Insurance People November 2013 eEdition by Insurance People

insurancepeople issue 38 November 2013

Iain Ainslie Data breach! - see page 12 Insurance People inside include:

David Ashby Reg Brown Michelle Gwynne Paul Handleigh Andy Hawkes Simon Hodgin Carl Shuker

in association with

insurancepeople

leader

www.insurancepeople.uk.com

Customers, customers, customers… Editor and Publisher

Consultant Editor

Andrew Newman

Brian Susman

Commercial Director

Production Director

Jeni Hall

Adrian Susman

Editorial

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

Adrian Susman adrian@insurancepeople.uk.com 07981 993974

he clarion call for insurance firms to “have the customer at the heart of everything they do” appears twice in this month’s pages. The headline is copied from BIBA’s chosen theme for next year’s annual conference, and chief executive Steve White uses the phrase himself on page 5. While BIBA presents an advisory statement, the identical one from the FCA on page 17 is altogether more mandatory, as would be expected from an industry regulator. There’s nothing advisory in the FCA stance. It demands “that firms put their customers at the heart of their business”. (The fact that they actually use the word ‘expect’ rather than the more authoritarian ‘demand’ makes no difference). Naturally the FCA can only judge this criteria by counting complaints. It does not possess – not yet anyway – the flyon-the-wall ability to peer into hierarchical ivory towers, where the watchword is shareholders, shareholders, shareholders...

November 2013

In this issue 2

Late news

Market talk

Cyber risk 11

Andy Hawkes Risk management guide Part 5 – the legal aspects of data breach

Iain Ainslie Why data breach must be handled “faster than real time”

Commercial Director

Jeni Hall jeni@insurancepeople.uk.com 07969 510172

www.insurancepeople.uk.com

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Reg Brown’s Postcard Emporium

Ones that got away Michael Webster and “What we

Carl Shuker and A-Plan’s 50 years in the High Street

want is Watneys”

Former Axa man Simon Hodgin joins Sterling

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News

On the move Who’s going where?

ISSN 2043-9202 Insurance People is published monthly by Buttermere Wedge Publishing Limited. While every attempt has been made to ensure that the information contained within this publication is accurate, the publisher accepts no liability for information published in error, or for views expressed. All rights for Insurance People magazine are reserved. Reproduction in whole or in part without prior permission from the publisher is strictly prohibited.

On the Road You’re there, but where am I?

Andy Hawkes joins this month’s data loss theme

Reg Brown unearths a tale of family bias NOVEMBER 2013 insurancepeople 1

insurancepeople

in association with

Late News

Nigel Martin I

t was just as IP was closing for press when the sad news arrived that former Lloyd's and company motor man, and latterly insurance broker, Nigel Martin had passed away on Thursday, 18th October, after a long illness. Nigel’s partner Gina Cook says that, despite his illness, Nigel had dealt with

it bravely and very positively, as he always did. “For the vast majority of that time we were able to continue sharing a very good quality of life and obviously enjoyed the closeness and time we spent together. “I’ve been lucky enough to be Nigel's partner for the last eleven years and we have had some really fantastic

ECIC appoints Fearn as chairman

arry Fearn has been appointed chairman of Electrical Contractors' Insurance Holdings, the parent company of the

Garry Fearn

Electrical Contractors' Insurance Co and of Electrical Contractors' Insurance Services. Most recently executive deputy chairman of Covéa Insurance, Garry Fearn originally joined Norman Insurance in 1989 and became chief executive in 1996, continuing in this role following the name change to MMA Insurance in April 2000. He stepped down from Covéa last month. He has also held a number of senior management roles in broker businesses.

DAS five-year contract with Towergate

AS has extended its long-standing relationship with Towergate Insurance with a new five-year deal to secure the legal expenses and emergency assistance business placed by the group. Paul Asplin, CEO, DAS UK Group, says, “Legislation constantly changes and this year we have seen some significant developments - not just with the introduction of LASPO, but also in employment legislation - which have made legal expenses insurance even more relevant and essential. We are delighted to have entered into this new partnership with Towergate, which ensures that their many customers have the legal protection that they need.” 2 insurancepeople NOVEMBER 2013

times together. I knew Nigel long before that and so he has been in my life for the vast majority of it. Caring for him through his illness was never a chore as his stoicism and positive attitude gave us the strength to battle our way through it right up until the end. He is a real star and I can't begin to tell you how much I miss him.”

Nigel Martin

igel Martin spent 40 years in insurance beginning with London & Edinburgh (formerly Excess Insurance). In 1989 he was head-hunted into what he called “The Wonderful World of Lloyd's”, heading up various motor syndicates such as Warwick, British Standard, Pegasus, and Service over a period of ten years. Then in 1999 the poacher turned gamekeeper with the creation of Goodwood Insurance Services, specialising in taxi insurance. In 2010 Goodwood was sold to Cullum Capital Ventures and Nigel stayed on for a couple of years to see himself through his 60th birthday before retiring. He will be greatly missed, not least by the fellow distinguished members of the clique of insurance beings with the inexplicable yearning to support a certain football team to the west of London – otherwise known as the Brentford Mafia!

Finch steps down as Purple Partnership chairman

elf Group has announced that, as from the end of October, Alec Finch steps down as nonexecutive chairman of the Purple Partnership, its broker network. He has been chairman since 2011, during which time Purple has increased its membership to 75.

Alec Finch

market talk

Andrew Newman

A-Plan celebrates 50 years I

f there’s any doubt about the future of the High Street in personal lines broking, then it can be swept aside by the news that A-Plan Insurance Group celebrates its 50 years of “Making insurance easy”. Since 2009, A-Plan has opened sixteen 'cold start' branches and forged into new territories, with Wilmslow, Tunbridge Wells and Chelmsford taking the company beyond what was its typical heartland. And yes, there’s another four already in the pipeline for next year. Plus the 2012 programme also included a move from the previous HQ in Blue Boar Court in Oxford to a new, more spacious head office in Witney with more parking and better accessibility, which has enabled the business to deliver much more in the way of training for managers and staff. But as chief executive Carl Shuker said at the time of the move, “After the best part of fifty years in Oxford, with so much history, the move was not an easy decision at the emotional level.” As to the future of the High Street, Carl says, “We use the internet effectively: there’s masses of opportunity to help local clients link up with their local branch, and whilst the internet is a firmly established tool for many insurance buyers, there are still plenty of people out there who want more than just price. We continue to see

4 insurancepeople NOVEMBER 2013

increasing numbers of people coming to our branches, despite softening rates and intense competition.” There are now over 70 branches, and the 50 year heritage begs the question. How does A-Plan succeed where others fail, and pull out of the High Street? From a customer point of view that answer would begin to dawn even before entering an A-Plan branch. Every multi-office high street broker adopted a uniform frontage for most of their offices, but the A-Plan facades were somehow in a class apart, seeming to blend into their architectural surroundings much more sympathetically. And in the same way that some hotel reception areas are more welcoming than others, so the A-Plan warmth of welcome was more consistent than elsewhere. Carl adds, “And from there, it’s about looking after the client. Ensuring they get good value, that they understand what they are buying by being professional

The High Street is alive and well!

In my days on the road, I recall the first A-Plan office I ever visited was in Luton. That would have been around 1977, by which time my new employer’s agency with A-Plan was already progressing very nicely – good business, well presented, prompt payment of accounts… so much so that there wasn’t a great need for me to call. My role at that time was more in the line of a trouble-shooter ironing out problems to business flow. At A-Plan there were never any problems that couldn’t be sorted out at staff level. So it was only after I had left insurance that I came to know the A-Plan management face-to-face, and perhaps in recognition of all those years of ‘if it’s not broken, don’t try to fix it’ I’ve been lucky enough to join the A-Plan management at their annual lunch in London, the next one taking place in December with the opportunity to renew acquaintances. and friendly, and always looking to go the extra mile.” From an insurer point of view, as Carl explains, “It’s all about ensuring the insurer gets good quality risks, properly assessed so that they get the right risk premium (difficult to achieve on the internet, where so much ‘application fraud’ prevails). Helping the insurer achieve their objectives (which includes the right return on capital) is a vital part of the A-Plan ‘mix’.” From an insider’s point of view that initial perception of friendly welcome backed by competent handling would be reinforced in doing business with the staff and management, and the opportunity to look behind the scenes. The common denominator in the location of the various offices is that they are generally sited in what Carl Shuker describes as the “nicer county towns and cathedral cities”. An insider’s visit (mine took place in 2009) to the A-Plan head office at Blue

Boar Court within walking distance of the Oxford branch office revealed a lot. An open, unhurried calm pervaded this high ceilinged building conversion, which I believe was once a boxing gymnasium. And around the walls were paintings (not photographs) of a good majority of A-Plan office frontages in different parts of the country. I thought then (and I still do) that such effort can tell you a lot about an organisation. Let’s face it, no one is going to go to all the trouble of commissioning such a series of paintings if all the offices look the same. Nor if they all consist of plate glass, with a “neon” name stuck across the top. The lasting impression of that kind of detailed attention is that any organisation proud enough to go to those lengths would inevitably apply the same attention to detail in every corner of their business. So many congratulations to A-Plan for completing 50 years of customer service in the High Street.

Customer theme for BIBA 2014 in association with

A forum for insurer vox pops 1966 England heroes at HBC!

Customer, Customer, Customer… I

f you laid all BIBA’s annual conference themes over the years endto-end, they would probably mirror the upsand-downs of the broker market. And I don’t recall any of them bringing the paying customer into the plot (and I’m happy to be corrected if I’m wrong). Most themes were naturally broker focussed, featuring words like challenge, growth, professionalism etc.

Until now that is. The BIBA theme for 2014 is Customer, Customer, Customer for the conference and exhibition to be held at Manchester Central, on 14 and 15 May 2014. BIBA chief executive, Steve White disagrees with any hint that there has been any omission in BIBA’s thought about the customer in recent years. “If you look across the insurance industry…

YouTalk with Paul Handleigh

t was a pleasure to sit in the September sunshine on the patio under Lloyd's putting the world to rights with Paul Handleigh, who I hadn’t seen since his days at Independent Insurance. The double coincidence was that it turned out we were both on our way later that afternoon to a presentation at CII Aldermanbury. Paul is the founder of youtalk-insurance.com, the multi-media website providing insurers with a platform to place their press releases and product

Paul Handleigh

information along with their own vox pop videos. It’s a concept fully in line with today’s advances in communication, and Paul’s ‘About Us’ blurb on the website conjures up plenty of areas for debate. “We employ no journalists, so all of the information we share with you comes direct from insurers and professional bodies, without press interpretation, spin or bias,” says Paul’s website. Hm… I suppose as one who supplies the ‘touchy, feely’ enhancement of the printed word in favour with… well, I suppose everyone who is reading these words at this precise moment… there’s a need for me to question the suggestion behind “press interpretation, spin or bias.” Is there no “spin or bias” when a company spokesman holds forth? That, surely is what it’s all about?

there’s a strong focus on the customer, whether that is a consumer, business, or broker. “It’s right that we explore this very relevant topic at our conference through our keynote speakers and seminars. Successful businesses have the customer at the heart of everything they do, and by focusing on the needs and interests of the customer, whoever that may be, we can support

our members in becoming more successful in what they do.” Amen to that. See page 1.

And, as brokers know only too well, it can sometimes be a rocky path between the promise made by a company spokesman and delivery at the sharp end.

A healthy debate no doubt, and no, Paul and I didn’t delve into this at our patio meeting – we were too busy enjoying the sunshine.

Steve White

Team ’66 at HBC

ngland’s 1966 World Cup heroes have always been conspicuous at vehicle services provider HBC’s annual Golf Day.This year was no exception, as the accompanying photograph taken at the Boyce Hill Golf Club in Benfleet, Essex proves. Nine of the ’66 squad were there, and between them they share a knighthood, an OBE, a CBE, and brace of MBEs.

Pictured left to right: back row - Martin Peters, Roger Hunt, Gordon Banks, Peter Bonetti, Geoff Hurst. Front row - Jimmy Greaves, Trevor Brooking, George Cohen, Ron Flowers NOVEMBER 2013 insurancepeople 5

market talk Yearling sale helps raise sums insured LV launch e-trade for trucks

Amlin Plus at the yearling sale

Photo courtesy of www.tattersalls.com

loodstock insurers Amlin Plus invited industry guests to Tattersalls October Yearling Sale Book 1 in Newmarket on 9 October 2013. The host was Amlin’s managing director and chief class underwriter David Ashby who provided his guests with breakfast, followed by a tour and chat

about his role at these yearling sales. Amlin conduct a lot of business at this sale each year as over 500 young racehorses (yearlings) go under auction. The 2013 sale saw 339 lots sold for 70,343,000 guineas (Not pounds, you’ll notice). That’s a new record

and 3% higher than last year’s total despite 12% fewer lots being offered. The turnover also represents a record for a European auction. David Ashby explains how this record breaking sale will affect the bloodstock insurance industry. “It was a very positive sale from our perspective. The rise in value of yearlings, and the commensurate increases as breeders and owners amend the value of their foals and broodmares, results in increased premiums to insurers. “Likewise the value of colts retiring to stud has now increased as will the sum insured of many commercial first season sires. Our overseas clients have been active this week and of course the value of

David Ashby

racehorses to go abroad has been strong all year. This also prompts buyers to reinvest and many of those buyers insure, which is also positive. “Lastly the rigorous vetting procedures at the sales (radiographs etc.) help improve the risks for underwriters. I and Amlin's representatives were around the sale all week and have insured many horses and developed new client contacts.”

Trucking with LV= Broker L

V= Broker has launched the pictured model vehicle to help promote its new truck

6 insurancepeople NOVEMBER 2013

product. There’s increased cover and e-trading capability. Before general release,

the pilot took place with three brokers; C&C, Ratcliffes, and McCausland Light & Ranklin. Head of commercial distribution Kevan Aubrey says the enhanced product aims to make it much easier for brokers to place HGV business with LV=. “Not only does it include cover for smaller service vans, but it’s fully traded online and can be transacted at the touch of

Kevan Aubrey

a button. The feedback from our pilot has been very positive and we are delighted to be able to roll this out to all our specialist vehicle brokers.”

in association with

Help for graduates in Wales There’s still a place for emotion and gut-feel!

Atradius report on placements for graduates A

tradius, Admiral Group, GMAC and Composite Legal Expenses are providing Welsh graduates with employment in insurance. The Welsh Financial Services Graduate Programme aims to give university leavers paid work at the four firms, with structured training, and a post graduate qualification. Funded in part by the Welsh government’s sector priority fund, the two-year programme aims to offer graduates financial sector skills in Wales, rather than seeking employment elsewhere. Graduate Alex Hough (pictured on the right) comments on the earlier lack of advice on how to get into the insurance industry. “I’ve always been interested in finance and have never been sure how to get into it,” she says. “This was the only scheme in Wales of its kind that I found, and it will help enormously.” Alex graduated from

Swansea University in June with a first class BA degree with honours in business management with accounting. “It’s a really exciting opportunity to work for four big financial services companies, all with their headquarters in Wales,” she says. “It can be a really difficult sector to get into, and while many others on my course are going to London, I want to be here in Wales. The Welsh financial sector can definitely compete and the graduate programme will raise awareness of that.” Anne Middleton, Welsh chair of the National Skills Academy for Financial Services (NSAFS) and HR manager at Atradius says a key objective for the project is the retention and development of skilled graduates in Wales. “Their success will lead to the recognition of the excellent provision for financial services skills in Wales, which will in turn attract other

Model’s work! E

veryone is attracted to models – and we are not talking about Barbie dolls, so sorry if the deliberate tease of that headline disappoints a reader or two. We’re talking about miniatures of the real thing. The Regency period had its miniature portraiture, the Victorians their tin plate model trains, and today’s model shops are crammed with cars, ships, and planes of every era. So how do you calculate the value of a model as a promotional item? It’s impossible for an accountant to assess that answer in terms of numbers. But emotion and gut-feel

Left to right: Rowena O'Sullivan, project manager, Atradius; Anne Middleton, HR manager, Atradius; Gareth Roberts, head of training, Admiral; John Mullin, MD, Composite Legal Expenses; Mark Tweed, CFO, GMAC; Huw Lewis, Minister for Education and Skills; and graduates Filip Kuzov and Alex Hough

companies to the area, in addition to growing existing businesses. This is an excellent example of how the private sector can work in partnership with Government and academia to develop the sector in Wales.” Minister for Education and Skills, Huw Lewis says “I’m pleased that the Welsh government has been able to provide funding for this pilot and I’ll be watching the

progress with interest to see how the model works in practice with a view to delivering it in other sectors and locations across Wales. It’s important that we encourage sufficient young people at graduate level into the financial sector and retain their skills in Wales. In the past, too many talented young people have left Wales to utilise their skills elsewhere in the UK.”

plays its part, and I will just recount the occasion when yours truly headed a presentation to the board of an insurance company in respect of a proposed motor sports sponsorship. I like to think the directors were convinced with the pitch, but what really sealed it was when - with as much dramatic art as I could muster - I rolled a specially produced Matchbox brand model of the car (complete with the company logo and branding) down the boardroom table towards the chairman. My aim was perfect, and it rolled gently off the end of the table into the chairman’s waiting hands. And not for the first - or the last time - the immortal words “nobody likes a b....y smart-a..e” drifted in my direction. NOVEMBER 2013 insurancepeople 7

m busin since pany’s g about imag t started proud ess hi in d conn iscovere story. I’ve bigg e what so you can and of th d the er land ectio ev m n side of a past ery ti lords e of the after on my m gro th other’s resear family startin up of fa thought Truro e mod ch rm , ing m ers proud tree, and mutua g up thei firm’s or read y r fe o doub to have th el very a bo l organis wn how success at ld le is del a sig connectio unique, tribut thing to ion. It was grand ighted ni do e father comp ficant Cor n to such grand to my gre , and a Ian P wou nish any. father at awle farm ch an ai d er y, rm to be s that it ha the other Mutua an of Co rn such s go l add succ ne M an ut or co o en ual is s, “Cor ess. n m I feel ormous about o ur driver pulsory enorm mem cove s hit or plu bers peo o ce r us b lik nt y ly are at m re of quest p for a le unafford e RTA mo ev d o er .” ab to ion. ything ss sp orty ca le premiu r, young Not so mal m r. Sel and f insu s either g e pay th for pet o o ranc wners times e bill e is o without, . Th s w ut of grow ith a dra instead ha e trend th e in to matic s are sa g range rise in gathere ditch the of d id to in be ris new and veterinar pace in re surance And y cost expen ing 12 cent like P rising s sive %a HI treatm and a w when ith age cover for year. ents. and the co Vet fe are lik humans, shop ve es the p r is ely aroun rem d bec really ne to have beco iums ke ed ause ep me un of th ed. Plus, e pre af -exist there’s no fordable ing d efect chance to cond ition. ni al direct s memb sh er of th descend s is a e an helped founders t of one who busin to start th ess o ago. ver a e centur y

market talk

Pet p remiu F ms s oar

Pet premiums soar: Part 2 Axa man joins Sterling

Pets: “Is it an insurance job?” L

ast month this column rather flippantly applied the hackneyed “Is it an insurance job?” repairer response (so familiar in motor and household business) to the pet insurance sector. In response to the threat of insurers seeking to ramp up pet premiums, consultant Jack Brownhill says that despite the development of limited cover and lower priced products, the continuing escalation in pet insurance premiums must be a cause for concern. “Many policyholders must be giving serious thought to what they

Jack Brownhill

should do at renewal when faced with yet another significant uplift in premium particularly if their ability to move to another insurer is limited by the likelihood that pre-existing conditions will be excluded if they move.” Analysis provider Timetric issued its report Pet Insurance in the UK, Key Trends and Opportunities to 2017 on 9 October 2013. The report states that customers are more likely to claim on pet insurance than any other personal cover. Timetric economist Laura Balkarova reckons insurers will be looking to ramp up premiums as the value and frequency of claims increases. She believes that high claims ratios mean insurers “are likely” to continue raising premium rates, but that this might encourage the development of limited cover and accident or injury-only policies to make policies more affordable.

Sterling appoint Hodgin

y first flash-thought on learning that North-West insurance man Simon Hodgin had joined a new team was disbelief. A true-blue Man City supporter doesn’t jump ship so easily. And so it proved. The new team is Sterling Insurance whom he joins as divisional manager – northern regions. A former president of the Manchester Insurance

8 insurancepeople NOVEMBER 2013

Institute (in 2007) he was previously branch manager at AXA Commercial Lines & Personal Intermediary in Manchester. His 25 year career includes time at L&G and GRE, and the last 17 or so years have been spent in the North West. Simon will be looking after the development of Sterling ’s Manchester branch and the northern regions including Scotland and the North East. He tells

Is it an in su

ranc

e job?

OCTO BER 2013 insu

ranc epeo ple 7

Laura Balkarova

The editorial interjection here, of course, is that such limited cover options still give the insurance industry stick via consumer perceptions of small print and policies not being worthwhile. Ms Balkarova has the answer to that. “The market for pet insurance has grown fast via affinity marketing and insurance partnership deals with supermarkets and other big brand retailers. These partnerships are expected to give insurers the opportunity via affinity schemes providing customer loyalty incentives and offer a greater value me he was impressed. “Sterling’s product range is exceptional, but most importantly I have been thoroughly delighted at their total commitment to service and their desire to understand their brokers’ needs, through constant feedback. I’m excited at the opportunity to join an organisation that is always looking for ways to improve the products and services delivered to brokers and their clients. I want to develop this reputation further and look

through premium discounts or additional product features.” Timetric reckon the UK pet sector will become a £1.1bn business by 2017, growing at a compound annual growth rate of 11.3% from 2013. And that growth will be driven by escalating veterinary fees, rising claims costs, and advances in veterinary care. As to the question of future affordability and whether UK pet owners will be amenable to the higher premiums, the Timetric report points out that hefty veterinary bills have not so far deterred responsible pet owners. Overall household expenditure on pets also rose by 22% between 2008 and 2012 and the UK pet insurance category grew 35.5% in absolute terms during the same period, becoming the fastest growing category of insurance sales.

Simon Hodgin

forward to meeting Sterling’s broker partners in the northern region and seeing how we can work more closely together in the future.”

National press apologise to MIB

in association with

GB ‘cap’ for QuestGates’ Michelle Gwynne

MIB’s name cleared I

n these pages in September, this column was moved towards high dudgeon in defence of the “dear old Motor Insurers’ Bureau”. (Oh dear, did I really use that adjective? Sorry MIB, perhaps I should have said ‘national treasure’). But I was miffed at the time at the recklessly inaccurate national press reportage. Why? Because this is our industry. I’m a chartered insurer, and not least, because I once sat on an MIB committee in the past*. The national press journalists responsible for accusing the MIB of shady goings on in the world of private investigations, and the ‘blagging’ of personal employment histories, benefit, and telephone records were no doubt acting through ignorance of their subject matter rather than malice.

The following ten-line apology from one of the newspapers speaking out of their backside, measured 6.5 x 4.5cms and was printed on 27 September.

Motor Insurers’ Bureau

n August 12 we said private detectives working for the Motor Insurers’ Bureau illegally accessed mobile phone records of a 14-year-old car crash injury claimant and “blagged” employment and benefit records of friends who were also victims. We would like to make clear that the detectives were in fact hired by an insurance company and had nothing to do with the MIB. We apologise to the MIB. – Daily Telegraph 27.9.2013 * Okay, so it was only the Golf Society’s committee, but I still have the MIB tie to prove it.

Gwynne active in the GB D-Fence W ith one daughter married to a Chicago Bears fanatic, it’s no surprise that I follow American football. In fact, my allegiance goes back to the Channel 4 days, and my ability to trot out names like Walter Payton, William “The Fridge” Perry, and Mike Singletary greatly impressed my future son-in-law. So late night weekends are occupied in front of the TV, but one game that attracted my attention in mid-October took place here in the UK. A women’s international at the

Michelle Gwynne - loss adjuster

University of Hertfordshire in Hatfield. And the focus passes to QuestGates environmental loss adjuster Michelle Gwynne who played as a linebacker in the first ever international competition for the British women’s American football team, a five-a-side game between Great Britain and Sweden. Michelle tells me she has been playing rugby for the past 12 years, but always wanted to try American football. On Saturday 12 October she jumped at the chance to accompany a friend to trials for a women’s team, and didn’t realise until she got there that it was for the GB team. And when the 50 applicants were whittled down to 25, she was in the team. Speaking with Michelle before the trial she said, “I’ll be putting aside the qualities required for the day job on Saturday. I’m thrilled

Michelle Gwynne - linebacker

at the opportunity to represent my country in its very first international fixture. The development of the women’s game has been gathering pace and this is going to be a great event.” And so it was, with a short report on Sky Sports on the Tuesday after the match. The result was 27-10 to the GB team and the word I hear is that Michelle played a blinder and completely closed down the

Swedish forwards. “It was a great event and a massive stride forward for women’s American Football GB,” says Michelle. “It was a great team performance and won performance of the week from the Women’s Sport and Fitness Foundation, so the women’s team is getting some well deserved publicity. I’m absolutely thrilled and champing at the bit to get more games in the GB shirt.” NOVEMBER 2013 insurancepeople 9

market talk Failure of computer devices isn’t always an isolated risk

in association with

When knock-on effects turn incidents into disasters O

rdering goods and services online has transformed 21st century life for those who find shopping a chore rather than a pleasure, but that doesn’t mean everything is sweet and lovely. For instance, there’s nothing more annoying when placing say, a grocery order online and reaching the checkout only to find the seller’s system throws you out – leaving the option to try again, or go elsewhere. That scenario came up during a recent conversation with Iain Ainslie, technology and cyber liability underwriter at ACE European Group. Iain’s article about data breach appears on page 12, but on this occasion we spoke about the consequences of an ACE case study claim when a device failure took place for a modest European supermarket chain. When the supermarket chain’s IT system suffered a device failure, a data corruption occurred. The device itself wasn’t covered (the insured replaced the device at its own cost) but the resultant issues were. A system crash followed due to the data corruption and the overall claim developed from there. Iain takes up the story. “The first part of the claim involved employing a specialist who identified the problem; found 10 insurancepeople NOVEMBER 2013

out when the data became corrupt; and restored the data from back-up. The system was off-line for about three and a half days. “The insurance policy responded to that aspect of the claim, but the supermarket’s overall consequential losses turned out to be a considerable number of times greater than that. “They lost some online sales. Yes, digital shoppers were being thrown out of the system after completing their online checkout in the manner mentioned earlier. But in this case the online services were limited to around 7% of overall turnover. The bulk of shoppers shopped in-store, and that’s where the mayhem for customers and the major financial loss for the organisation took place. “Although all the stores remained open during the downtime, customers could only check out manually - all swipe facilities were down. Big queues ensued despite maximum checkout staff, and by the second day customers were abandoning half-filled shopping trolleys in the aisles and leaving the stores because supplies of fresh produce were running out.

“The automated replenishment system driven by product bar-code swipe worked on the basis that no supplies were needed since nothing was being swiped. So a new requirement arose to order fresh produce manually, followed by a major rush to get deliveries underway. “Once the problem was resolved, a massive manual

stocktake was needed to update the stock control system to match the reality of all the stores. “So the overall claim element was the tremendous increased cost of working. It’s a wide

misconception that failure of computer components is an isolated risk. This example proves that device failure can often be the smallest part of the claim. The real killer is the knock-on effects which can quickly change an incident into a disaster. “Ultimately the claim was made up of the cost of the IT specialist, loss of on-line sales, loss of in-store sales and the largest component, the increased costs of working.”

risk management

Andy Hawkes CEO CARDINUS

The fu ll down Guide can loade be charg d free of e from www.c

ardin

A Broker’s Guide to risk management – Part Five As high profile data loss stories continue to hit the press headlines, Andy Hawkes outlines the key elements of the Data Protection Act

Data Protection Act

he Data Protection Act 1998 (DPA) is based around eight principles of ‘good information handling’. These give people specific rights in relation to their personal information, and place certain obligations on those organisations that are responsible for processing it. An overview of the main provisions of DPA can be found in The Guide to Data Protection: http://www.ico.gov.uk/for_organisations/ data_protection/the_guide.aspx

Overview This guidance sets out what an organisation needs to consider in a security breach. It’s not intended as legal advice, nor is it a comprehensive guide to information security. It should, however, assist organisations in deciding on an appropriate course of action if a breach occurs. Organisations which process personal data must take appropriate measures against unauthorised or unlawful processing and against accidental loss, destruction of or damage to personal data. Many organisations take the view that one of those measures might be the adoption of a policy on dealing with a data security breach. However the breach has occurred, there are four important elements to any breach management plan: 1. Containment and recovery 2. Assessment of ongoing risk 3. Notification of breach 4. Evaluation and response

Containment and recovery Data security breaches require an initial response to investigate and contain the situation and a recovery plan

us.co

and damage limitation. This means having appropriate resources, isolating compromised networks, or changing access codes. As well as physical recovery of equipment, the use of back-up tapes to restore lost or damaged data could be involved. Plus, of course, notification to the police where appropriate.

Assessing the risks Some data security breaches are merely inconvenient, while others may lead to identity fraud. Much depends on the type of data involved, whether it was encrypted, or its sensitivity, and the number of items. There may be wider consequences to consider such as a risk to public health or loss of public confidence.

Notification of breaches Informing individuals and organisations can be an important element in breach management strategy, and in many contracts it will be a legal requirement. But informing is not an end in itself. Notification needs a clear purpose to enable individuals to take steps to protect themselves, or to allow appropriate regulatory bodies to perform their functions, provide advice and deal with complaints. From 26 May 2011 certain service providers have a requirement to notify the Information Commissioners Office (ICO). The ICO has produced guidance for organisations on the information they expect to receive as part of a breach notification and on what organisations can expect on receipt of their notification.

Evaluation and response It’s important not only to investigate the causes of the breach, but also to evaluate the effectiveness of your response. Simply containing the breach and continuing ‘business as usual’ is not acceptable. Similarly, if the response was hampered by inadequate policies, or a lack of a clear allocation of responsibility, then it is important to review and update. Dealing with a data security breach is much easier if you know which data is involved and where and how it is stored. And monitor staff awareness of security issues and fill any gaps through training or tailored advice. Consider ISO27001 accreditation as this will ensure best practice standards of data security. NOVEMBER 2013 insurancepeople 11

cyber & reputational risk

Iain Ainslie TECHNOLOGY AND CYBER LIABILITY UNDERWRITER ACE EUROPEAN GROUP

Data breach – your clients’ reputation on the line Cyber and data privacy risk has moved up the agenda for all firms, including SMEs in recent times. Iain Ainslie explains today’s need to combat reputational crisis ‘faster than real time’

mall businesses are now experiencing a volume of data breach incidents previously only seen by large firms, according to a 2013 survey conducted on behalf of the UK Department for Business Innovation and Skills (BIS)*. The proportion of small businesses reporting a data breach was 87% in 2013 - making it more a question of ‘when’ not ‘if’ companies will be faced with a problem. Although smaller companies risk being seen as ‘softer’ targets due to a perceived lack of sophistication in their security systems, human error and failure to observe data protection regulations are also key risk drivers.

According to the BIS 2013 survey: ●

63% of small businesses were attacked by an unauthorised outsider

●

57% suffered staff-related security breaches

●

36% of breaches were caused by inadvertent human error

●

And a further 10% by a deliberate misuse of systems by staff

he average reported cost of a data breach in terms of business disruption and remedial costs is now £35,000, rising to £65,000 in the worst instance. Not only can businesses suffer a substantial financial loss when a data breach occurs, but the associated brand reputational issues can prove even more damaging in the longer-term.

n the UK, most executives regard their brand reputation as their company’s most significant asset, and just over one-fifth believe that failure to protect customer privacy is the biggest potential source of reputational risk to their company today according to recent research undertaken by ACE**. This concern is not surprising in a world where social media has reduced the time that companies have to respond to a reputational 12 insurancepeople NOVEMBER 2013

crisis like data breach, from weeks to minutes. Companies rarely get a second chance at repairing reputational damage, and many businesses underestimate the challenges of dealing with a crisis in ‘faster than real time.’

Social media “reduces weeks to minutes for response to reputational crisis

”

However, despite a widespread understanding of the importance of reputation, executives often struggle to get their heads around the unique and often intangible nature of reputational risk and how closely it is linked to good risk management in areas such as cyber security. Indeed, the overwhelming majority of business leaders say that it is the most difficult risk category to manage, and are worried about the impact reputational damage can have on existing customer relationships, earnings, their ability to form new customer relationships, and to recruit and retain staff, according to our research.

A very vibrant cyber insurance market is emerging in London

“

”

Can firms better manage their data risk? The speed of technological change is rapid, so it’s no surprise that many companies find it hard to keep on top of the range of security threats they face. Businesses benefit from embedding a risk culture that elevates data risks out of the IT function, and ensures that there is an enterprise-wide focus and robust risk management framework. To make this happen, senior management needs to take an active role in managing data risks. Where senior management are briefed frequently on the potential security risks, regular testing of security systems and procedures becomes routine and security defences tend to be stronger. However smaller business do not often have the luxury of IT heads, risk managers, or dedicated security specialists. This does not make the risks faced by such businesses any less, but does make it even more important for senior management to understand how these risks may affect their business. A key concern for SMEs using an outsourced IT model is to ensure the appropriate protections are in place, and the outsourced vendor is aware of the need to protect the company’s data. Outsourcing data management does not outsource the responsibility of data protection, and will not prevent the reputational harm that could follow a data breach. Although modelling the precise impact of such risks may be an elusive holy grail, what companies can begin to do, every time they consider the impact of any risk on their business, is home in on three important areas – customer relationships; the potential impact on earnings; and the company’s reputation. They should ask a key

question - “If these risks are not managed effectively, and things get out of control, how much of an impact could it have on our business?”

Are insurers rising to the challenge? While insurance is not a panacea for the fast-evolving world of cyber risk, there is much that insurers and brokers can do to help clients manage the threat it poses to business operations and reputation. The good news is that a very vibrant cyber insurance market is currently emerging, particularly in London. London has the international legal expertise to understand how data privacy regulations are developing and to help companies remain compliant. In most cases, first party cover is available that includes risks to the policyholder’s own business and systems, such as loss of or damage to hardware, corruption of data and cost of restoration of data. This cover also typically provides protection against network security breaches including threats from hackers, viruses or denial of service attacks, human error, plus threats from a power surge, electrostatic build-up or natural disasters. Many companies are surprised to learn that cover can be extended to protect against loss of income, increased costs of doing business and dealing with the effects of a breach, and even to mitigate or terminate cyber extortion threats.

In addition, today’s top standalone cyber policies include crisis response assistance, which provides access to lawyers, IT forensic teams, credit monitoring advice, and brand reputation expertise – all services that are critical when handling a data breach. These policies help clients to respond quickly, and minimise the impact of the breach on their business and its reputation. Third party cover is also available to protect against a policyholder’s liability as a result of storing third party data and trading electronically, and can include protection against damages or costs incurred through breach, plagiarism or infringement of internet content and transmission of virus.

Partnership is key Any commercial organisation which retains sensitive data on its employees or clients is running a significant reputational risk. Brokers and insurers have an important role to play in partnering with companies to help create appropriate risk management frameworks, devise security measures and offer innovative insurance policies to help them deal with these fast evolving risks. Whatever the nature of the cyber or data threat, companies which take appropriate and swift action with their insurance partners can protect their brand reputation after a data breach, whereas those that handle a breach badly could find their brand reputation is irreparably harmed.

Information Security Breaches Survey, 2013 – Department for Business Innovation & Skills (https://www.gov.uk/government/publications/information-securitybreaches-survey-2013-technical-report)

Reputation at risk (http://www.acegroup.com/eu-en) NOVEMBER 2013 insurancepeople 13

Jobs for the boys in 1907

3 4

ook out! Nepotism going at full steam at the Liverpool Victoria Legal office in Romford in 1907. The 16 names on the postcard include two Carters, and a threesome of Cobbs and a trio of Haines’s, the latter hogging the camera in the centre. Father sits between his two sons, the eldest presumably taking his father’s christian name according to the fashion of the time. Talk about keeping the top jobs in the family. But wait. There’s 17 heads here, but only 16 names. Who’s the mystery woman standing behind the boss? Given what we have already deduced about the Haines’s, it’s a pretty good guess that this is Haines Senior’s good lady wife. The sibling similarities are certainly there if you want to find them, given the strict uniformity of dress and appearance in Edwardian society. In fact, the only element of free expression for men was whether to sport a moustache or not. Beards were frowned upon, being exclusive to executive choice only.

15 16

To “grow, or not to grow, a moustache” seems to have been not only an age choice but a status thing. WC Carter (5) is obviously the elder to CE Carter (4). The Cobb twins(?) (15) and (16) and their elder sibling (1) are all clean shaven, whereas the cultivation of the heir apparent’s (11) Desmond Lynam ‘tache rivals that of his elder statesman colleagues, and is presumably completely in line with office protocol of the time.

The complete team sheet left to right reads as follows: (Top row) 1 AW Cobb; 2 WW Harvey; 3 J Williams; 4 CE Carter; 5 WC Carter; 6 AH Wright; 7 GF Johnson; 8 JH Clayton; 9 FW Playle (Second row) 10 J Dodds; 11 W Haines Junior (District Manager); 12 W Haines (Divisional Manager); 13 DP Haines; 14 W Jordan (Front row) 15 SR Cobb; 16 JW Cobb

The other side of this postcard is more enigmatic, and has no direct connection with any name in the photograph. Perhaps the sender was an employee? It was posted in Romford and the address 88 Como Street is still there today. Many of the Victorian houses still exist in that street, but the one in question, like a good number of others in the road, has been built later, whether by courtesy of developers, or more possibly the attentions of the Luftwaffe in WW2. The card is addressed to Master Willie Pearce on convalescence holiday in Aberystwyth and reads:-

Dear Willie, I am very sorry to hear that you have been unwell lately, but hope that your holiday at Aberystwyth will be the means of restoring you back to your normal health again. Ella is coming here today, to stay I expect, with kindest regards to you and Auntie. Leonard 14 insurancepeople NOVEMBER 2013

So who was Leonard? Willie’s cousin or perhaps an uncle? Whichever it was, it looks as if Leonard will be entertaining Ella while Auntie is away looking after Willie in Aberystwyth.

“The ones that got away”

This month someone who ‘came in from the cold’ from a high profile career in brewing and became a director of one of the big life insurance companies

“What we want is Watneys” Michael Webster 1920-2012

n his later business career, Michael George Thomas Webster was chairman of paper and packaging group Dickinson Robinson and food manufacturer Fitch Lovell, and also became a director of National Provident Institution. The forerunner of NPI was established in 1835 by Quakers and insurance agents William Hargrave and Joseph Marsh. There were several changes of ownership over the years. But it was in the field of brewing that Michael Webster made his name. Long before CAMRA – The Campaign for Real Ale – came along, UK beer drinkers had little choice. (Mirroring exactly the ‘take-it-or-leave-it’ offers that personal lines buyers faced in insurance at that time!). Beer control and supply was in the hands of Britain’s ‘Big Six’ brewing groups, and Michael Webster was in the forefront as Watney’s chairman. Watney’s enjoyed a substantial market share in London and the south-east. His best known beer was Red Barrel keg bitter, heavily marketed under the “What we want is Watneys” slogan.

Michael Webster became chairman of the parent company Watney Mann, to become what has been described as “one of the last generation of paternalist brewery directors”.

ichael Webster’s father worked at the Air Ministry and his mother was a member the Combe brewing family. After schooling at Stowe he took a wartime degree at Oxford before taking a commission in the Grenadier Guards in 1940.

He launched a successful offer for wines and spirits group International Distillers & Vintners, where Watneys already held a stake, but then Watneys itself became the target of a hostile £400m bid — the largest of its kind at that time — from Grand Met, who succeeded in 1972. He joined Grand Met’s board and was briefly chairman of its combined brewing arm, Watney Mann & Truman, before retiring in 1974.

He landed in Normandy in June 1944, and the troop he commanded took part in the liberation of Brussels and action across the Netherlands and Germany. He was mentioned in despatches.

Meanwhile Red Barrel – the only beer to have featured in a Monty Python sketch - became a special target for real-ale campaigners, and the Watneys brand gradually diminished.

Leaving the army in 1946, he joined the Combe family firm, Watney, Combe & Reid, the Combe element going back to 1898. A merger took place in 1958 with Mann Crossman & Paulin to form one of Britain’s ‘Big Six’ brewing groups. And in 1963

Michael Webster was a past Master of the Brewers’ Company and a fund-raiser for Great Ormond Street Hospital for Children. He was also a Deputy Lieutenant and former High Sheriff of Berkshire.

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NOVEMBER 2013 insurancepeople 15

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New date for Solvency II January 2016 A

statement issued by Insurance Europe says that it appreciates the clarity provided by the European Commission’s proposal to postpone the date from which the Solvency II regulatory regime will apply. “Insurance companies will have very little time between the likely finalisation of the delegated and implementing acts that provide important details on technical matters under Solvency II and today’s proposed new application date of 1 January 2016,” said Michaela Koller, director general of Insurance Europe. “The timetable will be very challenging for insurers and supervisors and will likely lead to a significant increase in costs for the industry in preparing for and complying with the new regime. Nevertheless, Europe’s insurers remain committed to the current process for finalising the new regime in a way that addresses the outstanding issues, in particular ensuring it captures appropriately the long-term nature of the industry. Europe’s insurers will endeavour to meet the ambitious timetable for implementation that the Commission proposes.”

* * * * * PwC partner and global insurance regulatory leader Paul Clarke comments: “The current Directive had a start date of January 2014, which became unrealistic given the slow progress on Omnibus 2. It was widely known that a ‘Quick Fix 2’ was required to move the date from 2014, and there was concern in the market that a safe date that avoids the need for a ‘Quick Fix 3’ would have been in the distant future. “The fact that Commissioner Barnier has chosen January 2016 as the start date in this new Directive is encouraging and reflects confidence among the policy makers that a solution to the outstanding long term guarantee issue will be found this year ahead of Parliamentary elections in 2014. “This Directive, together with the European Insurance and Occupational Pensions Authority’s (“EIOPA”) guidelines to apply from 2014, will provide the market with greater confidence about final preparations for a full Solvency II implementation.”

“Perfect sense” of Solvency II delay

ommenting on the EC decision to postpone Solvency II application until January 2016, Bruno Geiringer, an insurance partner at Pinsent Masons, says: “The delay makes perfect sense and is realistic as Omnibus II is not ready to be adopted yet and all insurers need to have more certainty about the implementation timetable. The PRA has been accused of running ahead of the rest of Europe with its ICAS+ which has both been criticised (as Solvency II is all about harmonising regulation to apply them across the EEA at the same time and pace) and welcomed as insurers have had to pay so much in preparing for the reforms and developing their internal models whilst there is so much uncertainty. “Having ‘bought the ticket’, some insurers will be keen to move forward now and be critical of the delay, especially if there is a perceived competitive advantage being missed. Others may be less inclined if the long term guarantee assessment (the cause of the delay) brings in adverse consequences for them. If there is one thing that can be said of all EU Directives, and certainly more so with the Solvency II Directive now, it is that you can please some of the insurers some of the time but you certainly can’t do so for all of them all of the time.” 16 insurancepeople NOVEMBER 2013

BIBA Scotland conference on the way

“

ne powerful voice” is the theme for the 35th BIBA Scotland conference, to be held on November 20 at the Inchyra Hotel & Spa, near Stirling. As well as a trade fair with more than 30 exhibitors, there will be conference presentations including: a debate on how best to navigate today’s claims environment and get the right results for customers; the importance of recognising under-insurance and how brokers can help their clients avoid the dangers; how to gain maximum benefit from schemes; the pitfalls awaiting unprepared brokers and how to avoid them; and what BIBA is doing to deliver on the issues that matter most to brokers. The full programme and registration can be found at www.campaignpartners.co.uk/bibascotland.

in association with

FCA to issue warning notice statements T

he FCA has confirmed how it will use its new power to publicise warning notices by publishing information about proposed enforcement action. Previously, the regulator could only publish information about enforcement proceedings at a later stage in the enforcement process, once it had decided to take action. Following a period of consultation, the FCA said that information would be made public through a warning notice statement that will usually name the

firm under investigation and, in certain circumstances, name an individual. The director of enforcement, Tracey McDermott, says, “We listened carefully to views from inside and outside the industry. I believe we have got the balance right so we now have in place a regime that enables us to provide information to consumers, investors and firms earlier about the action we are taking to tackle misconduct to ensure markets work well and consumers get a fair deal.

VisionRe defers until 2014

isionRe, recently launched by Argenta Private Capital to pursue investment in the Lloyd's market, has decided to defer the company's capital raising and capacity deployment until 2014. The company says, “Although VisionRe has attracted a high level of interest and substantial commitments from investors, together with an enthusiastic reception from Lloyd’s managing agents, the company has not yet secured sufficient opportunities for the deployment of its capacity in a manner and on terms that are commercially attractive enough to enable a suitably balanced portfolio to be created for investors at this time.“

Keoghs defeat fraudulent £100,000 claim

eoghs, providers of claims-related services to the insurance sector, recently worked closely with LV= to defeat a suspected staged accident claim worth over £100,000, after adopting strong credit hire fraud arguments. During investigations, Keoghs also uncovered information which was

deemed important enough to assist the police in a large scale criminal case (which resulted in the claimant being jailed for 25 years for an unrelated offence), “ … highlighting how innovative some insurers and investigators are when it comes to uncovering and stamping out fraudulent motor claims”.

“It is clear that the more transparent and open that we can make the regulatory process, the more confidence we can give people that we are acting in their best interest.” * * * * The Financial Services Consumer Panel has welcomed the FCA proposals. Its chair, Sue Lewis, comments, “Consumers need to be given information at the earliest opportunity so they can make informed

decisions about which firms to do business with. Knowing that a firm is being investigated for misconduct is an important part of this.” She adds, “The new financial services regulator is demonstrating that it is true to its word, and is not bowing to the demands of the industry to be treated more favourably than other industries. The cultural change of the new regulator is starting to manifest itself in stronger consumer protection, and we look forward to seeing the FCA using its powers.”

2.9m financial services complaints in first half of 2013

onsumer complaints reported by financial services firms fell by 500,000 between the second half of 2012 and the first half of 2013. Data published by the FCA showed 2.9 million complaints were made in the first half of 2013, compared with 3.4 million consumer complaints reported by firms in the previous six months. The FCA found 51% of the complaints reported in the first half of 2013 were upheld, with £2.55 billion of redress paid to consumers. 92% of the complaints reported in the first half of 2013 were closed in eight weeks, the highest percentage since this data was first published in 2006. Martin Wheatley, the FCA’s chief executive, said: “We expect firms to put their customers at the heart of their business – an important part of this is the way they handle customer complaints. Publishing complaints data is a powerful tool that helps encourage competition between firms to improve their service to customers, and help consumers assess their relationships with banks and other providers.” In line with its objective of "securing an appropriate degree of protection for consumers", the FCA requires all firms to report data on consumer complaints. Firms that receive at least 500 complaints in a six month period must also publish this data on their websites. NOVEMBER 2013 insurancepeople 17

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Hastings investment by Goldman Sachs H

astings Insurance Group has entered into definitive agreements, following which Goldman Sachs Merchant Banking Division will acquire 50% of the voting share capital of the group. The transaction, which will be financed through a mixture of equity and new debt financing, implies a net enterprise value of approximately £700 million. For the twelve months ended 30th June 2013, Hastings generated gross premium placed of £444.1m and adjusted EBITDA of £83.3m. As at

30th June 2013, Hastings had 1.3m customers, an increase of 17% on the previous 12 months, with a stated ambition to protect 1 in 10 by 2020. The team that led the management buyout will retain a 50% stake in the business, whilst existing management, led by Gary Hoffman, will also remain invested in the group. Hastings’ chief executive, Gary Hoffman, comments, “Hastings is a fast growing, successful general insurance business. We have a clear strategic plan to continue

providing refreshingly straightforward insurance. We are proud of what we do but know we can get better – we intend to be a force for good in the industry. “GS MBD’s decision to invest with us, and join us in the next stage of our journey, is a strong tribute to all the hard work that everyone in the Hastings team has put in so far. It has been a great growth story in challenging economic times and we are well placed to compete even more successfully in the future.”

Autonet mobile phone interface

utonet Insurance has launched a mobile phone interface for customers to access its website. The company has also updated its home page, with a more thorough overview of product listings. Users will now be able to navigate the website through touch screen buttons and drop down menus. Also added to the mobile phone software is a feature that will allow users to log into their own account to access personal information and insurance documentation, with a download option.

Be Wiser takes on another 15 for Surestart B e Wiser Insurance has taken on 15 new students to its Surestart undergraduate career scheme and is looking to recruit another 20 in the coming months. The Surestart Development Programme will see the new employees enjoy a three-year package that includes a basic annual salary of £18,000. At the conclusion, they will also have obtained an Advanced Diploma Certificate in Insurance.

18 insurancepeople NOVEMBER 2013

Based at Be Wiser’s training facility in Andover, the scheme will provide them with weekly tutorials and insurance experience, plus ongoing in-house management and leadership development. Welcoming the new starters, which bring the total intake so far to 37, Mark Bower-Dyke, Be Wiser chairman, says, “The scheme isn’t just about getting a qualification – it will give them the required knowledge and capabilities to succeed in the competitive business world while earning a salary. More importantly, they won’t have to deal with debts from university fees and student loans at the end of the three year period.” Pictured: Surestart Development Programme’s new intake. Back row (left to right): Jack Poynter, Praphan Browne, Sam Cook, Zak Miller, Jamie Beel, Michael Donkor, Jatinder Tumber, Jaspal Hunjan, John Rees. Front row (left to right): Ben Collins, Tapiwa Munjanganja, Mark Bower-Dyke (Be Wiser Insurance chairman), Crescens George (Be Wiser Insurance assistant director of HR & training), Lucy Caldecourt, Lauren Allen, Oliver Vincent.

in association with

Lloyd's wins Dragon Award L loyd’s has won a Dragon Award from the City of London Corporation for its long-standing work helping students in Tower Hamlets. Part of the Lloyd’s Community Programme works with students in Tower Hamlets to provide support and funding to encourage talented students to go to university outside of London. Lloyd’s has now received the Lord Mayor’s Award for its long-standing initiative. The Aim2Attain programme was set up in response to the cancellation of the Aimhigher programme in July 2011,

Annalie James

threatening university participation for students from disadvantaged communities. The programme works in partnership with Cambridge Heath Sixth Form in Tower Hamlets to provide

mentoring and workshops to students – including interview practice – as well as £5,000-a-year bursaries to fund a handful of students through university. Around 80 per cent of those who are going to university from Tower Hamlets stay at universities in London due in part to financial pressures. Annalie James, from Tower Hamlets, went to Cambridge Heath Sixth Form and was the first recipient of the Lloyd’s bursary. She has just begun her third year studying history and ancient history at Leicester University.

Ageas sponsors Vitality Ball

geas, the insurance partner of Age UK since 2006, was headline sponsor for the charity's annual Vitality Ball which raised funds to tackle loneliness and isolation. Taking place on 10th October at Tobacco Dock, the Charity event featured singing star and “X Factor” winner Alexandra Burke, TV personality Christopher Biggins, who was auctioneer for the night, and broadcaster Paul Ross as host for the evening.

Don’t let claims become a headache Handling motor claims internally can be costly, time consuming and a real headache. Choosing the wrong company can worsen your symptoms too. That’s why we’ve developed our claims business to become the perfect remedy. We tailor our processes to suit you. We don’t complicate – we compliment. Our staff are warm friendly and knowledgeable and we offer a wide choice of services with online claims access through Spyglass and additional product access via Brokernet. So call us now and speak to Alex Dolman, Head of Internal Sales & Development on 01827 308663 or email alex.dolman@rtasolutions.co.uk

We would be delighted to become your choice of claims partner. NOVEMBER 2013 insurancepeople 19

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News

Memorial for Tim Ablett

memorial service took place on 26th September at St Lawrence Jewry-next-Guildhall organised by The Worshipful Company of insurancepeople Insurers. Tim Ablett was Immediate Past Master of the Company in 2011-12. After the service the Ablett family and guests moved across to the Great Hall at Aldermanbury where Insurance People tt presented the original Tim Ableary artwork of the IP July front ion Vis nce ura Ins See page 8 cover to the family – ‘Tim Ablett, insurance visionary’. 2013 issue 35 July/August

Jamie Marchant Andy Ivory Tim Collins e Reg Brown Tanya Gerrard-Whit Peter Thorpe Nigel Phillips

inside include: Insurance People

Pictured left to right: The artist, Carol Newman; Tarrant Ablett; Ann Ablett; Justin Ablett; Davinia Ablett; and the IP Editor

Healthy Pets advice for Christmas Auto Windscreens glass repair

musing antics by family pet dogs may make for great entertainment at Christmas but could end up doubling the cost of the festive fortnight unless proper pet insurance is in place, says Mark Effenberg, chief executive of Healthy Pets Insurance, who adds that “the stable door is often closed after the hound has bloated” with significantly increased numbers of new policies being taken out every New Year as lessons are learnt following excitable pet behaviour.

20 insurancepeople NOVEMBER 2013

His warning to pet owners continues. "Festiveseasoned pet owners will know that curious and playful dogs will target chocolate Christmas decorations and wrapped presents, and if they smell or sense something edible - whether it is or not then it'll either go down in one, or get chewed to bits. "But chocolate can be harmful for dogs if they're not treated very quickly, and chewed up bits of wrapping paper, toys, clothing and so on can also demand treatment.”

deal with Love Insurance

ove Insurance Group (LIG) has signed a new contract for vehicle glass repairs with Auto Windscreens. Matthew Roberts, director of LIG, which was formed in 2012, says “Auto Windscreens has been appointed as our main

glazing repair provider with immediate effect and all windscreen claims will be directed to them. The decision to select the company was based on their track record, whole-hearted approach to customers and our subsequent connections to their wider group.”

RWA launches certificate in international trade

roker compliance assistance and learning supplier RWA Group has announced the Certificate in International Trade for Insurance Brokers (CITIB), accredited as a level 3 qualification by the Institute of Export, building on the success of RWA's The OBELISK on-line learning and assessment portal. The new qualification will offer learners the opportunity to expand their knowledge of cross-border trading and trade credit insurance requirements. As part of the course, learners will automatically become student members of the Institute of Export, giving them access to a range of learning resources, CPD materials and up-todate knowledge of cross-border trade. Those who complete the course successfully will be entitled to use the CITIB letters.

in association with

Cardinus secures BAFE certification

Allied World acquires Markel aviation renewals

ardinus Risk Management has been successfully assessed and granted certification in accordance with the new BAFE SP205 scheme for organisations that provide life safety fire risk assessments. James Truscott, managing director of Cardinus property division, says, “We have been working with the accreditation body NSI to demonstrate the quality of our fire risk assessments and are delighted to have been awarded certification. Being granted this involves

a rigorous examination and assessment of our management systems and processes and an evaluation of the reports and technical competency of our staff. “The granting of the BAFE scheme SP205 award, in addition to our existing affiliation with the Institute of Fire Engineers, allows our customers confidence that our fire risk assessments meet the industry standards. This demonstrates our commitment to continuous improvement in the quality and level of service Cardinus provides to its clients.”

llied World Europe is to acquire the renewal rights to a book of aviation business written by Lloyd’s syndicate 1400 and Markel Europe plc. This business encompasses airline, aerospace and general aviation classes. In addition, the former Markel underwriting team led by Olivier Marre has joined Allied World Europe. Markel acquired the aviation book of business in May this year as part of its acquisition of Alterra Capital. Julian James, president, Allied World Europe, said, “We are delighted to secure such a high calibre team of individuals. By expanding into this market, we are taking another step in the strategy of building out our European business in areas where we believe we can make a meaningful impact.”

No.1 in the handling and disposing of motor vehicles The handling and disposing of motor vehicle salvage is a constant drain on financial and administrative resources. HBC reduce this by providing an unrivalled service. We are prompt, efficient and fully in accordance with current industry guidelines and environmental legislation. We also require only minimum administration to collect and dispose of your vehicle salvage. With continued investment and systems development we are able to set the standards that others struggle to achieve. We are the safest hands in salvage. HBC Vehicle Services, HBC House, Charfleets Road, Canvey Island, Essex SS8 0PQ

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

NOVEMBER 2013 insurancepeople 21

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LMA gets strong approval ratings A

survey of Lloyd's underwriting practitioners, chief executives, managing directors and chief operating officers conducted by the Lloyd's Market Association this summer found that 98% of those who responded believe the LMA's underwriting groups are

fulfilling their terms of reference while 95% said they are addressing relevant key issues either well or very well. The LMA’s survey of over 1,500 member contacts was designed to assess whether the activities of the LMA's various underwriting committees, panels and

joint committees are meeting the needs of the association's membership. Areas where the groups were said to be doing well include co-ordinating views and thinking across the market, helping to develop model wordings and clauses, arranging education seminars and issuing technical updates

through bulletins and circulars. Recommendations for the future include greater communication in some sectors; ensuring membership and communication remain current; and engagement in training and education of the next generation of underwriters.

LV= Broker wins Footman James account

CML welcomes Help to Buy details

V= Broker has been appointed by Footman James to provide kit car insurance and will take on all existing Footman James’ customers at renewal. The kit car insurance product will be Highway branded and can be sold on an agreed value basis, subject to photographs. Various levels of cover are available, including comprehensive, third party fire & theft and ‘parts only’ cover. Michael Lawrence, personal lines director, LV= Broker, says, “The Highway Specialist Vehicle product is ideal for kit car owners as we can be flexible on the levels of cover and agreed value of the car. Footman James is one of the best known brands in the kit car market, with a strong distribution network and we are delighted to be working with them.”

Elite joins Insurance Fraud Bureau

aving recently announced its expansion into the UK motor market, Elite Insurance has become the 45th member of the Insurance Fraud Bureau, who are currently investigating 60plus organised fraud rings across the UK with scams valued in excess of £75 million.

22 insurancepeople NOVEMBER 2013

John Hutchison, compliance manager at Elite, says, “No insurer is immune to the risks posed by fraudsters. By joining the IFB, Elite is sending a message to our customers that fighting fraud and protecting honest policyholders is an absolute priority to us.”

he Council of Mortgage Lenders has welcomed publication by the Government of its detailed package of information about the Help to Buy mortgage guarantee scheme. The CMA comments, “Several lenders have already announced that they will be offering mortgages under the scheme. This means that there is likely to be an increase in the availability of high loan-to-value mortgages as the guarantee scheme should enable the lending industry to have greater confidence in making mortgages available to creditworthy borrowers with low deposits. “Borrowers must expect their ability to afford repayments on the mortgage to be assessed as rigorously as an application for any other mortgage; indeed, from the perspective of the borrower, there is no practical difference between a mortgage that is supported by a Help to Buy guarantee and one that is not. “As for lenders, it will be left to their commercial judgment as to whether to participate in the scheme or not. Some may take the view that they already offer some mortgages at high LTVs with out a guarantee, and may not wish to increase lending at this level.”

in association with

Sterling upgrades household policies S

terling Insurance has introduced upgrades to its Executive Home and Executive Plus household policies. Enhancements from November 1st are: ●

Extension of the agreed value basis of claims settlement on specified items for Executive Home

David Sweeney

●

Both policies now include a preventative measures element towards water leak detection and prevention systems or flood prevention systems following a loss

●

Sterling’s Executive Appraisal service for Executive Plus policyholders now extends to include a jewellery valuation contribution

●

Both policies now include automatic cover for up to £50,000 of contents at any private residence in the UK either owned or occupied by the policyholder

●

The Home Emergency section has been extended to include cover for policyholders locking themselves out without keys and outbuildings used for residential purposes or the policyholder’s business.

Sterling has also simplified policy wordings and terms and conditions. David Sweeney, head of personal and commercial insurance at Sterling, comments: “We’re always looking to see how we can further improve our products and services to ensure our broker partners have a quality proposition to put in front of their clients. Having listened to their feedback over recent months, we’ve made some important changes to both Executive Home and Executive Plus to provide an enhanced level of cover that is still competitively priced – a move that I firmly believes underlines our position as a preeminent high net worth insurer.”

We believe in nothing less than first class service. We’re here to provide the best possible insurance for your clients. Our specialist knowledge built up over many years in the not-for-profit sector means that we are in a great position to understand exactly what cover your clients need. We can give you a truly personal service – one that you can rely on for fast, efficient underwriting decisions and claims management. So you can be sure we will deliver nothing less than the outstanding products you deserve.

www.ansvar.co.uk Tel: 0845 60 20 999 or 01323 737541 ansvar.insurance@ansvar.co.uk Business division of: Ecclesiastical Insurance Offi Office ce plc. Registered Office: Beaufort House, Brunswickk Road, Gloucester GL1 1JZ. Registered No. 24869 En England gland All content © Ecclesiastical Insurance Office p plc lc 2013 Member Conduct of: Association of British Insurers, Financial Ombudsman Omb budsman Service. Authorised by the Prudential Regulation Regu ulation Authority and regulated by the Financial Con nduct Authority and the Prudential Regulation Authority. Authority.

NOVEMBER 2013 insurancepeople 23

insurancepeople

News

Arrests follow fake car insurance F

ollowing months of investigation by the Insurance Fraud Enforcement Department (IFED), 27 people have been arrested in Leicestershire, London, Manchester, Thames Valley and West Midlands for “ghost broking”. DCI Dave Wood, head of IFED, said: “This day of action reveals ghost broking to be a UK-wide problem which is being met by a national law enforcement response, led by IFED. “The consequences for innocent motorists who fall victims to ghost brokers can be dire, so it is absolutely vital that drivers shopping for car insurance online, or through other means, question what they are being offered to ensure they get a real deal. “Driver diligence, coupled with enforcement action being taken by IFED and supported by local forces, is the best way to confront this threat now and in the future.”

CII accreditation for LMA Academy

he LMA Academy, the professional training and development programme managed and run by the Lloyd’s Market Association, has been awarded accreditation by the CII. The Institute has awarded the LMA Academy its CII Continuing Professional Development Accreditation for its master classes and workshops, as well as its Syndicate Business Plan Foundation

Programme, which teaches young professionals in the Lloyd’s market how to manage a syndicate. The LMA Academy is now in the process of developing foundation programmes for claims, wordings and risk management. These courses will provide participants with a base of technical education that will complement the ACII professional qualification.

Atlas Products acquires Orbit UK

tlas Products International, service providers for ecommerce and e-business, has acquired Orbit UK. Based In Manchester, Orbit provides EDI network services for, among others, AXA, Zurich, Aviva, RSA, Lloyd’s and Kelloggs. It will operate as a sister company to Atlas, concentrating on the insurance market. Atlas CEO Allan W Gray says, “Orbit and Atlas have been friendly rivals for many years and are very well matched. This acquisition will strengthen our customer base in insurance and financial services and allow Orbit’s customers to benefit from an extended suite of solutions, products and services from the wider Atlas Group. This transaction confirms Atlas’ position as one of the market leaders in EDI and ebusiness.”

Autonet Insurance wins two awards

taffordshire based Autonet Insurance were winners of two categories at the Midlands Contact Centre Awards in Birmingham. The 700-employee call centre business won both the “Best use of technology” and “Commitment to training” categories.

24 insurancepeople NOVEMBER 2013

MD Ian Donaldson comments, “To be chosen out of 700 companies across the Midlands is an outstanding accomplishment and a credit to both our Telecommunications and Learning and Development departments.”

JLT acquires Taiwan broker

ardine Lloyd Thompson has strengthened its presence in Taiwan through the acquisition of ForVision Risk Services Ltd, a broker providing insurance, reinsurance and risk management services. The business is being combined with JLT's existing operations in Taiwan. Duncan Howorth, CEO

of JLT Asia, says, “This merger is another step in JLT’s strategy to build out its specialty capabilities and grow its international reach and relevance. Combined with JLT Taiwan’s existing No 1 position in the aviation market, this merger positions JLT for broadbased growth in this market going forward.”

in association with

Commercial online cover notes from LV= Broker

Fulbright Lloyd's Award open for entries

V= Broker is launching commercial lines online cover notes that brokers can download and print off. The facility will initially be available for fleet policies and will be made available on other product lines over the coming months. Brokers will be able to create the cover notes instantly via the LV= Broker portal, which can then be downloaded and printed off for immediate use. They’ll also be able to extend cover notes without the need to re-key customer information. Mike Crane, LV= broker commercial lines director, says, “We want to make it as easy as possible for brokers to do business with us. Our broker partners tell us that they want to trade more online and we are investing heavily in our etrading capabilities to deliver this. The new online cover note facility will significantly reduce the time brokers spend on admin and auditing, freeing them up to focus on their business.”

he US-UK Fulbright Commission has partnered with the Lloyd's Tercentenary Research Foundation in order to offer one grant to a UK academic or professional to pursue research in the US in a subject related to insurance for a period of three to nine months. The Fulbright Lloyd’s of London Insurance Award is open for entries until the 15th November 2013 and topics for research may include but are not limited to: Emerging and evolving risks; energy risks and insurance; social media and insurance; insurability of agricultural risks; risk accumulation in, for example, South East Asia; modelling risks in countries where there might be lack of data; climate change; measuring casualty risk across geographic and political boundaries; and impact of globalisation on supply chain risk.

“Strong underwriting result” at Lloyd's, says Aon Benfield

he latest Lloyd's update from Aon Benfield Analytics' market analysis team shows that the market reported a 10% decline in pre-tax profits to £1.38bn for the first half of 2013 but that “a strong underwriting result” resulted in an annualised return on capital of 14%. GWP rose by 5% to £15.5bn, and prior year reserve releases increased to £779m while major losses were almost half the long term average at just £230m, resulting in a combined raio of 86.9%, “one of Lloyd's best ever first half underwriting performances”. Mike van Slooten, international head of market analysis at Aon Benfield Analytics, comments, “Lloyd’s results in the first half of 2013 extended an impressive track record and investor interest remains at high levels. These traits are likely to be rewarded with rating upgrades over the next 12 months, which in turn will potentially widen the market’s access to business.”

NOVEMBER 2013 insurancepeople 25

in association with

insurancepeople

News Credit repair rate checks becoming standard

Motor insurers “taking a gamble”

he latest “Confused.com Car Insurance Pricing Index” (in association with Towers Watson) says that UK motor insurers appear to be “taking a gamble” on the claims cost savings that may arise from recent legal reforms. Average comprehensive premiums fell by a further 3.9% in the third quarter, says the index. The latest decreases mean that the average cost of a comprehensive policy has fallen by 13.9% in the last 12 months to £652, the lowest since March 2010. Confused.com says that most of the decreases are attributable to implementation of the Legal Aid, Sentencing and Punishment of Offenders Act (LASPO) and the associated reduction in fixed legal fees for personal injury claims. However, Stephen Jones, UK general insurance pricing leader at Towers Watson, sees a complex picture behind the latest price reductions. “Already we’ve seen a number of senior figures within the industry suggesting that some may have placed too big a bet on LASPO and the other reforms. But there are other factors at play here. For younger drivers, an increasing number of telematics offerings are driving down average premiums, whilst for mass-market risks, data enrichment is providing a basis for more confident, targeted price reductions. On the basis of these trends, we’d expect to see the cheapest premium measures to keep on falling, but with increasing price dispersion.”

26 insurancepeople NOVEMBER 2013

CF reports that insurers are building credit repair rates checks into their motor claims processes as standard, following the launch of its credit repair database and labour rate validation service in April. Inflated labour rates have been identified on 62% of credit repair cases referred to TCF in the last six months. The remaining 38% of cases screened had their labour rates validated, free of charge, and were returned for settlement. The average saving made on challenging an inflated credit repair invoice is about £400, says TCF. Stuart Dennis, CEO of TCF comments: “Never before have insurers had

the ability to screen and validate or challenge credit repair charges, utilising a robust, current database of labour rates and case specific evidence where necessary. And, never before have insurers’ credit repair teams had a forum to network, share knowledge and best practice; unlike their CHO counterparts. We recognised the need and responded. Overwhelming demand for the service and to attend our user community events, demonstrates the industry has a voracious appetite to act and collaborate, to control this area of increasing claims costs.”

£50m GWP for Boswell Group

s it passes £50m GWP for the first time, The Alan Boswell Group also celebrates the award by the CII of Charterted Insurance Brokers status for all five of Alan Boswell's general

Chris Gibbs

insurance operations. Chris Gibbs, managing director of Alan Boswell Insurance Brokers, says, “Both of these achievements are real landmark moments for our group and represent the power of professionalism and excellent customer service. “This recognition from the Chartered Insurance Institute, coupled with our increase in GWP, shows that our commitment to ethical good practice and first rate customer service from our highly qualified staff is a formula that’s working.”

On the move Who’s going where?

In association with

VEHICLE SERVICES Collection, storage and sales

Aspen

Christine Black

Open GI Open GI appoints Christine Black as account manager for the South West. She previously worked as a business development manager at Kindertons Accident Management.

Aspen Reinsurance appoints Michael Dicker as global head of its agriculture reinsurance business. He was previously head of agriculture, Alterra Group and underwriting manager, agriculture, Alterra at Lloyd’s Syndicate 1400, managing director and coleader of the Guy Carpenter Group Global Agriculture Specialty Practice and underwriting director and co-founder of Agricola Underwriting.

EC3/Legal EC3/Legal appoints Ian D’Castro as legal director. He has previously worked at Brit Insurance where he was head of legal, and Aon and Combined Insurance of America.

GAB Robins GAB Robins appoints three graduates as part of its graduate development programme. Gareth Ephraim studied law at the University of Chester. Craig Middlebrook is a building surveying graduate from the University of Central Lancashire, and Soti Nikalaou a law graduate from the University of Birmingham.

BMI

Barbon Barbon Insurance appoints Martin Totty as CEO. He spent six years as CEO at First Assist Insurance Services and then Cigna Corporation and has also worked at Unigate, PepsiCo and United Biscuits.

Gab Robins graduates

Alaana Woods

BMI Heathcare appoints Alaana Woods as head of B2B and health screening. Previously BMI’s international director, she has also worked as a business development manager for Create Marketing.

DUAL appoints David Armstrong as regional development underwriter for the South East. He joins from ACE and previously worked at Aon.

RFIB RFIB Group appoints John Hoggard as director of its office in Durban, South Africa. With over four decades’ experience, he previously established and managed insurance brokers HIB and has held senior positions at David Katzen Insurance Brokers Johannesburg and CT Bowring.

Bluefin

Ian D’Castro

DUAL

Bluefin Insurance appoints David Miller as director of Bluefin Sport for Scotland. He joins from Giles where he was the director for its golf and leisure sector insurance schemes.

David Miller

George Doughty

Argo Argo International appoints George Doughty as class underwriter for political risk and trade credit. With over 30 years’ experience, he joins from Hardy where he was senior underwriter for political risk and trade credit and has also worked at Faraday Syndicate 435. NOVEMBER 2013 insurancepeople 27

On the move Who’s going where?

Ingrid Murray

BGL BGL Group appoints Ingrid Murray as consumer marketing director for Frontline. She joins from Interbrand where she worked in brand strategy consultancy, has also worked as global strategy director at Zenith Optimedia and for Confused.com

Covéa Covéa Insurance appoints Keith Hector as head of regions – South. With over 25 years’ experience, he was most recently managing director of his own consultancy practice and has previously held several senior roles at AXA, latterly as distribution director, commercial intermediary.

DWF

Open GI

DWF appoints Xanthe Andrews to their catastrophic injury team. She joins from Irwin Mitchell where she was associate solicitor of the international travel litigation group, personal injury division and was previously associate solicitor and team manager – serious injury unit at Shoosmiths.

Open GI appoints Mario Christophides as account manager for the South East. Formerly an account director at Arthur J. Gallagher, he has also worked at Bluefin as an account executive, Heath Lambert and HSBC.

HSB HSB Engineering appoints Sam Alcock as construction project leader. He joins from Aviva where he was trading underwriting manager for construction, power and engineering and previously spent over 30 years at RSA.

Craig Campbell

28 insurancepeople NOVEMBER 2013

Mario Christophides

Aviva UK & Ireland General Insurance appoints Maurice Tulloch as CEO. He was previously president and CEO of Aviva Canada and executive vice-president and CEO at Aviva Ontario.

Allianz Allianz Commercial appoints Mark Shepherd as regional underwriting manager. He was previously regional director for London and East Anglia at RSA.

York International appoints Marc Godfrey as associate technical director. He joins from Crawford & Co. where he was international director global technical service.

Shaun Barrington

UIB United Insurance Brokers appoints Shaun Barrington as managing director of their nonmarine & energy division. He joins from Willis where he was managing director of the North American property division and previously spent ten years at Sedgwick / Marsh.

MDS

EDM EDM Group appoints Craig Campbell as senior sales consultant. He joins following senior sales roles at R R Donnelley Global Document Solutions, Iron Mountain and CDS Global.

VEHICLE SERVICES Collection, storage and sales

Aviva

York

Sam Alcock

In association with

Jorge Luzzi

MDS appoints Jorge Luzzi as executive president of Herco Global. Previously global risk management director at Pirelli, he has also been president of IFRIMA, the international risk management association and president of FERMA.

by Andrew Newman

You’re there. But where am I?

an ewm wN ndre by A tion socia in as

with:

ere. I’m h re you? a re Whe

? It mies signal at Ja a iting t get me wa you can’ be. An Tu s my e seem down the caused to th ly t, even casion when t not on also mos than on one oc up at ciden lay, but ief ac ing ed gr warn from ’s de when lf turn too, but host ted any e on point st himse ce d m di rfa am na en (I r prev the su r Tottenh the ho ong one. guest). th he hing a ble wi reac pths unde ally the wr was only the ta ct! entu s I rfe ng d ev the de Road. ng wa then u ha it! Pe d she di use G endi t of ch uld yo ld An Cour e happy ed up at th pr thho think y’s ng wo your lun wi rn wi u Th , lo tu yo I’ll up da t. st en ow iously turn , but momen tever of to you’ve my ho ving prev she nd wh Wha banality ciety, a ogies e that arou st – who ils to n so d apol cuse for pm ha l to tell m ho t the drive eat inten y re - fa 2.30 ting na abou phonegr the ex , I don’t es. sig a mee met befo Broke m y. . to ile no – r got a her wa mob vice has “I’m here y nam And time? ptember neve on e ing an ar on was Se the de eased th situation. ress nam appe cord in d five ” ug, st being re extent are you? rly call to of at sm own red an ea re las, th nfidence e right , no hund y no Whe th co hour one in So wh e at halfless tes! plac s applied minu r the first rd, no . right in ay e wo nt ly Fo th in ’t alw rticular ll, no restaura hasn e ca e time uation. Pa I recalled phon ge to th it could e ol sa wa this sit cation, as e window on mes a wh The th ing. longer – that rant . this lo g out of Noth e et restau cin been caus xt glan Adriatico Mitre Stre I have urs - be in my ne e ere e of at th two ho e time of no point her sid venue wh ress rder s th he ot t So he

John Cleese’s Basil Fawlty, but leave out any of the malice

ast month’s On the Road looked at the hazards of logistical gymnastics getting two people together for a lunch meeting from the point of view of the lone diner waiting for his host to turn up. But reader response suggests another look at this phenomenon, this time from the POV of the empty chair on the other side of the table, namely the absent host who responds, “Okay, you’re there. But where am I?” Enter the lovable eccentric – and the insurance industry has supplied its share over the years. Imagine such a man, exuding a heady mixture of traits. Here’s the recipe:●

To begin, take the manic enthusiasm of the late Patrick Moore. Someone who may know what’s going on at the other end of the Universe, but doesn’t realise their shirt collar is sticking up

●

Add in the awkwardness and double-takes of

●

Finally stir in the fictional version of the American comedian Larry David, capable of digging himself into holes… and keep digging

In other words, the absent minded, socially inept, yet lovable genius. Meaning well, but saddled with a brain that won’t stop working, and often misses out on the wider picture and the social graces. Feedback reveals such a person existed in the life sector in the 1990s, now enjoying secluded retirement. The relevant whistleblowers are seeking to make contact as IP goes to press, so no names for the present (either of the whistleblowers or the man himself). So let’s call him Eric. A genius in his field – setting up insurance-related mortgage deals. A man promoted beyond his abilities directly as the result of that sales success, but with no development to widen his skills into other areas. The missing skill relevant to this story is the

art of delegation in organising the entertaining of important intermediaries on the wine-and-dine front. Eric’s inability to delegate inevitably led to plenty of “Eric! Where are you?” calls and a constant headache for his personal assistant/secretary. Instead of letting her organise his diary, he kept lunch dates in his head or on scraps of paper. Needless to say there were numerous double bookings and plenty of Fawlty-like “Tell him I’ve got another appointment” farce. Eric’s magnum opus was literally an encounter of the third kind - a triple(!) booking. Picture the scene. A typical reception area to be found in many insurance branches open to the public. Double entrance doors opening into a reception area. Windowless interview rooms to the left; staff sealed off behind a long counter to the right; and a door marked ‘Private’ ahead – Eric’s private office. In other words, a wonderful stage for the performance about to take place. Lunch time. Our staff witnesses are making their way to their own lunch through the flap in the counter. Eric yanks his door open and strides out, calling

in association with:

across the counter to his long suffering PA that he is off to lunch with Mr Red. She (our correspondent tells us she was a dead ringer for “the plump one” in TV’s Birds of a Feather) is just taking a call on his behalf and the rest of the script went like this: PA: Mr White is waiting for you at the restaurant. Eric: Do’h! I can’t see him. I’m lunching with Mr Red. Mr Blue: (A new character who enters at that precise moment) No you’re not. You promised to take me to lunch round the corner and here I am!

t’s not just in ‘logistical gymnastics’ with restaurant hospitality where scatterbrain absent-mindedness takes control. When ridiculously promoted as manager of a prestige office in London’s West End, ‘Eric’ became a commuter, and quickly became extremely well known at the railway lost property office. His most classic moment was in claiming his umbrella that he had left at the lost property office that very morning when calling to collect his coat! NOVEMBER 2013 insurancepeople 29

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