Insurance People November 2014

insurancepeople issue 48 November 2014

Tony Weller See page 12 Insurance People inside include:

Phil Bunker

Brendan Devine

Nick Giddings

Malcolm Forbes-Wilson

Andy Hawkes

Eddie Longworth

David Heffron

Peter Thorpe

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

Person

Your Helpful Insurance Partner.

At Commercial Express we have a new brand, a new website, and a new way of working dedicated to you.

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in association with

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Lest we forget hile the nation’s thoughts naturally turn to the events of one hundred years ago, this homily pays attention to those insurance customers who face a second homeless Christmas, still waiting for the insurance ‘promise’ to be fulfilled while their homes dry out following last year’s flooding.

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Editor and Publisher

Consultant Editor

Andrew Newman

Brian Susman

The recognised need for drying time has got insurers off the hook – but it’s some loss adjusters who are raising client hackles with poor social skills, and a blatant jobsworth mission to knock down the claim.

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

A common ploy is persuasion to move back to offset alternative accommodation costs. In some examples there are families ‘camping’ upstairs, using the bathroom washbasin for the washing up.

Some clients who refuse to move back report constant hassle from their adjuster. One victim has never seen his one, based 200 miles away, who pesters with constant cost-cutting proposals over the phone. She has never visited the property!

November 2014

In this issue 2

Late news

4

Market talk

10

Interview Phil Bunker, LV=Broker

12

Take Five Tony Weller, Citadel Risk

14

Subrogated claims Eddie Longworth, Halo

Commercial Director

Who said insurance is boring?

Jeni Hall jeni@insurancepeople.uk.com 07969 510172

The memoirs of the late Malcolm Forbes-Wilson

15

www.insurancepeople.uk.com

16

Printers

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

Peter Thorpe, Farg Assistance

17

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

Risk management Andy Hawkes, Cardinus

9

Nick Giddings sees a big future with Big Data

10

Phil Bunker has braved four dips in the insurance cycle!

18

Personal accountability David Heffron, Addleshaw Goddard LLP

Also find us on:

ISSN 2043-9202

19

News

26

On the move

Insurance People is published monthly by Buttermere Wedge Publishing Limited.

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

Outsourcing

Who’s going where?

28

14

Eddie Longworth offers a repairer’s view on subrogated claims

16

Outsourcing - Peter Thorpe signals the pitfalls to avoid

On the Road In the Hedge

NOVEMBER 2014 insurancepeople 1

insurancepeople

Late News

in association with

Thames chooses Applied for single system pplied TAMOnline UK has been chosen by Thames Underwriting to consolidate its business processes into a single management system application.

Applied says that Thames Underwriting will be able to manage all business operations, including policy administration and accounting functions, from one application,

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“ … enabling the underwriting agency to drive business growth and profitability by increasing staff productivity and improving its reporting and analysis capabilities”.

Jeff Purdy, senior vice president of international operations, Applied Systems, comments, “Continued industry consolidation and movement among the UK insurance market requires

industry stakeholders to leverage the latest technologies to increase business agility, enabling insurance companies to increase operational performance and quickly respond to changing client demands. As a single integrated application, Applied TAMOnline UK will enable Thames Underwriting to improve productivity in their core business while

Jeff Purdy

providing flexibility and additional time to respond to new market opportunities.”

AXA Assistance selected by Tesco Bank

Gallagher unveils retail executive

esco Bank has selected AXA Assistance as its new home emergency cover provider, servicing claims via its nationwide network of independent contractors.

AXA Assistance says that the move reflects its “... investment and commitment in building a robust and high quality network of contractors, with proven track records in delivering responsive, high quality support”.

Vikki MacLeod, head of home insurance from Tesco Bank says, "AXA Assistance's expertise and flexible approach have been key factors in selecting them to deliver this service. They have shown that they have the expertise to develop valueadded products that respond to the needs of our customers.

They have also demonstrated the capability to provide a transparent and high quality service to effectively manage the customer's claims journey."

xecutive changes at Arthur J. Gallagher include Janice Deakin’s appointment as UK retail CEO. John Durkin remains chairman – UK retail. Phil Branch, becomes chief operating officer. Kay Smith, formerly finance planning & analysis director for the overall international broking business, becomes chief financial officer.

Declan Durkan, formerly managing director of casualty in the specialty division, becomes managing director national broking & placement. The UK property & casualty team, headed by Martin Lacey, will move across into UK retail from specialty to become part of this new national team.

Jane Spriggs, who has joined Arthur J. Gallagher from Equity Insurance Group, takes up the newly created role of HR director for UK retail.

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Broker promotion animation from BIBA IBA has produced a short animated video to promote the value of brokers. Launched at the Labour and Conservative party conferences, it was broadcast throughout the events in key locations to promote the role that brokers play in helping MPs’ constituents find insurance cover.

A slightly modified version is now live for BIBA members to use on their websites and on social media to promote insurance brokers. It can also be personalised for BIBA members who wish to add their own logos and voiceover.

Graeme Trudgill, BIBA’s executive director, comments,

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“Members can take advantage of this animation and download it at no cost to them, or it can be personalised for individual brokers for a small ‘at cost’ price. We are pleased that it performs a number of roles – promotes brokers at the political conferences, forms part of BIBA’s wider promotion, and gives members a new promotional video.”

The video can be viewed on the BIBA website at http://www.biba.org.uk/BIBATV.aspx Members should contact Andy Thornley to arrange personalised versions.

market talk

Andrew Newman

CDL contribute on Sure Thing!

Devine on a Sure Thing! omeone I’ve been meaning to catch up with is the former Kwik Fit and Ageas UK retail commercial director, Brendan Devine. He launched motor broker Sure Thing! in April. Based in Motherwell and backed by private investment, there’s Steve Harvey, co-founder of SwiftCover and Peter Hubbard, CEO of UK General on board as non-execs.

But I was ‘headed off at the pass’ so to speak because software solutions provider CDL had already got there before me. So, to purloin a Spamalot Pythonism, the following words are ‘lovingly plagiarised’, courtesy of the most recent edition of CDL’s in-house publication, The Link.

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Earlier this year, new insurance broker Sure Thing! entered the market. A fresh and unique brand, it enjoyed the perfect start to its trading life, smashing sales targets by 300% in its first quarter. Its chief executive officer, Brendan Devine gives his perspective on the launch and his plans for the brand.

Q: Sure Thing! is a fairly unusual name for an insurance broker. How did you arrive at it?

Q: What have the critical success factors been?

BD: We were well prepared for the go-live. Everything had been tested and the technology all worked as it should do. We were well supported by all our partners, including CDL, and we have a great deal of industry experience amongst our senior team, which meant we had good connections to draw upon. We’ve also been able to recruit great people in our contact centre, which currently employs around 60 people.

Q: Why did you appoint CDL as your software partner?

BD: We prepared a brief and went through a tender process with the key software houses to select our partner of choice. Historically, the insurance sector has been relatively antiquated, and there just isn’t room for that in today’s digital landscape. CDL were chosen as we felt they were a like-minded business with a scalable solution to support our growth plans. We were impressed with Strata, the responsive nature of the journey as well as the online self-service portal which reflected where we wanted to go with our brand.

Q: Have they delivered?

BD: Great service and experience is at the heart of what we’re about. We wanted our customers to be clear that we’re very straightforward to deal with and that nothing is too much of a problem. ‘Sure Thing!’ suited our vision perfectly, and the brand really developed from there. The response to the brand from consumer testing was very positive and, since launch, we’ve had great feedback on our customer experience.

Q: How have things gone so far?

BD: We enjoyed an incredibly smooth launch. We went live on 1 April 2014, exactly as planned, with 11 insurers and links to four aggregators live within the first week. As a result, sales have been consistently above our forecasts, making for a great start. Also, most encouraging is that our customers have responded really well to the brand and customer journey. We are seeing 80% of our customers buying online, and results from a survey show 91% would Brendan Devine recommend us.

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BD: In practice, it’s delivered exactly what we hoped. Our website is performing well and is optimised for mobile and gives a good digital experience. As a result we’re finding that 80% of our customers are buying online and the vast majority of those are registering for the self-service portal.

That’s translated into 25% of mid-term adjustments made online, a figure that is growing steadily. It sets us up well to operate efficiently and, overall, we’ve had great support from CDL, which has contributed to the positive start we’ve enjoyed.

Q: Any plans for the future?

BD: Certainly we hope to continue the growth we’ve seen to date, particularly as we continue to add insurers to our panel, and make improvements to our customer journey through more technological innovation.

We also plan to launch new products over the next 18 months, and we will be continuing with our recruitment drive to support these plans going forwards.

Our aim is that 2015 will be an even more exciting year for Sure Thing!

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The Link – November 2014

in association with:

New one-stop-shop for risk assessment

CRIF launch Decision Hub he recent launch of the CRIF Decision Hub (see page 23) offered an ideal opportunity for a chat with CRIF director Sara Costantini to talk about the benefits to insurance providers of access to a centralised data source to acquire real-time risk information, speeding up both acceptance at the point of sale, and settlement at the point of claim - plus overall enhancement towards fraud prevention.

download additional apps for each device, or connect to a mobile-only website. A true one-stop-shop! And CRIF will continue to innovate to deliver to meet the needs of the insurance industry.”

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“It’s the result of years of analysis and work to bring together all the information that insurance providers need to assess individual risks into a single product,” says Sara.

CRIF is a global company specialising in business information and decision support. Established in 1988 in Bologna, Italy, its Tunbridge Wells-based UK operations - CRIF Decision Solutions Ltd - began in 1997 specialising particularly in fraud prevention and decision management solutions for the UK insurance industry, IFA monitoring systems for life assurers, and the management of general insurance claims databases for insurers.

“

The layout

adapts to any device

”

Sara Costantini

CRIF handles the data feeds from CUE and is the technology platform provider for the Claims Portal, and its insurance clients include firms such as Markerstudy and Admiral.

I asked Sara about the onestop-shop aspects of the CRIF Decision Hub. “The hub integrates real-time data, software, and analytics to enhance risk assessment.

The real-time verification is gathered from various sources through one point of access. This is very important to insurance providers when speed, efficiency, and accuracy is so essential to their trading needs.

“It’s innovative, and the hub has been steadily enhanced following user-experience,” she adds. “The Decision Hub is built on responsive technology which allows users to access the platform from any location with internet availability, and the system responds to suit the device being used.

“The aim has been to ensure the layout self-adapts to any device, avoiding the need to

hen the facility was extended to legal firms Sara tells me that in tailoring and offering services to solicitors, CRIF drew on its experience and proven track record in the development of consumer profiling and information services for insurance companies. “Legal firms only need internet access.

There’s no requirement for interface investment.

Registration is free and users can select the services they wish to activate,” she says.

“Multiple user profiles can be assigned and administration of users and passwords is managed by a simple process. Existing clients have the option to migrate to the Decision Hub with support from CRIF to ensure a seamless transition.”

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“

Integrating

real-time data, software and analytics

”

Sara believes the legal sector faces exactly the same challenge as brokers and insurers – that of ‘knowing your client’. “In time pressured, competitive

environments, access to reliable information is vital when taking on new clients, to ensure due diligence is demonstrated, reputation is protected, and income streams are validated and profitable. We want to innovate and build solutions which are swift, secure and user friendly to give our legal, and other clients the ability to arm themselves with the right information to support profitable business retention and growth. We’re excited by the opportunities the Decision Hub represents for all our clients via this onestop-shop concept.”

PowerPlace partners to reap ‘Big Data’ rewards elating to his article this month on page 9, I asked PowerPlace CEO Nick Giddings how ‘Big Data’ is benefiting PowerPlace broker partners. “We have already started working with our insurer partners and third party providers to enrich the products we have on the PowerPlace platform,” says Nick. “We’re also working with insurers to validate the data that brokers collect and key into PowerPlace, and in fact capture that data externally. This will in turn will help to minimise fraud, enhance the accuracy of data, and ultimately the accuracy of price.”

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market talk Absolute say “Smart data, not Big Data!”

Fraud – the next bandwagon?

Back in the 1990s I found myself very uncomfortable when talking with an entrepreneur whose eyes shone with £ signs. He had sought me out because I was involved with the first launch of the ‘courtesy car for claimants’ idea. I was wearing my chartered insurer/marketing hat, and in my naivety my thoughts were harnessed solely on the customer care issues. But this man’s greed was already fastened onto the concept of what eventually became the credit hire, credit repair, and claims farming bandwagon. And I knew that it was going to be our industry and our customers that would be footing the bill.

choes of that 1990s discomfort hit me again more recently on a different topic – fraud prevention – at the Absolute Partnership Conference held in September in Aldermanbury.

Not against anyone at the conference I hasten to add – these were the good guys!

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The conference theme ‘Cutting Through The Noise’ charted the way our industry can complicate things for itself, or believe its own hype.

The message was, “Get excited about what you do, and add genuine value - or get out of the way.”

The point being made was that fraud has become yet another bandwagon for

David Beardsworth 6 insurancepeople NOVEMBER 2014

various levels of carpet bagging, and our industry is awash with fraud offerings, some of which are simply ‘winging it’.

Absolute MD David Beardsworth advised insurer claims and fraud folk not to be shy about the credentials of their suppliers. “It’s time for us all to cut through the noise,” he says. “Ask them the question: how many fraudsters have they interviewed? And how many convictions have they been responsible for?”

Other buzz-phrases such as ‘Big Data’ were addressed.

“Military scale systems are fine, but NOT if all they give your claims team is a million dots on the radar,” says David. “The need is to match this with investigative data and intelligence to provide targeted actions – NOT the world’s biggest to-do list.

Smart data, not Big Data!”

As a major growth area for Absolute, there was no surprise that one of the hot topics discussed was personal injury claimant profiles which use Open

Source Intelligence – using public domain sources to make quick decisions, particularly relevant in these times of injury claims portals.

“Is the claimant who they say they are? Were they where they said they were? How do they live? Are there any inconsistencies?”, adds David.

Also discussed - screening of pet claims, industrial deafness claims, bogus, or inflated third party rehabilitation expenses, such as physio bills. There are examples which have even shown collusion with employees in claimant solicitors.

Andy Haynes, joint CEO of Insurethebox spoke about the benefits of black boxes in cars. “You would think that telematics would mean no fraud, but it’s still surprising how many cars drive round a roundabout repeatedly, braking heavily until they are involved in a collision. Also how many ‘stolen vehicles’ are already in the salvage yard, rather than in the place at which they were supposedly parked. Some of

An eventful day he 18th September 2014! Forget the Scottish Referendum.

This was the anniversary of my first work day! At NEM House – still there today amid the City’s Gherkins, Loofahs, Cheesegraters etc

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these vehicles have even visited the scrap yard previously!”

Defendant lawyer Karen Mann, partner of Greenwoods Solicitors spoke about the impact of ‘fundamental dishonesty’ on striking out claims, and how court sentiment is shifting more in favour of defendants, rather than claimants given the high profile insurance fraud has received, including far less tolerance of delaying tactics. “The pinch is on.

Claimant lawyers are having to juggle far larger caseloads to get the same results.”

Former police assistant commissioner Andy Hayman CBE QPM shared his experiences of leading the fight against terrorism, including the 7/7 operations, and drew parallels with the fight against fraud. “Both adversaries can be ingenious and resourceful, and experienced investigators must not become complacent – you need to be one step ahead. Focus on prevention is also essential it creates more headroom for detection.”

in association with:

Phil Bunker looks ahead

Phil Bunker plans ahead his month’s interview with LV=Broker MD Phil Bunker appears on Page 10 and during our conversation I asked Phil about his personal plans for the future. “I was 34 when I first became a director at NIG, and 39 when I became its managing director, so I have been doing this stuff for a long time now. I love

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working in the broker market, and have many personal friends there, but there will be a time when I will want to hand over some executive responsibility, and change the nature of the role that I do here at LV. “I want to still be involved, but not full-on as I am now. That then might allow me to take on a few non-exec roles and to fulfil a

few personal projects. That feels like a plan at the moment, but who knows what life throws at you? And I certainly expect to continue to be full-on here until I’ve helped navigate us through the difficult phases of this current market cycle!”

Phil Bunker started his career at PriceWaterhouse.

Working at Lloyd's for a

couple of years, he joined NIG in 1990 and stayed there for 14 years becoming MD. He first started working with current colleagues John O’Roarke and Peter Horton when NIG was sold to Churchill in 1999.

Four years later Direct Line/RBS bought Churchill and NIG. Phil joined LV in 2006.

Applied at The Belfry ollowing on from last month’s Insurance People interview with Jeff Purdy, senior vice president of international operations at Applied Systems, The Belfry in Warwickshire saw the Applied Net UK conference taking place, attended by users of the Applied software along with industry stakeholders including the CII, RSA Insurance Group, Polaris UK and brokers from the UK and Canada.

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The focus naturally addressed the progress of technology that continues to

The Belfry

advance in the UK marketplace, and in particular the most critical industry trends and developments such as changing insurance consumer demands; shifting insurance distribution channels; and how e-trading and technology is supporting and differentiating the broker channel.

Applied Systems chief executive officer Reid French believes the digital future of insurance will be shaped by “connected experiences delivered

Photo courtesy of Chris Power

through technology advancements, such as cloud computing, online self-servicing, and mobility.

And it will be balanced by the trusted advisor role of independent brokers.”

Philip Nunn, manager of strategy, sales and marketing at Polaris UK says, “The younger generation brings new technological education and multichannel device expectations to the workplace. They expect employers to provide a variety of communication and multi-servicing technologies to support the workplace and help them drive business.”

David Swigciski, SME trading director at RSA highlighted the opportunities for brokers to differentiate themselves with commercial lines e-trading.

“E-Trading provides a platform to streamline insurance transactions,

Reid French

enabling quicker client servicing and supplementing the broker’s role in the value chain. As commercial lines and combined insurance policies are more complex, insurance consumers will continue to require individualised advice from a trusted broker advisor to ensure their risk is properly represented and coverage is complete.”

The date for next year’s Applied Systems user conference has yet to be confirmed at the time of writing.

NOVEMBER 2014 insurancepeople 7

market talk

in association with:

A telematics teaser

Luke Anyon promoted at CDL hose IP readers who prefer to read their copy ‘back to front’ (and there are a number of you) will have already spotted the loaded question about ‘big brother’ and telematics information getting into ‘the wrong hands’. (Just to increase that possibility I’ve used a yellow highlight! – see page 28).

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But I didn’t need to wait for feedback, thanks to Luke Anyon, telematics business manager at software house CDL. He has just been promoted to this position, and I cunningly slipped the ‘big brother’ question in during our discussion on his new appointment.

“I can perhaps alleviate your concern about the police involvement,” Luke tells me. “Currently telematics data is not admissible as stand-alone evidence in any criminal prosecution. The calibration of the devices is not formally approved by the Home Office, which means a defence lawyer can attack the evidence as not being proven or trustworthy.

“This is particularly the case with GPS data as it is widely recognised to be inaccurate. This is why it is also inadmissible as evidence for speeding offences. Having said

that, telematics data can be used in a criminal court as 'circumstantial' evidence as part of a prosecution where there is other supporting primary evidence to support the case. This was highlighted recently in Scotland when the data was used to show that a defendant’s vehicle was outside a house where an attempted murder had taken place.

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GPS data is

widely recognised to be inaccurate

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“I believe the important thing is that real-time data – and the ability to alert emergency services when an accident happens - is, for many people, one of the attractions of telematics. In this incident, it sounds like the young driver had a fortunate escape in going through your hedge without injuring herself or anybody else. Had the collision been more serious, the presence of an alert mechanism in the car could have saved her life.

“Telematics devices, amongst other things, measure g-force. If the impact had been greater, an 'extreme event' would have been registered with the telematics service provider (TSP), who would

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proposition continues to meet the future requirements of its customers.

Luke Anyon

have been able to take action if they saw fit, like contacting the driver, or a parent, or the emergency services.

“Each TSP and insurance provider will have their own rules as to when they want to take action, or make contact with their policyholder. The CDL Telematics Hub allows TSPs to send real-time events to brokers in order to assist with first notification of loss and other such activities.”

Thanks Luke, and apologies for ambushing you with that one. Having said that… well, another query for another time, and the readership may be able to respond as to exactly how the claims farmers get hold of the information. ack to the matter in hand, Luke tells me his new role with software house CDL sees him driving the development process forward to ensure that CDL’s telematics

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“The brief involves responsibility for work being carried out to integrate selected TSPs with the CDL Telematics Hub and offer customers a range of telematics services. This includes pursuing new lines of business linking to the company’s current research and development project to design a home insurance solution based on connected home technology.”

He joined CDL in 2007, and worked as senior client implementation manager and was involved in a number of projects, including CDL’s first venture into the telematics field with Coverbox.

Luke concludes, “Telematics for cars is clearly the future, and it’s exciting to see how this model is being transferred to other areas, such as home insurance. At CDL we’re already exploring how this data could change the nature of home insurance, and I’m hugely excited by the opportunities this will bring alongside our current work with TSPs for motor.”

commercial lines

The big benefits of Big Data

Nick Giddings looks at a future with Big Data

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ig data is currently a hot topic.

Data is now such a valuable asset, opening up more opportunities for insurers than ever before.

But to put things into perspective, Big Data is not just a concept limited to the insurance industry – it’s the driving force in other areas such as social media, TV, and science - to name but a few.

The positive news for insurers is that, irrespective of how much data they are able to handle, it’s how they use it that brings the benefit. But… Big Data is a collection of data-sets so large and complex, it becomes difficult to process using traditional applications. Therefore it is really important that we identify and prioritise the key areas to focus on.

Looking specifically at commercial lines, Big Data presents major benefits for brokers and insurers.

These benefits are similar to the opportunities seen in personal lines, where Big Data is used to enrich policy quotations and generate accurately priced insurance premiums. Undoubtedly this is a major positive when keeping our end consumers happy.

And there’s more to Big Data than just enriching quotations. The data can also help tackle some of the complexities that are not seen in personal lines business. Insurers are able to access a wealth of information about the UK’s growing SME marketplace from Companies House, the Government, and the news.

The data available, and that surrounding socio-economic trends of SME businesses, means that insurers have the ability to now shape products and target their desired companies more effectively.

In turn this allows the broker to offer

Nick Giddings CEO, POWERPLACE

their customers a wider-range of products with competitive pricing too.

The data that brokers collect and key-in allows us to validate or capture that data externally. This in turn helps to minimise potential fraud; assist the accurate collection of data; ensure the product is fit for purpose for the end-consumer; and ultimately produce an accurate price.

Big Data will encourage new insights, enhance business processes, and allow us to work with insurers to shape commercial lines products and further support brokers. The data rush is certainly on, and offers commercial lines brokers huge potential to compete in today’s marketplace.

KNOWLEDGE AND INSIGHT TO LEAD THE WAY

When clarity and understanding matter, choose DAS. DAS has been leading the way in legal expenses insurance since 1975. We continue to invest in forward thinking with our team of research and insight experts that help us keep you ahead of the game.

We know that in today’s insurance landscape, customer understanding is paramount. Our progressive approach puts customer needs first, delivering benefits for our business partners now and into the future.

0845 666 5464 | www.das.co.uk/leadtheway © 2014 DAS Legal Expenses Insurance Company Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority.

NOVEMBER 2014 insurancepeople 9

interview

Phil Bunker MANAGING DIRECTOR LV=BROKER

Braving the waves Phil Bunker and his colleagues at LV= have ridden the insurance cycle tsunami four times, and the LV= story contains other singular features – not least creating a broker operation within a long established mutual insurer AN: Where does LV=Broker fit within the overall LV set-up?

PB: LV is a composite and the LV= brand is used for both life and general business. Policies sold direct use the LV= brand, and some white-labelled polices sold through partners still use the Frizzell brand, e.g. the Civil Service Motoring Association (CSMA).

In the broker channel the ABC and Highway brands are used for personal lines products, while the LV= brand is used for all commercial products, including commercial motor. The broker business comes together under LV=Broker. This is LV’s brokerexclusive division, which has its own dedicated management team, headed by me. I also sit on LV’s GI Board.

AN: So let’s start from the beginning, in 2006 - before LV=Broker came into being. It’s not often that the general insurance market witnesses a well-established management team moving from one insurer to another, in your case from RBS/NIG to Liverpool Victoria.

PB: Yes, I think that situation was fairly unique in the industry. It is rare for a complete team of senior managers from a couple of large, former organisations to leave more 10 insurancepeople NOVEMBER 2014

or less at the same time and coalesce on such a grand scale.

You often get small teams moving along in certain lines of the business, but not often a whole senior management team. In fact, I don’t know another example like that.

AN: Tell me about the team. It all started with ABC, didn’t it?

PB: There were five founders of the original ABC team. I think five is always a good number for high performing teams. The five were John O’Roarke (ex MD of Churchill); myself (ex MD of NIG); Peter Horton (ex ops and claims director of Churchill); Steve Castle (ex FD of Direct Line); and Paul Cassidy (ex NIG and Churchill company secretary, and our compliance guru). My job was to set up a broker channel through which LV could sell their personal lines products, and to also launch them into the SME market.

We’d all worked together for a good few years, and we complemented each other, not just in skill sets, but also in personality. It’s been a really good journey… with a lot of fun, but also a great deal of achievement.

AN: So, it was largely a cold start, but you were able to hit the ground running?

PB: I wouldn’t entirely say that. To start with I found that I was absorbed by helping to sort out some of the problems in LV’s existing business, particularly in pricing. It was only once I had recruited my own management team that we started to get momentum. In that time I drew heavily on the experience of people like John Robson, Jack Brownhill, and Laura Cochran. And I was lucky to have the organising ability and drive of Kevin Gill, who is still with me as LV=Broker’s operations director.

AN: When you came across and set up ABC, not every NIG broker necessarily made the move with you. Is that a case of ‘finding out who your friends are’?

PB: That’s quite a complicated question for me to answer. After 14 years with NIG I had a deep affection for the company, and I was reluctant to target their business. I also knew that while a lot of the brokers I had dealt with in that time had become my friends, I didn’t want to ask for any favours.

What I found was that personal lines brokers did seek us out and support us from the start. Commercial brokers, however, were quite cautious about supporting a new start-up that had no prior experience in writing this line.

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Success depends on continuity of strategy and people

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And I was also pretty cautious about making promises to them until I knew that we could back them up. I wanted to build a really solid business, which is a gradual process. This meant that in commercial we had a slower start than I would have liked. But as the momentum and our track record built up, so great quality brokers and just as importantly - great quality staff started coming to us.

The most important of those was Mike Crane, who now runs this area for us.

AN: So you proved you were able to deliver?

PB: We wrote over £270m of commercial business last year, so I guess that must have been the right strategy.

AN: What have been the important landmarks on your journey?

PB: For me, there are two. First, when we bought Highway in 2008.

That was a similar company to NIG in terms of its broker relationships on the personal lines side.

AN: How did the integration with Highway go?

PB: That’s one of the things I’m most proud of. No one really talks about that acquisition any more, but the fact that people don’t talk about it, shows how successful it was!

It was a true integration, and what was created was something that wasn’t there before. We put together what LV and Highway had, and rebranded it LV=Broker. Admittedly some of the Highway senior management team left quite quickly after acquisition, but on a completely amicable basis. Pretty much most of the former Highway people are still here. Michael

“

LV=Broker created something that wasn’t there before

Lawrence, Anna Peak, and Michael White were at Highway when we bought it, and are now important members of my executive team.

AN: You mentioned two landmarks.

What was the other one?

PB: That happened when we first went to the BIBA Conference as LV=Broker. That re-branded presence, and the enthusiasm and energy of our combined teams, told people, “Watch these guys. They really mean business.”

AN: There’s another feature about the LV=Broker set-up right from the beginning… what’s it like working within a mutual structure? Does being part of a mutual help or hinder?

PB: Being a mutual helps a great deal, partly with the value set. LV is owned by its customers, so it’s a very customer focussed and customer-first organisation.

One of the other benefits we got from LV was a really long planning horizon. We came to them with a five-year plan, which involved making some big investments in the first couple of years, some of which were not at all easy. But now we can look back and see that we have exceeded all of our expectations.

Part of this success has been due to continuity of strategy and people, which is obviously important for brokers, who are very much relationship orientated. So when you get to your second or third year, and you still have more or less the same team and strategy that you started out with – and you’ve proved you can provide the level of service that you promised - then brokers start to take notice. And that’s certainly what’s happened for us.

”

AN: This question of long-term strategy is very topical, isn’t it?

Some companies out there appear to be looking forward merely to the next 12 months. Some chief execs even have short-term contracts.

PB: That’s exactly right, and a lot of management teams don’t even last through an insurance cycle nowadays. They don’t have the experience of weathering more than one cycle. Here we are in 2014, at the bottom of one cycle in car insurance – and this is the fourth cycle plummet that I have witnessed from the sharp end. So although you wish it wouldn’t happen, when it does, you know exactly what you have to do.

“

Some of today’s

management teams don’t even last through an insurance cycle!

”

AN: So has LV been happy with their investment in the broker channel?

PB: In 2006 the original ABC business plan had a projected income from the broker business of circa £300m, which the City people thought was way too ambitious from a “has-been” channel like broker.

Five years later, in 2011, at the top of the motor rating cycle, we were writing £720m. In the last two and a half years we have made profits of circa £100m for LV. We were also recently voted by brokers as their insurer of the year. So, the answer to your question is yes, I’d say that we have delivered, and justified LV’s investment in the broker channel.

NOVEMBER 2014 insurancepeople 11

interview

Tony Weller GROUP CEO CITADEL RISK

Take Five Citadel Risk operates in the international non-life insurance and reinsurance market in three divisions; capital, reinsurance, and services. CEO Tony Weller chats with the Editor about his target audience in the SME sector AN: AM Best recently renewed Bermuda-based Citadel Re’s A-minus rating, but you nevertheless choose to operate the overall group in the small to medium business sector. Why is that?

TW: Partly because we like it, but also out of necessity. Although we are a A-minus rated company, our capital is just over £25m so that’s one of the factors that steers us towards the small to medium market.

AN: So is the capitalisation a handicap?

TW: Yes and no. Our £25m surplus dictates the market we have to aim at, but we’ve specialised in this arena for some years and we are comfortable there. At least if one programme becomes problematic it doesn’t place too much strain on our financial position. We’re in control of that specialisation, and we know what’s going on.

We’ve been around for many years, during which time some reinsurers 12 insurancepeople NOVEMBER 2014

have come in, and then gone out again. We’re still here. It’s not spectacular, but it is consistent and I’ll take that any day.

AN: What do you particularly like about the SME market?

TW: For one thing, it suits our skill sets. Our specialisation means we have time to understand each business risk. We listen. As CEO I have intimate knowledge of all the deals on the go at any one time. I also know about the claims as they arrive - how many CEOs in the business today can say they know about every major claim coming in? I like that kind of control. I like to know what’s happening.

Also, the SME market is a lot less competitive. In the reinsurance market there’s a lot of the big boys chasing the big clients, and those big reinsurers are less willing to pay attention to the smaller market.

So we are filling a gap and providing a service that is really needed in the SME arena, especially for start-up

“

We are in control and

know what’s going on

”

businesses and entities that won’t necessarily interest the bigger reinsurers.

AN: Who are your audience?

TW: We work with the smaller brokers and other customers who are interested in the smaller deal, particularly regional firms. That’s where we have the capacity.

Although our portfolio is mainly commercial, there is some travel business. A travel insurance company often needs to take reinsurance for the regulator’s sake rather than solely as a risk prevention thing. Some of these risks are extremely benign, but it’s the regulator who is driving the need for clients to seek the cover.

And there are similar compliance issues in various other industries where a regulator insists on coverage, but where there is in fact a very low level of expectation of risk.

These cases are too small for the big reinsurers to bother with, and that’s the gap that we seek to fill.

AN: What are the main stumbling blocks when approaching the SME market?

TW: Basically, people are “scared” of reinsurance. They know they have to have it, and have to buy it, but they still begrudge the need to do so. And there’s too much jargon, but that’s another area where we can assist.

I said earlier that we listen to clients to really understand their needs.

Unlike the big reinsurers, our specialisation allows us to spend that time and turn the transaction into a people-related connection. That becomes extremely vital in the case of start-ups where no traditional data is available, or in a sector where no actuarial back-up reports exist.

AN: This ‘people’ factor is important to you, isn’t it?

“

Citadel provides the whole

spectrum of services in this market

TW: Yes, it is. It helps in so many areas, not least in renewal retention.

Given our longevity, we have clients of longstanding who we helped as selective new start-ups. Their business often grows over the years to the point where it sometimes becomes prudent for them to weigh their needs against the wider reinsurance market. But this is when the strength of the relationship built up over the years can be a strong influence to stay with the people you know, and trust.

Managing the claim is another very important element. This is where we score. Because our team is very close-knit, our people involved in the claim settlement are the same people that underwrote the risk in the first place. There’s no demarcation as there is elsewhere. There is a distinct balance between the claim and the point at which the business is placed. It’s very consistent simply because it’s the same people looking at it. I like this kind of discipline, and so do our clients.

the whole spectrum of services for anyone who is involved in this market.

AN: Looking specifically at the UK, can you cite some examples where an intermediary reading these words (perhaps a regional broker) might suddenly recognise a solution to a problem waiting to be solved?

TW: The broker may be unaware that there is a market there for the smaller (yet profitable) programme. A lot of reinsurers are (initially at least) focussed on “top line” premium, and won’t want to pursue a programme worth £20,000.

Small premium with a lot of profit is something that we are interested in. I guess we are (in many ways) quite different to the supermodel who is reputed to say that she won’t get out of bed for under £10,000. We have a few programmes that have continued to renew for over 25 years, and if you multiply a small premium by 25, it starts to become large, although we have to be patient of course.

”

another across the whole spectrum of insurance provision, I would fasten it to the business confidence that permits the ‘fun factor’.

Economic times and other adverse pressures have whittled down the number of insurance providers capable of using this element to enhance their culture and bottom line, but Citadel Risk seems to be one, among a few others, that doesn’t baulk at the idea of being seen to enjoy life, and its people are not afraid to lampoon themselves for fun.

TW: We enjoy having fun. We enjoy each other’s company, and in a compliant regime we’re not afraid to be a bit un-PC. (Take our ‘fat ballerina’ ad!)*. But the whole ethos can only be built on strong foundations – longevity; stability; consistency; professionalism; and business confidence. * That’s exactly what we’ve done! – see page 3 - Ed

AN: What else do you do?

TW: Besides reinsurance, we do fronting and provide a back office service. We can pretty well provide

AN: And finally, I can’t close without asking you about the ‘fun factor’. If there’s one non-tangible point of distinction between one player and

Tony Weller Tony Weller qualified as a Chartered Accountant in 1991, and worked for Coopers & Lybrand (now PWCs) in both Sydney and Perth. Later he became a partner in Fogarty Weller Chartered Accountants in Perth, West Australia.

He joined the Citadel Reinsurance Group, first with the Citadel Risk Group in 2001 in the USA, and then in Europe in 2004. He now heads the entire Citadel Risk Group, and has been responsible for its transition into a company writing prospective and run-off programmes, as well as a company with full service capabilities.

He is also Chairman of GAGA, Goodwill and Growth in Africa, a charity registered in the United Kingdom.

NOVEMBER 2014 insurancepeople 13

subrogated customer claims service

Eddie Longworth

The shoot-yourself-in-the-

EXECUTIVE CHAIRMAN HALO ACCIDENT REPAIR CENTRES

model’ are striking home

CMA report puts insurers on the spot

he CMA’s decision to walk away from the difficult issues arising from subrogated claims in its report looking into the future of motor insurance presents insurers with both moral and financial dilemmas.

The irony is, of course, that these problems are self-inflicted. The ‘non fault income model’ has been the mainstay of many a claims department in recent years, and it’s primarily the insurers themselves who feed the credit hire mouth that bites them.

“

Insurers feed the

credit hire mouth that bites them!

”

The decision by the CMA not to ban those fees, nor to even attempt regulation of the excessive hire rates being charged by credit hire operators means that we now have an open - and at least semi-legitimate - market.

Motor accident repair suppliers could well be caught in the cross fire between those insurers seeking to profit from non-fault arrangements and those seeking to minimise costs.

It looks to be a pretty impossible task to keep everyone happy and insurers need to be clear on what they expect 14 insurancepeople NOVEMBER 2014

of their partners, and ensure that there is joint planning of any future arrangements.

So insurers may react to this legitimised opportunity, but will ultimately still end up paying higher costs. But then that has never been a barrier to short-term tactical decisions by insurers anxious to maintain income streams.

It’s a fact that profiting from subrogated claims has long been a source of additional income for some insurers, and the ‘RSA model’ is merely the latest iteration of a dark art that insurers have previously used to their advantage.

Arguably the legal victories secured

by RSA and the decision by the CMA to make almost no comment on this, again brings a previously frownedupon practice into the open, and maybe allows for proper scrutiny of costs and operations. challenge the accepted industry practice of 16+ days for credit hire periods, as highlighted in the CMA report. Efficient ‘key to key’ repair cycle times across all types of repairs average just 1.5 days. And I should know!

I

insurers’ ‘non-fault income

A repai rer’s vie w

The CMA report looking into the future of motor insurance saddled insurers with a problem by steering away from the difficult issues of credit hire, credit repair, and potential profits from subrogated claims. Eddie Longworth calls on motor insurers to think hard about their long-term strategies before embarking on any new moves

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foot legacies of motor

The CMA, FCA, and the principles of Treating Customers Fairly all rightly focus on meeting the genuine underlying needs of customers, and the clear danger arising from the bungled CMA effort is that short-term financial interests will - once again be allowed to override customer desires.

It surely cannot be acceptable to tolerate - or even encourage - longer repair and hire periods when the technology and best practices already exist that dramatically reduce waiting and repair times for claimants.

But… it will take a brave insurer to forsake the income to be earned from credit hire referral fees (estimated by the CMA at up to £328 per claim) and we can expect differential pricing for subrogated claims to become the norm.

This latter practice will, in turn, place greater pressure on repairer suppliers and others to be innovative and flexible in their pricing models for their corporate insurer clients.

Intermediary accident managers who already indulge in massive differentials between fault and nonfault pricing to earn their commissions may well find their market position being squeezed by insurers simply adopting the same practices themselves.

The period of stagnation during the CMA investigation is now over, leaving the vital need for insurers and their suppliers to ‘innovate or die’.

This article is based on ‘CMA report puts insurers on the spot’ to be found on the Halo website www.haloarc.co.uk See http://haloarc.co.uk/cma-report-puts-insurer-spot/

Who says insurance is boring?

Part Four

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

In this fourth instalment he adds another string to his bow – in the space race – and is asked to insure Howard Hughes’ Spruce Goose! t was in 1982 that Crawley Warren persuaded a team of aviation brokers from JH Minet to join the company, and enabled me to place a share of the insurance covering for the first commercial space satellites with non-marine markets.

Geo-synchronous orbits, apogees, and the gift of the gab soon gave me some limited credibility in that area, and another string was added to my bow.

I

Although I was a non-marine insurance broker, I did stray from that area and soon found myself being asked to insure Howard Hughes’ giant flying boat Spruce Goose while it was on display in a geodesic dome in Long Beach, California, next to the Queen Mary.

Apart from the sweet smell of success, on my next trip to California I was offered the opportunity to enter the cockpit of that amazing plane

The Spruce Goose

Malcolm Forbes-Wilson and be photographed sitting next to an effigy of the great man himself, Howard Hughes.

That was a memorable trip! Just how I managed to persuade Sammy Davis Jnr to sign the box from two packs of Playboy Club playing cards on that occasion will need to remain with me!

Next month: Malcolm enjoys another never-to-be-forgotten trip, this time aboard the aircraft carrier USS Intrepid in New York harbour and finds himself riding in a limo convoy complete with police outriders to meet a secretive aviation club called the QBs

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NOVEMBER 2014 insurancepeople 15

outsourcing customer service

Peter Thorpe NATIONAL SALES MANAGER FARG ASSIST

Insurance People asked Peter Thorpe to comment on internet chatter as to why outsourcing sometimes fails

“

Joint long-term goals

and vision mean success for outsourcing projects

”

Successful outsourcing - pitfalls to avoid

1) “The objectives of outsourcing are not clear” This is a surprise to me because most companies who choose to utilise outsourcing set out their requirements through a tender process. Smaller companies usually buy into a tried and tested service provision with a company who are experienced in the insurance business.

There are the issues of cost savings and income streams being derived from outsourcing to consider too. Are they contradictory? I don’t think so. Outsourcing creates a cost saving by definition, and the income stream (e.g. profit share) is a result of utilising the expertise and experience of the service provider.

company’s own technology is invariably better than the company wishing to outsource. This is another reason why outsourcing remains a good idea.

6) “Inadequate risk analysis” As a company involved purely in the outsourcing of motor claims handling and deployment of repairs, it’s quite difficult to get this one wrong! However, I can appreciate the difficulties in business which is far more technical in its requirements. Then I would question - why outsource?

7) “Unforeseen costs or rising costs”

Is this still an issue? Most companies now outsource part of their business functions purely to buy-in the service and experience. The workplace culture was changed many years ago. Jobs were probably affected in the past, however jobs are still being created by the outsource company. Isn’t this how business evolves?

This is an interesting one. Everyone knows that claims costs increase, the type and age of the vehicle portfolio could change, and the length of the contract could also have a bearing on this. The longer the contract, the more inflationary costs will impact on the provider. In addition, more business secured will require more staff, and this can be dependent upon the quality and availability of new staff in the provider’s location.

3) “Expectations are not set correctly”

8) “Over management and micro-management”

I would expect both parties to have a clear and defined understanding during, and following the discussion process, which should form the contract for the business provision.

Once they are agreed and the proper measures are in place, then a successful partnership should be formed.

Management is at the core of any outsourcing arrangement.

The two things mentioned in this section are a recipe for disaster. Trust is as crucial in business as in any other relationship. It’s a partnership, so let it develop.

4) “There is a lack of communication”

9) “Changing buyer needs”

Well, I can only think this is a direct result of not communicating properly. Reports and other data will confirm the activity each month, and if service level agreements (SLA) are being met. However regular discussions and meetings will assist in ensuring a continued business partnership, just as if it was a department of the company outsourcing.

Yes, this does happen. But flexibility and an aptitude to reflect change should prevent this ever becoming an issue. There may be additional cost on occasions, but a good contract should reflect this possibility. You get nothing for nothing!

5) “Transition processes need improvement”

I think it’s crucial that the buyer sees the provider as an extension of their own company. This can sometimes be reflected within the buyer’s requirements on a tender document. Hopefully the company outsourcing is in a development and growth position, and this can also drive the income forward of the outsource company. Joint long-term goals, strategy, and vision are all integral to the wellbeing of an outsourcing project.

2) “There is no concurrent change in the workplace”

Technology, infrastructure and managerial skills are all two-way requirements in overcoming initial transition and future development to ensure that the agreed SLA’s and cost indicators are being met and continually managed.

Most companies can facilitate another customer’s own technology nowadays. Strangely enough, the outsourcing 16 insurancepeople NOVEMBER 2014

10) “Buyer behaviour towards the provider”

risk management

Andy Hawkes

The Control of Noise

CEO CARDINUS RISK MANAGEMENT

at Work Regulations 2005

Industrial Deafness The din and danger within the satanic black, smoky Hades of the Victorian iron foundry may well be consigned to history, but over one million workers still currently face the risk of developing industrial deafness according to statistics compiled by the HSE part from the traditionally noisy industries, some of today’s newer sectors are equally exposed to high levels of workplace noise. Call centres and the music business spring to mind.

A

Although workplace din is not as fierce as it may have been in the past, around one million employees in the UK are currently at risk of developing industrial deafness, according to statistics compiled by the Health and Safety Executive.

Of these people, most will work in a particular profession that will be classed as a high risk for employees developing hearing problems as a consequence of their work environment. he Control of Noise at Work Regulations 2005 is a set of guidelines put in place to ensure that workers’ health (specifically hearing) is not at risk when carrying out their daily duties. These regulations impose a duty on employers to concentrate their efforts on controlling noise risks and noise exposure.

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Wherever there is noise at work, employers should be looking for alternative processes, equipment, and/or working methods which would make the work quieter, or mean people are exposed for shorter times. Employers should also be keeping up with recognised good practice consistent with the standard for noise control within their respective industry.

The regulations require the completion of remedies for higher risk sound levels that are reasonably practicable, but where exposures are lower, employers are only expected to take actions that are relatively inexpensive and simple to carry out.

Risk assessments using competent experts, will show where employees are likely to be exposed at, or above the upper exposure action values. The noise risk assessment should:l identify where there may be a risk from noise and who is likely to be affected l contain a reliable estimate of employees' exposures, and compare the exposure with the exposure action values and limit values

l

l

identify what needs to be done to comply with the law – for example whether noise-control measures, or hearing protection are needed, and if so, where and what type identify any employees who need to be provided with health surveillance and whether any are at particular risk

Estimating employees' exposure It’s essential that the employer can show that their estimate of employees' exposure is representative of the work that they do. It needs to take account of:l the work they do, or are likely to do l the ways in which they do the work l how it might vary from one day to the next The estimate must be based on reliable information based on measurements in the workplace, information from other similar workplaces, or data from suppliers of machinery.

Employers must record the findings of the risk assessment in an action plan. This must include anything they identify as being necessary to comply with the law, setting out what they have done, and what they are going to do, with a timetable saying who will be responsible for the work.

There should be a regular review to make sure that employers continue to do all that is reasonably practicable to control the noise risks, and naturally if circumstances in the workplace change and affect noise exposures, then the risk assessment should also be reviewed. Even if it appears that nothing has changed, employers are recommended not to leave it for more than about two years without checking whether a review is needed.

Competence Competence is an extremely important factor for the risk assessment. It has to be drawn up by someone competent to carry out the task, and be based on advice and information from people who are competent to provide it.

NOVEMBER 2014 insurancepeople 17

personal accountability

David Heffron

“

Attestations have

developed away from

PARTNER AND HEAD OF FINANCIAL REGULATORY GROUP ADDLESHAW GODDARD LLP

the public eye

”

Taking it on the chin!

The requirement for senior management to stand up and be counted when asked to attest to their firm's compliance is becoming increasingly common and causing significant concern.

David Heffron looks at the issues for consideration he FCA now exercises its power to demand attestations from the senior management of firms under its jurisdiction.

Needless to say, such attestment should not be given without careful consideration and necessary due diligence, given the potentially serious personal and professional consequences where the regulator subsequently questions an attestation.

T

How has it come to this? One of the frequent complaints by the public of the FCA’s predecessor was that while authorised firms might be fined for misconduct, their senior managers were rarely held accountable.

l

What exactly am I being asked to attest? Generally speaking this relates to taking reasonable care or reasonable steps such as the establishment of effective systems and controls for compliance under the regulatory system. So unqualified assertions (for instance, that there have been no breaches of the client money rules) should be resisted in favour of a statement that reasonable steps have been taken to conform with the CASS rules.

l

Can I refuse or negotiate the wording? An attestation should never be signed without confidence about providing the requested assurance. The consequences of doing so are far worse. The FCA accept attestations need to be specific and achievable, with demanding but realistic time lines.

In the aftermath of the financial crisis and in the absence of any significant disciplinary action against the senior executives of failed banks, the regulatory climate has changed and the use of attestations as a supervisory tool has manifested itself.

The FCA has published principles of this supervision which specifically relate to individual accountability:-

Open dialogue between firm and regulator is possible, and it may be possible to agree alternative wordings, or to qualify the statements, or seek further time to carry out the work necessary to have sufficient comfort to sign. Remember, if the FCA were to query the accuracy of the statement at a future date, providing there was a reasonable basis for making it with appropriate due diligence, there would be a defence to disciplinary action.

untability, ensuring “An emphasis on individual acco that they are and erst und ent agem man senior ns – and that we actio r thei personally responsible for gs go wrong.” thin n whe unt acco to them will hold “The accountability of ind ividuals in positions of responsibility needs to be improved and overall standards of governance raised.”

Unlike other parts of the FCA tool kit, the use of attestations has developed away from the public eye and scrutiny. Partly for these reasons there exists considerable disquiet by firms and managers over their use and uncertainty about their effect. here are a number of considerations when presented with a request for an attestation

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Am I the right person? Am I the most appropriate person within the firm? Approved persons should ask whether the attestation relates to matters within their control function and/or within their responsibilities. Is someone else better placed?

18 insurancepeople NOVEMBER 2014

o how much due diligence is necessary when the attestation request arrives? Much depends on the nature of the request and its circumstances. In certain cases the amount of any initial assessment carried out when the individual took up the role may help.

S

The FCA, in its arguments to the Information Commissioner in the context of a Freedom of Information Act request, indicated that a degree of uncertainty by firms over what they needed to do was helpful to its supervision.

Nonetheless, it does not expect firms to create onerous assurance processes that could skew prioritisation of management focus. Clearly, there will exist a tension in deciding how much to do, but ultimately the obligation is to take reasonable steps.

insurancepeople

News

Expansion plans at Brokerslink ndependent international broker network Brokerslink, currently managing in excess of US$15 billion, has announced the incorporation of its new holding company and expansion into Slovenia, Serbia, Nigeria and the wider African continent.

Opening its conference in Venice, José Fonseca, chairman of Brokerslink, told over 200 delegates from 70 countries that the network's rapid expansion would now be accelerated.

He said: “Brokerslink is now a truly diversified global broker with a solid platform for revenue generation and growth. At last year’s conference we agreed to change our constitution from a not-for-profit association to a for-profit global broking company. I can now report that our new holding company has been incorporated and capital has been invested by MDS, Crystal & Company, Filhet-Allard, Nova and Cooper Gay Swett & Crawford.

“This is a major strategic milestone for Brokerslink and we are now focused on utilising this new corporate strength

I

QUOTE, COMPARE AND SELL L ALL FROM O ON ONE QUESTION SE ET

to drive our expansion and build enhanced multi-national client support capabilities through personnel and software tools.” * * * * The Brokerslink Women Leadership Team, a networking group that aims to inspire and support women in leadership roles within the insurance industry and related service sectors, was launched at the Brokerslink conference..

Jacqueline Legrand, European regional director of Brokerslink, told 30 female senior level executives it was vital that experienced professionals helped each other while encouraging young female talent.

She said:” The insurance industry is increasingly embracing diversity and our new Brokerslink Women Leadership Team will support its endeavours. However, while this movement fosters creativity and inspiration, it requires constant effort to deliver effective and streamlined communication. It is why we have come together today and why we will continue to work together in the future.”

PowerPlace is the online marketplace that sttreamlines commercial broking by allowing you to quote, compare and sell a range of leading in nsurance products in minutes. PowerrPlace prrovides your business with the digital standard to offfer e choice, e competitive quotes an nd real eal-time time effficiencies to your SME base.

Taal a k to us now about our quote-and-b buy facility a fo or SME consumers, eBroker fo or or Pow werPlace, an nd d see for o yourself the benefits our e-tr e ading pllaatfform o can bring to your business.

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NOVEMBER 2014 insurancepeople 19

News

insurancepeople

Motor rates creep up he latest AA British Insurance Premium Index shows that in the most recent quarter analysed (third quarter of 2014) the annual cost of comprehensive motor insurance has increased by 1.2%; it follows several consecutive quarters of reducing premiums. Home insurance premiums continued to fall.

The AA's Shoparound quote for car cover showed the first increase since early 2012 but was still 14.4%

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lower than in the same quarter of 2013.

Janet Connor, managing director of AA Insurance, says that the results bring to an end the downward trend in premiums that began at the end of 2011.

“Insurers reduced prices in anticipation that the reforms then promised by the Ministry of Justice in its Laspo (Legal Aid, Sentencing and Punishment of Offenders) measures would cut the number of

LV= launches on Blippar V= claims to be the first UK-based financial services organisation to launch on Blippar, the visual browser, as part of its ongoing strategy to increase its social media marketing.

Using the free Blippar mobile app, users will be able to scan LV= newspaper flyers and be taken to an interactive three-dimensional house ‘Blipp’. Users can click on this to get a home insurance quote online, call LV= or click through to lv.com for more information. Around the house there are a number of moving objects relating to LV=’s other core insurance products, including a car for motor insurance, a plane for travel insurance and a dog for pet insurance,

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20 insurancepeople NOVEMBER 2014

where users can also get quotes.

The Blipp also includes a number of other interactive features, including links to LV=’s interactive content hub, lvthat.com, where visitors can enter competitions, get top tips or try LV=’s remote control car game, ‘Drift’. The Blipp will be supported by LV=’s existing marketing through its media inserts, as well as being promoted to Blippar users via the app.

Paul Wishman, ecommerce director at LV=, says, “Social media is the fastest growing marketing channel and Blippar is a fun and interactive way to engage with consumers. This is an important step in our strategy to expand our social media presence.”

fraudulent and exaggerated personal injury claims – particularly whiplash injury. But the truth is, falling premiums had more to do with competitive tension than any benefit afforded by reforms. Premiums are, on average, now similar to their 2010 level and are no longer economically sustainable.”

For home insurance, over the same three months, the average quote for buildings insurance fell by 3.1%, with contents down

3.4% and combined down 2.4% (11% over 12 months).

Pointing out that all three main parties have confirmed their commitment to increased flood defence spending and to implementing Flood Re, Janet Connor says that negotiation between the government and the insurance industry has been ‘tortuous’ and says she is disappointed that implementation appears to have been pushed back to at least November 2015.

New commercial products from LV= s part of its strategy to diversify its commercial lines offering, LV= Broker is launching three new commercial products, for manufacturers, wholesalers and leisure ibusinesses.

The Manufacturers product is targeted at smaller businesses through to risks of up to £50 million. It offers cover for equipment breakdown, loss of goods in transfer and third party storage location cover as standard, as well as cover for manufacturers’ samples up to £5,000.

The Wholesalers product is designed to cover the specific needs of small, medium or large wholesalers.

It covers equipment breakdown and goods in transit, but also allows for seasonal increases during holidays such as Christmas.

The Leisure product is

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designed to cover businesses such as bowling alleys, gyms and leisure centres, for playing surfaces, car parks and guests' property, as well as cups and trophies that may be stored at the premises. It also offers cover for spa and beauty treatments, in case customers are injured while undergoing a treatment.

Kevan Aubrey, head of commercial distribution at LV= Broker, comments. “As we have grown in the commercial lines market, we now need products that are more tailored to each sector.

These new products should make it easier for brokers to sell cover to clients and will make us more competitive in the overall commercial lines market. The launch of these products marks an important milestone in our plans to grow our commercial book.”

Stockport honours Tom Hogg om Hogg, group chairman and founder of CDL, has been presented with a Special Recognition Award at the Stockport Business Awards 2014, for his outstanding contribution to the Stockport business community.

The judging panel were impressed by his long-term commitment to employment and training of people in the borough and commended him for his recent investment in a construction project to expand CDL's headquarters and create a state-of-the-art business campus at Kings Reach.

Tom Hogg founded CDL in 1977 with his wife Jessica, initially running the company out of their front room. He went on to win a major corporate contract to implement an international IT system for Brother, and in the late 1970s he went on to spot an opportunity in the insurance sector. CDL

T New wave of consolidation? ore insurance companies across the EMEA (Europe, Middle East and Africa) region see themselves as sellers of business units rather than buyers over the next three years, according to a survey of senior insurance executives conducted by Towers Watson, in conjunction with Mergermarket.

More than 60% of respondents said they expected to divest operations before 2017, up from just 20% who said the equivalent just a year ago. Meanwhile, the percentage of organisations saying they expect to make an acquisition in the same three year timeframe has fallen from over two thirds (69%) to well under half (42%).

Fergal O’Shea, EMEA life insurance M&A leader for Towers Watson, comments, “The growing focus on disposals fits with a general strategy amongst major insurers in Europe in recent years of selling non-core units and of consolidating where they have a marketleading position. In addition, we expect more acquisitions of smaller insurers to result from the increased regulatory burden, mainly from Solvency II.” Though the number of transactions completed in the EMEA insurance sector in the first half of 2014 was broadly in line with the same period in 2013, deal value more than halved from €8.1 billion to €3.9 billion. Most respondents put the absence of ‘big ticket’ transactions down to continuing economic volatility and regulatory uncertainty.

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has now grown to employ a workforce of over 470.

Tom Hogg comments, "It is an honour to be recognised in this way by my peers in Stockport. I believe strongly that the borough offers everything that a business needs to succeed. CDL has strong ties to the local area. Our expansion into a new campus means that we can continue to meet the needs of customers and invest in the town that has been our home since 1977."

The award was presented in a ceremony at the Hallmark Hotel on 2 October.

Tom Hogg

Argo launches complimentary legal advice rgo International has launched a new initiative, in partnership with leading law firms, to provide complimentary legal advice to its D&O policyholders. The new service offers D&O policyholders a free

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consultation with specified lawyers at any of the following specialist firms: CMS Cameron McKenna LLP; Kennedys Law LLP; Pinsent Masons LLP; Sedgwick, Detert, Moran & Arnold LLP Andrew Robertson,

D&O class underwriter, says, “With the assistance of our experienced D&O lawyers, our clients can receive at an early stage the advice and assistance that they require to prevent a matter from escalating.

We have worked extensively

with the law firms on our legal panel and this initiative will ensure that in the event of a potential claim our policyholders benefit from a consultation with one of the leading firms in the D&O and EPL sector.”

NOVEMBER 2014 insurancepeople 21

News

insurancepeople

Paymentshield adds Zurich to home panel

Aon tops world commercial brokers

aymentshield has added Zurich to its home insurance panel, joining Ageas, Aviva, RSA and Legal & General.

Amanda Fox, Paymentshield’s insurer relations director, comments: “Having such a strong household brand on board as Zurich is a great result for Paymentshield. A lot of work goes on behind the scenes to ensure our proposal is just right before we approach new insurers and I’m confident that our strong panel will also start attracting new insurers soon.

“Adding Zurich onto our panel supports our activity of tailoring our product offering to meet the needs of our customers, whilst providing exceptional levels of service and support.”

Ian McManus, head of personal lines at Zurich adds, “We are delighted to have joined the Paymentshield insurance panel, enabling us to reach many more customers. We hope this will be the start of a long and successful relationship between our two organisations.”

ew research from Finaccord has calculated a ranking of the world's top 150 broking groups by revenues earned from commercial non-life (P&C) insurance, excluding revenues from personal lines, employee benefits, wholesale insurance and reinsurance. In total, the top 150 brokers earned revenues of USD 28.5 billion from this activity in a global market estimated to have been worth USD 48.5 billion in total in 2013, thereby meaning that they accounted collectively for 58.8% of this total.

Aon was the largest competitor with commercial lines revenues of USD 6.1 billion worldwide in 2013 and it was followed by Marsh at USD 5.1 billion.

Overall, the top 15 broking groups by this measure together earned revenues of USD 20.9

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billion (or 43.1%) of the worldwide total.

Finaccord’s research also shows that across the world’s top 150 commercial non-life insurance broking groups, 67 (44.7%) were headquartered in the US with a further 24 based in the UK, 14 in France, 12 in Germany and eight in Canada.

Also examined were the number of acquisitions made by the 150 groups between January 2012 and June 2014. 61 of the 150 groups had made at least one acquisition relevant to commercial lines broking and ten had made at least ten such acquisitions. On this measure, Towergate was ranked first with 48 acquisitions, ahead of Arthur J. Gallagher & Co. and HUB International with 43 each, USI Insurance Services with 27 and AssuredPartners with 26.

Flexible commissions for AXA Simple range XA Commercial Lines and Personal Intermediary has introduced commission flexibility to its e-traded Simple product range.

Following a successful pilot of the commission flex feature on the Landlord product, brokers will now have the option available on Tradesmen and

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Professionals, Retailers and Offices and the Surgeries products.The standard default commission rates will continue to apply for all products but brokers now have the option to flex this up to a maximum of 35 per cent or down to zero per cent at new business and renewal.

The rate remains unchanged for mid-term adjustments.

22 insurancepeople NOVEMBER 2014

Jon Walker, MD of commercial intermediary, says, “At the heart of the Simple proposition is a commitment on AXA’s part to make it easy for brokers to do business with us and the application of commission flexibility to a broader range of products is another articulation of that commitment.

“But this is just one of many exciting enhancements we have planned for the next six months including new products, features and capabilities being added to our e-trade proposition. This is an absolutely crucial and growing channel for us and we must continue to develop our offering in this space if we are to maintain our lead.”

SSP single interface for insurers S

SP is to package its insurer offering with a new single user experience platform (UXP), following a deal with financial services software provider Temenos.

Using the Temenos UXP, edgeConnect, insurers will be able to rebrand SSP’s Select and Pure Insurance products to each of their distribution channels.

The edgeConnect platform will allow insurers to present a consistent

brand and interface across mobile, tablet, desktop and even telesales contexts, says SSP, without forcing insurers to invest in a custom solution for each device.

The news follows successful trials and the product is expected to form a central part of SSP’s insurance offering for the next five years.

Kevin Gaut, chief technology officer at SSP

comments, “Consumers increasingly expect their insurers to maintain a presence across multiple devices as standard. Going forward, insurers need their products to work across all their channels straight out of the box and today we are making that even easier.

“Whether it’s providing consistency between what salespeople and consumers see or tackling completely new channels, we’re

Kevin Gaut

empowering our customers to apply our products to new contexts.”

RSA sells business in Italy

CRIF launches Decision Hub

SA has reached agreement to sell the entire business of the Italian branches of Royal & Sun Alliance Insurance plc and the Sun Insurance Office Limited (together ‘RSA Italy’) to ITAS Mutua.

RSA will pass on insurance liabilities of £434m with their associated assets and receive a further goodwill payment of £19m. The transaction is structured as the transfer of the entire business of each branch. RSA expects to recognise a gain on sale of £28m and an addition to the group’s tangible net assets of approximately £8m. The positive impact of the transaction on RSA’s group IGD surplus is approximately £50m.

Completion is anticipated during the second half of 2015, subject to obtaining regulatory approval.

Stephen Hester, RSA group chief executive comments, “This transaction continues the excellent momentum of our announced disposals in 2014 and represents further progress in tightening the strategic focus of the Group.”

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RIF Decision Solutions has launched its Decision Hub, developed to provide the insurance industry with access to a full suite of data enriched solutions supporting underwriting, claims and fraud management strategies.

The Decision Hub integrates real time data, software and analytics with the aim of optimising risk management and providing insurers with a comprehensive view of their customers. Insurers can access all of CRIF’s existing Insurance Bureau services, including CUE PI, Home and Motor; and fraud investigation services on one platform.

This platform will also be the gateway to new CRIF services currently under development.

To use the CRIF Decision Hub, insurers merely need access to the

internet; no investment in a technology interface is required.

Sara Costantini, director at CRIF Decision Solutions, says, “Insurers are challenged to differentiate their services by delivering exceptional customer service with increasing speed. Access to information drives the ability to accurately price risks, appropriately resolve claims and dynamically prevent fraud.

We wanted to innovate and give our customers the ability to arm themselves with the right information and rapidly, to support profitable business retention and growth. We are excited by the opportunities the Decision Hub represents for our clients and by our plans to expand the suite of services available via this one stop shop concept.”

NOVEMBER 2014 insurancepeople 23

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ARAG updates landlords' cover RAG reports that its Landlords Legal Solutions has been re-written and now includes more free legal documents from its digital documents service as well as higher benefits and fewer restrictions or excesses.

“Our landlords' policy was already the complete package”says ARAG head of underwriting & marketing, David Haynes. “You don't spoil a winning formula but you do make important improvements around the edges. Key to this approach is the use of even clearer language, generous uplifts in benefits and the removal of excesses or other complications.

“We want policyholders to know exactly what they are getting cover for and to make use of the free added-value services such as helplines

BIBA 2015 – “Delivering our promise” heme for the 2015 BIBA conference and exhibition in Manchester will be “Delivering our promise”. The event will be at Manchester Central on May 13 and 14.

BIBA chief executive Steve White says, “BIBA 2015 will take place exactly one week after the General Election and if current polls are to be believed, we may be in for another hung parliament and in the middle of coalition discussions.

Whatever happens the political background to our conference will be dominating our thoughts in the lead up to 2015.

That’s why we decided that with so much periphery ‘noise’ distracting businesses, we will need to focus on our core beliefs.

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David Haynes

and document services.

Experience tells us that these additional services are highly valued, giving significant peace-of-mind to landlords, and helping agents retain business even when no claim has been made”.

Among increases to benefits – alternative accommodation for landlords when vacant possession is impossible now stands at up to £175 per day, maximum £5,250, with storage refunds up to a maximum of £300 also being covered.

“And for us as an Association, it is our ‘promise’ to members to represent their wishes as effectively as we possibly can. And for our members it is their ‘promise’ to their customers to act as their trusted advisor and to work in their best interests in times of difficulty and hardship.”

Once again entry to the conference and exhibition will be feee to all employees of BIBA member firms, and all brokers and intermediaries are welcome to attend the exhibition at no charge.

And for the first time all those attending will receive complimentary lunches. Exhibitors will be able to book stand space from Monday 13 October.

New mobiles at Auto Windscreens uto Windscreens has launched new-to-market Motorola TC55 smartphones across its national windscreen repair and replacement network.

The pocket-sized devices, which use Android’s Jellybean operating system and are tailored specifically for Auto Windscreens, have been rolled out to all technicians to help manage their workloads more effectively while on the move. The units are being used to make customer calls, record individual glass repair/replacement job information, access technical information and conduct customer surveys, among other actions.

Chris Thornton, Auto Windscreens’ managing director, says, “Technology has moved on dramatically since we launched our previous Motorola devices, which managed job workflows but could not be used for calls or navigation. As part of our ongoing commitment to developing our customercentric systems, we are excited about the potential of our new smartphones and believe they will add real value to our operations.”

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24 insurancepeople NOVEMBER 2014

Technical trainer Darren Boden teaching technicians to use the new devices

Zenith launches broker specific telematics policy enith has become the first insurer in the UK to launch a broker specific telematics policy, supported

by Wunelli. The mileagebased Brightbox policy is initially being piloted by Markerstudy Group’s retail brand The Insurance Factory and other brokers, before a phased full roll-out in the final quarter of 2014, with Wunelli providing the telematics support.

Brightbox policies are targeted at two customer groups; those with low annual mileage and young, inexperienced drivers with a

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low no claims discount. The policy offers motorists the ability to buy cover based on the number of miles they anticipate driving. When 500 miles remain, a notification is sent to the policyholder by their broker to purchase more miles. In addition to miles driven, the driving behaviour of the insured is monitored and the policy can be cancelled if excessive or consistent speeding is recorded.

Wunelli will manage the installation of telematics devices in policyholder’s vehicles, collect and score

driving behaviour data and mileage and provide feedback to the driver and broker via a customer dashboard and administration portal.

Wunelli has also developed and delivered a claims portal which includes a journey viewer and incident alerts to assist claims handling.

Gary Humphreys, group underwriting director for Markerstudy says, “Wunelli has made our idea to give our brokers a robust telematics private motor policy a reality. The benefits of usage-based insurance to

Gary Humphreys

policyholders in terms of choice, safety and costeffectiveness are numerous.

While telematics policies currently represent a fraction of the total private car insurance market, there’s a huge potential for growth, and we’re keen to be a part of the action.”

SSP white paper on commercial lines e-trading SP has launched its latest white paper, ‘Tackling the myths of integrated commercial lines e-trading’, which demonstrates the opportunities for both insurers and brokers who adopt integrated commercial lines e-trading.

SSP says that e-trading has not yet been widely adopted within commercial lines insurance, yet is becoming increasingly important as major insurers look to make it as easy as possible for brokers to do business with them whilst improving operational efficiency.

SSP’s white paper examines the trends driving etrading adoption, refutes misconceptions around integrated e-trading and looks at how insurers and brokers alike could benefit from the wide-spread adoption of etrading.

Adrian Coupland, head of data strategy for SSP says, “There are many myths and misconceptions about integrated commercial lines e-trading, which can deter

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insurers from adopting the integrated e-trading systems. In trying to separate the facts from the fiction, we hope to demonstrate the opportunities e-trading can bring across the commercial lines industry, enabling insurers and brokers to maintain a competitive advantage.

“It’s important that insurers don’t get left behind. 19 of the top 25 insurers in the UK provide commercial lines insurance in the micro and SME sectors of the market and 14 of these have delivered or will deliver new e-trading solutions to the market in the next 12 months. We have also seen some insurers starting to combine their personal and commercial lines businesses on e-trading platforms to maximise synergies. This means medium and smaller sized insurers and MGAs need to react quickly to keep pace with these developments.”

To download a copy of the full white paper, visit www.talented-innovators.com/commerciallines

Gallagher reinsurance broking team transfer to Capsicum einsurance broker Capsicum Re has announced that Arthur J. Gallagher’s Reinsurance broking team, led by Matt FitzGerald, has transferred to become a partnership within the Capsicum Re Group. All current and future treaty

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reinsurance business handled by Arthur J. Gallagher will now be conducted by Capsicum Re, via the new partnership between these two entities.

The entire AJG Re team, which consists of 14 people, has joined Capsicum Re and

will continue to be led by Matt FitzGerald, managing director of AJG Re, who comments, “This is an exciting development for our team and allows us to combine the influence and market presence of our US parent, Arthur J. Gallagher, with the

dynamic and entrepreneurial vision of Capsicum Re. It has been a seamless transition and we look forward to working with Chily to enhance our reinsurance capabilities and continue to provide our clients with the best possible service in the market.”

NOVEMBER 2014 insurancepeople 25

On the move Who’s going where?

HCC HCC International appoints Brian Hunt as an underwriter in its UK liability division, based in London. He joins from QBE where he was head of delegated underwriting, and has 26 years’ experience. His career began as a Lloyd’s broker, rising to divisional director at Willis. He moved to Eagle Star Re, and later became senior liability underwriter at Euclidian syndicate. He joined Syndicate 386 in 2005 and ultimately assumed responsibility across QBE EO. Elisabeth Berry also joins as an underwriter responsible for the South East. With over 10 years’ experience, she started her career at Darwin Clayton as an underwriter for schemes business. She moved to ECIC where she specialised in underwriting Liability/CAR insurance for contractors.

Columbus Columbus Insurance Services appoint Alison Wild as head of marketing, working across the UK, EMEA and APAC regions. Based in London and with 25 years’ marketing experience, she joins from Legal and General where she was head of marketing for the group protection division.

Previously, she was at AXA PPP as head of retention marketing and customer communications, and the Pensions Regulator, and as client services director at DeNovo Consultancy.

AXA AXA Commercial Lines and Personal Intermediary appoint Alex Turner as sales manager in Ipswich. He was formerly an account manager in the branch.

This follows the move of Iain Hill, who joined the Glasgow branch as sales manager earlier this year.

Capita Capita Insurance Services appoint James Witchell-Jones as a claims solutions consultant. His ten years’ experience as a claims specialist includes time at Liberty Specialist Markets and Gallagher Heath.

ERS

Alison Wild 26 insurancepeople NOVEMBER 2014

ERS appoint Donna Willis as head of personal injury claims. She joins from QBE European Operations, where she was head of casualty claims. Prior to this she spent 15 years with AXA in claims roles.

Mark Matthews

Jonathan Phillips

Ecclesiastical Ecclesiastical appoint Mark Matthews as risk management director in its UK general insurance business. He joins from Zurich where he was head of risk engineering. With over 32 years’ experience he began his career at Commercial Union Assurance and spent the first seven years of his career in the commercial lines underwriting.

Jonathan Phillips takes up a newly-created role to lead the group-wide strategic change programme as group programme director. With over 25 years’ experience, he has previously worked with Aviva, Catlin, Hiscox, Norwich Union, BUPA, and Aon.

RFIB RFIB Group appoints Colin Pinder as a divisional director, to develop a mainly German marine account. With over 40 years’ experience, he joins from Willis, where he was a divisional director. Before that he was at Miller Insurance Brokers. He began his career in 1971 with Glanville Einthoven.

Gary Blakesley also joins RFIB as a divisional director from Willis where he focused on hull & machinery, increased value and war risks in the German and Northern European markets. Prior to this, he was 12 years with Ropner Insurance Services, and began his career in 1982 at Alexander Howden.

Henderson Teesside insurance broker Henderson appoint Helen Forsythe as business manager. She joins from Team Massive Results and previously worked at Ellis and Everard, Northumbrian Spring, and Tees Valley Business Services.

Helen Forsythe

In association with

VEHICLE SERVICES Collection, storage and sales

Cunningham Lindsey Cunningham Lindsey appoint Matthew Griffin as head of forensic advisory services within its major & complex loss team. He was originally on secondment to the business from Cunningham Lindsey Australia, and accepted this permanent role in the UK. He has specialised in forensic accounting for over ten years and established these services in Australia.

Matthew Griffin

QBE

LV=

QBE appoint Paul Scott as head of motor & liability claims based in Leeds. He was previously with Aviva for 30 years, specialising in motor, liability and large bodily injury claims.

LV= promotes Caroline Johnson to head of motor third party and technical services. She joined LV= in 2013 and was previously head of property and casualty claims. Prior to joining she worked at RSA. Mike Hall is appointed to head of property and liability claims, and returns to LV= from Acromas (Saga) where he was head of non motor

Ageas Ageas appoint Dan King as broker account executive. He joins from AXA where he worked for 14 years in business development and account management roles.

technical claims for two years, and previously technical property claims manager at LV= for six years.

CFC

Markerstudy

Underwriting agency CFC appoint Matthew Muggeridge as an underwriter on the intellectual property team.

He joins from Liberty Special Markets where he was underwriting assistant in the strategic assets department.

Jim Terry, former claims operations manager at Chaucer Insurance, has joined Markerstudy Group as group TP claims operations manager following 15 years service at Chaucer.

CGSC Cooper Gay Swett & Crawford appoint Martin Sullivan as a director and non-executive chairman of the group. He has been non-executive chairman of CGSC Delaware, and chairman of Antares Holding, and deputy chairman of Willis Group, president and CEO of AIG Inc. He takes over from Frank Witthun, who steps down after eight years, and who will continue to support the group on a consultancy basis.

Markel Markel International appoints Andrew Carter as senior underwriter, marine and energy liability. He joins from QBE, where he worked for 19 years, most recently as portfolio manager for marine liability.

Caroline Johnson

Andrew Carter

Matthew Muggeridge

Guernsey Finance Guernsey Finance appoints Dominic Wheatley as chief executive to replace Fiona Le Poidevin who resigned in July 2014. He has over 25 years’ experience in the international financial services market in the UK and Guernsey, most recently as managing director of Willis Management (Guernsey) Ltd and chief marketing officer of Willis' international insurance management businesses.

He also served as chairman of the Guernsey

International Business Association (GIBA) from 2011 to 2013, a position which saw him serve exofficio as a director of Guernsey Finance. Prior to becoming GIBA chairman, he was chairman of the Guernsey International Insurance Association (GIIA) from 2009 to 2011.

Dominic Wheatley NOVEMBER 2014 insurancepeople 27

OFF

THE ROAD

by Andrew Newman

in association with:

citing a report that a vehicle had been involved in an accident at my location.

Leaving the rather sinister question as to how exactly these people get hold of this kind of information in the first place? * Drive like a Girl - the good old establishment figures who stood behind steadfast names like Road Transport & General and Iron Trades etc must be turning in their graves! here is a corner of Chez Newman that is forever… well, dormant. It’s a piece of hedge and front garden that doesn’t do very much except help distance the house from the main road through the village, and allow overflow parking in time of need.

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But this patch of England now has two claims to fame in these pages since the time when a swarm of bees took up temporary residence in my company car, requiring the assistance of the local beekeeper, rather than the AA or RAC. And now this bit of hedge has another claim – an insurance one this time. The photo shows the scene on a recent quiet Sunday morning while the house was still fast asleep. We never heard a thing.

It had been raining, and having taken a few spins, the young female driver unfortunately (for me) completely missed the hole in my neighbour’s fence (already flattened by a previous errant motorist and still waiting at the time of writing for a loss adjuster to call!).

The skid took her on towards my property, and in a brilliant sideways broadside she managed to demolish a good length of my hedge without seriously hurting herself.

Apart from a bruise or two, her major conundrum was - what do I do next? Fortune shone down, because she had, after all, ended up in the front garden of the village’s only member of the insurance people fraternity – who, as stated was still fast asleep in bed at the moment of impact.

The motorist told me she was a bit worried about telling her insurer, owing to what they might do to her premium next year. But when she gave me the name, I assured her that Drive like a Girl * probably already knew, thanks to the telematics box secreted somewhere on her car. The alarm bells were already ringing among the claims farming and ambulance chasing community.

And so it proved. The police rang her that evening, and the next day I received an unsolicited call from a claims farmer 28 insurancepeople NOVEMBER 2014

Bees update The earlier link to the Newman resident bees surely permits this update? (Plus the classic journalistic opportunity to legitimately regurgitate previous material – oh, what a giveaway!)

Our friendly bees living in the chimney pot are part of the family, and have been with us right through the raising of our children. And the grandchildren are now able to marvel at the bees’ annual jamboree when the hive splits and a new lot go off to look for a home elsewhere.

In complete safety I hasten to add. It’s only when they initially swarm that you have to get under cover. The noise is tremendous, so there’s always plenty of warning. It’s the Kent version of the herds of wildebeest migrating across the grasslands of Africa. The throbbing drone is of hundreds of buzzing voices in great excitement yelling, “Have you seen the Queen?

Where’s the b****y Queen?”

The only discomfort the bees have ever caused while organising their exodus occurred one year when the local cycle club happened to be passing by. That incident didn’t lead to any serious injuries, and it certainly had its comic moments.

This first expeditionary flight of the genus Apis never goes far, usually to the hedge, or on a tree branch (or indeed, into the engine compartment of my car, as mentioned above). Once they settle down in their ‘pod’ they are very docile, and that’s when you can amuse the children with the David Attenborough impressions.

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