insurancepeople issue 47 October 2014
Duncan Pritchard See Page 16 Insurance People inside include:
Simon Calderbank Paul Daley Jonathan Davey Adam Farr Steve Hankins David Haynes Gary Humphreys Ian Mclean Wayne Pontin Jeff Purdy Mandi Woolven
ce nsuran I e h T “ ith zine w a g a M ality� Person
surance “The In with ne Magazi ity” Personal
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insurancepeople
leader
www.insurancepeople.uk.com
Counting the value of added-value Editor and Publisher
Consultant Editor
Andrew Newman
Brian Susman
Production Director
Jeni Hall
Adrian Susman
Editorial
Andrew Newman FCII, Dip.M andrewnewman@talk21.com 01892 730539 Design & Production
Adrian Susman adrian@insurancepeople.uk.com 07981 993974
In this issue
t’s a fact that the true worth of added-value never shows up in the actuarial numbers.
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Memo (circa 1995): Actuary to marketing/business development section “I can see the tremendous goodwill and added-value you create – but I have no means of measuring its value.” Commercial Director
October 2014
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Late news
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Market talk
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Interview Duncan Pritchard, Commercial Express
The article on page 18 this month raises a new twist on an old problem. This time it’s the FCA’s wish to link its assessment of add-on products to claims ratios. But as we know, even in-house actuarial functions experience the same problem. There’s more than enough intangibles just working with premiums and claims - just ask those who burn the midnight oil constantly reviewing unsettled claims in an attempt to find a number acceptable to all parties!
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Add-ons David Haynes, ARAG
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There are some things that simply cannot be counted, and feel-good factors like added-value are just one of them.
Data risk management Simon Calderbank, HCC International
Commercial Director
Jeni Hall jeni@insurancepeople.uk.com 07969 510172
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Take Five Jeff Purdy, Applied Systems
www.insurancepeople.uk.com Printers
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insurancepeople PO Box 537 Tonbridge Kent TN12 9WG t 01562 862990 m 07981 993974 e adrian@insurancepeople.uk.com
Down the drain!
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Gary Humphreys considers a ‘driverless’ future
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David Haynes spots a silver lining for add-ons
Also find us on:
Who said insurance is boring? The memoirs of the late Malcolm Forbes-Wilson
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Data transfer Ian Mclean, Sterling Insurance
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News
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On the move
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.
Who’s going where?
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Jeff Purdy says multichannel is the way to go for brokers!
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Ian Mclean proves that data transfer doesn’t have to be a nightmare
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On the Road A worshipful satire
OCTOBER 2014 insurancepeople 1
insurancepeople
Late News
in association with
HBC score 58! part from vehicle services firm HBC’s 50 years of growth (as featured herein on Page 6) MD Steve Hankins and the HBC team also celebrate another ‘50’ – they have just taken delivery of their 58th specially constructed state-of-the-art vehicle transporter. HBC’s vehicle fleet ranges from bikes to buses to suit all customer needs and pick-up locations, from the smallest of villages to chaotic cities.
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Cardinus forum for housing associations ardinus Risk Management is to host a free one-day forum in London on 20 November 2014, looking at the risks faced by housing associations. Managing Housing Association Risk is for housing associations and property professionals with responsibility for protecting valuable assets or the health and safety needs of housing staff and residents. Hosted by Cardinus Risk Management at its offices at 107 Leadenhall Street, it brings together a number of industry experts to reveal best practices and help housing associations to improve productivity and the safety of their staff. Delegates will also receive advice to help ensure they don’t incur unnecessary costs in the management of their property portfolios.
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Details from Cardinus Risk Management on 020 7469 0200.
6% growth for Russell Scanlan ast Midlands-based broker Russell Scanlan has reported growth of 6%, with its new healthcare division, launched at the start of 2014, contributing 2% of overall growth. The company also reports “ … substantial gains in turnover and profit margins”. Over the last five years the company has delivered growth of 20%. Expressing pleasure at “solid growth”, Russell Scanlan MD Bryan Banbury comments, “Our performance across the large corporate, commercial and SME accounts remains buoyant, and that’s down to a more strategic approach to
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Bryan Banbury
lead generation and cross selling. Overall, we’re delighted with our latest results, and will continue to work hard in going out to the market on behalf of our clients to deliver the best possible service and insurance outcomes.”
New appointments in Gallagher senior team rthur J. Gallagher has appointed Simon Pearce and Andy Tedstone to the senior management team of Gallagher Insurance Solutions, its personal lines, corporate partnerships and private clients division. Both will report into Martin Oliver, the newly appointed managing director of GIS, who joins in October. Simon Pearce takes up the newly created role of chief operating officer for GIS, having previously been COO of the UK retail division, while Andy Tedstone moves across from Arthur J. Gallagher’s market management team to become managing director of partnerships.
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Simon Pearce 2 insurancepeople OCTOBER 2014
Andy Tedstone
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market talk
Andrew Newman
“Take-it-or-leave-it” still lives! 25 years’ contact centre service
Have you heard the news? knew it was foolish of me to stick my neck out! Last month’s IP leader article bore this title, and while the punch line rested on the fact that some providers of insurance certainly haven’t heard the news, the overall vibes from this end was that all things ‘customer service’
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are getting better, despite the adverse exception I cited. That example was a local 70 year old lady’s rebutted request to her healthcare insurer to reduce her premium by removing unnecessary elements of cover – childbirth, parent
Award for Allison C
ongratulations to Allison Quinn on achieving 25 years’ service in the contact centre industry with Fusion. On leaving school in Sunderland, Allison joined Arnott Insurance’s direct telesales operation in 1989 under a youth training scheme and progressed to supervisor level. In 1999, Arnott was acquired by Budget Retail (which became the BGL Group in 2007) and she was promoted to manager in 2001. Allison says, “The shift in technology has dramatically changed the workplace since I first started in telesales, but our strong values remain just the same. I get to work with so many lovely people and the atmosphere is always very supportive.” Her “above and beyond” enthusiasm as a caring and supportive manager was recently recognised by an in-house award, as shown in the photo when BGL Group CEO Matthew Donaldson presented her award.
4 insurancepeople OCTOBER 2014
accommodation, hospitalisation of children under 14, and pregnancy complications, only to be told, “Sorry, but this is standard cover for everyone… including men.” In other words, “Take-it-or-leave-it”. So okay I say, donning my chartered insurer hat.
That was just an isolated case of incompetence and/or a lack of commonsense. But… just as those words were rolling off the press last month, along comes another one, this time from our ‘other’ office in Salop as revealed in the following item:-
Another case of “Take-it-or-leave-it” Brian Susman writes:
Postcode pedantics was up at the top of the village the other day, visiting the local post office to see if any money fell when I shook the money tree. I usually stop for a word or two with our postmaster, who is a pleasant, chatty sort. I had a little time to kill while the storm of biblical proportions raging outside died down a little. Conversation turned naturally to the weather, and he regaled me with the story of his recent attempt to effect home insurance – he lives ‘over the shop’. He reasoned that, as postmaster, he should be able to get something worthwhile out of Post Office Home Insurance. However, his application was turned down. “You are in a flood-prone area,” he was advised. “Your postcode proves it.”
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He patiently explained that, although the river was no more than a couple of hundred yards away, his home (the post office) is some 200 feet above the river, atop a ridge, which renders it somewhat unlikely to feel the effects of a raging torrent. “Sorry, makes no difference,” he was told. “We still cannot offer you insurance, because the postcode shows you are in a flood-prone area.” And that was that. A poor enough reflection on the pedanticism of some elements of this great British insurance industry of ours, but with added piquancy, seeing as he is the village postmaster, and that it was the Post Office who were refusing to listen to reason. All I can say is, if he is indeed in danger of an inundation, I don't give much for the chances of the rest of us! Brian Susman, Consultant Editor
in association with:
Book review
The Reluctant Umpire t was through the good offices of Paul Cosh - a long time director of the Club Cricket Conference and a trustee of the Club
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Cricket Charity, aiming to reinforce support for club cricket throughout the country - that a review copy of this new volume by
The Reluctant Umpire t's the long white coat that gives him away. He is the ‘reluctant umpire’. This brave band of men – and women – are the ones asked by the skipper, in socalled friendly club cricket matches, to “do a bit of umpiring for us”. They are among the 200,000 or so who each week get dressed up in their whites to take part in friendly cricket, always with that nagging thought in the back of the mind that they might be asked, at some stage, to stand in judgement of their team-mates.
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It's a possibility that, to put it mildly, is not the subject of eager anticipation. Dismissing a team-mate for the faintest of touches on the ball through to the wicketkeeper, or worse still for a ‘tight’ LBW decision, is the hardest thing to do – especially when you are not 100% conversant with the finer points of the laws, let alone certain if your decision is correct. I know – I've wrestled with the problems many times myself. Help – and some amusement – is at hand, in the form of a handy little book (no more than 50 pages) entitled The Reluctant Umpire by, appropriately enough, Robbie Book. He is not only a director of the Club Cricket Conference but is also chairman of the trustees of The Club Cricket Charity, and it is to that charity that all proceeds will go. With a foreword by David Lloyd, known as Bumble to many TV and radio listeners, the book is a combination of genuinely helpful information for the occasional umpire, as well as containing a running theme throughout, recounting the tale of club cricketer “Alan”, who opens the batting, only to be given out LBW first ball by a team-mate when he had, in fact, edged the ball on to his pad, later to be
Robbie Book reached the IP editorial desk. Over the years there’s always been a slant towards “the summer
game” in these pages – readers may have detected it – so over to IP’s in-house cricket correspondent:-
asked by the skipper to “do a bit of umpiring”. The author describes the book as “a treatise on how to umpire a club cricket match, survive your teammates and not lose your friends”. From personal experience, I can attest to the fact that, in some circumstances, it can also be a question of your decisions affecting your career path. One of the champagne moments of my own Celebs CC history came in an early match against Royal Sun Alliance at their private ground at Inglewood, on the Wirral. One of the leading lights in RSA circles, later to go on to even greater things, came in to bat, only to be given out stumped first ball by the square leg umpire – a young man, just embarking on a career with the company, and thrust into umpiring duties. This “reluctant umpire” later confided that “it was the correct decision, but I'm not sure it was a wise one”. History does not record just how far his career went thereafter – if indeed he had one! Brian Susman, Consultant Editor
OCTOBER 2014 insurancepeople 5
market talk
50th Anniversary for HBC
in association with:
Retirement for Leatherhead broker
HBC celebrate 50 years his year HBC Vehicle Services has been celebrating 50 years in business. Founded in 1964, Holding & Barnes began trading with one site and two staff selling around 25 cars per week. At that time in the 1960s there were about 180 motor insurers compared to around the 40 operating today. Contact was primitive by today’s standards with one land-telephone line, paper ledgers, and no mobile communication. During the 1970s HBC moved to Canvey Island, increased staff to 20 and were selling over 10,000 cars per year. They became part of the ‘insurance people’ fraternity in many insurers’ eyes when they undertook the first contractual salvage arrangement, partnering initially with Corinthian Motor Policies, and ever since
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have fostered their insurance relationships. Operating systems and business expansion led to the launch of the first physical auctions in the late 1970s. These auctions encouraged buyers to visit HBC sites each Wednesday and Saturday, and during the next decade technology began to play an increasingly important role. During the 1980s HBC expanded to three sites, dramatically increasing sales to 20,000 units per year and now employing 50 staff, and were operating five purposebuilt vehicles for the collection of damaged cars. The 1990s were when the technology really took off, seeing the first web browser and the launch of a fully compliant database system. Annual sales had by now increased to 30,000 operating out of five sites. More technology
Steve Hankins
enhancements followed in 2000 with extensive website development and ecommerce. Another major first for HBC was the launch in 2005 of the first internet auction, and this has grown in success year on year. The “eValued” valuation tool followed in 2008 together with a dismantling facility. Since the MBO in 2013, when HBC Vehicle Services completed a management buyout from founder Terry Holding, HBC’s new owners have aimed at the continuation of innovative
solutions and outstanding service to users by introducing Electronic PDA's for collections and the roll out of HBC's Launchpad – a web based system offering insurers direct access. The current owners of HBC are Steve Hankins, managing director, Matthew Bache, financial director, Geoff Riebold, IT director and Jim Chatten, commercial director. Jointly they have provided over 50 years’ service to HBC. Steve Hankins: “The heart of this business has been the people. HBC has grown rapidly over the years, with now ten UK sites and 58 specially constructed vehicle transporters. We’re fully focused on delivering the best quality of service to our users. We‘ve forged excellent relationships and friendships and we look forward to many more decades of HBC success.”
Robin Waters retires ongratulations on retirement to Robin Waters, founder of Leatherhead-based insurance broker R T Waters Ltd. Having crossed the fence into broking in 1958, it was at the suggestion of an Avon area manager that the thought of starting up his own broking business came
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about. With a considerable number of potential clients among friends involved in family businesses, the impulse to become independent was an attractive one. The business commenced in August 1960. “It's been a good 53 years - sometimes with long hours and focus, but rewarding to feel
appreciated. And it has also generated some good friends”, says Robin. “The R T Waters business has grown steadily with eight employees, with Daniel Hodges now managing director, with Keith Harrington purchasing shares, and Graeme Olsen of Heritage Capital Management becoming the major shareholder.”
Robin Waters
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market talk Did Albion cheat in their Cup Final? Citadel Re retain rating
* A ‘casie’ was the popular term for the universally
'Perfidious' WBA v PNE 1954 ormer Albion (Insurance) and Sterling man Geoff Doyle got in touch following last month’s IP interview with Andy Homer, in response to the latter’s thoughts on the current state of the market. “I’m still doing a little broker consultancy work, and experiencing the same frustrations as many brokers at the apparent lack of entrepreneurial spirit and expertise within the insurer community,” says Geoff. “Unfortunately, in the PC and highly regulated market of today there are no gongs for bravery. “But what really stirred the emotions in your interview with Andy Homer was your ‘footy’ chat. I didn’t know he was a Baggie. You raised the 3-2 WBA v Preston North End Cup Final clash in 1954. Andy of course wasn’t around then but, like you, that was my first FA Cup Final.
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“Aged 9 at the time, I ran alongside my Dad on his bike, dribbling my ‘casie’* to the only family friend with a (very small) black & white television and suffered my first gut wrenching feeling of disappointment at the outcome - especially as Sir Tom Finney (on his own admission) did not deliver. It was a sad journey home, but I was hooked on football for evermore, and I can relate closely to your joint comments about long-term loyalty to ‘your’ team through thick and thin. It’s just that in that 1954 epic my loyalty was firmly rooted on the
Geoff Doyle
used 'caseball' which described the brown leather, panelled football with lacing at the 'neck' where the bladder tube protruded. A common tactic among amateur part-time teams of the era (especially if it was wet) was for the goalie to punt this cannonball directly at the opposing centre-half in the double-hope that not only would he suffer from a temporary period of concussion, but that the lacing and bladder tube might leave an indelible imprint on the opponent’s forehead for the rest of the afternoon.
other side of the halfway line! “You see, my dad was a ‘Proud Prestonian’ and although I was born in Manchester, I was raised on tales of the fabulous Preston Plumber - Sir Tom Finney who died earlier this year. (I attended his funeral). “According to such eminences as Bill Shankly, Sir Tom was THE finest English footballer of that post war golden generation - and arguably up there in the top three of any generation along with Sir Bobby. I saw Sir Tom play several times and marvelled at his superb body swerve which could throw a complete defence off balance. “Many years later in 2001
I was able to arrange a 90th birthday surprise for my Dad and my two sons with a visit to Deepdale, and Sir Tom met us privately in the dressing rooms. Magical moments and a pleasure and privilege to meet such a wonderful footballer and human being. What a refreshing change compared to the ‘bubble’ occupied by too many overpaid and pampered footballers of today!” In the original chat with Andy Homer we discussed the innovative use of oxygen by the Albion players during half-time. “I still think that was cheating,” says Geoff. “The PNE players were on half an orange and a fag!”.
A.M. Best reaffirm Citadel Re rating H
aving enjoyed the privilege of a recent interview with group CEO Tony Weller at Citadel Risk’s Leadenhall Street, London office, it’s pleasing to report that shortly after that event Citadel Reinsurance Company Ltd (Bermuda) received renewal reaffirmation of its A- (stable) rating with A.M. Best. Tony says, "Once again Best have
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commented favourably on our strong capitalisation, strong operating performance, excellent liquidity, expanded risk management strategy, conservative investment strategy, niche and specialized markets and experienced management team. I see all of this as good signs for 2015 and beyond.” The Insurance People
interview with Tony Weller is scheduled for the next issue in November. And the thing I liked about it was that here is a firm operating in the heart of the City just along the road from the big underwriting centres, but which favours small to medium clients, and regional intermediaries. “There’s a definite need for that gap to be filled, especially for start-ups and
Tony Weller
others who won’t necessarily interest the bigger reinsurers,” says Tony.
in association with:
Healthcare NOT within “the domain of GI brokers”
Healthcare – are GI brokers losing out? he news that the chairman of the Association of Medical Insurers and Intermediaries Wayne Pontin had joined Cardiff-based independent healthcare insurance specialist Positively Healthcare as its new MD gave me an opportunity to gain an update on the thorny topic as to whether general insurance intermediaries ought to extend their reach into healthcare on behalf of their commercial clients… but more of that later. In his new role Mr Pontin aims to place Positive Healthcare firmly in the lead as an innovator in the provision of total health and wellbeing solutions. He believes it’s time for change and rationalisation. “We want to help businesses realise the true value in helping maintain the health and wellbeing of their employees, and gaining the real business benefits that can be gained from meeting that challenge.” Commenting on changing times, he explains, “Businesses used to offer healthcare insurance as a perk for senior management, along with a company credit card, and entertainment budget. But those days are long gone. There’s a role for employee wellbeing in every business today, though that varies considerably from company to company. “These days there’s no one hard-and-fast healthcare and wellbeing package that will fit all businesses. It’s up
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to specialist advisors like us to help businesses operating in increasingly competitive markets, and with budgets under stress to assess their needs and offer bespoke solutions.” o should general insurance intermediaries do more to become involved in the healthcare sector, if only to use the one-stop shop to prevent client predation? Mr Pontin feels not. “When the FSA decided to regulate the general insurance industry in January 2005 they were faced with a conundrum did private health insurance sit in financial services or in general insurance? As it was
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classified as ‘low risk’ they decided to lump it in with GI which, in my opinion, was a mistake. “In reality it sits in neither camp and should exist somewhere in the middle, but of course there wasn't a regulator for median insurance products. This may be one of the reasons there is reluctance amongst general insurance brokers to become involved in a market which at its worst can be extremely complicated, and at its best delivers low to very low revenue. “My views on this are self explanatory, after giving a lifetime of energy to this complex market. It’s a specialist market place which needs expert and
knowledgeable advisors; a true situation of not for the ‘Jack of all trades’ but for the ‘master of one’ scenario. “In my opinion, this will become more critical in the future as statutory regulation from the EU and duty of care implications make this form of insurance even more complicated. “The country cannot afford to provide healthcare through the public purse with an ageing population and a tsunami which is the obesity problem about to bankrupt the NHS. This form of insurance is for the specialist advisor and should not be the domain of general insurance brokers.”
Wayne Pontin FInstSMM Wayne Pontin’s career began with BUPA in the late 1970s, initially in business development, culminating in senior sales management. In 1984 he set up one of the first PMI intermediary companies in the UK – Pontin & Stein Medical Insurance Specialists – later to become one of the largest SME intermediaries in the UK and eventually acquired by Jelf Group in 2003. He oversaw the firm’s integration into Jelf Corporate Healthcare and then became managing director of the healthcare division of the Jelf Group. Two years later he took the role as business development director of Jelf Wellbeing Ltd. He has served on the Financial Ombudsman committee of the ABI as healthcare industry spokesman, and has won a number of awards. In November 2012 he became an executive director (group) of Jelf Group responsible for mergers & acquisitions, concentrating mainly on healthcare and employee benefits. He joined Positively Healthcare in July 2014. OCTOBER 2014 insurancepeople 9
market talk Jonathan Davey takes the high jump
Davey goes for the big jump onathan Davey, SSP man and Keychoice and corporate partners managing director, recently completed his first (and possibly last!) tandem parachute jump, to raise funds for his daughter Charlotte's trek
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No turning back! Monday 25 August 2014 was the dreaded day that I had agreed to make the parachute jump. To be honest, I wasn’t looking forward to it, but given the fantastic donations we’ve received… there was no turning back. It was a tandem jump, which allows the novice to experience freefall. At 14,500 feet above the clouds my nerves had not improved. The most disconcerting moment was probably hanging outside the aircraft attached to nothing other than a harness, feeling the wind in my face and not being able to hold on to anything. Visibility was poor (although not seeing the ground may have been a good thing!) and the wind was strong. Then, 3-2-1 and roll forward, tumbling into nothing. Freefall lasted 35 seconds (that’s a long time!). We reached peak velocity (131mph) at which point your face starts to turn inside out – well mine did! At the point the chute opens you slow from that speed to 10-15mph in a remarkably short time – enough to raise the voice pitch if you know what I mean. We emerged from the cloud layers to see the ground for the first time. I hadn’t fully appreciated that you actually ‘fly’ a parachute rather than just ‘dangle’. So now we could see where we were going. We navigated over some beautiful County Durham views heading towards the airfield and for me, safety. I got to fly it myself, which kept my mind off things, but then my instructor decided to put us into a ‘spin’ (which didn’t!). The adrenalin rush was huge and it was certainly an experience. Will I do it again? Perhaps, but probably only after hell has frozen over.
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across the Silk Route in Uzbekistan and Kyrgyzstan, helping to improve the lives of local villagers while testing the participants' mental and physical strength. This is his report on the jump:-. We raised lots of money for a charitable cause, although we missed our target (the site is still open if you have not yet had the chance to sponsor, and very many thanks to those of you that have, it is truly appreciated).
Would I recommend making a jump to you? Yes, I didn’t get the ‘wow’ factor that some of my fellow jumpers got, but it certainly got the heart rate going, and makes you appreciate being alive more than ever once you return to the ground! Apparently statistically you are more likely to be injured driving to the skydive centre than actually doing the jump, I think that goes to show you can prove anything with statistics - or you are a crap driver! The brief report from my daughter is that her trip (which this jump was in aid of) was a huge success and that hers was the first all-girl group ever to complete the trek. She’ll post a more detailed report soon once she overcomes her malnutrition – she looked quite underweight when I picked her up. Four weeks of her life has been hugely character building and the community and charity work they have done will last a long time for some very disadvantaged people. The funds helped build a new community centre for example, and the girls worked on plastering and painting, lifting and carrying. Jonathan Davey, Managing Director, Keychoice and Corporate Partners
Ageas commercial SME underwriter takes to the road
in association with:
Taking the underwriting pen on the road geas recently created a new Midlands role for Adam Farr as a regional commercial underwriter as part of its aim to get closer to regional SME brokers. Adam joined Ageas in 2010 as a commercial underwriter and previously worked at Quinn Insurance after graduating from University of Manchester, with a BA in philosophy & politics. “In 2008 while at Quinn, I was lucky enough to take a six-month sabbatical and travelled extensively,” he tells me. “The most memorable highlights were diving on the Great Barrier Reef and walking the Great Wall of China.” The idea of boosting ‘on the road’ support for brokers at a local level is by no means new, but the mega-leap has of course been the combination of underwriting authority with business development. During my own time in this role the two doctrines were never allowed to mix, despite my own extensive underwriting background. The departmental straightjackets of the time saw to that! I asked Adam whether his own previous underwriting role was largely desk-bound? And if so, how did he feel about the ‘on the road’ aspects required in providing hands-on business development assistance. “My previous role at Quinn was desk-based but
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Adam Farr
at Ageas, otherwise deskbound commercial underwriters are nevertheless actively encouraged to visit brokers to help build and cement great trading relationships. This philosophy offers many opportunities to meet brokers, to negotiate faceto-face, and also to understand a little more about how brokers work and the challenges they face. And this helped me enormously, adding the confidence to take on the challenges of a new role set loose from the office, on the road, and working with brokers to develop business.” So how did Adam find the transition to his new task? “My previous role actually concentrated on other areas of the country, so the Midlands SME brokers are only now getting to know me. However my experience from previous broker development visits, due diligence exercises, system demonstrations, and also shadowing our existing
regional underwriters has certainly helped me make the transition.” Aha! But what about the traditional conflict that can arise between underwriting and pricing versus the need for business development? “As I’ve built my career in new business underwriting, to some extent I’ve had to be development minded, whilst ensuring that
individual risks were accurately priced and the accounts remained profitable,” says Adam. “This new role allows me to work very closely with local brokers, and the relationship that follows from this ensures that both parties work for the mutual ambition of business growth and new business acquisition, as well as underwriting profitability.”
A typical ‘day in the life’ of an SME regional underwriter A typical start each day for me is to check, prioritise, and deal with emails. Broker visits tend to be morning calls, so afternoons are spent looking at new business quotes and other queries that come in during visits. I work closely with our broker account executives to get a good understanding of local brokers’ needs. Broker meetings usually take place in their offices. It’s good to meet them on-site as that helps in a better understanding of their business model and what makes them tick. In a typical visit I go through any new business applications; answer any queries the broker may have; and talk with them to gain a solid understanding of their business, so that I can offer them the best support and service possible, and any product advice. I also discuss their prospect business lists, and discuss which ones we could work together on to offer competitive quotes and win the business. As I’m currently relatively new to the role, it’s a little more about meet-and-greets and getting to know the brokers on my patch. This will be followed by building relationships and ensuring I manage their expectations. And, most importantly, to do what I say I am going to do, to build trust and a great working relationship.” Adam Farr, Commercial Regional Underwriter, Ageas OCTOBER 2014 insurancepeople 11
market talk
Quoteline Direct – specialist provider for Van and Home Kew Insurance accept ice challenge
in association with:
Closing the door to the poaching threat! he non-standard insurance specialist! If there is such a thing as a super-hero charging to the rescue in the world of the insurance intermediary market, then the specialist wholesaler surely fits that challenge. A somewhat fanciful image of course, but any broker in distress on being confronted with a risk that falls outside the everyday norm – which the normal insurer panel cannot cater for – inevitably faces not only losing that risk, but if from an existing customer, the prospect of an emptyhanded client being enticed elsewhere. I discussed this topic with Paul Daly, marketing manager for the group marketing and internet development unit at
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wholesale broker Quoteline Direct, part of the Wilsons Insurance Group based in Manchester. “’Don't let your customers insure elsewhere!’ is one of our pleas to brokers,” says Paul. “Every time a broker is unable to place cover for an important client, there’s a good chance that the intermediary who finds a home for that risk will poach all the other business. As a non-standard specialist wholesaler, part of our service to the broker is to help them close the door to that threat.” The particular focus of our conversation was the van and the home facilities that Quoteline Direct provide. “There was a time,” explains Paul, “when the words ‘non-standard’ were mainly heard in the private
All in a good cause T here’s a recent deluge of overkill in the media featuring buckets of iced water, so Market talk will content itself with just one report – and deliberately use a photo of the victim before she got her hair wet. A fruitful result for the Motor Neuron Disease Association was provided by Kirsten JonesWilliams, operations & marketing manager at Richmond-based Kew Insurance, when she nominated local MP for Richmond Park, Zac Goldsmith for the
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Kirsten Jones-Williams
challenge. “As the result of his donation, Kew’s target donation to this worthy charity has now doubled,” says Kirsten.
car market, with the mainstream market steering clear of risks in the van sector with say, a distressed claims history; previous terms or declinature; criminal convictions; and bankruptcy. “But home cover is also nowadays just as volatile as any. Subsidence issues; underpinned properties; flood risks, both potential and previous histories; home working, with unusual or high risk occupations mixing with the more traditional sectors such as let property, holiday homes, weekend/weekday homes; non-standard construction; old or listed properties; unoccupancy, building work; individual and small blocks of flats, and B&Bs. “A topical example of where using a specialist provider can prove very useful is for flood-related risks. Quoteline Direct is a specialist in that every single risk is individually underwritten, in contrast to the majority of the market still using the ‘computer says ‘No!’ response, and only just getting closer than postcode level. (How true. See Brian Susman’s comment on page 4 – Ed) “We delve into actual risk from a flood point of view, looking at a particular house, using all the available online and other material to ascertain the risk for that particular property, rather
Paul Daly
than just taking a postcode which may contain hundreds, or even thousands of properties. “Local knowledge is always useful, and although we’re dealing at a national level, by using the best and most up-to-date sources we aim to give that kind of local attention. “We aim to quote on all risks submitted to us. Some policies will be available to reserve online immediately, and we promise a quick turn around on more bespoke cases. Brokers continue to deal with their client and remain free to sell their own add-on products.” I asked Paul about nonstandard risks. Specifically about the annoying dodge of quoting, but with the exclusion of the very perils that are needed to be insured against in the first place! “Non-standard risks are not a problem. To repeat, we will aim to quote on everything we receive, and will not look to exclude perils as an easy way out, like some others do!”.
Visit www.quotelinedirectwholesale.co.uk
WE'VE WALKED IN YOUR And, as a result, Zenith Insurance is growing its portfolio. It now has a wider footprint, offering a non-standard product to give you more choice and , with the ultimate protection via Insurer Hosted Rating. In a world of standardisation, we’re proud Zenith Distinction – a distinctly different product, from
Markerstudy House, 45 Westerham Road, Bessels Green, Sevenoaks, Kent TN13 2QB
www.markerstudy.com
Telephone: 0844 324 6900
market talk Those irritating TV ads again The Consultant Editor meets a cricket legend
Readers write ?” “Do Direct Line know what they are doing Hi! does. I don’t work in insurance, but my Dad peek quiet a take I ng, looki not When he’s e at his copy of Insurance People – I ignor his other mags because they look too boring. So I reckon that you’re the about magazine I should email to tell you other an odd insurance TV advert I saw the day. and Direct Line have got a new ad campaign it, they've got the actor Harvey Keitel in ance. insur their out sort e peopl helping What's weird is that he's playing his a character from Pulp Fiction in it. (For turns bit of background, when Winston Wolf an up in the movie, he helps to clean up used accidental murder scene and is clearly to doing this sort of thing).
Meeting Gatters at The Tavern ust when Market talk ‘non-cricketing’ readers thought it’s now going to be safe to open these pages for a few months now that stumps have finally been pulled on “the summer game” for another year, this photo and message floats across from the Susman side of the virtual editorial desk.
J
Me and Gatt
I'm not sure Direct Line have really thought this through! When insurance e companies are trying to convince peopl the this is y, reall guys good re they' that ads?! sort of character they want in their Just seems a bit bizarre... about But I see lots of people are talking ! it on Twitter so I guess that's the point love Judy P
Editor’s comment: Good point, Judy. Insurance TV ads that irritate the viewer are essential these days to drum up the aimed-for attention and social media chatter. The big insurance firms are getting quite good at it! But let’s give Judy the last word in reply… I don't think irritating ads always work - I deliberately didn't use Go compare cos that singing man is so annoying ! Although I notice he's gone now. (But at the same time I know their name so the ad has worked. Damn!) I guess Direct Line have done well to do something a bit different. I read that they hired Saatchi & Saatchi to do the ad campaign so it must've cost them a fair bit. Judy P P.S. Luv the portrait draw ings! 14 insurancepeople OCTOBER 2014
When my Celebs cricketers held their final celebratory dinner back in April, they were kind enough to get together and make a joint donation to the cricket charity Chance to Shine, as a result of which I was given the chance of a one-to-one lunch at the Lord's Tavern with a cricketing legend. So it was that I found myself at the home of cricket with no less a cricketing legend than Mike Gatting, enjoying two hours-plus of cricket chat over lunch. Not only an ex-England captain for 23 test matches, but also current president of the MCC, and managing director for cricket partnerships at the ECB, he was as knowledgeable on all matters cricket as you would expect. But I was delighted to find that, in addition, he was a most entertaining and affable lunchtime companion. We sorted out the problems of the England team, discussed the state of English cricket generally, and covered some of the entirely unreportable aspects of international cricket touring. It all passed too quickly for my liking, but suffice to say that it was one of those very special occasions to store away in the memory bank for good and all. Brian Susman
Driverless cars will stonewall the desire for travel independence
in association with:
Familiar software from a new name
How will insurance handle driverless cars? he future impact of ‘driverless’ cars is a hot topic of the moment, not only from the viewpoint of motor insurance but also the personal angle. Particularly for those insurance people for whom car driving is part of their living, for whom the car is a tool of trade – whether owned by themselves or their employer. Now, almost without exception in my experience, the people who choose to go out on the road as part of their career do so because they enjoy driving! So what’s the view of the potential zombie-like automation of that pleasure? The opportunity arose to chew this over with Gary Humphreys, group underwriting director at Markerstudy. “Driverless cars
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are likely to be popular in congested cities for economic and environmental reasons, but one of the fundamental reasons the motor manufacturing industry is so diverse and exciting is because it’s fuelled by the basic human desire for independence and travel. I’d question whether the idea of automated driving will be accepted by many of those who enjoy driving themselves from A to B.” That sums up the personal view voiced by most of the people I’ve spoken to, but what’s Gary’s stance on the insurance-related angles? “Significant legislative changes will be required to cater for the new technology. There’s firstly the issue of liability - we may see cars being insured rather than the
driver, but this isn’t a new idea – just look at ‘any driver’ policies, and you’ll see it’s the vehicle that’s covered. “We also need to ask how those under the influence of alcohol or sleeping ‘at the wheel’ would be treated in a driverless car in the event of an accident? Being capable of being ‘in control’ of a vehicle is a basic requirement of road safety, and this is unlikely to change. “Situations involving a driverless car and a standard car would still be resolved through the driver’s insurance in each case. However, I can envisage a scenario where a driverless car owner may take issue with the manufacturer in the event of an avoidable incident. “It's too early to say whether driverless cars of the
Gary Humphreys
future will be cheaper to insure, as we have no hard evidence to suggest the technology is absolutely foolproof. As long as humans are in the driving seat, there is always risk, regardless of whether they take the wheel or not. So, we may be enroute to a driverless future, but insurance is likely to still be very much a part of the journey.”
New applications from Applied Systems first met Jeff Purdy, senior vice president of international operations at software provider Applied Systems in July in Toronto, and we met again in London the following month. Jeff is responsible for Applied's Canadian and UK operations. My interview with Jeff appears this month on page 20. Founded in 1983, Applied now have over 1,100 employees producing broker market management systems and data exchange facilities. Applied TAM was previously distributed by Insurecom, which Applied Systems acquired in August 2013 to increase investment and product introduction. Jeff tells me that the cloud-based Applied TAM, as it is now known, is their most widely used broker management system. The new mobile application Applied MobileProducer provides account executives with prospect and client insurance information. “When and where they need it,” adds Jeff. “As the insurance industry continues to become a mobile marketplace, brokers can use mobile
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technologies to establish new accounts, and remotely access information from their management system, providing flexibility and efficiency when servicing clients and greater productivity away from the office.” On the business intelligence side, Jeff says, “Brokers can obtain actionable insights to build more profitable client relationships and improve internal operations to drive business growth using Applied TAM UK. This helps them analyse and extend their visibility into their clients, prospects, internal operations, and insurer relationships.” Jeff Purdy joined the Canada operation in 1989, becoming president in 1993. In 2002 he relocated to Applied's US headquarters as vice president of the insurer division then operated by the company. In 2004 he took charge of primary sales, and returned to the Canadian marketplace as senior vice president and general manager of Applied Systems Canada in 2012, and assumed his UK responsibility on the Insurecom takeover.
OCTOBER 2014 insurancepeople 15
interview
Duncan Pritchard MANAGING DIRECTOR COMMERCIAL EXPRESS
A digital service – with a human face Managing general agency Commercial Express has enjoyed unprecedented growth over the last year. Part of a new customer service driven approach, it’s been brought to life in a complete overhaul of the business, which involves a new brand identity, a new website, and a new way of working. The Editor caught up with MD Duncan Pritchard to find out more…. AN: How did the decision to rebrand come about? DP: Commercial Express is growing and we need to ensure our brand keeps up with our business. We want to offer the best solutions and service possible so we’re the smart choice and first choice for our customers. That’s why we embarked on a 12-month journey to really focus on the needs of our customers. We asked our agents about the support they needed and as a result we’ve improved our service at every touch point of our business. Our new brand is about repositioning us in the MGA market, to make us really stand out from the pack. AN: What does the rebrand do for the business? 16 insurancepeople OCTOBER 2014
DP: It brings an entirely new way of doing things. Our brand starts with our staff and our culture. The changes we’ve made internally have improved our offering and service in a really tangible way. The main shift has been a developed structure and system dedicated to being more helpful to our agents, and working in partnership with them. This is what our new brand stands for and this is our new approach. The aim is to show the new human side to our brand. We are insurance partners who care about the service we provide. We offer a wide and flexible product range with helpful and competitive quotations. We are digital first, but we now have human support whenever and wherever needed. We still provide cover in an instant, and we still provide the same
benefits, but now we offer the extra support that our competitors don’t. We want to grow with our agents and make their business better. We’re imbedding our new values in everything we do, which means we’re approachable and we listen to our brokers when they have an issue. Online and in person, we strive for our products and services to be easy-to-use and as helpful as possible. We aim to set a new benchmark for service, in order to become one of the most respected brands in the industry, and known and trusted by the end consumer. We’re working hard to become known as the best and to become a household name.
Making change happen These are some of the ways Commercial Express have implemented change: Business Development Managers: We have a team of dedicated regional BDMs responsible for visiting our agents, at a time that suits them, to support them as a partner, by sharing resources, news and insights, and finding out about their business and the kind of support they’re specifically looking for.
A tangible “improvement in our offering and service
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AN: What have you changed internally to bring this about? DP: We've invested in staff training and have dedicated teams that specialise in specific areas of insurance to provide a more tailored customer experience. We are working more closely with our agents to develop that personal relationship and provide the support they need. AN: Do you think the new brand will attract new agents? DP: I’m sure it will. Our main focus is to concentrate on the agents we have, particularly those who have supported us over the years. We’re continuing to build on these personal relationships, and by obtaining increased buying power we can now offer our agents greater flexibility. Along with these improvements and what we offer, we will certainly attract a lot of new business. The look and feel of what we have created with our brand agency has been really positively received and our agents appreciate our message. We have now created a really clear position for ourselves in the market. Our brand isn’t just our name and our logo. It’s our attitude, our reputation, and a guiding beacon for everything we stand for. And we’re all exceptionally proud of it.
This service has evolved; we’ve recruited more BDMs, to cover more regions, and to focus on ways we can improve our service. This means working with each agent in a way that suits them, and acting as the face-to-face partner that we pride ourselves on being. Underwriters who spend more time on the phone: Our underwriters know that each case our agents call about is different, and may require more time; a common sense approach; and a little flexibility. That’s why we encourage our underwriters to spend time where necessary to work with the agent to get the best solution. Increased training: Our staff are trained to deliver the best customer service possible, and we’ll continue to train them as the service evolves. We’re also continuing to grow our team and have elected dedicated product champions to strengthen our expertise. Dedicated teams: We now have dedicated teams working on each insurance category, which means customer enquiries are answered correctly and without delay. We also have champions within each team who concentrate on certain products, offering a real specialism within that scheme. Improved working environment: We have moved to new larger offices to cope with growth and give more space to the work we do. Our new culture promotes an improved working environment, which includes more meeting rooms, and more space for break out areas. We’ve also installed screens showing the latest sales stats and installed a football table and dartboard to make things more fun. Our new home is designed to help get the best out of our staff, which in turn helps our agents. Celebrating achievements: We reward good work when it matters. We’ve introduced a new ‘Employee of the Month’ and ‘Team of the Quarter’ scheme, and we’ll be having an awards ceremony at our Christmas party this year. Quality not quantity: We are asking our agents how they want to receive our information, and are focusing on sending less frequent, and more tailored pieces. We are reducing our marketing and concentrating only on what the agents want. On our website we have also cut down the information around our products, so that when an agent or prospective agent clicks on the page, they just see the key information, which saves them time. We can then give more information if they request it, but being helpful is about being clear and concise and thinking about what works best for the agent. Above all it’s about listening and responding accordingly: Our new and improved brand and business direction is based on both customer and employee feedback, and we’ll continue to listen to find further ways to improve. We actively listen to our agents’ suggestions and make positive changes based on what they say and what they ask for. Duncan Pritchard
OCTOBER 2014 insurancepeople 17
add-ons customer service
David Haynes HEAD OF UNDERWRITING & MARKETING ARAG
Developing new ways to highlight the value of add-ons
Add–ons give brokers the edge thanks to the FCA When the FCA released its provisional - and generally negative - findings on the add-on insurance market back in March, it didn't look too bright for anyone involved in providing such products. Now the final report has been published, ARAG's David Haynes believes the proposed 'sunlight remedy' leaves a lot to be desired, but that the dark cloud may yet have a silver lining for brokers. But the answer lies in developing new ways of highlighting the value of add-ons and creating a fair model applicable across the insurance industry as a whole he FCA believes that add-ons are poor value, and that competition is not working for consumers. Its final report restates this view, but recognises that not all add-ons are the same, and that a single remedy may not work for all.
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In fact, the key recommendation of making claims ratios the definitive guide to value, was treated with some derision by respondents to the provisional report in March, as it failed to take into account addedvalue services and feel-good factors which do not show up in claims figures.
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The true worth of
added-value services never shows up in claims figures
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Looking on the bright side of this dim view of add-ons however, brokers have new opportunities to take the initiative in providing appropriate cover. It comes down as usual to explaining the true benefits of fuller cover against those who sell primarily on price. The ban on selling add-ons by 18 insurancepeople OCTOBER 2014
opting-out, for example, helps ensure that consumers make a positive effort to investigate what they are buying by deliberately opting-in. Just by removing pre-ticked boxes, consumers make a more informed choice. This has particular relevance where insurances have previously been sold by non-specialists. By removing the point-of-sale advantage for garages selling GAP insurance, or travel agents selling holiday cover, brokers now have the edge in developing strategies to fill the void. When looking at add-ons in general it’s important to recognise that they often provide a range of services that are in addition to the insured benefits, such as free legal helplines and digital legal documents services with legal protection. These differentiate the products and providers, while ever increasing usage clearly shows their value. They do not feature in the claims ratio and may have to be withdrawn if claims ratios become the sole determinant of 'value'. t’s up to add-on providers and their retailing partners to find genuinely useful measures to properly guide
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consumers towards making an informed choice. There’s a serious danger that consumers will lose the convenience and protection of add-on insurance, or could even be steered towards expensive standalone products which will escape the requirement to disclose claims ratios. So while the final report does not provide information about the FCA’s remedy work – which is ongoing – and focuses only on the feedback received, it does suggest FCA now recognises the value that some add-ons can provide. The FCA clarifies that it will apply cross-market remedies only where findings suggest that markets may be affected more widely, and that remedies must be proportionate, and wider market impacts and unintended consequences must be considered in determining the design of measures to be implemented. If consumers are to be provided with meaningful information that does not have unintended negative effects, it’s vital that new ways of demonstrating the effectiveness and value of add-ons are developed, with the intention of creating a fair model that can apply more widely across the insurance industry.
data
Technology and data risk management
Loss of data can be crippling, but Simon Calderbank has some answers he focus for risk management is slowly beginning to change and with it, the approach to buying insurance. Historically insurance has always been focussed on the tangible items - buildings, contents, vehicles, people etc. Whilst these remain key areas, the scope of risk management is expanding into the intangible – namely data. Companies are realising that they can work without desks and computers if they simply hire a managed office spot. What they can’t trade without though is their data. Loss of data can be crippling to a company and with the increased use in cloud computing and third party data centres, this data is at more risk than it may have been when kept ‘in-house’. Couple this with the expansion of VoIP telephone systems and the way in which some businesses are run means that the internet and access to their data is
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critical in the business being able to trade and survive. For this reason ‘cyber’ remains to be the buzz word of the moment – without actually meaning anything! As mentioned above, data is the foundation of many companies. Take it away and they are just offices with desks and chairs. However, whilst this risk is being considered more, many clients still go down the thought process that ‘it won’t happen to me’ and ‘it only happens to the big boys’. This is where they are wrong. Cyber criminals are cottoning on to the fact that it’s easier to attack ten companies who trade with ‘the big boys’ and gain access that way rather than directly target the ‘big boys themselves who are spending much more on data security. Insurance is one way in which companies are looking to protect themselves further, but without already having protection in place,
Simon Calderbank SENIOR UNDERWRITER – IT HCC INTERNATIONAL
underwriters will not accept the risk. The process of assessing the risks that companies face should be a continual process. It should not be a case of writing a document one year and reviewing in 12 or 18 months’ time. Risk management needs to be an on-going process that is embedded into the culture of the company. The policies in place should be tested regularly and updated accordingly, particularly with regard to ‘cyber’ risks and the speed in which the risks change. It’s far easier to plan for events before they happen rather than trying to do things once the event has happened, and running around not really knowing what is to be done by whom or when.
Your Helpful Insurance Partner. At Commercial Express we have a new brand, a new website, and a new way of working dedicated to you.
commercialexpress.co.uk OCTOBER 2014 insurancepeople 19
interview
Brokers must provide Jeff Purdy “ their customers with truly SENIOR VICE PRESIDENT INTERNATIONAL OPERATIONS APPLIED SYSTEMS
amazing experiences
”
Take Five Meeting the need for multi-channel engagement In conversation with the Editor, Jeff Purdy puts forward his ideas as to how the UK broker fraternity can keep pace with the changing expectations of its customers, while simultaneously pushing through increasingly efficient processes AN: Insurance brokers in the UK may have originally been somewhat tardy collectively in taking to new technology, but have since caught up fast. Even so, the latest breathtaking acceleration of digital technology into society and the global economy is hard to keep up with. Do you find that it has strung out the field, leaving some brokers further advanced than others? JP: There’s no doubt the physical and digital worlds have begun to blur. That’s triggered every industry – not just insurance - to redefine their technology strategies to maintain and grow business profitability. Technology is improving and streamlining internal operations driving efficiency, agility, and accuracy of information. It’s evolving client engagement by creating expectations for constant communication, and client servicing through multiple channels. AN: So what should brokers be doing to keep pace? JP: It’s essential that they develop differentiated offerings to remain competitive in today’s consolidating marketplace. Evolving consumer demands are shifting engagement expectations, and demanding more flexible, convenient access. Today’s 20 insurancepeople OCTOBER 2014
insurance consumer requires the ability to connect with whomever, whenever, and however is most convenient for them. As competition continues to grow, and disruptive forces enter the insurance marketplace, there’s an increasing need for UK brokers to no longer simply service their clients’ needs – they’ve got to provide truly amazing experiences - whether that’s online, on the phone, or in person. Today’s insurance consumer compares engagement experiences between various industries - and expects consistency. For example, if a bank can do something, so should an insurance company. If a travel agent achieves, then so should a broker. AN: So how might brokers best adapt to changing consumer expectations? JP: Brokers must interact with clients using multiple communication methods, including phone, mobile devices, highly functional websites, and in person. For prospective clients, multi-channel engagement requires brokerages to make the consumer's buying experience consistent, convenient, and personalised at every stage of the process, and to offer continued service.
AN: So what are the best multichannel client engagement strategies? JP: A multichannel client engagement approach works best if it’s integrated into the overall business strategy. Brokers need to define a brand story to build trust and capture attention among insurance consumers. Brokers must maintain a hybrid approach to client engagement, balancing digital and personal interactions. Clients will then have convenient access to information, but also maintain their relationship with their broker as a trusted advisor, which is critical for long-term success as the insurance marketplace evolves. AN: It seems the tremendous strides of today’s technology is driving all before it? JP: That’s right. Alongside shifting consumer expectation, the convergence with digital technology is driving innovation at every level of the insurance industry. And brokers need to harness the latest technologies to simultaneously meet the multichannel needs of their customers, while acquiring more efficient internal operations.
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Brokers can redefine their technology
strategies to promote more profitability
AN: And what of the individual developments? The cloud for example? JP: By harnessing cloud computing technologies, brokers find themselves able to devote more time to insurance, and less to IT management. The cloud ensures maximum accessibility to client information and business operations in a secure and flexible online environment. Our most widely used brokerage management system in the industry, and our other technologies that support the back and front office are all accessed through the cloud to support greater productivity, reporting, self-service and mobility tools to drive business growth for brokers.
management systems, but most have lacked the knowledge and software tools needed to capitalise on it.
collaboration with the broker community to continuously enhance the benefits of technology and spur further innovation in the industry.
AN: And finally, how do you see the future as we move onward?
The future of insurance will be shaped by technology advancements, like the cloud, mobile, and data analytics, and balanced by the trusted advisor role independent brokers provide to drive business growth.
JP: Technology adoption in the insurance industry will continue to progress, but there remains the opportunity for continued
Multichannel client engagement strategies l
determine an overall information strategy – the information to make available to clients, and the best ways it can be accessed
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manage the information - create a central database to capture and store client information and products. Managing all client data centrally ensures a single digital file for each client. It creates the foundation for communicating with clients with more comprehensive and accurate information. It also provides greater visibility into client needs and opportunities to provide new insurance products and service
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decide how to share the information, and determine how staff and clients will access this data. Creating easy-to-use processes for accessing and sharing data both internally and with clients across all mobile, online and traditional channels allows a broker to capitalise on this information
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communicate consistently and conveniently. After determining the best communication channels for each client, operational details are needed to plan for the ongoing push-and-pull of client data between the central database and every channel of access
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For many brokers the company website will become a primary service channel. As such, the website should be easy to use, interactive, and rich with product information. It should also include client access to their account information to create more opportunities for engagement. Website experiences should be adapted and consistent across all devices
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monitor and measure client engagement. Multi-channel client engagement is like any other strategic business initiative - it requires continuous monitoring of results. By measuring the effectiveness of a client engagement strategy, and continuously adapting it to the changing market, a brokerage can meet and exceed the wants and needs of clients and insurers alike Jeff Purdy
AN: And mobile communication? JP: Mobile has become the largest platform known to mankind, and is vital for insurance businesses. Mobile applications increase operational efficiencies for brokers by providing easy access to view accounts, activities, contacts and insurance policy information. They also provide communication and navigational tools to optimise business operations and efficiencies. AN: What about business intelligence? JP: Digital data continues to grow exponentially, creating an abundant source of untapped information for businesses to analyse and capitalise on for growth. Strategies on how to organise, evaluate, and derive usable insights from this data are constantly progressing to obtain optimal business intelligence. Many independent brokerages have understood the potential to leverage the customer data stored in their
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OCTOBER 2014 insurancepeople 21
customer service
Mandi Woolven CII COUNCIL MEMBER INSURANCE INSTITUTE OF BRIGHTON
Brighton’s CII members ‘flushed with success’
The good citizens of Brighton enjoying the evening sunshine earlier this summer near Old Steine Fountain were bewildered when a manhole suddenly disgorged a one-by-one stream of over 20 local insurance people having just traversed a successful quarter-mile sewer hike underground!
When it comes to adventurous social pursuits, you have to hand it to the members of the Insurance Institute of Brighton. Mandi Woolven explains the attraction of a recent subterranean visit under the streets of Brighton he sewers under the streets of Brighton remain the only place in Britain where members of the public can tour a working sewer system – not a museum – in groups of up to 25. And there’s a six-month waiting list! Armed with the appropriate passes, hard hats, protective latex gloves, escorted by experienced engineers, and a thorough safety briefing, our intrepid party commenced their tour under the Palace Pier (now renamed the Brighton Pier). Members were taken into a labyrinth of tunnels via a heavy metal door, whitewashed corridors, and up-and-down metal ladders to follow the route of the day’s waste and storm-water, which flows to a treatment plant to the east of the city. These unique award-winning sewer tours have been revealing their Victorian secrets to visitors for over 50 years. They run from May until September and are a popular attraction with visitors from across the world. Our tour took us through 366m of the total 48km of sewers. We were encouraged to look closely at some of the seven million beautiful fired and glazed Victorian bricks, and to learn the fabled reason why Brighton’s beaches have no sand – the Victorian bricklayers removed
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22 insurancepeople OCTOBER 2014
hundreds of tonnes of beach to make pug to cement the bricks. Indeed, sea shells can clearly be seen encrusted into the mortar, along with the tide lines and barnacles high up on the walls, a legacy of when the sea would enter the system twice a day to help flush the water through. The ingenuity of the Victorian engineers’ design and build is all the more incredible since they had no hydraulic diggers or power tools. They relied solely on manual labour and built a sewer system that still serves Brighton today. s the population of Brighton increased, so there were occasions when the Victorian system overflowed, and waste water sometimes found its way into the sea. To combat this, Southern Water spent £300m building new treatment works at Peacehaven, and Europe’s largest storm-water storage tunnel. It is three miles long and 20ft in diameter, and lies 100ft directly below the beach so you would never know it is there! So now, instead of any overflow being discharged directly into the sea, it drops 100ft down into the tanks and waits until it can be safely pumped back into the sewers. [Known in the trade as “getting your own back!” Oops! Sorry about that – Ed]
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CII member and subterranean explorer Laren Doe emerges into the sunlight
Today, the Victorian sewers are still in operation, with the old tunnel (which runs from Hove to Portobello) serving as an emergency relief valve during heavy rain. This had been severely tested two days before our visit, following what was described by the tour guides as “a one in 75 years storm”. We were standing in the old (emergency relief) tunnel, so had we been there during the heavy storm, we would have been swept through the sewers and dropped 100ft down into the holding tanks with considerable force! The first tour proved such a success that several members of the first group decided to return for the second tour. That enthusiasm was accordingly summed up by one of our colleagues - "We were flushed with success!"
Who says insurance is boring?
Part Three
The late Malcolm Forbes-Wilson penned his remarkable insurance biography just before he passed away after a long illness in April 2014. In this third instalment, he discovers how a moment’s inspiration can create a solution for a troubled client joined the board of Crawley Warren, where I was responsible for developing their non-marine account beyond the personal accident and contingency classes, for which they were the market’s leading broker. After a major coup placing a medical malpractice facility 100% with Lloyd’s underwriters (used by all Lloyd’s brokers) I had an opportunity to take on the med mal coverage for the Health Department of Victoria to insure all the public hospitals in that Australian state. I rose to the challenge, and after a couple of years it became clear that conventional insurance was not going to continue to do the job. Some unconventional risk transfer arrangements would need to be found. It was literally while I
I
was in transit from London to Melbourne for a crisis meeting to discuss alternates, that I read an advertisement in an insurance magazine (alas no Insurance People in that era – Ed). Inspiration struck, and by the time the plane had landed I had a plan! Claims had started to burgeon and the root cause was inadequate testing of blood given to transfusion patients which led to many cases of Hep C (AIDS). Claims brought against the Health Department of Victoria were multiplying dramatically. My untested proposal was accepted and I returned to London
Malcolm Forbes-Wilson to pursue my idea and found Centre Re, part of the Zurich Group, willing to take on the risk, which was beyond their previous risk transfer programmes in the US and UK. The scheme was a great success and subsequently led to Centre Re opening an office in Australia. And… a very contented client. Malcolm Forbes-Wilson (1946-2014) written in January 2014
To be continued
Next month: Malcolm adds another string to his bow – in the space race – and gets asked to insure Howard Hughes’ Spruce Goose!
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OCTOBER 2014 insurancepeople 23
data transfer
Ian Mclean HEAD OF IT STERLING INSURANCE GROUP
Large migrations don’t have to be a nightmare
Challenges of large data migration For the sake of argument, let’s assume that IT is not the majority of insurance brokers’ favourite topic. They are very focused on using it to enhance their business, but have no idea how it works – and prefer to keep things that way. The most fearsome aspect of IT from the user viewpoint is when the words ‘new system’ appear on the horizon. And there’s a perception that brokers are tied to their current systems, in the belief that the nightmare of moving data elsewhere is far too complex, particularly on the large scale. Independent UK insurer Sterling, specialising in niche personal lines, commercial, and protection products, has plenty of experience in this arena. Sterling Technologies’ Ian Mclean is a man who has successfully carried out data migration many times, and here talks with the Editor about some of the pitfalls brokers may want to avoid AN: Ian, what are you credentials and experience handling data migration from one system to another? IM: Sterling’s administration company has been very successful in winning new accounts over the last seven years and I’ve been involved in many migrations ranging from small to large, some for major brokers and banks. The largest migration involved five million accounts, 10,000 live claims, and over five billion data items. I’ve been involved with all aspects from the starting point of the initial migration, to the planning stages, and right the way through to the live migration, transfers, and post migration support. AN: How do you start a major migration? IM: It’s vital to draw out the key areas and the set-up (work streams) that are involved. It’s also important to understand who is responsible for the various areas and the data being moved. The aim is for a smooth migration. A high level migration plan can highlight the potential risks involved, while a review ensures everyone involved understands what’s happening, and roles and responsibilities. 24 insurancepeople OCTOBER 2014
At least one full ‘dry run’ should take place before the actual migration to minimise the potential risks of data being missed along the way, or any other obstacles. AN: What are the main risks? IM: Security of data in transit is most important. Usually sensitive, it should all be encrypted. Equally important are the risks relative to the quality of the data being migrated, and the risk of data corruption during extraction or loading. It’s vital that the right people are involved who can make decisions throughout the project, and especially so during the migration window when decision makers need to be on hand. External dependencies are another major risk. There may be a number of these including different data feeds (MI, system feeds, and operations feeds). All need thorough testing prior to the migration. Small changes (such as a change to the carriage return character used across systems) could result in operational downtime and knock-on to downstream processes. AN:: So what’s your best advice to someone planning a data migration? IM: Build strong relationships with the project teams, and ensure you get the data early so you know exactly what needs to be done. Make sure you have good people that know exactly how the data needs to be used. Ensure you have a very clear and realistic plan from the outset, and spend time reviewing what could go wrong, and how you would cope in those scenarios. Data security is paramount so make sure you know how you intend to transport the data, whether it be physically or via secure data transmission. Assume the data to be migrated won’t be perfect, and allow for unexpected data and data cleansing in your plans. AN: And finally, what’s the worst thing that’s ever happened to you? IM: A very unhappy family during 2011 where the timing of the data migration coincided with the festive period. The team were busy migrating data as their families were munching on turkey. That timing was unavoidable because the Christmas holidays provided the perfect window of opportunity for that particular migration.
insurancepeople
News
Ageas adds PA benefits A
iming to help brokers attract more business from the 4.7 million small businesses in the UK, Ageas has enhanced benefits and cover under its personal accident policy. There is a minimum premium of £250 p.a., and cover enhancements include adapted workplace, catastrophe, coma benefit, as well as commuting expenses for injured employees and hospital visit travel expenses for relatives. In addition, Ageas has improved the level of cover for existing benefits. Funeral expenses have been increased by £5,000
to £10,000; medical expenses are now covered up to £25,000, whilst retraining expenses cover has increased from £5,000 to £25,000. The company offers brokers an online quote facility via its Ageas Optima extranet as well as a PA Toolkit to support sales. It is urging brokers to promote the benefits of PA cover to protect a business’s most important assets – its people - in the same way they would protect their plant and machinery. Neil Thunström, PA and special risks underwriting manager, comments: “99%
of the UK’s 4.9 million businesses in the UK are SMEs and 4.7 million are micro businesses employing up to 9 people. This is a massive opportunity for brokers as these young businesses need their leaders to drive them forwards. If a person crucial to the business is absent as a result of accident or ill health, it could leave the business vulnerable. PA cover offers small businesses the security they need and Ageas is committed to helping brokers offer their clients the best value and cover.”
JLT Specialty opens new Birmingham office LT Specialty recently celebrated the opening of its Birmingham office with an 80s themed party, the opening ceremony being performed by Julie Walters. More than 150 clients and professionals attended the opening in Church Street, Brimingham. Wendy Ashley, head of corporate risk practice, Birmingham, says, “This move will allow all of our employees to work together collaboratively in one place, on one floor and demonstrates the unique culture that we have at JLT”
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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
OCTOBER 2014 insurancepeople 25
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Carrot Insurance expands underwriting panel C
arrot Insurance has announced that Ageas has joined the motor underwriting panel for its incentive-based telematics product, originally launched in 2012. The panel already includes Markerstudy and Zurich. Carrot’s telematics unit, the Insurance Box or i-box designed and supplied by RiskTrak,
creates a bespoke driver feedback platform offering insight for the driver into their personal driving technique. The unit also links in with Dashboard, giving motorists access to their own individual Driving Style score, which assesses various aspects of driving such as acceleration, braking and
the number of journeys made. Drivers can also earn cash rewards, which are calculated based on their quarterly Driving Style score. Adam Clarke, underwriting director, Ageas, says, “We’re very excited at the prospect of our two businesses working together. We firmly believe that
educating young motorists about their driving style is fundamental in helping them to become safer drivers. Carrot’s extensive experience and innovative approach to rewarding their customers is an exciting development that will drive forward the insurance industry, with new and customer focused practices.”
Close Brothers invests in training for intermediary customers lose Brothers Premium Finance has made a major investment in the training support it provides to brokers. The firm now has seven people dedicated to running training programmes compared with two in 2012. It has also expanded the range of training it provides to include the offering of finance options to customers in addition to ongoing enhanced bespoke product and system training sessions. Training can be provided via Web-ex, where multiple branches can attend one session, face-to-face or online for up to 24 people, though plans are also in place to enhance the online proposition so that 100 people can be trained online. Alongside an expanded focus on training, the company has also established an “assurance team” that will be working
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with brokers to check appropriate processes and procedures are in place to offer facilities from Close Brothers. Janet Wilson, MD of Close Brothers Premium Finance, says, “The benefits of premium finance are well known, but in the current economic environment the product looks even more attractive. “The premium finance market is already big, but our research shows that 27% of SMEs who have never used it would consider paying for their insurance this way in the future and 41% are undecided. This shows the huge potential for the market and to help realise this, providers need to ensure that they are supporting brokers properly. This is a key reason why we have enhanced our training support programme, and we believe it is market leading.”
Gibraltar open to insurance linked securities he Gibraltar government has welcomed publication of the ILS Guidelines (insurance linked securities) by the Financial Services Commission. Gibraltar's ILS Guidelines have been prepared to be fully Solvency II compliant based on the most up to date EIOPA position. Gibraltar plans to offer a new European Union domicile for cat bonds, sidecars, collateralised reinsurance based ILS transactions. Albert Isola MP, Minister for Financial Services, stated, "Gibraltar has a vibrant and growing insurance sector with some £3.6 billion of premium income in 2013. Last year the Government set out to develop and attract new insurance activity to Gibraltar with the ILS sector being a serious target market. “I am most grateful to all those individuals and companies, from Gibraltar and abroad, that have invested significant time and provided invaluable input and know-how to the working group over recent months. I am confident that with their support and contribution Gibraltar's ILS Guidelines provide both the commercial and regulatory frameworks to enable ILS business to flourish from Gibraltar."
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Sportscover and Hamilton in strategic talks portscover reports that it has entered into exclusive strategic partnership talks with Bermuda-based property and casualty insurer Hamilton Insurance Group. The company says that the discussions will be wide ranging and will include the future control of Sportscover Underwriting Limited, Sportscover’s Lloyd’s managing agency, the provision of capital to Syndicate 3334 for the 2015 year of account and
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joint business development initiatives. Australian-owned specialist sports and leisure insurer Sportscover entered Lloyd’s in 2006 and has been looking over the past few years for an equity and capital partner to assist with its growth plans. Hamilton was formed in December 2013 with technology partner Two Sigma Investments LLC. Peter Nash, founder of Sportscover and chairman
Acturis acquisition in Germany cturis Group has announced the acquisition of NAFI GmbH, motor insurance software provider in Germany, creating an international group with over 300 colleagues, installations in over 30 countries and annual revenues of around £40 million. Established in 1991, NAFI’s software covers the entire process from data collection, calculation and rate comparison to the electronic binding of motor policies. The company covers the complete product range of almost all motor vehicle insurers in Germany. David McDonald, coCEO at Acturis, says: “Germany is strategically the most important country for Acturis outside of the
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UK and the opportunity to build on our UK experience and innovate in Germany excites us greatly. “We now have an excellent and well respected German division led by Ivana Höltring and her team who have built a leading range of products and services and established a real position of leadership in the German motor insurance market. Innovation has always been at the heart of the NAFI thinking, and we have a shared vision for how the insurance market and etrading may develop in Germany. We want to support NAFI’s aspiration to be at the forefront of these changes, and we look forward to supporting them in their continued success.”
of the group holding company, Wild Goose Holdings, says, “We are pleased with the way that the discussions are progressing and we expect to have a definitive agreement in place soon. We have built up a very good understanding and rapport and both parties feel that a strategic partnership will result in significant future business opportunities to our respective companies.” He adds, “The
conclusion of a deal will provide capital that will enable the wider Sportscover group to pursue a path of acquisition and product development that we have been seeking to do for some time. It will also provide capital and growth opportunities for the managing agency and syndicate and we will be increasing our own capital participation in the Sportscover syndicate as a result.”
APC acquires Folgate PC Underwriting, the commercial insurance MGA, has announced the acquisition of Folgate Insurance Company Ltd from the Towergate Group. Folgate is a run-off insurance company that was established in 1877 and ceased writing business on 30th June 2002. Since then Towergate has administered the run-off of the business, principally household, motor, commercial (including employers’ liability) and travel policies. The run-off will now be administered by APC. APC has also commenced discussions with the UK regulators with the aim of returning Folgate to active underwriting. Brian Russell, APC Underwriting CEO, said: "Acquiring the 137 year old
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Brian Russell
Folgate Insurance Company marks a significant milestone in the development of our underwriting business. With the transfer of the runoff progressing well we are now focused on working with the regulators to consider options for creating our own live insurance company. This will enable APC to both grow faster and develop a wider range of products for brokers.” OCTOBER 2014 insurancepeople 27
insurancepeople
News
Cost of “lost premium” fraud £1.42bn, says SSP ew data from SSP indicates that motor insurance fraud in the broker channel costs the industry a potential £1.42 billion in lost premiums due to customers deliberately manipulating their risk data when looking for a quote. This misrepresentation reduces the premium paid by 46% on average, with customers typically saving themselves almost £295 each by manipulating personal information, says SSP. In addition to the lost premium, SSP estimates that the exposure to claims cost
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in respect of those customers who are misrepresenting at application stage could be as much as £1.36bn, with those that lie at application stage considered across the industry as more likely to make a claim. SSP has launched its new Intelligent Quotes Hub, which it describes as “ … a next generation centralised dynamic risk rating, pricing and data platform that offers improved pricing precision, unrivalled rating capabilities, allows time to market to be drastically reduced through insurer self-service and
enables innovative uses of novel data as well as incorporating the most effective pre-inception counter-fraud solution on the market”. Adrian Coupland, the head of data strategy at SSP, says, “The cost of fraud at claims stage has long been recognised but until now, lost premiums have been hard to pin down. Failures to declare motoring convictions, the usage of a vehicle for business purposes or a misrepresentation of where a car is kept overnight are regularly not picked up until a
Adrian Coupland
claim is made, if at all. This means that a significant number of insurance premiums are priced incorrectly creating huge losses to the industry.”
Markerstudy acquires The Policy Shop ollowing the recent acquisition of Supercover Insurance, and subject to regulatory approval, Markerstudy has purchased personal lines broker The Policy Shop, adding GWP of £20m and 70 staff. Headquartered in Coventry, The Policy Shop has been operational for 21 years. It will join the retail division of Markerstudy, under managing director, Russell Bence.
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New HQ for Be Wiser opened
Left to right -- Be Wiser CEO and chairman Mark BowerDyke; MP for North West Hampshire Sir George Young; and Mayor of Test Valley Jan Lovell 28 insurancepeople OCTOBER 2014
who comments, “We were approached earlier this year by Sean Byrne, founder and managing director of The Policy Shop. Our philosophy is well known; we are keen to assist our fellow brokers in the industry and we’re transparent about our acquisitive nature. I’m delighted that our discussions have been successful, as this business offers genuine opportunity.”
e Wiser Insurance recently celebrated the official opening of its new Andover headquarters, Wiser House, when the official ribbon cutting ceremony was attended by Sir George Young, MP for North West Hampshire, the Mayor of Test Valley Jan Lovell, and Be Wiser chairman and CEO Mark Bower-Dyke. The Andover-based broker already occupies five offices in the town centre and the new building will provide Be Wiser with additional office space to accommodate its planned expansion. The new 8,500 sq ft headquarters will be home to approximately 250 Be Wiser staff working in the customer services, insurer and partner relations, technical underwriting, business solutions and auditing departments. Be Wiser’s Mark Bower-Dyke says, “We are delighted to move into our new headquarters. Over a relatively short period of time we have become one of the largest personal lines insurance brokers in the UK and this move marks another milestone in Be Wiser’s growth and signifies the next phase in our continued development.”
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RSA responds to Ombudsman ommenting on the Financial Ombudsman Service complaints data for the first half of 2014, Kirk Bradley, head of customer relations at RSA said: "RSA is committed to getting it right first time for our customers. We’re pleased to see that today’s results by the Financial Ombudsman Service show that the general insurance industry continues to improve. The results for H1 2014 show that over two thirds (69 per cent) of our decisions were upheld and that we’re continuing to perform ahead of the GI average. Overall, complaints to RSA have reduced by a further 12% over the last 12 months, with under 1,000 of our 4 million policyholders referring a complaint to the FOS. “We take every reportable complaint seriously and continue to focus on reviewing our processes to ensure we make decisions that are in the best interests of our customers, therefore resolving issues before they reach the FOS.”
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Novae to launch in Bermuda ovae Group has announced that, subject to obtaining the necessary licences and other approvals from the relevant Bermudian and UK regulators, it intends to launch operations as a group reinsurer of, and coverholder for, Syndicate 2007 at Lloyd’s, in Bermuda. Philippe Chevereau will be the resident manager of the Bermuda operation and will also remain Novae’s head of property casualty treaty reinsurance. * * * * Joanna Parsons, analyst at Westhouse Securities, comments, “We consider it very unlikely that Novae will find it necessary to redomicle to Bermuda to get a better corporate tax rate, as we understand conversations with the UK tax authorities are progressing well. However, it does provide the group with another option if required and it will get the benefit of lower tax rates on its Bermudian business. Based on our current forecasts, Novae trades on a P/B of 1.1 2014E NTA and 1.0x 2015 NTA. It yields 4.5% and 4.9% respectively.”
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Brokerslink expands African footprint orldwide broker network Brokerslink has announced the opening of a new operation in Abidjian, the primary economic centre of Ivory Coast, by member Filhet-Allard Group. Brokerslink chairman Jose Manuel Fonseca comments, “This further expansion in the African continent is an important development for both FilhetAllard and Brokerslink. We see significant opportunities for our members in Africa and so have established the structure and leadership to help take advantage of this potential. We are clearly focused on providing clients in this fast growing market with access to the highest standards of local expertise supported by global service.”
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IFoA comments on “No” vote C
ommenting, on September 19, on the result of the Scottish Independence Referendum, Martin Potter, leader of the Institute and Faculty of Actuaries' Scottish Board, said: “Yesterday’s referendum was a momentous occasion in the history of Scotland and the UK. The Scottish electorate has spoken and, while independence was not the outcome, there is clearly an appetite for constitutional change. The IFoA looks forward to playing its part in
informing that debate in areas where actuaries provide expertise such as insurance, pensions, and risk management, both in a regulatory capacity and the implications for the future growth of the financial services sector. “As a not-for-profit royal chartered professional body, the IFoA has a duty to serve the public interest. In this capacity we look forward to continuing to work with the governments in both Edinburgh and London.” OCTOBER 2014 insurancepeople 29
On the move Who’s going where? BriefYourMarket.com
DAS
BriefYourMarket.com appoints Derek Findlayson as chief operating officer. He joins from SSP where he was commercial strategy & proposition director.
DAS promotes southern broker sales manager Darren Weekes to the newly created position of UK broker sales manager. He joined in 1999 as a broker account manager. Group sales manager Andy Westall takes sole responsibility for corporate’s performance and new business focus. Northern broker sales manager Geoff Ashton retires after 28 years.
Derek Findlayson
Sutton Winson Phil Gray joins Sutton Winson as an account executive at the Petersfield office. He was previously with Towergate and before that HSBC.
Collinson Collinson Group appoints Ben Haden as senior healthcare underwriter for Astrenska. He was previously senior healthcare underwriter at Assicurazioni Generali and international underwriting manager at AXA PPP Healthcare International.
Ben Haden
30 insurancepeople OCTOBER 2014
Hiscox Hiscox appoint Robert Moore as new head of direct and intermediated partnerships within its UK business. He joins from RSA, and spent the previous 15 years in a range of roles including research and insight, marketing, strategy and partnership development.
Amy Walker
Stephanie Ogden
Allianz Allianz Global Assistance UK appoints Amy Walker as a propositions development executive. She previously worked at TUI Travel, The Pensions Regulator and EDF Energy. Allianz Commercial appoint Stephanie Ogden as speciality lines underwriting account manager. She joined as a corporate management trainee graduate in 2008 and has held various roles including casualty underwriter, team leader in the commercial London branch and most recently as executive assistant to general manager Simon McGinn.
IIGL Incorporated Insurance Group Ltd (IIGL) appoints Ian Chapman as regional development manager. Currently deputy president at Halifax CII, he was previously a regional development underwriter at Fusion Insurance and has also worked for Primary General (now UK General), NIG and Provident (now Covéa).
Bluefin
Robert Moore
Bluefin appoints Donna Shipway as claims director, who joins from Marsh where she spent six years as a senior claims consultant. Prior to this she was with Crawford & Co, Beachams Loss Adjusters, Crawford & Co in Australia, and Lumley General Insurance Australia.
1 Answer Network
Liberty
Norrie Erwin joins 1 Answer Network as managing director. He joins from Westinsure Broker Network, and previously worked at Arthur J Gallagher, Aviva, and the CII. Former MD Paul Muir becomes chairman.
Liberty Specialty Markets appoints John Henderson as divisional underwriter writing energy liability. He joins from Aspen, where he spent the last ten years as head of underwriting for marine and energy.
John Henderson
In association with
VEHICLE SERVICES Collection, storage and sales
Altitude
Apricot
Arthur J. Gallagher
Altitude Risk Partners appoint former broker Charles Hollingworth as an underwriter, who joins from Aon Risk Solutions where he was a products and aerospace broker.
Apricot Insurance in Northern Ireland appoints Elaine Murphy as branch manager. She joins from Hughes Insurance.
Simon Taylor joins Arthur J. Gallagher as sales director of its UK MGA division. He was most recently executive director of The Clear Group, and prior to that a regional managing director at Willis, and worked for Primary General, NIG, and Norwich Union.
GAB Robins GAB Robins UK appoints Nicola Webb as learning & development manager. She was previously learning delivery & development trainer with Direct Line Group.
CDL Elaine Murphy
Markerstudy
Matt Tozer
Insurance software house CDL appoints Luke Anyon as telematics business manager. He joins CDL from Genesis Communications.
Matt Tozer, former member of Markerstudy’s business development team, has rejoined the business following roles at the A&A Group and iGO4 as executive account manager.
LV= Broker LV= Broker promotes Mark Hands to head of trading for the North of England and Scotland overseeing the commercial lines teams in Glasgow, Leeds, Manchester, and Birmingham. Ian Grundy becomes Birmingham branch manager and joins from AXA Commercial Lines where he was a sales manager. Prior to this he was operations manager and was also an e-trade manager and e-consultant at AXA. Paul Bennett becomes Leeds branch manager. He recently worked for Towergate as managing director of TULaC and Broker Network Underwriting. Prior to this, he was a managing director at Broker Network Underwriting, and before that commercial strategic development manager at UK General. Jon Mainwaring is appointed regional sales executive based in Bournemouth. He joins from Midas Underwriting, and before that worked at Lorega as business development manager for the South, and at AXA. Alex Blanchard becomes a strategic account manager for key personal lines accounts including Swinton, A-Plan, Coversure, Europa Group and Esure. He joined in 2010 as a trainee underwriter.
Cheree Fargher
UK General UK General appoints Cheree Fargher as internal business development manager for the North. She was previously an underwriter in their commercial department and has also worked at Howden.
Ageas
Luke Anyon
Ecclesiastical Ecclesiastical appoints Mark O’Riordan as head of group reinsurance. He has worked at Ecclesiastical since 1982 and was most recently their group reinsurance manager for catastrophe risk. Adrian Saunders joins as corporate business and regional director - London. With over 30 years’ experience, he joins from Marsh where he was UK head of private client and UK head of affinity
Ageas Insurance appoint Cathy Taylor as head of commercial underwriting and operations based in Gloucester. She joins from Aviva and also worked at Ecclesiastical and Direct Line Group. solutions, and was previously regional underwriting manager at Norwich Union, regional manager at Hiscox and head of business solutions at Zurich Financial Services.
Mark O’Riordan
OCTOBER 2014 insurancepeople 31
by Andrew Newman
A tale of pots and kettles This is a tale of 'secretive organisations', and the true nature of the relationship between maverick online news organ Bankstone News and those apparently sane and reputable outsourced claims specialists Bankstone Ltd The words ‘pot’ and ‘kettle’ spring to mind!
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ankstone News pops up in my inbox each week. I like the distinctly alternative take its anonymous author/s make on the latest insurance news, but I was mildly alarmed this summer to see my own name (or something like it) in one of their stories. Why alarmed? Because BN’s apparent inability to get hold of the right end of any story (or to spell anyone’s name correctly) often masks some fairly astute and uncompromising satire. What had I done, I wondered? Not too much, as it turns out. The name check for ‘Andrew Numan’ exposed me as a late removal recipient of a recalled press release. I needed time to discuss stable doors and absconded horses with the PR agency. Press releases get recalled for many reasons. Sometimes the PR people make a mistake. Sometimes it’s down to post-issue interventions from persons higher up the chain of command. (Once, it was the chairman’s wife who decided to stick her oar in!). With print, the situation is clear-cut. Once the presses roll, it's already too late. In the digital world, news can be placed within minutes, but equally removed even quicker. The stable door, in other words, can be safely locked again on a bolted horse. The horse is still loose, but will anyone ever find it?
he case seized upon by Bankstone News concerned a PR firm, an insurance-related law firm, and the appointment of a senior figure within the latter as a highranking official within a certain organisation of the worshipful kind.
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The release apparently went to over 80 contacts. Three hours later, a retraction went out by phone and email. By that stage, however, it’s a safe bet many of the contacts had already been tweeted, facebooked, or had otherwise posted the item. IP certainly had. 32 insurancepeople OCTOBER 2014
in association with:
The reasons for the retraction on this occasion remain somewhat mysterious. IP eventually removed the online story, and there the matter rests. These things happen and far be it for IP rake further. But! We do know someone only too happy to do so... Bankstone News!
A rare glimpse within the arcane world of worshipfulness Published Friday, 27th June 2014 and reprinted here (in censored form) by permission A curious thing occurred last week. There may have been more than one actually, but the curious occurrence Bankstone News has in mind occurred when a press release announcing the elevation of [name redacted] to the role of Master within the Worshipful Company of Insurers was recalled just hours after being issued by top city PR firm [name redacted]. How had this come about? What could it mean? Such were the questions preoccupying confused journalists (the perfect example being Andrew Numan of Insurance People) as they fielded urgent telephone requests to remove the story from their online editions. Why had the release been pulled? Was there some kind of hitch? Might someone have discovered that the prospective new master is actually a lawyer not an insurer? Might he have been found in some way wanting in worshipfulness? Nobody was letting on. Not for the first time, the wilfully obscure machinations of this mysterious and enigmatic secret society appear to have thoroughly baffled the uninitiated herd... Bankstone News To read the full and unexpurgated remainder of the Bankstone News story, which rapidly descends into a suspiciously far-fetched revelation of the true history and sinister secret agenda of this particular worshipful company, click on this link if you’re on the e-edition. Or go to: http://www.bankstone.co.uk/, click on News, and then select Industry News
Sterling Service Worth Much More Than The Paper It’s Written On It’s The Real Thing!
T: 0845 271 1300 E: marends@sterlinginsurancegroup.com W: www.sterlinginsurancegroup.com Sterling Insurance Company Limited and Sterling Life Limited are incorporated and registered in England and Wales under numbers 498605 and 911235 respectively. They are authorised and regulated by the Financial Services Authority and are covered by the Financial Services Compensation Scheme and the Financial Ombudsman Service.
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