Insurance People June 2016 by Insurance People

insurancepeople

Cover artwork: Carol Newman

issue 64 June 2016

John Sims BIBA report: Manchester 2016 See pages 6 - 8 Insurance People inside include:

Alan Cleary Chris Cowan Sarah Mallaby Chris Murray John Quail Dr Lynda Shaw Paul Wishman

rance “The Insu ith ew Magazin ty” Personali

Contents June 2016

insurancepeop issue 64 June

insurancepeople

The ‘happy workplace’

Late News

Market talk

BIBA Manchester 2016 John Sims takes the train to Manchester

John Sims BIBA report: Manchester 2016 See pages xxx and xxx

Vicarious liability

Chris Murray, Clyde & Co

hy do shareholders and owners occasionally appoint bullies to run their organisations? Of course, they want people who can get things done – but the means to evaluate the concept of the ‘happy workplace’ usually has no standing in that deliberation. It certainly has had no numeric status to work with in the past.

“Do not go gentle into that good night”

Reg Brown The Postcard Emporium

News Review

Gone but not forgotten

Alan Cleary

Marketing and demographics

Eagle Star

Chris Cowan, Clusters

Evaluating the ‘happy workplace’ Dr Lynda Shaw

The insurance industry is streets ahead of many other sectors in the way it treats its people, and the bullies are few and far between. And recognition for the value of the ‘happy workplace’ is now bobbing to the surface.

Chris Murray explores the new boundaries in vicarious liability

On the move Who’s going where?

On the Road

Alan Cleary advises “talk by the inch; listen by the yard” – among other things

Dr Lynda Shaw says it is possible to put a value on the ‘happy workplace’

So called FUD management behaviour (modelled on fear, uncertainty and doubt) can work, but it’s not effective in the long run, as Dr Lynda Shaw explains this month on page 13. “People are best motivated by positive stimuli”!

www.insurancepeople.uk.com

Chris Cowan believes it’s time to dismiss demographics as the sole ﬁlter of marketing

Editorial

Design & Production

Commercial Director

insurancepeople

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

Adrian Susman e: adrian@insurancepeople.uk.com t: 07981 993974

Jeni Hall e: jeni@insurancepeople.uk.com t: 07969 510172

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

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Commercial Director

Production Director

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Brian Susman

Jeni Hall

Adrian Susman

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Late News Markel appoints James Leach

Cyber crime threat to SMEs

arkel International has appointed James Leach as managing director of its newly consolidated accident and health and contingency business, part of Markel’s specialty and financial lines division. The new business combines Markel’s existing business in accident and health, focused on high risk sports, schemes, affinity groups, group personal accident and business travel, with its contingency non-appearance and cancellation business. James Hasting, managing director of the specialty and financial lines division, says, “It makes a lot of sense to bring these two businesses together and James is now focused on developing a growth and resourcing strategy for their development. They are markets where we have always been strong and we expect to build successfully on that.” James Leach was previously a senior underwriter in the specialty division at Markel and has been with the firm since 2009, when he was appointed as a contingency underwriter. He was previously at Sirius International and had an earlier career in sports management. James Leach

urich’s latest SME Risk Index shows that, while technological advances are vital to the running of small businesses, two in ﬁve (42 %) of SME owners consider the vulnerability of their technology to be the single largest concern to the success of their company. The survey of over 1,000 small and mediumsized businesses in the UK reveals that, of all the technological vulnerabilities, business owners see cyber-attack (38 %) as the most harmful to their business, followed closely by data loss and privacy breaches (37 %). Anne Griffiths, head of SME propositions at Zurich UK, says, “As consumers fully immerse themselves in the digital age, businesses must change to meet the changing needs of the market. When we speak to business owners, we are seeing that change, as small companies across the UK are going digital to stay competitive, to keep profitable and to meet the evolving needs of their customers. “As technology becomes more prevalent, so do the risks to sensitive data and information. It is encouraging to see the number of small businesses identifying cyber security as a major risk and focusing on operational investment to make their businesses secure increases. But as we learn more about the true dangers of hacking and data breaches, business must do more to educate one another and prevent the risk of cyber crime.”

Flood Excess Insurance launched lood Excess Insurance, an appointed representative of Advent Solutions Managements, has been launched, aiming to enable UK businesses to mitigate ” ... the huge increase in excesses following widespread flooding in the UK earlier this year”. It targets SMEs in flood zones where in some cases excesses are reported to have increased tenfold. To help highlight the issue facing SMEs, Flood Excess Insurance has compiled a league table of the most at-risk UK post codes in conjunction with JBA Consulting. Lincoln (LN1) tops the list of postcode districts most at risk from flooding. South Lanarkshire (G73), Bristol (BS1), Nottinghamshire (DN22) and Central Manchester (M4) complete the top five, while Penrith in Cumbria (CA10), a location still recovering from Storm Desmond in December, remains at risk, falling just outside the top 10. Chris Netherton, CEO, Flood Excess Insurance says,

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“Many landlords, business owners and managers are unaware of the potential implications arising from greatly increased excess limits, with many now set at tens of thousands of pounds. Weather events that are only expected once every hundred years have been occurring with greater frequency, meaning insurers are unable to continue providing the same levels of indemnity. With Flood Excess Insurance, UK SMEs can be certain that a high excess bill following a flood will not jeopardise their livelihoods.” Flood Excess Insurance offers both residential and commercial property owners (including landlords) in high risk flood areas the opportunity to insure their excess either online or via a broker. Flood Excess Insurance has been developed by Policy Excess Ltd, an excess insurance specialist, together with flood experts from The National Flood School. It is underwritten by Catlin Insurance Co (UK) Ltd.

late news

Market talk

in association with:

Andrew Newman, Editor

Seeing it through on fraud

‘The sales funnel’

Why are insurers unwilling to prosecute fraudsters?

“

These cash-for-crash fraudsters! It seems to me insurers crow about hav ing spotted the fraud, which justifies them not paying the claim, but then do nothing. No further action , no prosecution - letting the culprit off scotfree to have another go elsewhere. And I’ve got to carry on paying my ‘fraudster sub’ on top of my insurance premium! ‘Honest insurance buyer’

”

his rant from a friend – whom I would describe as a professional ‘bad service’ sufferer – naturally lays all his retail incidents involving insurance at my door. Being a member of the CII, I have a duty to listen, and protect our industry when I can.

However this most recent outburst harmonised with the same bee that I often ﬁnd in my own bonnet. Some insurers are very lethargic in this follow-through, and it

was very welcome to receive recent comments by Sarah Mallaby, head of technical claims at Allianz Insurance. “Ultimately if fraud is proven we will look to secure a criminal conviction, which may mean a prison sentence,” says Sarah. “It’s very important that genuine Sarah Mallaby claimants receive fair and reasonable compensation as soon as possible, but where we suspect fraud, or have concerns over whether our insured is to blame for an accident, we will investigate fully and defend all the way to trial if necessary. “In the first quarter of this year, Allianz Insurance won over 400 litigated claims involving casualty, motor and fraudulent claims with the total saving reaching £2.5m. These successes include a number of fraudulent claims, resulting in two criminal convictions, and the first finding of fundamental dishonesty in a disease case. The fraud trial wins alone have achieved company savings of approximately £250,000.”

What price demographics? hile wearing my one-time ‘marketing’ hat, the first (and last!) time I studied a demographic hard copy print-out (which indicates how long ago this happened), I reached the conclusion that it wasn’t going to be entirely relevant to an intermediary-only motor insurer. Even at that time, many regional brokers were operating nationwide.

The other factor was the sheer volume of risk categories, making it impossible for a small insurer to reach any meaningful conclusions. Or to create what Chris Cowan, MD at quantitative market research specialist Clusters, refers to as the ‘sales funnel’ in his article this month on page 12.

Market talk

“The ‘sales funnel’ is widely touted as the ideal concept of efficiently converting potential leads to paying clients,” says Chris. “But the number of individuals in that process diminishes the further you go down the chain. But of course the success rate can be dramatically improved if the leads are welltargeted in the first place, with the right messaging reaching the right people.” A factor that Chris emphasises is that today’s ‘millenials’ – the 18-35 age group - are the most underinsured generation in the post-war era. Plenty of scope therefore for insurance people to get those marketing hats on.

JUNE 2016 insurancepeople 3

Market talk Who wants to ride in a driverless car?

Driverless cars make Brits “uncomfortable” he fingerprints on the keyboard at the editorial desk were still warm after completing ‘Home, James!’ on page 28, which considers the future of automated assistance for tomorrow’s motorists. But then a message arrived from John Quail, CEO of consumer portal Claims.co.uk taking the technology a step further by foreseeing the truly ‘driverless’ car.

Dear Sirs, seeing We’re getting closer and closer to While . roads sh Briti hit cars rless drive ise this has the potential to revolution of the the way we travel, we must be aware could potential risks that driverless cars YouGov New ers. insur and rs drive for cause uk research commissioned by Claims.co. of the reveals that over two thirds (68%) would be British population said that they uncomfortable as a passenger in a driverless car. to the Further issues arise when it comes risk of a collision with a driverless our vehicle. Of the drivers polled in worry would they that said 56% y, surve st a that if they had to make a claim again lly driverless car, they would automatica be classed as ‘at fault’ by insurers. Technology can be a great thing if that harnessed successfully, but I worry to going is cars rless drive of the advent s. be fraught with more complex issue The general public look less than rless enamoured with the advent of drive s to ritie autho the for time it’s and cars, the on clear being by rns conce address the mas answers to the moral and ethical dilem cars brought up by implementing driverless to comes it when ially espec , roads the on ies polic and y safet of the aspects following an accident. After all, with research showing that lives self-driving cars could save 2,500 sooner the 2030, and now en betwe UK the in the ssed, addre are ties icali these techn better. Yours faithfully

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John Quail CEO, Claims.co.uk

Consumer portal Claims.co.uk provides the public with advice from a panel of solicitors specialising in personal injury within work accidents, medical negligence, and road traffic accidents in addition to criminal injury and slips, trips, and falls.

John Quail

See www.claims.co.uk

Untrustworthy telematics ike all other consumer supply industries, our one does occasionally find itself trapped in a spiral of terminological inexactitudes, as Winston Churchill once called them. Lies in other words, or perhaps we should just say “bending the truth”.

The statement in question is that the main aim of vehicle telematic devices is to improve road safety. What a useful smokescreen! The industry knows full well that these devices help motor insurers get around gender directives, and the strong criticism they receive at the cost of premiums for young drivers. But the consumer press has now cottoned on. A recent Whatcar.com study found the only reason the vast majority of drivers (89%) would use telematics insurance is to save cash, while fewer than two in five (39%) would choose to use it at all. Motorists (67%) said they wouldn’t trust a telematics device to prove they were a good driver. A reason behind this mistrust is that insurers predominantly use hard-wired telematics systems reliant on GPS-based data, as opposed to on-board diagnostics (OBD) systems which take data directly from the car.

Market talk

in association with:

Happy workplace

Wishman goes pier-to-pier

The Happy Ship he Royal Navy knows the value of an efficient ship, but efficiency alone is not enough. Operating an efficient, happy ship is better. It all stems from leadership.

In our world of insurance not every organisation can boast that it runs a happy ship. Why should they? How can you evaluate the rewards? What’s in it for the shareholders? But attitudes are changing. There is a cadre of leaders today leading the way, forsaking the ivory towers of yesterday, and using their gut instinct and personality to achieve real results. And evidence that this approach has a scientiﬁc basis is provided this month on page 13 by Dr Lynda Shaw. Dr Shaw is a cognitive neuroscientist and business psychologist aiming to provide a better understanding of the emotional responses not only of employees, but clients too. “Harnessing this power drives business growth, profits, and dramatically improves long term working relationships,” she says, and achieves this through professional speaking, business development workshops, and one-to-one sessions.

Paul Wishman in the swim T

he plan to swim from Bournemouth to Boscombe in this year’s pier-to-pier event by LV= group eCommerce director Paul Wishman takes place on 10th July 2016. “I’m doing this on behalf of Children’s Cancer and Paul Wishman Leukaemia Group, and in memory of Dan Francis who we lost last year,” says Paul.

She has lectured in psychology and neuroscience at Brunel University and conducted research on brain function and impairment, specialising in consciousness, emotion, and the effects of ageing. Having founded and operated two successful businesses herself, she has a first-hand understanding of how vital an efficient and happy workforce can be.

A great idea for a film! A modern day update of Dickens’ Scrooge and his treatment of his employee Bob Cratchit. Just imagine Dr Shaw playing the ghostly visitation on some of the well-known pompous and aloof ivory tower dwellers of the past (and more recent times). And the next morning’s transformation as these characters leapfrog into the office, full of beaming smiles, and “Good mornings” for everyone, polished off with a few heel-clicking side-leaps just for the hell of it. Just imagine!

See the link on http://uk.virginmoneygiving.com/PaulWishman

Market talk

JUNE 2016 insurancepeople 5

John Sims Consultant

Manchester! – the best conference location by far It’s hard to believe that another year - and another BIBA - has come and gone t might just be that 2016 was the best BIBA conference ever. Record numbers of people ﬂocked to Manchester and the sun even came out to put a smile on your face. Well done, BIBA! for staying in Manchester - the best location by a country mile.

For years I've driven up to BIBA by road and I now see what a huge mistake that’s been. On Tuesday afternoon Euston felt more like Leadenhall Market, as I went to board the “BIBA Express”. It was chock full of insurance people, and for good measure I also improved my carbon footprint so don’t tell me I’m not green. On Wednesday morning I turned on the TV in my lovely Aparthotel and

on came Good Morning with Piers Morgan and Gordon Brown - two of my least favourite people! It did make me wonder about BIBA’s choice of key note speaker this year. There seemed to be a mixed reaction when I asked people about Brown’s performance. Some thought he was pretty good, more thought he was wooden and trying to be something he isn't. He tries so hard to be likeable but it doesn’t really work I’m afraid, Gordon.

First day his may sound a bit sad, but every year I love to walk to the venue on the first morning, with all the anticipation of the conference and wondering who I will bump into first.

I knew it was going to be a great couple of days when the first smiling face I saw was Mark Coffey, MD of Oak Underwriting. I have a great fondness for Oak. My first foray into underwriting came in 1995 when I joined Cox Underwriting which eventually morphed into Oak some years after I left. Back then there was a very young lady called Sarah Willoughby who is now Oak’s director of operations and marketing, and who was just starting out in her insurance career. She was, and still is, one of the nicest people you could possibly hope to meet and even back then really got the importance of great service and that has been Oak’s mantra ever since. Spookily the second person I saw was David Hopwood, MD of the Bluefin Network who was also

the second person I ran into last year. Note to self – do the lottery on Saturday. My first port of call was to see my friends at Lorega where I was CEO a few years back. Neill Johnstone and his team are doing fantastically well and I was delighted for all of them when I heard about their MBO earlier this year. Lorega were launching a new cyber recovery product. Cyber seemed to be a hot topic everywhere this year and no wonder. Did you know that more than 75% of SMEs have experienced a cyber attack in the last 12 months? There’s been a great deal of noise in the industry about cyber for a while now, but I’m not sure we have really done enough for our customers to help protect them. In the HNW market no-one seems to have done much to offer a proper solution. There’s no doubt as an industry we need to do more.

Photo courtesy of BIBA

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BIBA report

Soapbox his is the point where I get on my soap box and no doubt divide opinion. I love our business, and I feel proud to be part of our great industry. That said, there is one area where I think we are living in the past, and that is our lack of diversity.

Let’s be honest here and recognise that we are still a white, male dominated market. We have to change and it is slowly getting better, all too slowly for my liking. One exhibitor decided the best way to demonstrate their brand value was to have two pretty models walking around dressed in not very much at all. To me that's just wrong on every level. But an ideal moment to don my reporting cap and canvass some opinions. Sadly, most of the men that I talked to thought it was just a bit of fun, but the women were as one in saying it was sexist, dated, inappropriate, unhelpful and blatant exploitation. BIBA agreed with my views and were frankly spitting feathers about the blatant breach of the protocols they set for exhibitors to have their staff dressed appropriately. Apparently requests to desist fell on deaf ears. The irony was that when I asked people who the models were promoting, the vast majority didn’t have a clue.

One thing everyone agreed on was the stellar performance of Julie Page who stepped in for Lord Hunt at the last minute and, by all accounts, was brilliant and gave Gordon a good old mauling. IBA is the perfect opportunity to reacquaint yourself with old friends and colleagues. It was lovely to see David Sweeney on the Covéa Insurance stand chatting to the old Sterling team. David is now a managing director at Brightside and I’m delighted he has fallen on his feet.

BIBA report

David gave me my ﬁrst break as a consultant and I’ll always be grateful. It was also great to see the likes of Sara and Gary Simmons, Michelle Neary, James Guthrie and John Blundell. They are a great team and I can only imagine how thrilled Covéa Insurance are to have taken on such an impressive group of people although seeing Simon Cooter’s smiling face suggests they probably know how lucky they are. t was good to see so many new exhibitors this year. There were over ten ﬁrst-timers and one that

caught my eye was a brilliant example of jumping on an opportunity where there is a clear gap in the market. Flood Excess covers customers for the amount of their excess up to £50,000. Insurers have been hitting customers hard in the recent past with the imposition of very high flood excesses in certain parts of the country. (You can’t really blame them when you look at the losses they’ve had to swallow). Well done to Chris Netherton and his team for providing such an important customer solution. It was also nice to see Philip West and Tony Hannon from the law firm Kennedys having their first taste of BIBA. Kennedys are insurance specialists and have come up with a terrific proposition for HNW insurers. Kennedys already work with AIG, Covéa Insurance and NFUM on the HNW side and really get how differently these customers need to be treated. It’s surprising that there hasn’t been a specialist legal solution put out to market up until now. I suspect it will really take off. ur industry is pretty unique in that people will really put themselves out for each other. On that note I ran into Stephen Meadowcroft from Gurr Johns. I had some challenges presented to me recently as an executor of a will. I rang Stephen to ask for his advice. Not only did I get great advice but he also went miles out of his way to help. Thank you Stephen, what a lovely man you are and what a great company you represent.

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o which exhibition stand did I like the most this year? There were some great ones to choose from. Ageas and their cycling challenge was great, if only for the sight of people pedalling like crazy and sweating profusely.

I also really liked the Home & Legacy stand for its simple but elegant look. However, the clear winner for me was Pen Underwriting and their Lego building model of Pen City. Every time I went past it was packed and people were having a great time building the model and reflecting on a childhood full of brightly coloured little plastic bricks. It’s so hard for exhibitors to come up with something unique and so all credit to Hana Graham, Pen’s marketing manager for this brilliant piece of marketing innovation. Simple, but so very clever.

Fun time t’s amazing how much fun people have at BIBA. Wednesday afternoon after about 3pm and Manchester Central really does turn into a great big pub. How people carry on into the early hours is a mystery to me, I must be getting old because I just can’t do it any more.

Fortunately I’m not alone in that regard and you could tell who the sensible ones were just by getting to the conference at 9am on Thursday and seeing who was around and not still in bed! I was chatting to Peter Young from Towergate and we were being rather smug about how fresh we were feeling. Peter recounted seeing a number of rather confused and unstable insurance folk wandering the streets of Manchester at midnight. One in particular was desperately trying to focus on a map on his phone but with little success. Peter, helpful as ever, suggested a cab might be a more sensible solution.

I also ran into one of my great friends who is embarking on a new challenge. Tony Parker has bitten the bullet and left Jelf/Marsh to set up a new broker called ‘Bright I’. Tony is one of those people that you really want to have as a friend. He’s a thoroughly decent man and someone who deserves to do really well with this new venture. It was good to see Chubb back at BIBA. Chubb is a very special company and I was proud to have been a part of bringing Masterpiece to the UK back in the mid-1990s. They have been missed and it is great for the market that such an iconic brand is once again gracing the conference. eremy Guscott pitched up on Wednesday afternoon to give the conference a bit of glamour. It’s always fun walking around with Jerry. He’s still as popular as ever, although it gets to be a bit of a challenge getting from A to B when he keeps getting asked for selﬁes. Jerry was at BIBA as a guest of MS Amlin who apparently hosted a lovely dinner on Wednesday evening and then took over the Sky Bar at the Hilton which proved to be a very popular watering hole for those who had the stamina to stay up late.

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I’ve worked on and off with Mitsui Sumitomo since 2010 and can tell you it’s a great company. Andrew McKee has done an amazing job in turning it around and making it into a pretty special and profitable business. I’ve made lots of friends there over the years and think of it as a second home. The acquisition of Amlin will inevitably see change but I wish all the luck in the world to the Mitsui folk as the integration takes shape. They are a very talented group of people and deserve a seat at the top table.

Incidentally there was a rumour doing the rounds that Jerry Guscott and I might be starting a new business together. Well, I couldn’t possibly comment!

And so we close the door on BIBA 2016. Before I sign off I’d like to thank the Editor for the opportunity to pen these observations. I’m thrilled that we will return to Manchester in 2017 and look forward to seeing you next year.

BIBA report

Chris Murray Partner, Clyde & Co.

New boundaries in vicarious liability Chris Murray considers the implications of Supreme Court rulings that relationships, other than those of employment, are in principle capable of giving rise to vicarious liability, provided certain conditions are met

been issued upon the basis that the alleged act falls outside the scope of work. Even if a repudiation is not overturned, a review of reserving would be prudent.

n two recent cases (Cox v MoJ and Mohamud v Morrisons) the Supreme Court has broadened the scope of vicarious liability. Firstly by expanding the employment relationships that it applies to (first limb), and secondly by extending the second limb relating to the employee's actions.

Actuaries and underwriters may need to change the scope of their enquiry to establish the chance of the policyholder being found liable for the unexpected behaviour of an errant employee.

Insurers will have to revisit existing cases to reassure themselves any repudiation should remain in place. Cases where insurers have declined cover on the basis that the act doesn't fall within the scope of cover will need reviewing and reserving will require scrutiny. Cox, which reviewed the first limb, concerned a member of prison staff accidentally injured by a prisoner engaged in rehabilitative work. It was found that vicarious liability would be imposed if the tort arose following employees' business activity on behalf of the employer, and the employer created the risk of the tort by employing the employee. The judgment confirms that the doctrine is not limited to defendants carrying on commercial activities. Providing the organisation is carrying on business activities, and has assigned those activities to the wrongdoer, vicarious liability will apply. Accordingly the doctrine will apply to any organisation. In relation to the second limb, Mohamud (which concerned the

vicarious liability

assault by a Morrisons employee on a customer) noted that two issues need to be considered. The first is the 'field of activities' that have been entrusted to the employee, which has to be addressed broadly. The second issue was whether there was sufficient connection between the position in which he was employed, and his wrongful act to make it 'right' for the employer to be held liable. The Morrisons assistant was employed to attend to customers, and had authority to ask people to leave. His conduct towards the customer was clearly unauthorised, but was regarded (tenuously in my opinion) within the 'field of activities'. As the conduct arose from his position, it was deemed just that the employer be liable for his abuse of that position. The second limb has been applied in a more liberal manner than previously, when vicarious liability only arose if the perpetrator's duties resulted in a special risk of harm, for example wardens in care homes abusing children in their care. icarious liability is likely to assume greater prominence in EL/PL claims in the future, with courts being prepared to hold employers liable for the acts of their employees, which are far more removed from their intended duties.

It is essential insurers revisit any relevant cases where a denial has

ill it be necessary for the prospective policyholder to warrant that thorough investigations have been made prior to employing staff?

Will existing staff have to be more thoroughly checked as part of the policy, with any failure being a breach of a condition precedent? How will the Insurance Act affect such a condition? Will the insurer seek an opt-out from the changes proposed by the Act? It’s a basic principle of insurance that it will not respond to deliberate reckless acts, but in this instance the employee, and not employing policyholder, would not have carried out a deliberate act. Will employers impose an indemnity clause in employment contracts? Will this be another deterrent to employing staff, and where possible using service companies – potentially a futile ruse as the key determinant is control and supervision responsibilities (Lane v Shire Rooﬁng [1995] EWCA Civ 37). Perhaps the contrary view is that we are not in a different position and I suspect none of the doomsday concerns mentioned above will be acted upon as the class of cases affected is simply too small. JUNE 2016 insurancepeople 9

Alan Cleary

“Do not go gentle Health War ning ided by people and should therefore be avo This article contains irony iously e themselves rather too ser who might conceivably tak Dear Reader, 80 in a few days’ time. Ten years to go until I hit my ‘best before’ date. The Editor has very decently offered me some space to execute one of my periodic fulminations. So here goes… a few things about getting on a bit and what age has taught me:1.

Sadly, a lot of my old friends are dead. I’ve made some new ones.

Cancer spotted in March; I’ve been very, very lucky - treatment complete by the end of the same month. As every good Editor knows, better a semi-colon than a full stop. Mr. Newman never misses an opportunity to cross out an unnecessary comma. On the other hand, Count von Susman’s specialty is the errant apostrophe. What a pernickety pair of punctilious punctuators they are!

“Totty” is now, sadly, on the ‘unacceptable words list’ and in future articles I’m just going to have to go back to my Scouse roots and use “judy” or “skirt” instead.

So, what have I learned since 1936? 4.

Never trust a house builder, an estate agent, a car salesman or a plumber. They will invariably try to mislead you. They simply can’t help themselves.

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About conduct? 9.

Never be afraid to say “No”. Remember - “No” is a complete sentence.

5. However hard you try, you can’t really change people. Only idealists and other blithering idiots think you can. As they say in New York, you can’t fix stupid. If all the money in the world were equally distributed among its people, it would be back in the hands of the original owners by midnight.

10. Get to the point quickly. Don’t over-negotiate.

6. The single most worthwhile marketing activity you will ever perform is writing ‘thank you’ letters. Yet virtually all the “marketing” which junior insurance people do is handing out tacky coloured business cards. People who are more senior buy lots of food and drink for other people in the hope that they’ll give them “work” in return. I’m afraid this is the sad way in which large parts of the insurance business still operate. Professionalism my foot.

13. Don’t ever be afraid to get rid of a difficult client or a dishonest one. It could be the best decision you ever made.

7. LinkedIn, Facebook and other social networks for the feebleminded are next to useless in the acquisition of new business. The graffiti of the modern age. As ever with social media, serious debate and a regard for the truth are far less important than people picking petty fights with one another.

15. I regret that, in one of my ‘day jobs’ as a humble (it says here) booking agent, I am compelled, from time to time, to have dealings with “celebrities” (I really loathe that word!). With few exceptions, these flash-inthe-pan narcissists are a serious pain in the backside. In common with 80% of our self-serving politicians and 100% of our mealy-mouthed civil servants, they utterly despise the great unwashed they affect to serve, care for, or rely on. This may

8. People do business with people who make them feel special.

11. Listen. Then listen some more. Talk by the inch, listen by the yard. Know the facts before you offer an opinion. 12. Don’t spend much time seated. You’ll get either a fat bottom or an even fatter one.

About “the outside world”? 14. If, after a dire main course in a restaurant, the servers ask, “How was everything?” for God’s sake tell ‘em the truth. They will most certainly resolve, there and then, to expectorate (or worse) on your next course. That’s why I never bother with dessert. Or cheese, come to that.

Alan Cleary

into that good night…” come as a surprise to you. Whether it does or not, I assure you it’s the truth. 16. An increasingly-encountered menace is out-of-control “personal assistants” (both male and female), hard-faced, rude and ill-tempered, who give the poor sod on the other end of the phone a hugely damaging impression of the person they supposedly speak for and “assist”. The boss never ever finds out. 17. Don’t take yourself too seriously, like many intermediaries do. What other people think of you is none of your business and, anyway, you don’t really want to know. 18. Laughter is indeed the best medicine. I never cease to chuckle at the inanities of the self-styled financial services “professions” and their share of self-satisfied City strutters, mostly devoid of selfknowledge (three “selfs” in one sentence) and unencumbered by any worthwhile qualification. 19. Dodgy lawyers are two a penny and four of them aren’t worth tuppence. Your interests invariably come a very poor second to their own. You can’t trust a dog to watch your food. 20. Never trust a loss adjuster who is out of breath and tries to sell you a watch. 21. In 2016, I’ve seen more ditherers among business “executives” than I’ve ever seen before. “We’ll have to see

Alan Cleary

what the committee says”. Rubbish. They’re ditherers too. Nowadays, decisive people are very few and far between. The comprehensives have a helluva lot to answer for. 22. I have absolutely no time for brain-dead couch potatoes (giving spuds a bad name), who squander their lives mindlessly gawping at reality TV and other such garbage. 23. Getting an extra 5% on every premium or fee you negotiate makes a big difference over the course of a year. Success is all about the aggregation of marginal gains.

Regrets? 24. I’ve had a few but, then again, too few to mention… except for one. Over the past few years, I’ve been dismayed by the fact that loyal customers have become more and more seen by banks, insurers, lawyers and accountants as easy meat. In the UK, unlike some places I could name, existing customers are seen as cash cows to be milked. Just look at the utility companies, the phone companies, the car trade, the property game.

A few brief lists? 25. Trivial distractions we could definitely do without and be happier for it? The Eurovision Song Contest; drones; travel agents; Russell Brand; Nicola Sturgeon; George Galloway; Subway; Game of Thrones; John Bercow; Benedict Cumberbatch; Camila Batmangelidh.

26. Bigger things we could definitely do without and be happier for it? The EU; Volkswagen; the House of Lords; McDonald’s; North Korea; RBS and those wellknown altruists at Goldman Sachs. 27. Misnomers? Animal Friends; Christian Science (neither Christian nor scientific) and Uber (just another blinkin’ middleman taking a cut). 28. Best advice? Open an “I don’t know” folder. (Better than a “couldn’t care less” one); Create - creating is one of the very few things that give most people meaning; Nettles are for grasping - procrastination is utterly self-defeating; Talk does not cook rice; Good enough never is; Be one of a kind; If you’re a bloke, never talk about yourself except when specifically asked to do so. All women can spot bovine fertiliser merchants light years away - even if men usually fail to.

The future? 29. I admire Nordic crime drama so much I’ve decided to become a serial killer. 30. Which will end first - the Chilcot Inquiry or the DFS furniture sale? 31. Roll on 2026! I quite like the sound of “nonagenarian”. When I put my pen down, I’ll say it out loud 4 or 5 times. If I remember... JUNE 2016 insurancepeople 11

Chris Cowan Managing Director, Clusters

Are demographics dead? Insurance industry marketing efforts rely heavily on demographics, but as Chris Cowan explains, there are pitfalls in over-generalised demographics which often fail to overcome the barriers on the path to converting consumers into customers or decades, demographics have been the go-to way to target new products and services or brands to different groups of people. Historically, the professional services sector has relied too heavily on differentiators which are too vague between leads - such as age and gender. What’s needed is a more considered perspective on what makes potential clients different, and how they should be ‘sold to’.

A simple example might be to think about men of a specific age. Of course, 28-year-old men will not all have the same interests, budgets, or ambitions. They may be at different stages of their lives, or have different career or personal challenges that influence their purchasing decisions, or simply have different opinions about any particular category or brand. With insurance firms and brokers, the journey to market their products and offering accordingly starts with a number of questions. Firstly, it’s often acknowledged that ‘upselling’ is one of the easiest ways to enhance mutually beneficial relationships between existing clients. In this case, referrals are key in establishing whether there is additional support that a broker or insurer can provide. In real terms, it’s about establishing how likely target customers are to recommend or buy again. For example, how pleased have they 12 insurancepeople JUNE 2016

been with the quality of the service, and how vocal have the customers been in communicating what other insurance requirements they might need?

“

Age and gender are too vague

”

Segmenting this audience is the ﬁrst step in establishing how (if at all) to market other offerings after a successful relationship has been established. For a new target audience, it’s paramount to explore how likely new customers are to trust a new, or unknown name in the insurance market.

insurance firms and brokers can assess the overview of their market place, and allocate budgets to different marketing methods as and when needed. In order to truly differentiate the brand or offer, it’s key to understand which factors (triggers, or barriers and motivations) have the biggest influence on peoples’ insurance choices - whether they want an insurance in the first place, and if so, which brand or supplier to choose. Understanding the different triggers that individuals might feel as incentives to purchase insurance (be it a corporate necessity, something which has been on their ‘to-do’ list for a while, or a fear of the risks if they were left without cover) can enable brokers and insurers to tap into those reasons through their key messaging in marketing, reflecting those concerns and triggers back to the target audience, and aligning their services to suit the buyer.

By understanding this, it then creates an opportunity for insurance ﬁrms to segment out a proportion of the target customers who would be most inclined to consider a switch in service provider – otherwise known as ‘propensity to change’.

These are just a few of the starting points that insurance firms and brokers need to consider to create a robust, cost-effective marketing strategy that boosts conversions from leads to sales. As such, insurance firms need to segment their audiences of prospects based on barriers, motivations and propensity to change, and to discard demographics as the sole filter of marketing.

s consumers in the 21st century, our purchasing choices are inﬂuenced on a daily basis by a variety of communications, be it TV advertising, magazine editorials, word-of-mouth, or prior experience. To create a marketing strategy that successfully targets leads in ways which are most persuasive to them,

There are nuances to be understood about the different segments of the broad consumer market to stimulate real and meaningful business actions. Ultimately, use of key data more closely aligned to the way consumers actually make decisions renders gender and age less important in the sales funnel.

demographics

Dr Lynda Shaw Neuroscientist & Cognitive Psychologist

Evaluating the “happy” workplace Dr Lynda Shaw explains how neuroscience - the specific study of the nervous system - can assist in the motivation of employees to work better in a more conducive environment, and in a manner that serves customers better hat motivates employees? Taking the time to ﬁnd out is key to the successful future for all insurance providers. Dopamine is one of the brain's pleasure chemicals. When behavioural neuroscientist John Salamone offered rats the choice of one pile of easily reached food, or another bigger stash twice the size behind a small fence, the brains with lowered levels of dopamine almost always took the easy way out, choosing the small pile instead of jumping the fence for greater reward.

Leadership

Rats are not the same as people of course, but if you create a happy dopamine environment, full of rewarding experiences, then we are motivated to do better.

Leaders who deprive the involvement from their colleagues often leave them feeling unwanted, detached and worthless. As a result, the cortisol stress levels and adrenaline gradually intensiﬁes leading to physical and mental illness, which in turn can be very damaging to the individual as well as the business.

“

Motivation is more effective with positive stimuli

”

Motivation is far more effective when using positive, instead of negative stimuli. We notice negative stimuli incredibly quickly in order to survive. If we encourage people with feel-good stimuli such as positive feedback, encouragement and rewards, employees are far more likely to approach their work with optimism and energy in the same way that customers who enjoy their experience are far more likely to sign on the dotted line.

workplace environment

Leadership creating fear, uncertainty and doubt (FUD) does work, but is not effective in the long run. Good leaders cope with challenges and can make decisions. They can self-reﬂect, are ‘people-orientated’, and can accept constructive criticism. Good leaders give each team member a voice to share ideas, and play a part in the decision-making process so employees are made to feel invested and valued.

But when employees’ individual personalities, goals, needs and

abilities are harnessed with proper focus and communication, the employee feels valued and valid which helps build a successful and intuitive working environment. This in turn empowers employees and alleviates stressful situations, calming down stress hormones such as cortisol which opens them up to broader thinking, better problem solving, and greater creative thought. But when the stress hormone cortisol is over stimulated for an extended period, we experience memory loss, high blood pressure and possible depression – all costly to the individual and to the business.

Emotion Using research and neuroscience, scientists can record brain activity with electrodes. Advances in neural imaging technology make it possible to determine the speciﬁc regions of the brain responsible for learning behaviours. Understanding emotion, and using it to market insurance is crucial to the future of successful insurance provision. See www.drlyndashaw.com

Dr Shaw’s Top Tips l

Leaders need the ability to be open minded – using lateral thinking and pushing the boundaries every now and again. Don’t always choose the obvious road.

Employees need opportunities to develop and grow, but in small chunks - both physically and mentally. Synapses in the brain grow and strengthen with new information, but can overload the system if we deliver too much all at once. Research shows we retain information better when we learn in chunks. Positive, upbeat delivery for short periods of training allows the brain to assimilate and use the information well.

Research now supports the efﬁcacy of gut feelings in monitoring our behaviour, as does our cognitive braking systems such as the prefrontal cortex. Use your gut instinct in every situation you can. JUNE 2016 insurancepeople 13

Reg Brown’s Postcard Emporium P

art of the fascination of insurancerelated postcards in the Reg Brown collection lies in sifting the clues to conjure an historical image of ordinary life at the time the card was posted.

Parades such as this one in Tunbridge Wells in 1912-13 feature largely in the Reg Brown collection, but this one is unusual in having been posted – not for a purpose relative to the subject matter on the card, but for a simple domestic message. Posted to Albert Hayden on 28 July 1913 “from yours Mabel, just to let you know what time train I shall come home by on Tuesday”. She departs about 7.40 and reaches her destination in East Croydon at 8.45. That’s it. Google maps suggests the home in Edward Road is a 17 minute walk from the station, but where has she been staying? What would Sherlock Holmes do? Elementary! Simply ask Watson to pass the Bradshaw. And we can do the same. She has obviously been sunning herself in Eastbourne.

tion The friendly society was (and still is) a mutual associa ative cooper or s saving ns, pensio nce, insura specialising in e state. banking before modern insurance and the welfar ions with afﬁliat trade or al, politic us, religio They often had postcard. social and ceremonial aspects as witnessed in the This one is the Ancient Order of Foresters.

Yet again in these images taken on the eve of WW1 it’s sobering to look at all those ﬂat caps, bowlers, and straw hats and wonder what became of their occupants over the next ﬁve years 14 insurancepeople JUNE 2016

News Review Uninsured but plenty of excuses ew research from Churchill Car Insurance reveals that motorists think they can talk their way out of being prosecuted by the police for driving uninsured. Research amongst recently retired traffic officers indicates that many drivers believe they can get away with not having cover by providing an excuse, but the police have heard it all. Motorists offer all manner of outrageous excuses for not having insurance when pulled over, from “the car drives perfectly well without it” to “it was my husband’s car; he is dead but he is still insured.” One motorist was driving a Lamborghini and claimed they were covered on a third party extension of their insurance policy for a Nissan Micra, which, when investigated, was shown to be wholly insufficient. Police report the top three reasons drivers do not have insurance are firstly not knowing that they were uninsured (38%) and secondly that they had poor administrative capabilities when it came to renewing their policy (33%). In more than one in eight (13%) cases, police officers state they believed the driver had deliberately driven without insurance, attributing the offence purely to criminal behaviours. Steve Barrett, head of car insurance at Churchill, comments, “Whilst some of the excuses given for uninsured driving might raise a smile, it’s a serious offence that can often hit the pockets of motorists who comply with the law. If someone is prepared to run the risk of being caught driving uninsured, then it makes you wonder what other risks they’re prepared to take on the road. This is why we give our customers uninsured driver cover as standard”.

Capsicum Re launches in Latin America einsurance broker Capsicum Re has launched Capsicum Re Latin America, which is led by Joe Smith, who has been appointed as CEO of CRLA and will be based in Miami. He is joined by Luiz Araripe, who has been appointed as managing partner of CRLA and CEO of CRLA Brazil and will be based in Rio de Janeiro. Rupert Swallow, CEO of Capsicum Re, says, “Launching CRLA heralds a new chapter in the Capsicum Re story. We have made fantastic strides in building out our offering since we established the business 30 months ago and have received an overwhelmingly positive response since our inception, demonstrating the widespread support for our customer centric proposition.”

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Markel “off to a strong start” eporting on Q1, 2016 results, Markel Corporation reports book value per common share outstanding of $589.86 at March 31, 2016, up 5% from $561.23 at December 31, 2015. Comprehensive income to shareholders was $397.0 million for the first quarter of 2016 compared to $281.8 million for the first quarter of 2015. The combined ratio was 88% for the first quarter of 2016 compared to 83% for the first quarter of 2015. The increase in the combined ratio for the first quarter of 2016 was driven, says Markel, by less favourable development of prior years’ loss reserves and a higher expense ratio, partially offset by a lower current accident year loss ratio compared to the first quarter of 2015. Diluted net income per share was $11.15 for the quarter ended March 31, 2016 compared to $13.49 for the first quarter of 2015. Alan I. Kirshner, executive

chairman, comments, “2016 is off to a strong start with solid contributions from our underwriting, investing and Markel Ventures operations. Our growth in book value per share for the quarter reflects significant returns from our investment portfolio and our long-term focus on underwriting discipline. We are well-positioned to continue to build shareholder value and to take advantage of profitable growth opportunities as they arise.” Commenting on the performance of Markel International, William Stovin, its president, says, “Conditions in the London market, particularly in energy, are difficult and against that background we are pleased with our start to the year. We have continued to generate underwriting profits, and are seeing level, or slightly better, volumes across the majority of our classes.”

Aon total revenue $2.8 billion or the first quarter of 2016, Aon reports total revenue of $2.8 billion, with organic revenue growth of 3%. The operating margin was 16.1%, and operating margin, adjusted for certain items, increased 20 basis points to 18.5%; EPS was $1.15, and EPS, adjusted for certain items, decreased 1% to $1.35; cash flow from operations decreased 8% to $273 million, and free cash flow decreased 6% to $221 million. "Our first quarter results reflect a solid start to the year as retail brokerage organic revenue increased four percent and adjusted operating margin expanded 100 basis points in Risk Solutions. In addition, return on invested capital improved through the disposition of a business in HR Solutions, and we effectively allocated capital highlighted by the repurchase of $750 million of class A ordinary shares," said Greg Case, president and chief executive officer.

IICF dinner raises over £10,000 he London Division of the Insurance Industry Charitable Foundation (IICF), a charity which combines the collective strengths of the insurance industry, held its first Annual Benefit Dinner in April at Landing 42 in the Leadenhall Building, raising over £10,000 for charities that support education in local communities. At the dinner, the IICF recognised the recipient of their first grant, Advance, which supports and creates new opportunities for women and girls who have faced domestic violence. Speakers representing the industry included David Brosnan, CEO of CNA Hardy and Russell Higginbotham, global head of life & health products at Swiss Re. Approximately 200 representatives across the insurance industry attended the

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event, which offered an opportunity for everyone to network while supporting important causes that will help to enrich lives and enhance local communities. These representatives included the members of the Associate Board; a newly created board of

young insurance professionals put together to help support the IICF achieve its aims. The Associate Board provides younger employees of insurance companies an avenue to give back to local charities, as well as an outlet for their passion for philanthropy within an industry setting.

JUNE 2016 insurancepeople 15

News Review National Windscreens launches ADAS service F ollowing several months of evaluation and roll out in key regions, National Windscreens has launched its UK-wide calibration service for windscreen mounted cameras, a critical part of the Advanced Driver Assistance Systems (ADAS) featuring in an ever increasing number of vehicles. ADAS offers a wide range of safety features for vehicles – such as autonomous emergency braking, lane departure warning, lane keep assist, night vision cameras and adaptive lighting – and most of these rely on windscreen mounted cameras in order to operate effectively. This new service, providing windscreen replacement and camera calibration at the same time, means that motorists will be able to drive away safely after only one visit to any of the 108 ADAS calibration centres operated by National Windscreens throughout the UK. Tim Camm, technical manager

for National Windscreens, says “The positioning of these cameras means that if windscreens need replacing then these cameras will also need calibration to ensure the safety systems continue to work as intended. “We have invested £1million in the equipment and training needed for this calibration at our 108 fitting

Ageas Office & Surgeries on PowerPlace pen GI has announced the availability of Ageas's Office and Surgeries product on its PowerPlace SME platform. The launch of the new product follows the recent announcement about Ageas strengthening its commercial digital trading team,

16 insurancepeople JUNE 2016

which focuses on brokers’ digital journeys, supporting them with a simplified sales process. This dedicated team has an extensive knowledge of the PowerPlace SME platform and is available to support brokers in all aspects of their integrated trading. PowerPlace chief executive officer, Nick Giddings, comments , “I am delighted Ageas has added another product to our SME platform, which further strengthens our offering and is a clear commitment from Ageas to our integrated e-trade solution.” This latest addition takes the PowerPlace SME Office and Surgeries panel to four insurers, with Ageas joining Allianz, AXA and RSA.

centres. Our customers can rely on the fact that we are using the leading calibration technology available providing the widest possible coverage of all vehicle makes and models. Customers will also receive a certificate to show the work has been completed to the individual manufacturer’s specification.”

Novae GWP up 9.8% n the ﬁrst quarter of 2016, Novae Group's GWP increased by 9.8% to £282.8 million. With the attritional loss ratio remaining “stable”, the group adds that “rates on renewal business remain under pressure”. Group chief executive Matthew Fosh comments, “Novae has made a promising start to the year. We continue to identify opportunities for further proﬁtable growth without compromising underwriting discipline. The improvements we have made to the business in recent years leave us well positioned to deal with challenging markets and we remain positive about the prospects for the group.”

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Eridge joins Transactor panel

Goneut not otten b forg

ransactor Global Solutions has announced a new partnership with Eridge Underwriting, which will see the MGA join TGSL’s motor panel of insurers. Eridge Underwriting is a start-up MGA offering niche and specialist motor insurance products, which are enriched with various data sources, to a select number of brokers. Although the business is new, the Eridge team has a wealth of experience in some well-known industry figures such as John Hamilton and Malcolm Clemitson. John Hamilton, managing director of Eridge Underwriting, says, “It is a long road to establish an MGA in the motor market, where you rely heavily on a professional and reliable response from the various service providers you deal with. We are delighted with the support we have received from many within the industry and none more so than TGSL who appreciated the demands on a new MGA such as Eridge and worked closely with us to deliver our private car and small CV products to market.”

FCA bans two he FCA has banned former insurance brokers, Terence Joint and Vroni O’Brien, who were directors of Joint Aviation Services Limited, from performing any significant influence functions and fined Mr Joint and Ms O’Brien £10,000 and £20,000 respectively, for failings in relation to the handling and misapplication of client money. The FCA reports, “Between April 2011 and June 2012, Ms O’Brien failed to act with due skill, care and diligence, which resulted in Joint Aviation transferring money to which it was not entitled from its client bank account to its business bank account, and she continued to do so after a client money shortfall was identified. Ms O’Brien also failed to take steps to understand her responsibilities as a director and the chief executive of Joint Aviation, and caused Joint Aviation to create and maintain inaccurate client money calculations and to breach specific CASS rules. “During the same period, Mr Joint failed in managing Joint Aviation’s business and consequently failed to take reasonable steps to ensure that Joint Aviation operated its client money accounts properly.”

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Eagle Star press ad, circa 1996

1996 press ad found in the archive of yet another famous insurer name no longer with us. To be honest, compared to Eagle Star’s earlier pioneering of vivid promotional posters it seems rather understated.

But then, the subject matter probably doesn’t help much. It must have been hard to produce a memorable image for a minor enhancement to the motor no claims discount scale, as compared to a visual of a house burning down in the middle of the night. In tune with the times, Eagle Star’s founding name in 1904 was British Dominions Marine Insurance. As it grew, it acquired other companies including some with attractive, yet less pompous titles like Eagle, Sceptre, and Star. But it hung out with ‘British Dominions and Eagle Star’ until 1937, when it is said that the founder’s son was asked if he was trying to sing a song or sell insurance, on a promotional trip to the USA. The move from Threadneedle Street to Cheltenham took place in 1968; a take-over by Allianz was fought off in 1981; acquisition by B.A.T. Industries happened in 1984, and the entity is now owned by Zurich Financial Services.

JUNE 2016 insurancepeople 17

News Review Markerstudy celebrates 15 years t Markerstudy's 15th birthday MSG Fest at its recently acquired Bewl Water, over 3,500 employees, friends and families gathered to enjoy a host of activities, fairground rides and musical entertainment. Highlights included dragon boat racing across the reservoir, 1,000 people camping and ‘glamping’, face painting, theme park rides and even a petting zoo. The event organisers didn’t stop there, with street food stalls serving free food, drink and £10,000 worth of ice cream during the day, followed by

2016 “starts well” for RSA SA reports that its underwriting results were good in Q1 with operating profits up strongly as a consequence. It adds, “Headline figures benefited from benign weather but underlying results also continue the improving trends visible in 2015.” Stephen Hester, RSA group chief executive, comments, "The year has started well for RSA. A streamlined and focused business model is already proving its worth, channelling our self-improvement measures more effectively to drive performance gains. Higher profits are underpinned by better attritional loss ratios and falling costs as planned. More volatile underwriting items have also gone our way this quarter. “We have laid out ambitious plans to transform operating performance, and so closing gaps to ‘best in class’ peers. We are ‘ontrack’ in this journey, though with much still to do. “The external environment is challenging, characterised by slow growth, competition and volatile financial markets. Hence our reliance on self-help as the route to a focused, stronger and better RSA."

18 insurancepeople JUNE 2016

performances from A-List live acts, The Feeling, Craig David and Kaiser Chiefs in the ‘big top’. Gary Humphreys, group underwriting director, comments, “MSG Fest was ‘born’ out of a desire to create our own, local festival for staff and friends, executed on a magnificent scale! We’ve already far exceeded our own expectations in the last 15 years and we wanted to give something back to the people who helped us get here - our staff, their families who have supported them and our esteemed friends.”

Abbey reports black box success orthern Ireland broker Abbey Insurance introduced a telematics based insurance offering six months ago, with the aim of reducing premiums for younger drivers. Launched in partnership with Tracker (part of the Tantalum Corporation), the Abbey Box is proving successful with over 600 units sold and reporting a 20% better claims ratio compared with its nontelematics business. Using Tracker ’s satellite technology, the Abbey Box monitors acceleration, braking, cornering and speeding, as well as other influential driver behaviour to calculate a Driver Score. This information is then shared with the customer, along with tips on how to improve their score. The Abbey Insurance Broking team reviews the policyholder ’s overall score at renewal and adjusts the premium either up or down, but drivers can see premiums reduce by as much as 50%, says Abbey.

John McMichael, insurer relations & business development director for Abbey Insurance, comments, “We chose Tracker because of its outstanding telematics pedigree and proven expertise in the insurance sector. Through our partnership with Tracker, we are now offering our customers, particularly younger drivers, a bespoke insurance solution that encourages and rewards safe driving behaviour. “From the outset of the launch, we’ve had an extremely positive reaction to Abbey Box from both our customers and staff alike. Customers find it easy to install, with quick access to accurate and helpful driving data, and our staff benefit from Tracker ’s intuitive technology that enables them to monitor and act on reports, right down to dangerous speed alerts. All of this helps us deliver a bespoke service and offer competitive premiums, which encourages safer driving and boosts customer retention.”

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TMK Aviation takes off in Asia okio Marine Kiln has launched its first general aviation consortium on the Lloyd’s Asia platform. The consortium will provide brokers with a single point of purchase for general aviation insurance through TMK Singapore, with Lloyd’s Asia syndicates providing the capacity and able to write lines with combined limits up to USD$15m hull and USD$200m liability on any single risk. The consortium will write all turbineengine general aviation aircraft, both fixed wing and rotor wing aircraft. Piston-engine general aviation aircraft are excluded. Supporting members of the consortium are Argo, Antares and Allied World. The consortium will be managed by Singapore based

TMK aviation underwriter, Graham Oddie. Commenting on the launch, James Walker, head of aviation, TMK, says, “As the aviation industry in Asia continues to grow, we have been keen to support this by offering the right insurance products. TMK and Lloyd’s already

have a strong reputation in the industry because of our A+ rated capacity and expertise at underwriting aviation risks. This new consortium is excellent for clients and brokers as they can now get all their aviation insurance needs from Lloyd’s Asia with only a single point of entry to the market.”

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

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

JUNE 2016 insurancepeople 19

News Review LV= wins fraud case L V=, represented by Pitmans LLP, have won a case involving a fraudulent claim worth almost £50,000. LV= paid out nearly £25,000 for property repairs to a Mr Coutinho, following a large escape of water claim. However, suspicions within LV= arose when he made a large claim for alternative accommodation. The claim was for just below £25,000, the limit of indemnity on the policy, for accommodation for two people. Having had this claim declined by LV=, Coutinho complained to the Insurance Ombudsman, who

Towergate announces claims legal panel owergate Underwriting has announced a new claims legal panel following a competitive tender. The panel comprises BLM, DWF and DAC Beachcroft. Over 20 ﬁrms competed in the tender process. The panel will act for Towergate and its customers where legal representation is required across multiple classes of business, including commercial, marine, agriculture and personal lines. Towergate Underwriting head of claims Jon Cawley comments, “The revised panel enables far more effective and efﬁcient performance management of our legal experts. This in turn will provide an enhanced experience for our customers delivering market leading expertise when needed, whilst helping to control expenditure to protect our policyholder premiums. “Supplier selection processes are labour intensive and time consuming for all the parties involved but the support from the legal sector has been impressive and we are tremendously grateful to all parties for their engagement throughout.”

20 insurancepeople JUNE 2016

did not uphold his complaint, resulting in him commencing court proceedings. LV= claimed back the repair costs paid out to the policyholder on the basis that the claim for alternative accommodation was fraudulent. At trial the court found that Mr Coutinho and the other family member claiming to be living at the risk address did not in fact live there. The court consequently dismissed the claim for alternative accommodation and found in favour of LV= in respect of the counterclaim, meaning Coutinho would be required to repay the

amount paid out under the policy for the property repairs. Martin Milliner, claims director of LV=, says, “We take a very dim view of insurance fraud and will ﬁght tooth and nail if we think someone is trying to deceive us, because ultimately this affects our honest customers. This particular case troubled us from the beginning and our expert teams, along with the help of Pitmans, were able to shine a light on Mr Coutinho’s story. This judgement sends a strong message to all would-be fraudsters and will encourage insurers to challenge claims they believe to be dishonest.”

Horwich Farrelly raises £18,000 anchester-based law firm, Horwich Farrelly, has raised £18,000 for cancer charity Mummy’s Star over the last year – beating their original target by £8,000. The charity was selected by the firm’s 700 employees last May with a 12-month fundraising target set of £10,000. During that time employees, clients and suppliers have been involved in a wide range of events, both to raise vital funds and improve awareness of the charity’s important work.

Activities ranged from a 50-mile bike ride from the firm’s Sheffield office to their Manchester headquarters, throwing wet sponges at partners and a night time assault course in the Scottish borders. Some employees went further in their own personal efforts, with one person holding a raffle at their wedding, raising £200, and another who shaved his hair raising a further £113. The amount raised for the charity is the highest in the firm's near 50-year history.

Pictured holding cheque: Peter Wallroth (left), CEO Mummy's Star and Rob Barrett, managing partner of Horwich Farrelly.

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DAS Law opens graduate academy

New MGA for commercial vehicles ukka Insure, an MGA start-up targeting van and commercial vehicle business, has been launched by entrepreneur and Action 365 CEO Sam White with a business model that aims to promote an ethical and inclusive ethos for both its staff and clients. The company will launch with a secured £30m capacity to write new business in the UK. Pukka’s business ethos will incorporate a strong ethical proposition, with all employees beneﬁting from a ‘John Lewis’ style partnership programme which will give them a share of the business’s annual proﬁt. The company will also donate to six charities chosen by Pukka Insure employees every year. Utilising existing insurer, reinsurer and broker relationships, Pukka will focus on “ … optimising its extensive knowledge of the claims environment to minimise the loss ratio and offer value-focused products, as opposed to volume of business”. It has access to historical data of 200,000 claims over 16 years. Sam White, CEO, Pukka Insure says, “My vision when launching Pukka Insure was to create a company which is built on the foundations of sound claims

AS Law is launching a graduate academy to offer the region’s brightest law graduates and post graduates practical, handson legal experience in a real-life setting. Brainchild of Samantha Brown, head of personal injury at the law firm, the DAS Law Graduate Academy will focus on personal injury litigation. It runs over a period of 24 months and pays a salary, which can help fund future postgraduate studies such as the Legal Practice Certificate. DAS Law has worked closely with local universities to promote the programme to their law school students. Competition has been fierce with over 50 graduates competing for six places in the inaugural academy. Samantha Brown, DAS Law comments, “This is an exciting development for DAS Law and, judging by the high level of response from students wanting to join the Academy, also for aspiring law students in the region. The academy will allow them to develop and apply legal skills such as case management and client care, drafting, advocacy skills, negotiation and dispute resolution.”

Sam White

management, namely minimising the loss ratio to maximise proﬁt. However I wanted to offer a working environment that enhances an ethos that we will treat our team and customers fairly, while promoting a business focus on charitable donation. “At Pukka we want to innovate and disrupt the traditional thinking in the market but by using our ﬁrm and deep understanding of disciplined underwriting and claims management. The team at Pukka looks forward to working with its insurer and broker partners to deliver our unique insurance proposition and commitment to sustainable and ethical business.”

Ageas net profit up 59% F or the first quarter of 2016 Ageas UK reports net profit up 59% to £19.0 million. The combined ratio was 99.0% (99.7%), “ … reflecting favourable motor performance”. GWP was up 6% to £444.9m. Chief executive Andy Watson comments, “We’ve made good progress during the first three months of 2016 and I’m pleased to report GWP and profit are both up compared to this time last year. Much of this performance can be

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attributed to our personal motor book, where positive rating actions ahead of a hardening market have resulted in volume growth. Further increasing our market share, we now insure 3.9 million personal motor customers in the UK. “Continuing our commitment to the broker market, we’ve had a successful first quarter in terms of new schemes in both household and commercial lines, where we’ve announced new strategic

Andy Watson

partnerships with Towergate and Arista, and with Darwin Clayton.” JUNE 2016 insurancepeople 21

News Review National Windscreens partners with Connected Solutions N ational Windscreens has been confirmed as the sole provider of vehicle glass repair and replacement services in the Connected Solutions programme operated by Industry Insights. Connected Solutions is designed as a one-stop shop for fleet companies and insurers. Steve Thompson, director at Industry Insights, says, “This means insurers only have to deal with one person to get the whole claim completed and the same is true for fleet customers who again will only need to contact one person should their vehicles be involved in

Left to right: Barry Donaldson, business development director, National Windscreens; Pete Marsden, managing director, National Windscreens; and Steve Thompson, director, Industry Insights.

Gallagher teams up with Cardinus rthur J. Gallagher has partnered with Cardinus Risk Management to offer its commercial property and property investor clients “a cost-effective nationwide service that will help eradicate the risk of underinsurance and its far-reaching consequences”. Gallagher has teamed up with Cardinus to provide property owner clients across the UK with access to building insurance valuation surveys that will ensure their assets are adequately protected. Greg Spiteri, national practice leader for real estate at Arthur J. Gallagher, says, “As the costs of rebuilding continue to rise, we need to ensure our property owner clients have all the tools and support they need to counter the risk of underinsurance, prevent any reduction in claims payment through ‘averaging’ and secure settlement as quickly as possible. “When property assets are underinsured, it’s not just a

22 insurancepeople JUNE 2016

shortfall in coverage for repair and rebuild costs that the owner faces in the event of a claim. Underinsurance exposes them to a raft of inter-connected consequences. If funds aren’t available to complete the rebuild, increased borrowing may be required or the rebuild period extended with all the associated negative impacts on balance sheet. Tenants could even see themselves dispossessed and the owner exposed to legal action from lenders and leaseholders as a result of the inadequate levels of insurance cover, bringing brand and reputational damage into the equation too. “With its UK-wide network of professionally trained surveyors and consultants, and more than 20 years’ experience specialising in building valuation surveys, Cardinus was the natural choice of partner to support our own national network of more than 50 client-facing branches with an independent quality service.”

an accident or incident that needs repair work carried out.” Commenting on the new relationship, Pete Marsden, managing director of National Windscreens, says, “Creating a strategic alliance with Industry Insights is a significant development for our business. With Steve possessing in-depth knowledge of our industry, having worked from a young age in his father’s family business repairing and replacing vehicle glass, we are proud that he has chosen National Windscreens to provide this service.”

Home for 18 months ritish renters spend an average of 18 months in a rented property before moving on, according to new research by landlord insurance provider Direct Line for Business. Birmingham has the lowest tenant turnover, with renters staying an average of two years and four months in the same property. Cardiff on the other hand, has the highest turnover, with the average property being vacated less than a year after being filled. Leeds (12 months) and Bristol (14 months) also have a high turnover of tenants. The analysis also looked at the average time it takes to fill a vacated property, revealing that, on average, it takes a landlord 22 days to find a new tenant. This could result in an average loss of £547 in uncollected rent. When calculating the yield for a property, landlords need to take into account this void period and ensure they have sufficient resources to meet any mortgage, ground rent or other charges, says Direct Line.

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Claims innovation key for brokers nnovation within add-on products to introduce ‘real-time’ claims experience for clients could help both customer retention and dealing with regulatory issues, according to research of UK brokers by real-time travel insurance solution provider PassportCard. According to the research, undertaken to coincide with the annual BIBA conference, 73% of UK brokers surveyed thought that bringing innovation to the market via new products is a real opportunity to increase the frequency of communication with their clients. The research conducted this year surveyed 233 national, regional and provincial brokers on travel insurance in the UK market and found that 29% of brokers assume that their clients are not satisﬁed by their current travel claims service experience. When surveyed, brokers stated that products that used advanced technology to streamline the customer journey and allowed customers to settle claims within minutes would reduce customer complaints within travel insurance. Of those surveyed, a third of respondents believe

Sharon Haran

offering innovative new products is a useful tool to communicate with HNW clients and would give an obvious upsell to their travel product portfolio. Sharon Haran, CEO of PassportCard says, “Terms like ‘innovation’ and ‘disruptor’ will become even more major topics for discussion in the insurance profession and technology is being integrated into all classes of businesses. With the results of our research in mind, we feel there is an opportunity to work with UK brokers to help them ﬁnd ways to satisfy and retain clients, gain more commission plus navigate the various regulatory pressures that can impinge brokers’ growth potential.”

Five-year low combined ratio for Skuld arine insurance provider Skuld has announced an improved combined ratio as well as a positive bottom line result of USD 13 million for its 2015 financial year (USD 13.5 million in 2014). Gross earned premium in 2015 amounted to USD 410 million. “With a strong focus on upholding rates and retaining quality members and clients in a challenging market, and through the diversification of core business … “ Skuld delivered its best combined ratio in five years at 95%. Ståle Hansen, Skuld president

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ll Tokio Marine Kiln syndicates are forecast to deliver profits for the 2014 year of account. Syndicates 510 and 557 have shown improvements on the 2015 year of account following a “benign” quarter. Charles Franks, chief executive officer of TMKS, says, “These latest forecasts show that our continued emphasis on disciplined underwriting is proving profitable for our syndicates. Our business strategy, with its emphasis on working with our customers, continues to drive successful underwriting performance.”

TMK syndicates forecast profits

and CEO, says, "This set of results is an encouraging sign that our team of underwriters and claims handlers are well equipped to meet the needs of our members and clients in a difficult business environment. Our combined ratio is at a five year low and while a number of our service offerings have performed well, I was especially pleased to see a strong contribution from our offshore book of business. The diversification strategy enables us to give a credit back to our mutual members even when the investment returns have proven to be volatile.”

Solvency II data analytics service PMG has launched a Solvency II data aggregation service that enables insurers to benchmark themselves against other insurers. Solvency II Vantage Analytics will aggregate Solvency II reporting data in the XBRL format, so that insurers who fall under the regulation can get meaningful insights about where they sit in the market. KPMG will produce reports for insurers wanting to see details, like how their investment portfolio or liabilities compare with those of other insurers. Danny Clark, partner, insurance, KPMG says, “For the ﬁrst time the insurance industry is generating a huge volume of standardised data under Solvency II, and the untapped potential in that data is enormous. We’ve built a service that enables companies to actually use the data they’re producing. “The XBRL format for Solvency II reporting means information can be aggregated and dissected to give really useful insights on the state of the market. Not only will we be able to offer a holistic picture, but we will also be able to show individual companies how they compare to others.”

JUNE 2016 insurancepeople 23

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One in 1,000 at risk of DVT A geas says that it is estimated that, in the UK, one in every 1,000 people each year are at risk of having a DVT – a blood clot in the deep veins, usually in the leg, and there are many factors which could lead to a clot forming, including long-distance travel. Robin Moorcroft, who is only 50 years old, won a dream holiday to Gambia and travelled in November 2015, but a few days into his trip, contacted his insurance provider, Ageas Insurance, to say he believed he had a DVT. He says, “I travelled on holiday last November to Gambia. A couple of years ago, I’d had a blood clot, which I’d declared to my insurer, Ageas, who agreed to provide cover. I thought I had a DVT and on 23 November, I contacted the assistance company, who started the process of me being seen by a doctor. “Initially, the doctor didn’t think it was DVT, but Ageas’s assistance

team wasn’t 100% happy with this diagnosis and the following morning I attended a medical research centre for a Doppler test. This showed I had a 1.23cm clot in a vein in my right leg. I then started a course of treatment followed by a return flight that would safely get me and my wife back to the UK. “I would definitely recommend that everyone travelling obtains a

Claims handler jailed for fraud n insurance claim handler has admitted to illegally passing on customer details to a law ﬁrm and adding friends and family to genuine claims in a £55,000 fraud. Anthony Francis Joseph Rattigan, 30 of Oulton Lane, Liverpool was convicted of two counts of fraud by abuse of position and two counts of money laundering after an investigation by the Insurance Fraud Enforcement Department. He was sentenced to 10 months’ imprisonment at Liverpool Crown Court. The fraud was initially uncovered by internal fraud investigators at RSA where Rattigan was employed as a claim handler. As part of his job, he was responsible for handling motor

24 insurancepeople JUNE 2016

insurance claims involving their policy holders. However, Rattigan used and abused his position to falsely add friends and family members as injured passengers onto genuine claims he was handling so that they would receive payouts. He also referred these claims and 37 others to a law ﬁrm that, in-turn, paid Rattigan referral payments totalling around £25,500 between January 2012 and June 2014. Detective Sergeant Matthew Hussey, from the Insurance Fraud Enforcement Department, said: “Rattigan used his knowledge of the claims process and his position as a claim handler to submit the fraudulent claims so that he and his friends and family could proﬁt – all at the insurer’s expense.”

comprehensive insurance policy to cover these eventualities – otherwise you could be stuck in a foreign country suffering from a condition which is hard to diagnose. Without Ageas’s expertise and insistence I might not be here today.” Ageas Insurance has been raising awareness during National Thrombosis Week.

RPC advises Lonmar on MBO ity law firm, RPC, has announced its third insurance sector deal.. Following on from advising on the Chaucer /AXA SPS, and the acquisition of ANV by AmTrust Financial, a team from RPC has advised on the agreed management buy-out of specialist Lloyd's broker, Lonmar Global Risks Limited, backed by Global Risk Partners Limited. Commenting on the deal, James Mee, partner, head of corporate insurance and financial services, says, "The signing of this transaction caps a busy few weeks for the transactional insurance and financial services team at RPC. The Lonmar / Global Risk Partners deal is the latest in a series of notable insurance broker deals our clients have trusted us with. We are very grateful for their support."

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On the move

Who’s going where?

Ecclesiastical

Sarah Smith

Hood Hood Group appoints Sarah Smith to the newly created role of head of residential property. She joins from AXA UK where she was development underwriting manager household for the past two years. Her insurance career spans over 20 years and includes senior underwriting roles at Travelers and Aviva. Claire Foster becomes head of IT. She joins from AXA Insurance where she was head of operational delivery for the past two years. Prior to that she spent six years at Towergate, latterly as head of business solutions.

Ecclesiastical appoints John Titchener as group compliance director, this role having been overseen previously by the group chief risk officer. His 25 years’ legal and compliance experience includes general counsel, compliance and company secretary roles at Willis Group, GE Insurance Solutions, Swiss Re and CPPGroup. He was called to the bar at Lincoln’s Inn and studied corporate finance at London Business School.

John Titchener

CDL Insurance software house CDL appoints Darren Williamson as account director, working within the commercial operations team. He will also be involved in ownership and development of future product initiatives. He joined in 2000, and previously worked as a senior client relationship manager. Claire Foster

Chaucer Chaucer appoints Andy Wells to launch Chaucer’s suite of marine professional indemnity products. With over 26 years’ marine industry experience he joins from Travelers Syndicate Management, where he underwrote a marine ports, professionals and logistics portfolio.

appointments

Darren Williamson

Chris Hall

EDM Provider of information and business process management technology and services EDM Group appoints Chris Hall as managing director, insurance services for EDM UK. He has over 30 years’ IT experience and previous experience includes seven years leading Dell’s online presence in Europe; seven years at Research Machines as head of product marketing and technology sales; and a ﬁve-year stint at Mars Electronics in product marketing and software development. His appointment is part of the recent acquisition of the insurance division of Adactus, the Oxfordshirebased ﬁrm which he set up in 2001 and where he was CEO.

Aspen Re Aspen Re appoints Hugo A. Cardona as managing director for Latin America and Caribbean. He joins from Odyssey Reinsurance where he was chief underwriting officer and senior vice president, Latin America, Brazil & Caribbean. He succeeds Peter Emblin who will continue in his roles as managing director, Middle East & Africa and head of casualty reinsurance, Aspen Re. Prior to joining Odyssey, he was chief operating officer for Island Heritage Insurance Group, based in the Cayman Islands. He also held senior roles at Aon Benfield, Partner Reinsurance Co, Reliance National Insurance Co, and ACE Group. JUNE 2016 insurancepeople 25

On the move Alesco

Aspen

Murray Haynes joins the renewable energy division of Alesco Risk Management Services in London. Joining from Marsh where he was part of the renewable energy and power practice, advising global independent power, utility, construction and engineering companies, he has over 30 years’ experience including time with HSBC Insurance Brokers. John Abraham also joins from Marsh where he worked in Singapore before moving back to London in 2011 to join the renewable energy and power practice. He was also part of the weather and energy specialty products team.

Aspen Insurance appoints Raheila Nazir as head of international cyber risk. She joins from AIG Europe where she was professional indemnity manager for Europe, the Middle East and Africa. She was previously cyber & communications, media and technology manager, managing and co-ordinating the UK portfolio of AIG Europe and previously held senior roles at Cat Excess, Brit and RSA.

Helen Bryant

Allianz Keith Culling, regional manager for London at Allianz, retires in July 2016 after nine years. He will be replaced by Helen Bryant who has been promoted to regional manager for London, Central & East. Currently regional manager for Central & East, she joined in 2001. Alan Thorpe becomes head of London property markets in August 2016 and joins from Zurich Insurance, where he has worked since 2005 most recently as head of trading, real estate, London.

Swinton Swinton Insurance appoints Jacqui Holt as head of branch delivery in the North. She joins from Thomas Cook where she held a number of senior leadership roles including head of Thomas Cook Sport and head of retail sales North.

QuestGates

Alexandra Roberts

Barbican Protect Barbican Protect, the UK insurance arm of Barbican Insurance Group, appoints Alexandra Roberts as a development underwriter, financial lines. She joins from Towergate Professional Indemnity where she was a senior account handler. Prior to that she was a commercial account handler at Richard Thacker & Co (now part of Integro), focusing on all areas of commercial insurance. She also worked as an underwriter at Cooperative Insurance where she began her insurance career in 2000. 26 insurancepeople JUNE 2016

QuestGates creates the new role of senior loss adjuster and development manager in its property team with Paul Bullett based in the Midlands. He began his insurance career at Eagle Star over 30 years ago and also worked at GAB Robins and most recently at VRS Vericlaim/Certo.

Paul Bullett

Jacqui Holt

Sequel Insurance and reinsurance software provider Sequel appoints Helen Banton as chief operating ofﬁcer. Having worked within the IT and software industry for over 20 years, she joins from ION Trading Group where she spent over three years, including the role as global head of client services for its agency trade processing division. Prior to that she was global head of delivery at Patsystems; head of credit & ﬁnance at Tieto Corporation; and also held senior positions at AttentiV Systems and Lynx Financial.

appointments

Who’s going where? Antares

Tony McLoughlin

Horwich Farrelly Insurance industry law ﬁrm Horwich Farrelly appoints Tony McLoughlin, as a partner in its large & complex injury team. He joins from DWF’s Liverpool ofﬁce where he was a director. Alistair Graham also joins as a partner, with over 20 years’ experience dealing with large and complex injury cases within employers’ and public liability claims, and motor accidents. He was previously a Partner at Keoghs.

Antares Asia, a member of the QIC Group, appoints Ching Ching Long as marine senior underwriter. Ms Long brings over a decade of marine underwriting experience and joins from Chaucer Syndicate 1084 Singapore, where as deputy class underwriter, marine she was responsible for the development of the Syndicate’s marine treaty and facultative business in Asia. Prior to this she served as head of marine at AIG Singapore and has also held senior positions at Swiss Re Malaysia and AIG Malaysia.

Towergate Paul Longhurst joins Towergate London Markets as broking and distribution director, joining from Bluefin where he has been London Market broking director for 25 years.

Jelf Jelf announce that Jonathan Webber is appointed commercial director. He joined in 2010 as ﬁnance director and will continue to develop SMEi’s business model and technological capabilities for small businesses in the hair and beauty, food and beverage, and retail sectors. Lee Tetley is appointed operations director and was a founding member of SMEi’s management team and as managing director was instrumental in its acquisition by Marsh last year. He will be responsible for SMEi’s strategic and day-to-day operations.

appointments

Colin Anthony

Tesco Underwriting Tesco Underwriting appoints Colin Anthony as chief underwriting ofﬁcer of the motor and home insurance partnership between Ageas UK and Tesco Bank. Joining from Direct Line Group, where he was chief pricing and underwriting ofﬁcer for Germany and Italy, his two decades of insurance industry experience include previous roles with RSA and Zurich.

Danny McLaughlin

Cunningham Lindsey Cunningham Lindsey appoints Danny McLaughlin to fraud investigation and prevention services director, within the specialist forensic advisory services. Before joining he was an independent fraud risk management consultant, and previously spent four years working with large accounting ﬁrms in the United Arab Emirates. He was also with KPMG Forensic for over 14 years, based in the UK. He has worked in many different business sectors, including oil and gas, manufacturing, pharmaceuticals, automotive, telecoms, media, retail and leisure, as well as public sector and NGO organisations in the UK and overseas. Steve Mather joins the major & complex loss team at Cunningham Lindsey in Newcastle. Previously with Crawford & Co he has been a practicing chartered loss adjuster for over 30 years. He is currently chair of the North East Regional Group of the Chartered Insurance Institute.

Focus Wokingham-based MGA Focus appoints Toby Catlin as general manager. He joined in 2004 as development underwriter and has subsequently held various positions including sales manager and underwriting manager. He previously worked with Norwich Union and AXA Insurance.

Steve Mather JUNE 2016 insurancepeople 27

by Andrew Newman

in association with:

“Home, James!” he utopian user angles of autonomous driving have been previously aired on occasion in this column over the years - a kind of mixture between the joy of the freedom of the open road when setting out on a long business trip, and the “Home, James” ability to opt out on the more gruelling homeward journey after some exhausting business development activity. In other words, the ability for the driver to “drop out of the loop” for certain sections of their journey – more about that below.

But of course autonomous driving now moves to the top of the motor insurance agenda. How will the industry cope with this revolution? Thatcham Research checks in by welcoming Volvo Cars UK’s real world autonomous driving trial announced at the end of April. Chief executive Peter Shaw says the ‘Drive Me London’ trial is signiﬁcantly different from other autonomous driving trials by using real families driving cars on UK public roads rather than data gathered from test tracks.

A crucial point. Early images of the future of driverless cars showed five or more identical vehicles zooming round a test track at high speed, bumper-to-bumper. But real life isn’t like that. There’s going to be an automated car, a heavy lorry, a non-automated classic car, a motor cycle - all in the same queue. And the question is - will that ratio of automated driving be enough to lower claims significantly enough to allow premiums to be reduced? Peter Shaw is in no doubt that crash frequency could dramatically reduce because of autonomous driving. “We’ve already seen this with the adoption of Autonomous Emergency Braking (AEB) on many new cars. “Research in the USA by NHTSA predicts that by 2035, as a result of autonomous and connected cars, crashes will be reduced by 80%. Additionally, if a crash unfortunately can’t be avoided, then the impact speed will also drop as a result of the system’s performance - reducing the severity of the crash. “For the first time, real world insights into how drivers actually react to autonomous driving in actual road conditions will be obtained.” 28 insurancepeople JUNE 2016

The Volvo ‘Drive Me London’ trial begins in early 2017 with a limited number of semi-autonomous driving cars, and expands in 2018 to include up to 100 cars, making it the largest and most extensive autonomous testing programme on UK roads. Vehicle manufacturers predict that highly autonomous vehicles, capable of letting drivers “drop out of the loop” in certain situations will be available from around 2021. recent white paper commissioned by HERE and Swiss Re took a good look at the growth of car connectivity and the take-up of ADAS technology.

This report is very forthright. “Automated car technology will reduce insurance premiums by over £14bn by 2020.” Can’t help thinking that panacea might be veering towards jumping the gun? As a former motor underwriter, and having canvassed many of today’s practitioners, surely the market is going to need the answers to a lot of questions before taking that assumption on board? While automation may indeed eliminate many potential accidents, it’s the underwriter who decides when premium levels can be reduced, taking the overall picture into account. As the Thatcham comment says, no-one yet knows what the impact of drivers “dropping out of the loop” will be, and that’s one of the things the Volvo trial will be aiming to ﬁnd out.

WARNING:

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on the road

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