Insurance People November 2015 by Insurance People

insurancepeople

Cover artwork: Carol Newman

issue 58 November 2015

Ian Clark See page 10 Insurance People inside include:

Reg Brown Grant Georgiades

Alexander Burgess Nick Giddings Lisa Meigh

Dan Francis

Andy Hawkes

Mike Millard

Dean Lamble

rance â&#x20AC;&#x153;The Insu ith ew Magazin tyâ&#x20AC;? Personali

surance “The In with ne Magazi ity” Personal insurancepeople

leader

www.insurancepeople.uk.com

When insurance fouled its own doorstep Editor and Publisher

Consultant Editor

Andrew Newman

Brian Susman

November 2015

In this issue

he established insurance ‘wonder’ – a solid industry created over many years of effort, dedication, and sheer entrepreneurial skill – has proved to be a worthy legacy for future generations.

insurancepeople issue 58 November 2015

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 Cover artwork: Carol Newman

This month’s article on page 14 summarising the PPI scandal proves well timed as the FCA ponders on bringing this long running compensation saga to a close. The article suggests the whole sorry tale of corporate misselling on an industrial scale was the day when the insurance industry fouled its own doorstep, leaving behind a toxic waste ground which may never recover. The moral? Taking heed of history can prevent the same mistakes being made twice.

Ian Clark See page 10

Late news

Market talk

Uber v. TFL Grant Georgiades, Plan Insurance Brokers

Commercial Director

Jeni Hall jeni@insurancepeople.uk.com 07969 510172

www.insurancepeople.uk.com

Interview Ian Clark, Mighty Quin Consulting

A new model for GI Dean Lamble, SunLife

Printers

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

Integrated eTrading v. Extranet Nick Giddings, PowerPlace

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

Cover artwork: Carol Newman

But such noble bequests often contain the odd snag. Take the Victorian structural legacies still serving the country well today. They unfortunately contain their share of environmental toxic hotspots. Subsoil under sites where horses were once stabled over decades remain so contaminated that nothing can grow.

Dan Francis – a unique talent to be sadly missed

Lisa Meigh believes in employee engagement DNA!

PPI Scandal Alexander Burgess, British Money

Reg Brown The Postcard Emporium

Also find us on:

Cyber risk management Andy Hawkes, Cardinus

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

News

On the move Who’s going where?

Dean Lamble explains why SunLife entered GI

Alexander Burgess reckons PPI is now a bleak toxic waste ground

On the Road Mike Millard takes a sabbatical

NOVEMBER 2015 insurancepeople 1

insurancepeople

Late News

Uber app not a “meter” ollowing the High Court decision that the Uber app does not qualify as a meter, Grant Georgiades, managing director of Plan Insurance Brokers, comments for IP: “We are surprised by the ruling, but regardless of the outcome the black cab trade would still have a significant battle on its hands. We hope the co-operation seen in the protests by the whole of the cab trade will continue. It will be vital in their efforts to try and regain market share. At present 22,000 cabbies are spread over four main unions so co-ordinated trade-wide initiatives have failed to take hold. There’s also a perception amongst the general public that cabbies are scared of competition and afraid of innovation. This needs to be tackled head on. “We’ve proposed a Cab Man Charter that we hope cabbies will get behind. It includes the following measures that will empower cabbies to compete with new entrants into the market. They can modernise and galvanise their collective power by: uniting behind their own App, accepting credit cards as a must, wearing only smart casual attire, keeping clean cabs, providing assistance with luggage, avoiding all conversation regarding politics or religion, go anywhere at anytime and use clean language at all times (on and offline)”

(Grant Georgiades writes for IP this month. See page 9)

One million drivers uninsured nalysis of recent research from Churchill Car Insurance estimates there are one million uninsured drivers in the UK, a number far beyond court prosecutions, where the average court fine in 2014 was only £372. A quarter million drivers received penalty points for driving with no insurance between January 2013 and June 2015. During that period, over 11,000 were convicted twice. Additional key research findings:-

47,873 drivers convicted in the first six months of 2015

921 motorists still hold valid licence despite 12 or more penalty points

Steve Barrett, head of car insurance at Churchill says uninsured drivers are still a major issue, despite measures already in place. “There needs to be greater investment in police resources to check that the motorists behind the wheel are insured to drive the vehicle. It’s shocking that someone can have almost 30 points on their licence, but still be able to drive. We need to crack down on these irresponsible drivers and put even tougher laws in place to ensure our roads remain safe.” 2 insurancepeople NOVEMBER 2015

British Money quits PPI sector ritish Money director, Simon Burgess, is withdrawing from the PPI sector in response to what he says is the FCA’s continued determination to discriminate against the product and expose providers to further compensation claims. Simon Burgess has for years lobbied that PPI, when properly sold, provides an invaluable financial safety net. However, he says that any future come-back was thwarted when the FCA recently announced it would consult on commission bias following the Plevin v Paragon Personal Finance Supreme Court ruling earlier this year, potentially opening the floodgates for more claims. He says: “If the FCA wants to open a ‘can of worms’ about extortionate commission payouts it would be fairer to look at all policies, rather than just

Simon Burgess

one. The 51% PPI commission referred to in the Plevin case is far exceeded by other policies, such as extended warranties and I know of one ‘ethical’ mutual raking in 400% commission on its sale of over-50s life cover. The FCA is aware of these activities, yet happy to ignore them. Such discrimination is totally unacceptable.” British Money is moving into the car insurance market, specialising in telematics and cover for under-25s.

(Alexander Burgess writes about PPI on page 14)

Brightside partners SunLife home cover rightside takes up a new five-year affinity deal for home insurance for SunLife customers. CCO at Brightside Group, Des O’Connor says, “We want to partner with organisations that share our commitment to the best possible outcome for customers. With a significant customer base, and a real desire to make straightforward products, SunLife is a perfect match. Their new range focuses on being straightforward and affordable, and is a natural fit with Brightside where simplicity and choice lie at the centre of what we do.”

market talk

in association with:

Andrew Newman

MGAs on Route 166 n the interview on page 10 in this issue of IP the principal and founder of Mighty Quinn Consulting Ian Clark reveals that managing general agents (MGAs) form a healthy part of his client base. There wasn’t room within that interview to go into detail, so Market talk now attempts to fill that breach.

There used to be a lot of conflict-of-interest confusion as to who did what in the MGA fraternity before former Lloyd's man Reg Brown sparked the idea of a trade association - the MGAA. Since then, boundaries have largely now been successfully ring-fenced, with a more open categorisation. I asked Ian Clark how the various MGA categories have shaken out. He suggests there are now three distinct types of MGA. “One category is the large, multilocation MGA. International in their origin, in many ways mirroring a Lloyd's syndicate. They operate cross border and underwrite in more than one jurisdiction. Their challenges centre particularly around conduct risk where many of their cover holders are in overseas jurisdictions and the MGA doesn’t necessarily see the retail customer.” Ian is in fact a non-executive director of Pioneer Underwriters in this category. The next category he defines is the MGA owned by a broker. “These are trying to

leverage their distribution income streams and take another slice of the cake,” says Ian. “Their challenges are around trading with the related broking entity which has an agency responsibility to the client, and the MGA which has an agency responsibility to the insurer, and it’s those boundaries that need to be appropriately set within those businesses. “And then there’s the entirely UK domestic MGAs who either go down a generalist, or a specialist route. At the moment we are in a soft market so there is plenty of capacity available for all MGAs. But if the market ever does start to harden again, then the more generalist MGAs have to prove their worth to any insurer seeking to decide where to deploy its capital, and it’s here that the specialists are perhaps more protected.” Within my own personal experience as a chartered insurer, I’ve always tended to sum up the outright confidence behind the MGA offer as, “Give me your underwriting pen, because I can do it better than you!” “I agree. It’s either that, or ‘I possess the distribution capability that you don’t have,’” adds Ian. “For instance, a specialist MGA who operates in a line of business or geographical location where there are a very limited number of players for that kind of business may be the only route to that market.

“Other MGAs may have better access to distribution. They might be linked to a broking business with underlying distribution outlets, ideal for carriers without distribution capability in the UK. And there are still some significant overseas carriers that don’t have an access base in the UK, who can then work with an MGA to do so.”

“

An FCA 166 enquiry is almost a badge of honour these days!

”

I asked Ian how he thought MGAs were coping with today’s regulatory demands. “The FCA is hammering home the regulatory compliance message very hard, and is right to do so.

“As is the FCA’s way, they start with the biggest party in an area of the market, and then work their way down the list. This is almost a badge of honour these days.” Ian explains the Section 166 is the regulatory tool that the FCA uses. “Basically if it wants to get a better understanding, it gets the company concerned to commission a review. The FCA sets the terms of that review in conjunction with the company, but unfortunately the company has to pay for it. “Whereas 166’s were something that were feared in earlier times, nowadays they are just part of the normal mechanism for undertaking reviews requested by the FCA. If you are a large MGA there’s a chance that the FCA has already knocked at your door, or is very likely to do so.”

Uber v TFL eadlines and industry-related highs and lows keep the mind occupied, but create a downside to 24/7 home working with an ongoing lack of in-depth knowledge of world events on the outside.

But one issue that screams out on a personal basis is the possible disappearance of the London black cab. It seems I’m going to have to smart phone for a vehicle of undetermined make, age, and condition - and that goes for the driver too. Neither may actually be insured. I happen to love the black cab. It’s clean, consistent, and reassuring. I’ve travelled enough in other cities to be totally fed up with giant swinging dice, imitation leopardskin and otherwise doubtful seat coverings etc. But above all, I don’t welcome the prospect of being driven by uninsured drivers. What does the insurance industry think of this? Alas, a call to the ABI confirmed that no press releases or comments have so far been issued. “It’s really a matter for Transport for London,” I was told. NOVEMBER 2015 insurancepeople 3

market talk Dan Francis - “a unique talent!”

Dan Francis It was a sad day in late September when I heard that Dan Francis had lost his fight for life following the cardiac arrest he suffered while on business in Washington. He was 44. He was on life support for a few days, but sadly passed away on 29 September 2015. Those who knew Dan know what a talented and generous person he was, with his wonderful personality which always lifted the spirits of those around him. Our thoughts are with his family and close friends at this very difficult time an Francis began his insurance career in the underwriting department at Drake Insurance in Preston Park, Brighton. That’s when I knew him. Being out ‘on the road’ for much of my time, my office was adjacent to the underwriting department, so it was natural to observe the buzz of the workplace when coming or going. Dan was one of several young budding potential personalities of the future – and that prediction came true for Dan. And for several

of his colleagues who later made their mark in their respective careers. Before the demise of Drake in the late 1990s Dan had moved within the group to help develop a new IT system which subsequently became Insurecom, and he later took on the insurer relationships role. He then joined Lancaster Insurance in Cambridgeshire as new business director, and then joined the board

“

I have known Dan since we played football together in our school days, and the main things for me are Dan's personality which was always lively and fun. He lived for the moment, and to enjoy himself, and brought joy to all of those whom he Trevor Cutts met. His passing has left a significant hole in my life that cannot be replaced.

”

Trevor Cutts, Managing Director, 1 Answer Network 4 insurancepeople NOVEMBER 2015

and worked with Bill Godsell and Dave Martinski to successfully sell the business to BDML. After working for BDML for a short spell, Dan was head hunted to develop and set up the London office of Clements Worldwide, and in recent years was promoted to the board and was responsible for worldwide business development. Although our paths didn’t cross professionally in recent years, Dan and I often came together at various insurance golf days. His gregarious greetings are something I will always remember. In fact, the golf course is a singular feature of the anecdotal record. Suffice to say his relationship with motorised golf buggies… well, let’s just

say they didn’t get on together. Dan 2 Buggies nil. Like all good raconteurs he could turn on a sixpence when the need arose. Any good ‘life-and-soul-of-theparty’ entertainer can occasionally find themselves going against the grain down a conversational cul-de-sac. Dan not only had a ‘pause’ button – he had ‘rewind’ too. With a snappy reverse he could extract himself in such situations with a suitable quip, leaving everyone amused and happy. Hayley Parsons told me that she had a good cry when writing her adjacent tribute. Unfortunately, men don’t always have that ability, but Hayley’s homage admirably expresses what we are all feeling.

in association with:

“

Dan Francis was more a friend than a colleague. I knew him when he worked at Drake Insurance all those years ago and always admired his work and business energy. Our relationship was renewed later around 2004 when Dan Bill Godsell joined Lancaster Insurance as new business director, and a year or so later he came onto the board of that company. We enjoyed a great deal of success after that event – our customer account rose significantly thanks in part to a lot of the work he carried out, and that inevitably helped Lancaster to become an attractive acquisition proposition. Dan will be sadly missed both as a dear colleague and as a friend. Bill Godsell (former MD of Lancaster Insurance)

“

Hayley Parsons

”

Oh Dan, I can’t believe I’m never going to see your happy smiley face again. We always had such great times together over the years. Always on hand to offer advice and guidance – sometimes you’d talk sense, other times you’d talk utter s**t and I loved you for that.

I loved that you always wanted to see people do well in life and be happy, a true mate in every sense of the word. You loved your mates and they loved you. Mostly we laughed and drunk lots of wine - or went wine tasting! And of course you screamed like a girl, like that time at the London Dungeon – never heard a grown man sound like that before. And then we had the rugby banter. You loved it when Wales won because you knew how happy it made me. You always loved to see other people happy. You’d put other peoples’ joy over your own. You made me happy Dan. Being your mate is awesome. We always said life is short and let’s make the most of it. You did just that, you had a great life and you lived it. Taken far too early from us, but it really was a great life surrounded by love, adventure, fun, family and friends… and of course a wee bit of golf and a few beers along the way. Hayley Parsons (Founder of GoCompare)

”

“

Dan was our best pal for many years. He was a unique talent, intelligent and able to convey things in a very straightforward manner. I met Dan when we first started as underwriters back at Sphere Drake and then along with Chris Newman Paul Wishman went on to the start-up of Insurecom. It would be fair to say that Dan's humour and sheer energy helped us through those early Insurecom days, coupled with his clarity and focus. His ability and charm was appreciated by insurers and brokers alike and he was an incredibly popular character within our industry. Dan was a true a friend and his loss is keenly felt by myself and my family and he will always be remembered most fondly. Paul Wishman, LV= Group eCommerce Director

“

”

Anyone who knew Dan, would know his immense qualities as an individual, and one of the most charismatic guys on the planet. A talented sportsman. Dan and I spent many years together at Sphere Drake and then founding Insurecom, taking on Chris Newman the world as young naive lads who knew no fear or boundaries. During that time we were as ‘thick as thieves’ and on reflection the closest I will ever come to having a brother. Sadly as our individual careers progressed we drifted apart, but I continue to miss him dearly. I still smile every time I think of our golfing trips abroad with Trevor Cutts and Paul Wishman. Hilarious fond memories I will cherish forever. Chris Newman, Chief Executive, Transactor London Market

Available sp ace preven ts the inclusion o f more tribu tes to Dan, but th e Editor's th anks go to all reader s who provi ded comment an d sympath y to Dan's family

”

NOVEMBER 2015 insurancepeople 5

market talk Employee engagement Hambone?

Covéa engage with employees mong insurers, one of the demarcation lines between the various players relates to employee engagement, particularly relative to customer service. Many firms ‘talk the talk’, but how many actually possess the ability to put it into practice?

“Cracking the whip is not the best way to deliver great service,” says Lisa Meigh, director of HR & Learning at Covéa Insurance. Our conversation centred on their current ranking in the Sunday Times 100 Best Companies to Work For in the mid-sized companies sector. Lisa believes it’s the culture of the business that provides the solid foundation that

drives that accolade. “The wellbeing of our employees is embedded into everything we do. We like to think of it as our DNA. If you cut Covéa open, that is what you would find.” Market-wise, it was always traditionally the marketing budget that got decimated during hard times, but staffing has taken hard knocks too. So I asked Lisa why Covéa Insurance has chosen to support employee engagement. “We take the view that our employees are the people who drive our business performance. The reality is that your people give you that extra bit of discretionary effort if you hire well, attract

good people, and find ways to connect them with the business. “When you commit to creating an environment where employees feel fully engaged, and believe they are working in a great place, that effort makes a tremendous impact on the bottom line of the business.”

Lisa Meigh

Easier said, than trying to prove it (as I know from my own time in the industry in the 1990s). So how did Lisa go about proving the value of employee engagement? “We understand the value of our people, and are committed to investing in them. These days that value can be measured through customer service surveys and

accreditation, low staff turnover, lower recruitment and retraining costs, retention of home-grown talent, and really robust succession planning. What more do you need?”

“These examples confirm how unpredictable animals can be,” says Mark. “In some respects, pet insurance is more vital than regular health insurance as animals can get themselves into all sorts of danger due to lack of awareness of the risks involved. This award and the examples in it prove exactly why pet insurance is essential.” Mark warns of a danger to underwriters when pricing new policies as pet claims become more unpredictable. “Technology can help. Smart platforms designed from the ground up with the ‘pet

parent’ in mind, can be used to ensure records are kept up to date, ensuring that risk profiles and policies are accurate even down to which breeds are most likely to ingest a foreign object, for example.

“A CEO fully committed to the same goal?”, I suggest. “Absolutely, it does make my job much easier!,” says Lisa.

Bizarre pet claims izarre claims have always possessed their anecdotal appeal, and Mark Colonnese, VP and sales & marketing director at Aquarium Software steps forward with an update on the pet cover front.

bizarre industry award, the Most Unusual Pet Insurance Claim of the Year ’ – otherwise known as the Hambone Award run by American pet insurers Nationwide.

Did you hear the one about the bulldog who swallowed the nametags off his collar while still wearing it? Or the miniature dachshund who fended off a rattlesnake attacking his siblings? These stories derive from a seemingly equally 6 insurancepeople NOVEMBER 2015

Mark Colonnese

“Overall it’s about identifying an individual animal’s (and the owner’s) claims history and likelihood of claiming in the future. While this kind of profiling is commonplace in the wider GI world, until recently the pet insurance business has been lagging behind.”

Ageas signs up to IFR

in association with:

Moghraby heads new claims role

Ageas Insurance joins IFR Allianz creates customer recent news that comply, and this process related claims role TheAgeas Insurance had quite rightly takes time. It become the latest insurer to join the Insurance Fraud Register (IFR) triggered an existing query that’s been at the back of the mind for some time. Given that the IFR officially launched in late 2013 after four years of development, why do some insurers seem to be slow to take part in this industry initiative aimed at sharing details of known fraudsters to strengthen the initial validation process at application stage, and the avoidance of potential fraudulent claims. Rob Smale, claims director at Ageas Insurance and an Insurance Fraud Bureau supervisory board member soon put me right. “Ageas has been actively involved in the implementation of the IFR since day one, supporting the development of the appropriate framework, governance and environment. Due to the strict membership rules, it’s essential that any insurer is confident they are able to

Rob Smale

means having the correct internal structure to meet the governance requirements as well as a method to ingest, search and refresh the dataset weekly. Our new fraud strategy and capability developed over the last two years has enabled us to now join the IFR and we feel we are in a strong position to continue on this journey. “All anti-fraud data should be made available to businesses and people managing fraud. However it’s only right, and indeed reassuring to the public, that appropriate controls are in place to ensure data protection. “The cost of fraud to the insurance industry is massive and although there is no silver bullet, sharing intelligence will undoubtedly help us become more effective in our fight against it. Ultimately through access to data on the IFR we aim to detect individuals and organisations who attempt to defraud Ageas at an earlier stage and prevent the costs being passed onto millions of honest customers in the form of higher premiums. “The more we work together as an industry to tackle fraud, the more effective systems like the IFR will become. I’d encourage more insurance companies to sign up.”

iven the attention that insurers now pay towards customer orientation and its connection with the insurance promise, I’ve always suffered a nagging doubt as to how that approach can be successfully deployed in the claims department.

Claims are the shop window, true enough, but they are the people who have to sort the wheat from the chaff every time a claim comes in, whether that be from a genuine claimant, a time waster, or a downright fraudster. Putting the customer first is not always easy within those uncertainties. So it’s been with interest therefore when certain insurers place a customer experience manager within the claims area. Allianz Claims recently followed that path by creating a new role to do exactly that. Ibi Moghraby has been appointed as head of claims strategy and customer experience. He becomes

Ibi Moghraby

part of the claims management board and sits alongside other members. The stated aim is to more strongly position and align the claims strategy with the customer promise. After joining Allianz Ibi completed his corporate graduate programme and went to Birmingham branch as a development manager. He was promoted to branch manager in Maidstone in 2009 and since then has been on the promotion ladder in a number of roles and projects, including the role of head of SME direct markets in Lancaster, and MD of Allianz Business Services.

That promotion ladder he above item about development managers and promotions stirred a few happy memories of my time at Allianz in the 1980s (Cornhill, of course, as it was then known). If you wanted to get on that particular promotion ladder to one day run your own branch, you had to go out on the road as an “inspector” (as the development manager was called at the time). And… be prepared to relocate your family to any designated location anywhere in the UK. Say “no” at first bite, and you wouldn’t be asked again.

NOVEMBER 2015 insurancepeople 7

market talk

Pet & home cover from SunLife

in association with:

Aon sponsor art show

SunLife enter the GI market he article by Dean Lamble, MD of SunLife on page 12 in this edition of IP highlights a breach of the one-time ring fence between the general and life sectors. It is unusual for a life company to venture into general business, but that is exactly what SunLife have achieved with a venture into home and pet cover. Dean tells me that a lot of time and effort took place in extensive research before these products were brought to market. The reason for this move into personal lines is fairly

straightforward. “We already possess a very extensive customer base, providing a suite of products protecting our customers’ most important asset – themselves. The next natural step was to extend this to their next valued assets – their homes and pets.” The new products are aimed at a wide range of socioeconomic levels. For instance the home cover goes from basic contents to a £1m buildings cover at the other end of the socioeconomic spectrum.

I asked Dean about the need to obtain the right expertise in this new venture. “Naturally a move into the general business arena requires the appropriate expertise. Simon Stanney, our general insurance director, fills that space for SunLife. With 23 years’ insurance experience he joined HSBC following university graduation and helped to reengineer their fledgling home cover. He went on to manage HSBC’s home and creditor portfolio, and then joined RAC where he looked

Simon Stanney

after home and specialist insurances. He then moved to the over-50s space and worked at SAGA, RIAS, and Castle Cover where he was an executive shareholder.” Some mild d annoyances i the September IP, I feel an attack of the grum ps coming on. You might find that some of the followin register a rather indig estible feeling of deja-v u in yo life too.

association with:

Lloyd’s artists on show

Plastic packaging that simply cannot be torn apart – or cut open

It’s good to share

Barges on the Hard

Football teams that grow successful simply by spending obscene millio ns

interview

Nuisance phone calls Footballers who spit – and still “earn” millio ns My inability to remem ber what happened yesterday, let alone last week Lazy use of the Engli sh language; e.g. “halfeight” instead of “halfpast eight” TV actors who mumb le

Alan Cleary

noyances Some mild an some - perceived by more people - and rather nces” A few things than mild annoya as “no more rhetoric other people rules. But that’s , y, Andy Burnham Len McCluske Keith , Les Dennis, Currie, Joey Chegwin, Edwina Starr - giving my reddie a bad name. fellow Scousers

Mockney only to hear itself for you - it cares describe the fully speak. I can't as, later on, some worst speeches be operating readers may are a . This said, there s, one such brilliant exception

character by who reveal their as the humour nothing so clearly they resent. “entertain ment” 14. Television the braindea d on ”. dross for the I mean “couches nation’s sofas. otatoes, then. - Antony The ousted ones

here’s a certain therapeutic comfort in sharing many of today’s daily irritants with others. Letting off steam on Facebook, Twitter, Mums.net or wherever can help lower stress. The calming effect of Alan Cleary’s knack of pinpointin g many of these “mild annoyances” (as in last month’s IP) is a case in point, and has inspired the IP Consultan t Editor to not only compile his own list, but to share it with the readership who are encouraged to tick the boxes

Dear Editor,

Drivers who appear to want to get in the back of my car with me Temporary road signs

that get left out for month s Cricketers who “sledg e” The child next door who simply screams to gain attention Nuisa

Being another grumpy old man, I did enjoy reading Brian Susman's Alan Cleary-inspired mild annoyances in the October IP. Let me ofﬂoad a few of mine:-

This painting by former marine broker J N Martin featured in October in the Aon sponsored Lloyd’s Art Group’s Autumn Exhibition held in the Old Library in Lloyd's. Mr Martin joined J H Minet in 1963 and remained with them, and eventually with Aon, for over 40 years. “Living in Leigh-on-Sea, my father was a keen yachtsman and I sailed the Thames Estuary and east coast all my life so maritime subjects, not least the beautiful Thames sailing barges, appealed. Retirement is not always easy, but in painting I found a wonderful hobby that offers a continual challenge to improve and gives me much pleasure.” 8 insurancepeople NOVEMBER 2015

l l l

Constant use of "Oh, my God" to expre ss surprise Use of "myself" instead of "me" or "I" Starting a reply to a question with, "I

mean" Inability to communicate without repea ted insertions of, "You know"

Men who wear hats indoors

Lack of "please" and "thank you"

Use of the American expression "upcoming " instead of "forthcoming"

Brian Susman, Consu

Ray Stibbards, Broker Compliance Cons

ltant Editor

ultant

taxi insurance

There is a need to Grant “tackle the specific Georgiades implications for the motor MARKETING DIRECTOR PLAN INSURANCE BROKERS

insurance industry

”

Uber v. TFL – a conundrum for the insurance industry The Editor’s concern about stepping into potentially uninsured taxis (as expressed briefly on page 3 in this issue of Insurance People) sums up the consumer viewpoint, but also highlights a current state of inertia at the ABI. Grant Georgiades explains why he believes that while the Uber v. TFL ideological conflict rages, the motor insurance industry cannot afford to ignore the implications

he spat between black cabbies and Uber – the taxi app which connects customers and nearby drivers using GPS technology - has been widely documented. The heated debate between the two opposing forces has resulted in Transport for London (TFL) proposing new laws intended to level the playing field between black cabs and Uber.

Motor insurance premiums across the board will be subsidising the cost of any claims that arise from uninsured taxi and private hire drivers. Not only do these drivers have more frequent claims than the average motorist, the cost of their claims is also above industry standards. The sums involved could be considerable if the problem is as widespread as many fear.

Existing plans already include an English test for all drivers; a map reading assessment; new training for private hire vehicles, and a fixed landline. In addition, TFL propose a minimum waiting time of five minutes – even if the car is immediately available. Car polling would be banned, as would displaying nearby cars on the app.

The consumer question is, “When Uber picks me up, is the vehicle insured to carry passengers?” Is there any certainty? With investigative journalism exposing flaws, Uber has recently been forced to make its documentation checking processes more robust. However, there remains a significant systemic issue across the private hire industry. Drivers are able to exploit the inability of licensing authorities and/or operators to check the validity of their insurance cover on an ongoing basis.

o what does all this mean for the insurance industry? What is the insurance industry doing about this?

Very little, it seems, but then why should the insurance industry care about this controversial upheaval in the taxi and private hire markets? Unless you are a broker or insurer that specialises in this market, most observers have probably enjoyed watching Uber’s ongoing battle with the black cab trade from afar. It’s seen by many impartial observers as a clash between those who favour free market economics and technological advancements, versus strong-willed protectionists determined to resist progress. However, there are greater subtleties to the issue. Whilst the ideological conflict rages on, I believe there is a need to tackle the specific implications for the motor insurance industry. On average this year an additional 1,000 private hire drivers have been licensed every month. In my opinion, regulators do not have access to the necessary information to ensure these drivers have appropriate insurance cover in place at all times.

Private hire drivers may cancel their insurance cover, and then continue to illegally operate undetected. To avoid their vehicle showing up on the police ANPR (Automatic Number Plate Recognition) checks as uninsured, drivers may take out private car insurance which is far cheaper, but inadequate for their purposes. Their vehicle will be insured to drive on the road, but not for carrying passengers on a hire and reward basis. The insurance industry may not be doing much about this, but as yet, a co-ordinated response from the 400 councils that regulate drivers and the private hire insurance sector has not been forthcoming. Plan Insurance Brokers have produced a white paper on the issue containing proposals for an online portal that would empower the relevant authorities. Once built the portal will enable regulators to instantly confirm or refute whether suitable cover is in place for every licensed private hire vehicle on UK roads. NOVEMBER 2015 insurancepeople 9

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We now pronounce you...

Insurance wasn’t necessarily on the radar for everyone seeking this particular career path. But once on board, many not only survived the ordeal, but thrived on the opportunities. Result: A marriage for life. Wedded bliss. For better or worse. In association with Markerstudy Group, Insurance People presents a series of interviews featuring some of the insurance people happy to have pledged their troth to this industry

Ian Clark Principal, Mighty Quinn Consulting Ian Clark was a partner in the insurance practice at Deloitte and its predecessor firms - for 25 years, and latterly ran the insurance strategy and M&A practice. As part of that he held responsibility for UK personal lines strategy, and was one of the partners that led the Deloitte (and prior to that the Bacon & Woodrow) annual motor and household analytical seminars. He has been seconded into Lloyd's to run projects, and spent a spell as a Government appointee on the IBRC board (a forerunner of the current broking regulator). He is on the board of Sabre Insurance and also a non-executive director of Pioneer Underwriters. He left Deloitte in February 2014 and now runs his own consultancy specialising in advising insurance distribution and underwriting businesses, particularly motor

AN: Over the years you have become a specialist, particularly in motor. Did you envisage that outcome when you began your career? IC: No, I started out as an auditor of insurance businesses, and became a partner in Binder Hamlyn in 1990. But by age 38 I decided that auditing was not really something that I wanted to do for the rest of my career. AN: Don’t tell me – you wanted to become a Lion Tamer! 10 insurancepeople NOVEMBER 2015

IC: No, Andrew. And yes, I did read your scurrilous comments about accountants in your On the Road column in last month’s Insurance People. My great opportunity was to join Bacon & Woodrow as a partner to help build a new consulting practice. B&W was, at that time, Europe’s leading actuarial practice, and possessed all the contacts that you would want in the industry. But it was primarily a one-

trick pony, and with some very strong commercial colleagues we were able to leverage those relationships and build a very successful consulting business. We merged our insurance practice with Deloitte in 2001. We never looked back. It’s gone from strength to strength. I retired from a very good business. AN: So Mighty Quin came into being after you ‘retired’ from Deloitte in February 2014?

IC: Yes, it’s a vehicle for me to provide strategic advice to a limited number of clients, where I sit alongside senior board directors and shareholders, helping them set the direction of their businesses. My entire career has been in, or around, the personal lines and Lloyd's markets, and running a business of the scale that I had at Deloitte exposed me to many of our industry leaders over the years, many of whom became clients. There is a demand for services that do not require the infrastructure of a large organisation, but where a guiding hand is preferred to help clients achieve an objective themselves. That’s the kind of service I provide. AN: What are the popular themes at the moment? IC: For me, there are currently three main topics on my clients’ agendas:l

births, deaths and marriages (or M&A to you)

questioning of whether the MGA model is sustainable in the long term?

the implications of Solvency II; the additional capital required, and what that means for the smaller insurer

AN: What led to your joining the board of IBRC back in 1997? IC: I was a partner in Andersons at that time, and having just completed a three year investigation into the collapse of Weavers on behalf of the DTI. I was encouraged by the DTI to become a board member of the IBRC which was then the self regulator of the broking sector. There were 16 elected members, plus three government-appointees, of which I was one. I did that for about three and a half years.

AN: Given your involvement in the early days of regulation, how do you regard its evolution since then? IC: The Regulator now has the ability to regulate. The IBRC never had any teeth, and that was a real frustration. The only tool we had if someone transgressed was that we could stop them calling themselves an insurance broker. So when regulation was tightened – initially with the FSA – I was one of the people encouraging that to happen, largely because of the aforementioned frustrations. And of course now, the regulator is beginning to look more actively into the practices involved in distribution, particularly at the point-of-sale and where there is delegation and subdelegation of responsibilities, very much from a conduct risk perspective. That’s something that is high on my clients’ agendas these days. AN: But do you believe the weight of regulation has now gone too far the other way?

IC: Yes, I think it has. The pendulum has now swung too far the other way. And it needs to come back because the cost of regulation for any small intermediaries at the moment is prohibitive. I think BIBA are doing a very good job in representing the interests of their members to try to get the costs of regulation down, and more appropriately spread across the industry. AN: How much do you believe recession has stifled new start-ups in Lloyd's? IC: Start-ups were particularly difficult for a number of years following the Lehmann’s crash as growth was controlled by Lloyd’s in difficult market conditions. Things are beginning to ease now as Lloyd's rolls out its 2025 strategy, and the opening of the doors at Lloyd's is to be encouraged. We’ve seen a number of new start-ups recently, both from businesses generated from within the market, and international players coming in. I wish them well, but the costs of operating in a Solvency II world are high these days.

AN: How did your association with Markerstudy come about? IC: It was while I was chairing the B&W motor seminars that I first met Kevin Spencer in the very early days of Markerstudy. I’d known Gary Humphreys previously when he was at Crowe. We used to get together to chew the cud on the industry, and the direction it was moving in. Over the years there were a number of occasions I either acted for them when they sought to buy a business, or I was involved in selling them businesses. So I’ve had a fairly strategic relationship with them for around 15 years. AN: And never a dull moment? IC: You have to know the individuals. Both Kevin and Gary are serial entrepreneurs. Very driven. They absolutely understand the motor value chain, and can identify where there is margin in that chain. So in our conversations a pig is a pig, and there’s no point hiding the fact that it is a pig. If something is good, we all know it’s good; if something is bad, we all know it’s bad so let’s stop trying to dress it up. That has made our interactions a breath of fresh air. They are enjoyable to work with, and there’s a lot of great fun dealing with them. They are currently a lot easier to deal with than my patriotic, rugby mad Australian wife! NOVEMBER 2015 insurancepeople 11

The life and general business sectors tend not to mix, but SunLife has not let that taboo prevent its venture into home and pet cover. Insurance People asked MD Dean Lamble to share the thinking behind this development

Dean Lamble MANAGING DIRECTOR SunLife

A new model for general insurance unLife has been on a mission since we relaunched last year – we aim to make it as easy as possible for people to get the financial products they want, so they can feel good about their financial future.

highly useful brand attribute when you’re entering the GI market. l

It’s a mission which has just entered a new stage, with our launch of home insurance and pet insurance – bringing to bear our direct expertise and profound customer understanding to market the products without manufacturing them. For some companies the manufacture of products can become a distraction, leading to a focus on differentiating product features rather than addressing real customer needs. Too many companies still make financial services too complicated, or insist on including features that many customers don’t want, but which push up the price. We take a forensic focus on how we can make the product and its purchase as straightforward and affordable as possible. General insurance was the next logical step.

In pet insurance, it means using selected aggregators, and our own customer base (over 850,000 policyholders, more than half being pet owners). Offering the right cover at the right price attracts the most customers and high conversion rates. Home insurance demands an outbound model so customers can talk to a real person, without having to fill out a long form.

Quite simply, there are three key advantages as a direct-to-consumer marketing business. l

Distinctive brand. We have a well-known, much-loved brand that has high consideration among our target audience and excellent market-leading customer satisfaction scores. This trusted brand is one reason why we’re able to successfully distribute products that are manufactured by another company. What’s more, our recent research shows customers associate SunLife with being good value – which is obviously a

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Direct insight. Our insight team ensure our marketing budget reaches the right customers, at the right time, in the right channel, and with the right message. We employ around 20 full-time, in-house insight experts, looking at over 5,000 variables for customer propensity, and tracking over 1,500 marketing campaigns a year. Everyone talks about ‘big data’, but it’s the analysis and application of that data intelligence which makes the difference – and that means knowing the most effective and engaging ways to reach your customers.

Digital first. SunLife is increasingly a technology business, with a ‘retail-like’ approach. That means a seamless customer journey as frictionless as possible. The website is fully-responsive across devices, with ‘quote-and-apply’ functionality and engaging content giving customers the support they’re looking for. A recent video, for example, has been viewed over 360,000 times in a week.

ringing these three assets to bear in new areas of insurance, protection and savings feels very natural, disrupting markets that may have previously focused on product innovation above customer service.

Making our products accessible to as many customers as possible means there’s no ‘take it or leave it’ – we let people pick the cover that’s right for them, so they’re not paying for features they don’t value. But most importantly, we make that process of choosing as straightforward as possible - it clarifies rather than confuses. In addition, we work with our partners to ensure the products offer customer value. For example, many people worry about their pets in the same way they worry about their family. At the moment of crisis, a concerned pet owner wants help at any time their pet is sick, so a 24hour veterinary hotline becomes the focus of the service. We believe it’s tremendously important to help people at times of stress. That’s a far cry from the ‘indemnity-only’ focus of insurance in the past. And it’s something customers tend not to forget when it comes to renewal time. That’s how we’ve built SunLife into one of the UK’s most successful direct-to-consumer financial services companies - with a true understanding of what customers want, not just from a product, but from the whole customer experience. And that truly customer focused approach helps us win in new markets.

eTrading

Integrated eTrading v. Extranet

ignificant strides have been made this summer between insurers and software houses regarding the adoption of integrated e-trading. Itâ&#x20AC;&#x2122;s been fantastic to see how this solution has progressed, and opened up highly efficient opportunities for brokers.

he fact remains that our brokers will continue to have access to the same products and pricing. Insurers feel itâ&#x20AC;&#x2122;s important that our brokers can choose how they wish to trade with their insurers, via an efficient and cost-effective way of working.

Since the relaunch of our own commercial lines solution we have worked with Polaris to encourage a panel debate with our brokers and their insurers around the integrated eTrading v. extranet issue.

Insurers have given an assurance that they will continue to provide consistent support across both integrated trading and their own extranets.

Initial discussions revealed that while brokers accept that integrated technology platforms are great for comparing price and cover, they are not sure about missing out on something on the insurerâ&#x20AC;&#x2122;s extranet - for example the ability to discuss risks and negotiate terms. Can they expect the same level of service from insurers if they choose to use an integrated route?

What is also coming through loud and clear from insurers is their drive to offer a flexible approach to supporting brokers through dedicated e-trading teams - who will be able to handle both integrated and extranet queries. These messages are really heartening to hear. But what is the next chapter for integrated e-trading for brokers?

Nick Giddings CEO POWERPLACE

The initiatives from our insurer partners speak volumes in terms of the dedication being invested into integrated e-trading. Insurers recognise that integrated products are moving at a fast pace, and hence specialist digital consultants are being recruited and web-chat facilities are being investigated. Integrated e-trading has changed so much in such a short space of time, but importantly now opens up so many more opportunities than before.

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

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

NOVEMBER 2015 insurancepeople 13

Alexander Burgess

demise of PPI

DIRECTOR BRITISH MONEY

“It was all about the money” The proverbial tumbleweed rolls across the toxic wasteland left behind by the PPI misselling scandal. A former provider of legitimate PPI, Alexander Burgess explains why his firm is now withdrawing from this market until this part of the industry puts its house in order, while facing up to the fact that PPI may never recover from the sheer scale of the mis-selling scandal. However, he believes it’s never too late to learn from mistakes of the past, so it remains vital to understand the triggers behind the scandal so that they can be avoided in the future

hen properly sold, payment protection insurance (PPI) enabled people to keep their homes during times of hardship, and prevented them from spiralling into debt. It followed the ethos of the insurance industry - to give help when and where it’s needed most.

We’ve gone from those halcyon days in the mid-to-late 1990s when the Government - in partnership with the ABI and CML - set a target for 55% of home buyers to have MPPI in place, to today where only around 2% of new and 5% of existing borrowers have cover.

Office of Fair Trading equated this to 6.5m policies annually. However with MPPI policy sales falling below the Government’s 55% target (by 2000 20% of all new and existing mortgage holders had cover), providers were keen to increase volume, at whatever cost.

The industry is painfully aware of PPI’s rapid demise. From a muchlauded financial safety net, benefitting provider by reducing delinquent loans, and maintaining payment continuity for customers, PPI is now considered so toxic that past-providers fall over themselves to distance their brand from this product.

Providers suggest single premium cover caused the downfall, and advise that it’s futile to rake over the past, preferring to look to the future.

Greed. Single premium policies afforded huge financial benefits. Interest was charged on the cover alongside the mortgage; 60% of the policy cost was recouped in commission; and the low claims ratio (17%) meant more went into distributors’ coffers.

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Past-providers now distance their brand from this product

”

The fall-out from the mis-selling scandal triggered the greatest protection gap this country has ever seen. A whole generation of house buyers have no idea what mortgage PPI is, or why they would need it, and insurers continue to fail to protect the financial wellbeing of millions of UK people. 14 insurancepeople NOVEMBER 2015

“

Learning from past mistakes is the only way to avoid them in the future

”

I beg to differ. To learn from the mistakes of the past, the industry must understand the triggers behind the mis-selling scandal. Once chronicled, they can be avoided in the future.

Triggers Unrealistic targets. In 2005, the UK Creditor Insurance Report estimated PPI generated some £5.7bn premiums a year and the

Sales by stealth. In a 2006 market study, the OFT found 87% of loan and 40% of mortgage providers automatically included PPI in their quote and implied that purchasing cover would help with their credit application. One in three consumers fell for this ruse and they rarely switched providers. Communication failure. Following the ‘knowledge is power’ adage, distributors failed to communicate with consumers. In 2004, London Economics reported the marketing spend on creditor insurance was £635,000, compared with £3.94m

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What happens when sales come first and truth comes second?

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on advertising travel insurance. Consumer ignorance, coupled with confusion over differing prices prevented them from shopping around.

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Consumers fell for this ruse and rarely switched providers

”

Such activities prompted investigations by the Citizens Advice Bureau, Which?, the OFT, the then-Financial Standards Authority and the Competition Commission. The CC’s ruling in January 2009 included a cull on single premium PPI and a ban on selling cover when the loan is taken out. Lenders lodged High Court Appeals.

Legal rulings were upheld, and with a steady stream of FSA fines, subsequent compensation claims pushed lenders’ payouts to a combined £26bn-plus, and lenders may now face the prospect of paying this amount again, courtesy of a potential undisclosed commission ruling.

A new beginning Despite developing a Defaqto fivestar rated product that transferred the regulatory, financial, and reputational risks from lender to insurer (via a Conduct Risk Dashboard), not one organisation has been prepared to take that leap of faith and offer the cover. British Money is now withdrawing from the market until someone has the strength of character to do the right thing.

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It’s clear greed and avarice was the key contributor to PPI’s downfall

”

It’s clear greed and avarice was the key contributor to PPI’s downfall. Everyone knew what was going on, yet all turned a blind eye. As Jesse J in her Price Tag lyrics says, “seems like everybody’s got a price, I wonder how they sleep at night, when the sales come first and the truth comes second.” You cannot regulate against greed, so let’s hope more people in the industry now have a greater moral compass.

Then look no further •

Open GI has more insurance products on one single platform than any other software provider in the market.

•

Open GI provides UK brokers with multi-line, multi-channel and multibrand trading capabilities.

Talk to Open GI to see how we can power your business.

www.opengi.co.uk

Still searching for the perfect Personal and Commercial Lines technology partner? NOVEMBER 2015 insurancepeople 15

he man featured in both postcards this month from the Reg Brown Collection is Truman Kella Gibson, president of the Supreme Liberty Life Insurance Company based in “all principal cities of Illinois, Michigan, Ohio, Kentucky…” etc etc as revealed on the rear of the team photo card which dates from 1946. A very distinctive name, ideal when searching for more information. But while the name comes up instantly on the internet, a closer look reveals that it is his son Truman Kella Gibson, Jr. (1912 – 2005) who steals the limelight. Junior was a lawyer, government advisor, and later a prominent boxing promoter who later helped former world champion Joe Louis with tax problems in 1949. He played an important role in the American civil rights movement, acting as a member of the so called "Black Cabinet" of Presidents Roosevelt and Truman. His father, depicted in both postcards, is described as an insurance executive in Junior’s obituary. Deeper research reveals that he was a “Junior” too, his father being plain Truman Gibson who worked in the public library in Macon, Georgia.

ut when it comes to scene stealing, it’s the second card depicting the father of 18 year-old Jackie Roosevelt Robinson having his son’s endowment policy explained to him by the Supreme president, TKG in person.

Our Truman K. Gibson is described as “one of the country's most successful black businessmen” and had put himself through Atlanta and Harvard Universities and rose to prominence with the Atlanta Mutual Insurance Co. In the early 1920s increasing racial tensions in Atlanta prompted a family move to Columbus, Ohio where he founded Supreme Life and Casualty, which became “one of the nation's premier black businesses”. In 1929 he formed the Supreme Liberty Life Insurance Co and moved his family to Chicago's South Side. Young Jackie doesn’t even appear, but on 15 April 2016 his fame will be celebrated nationwide across the USA as Major League Baseball celebrates Jackie Robinson Day. On that day in 1947, he became the ﬁrst black baseball player to debut on a major sports team. Born in 1919 in Cairo, Georgia, he grew up in Pasadena, California. He played tennis, and while in the army in 1942 became friends with the aforementioned boxer Joe Louis. Robinson was commissioned as a second lieutenant in 1943. In 1945, he signed for Kansas City Monarchs to play shortstop and later joined the Brooklyn Dodgers… and the rest is history as they say. Amazing what you can learn from a postcard, isn’t it?

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risk management

Andy Hawkes CEO CARDINUS RISK MANAGEMENT

Cyber security: a global threat Today’s constant stream of media coverage of dire warnings about cyber risk aims at convincing organisations that this is now the number one risk they face. The audience falls into two categories – those organisations that have suffered in this context as opposed to those who question whether this is merely the Millennium Bug scare all over again. As Andy Hawkes explains, brokers’ duty to bring cyber risk to the attention of their clients is now a regulatory obligation or many firms, cyber risk is said to be the number one risk facing the organisation. But it’s clear that not all firms realise this. Thus brokers’ obligation to bring this to clients’ attention falls squarely in line with their need, not only to carry this out in exactly the same way as they are required to do in other risk sectors, but also to ensure that there is an audit trail to show that this duty has been carried out in a professional manner.

In the UK, there is no single law dealing with cyber security. There is however a myriad of laws and regulations that implicate this type of threat. Some of these apply to all businesses; others are sector specific. Firms might incur loss or liability for a security or data breach in a number of ways including:l

direct financial loss where the business is disrupted

voluntary or contractual payments to mitigate reputational damage and fines imposed by regulators

private law claims including potential class actions

All businesses rely on systems and data, and that’s a key asset, but at the same time, a potential liability. And these data mountains have become the target of hackers around the globe, some of whom are malicious whilst others are just having fun proving they can get into databases. Businesses should take proactive measures to reduce the risk of a cyber attack, or to reduce the impact of an attack, including:l

identifying the specific risks to the business and what most needs protection - intellectual property; online platforms; and customers’ personal data

assessment of the potential consequences of possible attack – to reputation; share price; goodwill; litigation risk; and business interruption

devising a strategy via a cyber risk management plan and incident response plan

ensuring systems and security measures are regularly tested

implementing appropriate staff training and education

special attention for confidential and sensitive information

An important aspect of cyber security is the proper vetting of counterparties and business partners. Relevant contracts should include obligations on security and data protection systems. Appropriate warranties and indemnities may be considered as well as a right to audit counterparties. Businesses should also consider their own obligations to customers or counterparties, with force majeure provisions. Cyber liability insurance can provide access to emergency triage and analysis solutions - now an essential cover for all types of business. Some policies will cover legal and remedial costs, but only from the date of notification. Apart from the technical assessment, the wider stakeholder group will need to understand and assess the potential risks to the business resulting from any breach. Is the intellectual property at risk, or brand and reputation? Has there been a data loss? If so, has personal data been compromised, and does it belong to employees or customers who may need to be informed? What is the litigation risk? Finally, it is important to track through any relevant contractual obligations with customers and suppliers to identify, and then limit and manage, any contractual risks as well as to implement any business continuity measures to minimise disruption. The legal team will need to be involved in this exercise, and it is particularly important to ensure that the exercise is conducted in a way which attracts all available legal privilege. NOVEMBER 2015 insurancepeople 17

insurancepeople

News BIBA transfers holiday travel cover IBA has announced that its Holiday Travel scheme has been transferred to Syndicate DTW1991 at Lloyd’s. The new “Holiday Travel +” policy provides a range of benefits for customers including financial failure and covers many activities as standard including trekking to any height and motorcycling holidays. It also has the benefit of not excluding terrorism. The Holiday Travel + scheme has been enhanced to include cover specifically designed for golfing holidays, including loss of green fees as well as cover for loss of, or damage to clubs and accessories. BIBA members will continue to benefit from a webbased solution that gives them the ability to sell travel insurance using their own websites. In addition, new functionality has been developed which enables brokers to amend or renew policies online. BIBA members will also enjoy direct access to specialist underwriters for the more complex or unusual cases.

“Quote and buy” online from Rossborough

Insurers told to “embrace diversity”

allagher-owned Rossborough Insurance has launched a new ‘quote and buy’ online service for motor and household insurance, developed by CDL. Group managing director, Clive de la Cour, said: “Rossborough was established in Jersey nearly 80 years ago and our brand has a strong resonance with customers in the Channel Islands and also in the Isle of Man. The new website expands our clients’ access to motor and home insurance around the clock, from mobile, as well as desktop devices. It gives Rossborough customers greater flexibility, and the

n a presentation to mark the beginning of the Inclusion@Lloyd's Dive In festival, Nicolas Aubert, CEO of Willis GB, called on the insurance industry to embrace diversity. In a challenge to the status quo, he said the industry needs to employ a truly meritocratic approach. “Willis is a very proud sponsor of Dive In. We are committed to playing our part in improving the talent pipeline in our industry so that the best individuals get to the top, regardless of gender, race, sexuality or nationality. Only by

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feedback we have received so far has been overwhelmingly positive.” Rossborough has also taken advantage of CDL’s real tme pricing facilities to give it pricing control in the online environment and enable it to compete for business on price comparison sites. CDL commercial director, Nigel Phillips, comments, “We are delighted to be supporting Rossborough to expand its multi-channel strategy. The new online services will not only benefit consumers but increase Rossborough’s efficiency and business acquisition opportunities going forwards.”

employing a true meritocracy can firms in our sector ensure they give themselves the best chance to succeed over the long term.” He said that embracing diversity is the key to long term business success. “People with different experiences and backgrounds can enrich our business with diversity of thought, skills and creative ideas. They can help us provide valuable insight from different perspectives to help us better serve global clients, respond to new challenges and reach out to new markets.”

In association with

OIM Underwriting re-brands to Pen elegated authority specialist OIM Underwriting has formally joined forces with its sister business, rebranding to Pen Underwriting with immediate effect. The OIM teams will now be known as Pen Delegated Solutions, split into three areas of specialism: Household, Commercial and International – the latter offering non-UK companies access to Lloyd’s and

London market capacity across a wide range of business lines. The rebrand follows the announcement in May 2015 that OIM Underwriting would come together with Pen Underwriting under one leadership team — led by Mark Armitage as managing director. He says, “As Pen Underwriting continues to grow we’ve already witnessed the impact of creating a single brand: our

product knowledge and experience is stronger; our access to capacity is much wider; and we have a greater ability to invest in our trading relationships and tailor our offering to the needs of our customers. “Bringing OIM’s awardwinning delegated solutions into Pen Underwriting will allow us to offer even more through a dedicated team of regional development managers — giving brokers

and coverholders a real choice about how they trade with us. Together we can better demonstrate our distinctive breadth and depth of specialist facilities and full-service virtual insurer offering, whether they are looking for individual risk underwriting, e-traded solutions or the full proposition control that a delegated authority provides for volume business.”

FCA proposes pension rule changes he FCA has outlined proposed changes to its pension rules to address the risks and challenges faced by consumers in the new retirement market. The FCA’s paper contains a number of proposals designed to ensure that the pensions market works well for consumers, including new requirements to help consumers shop around, ensuring the consumers have the information to make informed decision and a discussion around the remuneration arrangements for the non-advised purchase of annuities. The FCA’s paper:

Sets out expectations about how existing rules and guidance operate in the new environment, providing illustrative examples.

Brings forward proposals for changes to FCA rules.

Asks for views on the range of information the FCA intends to examine as part of the follow up to its market study.

Invites discussion including with industry and consumer groups on areas where the FCA is minded to carry out further work.

The proposals include additional rules and guidance for firms on how they should communicate with customers, a review of the retirement risk warnings, which were introduced in February without consultation, and new rules for pension freedoms communications.

Over $440,000 for NY homeless ovenant House has announced that professionals who took part in the charity’s recent (re)insurance ‘Sleep Out’ raised over $440,000. While over 400 homeless youths slept safely inside, more than 100 professionals of the (re) insurance industry slept on the streets of New York, outside Covenant House, to raise awareness. “I am so humbled and proud of this industry for coming together to make such a real impact in the lives of the homeless kids at Covenant House,” said Andrew Bustillo, president and CEO of BMS Intermediaries Inc. and the board chair of Covenant House International. “The funds raised will make an immediate difference, helping us not only to provide food, clothing and shelter, but also counseling, and job training. Just as important, it provides these great, courageous homeless kids with the kind of family support that all kids need and deserve.”

NOVEMBER 2015 insurancepeople 19

insurancepeople

News

Open GI in long-term Carole Nash deal arole Nash has confirmed a new threeyear partnership agreement with Open GI, supporting its latest brand initiative, Just Motor Insurance, which uses Open GI's eBroker technology and is integrated with its back-office and price comparison sites, including its real-time pricing component. Open

GI is also supplying a Carole Nash-branded web portal for the delivery of all customer correspondence. Nick Baker, products and marketing director for Carole Nash, comments, “The market-leading solutions that Open GI equip us with enable us to increase efficiency and drive forward the company’s

Markerstudy completes AA AutoWindshields deal uto Windscreens (part of the Markerstudy Group of Companies) has confirmed that the deal to purchase AA AutoWindshields has completed. Kevin Spencer, group CEO of Markerstudy, says of the deal that “It was imperative to us to execute a swift completion, in order to put at rest the minds of the 200 AA AutoWindshields staff who have now joined the group. Throughout an acquisition, our goal is always to reduce anxiety

and afford reassurance, and my management team, headed by Chris Thornton, has moved heaven and earth to achieve this; working tirelessly to ensure the needs of both staff and customers have been met and exceeded.” Markerstudy has now completed its fifth company purchase this year, with AA AutoWindshields joining the roll call of Ultimate Insurance Company, The Policy Shop, the UK motor business of Chaucer and Lionheart Insurance Services.

development plans. We have been partnering with Open GI for over 20 years and truly value our longstanding working relationship. The initiative with Open GI supports our longer term plans around the development of our strong core bike business and movement into other niche markets.”

Nick Baker

Taylor selling Bestpark harles Taylor has reported that its subsidiary, LCL Acquisitions Ltd, is to sell its holding in Bestpark International Ltd, an insurance company in run-off, to Ashbrooke Financial Group Ltd. Group chief executive officer David Marock says, “The sale of Bestpark marks an important milestone in delivering our Owned insurance Companies business strategy. We have been seeking to reduce our ownership of non-life run-off insurers for some time. We will continue to focus our strategy on acquiring life insurance companies in

run-off, which offer attractive opportunities and generate cash releases for the group. In fact, over the last four years we have made four successful life insurance company acquisitions. “Charles Taylor is still one hundred per cent committed to providing runoff management services to run-off insurers after the sale of Bestpark. We have been active in the sector for many years and offer highlyrated claims management services, complemented by our run-off management, commutation analysis and negotiation services.”

LV= Broker marks ABC Home anniversary V= Broker is celebrating five years of its home insurance product, ABC Home. Introduced in September 2010, the product is available exclusively to brokers and has now grown to include over 200,000 customers.

20 insurancepeople NOVEMBER 2015

The ABC Home product offers flexibility on contents and buildings cover so that brokers can meet the specific needs of customers. For example, customers can insure a single item away from the home rather than having to insure multiple items under

the personal possessions cover. Further product benefits include: flexibility to choose the amount of contents cover - from £15,000 to £150,000; £1 million cover for buildings as standard; up to £25,000 cover for the cost of alternative

accommodation; access to free helpline offering advice in the event of a homerelated emergency; up to £500 cover for loss or damage to hedges, trees, shrubs, plants and lawns; solar panels and wind turbines cover; automatic rebuild calculation.

In association with

Car rates' biggest increase in five years C

omprehensive car insurance premiums have continued to rise during the third quarter of 2015, with motorists now paying on average £47, or 8.1%, more than they were this time last year, according to the latest Confused.com Car Insurance Price Index in association with Towers Watson. This represents the biggest quarterly rise (of 4.8%, or £29) recorded since 2010 by the index, which is based on price data compiled from almost two million customer quotes. This latest increase means that the average premium for an annual comprehensive car insurance policy has now reached £629. TPFT policies have also become more expensive, with a 7% quarterly price rise increasing the average quoted premium by £69 to £1056, which represents an annual increase of more than 10%. After enjoying three years of falling premiums, the last 12 months have seen a steady increase in comprehensive cover prices for motorists, with figures from the Price Index+ service showing monthly price increases recorded in five of the last seven months, including each month in the third quarter, suggesting that the trend towards higher premiums is now well-established. Stephen Jones, UK head of P&C pricing at Towers Watson, says.“The main story here is around a widespread market reaction to increasing claims costs, especially own vehicle damage claims. There’s been close attention given to premium change metrics during 2015 as the market has looked for signs that the trend of increasing prices has become established. Our monthly price index has shown rises now for five of the last seven months and, except for small market segments, finding reductions over the last 12 months is becoming increasingly difficult. He adds, “New technology such as telematics has helped to moderate premium increases for young drivers, as has a gradual return in the confidence of motor underwriters to compete for business in some segments of the market particularly impacted by Third Party Bodily Injury (TPBI) problems prior to the LASPO (The Legal Aid, Sentencing and Punishment of Offenders Act) reforms. This shift in sentiment has led to much greater competition for some risks, including young driver business, than was evident during the depths of the bodily injury claims crisis.”

Gold award for Cardinus ardinus Risk Management has been granted the highest standard 'Gold' certification in accordance with BAFE SP205, a UKAS accredited scheme for Life Safety Fire Risk Assessments. The scheme, introduced by the British Approvals for Fire Equipment (BAFE), and audited by the accreditation body, NSI, is designed to ensure the competence and reliability of a company commissioned to carry out fire risk assessments. Jamie Truscott, director of Cardinus Property, comments, “The ‘Gold’ certification is a significantly higher standard of operational control and process than the original ‘Silver’ certification and is aligned to our ISO 9001 accreditation. We are one of only eight organisations across the UK that have the 'Gold' certification.” The BAFE Gold certification follows the Investor in Customer ‘Exceptional’ 3-star rating awarded to Cardinus earlier this year.

Liberty at Lord's he Lord’s cricket ground played host to Liberty Specialty Markets and 200 broker guests recently. Left-to-right, former Kent captain and Sky commentator David Fulton; group chief underwriting officer Matthew Moore; England and Yorkshire cricketer Gary Ballance (and Liberty’s cricket ambassador); and head of business development and market relationships Mark Stephenson, display a bat signed by the England Ashes squad. The bat was part of a prize draw during the evening with all monies raised going to Liberty’s charity partner WaterAid. Brokers were able to tour the museum and players’ changing rooms. They were also entertained by a lively Q&A session with Gary Ballance and former Australian batsman Chris Rogers.

NOVEMBER 2015 insurancepeople 21

insurancepeople

News

Net combined ratio of 92% for home insurers

New AXA property loss adjusting panel

he UK home insurance market achieved a 92% net combined ratio (NCR) in 2014, according to the latest EY analysis, and is expected to be even more profitable in 2015 with an 89% NCR – an 11 year low. The industry has not achieved an NCR in the 80s since 2004, and analysis suggests it is likely to be the peak in the current profitability cycle. 2016 is predicted to revert back to 94% NCR: premiums are forecast to fall 8% from 2014 levels, while both claims and expenses start to rise. In 2014, expenses outstripped the amount paid out in claims for the first time. Simon Burtwell, UK head of general insurance at EY, comments: “The overall outlook for the home insurance market may be positive in the very short term, but with profitability hanging in the balance, the real elephant in the room - rising expenses - must be addressed. “The current low claims environment presents a timely opportunity for insurers to look at their cost base. As it stands, if damaging weather this winter were to drive up claims volumes, insurers would have to rely heavily on premiums to support their profitability, meaning consumers could well see price increases. But if insurers can curb their expenses now, it would prevent premiums from having to be hiked to the same extent.”

XA has reviewed its loss adjusting panels for commercial property and household, with the aim of providing “ … a structure that gives brokers much greater flexibility in who handles their clients' claims”. On commercial property, AXA has appointed Crawford & Company,Questgates and McLarens and on household, the panel is made up of Cunningham Lindsay, Crawford & Company and Questgates. As part of a change in supply chain strategy, AXA claims handlers will be able to appoint from a wider panel on niche claims and for complex claims, will appoint the most qualified individual expert, from the larger panel.

Commenting on the new panel arrangement, Martin Ashfield, property and lifestyle claims director, AXA Insurance, says, “Ensuring that we were able to meet the evolving needs of brokers and customers with a flexible adjusting panel was paramount throughout this whole process and these partners represent a real breadth of expertise and complementary skill sets. “Over the last year, we have been working through a wide-ranging programme of improvements to claims at AXA to provide an efficient and flexible service that is geared towards the customer at every stage and the appointment of this panel is a key component in the delivery of that.”

Senior managers and certification – FCA statement ollowing reports in the press about HM Treasury’s intention to extend and make changes to the Senior Managers’ and Certification Regime, Tracey McDermott, acting chief executive of the FCA, said: “Extending the senior managers’ and certification regime is an important step in embedding a culture of personal responsibility throughout the financial services industry. “While the presumption of responsibility could have been helpful, it was never a

22 insurancepeople NOVEMBER 2015

panacea. There has been significant industry focus on this one, small element of the reforms, which risked distracting senior management within firms from implementing both the letter and spirit of the regime. The senior managers’ and certification regime is intended to deliver better decisions to help avoid problems arising. We remain committed to holding individuals to account where they fail to meet our standards.”

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Funeral cost increases 29 times higher than inflation unLife's latest “Cost of Dying Report” shows that the cost of a basic funeral has risen by 2.9% in a year to £3,693, 29 times higher than UK average inflation and a 92.3% rise since SunLife’s first survey in 2004. While the percentage of people making specific provisions for their own funerals has risen slightly (from 57% to 59%), as has the number buying funeral plans (27% up from 24%), 41% made no provisions at all. This, combined with the rising cost of funerals, has pushed the average funeral shortfall (the

difference between the average funeral cost and the financial provision made by the deceased) up 3.3% to £2,449. This has taken the funeral poverty figure to £237million – an annual increase of £45million. Of those who struggled to cover the costs, half had to borrow money - either from friends or relatives (21%), the bank or a loan provider (8%) or via a credit card (21%) -while one in seven (14%) had to sell belongings. SunLife managing director Dean Lamble comments, “Our research

shows that just 1% of us really know what our loved ones’ wishes are for their funeral send-off - what flowers, what reading, what music – in fact, almost a third of people are organising funerals without even knowing whether their loved one wanted a burial or cremation. “And when you consider that the overall cost of dying has fallen by £300 and spending on the send-off has increased by almost 10%, many people may be spending this ‘extra cash’ on the ‘wrong’ things.”

Ageas and Virgin Money launch partnership

Taylor subsidiaries transfer business

geas UK and Virgin Money have launched their home and motor insurance strategic partnership which was announced in late 2014. Ageas is providing sales, servicing, administration and claims management. Home Insurance products are solely underwritten by Ageas, and motor insurance is underwritten by a panel of insurers managed by Ageas Retail. Darrell Evans, current accounts, insurance & investments director, Virgin Money, says, “With Virgin Money insurance products, our customers get the same price however they choose to buy, and we guarantee that we will offer them our best price at the first time of asking when they come to renew. We also avoid administration fees if they need to cancel or make minor changes part-way through their policy." Ant Middle, CEO of Ageas Retail adds, “Virgin Money is well known for its outstanding level of customer service and highest quality products so we are proud to be its trusted partner to deliver its insurance proposition. The launch of this deal continues to underline our ambition to work with like-minded brands to meet customer needs.”

harles Taylor has announced that its subsidiaries Cardrow Insurance Limited and Beech Hill Insurance Limited, which are non-life insurance companies in run-off, have entered agreements to transfer their insurance businesses to Tenecom Limited, a subsidiary of Berkshire Hathaway Inc. The group will receive a final dividend from Cardrow and Beech Hill once these companies are liquidated, post completion of the transfers. David Marock, group chief executive officer, Charles Taylor says, “I am very pleased that we have delivered successfully our strategy to dispose of our non-life insurance companies. We are focusing our strategy on acquiring life insurers, which offer attractive opportunities and generate cash releases for the group. Over the last four years we have made four successful life insurance company acquisitions. “We remain also fully committed to providing services to run-off insurers as part of our wide range of professional services provided to the global insurance market. We have been active in the sector for many years and offer highlyrated claims management services, complemented by our run-off management, commutation analysis and negotiation services.”

NOVEMBER 2015 insurancepeople 23

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Ageas adopts Insurance Act 2015 A geas is adopting the principles of the Insurance Act 2015, ten months ahead of the 12 August 2016 live date. As part of this process, Ageas has confirmed to brokers that there will be no change to its TOBAs as a consequence of the Insurance Act 2015. Any new claims from Ageas commercial policies incepting or renewing with effect from 1 October 2015 will be handled as if they had been written under the Act. In practice, this will mean that claims will be dealt with as follows (subject to customer rights existing under the terms of the policy): Non deliberate or non-reckless nondisclosure/misrepresentation l

Where Ageas would have charged a higher premium, the amount of the claim settlement will be reduced in proportion to the premium Ageas would have actually charged had the circumstances been disclosed.

If different terms or conditions would have been imposed, Ageas will treat the insurance contract as if those terms had applied from the date of the breach.

In circumstances where Ageas would not have written the policy, the insurance will be treated as void and the premium returned.

Deliberate or reckless non-disclosure/misrepresentation l

If Ageas considers the non-disclosure or misrepresentation to be deliberate or reckless, the insurance will be treated as void and the premium retained.

Warranties l

Warranties or conditions precedent will only be invoked if a breach has contributed to the loss that occurred.

Fraudulent claims l

Ageas will not look to avoid a policy as the result of a fraudulent claim, so will pay any legitimate claims made before the fraudulent act occurred. Ageas will, however, not pay any fraudulent claims and will cancel the policy with effect from the fraudulent act.

In addition, due to the mixed nature of commercial vehicle policies, and the wider protection offered by the Consumer Insurance Act 2012, all policies will be handled by the Ageas personal lines team under the auspices of the 2012 Act.

Liberty to exit UK motor L iberty Specialty Markets, part of Liberty Mutual Insurance Group, is to make a managed exit from its niche UK motor insurance business following a strategic review. Its motor book will close to new business from 1 November 2015 and will close to renewals from 1 January 2016. LSM is contacting brokers to inform them of the decision and discuss arrangements for the book’s orderly run-off. Alan Telford, chief underwriting officer –

24 insurancepeople NOVEMBER 2015

commercial, says, “This decision is the right one for LSM. Motor represents a small fraction of our overall business and, as a niche book, lacks synergy with our other classes of business and overall strategy going forward. We will only be in any market where we can give a stable and ongoing commitment to our customers and in these circumstances this is not possible. This makes the closure of our motor book the most appropriate course of action. The strength and growth we

have across our portfolio means we can take a decision like this, confident that it improves our longerterm position and overall profitability. “Over the coming weeks we will work with our brokers and the team running the book to ensure we continue to provide first-class service on the remaining in-force policies.” Liberty entered the UK and motor market in 2010 focusing on niche lines such as coach fleets and small commercial fleets.

B.P Marsh asset value up 9.5% .P. Marsh & Partners, niche venture capital provider to high growth businesses, announcing its unaudited group results for the six months to the ned of July, reports its net asset value up 9.5% to £65.5 million. Other financial highlights include: increase in the equity value of the portfolio of 9.3% in the period (and an increase of 19.8% since 31st July 2014); profit after tax (unaudited) up 100% to £3.4m (31st July 2014: £1.7m); final dividend for the year ended 31st January 2015 of 2.75p per share paid in July 2015; and NAV per share up 9.75% to 225p (31st July 2014: 205p).

On the move Who’s going where? Markel

Douglas Barnett

SBRC The Scottish Business Resilience Centre, the business resilience delivery arm for the Scottish Government and Police Scotland appoints Douglas Barnett as a non-executive Director. Currently AXA’s head of customer risk management, he joins the SBRC to offer expert advice on risk to Scottish businesses.

Cunningham Lindsey With 27 years as a practising chartered loss adjuster, Ian Westney joins Cunningham Lindsey’s major & complex loss team as a major loss adjuster, based in Manchester. Prior to joining earlier this year he was with Amedeo

Dr Mark Hawksworth

Markel International appoints Antony Hope as senior underwriter and head of the management liability account in its professional and financial risks division. He joins from Argo Global where he was deputy class underwriter for D&O since 2010. Prior to that he was D&O underwriter at Dual Corporate Risks and a D&O broker for HSBC Insurance Brokers. With 30 years’ experience Steve Loader joins as senior underwriter, marine trades, in the marine and energy division. He joins from RSA where he was a senior transportation underwriter.

Adjusting and GAB Robins before that. Dr Mark Hawksworth becomes global technology specialist practice group leader having recently joined from Crawford & Co where he was a specialist adjuster, dealing with major and complex losses with a technology, communications and cyber content. He graduated from Sheffield Hallam University in 1990 and worked for McLarens whilst writing his doctoral thesis. He moved to Applied Technology Adjusting before setting up Garsides Technology (G-Tech), which was subsequently sold to McLarens Toplis.

Alastair Drew

Gillian Anderson Brown

Alan Boswell Alan Boswell Group appoints Alastair Drew to the boards of Alan Boswell Insurance Brokers and Alan Boswell & Co whilst maintaining his role as group financial controller, the position held since 2013 after joining from Virgin Money. Gillian Anderson Brown also joins both boards. She was previously with Oasis Healthcare and joined in 2008 as HR manager and now becomes director of human resources.

Aon

Towergate

Aon Benfield appoints Colin Dutkiewicz as director of the accident, health and life team. Based in London, he joins Aon from Swiss Re where he spent five years as head of pricing (Africa), client markets director (UK & Ireland), and most recently global corporate actuary.

James Tugendhat becomes chief commercial officer. Having made the decision to remain at Towergate, he takes up the newly created role of chief commercial officer. Catherine Lynch joins as group human resources director from BGL Group, where she was group HR and communications director since 2013. Prior to this, she was head of HR at Barclaycard Europe in 2011-12 having previously held the role of HR Director at Santander UK for six years.

Capsicum Re Capsicum Re appoints Stephen Rix as head of analytics. With over 20 years’ experience he joins from Liberty special markets commercial division where he was chief actuary for over nine years. He previously founded and led the actuarial functions at Brockbank Syndicate Management, ACE Global Markets and Wurttembergische UK. He is also a founding member of the Lloyd’s underwriting agents actuaries committee.

QBE QBE appoint Roger Ball as director of motor. He joins in January 2016. His 32 years’ experience includes roles at Allianz, based in Munich.

NOVEMBER 2015 insurancepeople 25

On the move Who’s going where?

Steve Kingshott

Tesco Underwriting Tesco Underwriting appoints Steve Kingshott as chief executive officer of the motor and home insurance partnership

between Ageas UK and Tesco Bank. He has 30 years’ experience in UK and global general insurance, and most recently held executive roles within RSA, including managing director of UK Personal Lines Broker. His career began as a graduate trainee with Royal. Various senior roles since then include executive board membership for NIG, RBS Insurance International & Commercial, RSA Personal Lines and RSA Global Specialty Lines.

Asta

David Price

Endeavour Endeavour Insurance Services appoint David Price as divisional director for its specialist business to develop business from agents within the US, Canada and Europe. He is the former head of broker relations London and Europe at Beazley where he also held underwriting and broker management roles based in London and the US. He has 29 years’ experience in the Lloyd’s market. 26 insurancepeople NOVEMBER 2015

Asta Underwriting Management appoint John Holm as executive, MGA Investments. With 30 years’ experience he joins from Capita Commercial Insurance Services. Prior to that, he was the director of corporate banking at Clydesdale Bank and has also held senior positions at National Australia Bank and RBS.

Nexus MGA Nexus Underwriting Management appoints Jeremy Adams to its board as an independent non executive director. Since 2001 he was at Novae Group’s Lloyd’s managing agency where he became chief executive in 2002 and was appointed to the group board in 2004. He also managed the run-off of their syndicates 1007 and 1241 - at that time the largest run-offs in Lloyd’s. He began his career in 1978 in the international division of Willis Faber & Dumas before moving to the new political risks unit, and finally the financial institution division and was promoted to executive director in 1987. After ten years, he became one of the five founding directors of Special Risk Services, a broker specialising in financial institutions business. Following this he worked at Minet/Aon Group and Archer Managing Agents before joining Novae.

Edwards Insurance Brokers

Kim Holmes

Edwards Insurance Brokers appoints Kim Holmes as senior account executive. She brings over 30 years’ experience in the commercial sector and joins from Baker Jayne Insurance Brokers.

Gary Williamson

HSB HSB Engineering Insurance promotes Gary Williamson to regional manager for London and the South East. With 20 years’ experience he joined two years ago, having previously been operations manager for the customer solutions centre in Manchester. Prior to that he was the property and casualty underwriting manager for the UK Regions at CNA Insurance. He has also held various operational and business development positions at AIG and AXA Insurance.

Canopius Canopius Group AG appoints Scott Bailey as global head of accident & health. He joins from Zurich, where he was most recently global chief underwriting officer, A&H and has over 20 years’ experience. Gavin Watson and Kieran Morrin will continue as head of international A&H and head of UK A&H respectively.

Willis GB Willis Group Holdings appoints Alex Clayton as head of construction for Willis GB. His previous experience incuded leading specialty teams at Willis in terrorism, general liability, and property. He now heads up the Latin American and Caribbean property team out of London.

Andy Glynne

Barbon Barbon Insurance Group appoints Andy

Glynne as commercial director. He joins following the management buy-out with backing from The Carlyle Group completed earlier this year. With 24 years’ experience he joins from Cigna Insurance Services, formerly FirstAssist. Most recently he was commercial director for UK personal lines. Previously he led legal protection business, and began his career at Sun Alliance.

Thatcham

Alex Clayton

PolicyPlan PolicyPlan appoints Mark Teale as underwriting manager, following the recent promotion of Deborah Hughes to director of underwriting. He previously worked at Aviva, Ecclesiastical Insurance and more recently Granite Underwriting.

Thatcham Research appoints James Smith as the newly created head of communications. He was most recently head of connections at Twinings UK, but also had periods as global communications director with consumer brands at Carlsberg and Danone. RSA’s Ian Currie becomes the new chairman of the Thatcham non-executive board. As director of motor & injury at RSA, he also sits on the Motor Insurance Bureau (MIB) and replaces previous incumbent Tony Emms as chair, who steps aside after nearly three years.

Transactor

Nick Lerway

Transactor Global Solutions appoints Nick Lerway as chief operating officer. During his 30 years’ experience he held positions at Insure4Retirement, Homeserve, and RIAS.

David Powell

LMA In addition to his role as the Lloyd’s Market Association’s manager of non-marine, David Powell, has been elected to the new role of deputy chair of Thatcham Research, the UK insurance industry’s automotive testing centre. He is currently the longest serving director of Thatcham, having been on the board for nine years.

LV= Broker Tim Rourke has been promoted to head of personal lines underwriting at LV= Broker. Currently head of broker pricing, he joined from Ageas 18 months ago. With over 10 years’ experience his earlier career included roles at Standard Life and LV=. He began as a trainee actuary.

Henderson

Mark Teale

Henderson Insurance Brokers Ltd appoint Laura Brelsford to the Hessle office in East Yorkshire as claims manager, after seven years in that role with Aviva, where she managed commercial and household property claims.

A-Plan

Laura Brelsford

A-Plan Insurance appoints Jonathan Hartley to the newly created role of acquisitions manager. He joins from Swinton Insurance where he spent 12 years in acquisitions strategy, completing over 100 deals during that time. NOVEMBER 2015 insurancepeople 27

by Mike Millard

“It’s a People Business” Mike Millard is an insurance affinity distribution specialist, having worked for Bain Hogg, and later specialised in communications and marketing for brokers. Finding himself temporarily unemployed, he provides this report based upon current experience he unemployment ‘black spot’ was recently passed on to me, due to an uncharacteristic lack of vigilance on my part. Rather naively I assumed that this unsightly stain would come off with a little networking detergent - and some vigorous calling-in of favours.

I was wrong. With a few notable exceptions, my network developed a collective handshaking phobia of people who have time to consider the potential pitfalls of taking a paternity test on the Jeremy Kyle show.

I rang the 0845 number. The free employment advice runs in at 26p per minute nowadays. Unsurprisingly the phone was answered quickly and I recited the suspiciously long job reference. Estimated cost: £1. However, even with the tantalising lure of a multipound chat, the consultant declined a chinwag. “You need to apply online.” “How will you know if I’m right for the role? “The system will judge your suitability from your online profile.” “How about you gauging my suitability on the phone? You can learn more about me while I boost your profits.” “Sorry, online only.”

No matter, there’s more than one way to skin a job. So these days I’m on the Interwebby-net every morning, as soon as it opens. Now, here’s a network that keeps on giving. There are hundreds of insurance employment agencies advertising thousands of jobs. I only want one, and I found it literally minutes into my first day. Despite the typos and giddymaking number of tense changes, the hastily cut-andpasted job description fitted me like a Savile Row suit. The sort of job description you take home to meet your parents.

So that’s how I found myself not only uploading a CV, but then repeating fragmented elements into their preferred format to, “guarantee the perfect candidate/employer match.” Looking for an edge, I paused at the diversity questions. Thinking there might be some sort of

28 insurancepeople NOVEMBER 2015

positive discrimination quota system for interviews, I hastily converted to Klingon (just as many do on their census form). My application was efficiently acknowledged with an email warning me that most applications fail. Furthermore, if I was ignored for seven working days, I should consider myself as having successfully failed. The telephone number was scattered around the communication like a 26p per minute comfort blanket. once had a boss who described me thus: “Mike, your brain doesn’t travel in straight lines. It means you’re not classically thick like the others.” I’ve always considered this a compliment, and chose this as my most valuable personal characteristic to convey online.

Surely my rare strain of stupidity would be in demand? I knuckled down. By the end of the day I’d been on so many candidate journeys my fingers continued to press imaginary keys several hours after I’d logged off.

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The family thought I’d taken up playing a piano that only I could see. But at least I was online, and confident that my electronic personality had absorbed some of my real one. I never heard again from that agency advertising the job I was destined to marry. I must have indeed, failed successfully. But it’s not all been bad news. For example, just three weeks ago I received an email urging me to apply for a job described as perfectly matching my online profile. There’s no doubt it’s a great job, but passing actuarial exams and becoming fluent in Mandarin before the application expiry date will definitely be a challenge. That aside, in every other respect it’s ideal. Except, perhaps, the relocation to Shanghai. The agency must think I have a chance though, because they invite me to apply for this job every week, sometimes twice each week. I admire the extraordinary efforts they are making to help me back into work, but it doesn’t surprise me one bit. After all, insurance is a people business, isn’t it?

If you want to save Mike Millard from the horrors of daytime TV he can be contacted at millardmike@btinternet.com or via LinkedIn

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