tax planning structures that resulted in those plans not being adopted

Advising a business on the risks associated with a particular lateral hire

Advising an organisation on the reputational risks of the purchase of particular intellectual property rights

Advising a client in relation to confidentiality obligations of employees to pre-empt information being leaked to the press

Advising on reputational issues surrounding the upcoming potentially high profile divorce of a director in a hedge-fund

Advising a company to formulate a litigation strategy to protect its reputation over a high-profile director’s fall-out in which fraud was alleged

a form of independent verification. Legal directors Magnus Boyd and Hanna Basha recently joined Hill Dickinson to expand the reputation management team into London. They’ve worked together since 2001, initially at Schillings and then at Carter-Ruck. Their speciality lies in defamation, privacy law, and crisis media management and they have developed this product in response to clients’ need for a more strategic approach to protecting reputations and minimising reputational damage at the ‘eleventh hour’. The aim is to equip boards with the strategies and measures to take control and minimise risk in advance.

Bender joins Pool Re ormer civil service Permanent Secretary, Sir Brian Bender joins terrorism reinsurer Pool Re as a nonexecutive director. He retired ten years ago, and currently holds a number of board and advisory roles.

Sir Brian Bender JUNE 2014 insurancepeople 5

market talk

‘Ricey’ retires Commercial Express development team grows

Alan Rice retires guess it would have been around 1998 during a visit to the Axa head office in Cardiff that I first encountered the booming voice, hearty laugh, and genuine bonhomie of Alan Rice. He was the regional commercial manager and later UK private car development manager at that time. A lot of crosscompany fraternisation took place in that era, so while this was our first

meeting, it certainly wasn’t the last. I never really got to grips with calling him ‘Ricey’, but that was how he was known… and still is… by many colleagues and brokers alike. His vast knowledge of the industry, and his huge network of contacts made him invaluable when setting up the distribution function after joining Highway in 2004, and building up broker relationships when

character, whose laugh “Alan is a great industry s p any other conversation could be relied on to sto m!” roo e going on in the sam Carl Shuker, A-Plan

“On behalf of everybody at Swinton who has dealt with Alan over the years, a massive ‘thank you’ for your contribution to our gre at partnership. You will be missed.” Steve Murphy, Swinton

Highway was acquired by LV=. Alan retired from LV= Broker in May this year. Like many Grumpy Old Men (sorry, Discerning Elder Statesmen) he steadfastly refused to embrace new technology and preferred to rely on his own hand-made notes to ensure everything was ‘Bob-well’ (Alan’s term for ‘correct’ which, incidentally, I can’t find in any dictionary). However,

he did start to use an iPad in the last few years, which he referred to as his ‘eye-patch’ and a ‘blackbush’ (Blackberry). Alan was voted ‘Personality of the Year’ at the LV= internal awards in 2013, and Coversure awarded him its ‘Coversure Old Friend’ award at its own conference. Here’s what some of his friends and colleagues have to say:-

“A wonderful character who made a great past ten years. contribution to the LV= team over the ts alike, and clien and s ague colle with lar Very popu also a is he that fact it’s easy to overlook the try indus an with al ssion profe ate consumm a pleasure knowledge second to none. It’s been ly missed by working with Alan and he will be great happy and long a all of us here. We wish him it.” rves dese inly certa he – retirement Michael Lawrence, er Personal Lines Director at LV= Brok

Commercial Express appoints two BDMs uncan Pritchard, the MD at underwriting agency Commercial Express tells me that the expansion of their business development team continues to grow. Paul Price recently joined and heads the team as regional sales manager covering the North London and Essex regions. Paul’s 30 years’ experience within both broking and

Paul Price 6 insurancepeople JUNE 2014

insurers most recently saw him as business development manager at MMA Insurance, now Covéa. Caroline Fisher joins as business development manager for the London and South-East regions. Also from Covéa, her ten years’ business development experience includes working for Broker Direct.

Caroline Fisher

in association with:

Alan Rice 1974 – Eagle Star. Started non-graduate training in Southampton; senior clerk, Salisbury; city inspector, Swansea 1980 – ACII qualification; Hodge General & Mercantile, southern new business inspector working from home in Dorset. Hodge acquired by AXA 1996-98 AXA head office, Cardiff. Regional commercial manager; UK private car development manager 1999 – Folgate Insurance, national account manager, Poole, Dorset 2000 – Shakespeare Underwriting Agency, sales director, Bournemouth 2003 – A year out! Spent driving coaches and lorries 2004 – Highway, key account manager 2008 – Highway became LV= 2012 - LV= Broker, strategic account manager

“I’ve known Alan for the bes t part of 30 years as a true character in this industry . You can walk into a crowded room – or most like ly a bar – and instantly know Alan is there. With his unmistakeable laugh, a warm welcome and unlimite d good humour, it is always a real pleasure to be in his company. I wish him the very best in his wel l-earned retirement.” Bob Becket, A-Plan

View from the Sky Garden - see page 4

s when he memories of Ricey wa “One of my favourite on a g rkin wo en be d that he’ told us in a meeting surprise. I in er looked at each oth spreadsheet. We all had a had ce uen infl ught my was pleased, as I tho cing bra em lly and he was fina positive effect on him with ced du pro n the ey y. Ric 21st century technolog d in pen, A4 paper with lines rule great pride a piece of t ou ab fell all We . boxes and handwriting in the laughing!” Rob Street, LV=

20 Fenchurch Street - see page 4 JUNE 2014 insurancepeople 7

interview

Andy Watson CHIEF EXECUTIVE AGEAS UK

Forward to the Future In talking with CEO Andy Watson as Ageas UK moves forward with the current phase of its progression plans, the Editor admits to an inherent degree of bias, having watched and taken an interest in the development of Ageas UK right back to the Bishopsgate era of the 1980s. The Eastleigh-based insurer was then a personal lines specialist, competing mainly in the private car sector alongside a good dozen or so similar companies, all taking market share - not so much from each other - but mainly from the larger insurers, the so-called composite offices of that era. Consequently relations between those smaller protagonists were cordial. Bishopsgate even merged with one of them (Northern Star) to become Fortis Insurance in 2000 which is about when today’s metamorphosis began to take off AN: Your time, and my print-space, unfortunately doesn’t allow me to pose the Ultimate Question about Ageas - how do you keep the bottom line profitable while competing in an ever competitive market place? So for the moment perhaps I can pin that down in relation to just one element of your activity – the affinity business. How do you successfully compromise with the ‘clout’ of the big affinities? The first Ageas steps into affinity partnerships took place in 2004, so that ability is proven. But from my own experience as a chartered insurer, affinity pitches always seemed to revolve around demands for the highest commission; the lowest rates; the highest levels of service; and – especially relevant to the automotive 8 insurancepeople JUNE 2014

sector – high repair and labour costs. Coupled of course with the risk of future defection. AW: The mainstay of Ageas’s growth strategy has been a multi-distribution approach or put simply, to offer insurance where the customer wants to buy. Brokers are fundamental to that, as are our relationships with trading partners such as affinities. All our distributors are tough negotiators! But it is always done in a spirit of true partnership. There are a few common themes as to why our affinity relationships work commercially for us. We set out to build long term partnerships – five years and beyond – which really helps everybody in terms of investment, continuity and return. Both parties also have something

very positive to offer. In the case of the affinity partner it’s often the power of their brand and customer reach – think John Lewis, Age UK, Toyota. For us, it’s claims, underwriting and technical excellence. And of course these days, the war on data is a massive feature of commercial development and the ability of affinities to capture and utilise unique datasets. A good example would be the Tesco Clubcard, which creates strong competitive advantage and is beneficial to the partnership. But fundamentally, the aims, culture, future vision, and values of the organisations have to be right for the commercial benefits to flow through. AN: The diversification into sectors other than motor has been

Offering insurance where the customer wants to buy

“ significant. To what extent has the acquisition of Groupama Insurances affected that? Has business been retained? AW: The core reasons for buying Groupama Insurance Company Ltd were that it offered a strong presence in non-standard segments where we were not present, coupled with a great reputation with its brokers, strengthening our offering to the market. It is complementary to our standard broker products, and not only have we retained business but we have been delighted with the uptake of our new wider product range, with a number of new deals already announced in the first half of this year. We simply wouldn’t have written those deals before we acquired Groupama. It’s going really well and the feedback from brokers has been great. AN: Let’s take the motor cycle business. What’s it like inheriting a significant volume of business that you haven’t handled before? AW: Interesting and exciting! Ageas is now a top-three motor cycle insurer and we are active in growing the business. I have to say the commitment of the team has been fantastic. Our motor cycle claims team recently picked up an industry award for their innovative approach to dealing with customer claims which was great as our aim was always to build on what Groupama had developed and take it to the next level. We are definitely open for business in motor cycle and across our range! AN: Given the number of separate businesses under the group umbrella and the various distribution channels in which you operate, is there a danger of sometimes competing with yourself?

”

AW: Our multi-distribution, multiproduct strategy is geared to being where the customer wants to buy their insurance. We do operate under four key areas:l our general insurance business, mainly distributes through brokers l our retail businesses, made up of owned brands and our affinity partnership business l our JV with Tesco Bank l our life protection business which mainly distributes through IFAs

My view is that we need to keep engaging at all levels. We have seen unprecedented levels of attention on the insurance sector whether that be from politicians, the regulators or indeed, the media. I believe we need to work together better as an industry to influence any change for the benefit of the customer and our businesses – we are after all, big employers and contributors to the UK economy. I’m sure there’s always more we can do as an industry and I personally play an active part in supporting those efforts.

Whilst there will always be some overlap in a business our size, we do target and develop propositions to different customer segments to give them a powerful choice, and to give us the ability to expand our reach. The fact that the business has doubled in size over the last decade gives us comfort that it is driving real growth and commercial benefit.

AN: It seems to me that these days Ageas is the modern equivalent of the one-time ‘composite’ insurance provider – it’s a top table company, and you not only write life business, but operate in about every distribution channel. Are there any gaps left to fill?

AN: What’s your view of the value of the meetings with politicians? I’m thinking of the February 2014 floodrelated session in the Cabinet Office in Downing Street. AW: It was an interesting session in Downing Street and actually useful in terms of bringing key political decision makers up to speed on how customers were being handled during a critical period. That’s still where the industry is at its best, helping people in their time of need.

industry is at “its The best when helping people in their time of need

”

AW: We have grown successfully over time, but have done so whilst keeping our core values and approach intact. I hope brokers and other trading partners know exactly what they are going to get from Ageas – low cost, high service, an ability to get things done with an intrinsic belief in true partnership. But there’s more we can, and want to do. Our wider product range is helping us do that in the broker space and we want to support them more. We are developing and investing in our retail businesses which often operate in the most competitive parts of the market. And we want to grow our affinity partners, both developing the ones we have, and winning new ones, having strengthened our team and capability recently to do just that. So you can see, I’m never one to rest on my laurels! It’s a great business, I have a strong team, and we are focused to achieving even more for our trading partners and our customers. JUNE 2014 insurancepeople 9

“The ones that got away” The former monk Peter Middleton came to insurance in 1992 to lead Lloyd's out of troubled times, but he ‘escaped’ to seek new pastures before the job was complete. He was, in fact, a serial ‘escaper’ from one field to another, as his CV reveals. In chronological order: monastery inmate; philosophy student in Paris; fluent French speaker; labourer; lorry driver; university student - economics and social studies; amateur track athlete; the Foreign Office, as an intelligence gatherer in Paris, and later diplomatic posts in Jakarta, Dar es Salaam, and back to Paris; Midland Bank employee; CEO Midland Bank subsidiary Thomas Cook; CEO Lloyd's; banker at Salomon; director, Chelsea FC; chairman, Football League 1998-2000; CEO World

Snooker Association; chairman Luton Airport and GTL Resources; and various directorships too numerous to name, but including the Rockingham Speedway circuit, Northants. He loved motorbikes!

Peter Middleton P

eter Middleton died last year at the age of 74, and was chief executive of Lloyd’s in the aftermath of the dramatic losses and endemic malpractice in Lloyd’s which saw ruin for many Lloyd's Names, hence the urgent need for reform.

But he suddenly resigned in November 1995 with two years left on his contract – allegedly without even telling chairman David Rowland beforehand – and having previously indicated his commitment to stay until recovery was complete.

Remembered as an often blunt and sometimes volatile northerner, who once admitted that he had “never been qualified to do any of the things I’ve been asked to do” he moved from role to role, often with sudden departures.

He moved on to a significant salary package - and another tough challenge - at Salomon Bros, although his efforts to change the inherent bonus-chasing culture and complex internal politics saw his departure in 1998. But there were plenty of other tasks lying ahead for him.

Having led travel agency Thomas Cook to calmer waters, he was invited to do the same for Lloyd's by David (later Sir David) Rowland when Lloyd's hit the rocks. Middleton slashed costs and jobs; contended hostile litigation; championed transparent working practices; steered the way towards corporate membership; and ring-fenced debts into Equitas. 10 insurancepeople JUNE 2014

Peter James Middleton was born at Withernsea in 1940. His father worked at ICI in their factory on Teesside, and his grandfather had been a foreman in the steelworks. He attended a Roman Catholic college and went on to spend five years at a monastery in Devon before embarking on his diplomatic and commercial career.

risk management

Jamie Truscott MANAGING DIRECTOR CARDINUS PROPERTY DIVISION

Fire Risk Assessment Fire risk remains a top concern for both firms and homeowners. The UK premium/claims ratio for fires is around the 13% mark, while the pay-out for an average household fire claim in 2012 was £10,200, with commercial losses much higher. Jamie Truscott stresses the importance of the Fire Risk Assessment…

The fire risk assessment and its periodic review is a foundation for continued adequacy of fire precautions on an ongoing basis, after compliance with building regulations. It is, therefore, essential that fire risk assessments are only carried out by a competent person.

he legal requirement to carry out a Fire Risk Assessment is contained in the Regulatory Reform Fire Safety Order 2005, (RRO), and came into force in October 2006 with implications for all UK businesses

Person, suitably trained and qualified by knowledge and practical experience, and provided with the necessary instructions, to enable the required task(s) to be carried out correctly

Who does it apply to? l All firms with employees (full or part-time and temporary) l The common areas of houses in multiple occupation l The common areas of maisonettes and blocks of flats The legislation makes it compulsory to: l Carry out an assessment of the risk of fire within a premises and ensure effective safeguards are in place to protect all occupants of the building should a fire occur l Take action to improve precautions where they are shown to be inadequate

Who has the responsibility? The Fire Safety Order places certain duties on the responsible person for a premises. This can be anyone who has control of the premises, or a degree of control over certain areas which may provide for shared responsibility. The term “person” can be a person, persons, or body corporate; and is sometimes referred to as “the duty holder”. This could implicate the property owner, even if they have subcontracted to a managing company.

Responsible person – definition: In relation to a workplace, the employer, if the workplace is to any extent under his control. Otherwise: 1) The person who has control of the premises (as occupier or otherwise) in connection with the carrying on by him of a trade , business or other undertaking (for profit or not) 2) The owner, where the person in control of the premises does not have control in connection with the carrying on by that person of a trade, business or other undertaking

Who carries out a fire risk assessment?

Competent person - definition:

Why should insurers pay attention? Aside from the obvious comment that improved and frequent risk assessment reduces physical damage losses, the bigger concern is the threat of legal liability which may arise on the part of the duty holder and the fire risk assessor if a fire risk assessment is not suitable and sufficient. If the inadequacy of the fire risk assessment puts one or more relevant persons at risk of serious injury or death in the event of fire, an offence is committed by the duty holder. The same offence could also be committed by the fire risk assessor. Companies insuring property, property management companies and property owners, need to consider whether adequate fire risk assessments, in frequency and competency, are being carried out. Historically there has been no formal standard for fire risk assessors. However this has changed in the past year and a couple of organisations have started accreditation processes to impose audited standards on firms of fire risk assessors.

Fire Statistics Monitor: England - April 2012 to March 2013 l There were 271 fire fatalities in England l Three fifths of all fire fatalities were accidental in

fires in dwellings l There were 3,830 non-fatal fire casualties

(excluding first aid cases) Source: Department for Communities and Local Government. JUNE 2014 insurancepeople 11

“They may be your plums… but it’s my tree”

or those who think statutory regulation is a new thing, have a look at this 1905 postcard from the Reg Brown collection. It’s a satire poking fun at John A McCall, President of insurance giant New York Life around the turn of the 18/19th century. The horrified policyholder approaches the plum tree with a ladder to pick his own investments, only to find a striped-trousered, top-hatted John A McCall has got there first, and has already creamed off a good chunk of the policyholder’s bounty into his personal stash. How relevant that image becomes 109 years into the future!

ohn A. McCall himself was called to testify when the Armstrong Committee of the New York State Legislature Joint Committee on the Investigation of Life Insurance sat in 1905-6 to explain, among other things, special deals with President Teddy Roosevelt and the Republican Party. The Armstrong Investigation was also prompted by a scandal of frivolous spending excesses by some of the

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day’s large life insurers, and the trend for significant capital being accumulated by a few individuals and enterprises. New York Life was particularly castigated for “parking” (fiddling the books) and several directors were indicted for forgery. An uncanny echo of today’s insurance market place here in the UK – at least up to a decade or so ago – was the 1905 Armstrong Committee’s call for standardised proposal forms to clarify both the insurer’s obligations and the rights of policyholders in the event of a claim. Also, a restriction on agents’ incentives to stop abuses in the sale of insurance to ‘unsophisticated’ customers. Nothing changes!

Sterling survey

James Guthrie ASSOCIATE DIRECTOR, HEAD OF BROKER DEVELOPMENT STERLING INSURANCE GROUP

Understanding brokers’ needs When asked whether Business Volumes and Profitability will change going forward, overall brokers said

Improve Stay the same Deteriorate

Mergers and acquisitions New business growth opportunities were cited as the main motivator for mergers and acquisitions in 2014. When asked if they were likely to merge with another insurance intermediary in the next three years, 58% of brokers said that they would be merging, or they would consider a merger. Other reasons cited for a potential merger included ongoing compliance and operational costs, with only a small proportion viewing it as a possible exit strategy.

Fraud Sterling Insurance Annual Broker Survey 2014

Now that overall broker optimism is running high, IP asked James Guthrie to reveal some of the findings from the latest Sterling Insurance annual broker survey, and to explain how the insurer uses this information to enhance its communication with its brokers n its fifth consecutive year the Sterling Insurance annual broker survey remains a crucial barometer of our brokers’ thinking about the products and service they receive. Equally important, it gives us vital information about the challenges brokers face from both an industry and regulatory viewpoint. Also their concerns, which provides us with the opportunity to address any issues these might raise. Over the years, we’ve found that our brokers’ voice is one of the most valuable ways in which we get honest opinion and gauge market sentiment. Being a mid, and high net worth insurer, the quality of our household products is absolutely vital and, for the fifth year in a row, we received superb feedback on our Executive range of personal lines products. Similarly, our commercial range scored highly with over 80% of our brokers rating our flexibility; the access to decision makers; the quality of products; and our innovation as excellent, or very good, across both offerings. From a market perspective, overall broker optimism is running high with 73% feeling positive about future business volumes and profitability. Interestingly however, as with last year’s response, commercial brokers are more optimistic about the future than those in personal lines.

On the topical issue of fraud, 60% of brokers believe that insurers adopt a balanced approach to fraud detection, recognising policyholders' rights to fair claims settlement and the need to investigate fraud. This represents an 11% increase from the 2013 results. A further 31% think that insurers are on the right track, with only 5% and 4% thinking the industry is lax or heavy-handed, respectively.

Insurers response to fraud detection

Balanced approach Too heavy handed Too lax Getting better but not quite right yet Sterling Insurance Annual Broker Survey 2014

Communication The Sterling Insurance team firmly believes that insurers need to communicate more openly and more regularly with brokers to understand their needs. We certainly view this engagement as a positive step to building mutually profitable relationships and that’s why, in addition to our annual survey, we’ve also launched a series of regional broker forums to continue this engagement. Together, these initiatives will allow us to respond quickly to changes in the marketplace and provide our brokers with the products and services they need to thrive. JUNE 2014 insurancepeople 13

Understand your customers

customer service

Duncan Pritchard explains why a customer complaint doesn’t have to be a completely negative experience n imperative part of running a successful business is to ensure a full understanding of your customers. Who are they? What do they like? What don’t they like? Why are they your customers, rather than a competitors? And most important what can customers tell the business in terms of improving their buying experience? Sounds obvious, doesn’t it, but it’s an objective many firms miss when all their time and effort is focused on the day-to-day running of the business. But it’s critical to make time to research customers to find the answers to those questions raised above, because this information can then be used to improve the overall service and product offering. Listen to your customers – a complaint doesn’t have to be a wholly negative experience. It can

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force change, which could improve the business. One of the best ways of getting this information is the customer short survey. These can be created quite simply online and issued via email, or there could be a hard copy version printed to be sent out. It’s often wise to include an incentive such as a prize draw. The survey should stick to the parts of the business where feedback is wanted tailor the questions to focus on those areas. ut of course, the survey exercise is only worthwhile if you then listen to the responses; take them on board; and work out how to make the required improvements. This exercise can then be repeated 6-12 months later to gauge the results of the managed improvements.

Duncan Pritchard MANAGING DIRECTOR COMMERCIAL EXPRESS

A likely outcome from such a survey may prompt staff training, either in-house or from an outside source. It could be as basic as telephone training, or it could be a sharpening up of product/insurance knowledge. To help members of staff buy into this, an incentive or bonus scheme is worth considering, offering a balance of new business, customer experience, renewal retention target along with service KPI’s. Thereby financial reward can be achieved as well as improving the brand. If you don’t make the effort to look after your brand then your business can really suffer.

News

General insurers ignoring actuarial aspects of Solvency II O

AC Actuaries and Consultants has warned that some general insurers are in danger of ignoring a key facet of Solvency II compliance. A central tenet of the new regime is that general insurance firms will be required to have an actuarial function to help them assess their financial resources and solvency capital requirements as well as help with the effective 14 insurancepeople JUNE 2014

implementation of a risk management system. However, OAC believes that some firms have been slow to put these provisions in place and the company says that, with just 18 months until the deadline, concerns are growing that many may miss the deadline if they do not act quickly. Christopher Critchlow, consultant actuary at OAC

comments, “Solvency II represents a step change for insurers and having an actuarial function in place is absolutely central to that process. Until now the general insurance industry has adopted a more informal and intuitive process in the assessment of their actuarial liabilities but with the Solvency II requirements imminent that is set to change.”

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News

Cardinus ergonomics training for schools erby City Council has provided all its schools with information about Healthy Working MOVE, the free ergonomics course for schoolchildren and students from Cardinus Risk Management. The council has included details about the programme in its communications to schools in Derby in a bid to help improve the health and well-being of children and young people in the city. The messages also include advice and information for

teachers and council employees on how to use new technology comfortably and safely. Jon Abbott, director of Cardinus Risk Management, says, “School is a child’s place of work and the health and safety considerations that apply to adults in respect to technology, seating, lifting and carrying, should also apply to children. They are also at risk from the bad habits they develop at home. Healthy Working MOVE will teach

children how to stay comfortable and safe by using technology sensibly, sitting properly when working and relaxing and managing their school bags correctly. “The experience Cardinus has with its ergonomic training programmes for corporate clients worldwide, plus our close relationship with the Health and Safety Laboratory, means we are in a great position to help protect children. Healthy Working MOVE is our first

BGL rowers raise £45,000 GL Group's executive board and 38 employees have raised over £45,000 in a charity row of 66 kilometres on the Thames from Bray to Putney. They took turns to row and negotiate locks, in a four-man boat with a cox, putting into practice techniques learned at Peterborough Rowing Club.

Money raised by the challenge will be used towards improving education facilities in Zambia, with the help of BGL’s charity partner, Build It International. This building project consists of three classrooms, a new sanitation block and a house for teachers, which will be funded exclusively by the BGL Group.

This latest charity challenge forms part of the BGL Group’s target to donate £3 million to worthwhile causes by 2017, with an overarching theme to ‘Reduce poverty and create prosperity’. To help raise funds and awareness of the build in Zambia, 20 employees are visiting the community and school in May.

Jon Abbott

response to the problem and we have taken the decision to make it available free to education establishments across the country.”

Hiscox GWP up 2.3% or the three months to the end of March, Hiscox is reporting that gross written premiums grew by 2.3% in local currency, with a small decrease in sterling to £501.6 million (2013: £506.1 million) as the group pulls back in reinsurance. The Group adds that its long-term strategy of building local retail businesses to balance internationally traded business continues to present opportunities. Bronek Masojada, chief executive, comments, “The market is softening, but conditions in many of our insurance lines are good. Our retail businesses continue to benefit from long-term investment in the brand and our acquisition of DirectAsia represents another important milestone.”

JUNE 2014 insurancepeople 15

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News

Landmark ruling on consequential losses he Court of Appeal on May 20 ( (1) Mitsui Sumitomo Insurance Co (Europe) Ltd (2) Tokio Marine Europe Insurance Ltd (3) Royal & Sun Alliance Insurance Plc and Others v The Mayor’s Office for Policing and Crime), overturned the first instance decision that section 2 of the Riot (Damages) Act 1886 does not allow recovery for consequential losses. This is the first case to address the meaning of the Act in these terms. The appeal arises out of claims against the Police for

recovery of material damage and consequential losses following the arson attack on the Sony DADC Distribution Centre in Enfield during the 2011 London riots. The Court of Appeal determined a number of issues in this test case, including whether consequential losses were, in principle, recoverable under the Act. The Court held that, as a matter of ordinary language and unless specifically excluded, the Act entitles owners (or, by substitution, their insurers) to compensation in

QBE sells aviation rights to Brit BE has entered into an agreement with Brit whereby Brit will acquire the renewal rights to QBE European Operations’ Lloyd's aviation portfolio. Under the terms of the agreement, which is expected to conclude by 1 June 2014, it is anticipated that QBE’s London-based aviation team will transfer to Brit. The agreement follows a strategic review by QBE which concluded that the aviation team could operate more effectively within a different operating model. Richard Pryce, chief executive officer, comments, “We thoroughly investigated the options available to identify the most suitable home for our aviation business and the team. Our overriding objectives were twofold: to ensure continuity of employment for affected employees and to minimise disruption to brokers and clients during the transition. “Brit has a strong reputation in the London market and, with minimal existing aviation business, provides the potential for the team to grow the business.”

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respect of the loss suffered following damage to their property. This includes consequential loss, loss of rent and loss of profit. "This decision may have far reaching implications for the insurance industry, the Police and the public," comments Chris Wilkes, partner at DAC Beachcroft LLP, who acted on behalf of the insurers for Sony. "It is possible that the overall cost to the Police may soar. Insurers may in turn find that more claims are disputed and that the Police become even more

stringent in their adjusting of quantum, utilising arguments such as whether it is 'just' and contributory negligence. "It is also conceivable that this will be the final nail in the coffin for the Act in its current form. Indeed, the Court commented that, although the principles underlying the Act may seem surprising, there is a need to strike a fair balance between the interests of the property owner and the community – and that only Parliament can change the law."

Ageas five-year deal with John Lewis geas has signed a fiveyear deal to provide John Lewis Car Insurance. Sales and service functions will continue to be provided from the Ageas Stoke-onTrent customer contact centre, and the company will continue as lead underwriter. The two businesses have been partners since 2008. Announcing the five year deal extension, Mark Cliff, CEO of Ageas Retail said: “We are extremely proud to not only partner one of the UK’s most trusted brands, but also to provide a Which? recommended car insurance product to John Lewis Insurance customers. Working with such a valuable partner, Ageas will continue to provide high

levels of customer care, combined with a product that meets the needs of its discerning customers. “Our new five year agreement is testament to our unwavering focus on service delivery and innovation, and underpins our increasing strength in partnerships.”

Mark Cliff

Lorega launches Liability Expert orega has launched Liability Expert, an ondemand service delivered by its in-house chartered loss adjusting division, Lorega Solutions, with the object of extending Lorega's range of commercial claims support to cover public, employer

and products liability and product recall. Angus Tucker, operations director of Lorega Solutions, comments, “When you are running a business, any accident or error can be a costly mistake. If a third party thinks you are liable

for damages, the business needs specialist advice and guidance to give them the confidence it will be sorted quickly - before any litigation. “Public, employer or product liability claims can be a very complicated area of insurance but Liability

Expert has been specifically created to ensure businesses are able to call on the necessary level of professional expertise to support them, understand strategies for defence and receive advice on proactive steps to reduce potential recurrence.”

Applied Systems targets UK brokers pplied Systems is introducing its Applied CSR24 online self-service application to the UK insurance market in July 2014, following its “rapid adoption” in the US and Canada. Its aim is to enable

UK brokers to give customers access to their insurance information through the internet and mobile devices. Jeff Purdy, senior vice president of international operations, Applied Systems,

comments, “Technology has fundamentally changed the way the business of insurance is conducted, and brokers need to engage and service their customers in new and different ways. More than 1,000 agencies

and brokerages in the United States and Canada have adopted Applied CSR24 to provide the online customer service option their customers expect and increase the efficiency of their business.”

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

JUNE 2014 insurancepeople 17

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News

AXA and BIBA aim for greater claims transparency XA, with the support of BIBA, has launched a claims transparency initiative, designed to make the claims process clearer to customers. The first phase of the project, which is in pilot with AXA’s National Advisory Group of brokers and BIBA’s Claims Working Group, focuses on the common reasons claims are repudiated. These have been identified as: keys being left in

vehicles unattended; a lack of maintenance of roofs prior to storm claims; and not maintaining alarms in business premises or failing to inform insurers of changes to alarm monitoring. AXA has produced a set of documents, to supplement the policy wording, which aim to cut through the jargon to highlight, in plain English, simple measures that customers can take to

help them avoid breaching the policy terms and having a claim turned down. Amanda Blanc, chief executive of AXA Commercial Lines and Personal Intermediary, says, “Repudiations of claims across the industry, while a statistically small percentage of all claims dealt with, have a disproportionate impact on relationships with

customers and the reputation of the industry. “What we are doing isn’t rocket science – it’s a pretty simple thing to explain the policy terms without using jargon but as an industry, we just don’t do it. This first step in a long term project has received enthusiastic support from BIBA and our own broker partners, both of whom have been instrumental in forming the content of the documents.”

Brightside acquired by Bidco idco and Brightside have announce that agreement has been reached on the terms of a recommended cash acquisition by which the entire issued and to-beissued ordinary share capital of Brightside will be acquired by Bidco. Bidco is a newly incorporated company which has been formed for the purposes of making the acquisition at the direction of, and is indirectly owned by, AnaCap II, LP, a fund ultimately managed by AnaCap FP GP II Limited, which is advised by AnaCap LLP.

The deal values Brightside's existing issued and to be issued ordinary share capital at approximately £127 million. Paul Williams, the chief executive officer of Brightside, says, "We are looking forward to partnering with the AnaCap team and working together over the coming years. We have significant ambitions for Brightside and its future prospects and growth potential and see AnaCap as an ideal partner with equally large ambitions for the future potential of Brightside."

DIY provides home insurance opportunity aymentshield is advising brokers to take advantage of spring/summer DIY initiatives to promote home insurance. The company says that, despite the risk of huge bills for repair or replacement, a surprising number of homeowners neglect home insurance. A recent YouGov poll, commissioned by Paymentshield, showed that over a quarter of those questioned do not have basic cover and that almost half of those with home insurance failed to check that their existing home insurance policy provides the necessary level of cover to fulfil their needs.

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Tim Johnson, CEO of Paymentshield, says, “Statistics have shown that as the winter weather blows away, homeowners increasingly look to undertake DIY tasks. With a quarter of homeowners without insurance, and a third not expecting accidental damage to be covered by a standard policy, brokers have a unique opportunity to educate consumers on the benefits and details of their policies. With large bills potentially looming, it is critical to ensure that homeowners, particularly those looking at home improvement, have the appropriate insurance to cover them for any eventuality.”

Bennetts' online store for bikers

PIC insures Fremantle Media pensions

ennetts has launched an online store for motorcyclists, Bikenation,co.uk. It is claimed to stock the largest range of bike brands in the UK, with over 100,000 products on sale, including new motorcycles, leathers, helmets, gloves and accessories. More than 135 specialist motorcycle brands feature on the site, which marks a shift for Bennetts into the retail market, as it looks to become a ‘one-stop shop’ for the UK motorcycle community. Matt Long, associate director for commercial at Bennetts, comments, “Bike Nation is now live, helping Bennetts stand out in the insurance market. As a brand, Bennetts has continued to push the boundaries when it comes to

ension Insurance Corporation, a specialist insurer of defined benefit pension funds, has concluded a pension insurance buy-in with the trustee of the Fremantle Group Pension Plan. The transaction covers around £47 million of pensioner and deferred liabilities. The trustee and FremantleMedia were advised by KPMG in the UK. FremantleMedia is one of the largest creators, producers and distributors of television brands in the world. Its shows include The X

engaging the biking community and our launch into the biking lifestyle arena was a natural step as a bike specialist. “The online store gives customers another reason to interact with us on a more regular basis than just their annual insurance policy. The store caters to the specialist needs of our customers, while insurers will reap the benefits of additional customer insight and loyalty.”

Matt Long

New legal service for East Anglia brokers C3\Legal, the City law firm focused on representing the intermediated insurance market, has continued its expansion with the opening of a new office in Chelmsford to provide specialist legal services to regional insurance brokers across East Anglia. David Coupe of EC3\Legal, says, “There is a specific gap in the legal service market when it comes to meeting the needs of SME brokers. Many who need specialist advice struggle to find this from local firms or face high fees from the larger City practices. Our approach and structure means brokers can obtain high quality services and advice at lower fees. The new office in Chelmsford is further evidence of our commitment to improving broker and MGA client access to legal services outside of London.”

Factor, The Apprentice, Britain’s Got Talent, Grand Designs and Neighbours. Sarah Tingay, chairwoman of the trustee, says, “A transaction of this nature is never easy to put together, but with advice from KPMG and a flexible and proactive attitude from PIC, we were able to secure our members’ benefits for the long-term. We selected PIC on the basis of price, security and the ability to structure a transaction that also met the needs of the sponsor.”

Auto Windscreens technician's Old Trafford trip glass repair technician at Auto Windscreen's Belfast fitting centre recently had a VIP trip to Old Trafford for receiving over 100 unsolicited testimonials from customers since the beginning of 2013. David Douglas, a base supervisor and long-term Manchester United fan, was given tickets by the company to watch United v Liverpool from the directors' box.

David Douglas (right) meets Bryan Robson JUNE 2014 insurancepeople 19

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News

First Minister opens Thomas Carroll extension T homas Carroll Group has completed a halfmillion-pound extension to its headquarters in Caerphilly. Officially opened by Rt. Hon Carwyn Jones AM, First Minister of Wales, the Pendragon House development features an additional floor incorporating executive offices, training rooms and boardroom with views over Caerphilly Castle. The latest extension, the fourth since Thomas Carroll acquired the headquarters in 1998, follows regional expansion for the group, which was founded in 1972 and today employs 125 people. At the opening, John

Moore, chairman of Thomas Carroll, said: “We are enjoying significant business growth across our regions, by attracting leading executives with proven expertise and strong client relationships. Our graduate programme thrives on developing Welsh talent. “We have doubled in employee levels over the past eight years and are proud to be flourishing and contributing to the economy as a fearlessly independent Welsh company. We are honoured to be joined by The First Minister as we celebrate an unforgettable journey and an exciting milestone in our group’s history.”

Pictured left to right: Mark Eedy, managing director, Thomas Carroll Independent Financial Advisers; Kevin Price, managing director, Thomas Carroll Management Services; John Moore, chairman; Alison Davies, managing director, Thomas Carroll Private Clients and Rhys Thomas, managing director, Thomas Carroll Brokers

Gallagher acquires

Tribunal upholds FCA prohibition Canadian broker A T he Upper Tribunal has upheld the decision of the FCA to ban Ghanshyam Batra from performing any function in relation to any regulated activity in the financial services industry for lack of integrity in relation to the submission of mortgage applications. In 2007, Mortgage 10 Limited - a mortgage and general insurance broker firm at which Mr Batra was the director, controller and approved person – submitted a number of mortgage applications on behalf of Mr Batra in order to seek funding for the purchase of the leasehold

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of two properties which consisted of 78 studio flats. Each of the mortgage applications bore Mr Batra’s signature. The Tribunal agreed with the FCA’s finding that Mr Batra lacked integrity as evidenced by his submission of a number of mortgage applications containing inaccurate information to two mortgage lenders. The Tribunal found that, in relation to those applications, Mr Batra: was reckless as to the truth of some of the statements he made; failed to be open and cooperative with the lenders on another point;

and that he never intended to comply with one of the mortgage offer conditions or, at the very least, was unconcerned as to whether he did so or not. The Tribunal also found that Mr Batra was not open and co-operative in his dealings with the FCA (in particular it found that Mr Batra either knowingly or recklessly gave the FCA incorrect information when being interviewed). The Tribunal did not find that, on the evidence, the FCA had established that Mr Batra had been dishonest or deliberately sought to mislead the lenders.

rthur J. Gallagher is to acquire Canadian broker Noraxis Capital Corporation. On completion it will hold about 87% of the equity interests in Noraxis, with the remaining 17% held by management employees of Noraxis.. Completion is expected in July. Noraxis is a top-five Canadian insurance broker that provides retail commercial, personal and employee benefits insurance products and services. The company generated nearly C$125 million in revenue for the year ended December 31, 2013, has more than 650 employees and operates out of 23 offices across Alberta, Manitoba, New Brunswick, Nova Scotia and Ontario.

Increase in SME concern about business risks he Zurich SME Risk Index, which measures the perceived level of business risk faced by British SME businesses, has risen for the first time in 12 months, from 41.68 in the fourth quarter of 2013 to 43.19 in the first quarter of 2014. Increasing concerns about cyber threats are a major factor in this rise. 45% of the decision makers surveyed from SMEs are now concerned about technological vulnerabilities in their business (e.g. cyber security, data integrity, and mobile devices), a 12-point increase since January 2013. More than one-in-three (37%) SME respondents now class the threat of cyber-attack as one of the three biggest technology risks to their business, the highest level of concern shown for this threat since the Risk Index was created. The survey also reveals that data loss and privacy breaches are the number one technology concern facing SMEs, with 36% of respondents choosing this option, when asked to pick their top three. Data loss has now overtaken the failure of local network systems (32%), which posed the greatest problem last quarter (35% to 36% respectively in January 2014).

Kerry Londonre-brands to Kelliher Insurance he Kerry London Group has re-branded to Kelliher Insurance Group, following recent initiatives to grow the group through closer alignment of its component businesses – Kerry London and Trade Direct Insurance Services. The Kelliher Insurance Group board directors remain as Joe Kelliher, lifetime president, and Mike Coulbert, chairman, with Imogen Coggan taking the new role of group MD. Joe Kelliher comments: “These are exciting times for the Kelliher Insurance Group and our newly defined group identity serves to support and enhance the wider

component businesses. Following a period of strategic review last year, each of the businesses within the group are primed and ready to move into the next phase of growth.”

Commercial Express launches CX Hobby & Club nderwriting agency Commercial Express has expanded its product portfolio with ‘CX Hobby & Club’ -- a liability contract for organisations where members meet to discuss and/or participate in activities related to the club type. The facility covers up to 250 members for public and products liability, as well as employers' liability, £5 million limit of indemnity. The product is targeted at club types such as Amateur Dramatics, Art, Bridge, Camera, Collectors, Model Railway, Music, Needlework, Networking Clubs, Prayer Groups, Parent Teacher Association, Singing and many more social activity groups. Sports clubs are unacceptable except for Dance and Exercise groups. The policy wording automatically includes member to member cover. Duncan Pritchard, managing director of Commercial Express, comments, “We are very excited about CX Hobby and Club. A major benefit to this facility is the material damage extension which provides cover for up to £5,000 worth of items owned by the club anywhere in the world for only an additional £50. This makes it perfect for clubs that attend exhibitions and road shows. “This product is extremely flexible, so if your clients have a club, organisation or even an individual with a hobby that requires liability insurance and/or a small amount of property insurance then we can accommodate this at very reasonable rates.”

Expansion at Marketform bloodstock and livestock account pecialist Lloyd's underwriter Marketform has expanded its bloodstock and livestock business with the acquisition of the underwriting data in respect of QBE’s bloodstock and livestock account. Fay Morrell and Laura Moore from QBE’s bloodstock team will join Marketform’s existing specialty bloodstock and livestock team to handle the transfer, renewal and continuation of the business.

S Joe Kelliher

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News

Liberty continues sponsorship at test grounds iberty Mutual, the UK commercial lines division of Liberty Specialty Markets, has renewed its sponsorship of the test match grounds for a further three years. At the same time, it continues its relationship with former England cricket captain Andrew Strauss, who returns to the London insurance market this summer as ambassador for the cricket sponsorship programme. The deal, which began in 2013, will see the Liberty Mutual Insurance (LMI) brand adorn test match grounds around the country from May to September for all domestic fixtures and internationals played against Sri Lanka and India. It also gives LMI access to the famous Long Room at Lord’s, the use of facilities in a range of Test Match Grounds, tickets for hospitality and branding in prominent locations. Andrew Strauss will make a number of personal appearances on behalf of the company, including visiting Lloyd’s and taking part in broker events and presentations.

Pictured left to right: Mark Stephenson, head of business development and market relationships; Sean Rocks, chief underwriting officer and Andrew Strauss

NKSJ completes acquisition of Canopius urther to its announcement in December 2013, Canopius Group reports the completion of its acquisition by Sompo Japan Insurance, a subsidiary of NKSJ Holdings, one of the largest insurance groups in Japan. All necessary regulatory approvals for the transaction have been obtained. Chairman and CEO, Canopius Michael

Watson comments, “We are proud to become the global specialty platform of NKSJ and look forward to working with our new colleagues. The combination of Canopius’s expertise in specialty lines underwriting, and NKSJ’s financial strength and additional geographic reach, provides us with a strong foundation for our profitable growth ambitions.”

Autonet partners with TopCashback utonet Insurance has announced a new “affiliate partner” collaboration with TopCashback.co.uk, which,it says, was the first 100% cashback site

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that did not charge its users a fee and consequently has seen “phenomenal growth” since its beginnings in 2005. Autonet reports that it

has now acquired 1,500 affiliates, and its MD, Ian Donaldson, comments, “Our scheme allows every opportunity to make considerable earnings through

Autonet’s generous commission structure. We will continue to grow and develop our affiliate strategy and look forward to working with new and exciting businesses.”

On the move Who’s going where? Arthur J. Gallagher Arthur J. Gallagher appoints Adrian Brown as executive chairman of underwriting and distribution. He is currently CEO of UK & Western Europe at RSA, serves on the RSA Group board, and was previously their UK chief operating officer and UK director of personal lines. Stewart Anderson joins as national sales director for Deacon. He joins from NIG where he was regional sales manager and previously headed the property owners division at RBS Insurance (now Direct Line).

BMS BMS Group appoints Dawnmarie Black as senior vice president. With over 23 years’ industry experience, she joins from Ascot Underwriting where she was senior vice president and was previously executive managing director of Aon Benfield’s FAConnect.

Dawnmarie Black

In association with

VEHICLE SERVICES Collection, storage and sales

Aqua Aqua Underwriting appoints Scott Brown as executive director. He was previously CEO of commercial lines and bespoke underwriting at Towergate Partnership and managing director at Fusion Insurance.

Towers Watson Towers Watson appoints Tammy Richardson as head of its insurance management consultancy in the UK. She previously worked in property and casualty at Towers Watson and before that worked at Genworth Financial as a senior vice-president. Scott Robinson joins as UK head of its life insurance practice. He was previously head of the risk consulting and software practice at their Manchester office.

FCA The Bank of England and the Financial Conduct Authority (FCA) appoints Antony Townsend as complaints commissioner. He is currently chair of the UK and Ireland regulatory board of the Royal Institution of Chartered Surveyors, was previously chief executive of the Solicitors Regulation Authority, chief executive of the General Dental Council and director of education and standards at the General Medical Council.

Alex Maloney

Richard Brindle

Lancashire Lancashire Holdings appoints Alex Maloney as chief executive officer. He was previously group chief underwriting officer, chief executive officer of Lancashire Insurance UK and also serves on the board as a director of Cathedral Underwriting. He replaces Richard Brindle who is retiring. Paul Gregory is appointed as group chief underwriting officer. He was previously chief underwriting officer of Lancashire Insurance (UK) and has also worked at AIG as an underwriter and at Marsh as an account executive.

Autonet

Aon Benfield

Autonet Insurance appoints Glen Marshall as head of underwriting. He was previously an assistant product manager at AXA, senior commercial vehicle underwriter and new products underwriter at Ageas, and manager of the technical underwriting unit at BDML Connect.

Aon Benfield appoints Luis José Pardo as CEO of its Peru business. He was previously senior manager of the reinsurance department at Rimac Seguros, has held senior executive positions at Pacifico Seguros and started his career as a loss adjuster.

Markel Markel International appoints Luke Tidey as an assistant marine underwriter in its Singapore office. He joins from their Stockholm office where he held the same position and was previously a marine underwriter with Vero Marine.

Luke Tidey

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On the move Who’s going where? Argenta

Barbican

Assurant

Argenta Syndicate Management appoints David Thompson to the board. He joined as head of claims and reinsurance operations and has held senior claims roles at Hardy and QBE Europe.

Barbican Insurance appoints Tim Mackenzie as an underwriter in their international casualty reinsurance division. He was previously an international casualty treaty underwriter at Faraday Re and has also worked at Royal & SunAlliance.

Assurant Solutions appoints Darren Billings as chief operations officer. He previously worked at Lifestyle Services Group (LSG) now part of Assurant, Phones 4u, Single Point and the Azlan Group. Tim Clancy is appointed as chief financial officer, Europe. He joins from LSG and has also been commercial finance director of Shop Direct, managing director of Going Places and finance director of Airtours. Mark Broadbent is appointed as chief risk officer, Europe. He joins from LSG and was

AmWINS

David Thompson

Willis Willis Ltd appoints David Martin as CEO. As chairman of Willis’ UK insurance business, he previously worked at Zurich Insurance and was managing director of UK corporate at AON.

AmWINS Group appoints Martin Reith as an independent director. With over 25 years’ experience, he was previously a nonexecutive director and CEO at Ascot Underwriting which he founded, and also worked at Mid Ocean, XL Capital and The Brockbank Group..

Bluefin Bluefin appoints Jon Higgins as head of private equity. He joins from Acxiom where he was managing account director of client services and previously spent 23 years at Aon, most recently as managing director, EMEA, Aon mergers and acquisition solutions. Toni Dines joins as business development manager from Thistle Insurance where she was business development manager, and previously held the same title for Dallas Kirkland, and was a broker at GRS Limited. 24 insurancepeople JUNE 2014

Malc Simpkin

QBE QBE appoints Malc Simpkin as chief information officer. With over 30 years’ IT experience, he was most recently CIO for Aviva UK General Insurance and previously their European CIO, and has also worked at Virgin Direct.

Tokio Marine Tokio Marine Europe Insurance appoints Peter Leslie as chief underwriting officer. He joins from Zurich where he was head of property lines for global corporate business and has also worked at Zurich, RSA, Axa, Marsh and Novae.

Zurich Zurich appoints Cecile Fresneau as chief underwriting officer for UK General Insurance. She was most recently Zurich’s head of personal lines for Europe, Middle East and Africa, and previously worked at Insurance Australia Group in Sydney.

In association with

VEHICLE SERVICES Collection, storage and sales

Darren Billings

previously chief risk officer at Barbon Insurance. Sue Northend is appointed as chief human resources officer, Europe. She was previously HR director of Assurant Solutions in Europe and was corporate staff development manager for the Guide Dogs for the Blind Association.

Novae Novae appoints Reeken Patel as chief risk officer. He joins from PricewaterhouseCoopers where he is a partner in the general insurance division and is also chairman of the London Market Actuaries Group and a member of the Institute and Faculty of Actuaries General Insurance Board.

Reeken Patel

by Andrew Newman

in association with:

Upheaval in Undershaft going to be London’s ‘Helterskelter’ skyscraper, so called because the top was intended to be sculpted like the fairground favourite. The official name was the Bishopsgate Tower, later upgraded to The Pinnacle. “London will never have skyscrapers because there’s no bedrock, unlike New York,” avowed ‘Soapy’ Luxon, my geography teacher back in schooldays. He stated that fact with the same Photo, Will Fox - Multi-license with GFDL and dismissive put-down Creative Commons CC-BY 2.5 as the similar one started work in London’s infamously employed by BBC EC3 zone in the City in the weatherman Michael Fish distant days before every prior to the Great Hurricane other bank or insurance of 1988. ‘Soapy’ was wrong office became a wine bar. too, but then he didn’t know And prior to “No Muddy about modern clay-based, Boots” signs on pub doors. deep pile technology. Or more relevantly, before the construction cranes started he Pinnacle commenced to outnumber the steeples. in 2008, but stalled four It’s both exciting and years later due to finance. At sobering to recall that for the first sight, it’s not immediately last quarter century the City apparent that work has has become one continuous stopped on this gigantic building site. concrete rawlplug in the A recent opportunity ground, sitting on multiple (courtesy of Robert Hiscox piles 65m deep. That’s and Hiscox Insurance – see because the site still creates page 3) allowed me to a scar around St Helen’s survey, from above, the Place and Undershaft (what a temporarily abandoned wonderful old London street building site that was once name that is).

The artist impressions of the original helter-skelter idea show that it would have diminished the neighbouring structures, including the Gherkin. Likening the St Mary Axe patch in the City to the multi-era building history of Stonehenge, the Gherkin would have become a mere bluestone to the Pinnacle’s larger standing stone, with the smaller neighbouring buildings being reduced to foot scraper level. My recent host, Hiscox

Insurance did in fact manage to delay the Pinnacle construction when granted an injunction in 2007 to obtain relief from noise and vibration pollution, rights of access, and water ingress protection. Decisions are still to be made as to what to do with this partially completed structure. So for the immediate future it’s very much a case of “Watch this space”.

The examiner expects… his column’s geographical connections are inherent in its title, but with ‘Soapy’ Luxon, my geography teacher in schooldays, having somehow wheedled his way onto this page (see left) I’ll take the opportunity to cast the net ‘beyond the road’ to ask how many readers in their school day youth found themselves daydreaming in geography class, staring at the giant world map on the wall, and concluding that the jigsaw ‘fit’ between Africa and South America was simply too good to be coincidence? How many young minds were on the cusp of unravelling the theory of continental drift and plate tectonics, but for an interrupted reverie due to a “pay attention!” admonish-

ment or, in some schools I’ve heard about, being struck on the head by a well-aimed flying blackboard eraser. That interruption was probably just as well, because I later learned that the moving continents theme was first voiced in public around 1908 (someone else had already stolen my idea!). So I dared to ask ‘Soapy’ why this theory wasn’t being taught. “Listen, the syllabus is wide enough already. You’re not here to learn… you’re here to get through the exam,” was the gist of his reply. And that advice stood me in good stead when I came to sit the insurance exams. Don’t write what you know… write what the examiner expects you to know! JUNE 2014 insurancepeople 25