insurancepeople issue 54 June 2015
Chris Collings See pages 5 and 10 Insurance People inside include:
Reg Brown Andy Hawkes
Malcolm Forbes-Wilson Steve Knight Cathy Taylor
Nick Giddings
Nick Magee Neil Williams
John Sims
rance “The Insu ith ew Magazin ty� Personali
surance “The In with ne Magazi ity” Personal
in association with
insurancepeople
leader
leader
www.insurancepeople.uk.com
Mind the Gap et again, the recent BIBA Conference sessions revealed the reality gap between insurer perceptions of the quality of their claims service levels, and the actuality as perceived by brokers and claimants (and now the FCA! - see page 2).
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Editor and Publisher
Consultant Editor
Andrew Newman
Brian Susman
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 Cover artwork: Carol Newman
In this issue 2
Late news
3
Market talk
As a neutral voice, celebrity host Jeremy Paxman quickly exposed these omissions in the panel debate on the first day of conference.
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Risk management
In his report on page 8 John Sims highlights the Paxman ‘raised eyebrows’ on learning of the existence of entire businesses feeding on the fact that “customers need extra help with their claims”.
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The role of the insurer-funded loss adjuster also came to the fore, and wandered off momentarily into the possibility of a better descriptive title for this important job function.
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Edicts from top management still occasionally fail to reach the front line. How else can blatant omissions and noncustomer friendly loss adjuster interface revealed in case study material be explained?
Commercial Director
June 2015
“The Fixer” or “The Closer” perhaps? Or perhaps not?
Andy Hawkes, Cardinus
BIBA Conference John Sims reflects on Manchester 2015
Interview Chris Collings, Swinton Insurance
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Hub technology Steve Knight
Commercial Director
Jeni Hall jeni@insurancepeople.uk.com 07969 510172
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Nick Giddings New developments at PowerPlace
www.insurancepeople.uk.com
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Printers
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insurancepeople PO Box 537 Tonbridge Kent TN12 9WG t 01562 862990 m 07981 993974 e adrian@insurancepeople.uk.com
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Andy Hawkes reveals ‘agile’ working
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John Sims reviews BIBA Manchester
Who said insurance is boring? The late Malcolm Forbes-Wilson memoir
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Reg Brown The Postcard Emporium
Also find us on:
ISSN 2043-9202
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News
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On the move
Insurance People is published monthly by Buttermere Wedge Publishing Limited. While every attempt has been made to ensure that the information contained within this publication is accurate, the publisher accepts no liability for information published in error, or for views expressed. All rights for Insurance People magazine are reserved. Reproduction in whole or in part without prior permission from the publisher is strictly prohibited.
Take Five Neil Williams
Pensord Magazines & Periodicals Tram Road, Pontllanfraith, Blackwood NP12 2YA
Who’s going where?
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12
Steve Knight reveals the next big game changer
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Neil Williams and the Editor compare home worker notes
On the Road Who was the Fat Controller?
JUNE 2015 insurancepeople 1
insurancepeople
Late News
in association with
New websites for Open GI and PowerPlace
Gap between claims service and expectations
pen GI and sister company PowerPlace have announced the launch of two new websites designed “ ... to provide the ultimate user-friendly experience with enhanced navigation and functionality throughout”, allowing customers to access extensive product information and video demonstrations.
n FCA review of insurance claims handling for small and medium-sized enterprises has found the claims service “ ...is not consistently working in the interests of many businesses, resulting in a poor claims experience”. The FCA assessed 25 firms’ involved in the settlement and management of claims, including 5 insurers, 10 insurance intermediaries (including 5 managing general agents) and 10 loss assessing firms. It also looked at the claims experiences of 100 SMEs. The review focused on larger claims of over £5,000. In 2014, a thematic review revealed that the retail claims experience for individuals was broadly positive. In contrast, the FCA found that there was
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Simon Hughes
The websites (www.opengi.co.uk and www.powerplace.co.uk) have been designed using the latest technology to ensure they are compatible with internet browsers and mobile and tablet devices, and to offer a more comprehensive understanding of the company’s range of technology solutions. Simon Hughes, sales and marketing director, Open GI says, “Not only do we have a bold new look but the improved journey means access to information is much easier for our users. The new websites form part of a broader strategy to expand our online content and improve our digital presence.”
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often a gap between SMEs’ expectations of the claims process and the service that they actually received, with some customers feeling that they had not been treated fairly. For example, in a significant number of cases, poor communication with the claimant led to delays in reaching a settlement. The FCA says that other examples of poor practice included: delays in the initial visit by loss adjusters; claimants feeling unclear about what actions they should take to minimise disruption to their business; dissatisfaction among SMEs about a lack of clarity over who, among the different parties involved in claims handling, was responsible for driving claims outcomes; and lack of clarity over the next steps in the claims process.
Allianz/TAM commercial offering A llianz Insurance has expanded its commercial lines offerings through Applied TAM, giving Applied TAM users access to Allianz’s Property Owners, Tradesman, and Shop and Office products via the iMarket system in 2015. David Martin, director of SME at Allianz Insurance, says, “Through Applied TAM, we continue to automate client portfolio
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management with our brokers, delivering seamless communication between our brokers and clients to enable us to properly manage client policies and claims in a more productive and consistent manner, as well as drive overall business growth.” Jeff Purdy, senior vice president of international operations, Applied Systems, adds, “Evolving consumer demand and
consolidation in the UK insurance industry are requiring increased connectivity and information exchange between insurers and independent brokerages. The expansion of Allianz’s SME product offering through Applied TAM further underscores Applied’s commitment to extending our commercial lines panel, ensuring our brokers have access to a wide range of products and
Jeff Purdy
services that address the individual needs of their clients.”
market talk
Andrew Newman
in association with:
BIBA Manchester – forever! nother successful BIBA outing in Manchester last month. I’ve always been keen to add my twopennyworth to the plea for Manchester Central to become a permanent home for the conference, and it seems that the groundswell of opinion runs in that direction.
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Having spent most of my time in recent years networking within the exhibition area, it seemed time to cut down on the foot slogging and sit and listen
for a change. One of the highlights was the Jeremy Paxman ‘rumble’ and the panel volunteers deserve credit for putting themselves in the ring. No doubt Paxo was obtaining a hefty fee, and was evidently fully prepared to earn it. The panel largely held their own, although AXA’s Amanda Blanc may not have led with her chin, but her well-known enthusiasm for eye-catching shoes immediately attracted the debate host’s attention. And
towards the end he attempted to catch Amanda out with a bit of ‘out of context’ skulduggery. BIBA attendance-wise congratulations for sheer
staying power go to Lloyd Hanks who this year overtook the record of IP Consultant Editor Brian Susman in the ‘BIBA Conference attendance through the Years Stakes”.
“ ” “Quote of the Conference”
Probably the shortest ever. Just two words – a sarcastically plaintive, “Oh dear” expressed by panel debate host Jeremy Paxman to a broker questioner from the audience who appeared concerned that brokers had found themselves having to adapt to so much change in recent years.
Commercial Express go ‘On the Road’ he Commercial Express team went out on the road in April for a series of road shows aiming to enhance relationships with its existing 1,300 agents, and prospective new ones. The team presented the company’s initiatives and its future plans, and so far they have visited London, Manchester and Birmingham.
together over the phone on a daily basis.
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At the time of writing, the final road show in this phase is due to take place in Belfast at the Apartment Bar, Donegall Square West. Managing director Duncan Pritchard tells me that the Belfast event looks like being very busy with plenty of last minute bookings still arriving at the time we spoke. “It could be the busiest one of all,” says Duncan.
Duncan Pritchard
The chosen venues have all provided informal settings, easily accessible in the city centres. “One of the most frequently mentioned aspects of the road shows has been the ability for agents to meet our underwriters face-to-face,” adds Duncan. “That’s important because it helps to enhance the relationship between people who deal
“The feedback so far has been extremely positive, with our new Training Academy attracting lots of attention. And of course from our point of view agents’ feedback on the service we provide, and changes they feel we could make are invaluable.
We’ve already taken some suggestions on board and will be working towards incorporating them, going forward. “All in all, the road shows have proved a resounding success with agents. This has been a new initiative for us, and one which we will certainly be repeating in the future.”
The Commercial Express Roadshow arrives in Birmingham
JUNE 2015 insurancepeople 3
market talk
Restructure for Ageas commercial lines Scholarship for former Alan & Thomas apprentice
Ageas strengthens commercial team spoke with Cathy Taylor, head of commercial underwriting and operations at Ageas about the recent commercial lines restructure aimed at providing brokers with the ‘personal touch’. Cathy tells me Ageas is already known for that approach, backed-up with award-winning service and agility to place nonstandard risks. “We want to drive our commercial lines business forward, to deliver against the targets for organic growth in this market, with a particular focus on the SME and fleet sector.
Brenda Rickards, business services manager, who retires after 21 years’ service.
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“We’ve expanded the digital team which means we can respond promptly to broker enquiries to save them time, money and help increase their revenue stream,” adds Cathy. “We’re open for business and have some innovative plans to deliver in the future. “Led by Allison Hughes, the team will focus on the brokers’ digital journey. In the spotlight will be the delivery of an enhanced
Cathy Taylor 4 insurancepeople JUNE 2015
Janine Hann will lead the Gloucester-based team as commercial underwriting manager – South. She
Beth Shaw
Allison Hughes
joined Ageas in 2009 and before that worked at AXA.
user experience on the website, products designed to be placed digitally, supported by simplified sales processes.” The reorganisation sees the aforementioned Allison Hughes transferring from the distribution team to become commercial digital trading manager. Three new commercial team appointments see Andrew Fletcher joining as commercial fleet trading manager. Based in Manchester, he will be responsible for the fleet account. He joins from Endsleigh where he was portfolio manager. He brings 28 years’ experience, 22 of which were at Groupama and then at Ageas in various motor underwriting roles. Also based in Manchester and joining as commercial underwriting manager – North Beth Shaw joins from Zurich where she spent 15 years in various underwriting roles, and takes up the reins from
Andrew Fletcher
The open market manual traded business team (including fleet) will be split in two between Gloucester and Manchester. Schemes business will continue to be led by David Bailey.
Scholarship place for Nick Magee ongratulations to Nick Magee on his recent achievement of winning a place on an insurance scholarship programme provided by Allianz supporting chartered brokers’ staff earning CII Diploma status.
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Nick, 21, works as an insurance advisor at Poole-based Alan & Thomas Insurance, and is a former apprentice of that organisation. He’s been there two years now, having joined straight after finishing his A Levels at Brockenhurst College,
Nick Magee
Hants. He already holds the Certificate in Insurance qualification and is now part of the broker’s property owners division.
44 cheers for Chris Collings FCA review premium finance
It can be done! here’s been some attention paid in these pages of late to the two management recruitment concepts – the fasttracking of graduate trainees, against - or alongside - the traditional career route of starting early at the bottom and working your way upwards from there.
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Consider the career track of Chris Collings, director at Swinton Insurance. His interview appears this month on page 10. He joined Swinton as a junior clerk straight from school at 15 in 1971 and here he is, 44 years later, sitting on the Executive Committee board. He was personally interviewed by the Swinton founder Ken Scowcroft in Manchester and tells me he is now on his 8th CEO. (Not an unusual number in today’s market over 44 years).
in association with:
He is in fact the longest serving employee at Swinton, and has seen all the changes that have taken place from a time when there were just ten Swinton branches. He began as a junior clerk at the, then, Swinton head office in John Dalton Street, Manchester and from there climbed up the ladder to be able to claim experience in practically every job in the organisation. He’s headed up many parts of the business and been involved and often instrumental in branch operations, franchising, acquisitions, insurer relations, business development, products and pricing, claims and represents Swinton at the highest levels within the industry. He even ran Swinton’s foray into car rentals! “It shows it can be done,” says Chris. “You can start as a young lad at the bottom and end up at the top of a big organisation. I’m quite proud of that actually.” And so you should be Chris. Cheers!
FCA takes a look at premium finance T he world of premium finance has been very quiet since implosion when the banking crisis struck, and it seemed only a matter of time before the FCA turned its regulatory eye towards this sector. As Simon Burtwell, head of general insurance at Ernst & Young points out, resort to premium finance is often a forced purchase for many insurance buyers. “In these recessionary times, a lot of people find their motor and household policies difficult to afford in a single hit and use premium finance to fund the cost. “Insurers and intermediaries need to make sure that consumers are fully aware of the additional charges inherent in using premium finance, and whether there are any third party organisations involved in the process. Also, that this funding mechanism does not change the annual nature of the underlying policies.”
When I contacted Andrew Doman, chief executive of Premium Credit, he welcomed the FCA report. “I think that it takes a balanced and reasonable approach to the provision of a monthly payments service that is critical to affordability of insurance for millions of UK households and small businesses. We will be providing as much support and guidance to brokers as we can in order to help them implement the FCA recommendations.”
The FCA review of premium finance reveals that insurers and insurance intermediaries do not always provide clear and easily understandable information about the overall cost of paying for insurance, meaning that consumers could struggle to compare the difference between paying upfront or in instalments. The premium finance review focused on the online sale of home and car insurance, and followed the customer journey up to the point where purchasers are required to input their payment details. The review included 13 insurers and 30 intermediaries, including four price comparison websites. The FCA says it found that, in some cases, people may not realise there is a price difference between the two. The FCA statement says, “If a firm is providing regulated credit, or is acting as a credit broker, they are required to provide a representative example setting out the interest rate; any fees or charges; a representative annual percentage rate (APR); and the total amount payable. “However, FCA researchers found a number of cases where this was either not provided, or the example did not include all of the required information, potentially limiting a customer’s ability to make an informed choice about how to pay.
Simon Burtwell
“The FCA review also identified a wide range of APRs, highlighting the importance to customers of having appropriate information to be able to compare pricing and understand the impact that the cost of finance has on the overall cost of an insurance product.” JUNE 2015 insurancepeople 5
market talk
in association with:
PowerPlace is changing ULR becomes Motorplus
PowerPlace going places s revealed in last month’s IP, PowerPlace is changing. CEO Nick Giddings and the team are working towards offering brokers a number of choices when it comes to trading with their chosen commercial lines markets. In his article this month on page 13 Nick outlines the kind of access to the flexible and efficient
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ways of trading that he believes will help brokers retain market share. I asked Nick if he would provide a further brief outline about the specific PowerPlace offering in this new world of automated service. “PowerPlace Micro is our original proposition, and that wholesale model will continue
to work to use the existing question set and ability to white label as the broker’s own B2C website,” says Nick. “PowerPlace SME is our new integrated solution which delivers the same single key and comparative panel benefits as Micro, but will allow brokers to trade direct with their insurers. The question set is to an industry
New launch for Motorplus T
offer clients best value from a current portfolio of over 50 personal and commercial add-on products, plus 24/7 claims management and first notification of loss (FNOL) services.
he Norwich-based Motorplus name goes back over 25 years. The first time I met them was in the dim and distant 1990s when the operation went under the name of ULR, and later ULR Additions.
ULR was acquired in May 2014 by 116 Cardamon Limited, the investment group specialising in claims management firms and medical reporting businesses. The new launch of Motorplus in May 2015 results from a full audit by the new owners of all previous operations and market positioning. Group commercial director Chris Chatterton tells me that this has involved a complete upgrading of all previous products and services. “Motorplus has now integrated a new broker sales platform to offer IT capability to high street 6 insurancepeople JUNE 2015
Chris Chatterton
brokers,” says Chris. “The platform has injected greater efficiencies into all our claims management and product delivery processes. “The rebrand to Motorplus heralds a commercial refocus, working with over 100 prominent UK insurance brokers. We are now offering a fully compliant suite of services and products. At our core is the principle of partnership and our mission at all times is to
“Key to our every move is that we capitalise on our strengths. After 25 years, the business evolved dramatically and outgrew its original ULR name. We’ve returned to our heritage and
standard and integrates with insurers direct via imarket. “PowerPlace Complex is a complete commercial data capture solution which can be used for both non-autorated, and auto-rated, risks. Brokers are able to tailor Complex appropriately to meet the needs of their customers.”
have taken the best parts with us. “We are taking nothing for granted. We’re re-pricing to ensure we offer best value. We’ve invested in state-ofthe-art claims systems, and have worked hard to ensure our proposition is both valuable and competitive. The launch of Motorplus signifies a fresh and forward-looking approach as well as brand clarity.”
Tim Ryan takes BIBA deputy chair n his capacity as executive chairman of independent broker alliance Una, Tim Ryan steps into the temporary BIBA deputy chair following the departure of the current deputy Stuart Reid.
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Tim admits his delight at taking up the challenge of deputy chair of BIBA. “Stuart has fulfilled the role with great passion and I look forward to continuing that. It’s an exciting time for brokers and I’m honoured to be able to represent the members at one of the highest levels within BIBA.”
risk management
Andy Hawkes CEO CARDINUS RISK MANAGEMENT
A work culture with significant impact for insurance
What is ‘agile’ working? Agile working is a culture that offers employees choice and empowerment around where, when, and how they work. It sweeps aside previous measures of success, such as time and attendance, focusing instead on results and performance. Andy Hawkes looks at the insurance implications ut of sight, out of mind is the phrase that springs to mind. The very nature of the work undertaken by agile, mobile workers means they are often more likely to need a better understanding of risk than many officebased staff. Furthermore they are often overlooked when it comes to risk assessment.
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The freedom of action in which agile workers find themselves focuses their attention on the successful completion of tasks. That’s the core of what agile working is all about – a successful conclusion, without much onthe-spot supervision by the employer. This of course can have a significant impact on the insurance aspects. Let’s take a specific example, relating to manual handling risks. Current regulations require employers to assess the risk, particularly relating to lower back injuries and the inevitable employers’ liability claim. The Manual Handling Operations Regulations 1992 supplement the general duties on employers imposed by previous legislation Health and Safety at Work etc. Act 1974 and the Management of Health and Safety at Work Regulations 1992 Agile workers are especially at risk as they frequently adopt postures that place prolonged strain on the spine. They then rapidly move from a static posture into an active one, without allowing time for the body to warm up. Although some manual handling injuries are due to a single incident, many are cumulative and result from carrying out the same activities repeatedly, with poor posture. And it’s not just the back that may be injured. Other muscle groups and joints such as shoulders, arms, feet and legs, are involved in manual handling, and may be damaged by bad lifting techniques. Agile workers are particularly vulnerable in many of the ad hoc situations in which they find themselves. The simple task of reaching into a car boot to move a load, and the
handling towards final destination can often be considered as a routine part of a bigger overall task, but even in this simple act the risk of injury can be quite high. o risk assessment is essential, particularly in the out of sight, out of mind world of the modern agile worker. These are the questions in need of answers:-
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The task: How often is the task performed and how long for? Does it have to be performed quickly?
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The individual's capacity: Who is doing the task? Are they physically capable of carrying out the task safely?
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The load: How heavy? What shape? Does it have handles? Is it hot or cold, or wet? Is personal protective equipment (PPE) required?
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The environment: Indoors or outdoors? Is it cold and/or wet? Does the space restrict good posture? Is the ground clear and flat?
The regulations require a ‘competent’ person to assess the risk, and if that person believes there is a risk of injury, the employer must take certain steps to reduce that risk. Fortunately there are plenty of options – see www.cardinus.com
What is ‘agile’ working? New work styles have become multi-dimensional – no longer simply limited to doing the same work, in the same way, and in the same time and place. People can now work where, when, and how they choose to maximise their productivity in whatever work style they prefer. Remote working, home working, mobile working, and hot desking are recognised practices, but agile working can equally be applied to fixed roles within the workplace. Agile working is often referred to as “Martini working” after a one-time drinks ad slogan – “Anytime, anyplace, anywhere”. JUNE 2015 insurancepeople 7
biba conference 2015
John Sims INDEPENDENT CONSULTANT
BIBA Reflections Lending a hand to the Insurance People reporting team in Manchester, John Sims reflects on this year’s BIBA Conference don’t know if you’re like me, but there are a few days in any given year that I really look forward to - my kids’ birthdays, Christmas Day, Ladies Day at Glorious Goodwood, and work-wise, the BIBA Conference.
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Every year BIBA delivers, and this year might just be the best so far. It seemed to me that it was busier than ever and, with almost forty new exhibitors, was really buzzing. The scale of the conference is impressive with close to 200 companies exhibiting, and around 6,000 people attending. How lucky are we as an industry that for two days a year we all get together for what to me is a great big party, and a very effective business opportunity as well.
That’s a view that’s shared with almost everyone I spoke to over the two days. David Randle from Tyser & Co was in the same camp as Mark when he told me, “Manchester works really well as a venue and every year I seem to get a nice surprise with an opportunity I hadn’t expected”. Everything is so close and central. You can’t walk into a bar or a restaurant without running into an old friend or two. I was walking from my hotel on Wednesday morning and, what should have been a 10 minute walk, took me half an hour as first I ran into David Bonehill, claims director at Ecclesiastical and an old friend from our Chubb days. Next it was another great mate and golfing buddy, Dave Hopwood, managing director at Bluefin Network. It’s such a unique chance to network.
Opportunities galore! As Mark Wooldridge, sales and marketing director at Home & Legacy said, “Every year I plan lots of meetings which is great, but I always seem to find an opportunity that I wasn’t expecting. It’s not cheap to exhibit here, but when we have our wash up the week after, we all agree it was worth every penny. Manchester works perfectly as a venue.” The thing I love most about BIBA is the sense of community, and that is why I feel that Manchester is the perfect venue. Personally I think that BIBA should commit to holding it there every year. 8 insurancepeople JUNE 2015
I know BIBA is great for sourcing new business opportunities but, if
we’re honest with each other, it’s really a big party. It starts on Tuesday evening and Dave Hopwood was telling me about the AXA party he’d attended at The Imperial War Museum. It’s apparently right next to Old Trafford and I’m assured that the three arrests the police made that evening, when United’s under 21s were playing City, didn’t involve any of AXA’s hundred or so guests! Wednesday is the day to do the business. Sure there are a few hangovers from Tuesday but nothing that compares to those seen on Thursday morning! or me this year was rather different as I was there as a free agent, so I could spend much more time wandering around and talking to the vast array of exhibitors. What struck me was just how diverse our industry is these days. I confess to not knowing what half of the exhibitors did until I spoke to them to find out.
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The quality of the speakers continues to impress and Jeremy Paxman went down a storm with people I talked to. In particular Neill Johnstone, chairman and CEO of Lorega was very excited that he’d got a ‘selfie’ with the great Paxo. More than that, he loved the hard time that Paxo had given the panel about the quality of insurers’ claims service. Neil spoke to Paxo afterwards and explained what Lorega do to help the customer who has suffered a loss. Paxo looked bemused and said, “So you’ve built an entire business based around the customer needing extra help with their claim?” Neil just looked at him with a knowing smile and replied, “That’s about the size of it.” Paxman just raised his eyebrows and wandered off in amazement.
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Manchester – the perfect venue
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The gangway carpet would cover more than 25 tennis courts
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There are at least 750 electrical sockets
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There are more than 1,200 items of furniture including 458 stools and 500 metres of electrical cable
There seemed to be more MGAs than ever, and that was clearly good for Reg Brown and Peter Staddon from the MGAA. Their stand was twice the size it was last year and every time I went to try to talk to them, I found it was so busy that I had to wait until I ran into them in the Yang Sing on Wednesday evening to have a chat. It seems that the MGAA is growing rapidly which is great for them and the industry as a whole. est stand this year? Well it was hard not to be impressed with the Markerstudy effort. As always they set the standard. The casino was hugely popular, and the theme of BIBA Las Vegas – excuse the terrible pun – was around being there to help when ‘the chips are down’ – boom! boom!
What both of these stands went to show was the importance of finding a theme that attracts punters to the stand. There were many more excellent ideas, but too many to name them all. There were some great competitions to be seen and I loved the Oak Underwriting one where the prize was a Lowry, sadly not an original even with RSA’s deep pockets. It was also great to see some other celebrities and sporting heroes. It may surprise some people but Jeremy Guscott for example has been involved in our business for many years. Jeremy and his partners have put together a unique approach to telematics and fleet risk management and have a number of pilots currently running with insurers. He is currently working with one of
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the nicest men in our business, Andy Hawkes at Cardinus. The rugby theme continues with Neil Back, Will Greenwood and Jason Leonard all involved in our market. Quite a few people mentioned the fact that Hiscox were missing this year. It’s very true that you’re noticeable by your absence. One cheeky wag, who didn’t want to be named, wondered if they felt they were really just a direct market these days – naughty! The BIBA conference is simply a wonderful business and social opportunity. It reminded me what a great market we work in and how Manchester is the perfect location for the conference. I look forward to seeing you all in Manchester in 2016.
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Personally I loved the Ryan Direct stand with its horse racing theme. Ryan’s sponsor a top jump jockey called Nick Scholfield and that was where the idea came from, I’m told. As someone with a tiny share in a racehorse, that resonated well with me.
“Come on guys, play the game!” One negative that I feel should be talked about is those companies who chose not to take a stand, but instead set up shop nearby. They were blatantly wandering around drumming up punters to come and see them off-site. I won’t name them here but they know who they are. Come on guys, play the game. The conference benefits the whole market and that’s a pretty cheap thing to do. BIBA is a not-for-profit organisation, we all benefit from the great work they do in lobbying government and undertaking research. Do the right thing and pay to play next year please.
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In association with:
We now pronounce you...
The great majority of the luminaries in today’s insurance world will tell you that insurance wasn’t necessarily on their radar when seeking out that first door of opportunity towards their subsequent insurance career path. But once on board, they not only survived the ordeal, but thrived on the opportunities. Result: A marriage for life. Wedded bliss. For better or worse. In association with Markerstudy Group, Insurance People presents the fourth in a series of interviews featuring some of the insurance people happy to have pledged their troth to this industry
Chris Collings Director, Swinton Insurance
A lifetime choice… Mancunian Chris Collings plighted his troth to the insurance industry straight from school in 1971, and for the next 44 years learnt the broking business inside out, to eventually become the ‘face of Swinton’ to the wider insurer audience. Swinton’s 58-year pedigree hasn’t all been plain sailing of course, particularly in recent times, and it’s the manner in which that lost ground has been recovered that opens this conversation with the Editor
AN: It’s been a recent bumpy ride for Swinton, hasn’t it? CC: That’s true. No-one can hide from the past, and in 2012 Swinton went through something much rougher than just a bumpy ride. It spurred a massive seismic change. The old board left the business and we became intensely scrutinised by the regulator. It was enormous.
determination. Remember - Swinton were the first company from the broking industry to receive that level of scrutiny from the new FCA.
AN: So how did Swinton react?
The best way to describe the whole event of cultivating major change is to treat it as a long journey. It’s been tough, very challenging and emotional, but we have emerged from it with a new strength, a stronger company and a really strong dynamic team.
CC: Once you are under FCA scrutiny, the redress becomes allencompassing and everything else has to take a step back. We were determined to address the issues that had been put to us with energy and
We now have a completely refreshed brand, new look branches, a new quality function, new business processes, a better customer facing IT system and a new evolving culture focused on the customer.
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AN: How many branches have you closed? CC: We have not actually closed branches, as in ‘pulling out’. We began a programme of ‘merging’ branches – about 150, creating bigger and better branches. Because of our growth and acquisitions we often had two branches in the same town so we’ve merged one into the other. There’s around 350 branches at the moment. AN: I see Swinton TV ads are back. They’re very clever, and such a welcome relief to the tedious infantile banality from other sources! Compared to the likes of
AN: How did Swinton and Markerstudy first get together to do business? CC: I go a long way back with Kevin Spencer from his days at Edgar Hamilton & Wellard. I remember Terry Wellard himself introducing me to this new kid on the block – Kevin still tells people that he has known me longer than his mother!
Harvey Keitel, Iggy Pop, and a certain opera singer this is the ‘thinking persons’ ad campaign! CC: I think that Swinton were the very first high street broker to advertise on television in the early 1980s. I can recall ‘the man with the big glasses’ and some great ad’s using Thunderbirds, The Flintstones, and the late Dick Emery! We went away for a long time, but we’re back now and the new ads are great. AN: So what’s the customer message from Swinton? CC: Our message to our customers is about being proud to offer insurance with a personal touch. It’s about putting the customer first, making them feel valued and building long lasting relationships. Our whole business has become customer centric and focused on quality and treating customers fairly, and it’s no longer driven solely by sales. That’s been a huge cultural shift. AN: Yes, it’s always been easier to assess return on investment by looking at sales, but less so when trying to measure the ROI on quality and service. How have you cracked that one? CC: It’s been a matter of faith for us, rather than an exercise in hard economics. We believe that the right way to do business is to always put the customer first and to provide a personal touch. AN: So the FCA must be reasonably pleased with what they see? CC: We have a good relationship with the FCA. And we are pleased to get feedback from many of our insurance partners that we are doing the right thing, and are ahead of many of our competitors in what we do.
There’s always been a good relationship and I think Kevin and Gary Humphreys have proved a lot of the early doubters wrong. They’ve done an amazing job and created a lot of inspiration for a lot of people. We’re very pleased to do business with them. We place a lot of trust in what they do, and they are a company that we enjoy doing business with. AN: And how do you cope with the Markerstudy ‘never a dull moment’ style? CC: Yes, I’ve seen it referred to as an “irreverent” style. I’d say it was more energetic and dynamic. They are very professional, especially the underwriting team who I think are very conscientious people. The ‘fun factor’ – or whatever you want to call it - can disappear out of businesses usually because of trading pressures, big change, regulation etc. But Markerstudy have succeeded in injecting into the business an energy and dynamism which we don’t often see in the traditional market. It’s refreshing, and to manage all that while still being a professional organisation is quite an achievement.
AN: As Swinton’s longest serving employee, with 44 years’ service under your belt, what would you highlight as the most personal contribution you’ve made during your career? CC: Starting so early, I have been part of Swinton’s amazing story and have been at the forefront of nearly all its big growth plans, the acquisitions, the franchising, the takeovers and all its highs and lows. And being around for so long I guess that I have contributed to a degree of continuity. Our industry is constantly changing and we see many people come and go, and so I think some of our business partners like that. One insurer labelled me as the “the steadfast presence throughout all the changes at Swinton providing a welcome constancy’. That’s a nice thing to say. Oh, and I think creating our famous Xmas cocktail party wasn’t a bad idea either! AN: What would be your overall market-related thoughts looking at both past and future? CC: I love the insurance industry. People say it’s boring, but it’s not. It’s
changing all the time, and being able to deal with, and meet, so many great personalities over the years has been absolutely fantastic. There’s so many people I’ve enjoyed working with, and I wouldn’t swop it for anything. But we are in a changing industry, and I think a lot of challenges still lie ahead for broking. It’s getting more and more difficult - not just for Swinton - but for many brokers, thinking about their strategies, and thinking about who their customers are, and how they are going to engage with them in the future. Customers’ buying habits are always going to change, and there’s always new technology on the horizon. Brokers have to engage more keenly with data enrichment and fraud prevention. We need to learn more about who we are insuring. I think that some direct writers are ahead in this area and brokers have to catch up. If we don’t, then we can easily become the weak spot for poor business, and longer term that’s bad for business. Brokers have got to work with their panel insurers to capture the right data and embrace technology, forge new relationships around performance and sharing longer term profitability. JUNE 2015 insurancepeople 11
Steve Knight FREELANCE IT CONSULTANT
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Hub technology will be game changing
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Technology - the big game changer A well-known figure in the world of insurance IT, Steve Knight recently became ‘semi-retired’ to take up freelance IT consultancy. Insurance People invited him to look back at a career spanning 50 years in insurance technology and software development. During that time he filled a wide range of senior roles across the industry and has traced all the major developments in insurance technology from the 1960s up to the present day y career began in 1966, writing programs in Assembler on an IBM mainframe. When I started out, we had Hollerith plug boards, and rooms full of punch girls entering data from coding pads.
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We’d never dream of entering our own programs – it was all batch input with no online access. There were no personal computers, laptops, or smart phones in the 60s and 70s just green screens and mainframe giants that were very expensive and time-consuming to program. Nowadays we talk about straightthrough processing and big data, but back then you needed a lot of kit in a large room to do very little. Moving through the 80s and 90s, I remember the advent of Rapid Application Development (which was a “forerunner of agile”) and the growth of research and development. Without R&D, a software house will eventually fail.
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Without R&D, a
software house will eventually fail
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My experience of the insurance industry led me to found Wasp Consulting in 1990 as an insurance technology consultancy that I led for 18 years and which is still going today. 12 insurancepeople JUNE 2015
I joined insurance systems specialist RDT in 2012, and since then have seen it grow from under 50 staff to around 110 today. I have been a key advocate of the disruptive* technology that RDT is building with its insurer-hosted rating hub. I firmly believe hubs are the way forward for the general insurance industry, and could be as significant as when direct writers first entered the market. Aspects like telematics, geocoding, and the MOJ Portal are important data streams, but are not game changing in the way that hub technology is. Apart from insurer-hosted rating, I believe the MyLicence initiative, Flood Re, and the advent of driverless cars will have far reaching effects for general insurance. And product distribution, rule manipulation, and advanced analytics will be fundamental in selling insurance products across all sectors of the marketplace. I am cautiously optimistic when it comes to agile software development, seeing it as a valuable framework, but one that needs careful management of costs and timeframes.
Disruptive technology is one that displaces a former method to create something completely new When it comes to packaged software, there’s still work to be done. When I first started offering packages, companies essentially wanted a black box solution. Then we saw a period when toolsets were offered, followed by software houses offering a starter for 10, with the rest customised. Although some or all of these variants still exist, insurers are again looking for black box-type solutions. But the issue is still integration – after all these years, plug and play is yet to arrive. Although stepping down from fulltime work, I still have a continuing role as a freelance IT consultant. I reckon that with a career spanning 50 years, I still have much to offer an industry that has changed dramatically since the 1960s, and is now entering an era when big data and sophisticated analytics are redefining the way insurance is sold.
Editor’s note: Steve also launched the fabled Yellow Book, an A-Z of insurance admin solutions for the UK marketplace. He researched, edited and published 31 editions, and was also a frequent media commentator on technology trends. Some may remember ‘Sting in the tail’, his long-running monthly column in Insurance Systems Bulletin.
commercial lines
Your commercial insurers, your way…
was asked recently whether the way brokers deal with SMEs will become automated in the future. Rather than provide a definitive ‘yes’ or ‘no’ I explored the definition of automation in this context, and what it means to our industry.
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I found a succinct definition and one that I feel is relevant – “A method of trading whereby technology is used to connect buyers and sellers” There are of course many elements specific to our industry which bring buyers and sellers together in an “automated” manner. This might include auto-rating of products, but it could also include data connectivity, or even data capture. For commercial lines, automation isn’t just about auto-rating. From our experience, the UK SME market is diverse, and therefore cannot fit into the ‘auto-rated’ box. We believe brokers need to have choice to deal with this market.
The ideal solution for all parties will allow an SME consumer (online) or a broker (in office) to begin at the most automated and efficient start point. The solution should also allow - when complexities arise - the opportunity for either the consumer, broker, or the underwriter to have further discussions and then conclude via the most suitable method.
Nick Giddings CEO POWERPLACE
should be to industry standard and integrate with insurers. l
There are new developments in the ways brokers and insurers can work together:l
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Original propositions which will continue to work as wholesale models and use existing question sets with ability to white label as brokers’ own B2C websites New integrated solutions which deliver the same single key and comparative panel benefits, but allow brokers to trade direct with their insurers. Question sets
Complete commercial data capture solutions which can be used for both non-auto-rated, and auto-rated risks. Brokers should be able to tailor these appropriately to meet the needs of their customers.
This is a turning point for the commercial lines industry. The market is evolving and brokers need to be fully equipped with a market leading solution, with access to a multitude of ways to trade. They can then choose the most suitable method dependent on their client’s requirements and varying risk complexities.
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 2015 insurancepeople 13
home working
Neil Williams EXECUTIVE AND CAREER COACH AND BUSINESS MENTOR NVW SOLUTIONS
Take Five The Editor takes five… well ten actually… over coffee with Neil Williams on a topic they both know well home working – during which the existence of the home worker’s ‘imaginary friend’ is revealed. The centrepiece for discussion rests on Neil’s Top Ten Tips for working from home to be found in his ‘Meaningful Moments’ as displayed at www.nvwsolutions.co.uk
Tip 1. Find a place in the home which can be turned into a proper working environment. NW: Although I have an office in the basement, it needs a proper spring clean and sort out. AN: Home offices tend to get a bit cluttered. The point being that if the home office doesn’t receive business visitors, then there’s noone to impress. Having said that, a regular tidy-up and hoovering the dust in the vents on the IT equipment is good for self discipline. The tidiest home office I ever saw was on an insurance millionaire’s yacht at Puerto Banús. The Med has some hefty storms, hence the need to batten everything down. Tip 2. Be disciplined. NW: If you are working on a particular day, stick to normal working hours. My danger - being a driven person - is that I will spend too much time down in my office, otherwise known as the dungeon! 14 insurancepeople JUNE 2015
AN: Yes… a good plan, but remember that home working cuts out commuting time and all the distractions of the ‘normal working hours’ workplace. How much true creativity happens between nine-tofive in the workplace? Some reckon on average, it’s not more than four hours a day – if you’re lucky! But the new homeworker suddenly finds there are seven hours, or more, available each day. Work itself falls between the two extremes of pleasure and chore – and it’s often found that the best work is done in the former environment. And it’s rare that the pleasure of a job well done can last for seven hours. You see, as soon as you start working from home (certainly if you are an editor or publisher) you find yourself automatically living with an imaginary lodger – usually termed ‘The Muse’. Now, she is very useful to have around, but her timekeeping is hopeless. She’s likely to knock on your door with an idea or two at any time through the 24 hours. She gifts
the creativity and enthusiasm at any time of the day or night, and then goes AWOL. So grab your sleep when you can, because although the ideas usually surface first thing in the morning, The Muse is just as prone to arrive at 11pm, 2am! or 4.40am (not sure why that precise time often crops up). Go with the flow. If in the mood, do the work straightaway - even if the Muse has appeared in the middle of the night. Home working offers that freedom. After all, there’s no specific rendezvous with soap, flannel, and toothbrush to hamper your creativity; no train to catch, car commute, or workplace timekeeping protocols. Having done all that, don’t be afraid to abandon ‘normal working hours’ for the rest of that day! Tip 3. Make sure you get out of the house in the morning, or at lunchtime for fresh air. NW: This is an easy one for me with having Jenny, our Cavalier King Charles to walk.
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The Muse can visit at any hour
Make time to get out of the house
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AN: When the adrenalin is flowing, getting out of the home is one of the hardest things, especially in winter, and if there isn’t a dog to walk. Just going out for exercise can seem so unproductive. Force yourself. Blow away the cobwebs, and even give some thought to any of the issues that The Muse has yet to help you solve. It’s possible that she may be waiting for you on your return, standing on the doorstep, tapping her imaginary rolling pin waiting to impart some answers. Tip 4. Network for social reasons, even if it doesn’t get you a lot of business. NW: You never know where business comes from sometimes, and if you sit at home all day you have no chance of picking up business. AN: I love networking, but commercial needs tend to squeeze the sociability. A free lunch is very nice, but it won’t pay the bills. Tip 5. Mingle with people occasionally. NW: Choose a coffee bar, or have a snifter at the pub. (Only one coffee or one beer!)
AN: Yes, but seek out your target audience. In London, One Under Lime, The Lamb in Leadenhall Market, or the Royal Exchange over at Bank spring to mind. (Odd that I don’t seem to spend much time in coffee houses). Tip 6. Be proactive at least once a day and look for an opportunity. NW: I do this naturally as I know there has to be a lot of sales/marketing activity to get a result. AN: At least one proactive initiative a day helps assuage any feelings of guilt that you are not being proactive enough! Tip 7. Be flexible. NW: At first sight this surely goes against number 2 above, but then if you have had a storming day (or the sun is shining) you deserve a break. Take it. I’ve adjusted to this over the last nine years so I should be OK on this one. AN: I was just about to knuckle down to some admin, when Neil’s ‘Meaningful Moment’ arrived in the Inbox. Drop what you are doing and strike while the inspiration is still hot.
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Tip 8. Personal development. NW: Each year take on something which is going to develop you as a person, or which will improve your business. Never stand still. This is a natural for a coach, where we spend a fortune on continuing professional development (CPD). I have been an executive career coach and business mentor to a wide range of people and organisations for four years, and I know coaching and mentoring get results. If you are as committed and willing to change your behaviours, there’s nothing to stop the achievement of long term goals. AN: Talking of CPD, although I haven’t worked in insurance since 1999 apart from some consultancy jobs, I’m still racking up the CPD points every day. It’s never too late to learn. Tip 9. Administration NW: One day a month concentrate on administration. I mustn’t leave my expenses to build over six months! AN: I would say, spend the equivalent of a day, but don’t necessarily do it all in one go. The Muse can be a great comfort, and rescue you when admin tends to pall. But she will inevitably desert you later, leaving you alone to catch up on the admin. Tip 10. Revise NW: Revisit these Top Tips in six month’s time to see how well you have done. Neil Williams welcomes coaching enquiries: “Please get in touch, even if it’s just for a coffee to start off with. Telephone 07970 225058 or email me at neil@nvwsolutions.co.uk”. JUNE 2015 insurancepeople 15
Who says insurance is boring?
Part Ten
The late Malcolm Forbes-Wilson penned his remarkable insurance biography just before he passed away after a long illness in April 2014. As related earlier in this series, medical malpractice schemes cover was one of the first of his many innovative coups. This one led to his placing for the Health Department of Victoria in Australia – a connection still going strong twenty years later
Malcolm Forbes-Wilson t was in the mid-1990s that the Australian broking firm for which I had placed the medical malpractice cover in Australia was sold to Aon. I agreed to move to one of their London brokers, Nicholson Chamberlain Colls, and within twelve months we took on the Aon Ltd name.
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My career might have stagnated in their international department, but in 1999 a small group of market visionaries reached the conclusion that the London insurance market needed to move away from practices that had remained almost unchanged since Edward Lloyd’s coffee house was mentioned as being the place where insurance underwriters and brokers transacted business in the late 1680s.
Many a’ slip The ‘slip’ was the Lloyd’s method of recording insurance contracts, and although it had moved on from being a piece of paper measuring 6 x 2 inches it was still possible in the 1960s to place a binding contract on such a document and uberrimae fides was the principle everyone followed. By 1999 each broking firm used a slip made of card, which was folded to the size 4 x 8 inches approximately with the name and pseudonym of the broker, details of the risk and, after placement, the underwriting stamps of the participating underwriters, plus the share of the risk they were prepared to accept.
hat was sorely lacking was a standardisation of the format, and in particular the order in which the details were set out. This meant an underwriter was forced to flit from panel to panel to find the information they were seeking.
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The aforementioned visionaries agreed a set of principles known as LMP, which recommended that a standard format should be adopted across the market. A team of individuals drawn from both underwriters and brokers (of which I was one) were tasked with producing an LMP slip that met the needs of over two hundred broking firms and the requirements of underwriters. It was not an easy job. Not only did many participants not easily accept change, but the task needed to address all classes of business. But I thoroughly enjoyed working on this initiative in addition to my day job, and when it was finished I was a convert to the idea that there was plenty more to be done to bring London insurance companies, brokers and Lloyd’s underwriters into the 21st century. Once my work on contract certainty was complete, I assisted in selling the concept of electronic accounting and settlement of premium, and more recently I have devoted attention to claims by sitting on the Electronic Claim Files Best Practice Group and setting up and commissioning articles for a regular newsletter. It has been a fascinating career – who says insurance is boring?
A caption competition in the making! Malcolm welcomes Princess Anne to Lloyd’s. Whatever he is saying HRH is obviously amused while his next-inline colleague creases up 16 insurancepeople JUNE 2015
Malcolm Forbes-Wilson (1946-2014) written in January 2014
The quest for Contract Certainty at Inception In 2000, unless a standard wording was nominated as the basis of the contract, the exact terms would be subject to negotiation after its inception. And of course, this very often became the subject of controversy between underwriter and broker and/or the client. A feeding ground for lawyers was created, both in the UK and, more dangerously, for those from the States. With the annual bill for legal fees being in the region of £100m or more, it needed to be addressed urgently. Aon led the way, I believe, in seeking the solution and a team with IT support was established to work on the issue. At this point I left the broking side of the business to devote all my energy to the project and very soon concluded - as client needs had become more sophisticated - that standard wordings for all risks would not be appropriate. Bespoke wordings would continue to be the number one requirement. After a period of trial and error we developed a cutting edge software system that we named ConCert, as an abbreviation of Contract Certainty at Inception, and then the challenge began to persuade our colleagues and other brokers to adopt the Aon solution. It was not an easy thing to do. There was an inbuilt reluctance to change existing practices, but eventually ConCert was adopted by all Aon’s divisions. And due to the timely intervention of the FSA, a deadline was placed on the market by
Editor’s note: Alas, that is the last instalment that Malcolm Forbes-Wilson penned. A fascinating career indeed – and an enthralling and uplifting story too. My own regret is knowing that our paths in the City must have crossed at several points in the Square Mile during the past decades, yet I never enjoyed the privilege of meeting him. His sense of humour (which comes across strongly in his narrative)
31 December 1996 to ensure all contracts delivered certainty at inception. In order to achieve the objective the entire market established a Contract Certainty working group that soon became the Contract Certainty Project Board and a Contract Certainty Code of Practice was eventually agreed. I was invited to sit on both groups. Having seen the contract certainty initiative established at Aon, I was made redundant, and was snapped up by Xchanging to take on a similar role in a full-time consultancy position. Xchanging, amongst other things, provides support services to Lloyd’s and the London insurance market. At that time it produced and signed policy wordings for Lloyd’s broking firms. It seemed oblivious to the fact that with contract certainty at inception it would be losing that aspect of its business. My job was to bring them up to speed and ensure they were prepared for the date set by the FSA for an agreed wording before inception to be in place. All through this time I remained on the Contract Certainty Project Board, in spite of objections from the Lloyd’s Market Association that represents the interest of underwriters. The LMA were overruled by both the underwriters and the brokers on the Board as they could see that Xchanging played a crucial role in the handling of the post-inception administration of contracts. A ‘first’ of which I am very proud.
and his innovative efforts for improvement and change ‘against the grain’ of contemporary bureaucracy suggest we would have had a lot to talk about. His professionalism; his opportunistic grasp for innovation; and his pragmatic ability to bring these ideas to fruition are much admired. He possessed all the the talent and the archetypical demeanour of the ‘insurance people’ fraternity that the
insurance business has nurtured for itself so widely across all sectors... and still does today. The devout wish is that Malcolm’s memoir might encourage more insurance market individuals who carved a reputation for themselves within their own sector to set down their thoughts for posterity. Not only for the current generation, but future ones too. If they don’t, then many marvellous stories and insights will be lost forever.
JUNE 2015 insurancepeople 17
“First day of the new compensation Act”
“The 1906 IFED ‘Runners’ in action”
Whatever shortcomings there might be within today’s so called compensation culture, this 1907 postcard (right) from the Reg Brown Collection reminds us that there was a time when there was no such thing as industrial injury compensation. The battle for employers’ duty of care to work people was a long and slow process, with many Acts of Parliament chipping away at the status quo over the years. This card lampoons the windfall (“This is a bloomin’ fiver”) aspect of personal injury, and one particular piece of legislation - the Workmen’s Compensation Act 1906. The card depicts a veritable heaven for workers, happily suffering various injuries, smiling all the way. And it also poses a very strong early hint of some of the fraudulent activity still seen today 108 years later
“I tripped on a hairpin and am very bad” In fact, it’s certain that this one has been deliberately preserved, and even the sender knows Miss Golding keeps a postcard album – she’s a deltiologist* like Reg Brown!
A collector of postcards – from the Greek, “writing tablet” Some clues present themselves:-
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s shown, this postcard was posted in the reign of King Edward VII in 1907, and the sender (whose name is unfortunately illegible) is writing to a Miss C. Golding at Deepway, Exminster in Devon. The Exminster postmark suggests it comes from someone local.
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Dear C Just one to fill up a corner in your album From ??? P.S. Please note the hairpin trip
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So, apparently this is yet another item in the Reg Brown Collection to be saved for posterity by an Edwardian domestic servant. That’s at least four we have come across so far in this series. How diligent those maids and butlers were to preserve these items, when most cards would presumably end up in the bin. 18 insurancepeople JUNE 2015
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The short address – Deepway – suggests a possible onetime ‘hall’ or ‘manor’. Deepway Lane is quite a long road, and a Deepway Court is there today, as a modern building development
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The sender’s reference in the greeting to the “hairpin trip” as depicted on the front of the card links Miss Golding to a probable maid’s role
Workmen's Compensation Act 1906 This Act built on earlier legislation on the rights of working people to compensation for personal injury caused in the workplace. It was by no means the first, or the last word, and it had specific exclusions at both ends of the labour market. The exceptions included non-manual workers earning over £250 per annum; casual workers employed ‘otherwise than for the purposes of their employer's trade or business’; outworkers; and family workers. The Act gave an injured work person a right against the employer to certain compensation where common law only gave that right if there was negligence by the employer. Getting the right was one thing. Getting the money was another, in those years ‘BCF’ – before claims farmers.
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insurancepeople
News
LASPO loses its lustre raham Gibson, director, Allianz Claims, believes that LASPO “is losing its lustre”. He says that the arrival of the Legal Aid, Sentencing and Punishment of Offenders Act 2012 appeared to offer a solution to the millions of pounds going every year on dubious personal injury claims. He continues: “Sadly, the benefits were short-lived. MOJ stats show that in the last six months of 2014, UK motor claims increased by 12 per cent to 429,276, compared to 383,731 during the same period in 2013. “So what went wrong? There’s been a lot of head-scratching all round, but a consensus is emerging. The consensus is that solicitors took 18 months to remodel their businesses to reflect the new way of working.
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Another factor is consolidation of law firms specialising in personal injury claims, reinforcing particular claim patterns and squeezing out the smaller players. “We’re now back to pre-Laspo claim levels and costs are accelerating all round. For many of us, who have invested a lot of time and energy into helping Laspo work, this is frustrating and disappointing. The danger is that if this pattern continues, we could see costs being passed on to customers – which nobody wants. “So it’s time to think again. What can we do as an industry to reduce our customers’ premiums? There are no easy answers, but if we work together and focus on causes, not symptoms, we’ll find a way to reward our loyal and honest customers.”
BIBA launches code of conduct IBA has launched its voluntary code of conduct for members. Steve White, BIBA’s chief executive, launched the code in his opening address at the BIBA conference in Manchester. He also announced that discussions have opened with the Insurance Brokers' Standards Council (IBSC) to explore how the two bodies can join forces to create a single voluntary code of conduct and guidance for insurance brokers.
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Jelf revenues up 1 1% nterim results for Jelf Group for the six months to the end of March show that revenues increased 11.0% to £43.7m. Organic growth of 4.2% was achieved, excluding the impact of acquisitions. The EBITDAE for insurance business increased by 18.2% to £5.3m; for employee benefits increased by 27.2% to £1.7m; and for financial planning increased by 167% to £299,000. Commenting on the results, Alex Alway, group chief executive, said: “I am pleased that all our businesses are trading
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Alex Alway
strongly and outperforming last year and we expect to continue this trend in the second half of the year. Our acquisitions are integrating well into the Jelf business and delivering positive benefits.”
BIBA/Mactavish guide to Insurance Act IBA and Mactavish, experts in insurance governance, are launching an Aviva and QBEsponsored introductory guide to the Insurance Act 2015, which comes into force in August 2016. The Act will entail changes to the way commercial insurance brokers practise, bringing
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opportunity and new considerations around contracting out, the new duty of fair presentation, and the associated reasonable search requirements. Commenting at the launch, Mactavish CEO Bruce Hepburn said, “Our depth of experience and close involvement, as one
of the core group of consultees relied upon by the Law Commission for empirical advice in support of the Insurance Act 2015, means that we understand only too well the depth of significance the Act will have for all UK brokers. It is vital that all parties understand the critical implications of this long
overdue change in the law – the first in over 100 years – and use the transition period before August 2016 to review processes and systems to prepare for the significant additional demands it places on them. Our guide sets out useful areas to consider before the change goes live.” JUNE 2015 insurancepeople 19
insurancepeople
News
BDML supports National Pet Month n support of National Pet Month, pet insurance intermediary BDML built a pyramid of pet food and raised money to donate to local pet charities. Staff brought in more than 650 tins of cat and dog food and collected over £120. Ross Barrington, operations director of BDML commented: “As affinity pet insurers we are delighted to support National Pet Month in its bid to encourage responsible pet ownership. There are approximately 65 million pets in homes across the country; pets give us so much and this is our opportunity to give something back. We are donating the tins and money to PDSA, Pets at Home and Stubbington Ark.”
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Pictured left to right: Roo Beckworth holding Poppy, Jackie Jones, and Darran Hewson holding Alfie
Imperium secures XL Catlin capacity mperium Insurance Management, the new MGA launched officially at the BIBA conference, in conjunction with Direct Insurance Group PLC, has secured capacity with XL Insurance Company SE. Imperium aims to provide UK and Irish brokers with specialist insurance solutions and plans to write £50m of gross written premium in five years.
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Tony Lawrence, managing director of Imperium, says, “I am delighted to have secured this deal with XL Catlin who will support our objective of growing the business profitably. The breadth of capacity, coupled with our sister company being a Lloyd’s broker, enables us to give brokers different solutions to help them grow with us."
Insurers' “dishonest defences” comment criticised nsurance law firm Horwich Farrelly takes issue with Jonathan Wheeler, president of the Association of Personal Injury Lawyers, over his recent comments concerning “fundamental dishonesty” which failed to target “dishonest defences” from insurers. Horwich Farrelly believes his comments simply highlight the need for insurers to be very clear on the cases they pursue. Section 57 of the recently passed Criminal Justice and Courts Act (CJCA) requires a court to dismiss a personal injury claim where a claimant is shown to have been ‘fundamentally dishonest’. Previously, a claimant could expect to recover the genuine element of a claim even if it was found that he or she had dishonestly claimed additional losses. “At Horwich Farrelly, even before the CJCA came into force, we have not found the judiciary to have any problem with interpreting what constitutes fundamental dishonesty and in fairly applying such a verdict,” says Ronan McCann, fraud
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partner at the company. “The insurance industry is facing a real threat from fraudulent claims and the courts appreciate that being lenient on proven fraudsters is hardly fair to honest citizens. These enhanced legal powers aim to close the net on fraudsters – they are a charter for honest policyholders.” He adds, “The real problem isn’t insurers trying to get out of paying claims, as Mr Wheeler suggests, but the cost of fraud raising premiums for everyone. Unfortunately due to the sheer volume of insurance fraud we are left in a position where all claimants have their claims carefully scrutinised to ensure they are genuine. It is this that sometimes creates some friction, but no-one should criticise insurers where they are correctly using all the tools at their disposal to tackle and prevent fraudulent claims. “We should welcome the changes introduced by the CJCA as they will inevitably mean honest policyholders will get better value from their insurance cover.”
Alex Guerin “Young broker of the year” IBA has named Alex Guerin from the risk management practice of Marsh as its national Young Broker of the Year for 2015. Alan Clarke of Higos received a highly commended national finalist award, and John Steven Newnes of Thomas Carroll was named as a national finalist. The award to Alex Guerin was presented by The Rt Hon William Hague FRSL MP at BIBA 2015.
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Rise in foreign lorry accidents tatistics from Accident Exchange indicate that foreign lorry accidents have shown an increase on 2012 figures, with Polish, German and Spanish HGVs most likely to be involved. One in three collisions involving foreign lorries is on the motorway, with accidents increasing by 14% since 2012. Liz Fisher, director of sales development at Accident Exchange, says, “A heavy goods vehicle in unfamiliar territory can be a danger. Common types of accidents that might involve trucks are cars getting caught in the blind spot of a lorry that is changing lanes or cars being rear-ended by a much bigger, heavier vehicle. Both are equally as dangerous and we urge all motorists to drive with safety and vigilance in mind at all times. “While safety is the paramount concern, getting involved in an accident with a vehicle from abroad can also lead to frustrating and difficult administrative complications.”
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MICRO
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Small businesses' 10% fall in motor premiums
Profitable first quarter for Ageas
mall businesses have seen their commercial vehicle insurance premiums reduce by a record 10% in the first quarter of 2015 compared with the same time last year. The reduction is the biggest drop for commercial vehicles in the last five years and leads to a six per cent reduction in the combined cost of general insurance for SMEs comprising their commercial package and commercial vehicle policies. The figures come from the BIBA and Acturis Insurance Price Index that tracks £5billion of actual premiums paid annually via insurance brokers since 2010. The reductions are primarily being driven by insurance brokers accessing competitive markets for commercial vehicle policies and reforms to motor insurance that have reduced the cost of third
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party claims, says the association. Graeme Trudgill, BIBA’s executive director, says, “This is positive news for the white van man and small businesses generally. Brokers are working really hard for customers which has led to increased competition. Brokers have also capitalised on the reforms to motor insurance that have occurred during recent years such as the 40% reduction to uninsured driving and the legal changes to reduce the impact of personal injury referral fees. “Small businesses can find it difficult and time consuming to find the right cover, but brokers know the market well and are able to work on behalf of customers to get the right cover at the best price.”
geas UK reports a first quarter net profit of £12.0m, compared with a loss of £4.5m in the same quarter of 2014. The overall combined ratio improved from 106.1% to 99.4%. Total nonlife GWP was £418.4m, compared with £459.2m in 2014, reflecting a “ … disciplined approach to competitive market conditions”. Total inflows from retail business was £40.7m (£41.8m). Andy Watson, chief executive, comments, “It’s been a profitable but challenging first quarter, with competitive conditions continuing in both the home and motor markets as a result of low premiums. In commercial lines however we’ve seen a good performance where we’re further evolving our proposition for open market, digital trading and schemes business. “At the same time we’re continuing the integration of
Andy Watson
our two insurance businesses, which is scheduled for completion by the end of the year, and are progressing with our new Ageas Retail strategy. Investment in our Partnerships business continues to deliver success with two new deals secured with Virgin Money and Volkswagen Financial Services. “Our commitment to delivering excellence of customer service continues to receive significant industry recognition evidencing our desire to do the right thing for our customers.”
Telematics based motor up 9% ewly released research by BIBA shows a nine per cent increase in the number of live ‘black box’ telematics motor insurance policies. BIBA surveyed the leading telematics insurance providers in the UK to determine the number of live policies currently in use in the market. There are just under 323,000 live policies compared with 296,000 in December 2013. The increase in sales
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comes as BIBA’s Manifesto calls on the new government to consider insurance premium tax relief for telematics policies for young drivers in a bid to reduce accidents and make driving more affordable. The Department for Transport is conducting research to demonstrate the value of behaviour based policies and have now completed the first stage, the feasibility study.
In association with
Islamic Insurance Association launched he Islamic Insurance Association of London was launched on April 30th, when its chairman, Max Taylor, was joined by the Lord Mayor of London, Alan Yarrow, and CityUK CEO Chris Cummings,. He said that London has the ability and willingness to drive the growth of Shariah compliant insurance products. The association has been formed to create a representative body to support the work of those in the UK re/insurance markets that are transacting Islamic finance. Insurance and reinsurance has been the last of the financial services sectors in London to establish
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Shariah compliant operations and products. Max Taylor told the Mansion House launch, “The formation of the Islamic Insurance Association of London is a tangible sign that London has recognised it has to play a role in the development of insurance solutions to the Islamic world. “London's tried and tested legal environment makes product development very straightforward, which has to be utilised. London also enjoys a non-discriminatory regulatory environment. It provides a level playing field that recognises the core values at the heart of the Islamic insurance proposition.”
Markerstudy launches new affinity division arkerstudy has announced the formation of a new affinity division, called Ultimate Insurance Solutions (UIS), following their acquisition in March of Ultimate Insurance Company. The new division will include Ultimate Pet Partners Limited, the UK administrative arm of the business and pet brands Purely Pets and Paws & Claws. BDML Connect
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Limited, the affinity-based insurance intermediary spanning the pet, motor, telematics and household insurance markets, also joins the division, along with specialist insurance broker and claims administrator, Supercover. Paul Hampshire has been appointed to the role of UIS managing director, tasked with leading the division and the 400 combined workforce.
AXA Advanced for HNW homeowners XA has launched AXA Advanced targeted at more affluent homeowners with higher sum insured requirements. Cover includes unlimited buildings sums insured, £5m public liability cover, three years’ alternative accommodation, contents and valuables up to £300,000 and worldwide cover for accidental loss or damage to contents. AXA Advanced is currently live for brokers to trade via the Applied Systems, Acturis, SSP and CDL platforms, and the product will be available on Open GI by the end of May. Carolyn Scott, head of household for personal intermediary at AXA, says, “Our entry level and mass market household products are very popular with brokers. However, we were aware that there was a gap in our offering to suit the needs of brokers’ more affluent clients and that is what AXA Advanced has been designed to address. “Along with AXA First and AXA Extra brokers now have a suite of household products available to them that they know will deliver the first rate claims service that AXA has become synonymous with, a service that is even more important for brokers advising affluent clients.” Enhancements to the product will be made during the year, with plans to deliver a manual proposition by 2016.
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New appointments at Broker Network roker Network has added to its 145-strong in-house team with the recent hire of four individuals, all with broking experience. Adam Thomson has joined the Network as product development director – schemes and will be focused on delivering new exclusive schemes for members of the network to help them to win and retain business. He will also be working with network members to help them to grow and develop their own schemes. He has experience in this area, having brought several
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bespoke schemes to market in his previous roles at OAMPS and AIG. Broker Network has also strengthened its broker development team with the appointments of three broker development managers for the Advantage and Countrywide propositions. Julie Branton, who joins the network from Ecclesiastical Insurance, and Greg Sands who joins from Lloyd’s broker Citynet Insurance, will focus purely on Advantage members whilst Chris Buchholz who was previously at Prism Network will look after a panel of Countrywide members.
CDL/IIL data enrichment service ata enrichment provider, Insurance Initiatives Ltd (IIL), is launching a new point-ofquote broker enrichment service, in partnership with CDL. It will provide brokers with real-time access to public and private data sources that can be used
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across all insurance product classes, “ ….. to dynamically adjust premium ratings and improve new business acquisition and renewal retention rates”. CDL commercial director, Nigel Phillips, says, "Following on from the launch of our enhanced insurer enrichment service with IIL earlier in the year, we're excited to offer this enhanced data enrichment service for brokers. The fully-automated solution, powered by CDL's real-time pricing module and enrichment hub, will allow brokers to enrich their quotes using data from a wide ranges of sources, enhancing their rating tools based on the customer's propensity to claim."
Allianz reports GWP of £555m or the first quarter of 2015 Allianz reports group GWP of £555m (£528m for the corresponding quarter of 2014). The IFRS operating profit before tax was £30m (£25m) and the combined ratio 97.7% (99.8%). For commercial business GWP was £277m (£276m) and the combined ratio 96.8% (98.7%). For retail GWP was £278m (£252m) and the combined ratio 101.1% (102.5%). Commenting on results, CEO Jon Dye says,“Allianz has made a strong start towards reaching our financial goals for the year. Achieving 5% growth in the quarter compared to the same period last year in very challenging market conditions is a commendable performance. The 97.7% combined ratio shows we are also delivering a strong underwriting profit and the absence of any major weather losses has been helpful. “The gross written premium for the commercial business has grown by 0.4% compared to Q1 last year. The commitment to profitably grow in commercial remains a key part of our strategy and this result is a reflection of our trading tactics in the market which has seen competition intensify in an unsustainable manner during the quarter. We will continue to trade
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pro-actively with our broker partners whilst maintaining a disciplined approach to underwriting. This approach is reflected in the commercial combined ratio which stands at an excellent 96.8%.” On retail business, he says, “The retail gross written premium has grown by 10.0% compared to the same period in 2014. The premium growth has been achieved right across the business and the 24% increase in the number of policies in force compared to the same period last year is also spread across the portfolio. “The combined operating ratio reflects the challenging claims environment in the private motor market and the continuing investment we are making in our business in areas such as raising the brand, improving our digital capability and the addition of new corporate partnerships to our portfolio.”
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Communication – most important employee skill ommunication and entrepreneurial skills are seen as the most important skills that UK managing general agents require of their employees,^ according to the third MGAA Matters Survey. When asked what are key employee business skills - over and above literacy and numeracy - 89% of respondents cited communication. Negotiation (49%), sales (46%), IT (46%) followed in order of importance with foreign languages ranked last with only 6%. Entrepreneurialism in
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MGA employees was also seen as the number one personal attribute more than other parts of the insurance sector, by 80% of UK MGAs. Being a self-starter, personable and resilient were all equal second (57% each) with loyalty not being seen as quite as important (49%). For those looking to enter the MGA sector, who you know or who knows you remains key to securing employment with 35% of respondents recruiting through personal contacts. Headhunters are used by 31%.
The utilisation of apprenticeships within the UK MGA market was also analysed. 31% of respondents said they were currently employing apprentices or had done so in the past and another 37% are actively considering this route. Peter Staddon, managing director of the MGAA, comments, “Talent is the lifeblood of an MGA especially in the early years following launch when teams are often small. The third MGAA Matters survey has clearly shown that soft skills have a vital role to play and
Peter Staddon
as an association the MGAA needs to drive forward the use of apprenticeships and continual education to produce the leaders and new business creators of the future.”
Tokio Marine Kiln product launch for unmanned aerial systems okio Marine Kiln has launched what it regards as the first comprehensive insurance product for Unmanned Aerial Systems (UAS) in the Lloyd’s market. The product, One Unmanned, was launched at the AUVSI Unmanned Systems conference in Atlanta. One Unmanned offers clients, ranging from UAS operators, manufacturers and service providers, protection under a single wording featuring multiple coverages, which the client can tailor to best suit the needs of their business. Once a client has selected one or both of the core products of UAS Hull & Liability and/or Products Liability, they can extend their
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coverage to include a range of risks including Aviation Hull War/War Liability, Personal Accident, Cyber, Intellectual Property and Employers’ Liability as required. Tokio Marine Kiln aviation underwriter Jay Wigmore who developed the product, said: “From filming Hollywood blockbusters to surveying oil platforms and even loss adjusting, we have seen a dramatic increase in the commercial use of UASs, and the risk profiles of our clients are changing as a consequence. One Unmanned aims to help them address all of their needs comprehensively as this important market matures.”
AMII calls for health and well-being body he new chairman of the Association of Medical Insurers and Intermediaries, Stuart Scullion, has called for a radical re-think of healthcare, including the establishment of a UK health and well-being body. Mr Scullion wants “new visionary thinking” to form a cohesive health and well-being strategy. He believes creating a UK body to manage the process from start to finish is needed, with stronger links between the public and private sectors.
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He says, “This is not a problem we can just throw money at - it will take more than that. Quite simply, we need to think differently. The GP crisis exemplifies why the political establishment needs to think smarter. With regular reporting in the media people about patients struggling to get an appointment with their doctor, the solution is not just about increasing numbers of GPs - as each leader pledges – but tackling the root of the problem and ‘managing wellness’ before the need to treat illness arises.” JUNE 2015 insurancepeople 25
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Gallagher re-structures broking and underwriting operations rthur J. Gallagher has unveiled a simplified operating structure, aimed “ ... to best serve customers and maximise opportunities for growth”. Gallagher Insurance Solutions — the personal lines, private clients and small commercial distribution arm led by Martin Oliver — becomes part of the UK Retail division, with immediate effect. This move brings together all UK commercial
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and personal lines broking teams into one division, “ ... enhancing cross-sell opportunities and ensuring customers have better access to the full range of specialist propositions available for businesses and individuals”. As part of this development, Martin Oliver will join the UK Retail executive team and report to incoming UK Retail CEO Stuart Reid when he joins the business later this year.
At the same time, delegated authority specialist OIM Underwriting will come together with Pen Underwriting under one leadership team led by Mark Armitage in a newly combined standalone underwriting division. Mark Armitage will become managing director of underwriting, subject to regulatory approval, and take up a position on the international division’s
executive committee, reporting into Arthur J. Gallagher International CEO Grahame Chilton, who comments, “These operational changes create a clear demarcation between our retail broking and underwriting divisions, align business units with their natural partners and ultimately make it easier to do business with us for customers, brokers, coverholders and insurer partners alike.”
Ageas tops satisfaction league for home A geas has retained its top customer satisfaction rating for home insurance, achieving a score of 91.9 out of 100. The Institute of Customer Service (ICS) first awarded the company its ServiceMark Accreditation for Home insurance in 2013, with motor and travel offerings following suit a year later. The UK all-sector average score was 76.0, the insurance sector’s next top score 83.5, and the
François-Xavier Boisseau
insurance average 77.1. The results are achieved by rating the responses of thousands of customers who
participated in the UK Customer Satisfaction Index online survey for a variety of public and private sector companies. The survey takes into consideration customer effort, satisfaction, loyalty and their likelihood to recommend and provides a benchmark across various industries. Commenting on the latest results, François-Xavier Boisseau, chief executive officer, insurance, says, “We take great pride in achieving
excellence in customer satisfaction and these latest scores reflect the importance our employees place on service across the business. It is particularly pleasing to be recognised by the Institute of Customer Service for the hard work we put in to nurturing a trusting, efficient and friendly service to all our customers.” Ageas also won ‘Insurer Team of the Year’ award at the Modern Claims Awards 2015 ceremony on 30th April.
Bluefin acquires Bennett Fozzard luefin has acquired Cheshire based broker Bennett Fozzard for an undisclosed sum – its first acquisition of 2015. Originally formed in 1984, Bennett Fozzard is a commercial and personal lines broker and was a member of Bluefin Network. The founders and all staff are being retained. Mike Bennett, managing partner of Bennett Fozzard
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comments, “We know that Bluefin is a well-respected broker in the market. Having been part of the Bluefin Network for many years now, it was a logical decision to further integrate our business with Bluefin as we know the senior management team already. It marks a new chapter for us and is an exciting opportunity for our business, staff and clients. We look forward to joining Bluefin and working with them to develop the business further.”
On the move Who’s going where?
Clare Dowling
Markel Markel International promotes Clare Dowling as underwriter for the contingency account. She joined in 2008 as underwriting assistant for the crime and contingency
accounts and was promoted to assistant underwriter of contingency in 2011. She was previously at Equity Insurance Group. Amelia Fenton becomes underwriter for the accident and health business. She joined Alterra Lloyds as underwriting assistant for accident and health and was promoted to assistant underwriter in 2013, following Altera’s acquisition by Markel. Before Alterra, she worked at QBE, previously Evergreen.
Nexus
Aspen Re
Nexus Underwriting Management Group appoint Stuart Rouse as chief operating officer and chief financial officer. His previous senior roles include CFO of Fusion Insurance; CFO of Towergate Underwriting; COO of Towergate Financial; CFO of Aspen's managing agency and the insurance division; and latterly Group COO of global insurance broking group HW Wood.
Aspen Reinsurance appoints Andrew Parker as head of its Australian branch in Sydney. He joins from Hannover Re where he was most recently head of the Australasian facultative branch and head of Inter Hannover Australian branch. At Hannover Re since 2006, prior to that he worked for Employers Reinsurance Corporation/GE Insurance and before Allianz Australia Insurance and MMI Insurance. Paul Wedlock joins as senior underwriter from Swiss Re Australia with whom he was for over 15 years, most recently as head of client markets Property & Casualty ANZ. Before that he worked for Munich Re Australasia and MMI General Insurance.
Stuart Rouse
Marsh Marsh appoint Sally Williams as director of risk and governance. She joins from National Australia Bank Group, where she was head of risk, London Branch, and a board member of NAB Europe. She was NAB’s lead relationship manager for the branch with the Prudential Regulatory Authority and the Financial Conduct Authority. Before joining NAB in 2005, she was group director of risk at Aviva.
SSP SSP appoint Ron Atkinson as head of insurer relationships. He previously joined Swinton Insurance straight from school and worked his way through the branch network and spent 12 years at Swinton head office in Manchester.
Willis Willis Group Holdings appoint Seth Peller as global CEO of its fine art, jewellery and specie division. He has over 20 years’ experience and previously held senior roles at Willis in both mature and emerging markets, including global head of casualty and CEO of the firm’s Argentina operations. Paul Scope joins as chairman of Willis Bermuda. Previously chairman and chief executive officer of JLT
Julie Ferguson
ArgoGlobal Argo Group member ArgoGlobal appoint Julie Ferguson as international property underwriter. With over 20 years’ underwriting experience she joins from ACE Global Markets where she spent over ten years, most recently as senior underwriter for the international open market team. She began her career with Eagle Star and has also held underwriting positions at Württembergische and Zenith.
Park, with 40 years’ experience. From 20032007 he was chairman and CEO of Park Group and in 1989 he established Park International, later acquired by JLT in 2007.
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On the move Who’s going where? Barbican Barbican Insurance appoint Paul Brown as marine insurance underwriting manager. During his 22 years’ marine market underwriting and broking experience he was UK marine manager at Chartis; head of marine at Bluefin; and marine underwriting manager at Commercial Union. Most recently, he was trading and underwriting manager – marine at Aviva, having joined them as senior international marine underwriter. Jeremy Soames stands down as chairman of Barbican Managing Agency after five years. During his tenure BMAL’s stamp capacity grew from £180m to £260m. Richard Hobbs takes up the chair from his current position as BMAL’s senior independent non-executive director. His previous civil service career includes insurance regulatory appointments, particularly in the Lloyd's market.
JLT Re JLT Re (North America) appoints Pei Wang as lead catastrophe modeller for the Canadian market based in Toronto, having worked as an in-house catastrophe modeller for RSA in Canada. Gregg Holtmeier is appointed head of casualty in North America based in San Francisco. He has previously held senior production roles at Guy Carpenter and Benfield. 28 insurancepeople JUNE 2015
Allianz Engineering Allianz Engineering appoint Stephen Albutt as head of engineering regions following the retirement of Phil Godwin. He returns to the commercial division after four years with Allianz Global Corporate and Specialty as a global account director. He was responsible for supporting the development of Allianz’s relationship with Willis and JLT. Prior to moving to AGCS, he held several
Tokio Marine Kiln
Stephen Albutt
roles within Allianz’s commercial division, including head of strategic account management, sales and distribution manager and regional manager for the South and Anglia.
ARAG
Stephen Morris
HSB HSB Engineering Insurance appoint Stephen Morris as chief underwriting officer. He joined seven years ago and was previously underwriting manager for the Energy team. Prior to this he was at RSA for six years as a construction power and engineering underwriting manager. He has worked in the industry for over 30 years including positions at Eagle Star and Cornhill Insurance.
Jason Howse joins ARAG as broker account manager for the Midlands and South West of England. His 20 years’ experience includes working at Allianz (where he gained his knowledge of legal expenses insurance) and AXA Commercial. Latterly he was a key account manager at Legal & General.
Canopius Former managing director of AEGIS Stuart Davies joins Canopius Group as group chief executive officer to succeed Michael Watson who remains chairman. He started in 1989 with Ernst & Young, joining the Sturge, Ockham and Highway businesses in 1993, being promoted to the board of Highway Insurance in 2003.
Tokio Marine Kiln appoint Andy Travis as regional development manager based in Manchester. With over 30 years’ experience he joins from Aviva. Prior to that, he was Catlin’s regional manager for the North of England for seven years, and previously worked at L&E, following which he spent nine years with Chubb where he established their first office in Leeds.
Cunningham Lindsey Cunningham Lindsey appoints Simon Willsmer as principal specialist, high net worth. He joins from Criterion Adjusters, where he was a senior loss adjuster. His career started in 1980 with Cunningham Hart. After working in adjusting practices, he was recruited by the Verification and Valuation Support branch of the United Nations Compensation Committee, based in Geneva. He joined Criterion Adjusters in 2003.
Simon Willsmer
by Andrew Newman
The Fat Controller odern digital communications continue to ease life’s chores. Take the elimination of the all-day indoor wait for special delivery. Today there’s not only advance warning to the nearest minute, but tracking of the van’s approach via GPS on screen.
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That thought led me to wonder how the ‘Fat Controllers’ of yesteryear would have loved to have such a toy on their desk. An animated map, as envisaged in James Bond’s tangle with Goldfinger where the good guy could keep a surreptitious eye on the villain with a bug secreted in his car. In today’s insurance scenario the bug is a GPS telematics device. The ‘villains’ are the development people out on the road, and the ‘good guy’ is the person charged with snooping on the field force to ensure maximum efficiency… and to generally interfere and nitpick. Sometimes referred to in the past irreverently as ‘The Fat Controller’ (after a rather pompous bureaucrat featured in a series of popular children’s books), it was ironic that in many organisations these worthies were rarely former development people themselves. Many didn’t even drive! Consequently their geographical knowledge wasn’t always up to speed, so a screen map would have been a good way of expanding that gap in their expertise.
A development man charged with an all-Britain roving commission got fed up with random requests from the geographically ignorant deskbound office staff while he was out on the road. A request to make a detour when in, say Huddersfield, to “pop over” to Teesside. Or to chase a query with a broker in Truro while he was actually in Exeter. His solution was to donate a couple of GB county jigsaw puzzles to the staff coffee room - and a personal one to the Fat Controller. It worked!
hat would life have been like for the Fat Controller in that pre-mobile phone world had he or she been granted the gift of today’s GPS voyeurism?
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Imagine such a personage settling down with a cup of coffee to watch the company car drivers’ every move as they rove around their respective patches, unaware that their location is being monitored. Let’s revisit some of the ‘doubtful’ occasions this column has logged over the years, some fully authenticated, others merely based on hearsay and rumour:l
Two or more cars leave the office, to converge immediately at a nearby road house for coffee. Other controllers in the same town might be watching the same incident involving their own development people. (All in the name of gathering market intelligence!).
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The company car stationary outside an isolated house somewhere in Scotland for several days. (The result of the driver visiting a broker’s home - where a three-day ceilidh was in progress).
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A regular summer Friday afternoon convergence of company vehicles in the middle of a field. (Strawberry fields forever!).
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An individual’s daily outward run that never varied – straight to the broker office where he spent his day. (This man was an unofficial forerunner of the broker-based underwriter. His employer turned a blind eye – he generated a lot of business! The arrangement only ended when they tried to promote him. He promptly left and went to work for the broker).
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Part-time extracurricular courier work (1) e.g. the potato round. (This one perhaps not as scurrilous as it sounds. It started innocently as a philanthropic exercise during a potato famine in the 1970s bringing spuds to the needy. Not everyone wanted to switch to pasta or rice).
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Part-time extracurricular courier work (2) e.g. delivering groceries in rural areas. (Many rural brokers worked from home, and regular callers would help out. All was above board, but it was not unknown once the local word got round, to find a mini-boot sale taking place with the neighbours on the broker's driveway).
Exactly how the Fat Controller would have reacted to these aspects of tool-of-trade car usage is impossible to say. But then, it doesn’t matter since this muse is just imaginary. Long live the memory of ‘freedom of the road’! JUNE 2015 insurancepeople 29
Y P P A H
FAMILIES
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Working with the right insurer can give you an equal feeling of satisfaction. What could be better than developing an understanding relationship, where you’re not second guessing the next move? Markerstudy Group of Companies have taken the time to get to know their broker partners, and to look after their customers – over 2,000,000 of them. And with an underwriting portfolio of £900m, we offer experience and stability in spades. From standard screen driven business to bespoke opportunities, we have the expertise to help you raise your game. There’s no need to gamble with your future growth…
Markerstudy is the ace up your sleeve. Zenith Insurance Plc and Markerstudy Insurance Company Limited are part of the Markerstudy Group of Companies. Markerstudy Group is a trading name of Markerstudy Limited, who is an appointed service provider for Markerstudy Insurance Company Limited. Telephone: 0844 324 6900. Registered in England and Wales No 03969511. Registered Office: Markerstudy House, 45 Westerham Road, Bessels Green, Sevenoaks, Kent TN13 2QB
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