The Journal CII- Apr/May 2020

thejournal.cii.co.uk April – May 2020

Chance for change Sian Fisher on learning from the crisis

Hub of knowledge The CII’s new online resource

Lessons from Asia How CII Hong Kong is responding to the pandemic

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THE IMPACT OF COVID-19 The CII offers guidance and support in unprecedented times

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Powering Personal Lines Professionals Personal Lines Knowledge Range

Technical knowledge and professional service Welcome to the Personal Lines Knowledge Range - a suite of learning and development tools built specifically for those in the consumer retail market. There’s something for everyone – from simple animations and short online courses to professionally recognised qualifications – designed and built by market practitioners to empower staff in delivering expert guidance and positive customer outcomes.

More details and to enrol cii.co.uk/personallines

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A P R I L - M AY 2 0 2 0

C O N T E N TS NEWS 28-29 Relationships at work Should companies have policies in place?

5 President’s letter Nick Turner highlights the importance of predictability 6 -11 News UK and international news from the CII 12-13 Regional news News from the local institutes 27 Regulatory radar The latest legislation updates from the UK

30-31 Health What part should insurers play in maintaining the UK’s health?

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32-33 Motor Examining a new automation in motoring report 34-35 Technology How insurers are introducing apps for virtual assistants

FEATURES

38-39 Cyber Covering silent cyber on commercial property policies

14-15 The Interview Sian Fisher reflects on a critical time for society and insurers

40-41 Underwriting The new Chartered managing general agent title

16-17 CII knowledge The launch of the Covid-19 resource hub 18-21 Covid-19 A first look at measuring the impact of the global pandemic on insurers 22-23 Hong Kong How the insurance profession in Asia is handling the outbreak

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STUDY ROOM 49 Q&A The big ten questions to test your knowledge 50 CII blog How mindfulness can help your work/life balance 50 CEO comment A look ahead with Sian Fisher

24-26 Flooding Responding to the impact UK floods

44 CONTACT US

The Chartered Insurance Institute 21 Lombard Street, London, EC3V 9AH Tel: (020) 8989 8464 Fax: (020) 8530 3052

The Journal is the official magazine of the Chartered Insurance Institute (CII).

Views expressed by contributors or advertisers are not necessarily those of the CII or the editorial team. The CII will accept no responsibility for any loss occasioned to any person acting or refraining from action as a result of the material included in this publication.

The Journal is online at www.thejournal.cii.co.uk

Chief executive: executive: Sian Sian Fisher Fisher Communications director: Editor:Ann LukeHughes Holloway Emma (020) 7417 4778 Editor: Luke Holloway luke.holloway@cii.co.uk (020) 7417 4778 Contributing editor: Liz Booth luke.holloway@cii.co.uk Art editor: Yvey BaileyLiz Booth Contributing editor: Picture editors: Claire Echavarry, Charlie Hedges Art editor: Yvey Bailey Production: Jane Easterman Picture editor: Claire Echavarry Printing: GD Jane Web Off set Production: Easterman Printing: GD Web Offset

Cover Image: Ikon Ikon

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Publisher: Redactive Media Group Level 5, 78 Chamber Street London E1 8BL Tel: (020) 7880 6200 For sales and advertising please contact us on cii-sales@redactive.co.uk or 020 78807880 76617661 020 ISSN 0957 4883 2016 Chartered © 2020 Chartered Insurance Insurance Institute.

Institute.

Average total net circulation more than 82,000

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Your career will advance faster with the benefit of knowledge, guidance, experience and encouragement of others.

The CII’s network of 56 local institutes put all the advantages of membership on your doorstep.

cii.co.uk/fivebigwords Local institutes are a constant source of support, inspiration and new possibilities

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PRESIDENT'S LETTER NICK TURNER

THE POWER OF PREDICTABILITY CII president Nick Turner looks at the final pillar of trust and explains why being predictable is now more important than ever

to cover and market conditions. How we manage sometimes very difficult conversations will play to whether we emerge from this crisis with a reputation we can be proud of. Certainly, being proactive, supportive and clear with customers will help, but the reality will remain – the impact of coronavirus is enormous and will affect a great many people and businesses.

BETTER UNDERSTANDING

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HOW WE MANAGE SOMETIMES VERY DIFFICULT CONVERSATIONS WILL PLAY TO WHETHER WE EMERGE FROM THIS CRISIS WITH A REPUTATION WE CAN BE PROUD OF

t the start of my presidency, I challenged the Chartered insurance and personal finance communities to reflect on personal interactions with consumers – to deliver on the four pillars of trust. In this month’s letter I will focus on the final pillar: ‘predictability’.

However, as I write, the world as we knew it has changed. The emergence of the coronavirus pandemic has stricken all of us with a new, and I hope, temporary way of life.

On a personal level, it is heartwarming to see how fast the majority of the UK population can react to an unprecedented situation, come together and embrace a new normal. Business continuity, managing risk and planning for an uncertain future are key components of our profession and I am proud of how many financial organisations have been able to maintain service levels and standards in these very difficult times.

The Covid-19 crisis has given rise to a significant increase in customer queries, particularly relating

Which brings us to the last ingredient of the trust equation – predictability.

At the point a product or service is purchased, it is an enormous challenge to successfully describe exactly how policies or markets will work in the future and yet we must persevere.

Finding new ways to help customers better understand what they are buying and enabling them to connect with the advice, product or service is surely where the profession needs continued innovation.

Being able to behave in a way that consumers can consistently forecast is key. Being able to meet their expectations every time, with no market fluctuation a surprise, or no recommendation passively received and with no variance in minimum standards of professionalism, is an enormous issue to overcome.

Predictability, within our profession, must be a fundamental part of what we provide to our consumers and, in times like these, customers will look to us for help more than ever.

We need to be proactive, helpful, clear and consistent.

In short – we need to be predictable. ●

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Nick Turner is president of the CII

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NEWS

FROM THE CII TWITTERATI »

@ chri s_bi bb I’m wondering why so many joiners to @CIIGroup put ‘no contact’ as their preference. It means your local institute can’t tell you about CPD events and other get-togethers (virtually at the mo, of course) and you miss out. #MakesNoSense

@ b ro k i n g s o c i et y To support diversity and inclusivity @CIIGroup has partnered with @Aon_UK and @WTW_uk to develop guidance providing an overview of Autism Spectrum Disorders (ASDs) for your workplace

@fhusseini Just received news of my election to the fellowship of The Chartered Insurance Institute. I am now officially an FCII

CHARTERED INSURANCE INSTITUTE

CII PRESIDENT TO SERVE LONGER TERM DURING PANDEMIC

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The CII has extended the term of the current serving president as it has been forced to delay its annual AGM due to the global pandemic. This is an unprecedented scenario for the organisation during a time of peace.

The CII appoints a new president and chair of the board annually at the AGM which usually takes place in the Summer but due to the conditions caused by Covid-19, the 2020 AGM has had to be postponed to the Autumn.

Nick Turner, sales and agency director at NFU Mutual was appointed as president in 2019, championing consumer trust as his theme for his 12-month tenure.

Reflecting on this, Mr Turner said: “It has been a privilege to act as president of the

Nick Turner

CII at such an important and historic moment.

In these times of ever-increasing uncertainty, I see a real opportunity for us all to focus on building a greater level of consumer trust in our profession and I will continue to do so for as long as the CII needs my service.”

Sian Fisher, CEO of the CII, noted: “This is a time of severe disruption for the UK and indeed the world, and has brought much financial difficulty for many.”

“At this time, trust is perhaps the most significant factor in determining how well we as a profession are able to serve society, both now and during less stressful times. I am delighted that Nick Turner will extend his presidency and enable us collectively to continue serving our clients the best that we can.”

LEARNING

CPD DURING LOCKDOWN The CII has traditionally offered training, courses, events and conferences, keeping members’ skills updated by focusing on relevant training and development. So how can we help you continue to grow your professional knowledge and experience during this period of social distancing?

The CII is continuing to support its members during this difficult time and has updated its online resources to help keep you on track. These include a new suite of online conferences, articles, good practice guides, webinars, podcasts and e-learning.

A wide variety of activities can be considered as continuing professional development (CPD), including online learning available on Assess and Essentials. Links to further resources can be found in society newsletters, on the CII website and through social media channels including LinkedIn and Twitter.

A dedicated FAQ section on Covid-19 and your CPD can be found in the learning section of the CII website. For specific enquiries, email customer services: customer.serv@cii.co.uk

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NEWS

@anna_bordon Keeping up with the latest #insurance news from @CIIGroup while working from home!

@ S tep h e n H _ FP My #R01 study materials have arrived from @CIIGroup - let’s get started! #financialplanner #financialplanning #financialadvice #careerchange #studying #revision

@smelly1871 Teddy is really getting into this WFH malarkey and has taken to Insurance like a duck to water.

Here he is catching up on the Chartered Insurance Institute’s latest monthly magazine

#CIIGroup Twitter

18,113 Followers and counting...

CHARITY

IUAD LAUNCHES CORONAVIRUS APPEAL announcement that now is the time for everyone to stop non-essential contact and unnecessary travel, more than 700,000 people with dementia must selfisolate for a period of 12 weeks.

IUAD recognises that staying at home brings new and complex challenges for people with dementia, who are already at increased risk of social isolation and feelings of loneliness.

The charity is calling on companies, individuals and trusts to donate cash to support the Alzheimer’s Society, which will continue offering vital services and reach vulnerable people during the pandemic.

Services include a dementia telephone

Insurance United Against Dementia (IUAD) has launched an emergency appeal to raise funds for dementia sufferers who are self-isolating due to the coronavirus pandemic.

Following the UK government’s

hotline connecting people with qualified advisers who can provide valuable advice and support, and access to Talking Point, the IUAD online community hub where dementia sufferers can connect and share their experiences.

To donate to the appeal, please visit: alzheimers.org.uk/iuad During the pandemic, the Society is also offering advice and practical tips for people living with dementia and those supporting them – either in the same household or from a distance.

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→ For more information, visit: alzheimers.org.uk/coronavirus

GUIDANCE

CII EXPLAINS FINANCIAL SUPPORT AVAILABLE TO MEMBERS The CII has produced a guide for members explaining the forms of financial support available to business as a result of the coronavirus outbreak.

The guide details the full list of financial support being made available by government, as well as how to access the different support schemes, advice on how to apply for support and a breakdown of the eligibility criteria for applicants.

Guidance for businesses seeking support via deferring VAT and income tax payments, employers paying sick pay to employees, firms planning to access the Coronavirus

Job Retention Scheme, and larger firms seeking the Covid-19 Corporate Financing Facility is also offered. In addition, there is an explanation of the new Self-Employed Income Support Scheme.

The guide also includes an extensive list of useful government and third-party links to provide information for firms facing financial hardship caused by the measures that have been made necessary by the pandemic. → For more information, and to read the guide, visit: cii.co.uk/91347

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NEWS

INCLUSION

CII ADVISES ON UNLOCKING TALENT IN ADULTS WITH AUTISM The CII has announced that it has partnered with Aon and Willis Towers Watson to develop a guide that outlines ways to develop a diverse and inclusive working environment for people who rate at the higher end of the autism spectrum.

The guide identifies that almost 80% of adults with an Autism Spectrum Disorder (ASD) are unemployed or underemployed and provides advice for employers on how to unlock the talent found within this group.

Furthermore, the guide provides tips on how to recruit, manage and continue to support adults with ASD, in a way that removes typical

→ To read the full report, visit: cii.co.uk/91481

MEMBERS

PROVIDING A LIFELINE IN TROUBLED WATERS In response to recent events, The Insurance Charities would like to remind CII members of the support available in times of need.

The Insurance Charities can offer practical and financial support, awarding more than £1.7 million annually throughout the UK and Ireland.

Whether you’ve been affected by redundancy, bereavement, sickness or domestic abuse it’s here to make sure no insurance employee (past or present), and their family, misses out on the help they need. It doesn’t matter what stage of your career you’re at, or what role you’re working in.

The charity can award one-off payments to fund essential items such as property repairs, household appliances and care home costs. It also provides on-going financial help where income is restricted or insufficient, and can offer practical support to those with health, money and housing concerns.

Supporting Employees with Autism Spectrum Disorders

barriers to success and allows them to achieve their full potential.

Tips include: ● Avoiding idioms that require interpretation, such as ‘ballpark figure’ ● Do not use hypothetical or abstract questions ● Recognising that body language does not always resemble conventional social norms ● Enabling ability to work close to familiar and understanding colleagues ● Relaxed obligations to social commitments.

THE INSURANCE CHARITIES

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Manager Guidance

A partnership with the Insurance United Against Dementia (IUAD) campaign offers a service for insurance people affected by dementia, and also provides unique volunteering opportunities. → For advice, information or details on how you can raise awareness email info@theinsurancecharities.org.uk or call 020 7606 3763.

CII MOVE TO DIGITALONLY MEMBER PUBLICATIONS FOR Q2 At this time of increased pressure on delivery networks, the CII has switched to digital-only member publications until the end of the second quarter of 2020.

A downloadable PDF version of The Journal publication for insurance professionals and Personal Finance Professional publication for financial planning professionals will be emailed to members for the next three months.

Emma Ann Hughes, communications director of the CII, said: “We know members value our printed publications, but this is a time when we must all pull together and support keyworkers such as postal and delivery drivers.

“Members will continue to receive The Journal content that educates, informs and supports them in helping the public but via their email inboxes rather than via their letterboxes during this period.”

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NEWS

Q U A L I F I CAT I O N S

CLAIMS

CII OFFERS FREE STUDY TEXT RENEWALS TO STUDENTS

INSURERS ADVISED HOW TO PREPARE FOR CLAIMS SURGE

The CII is offering free digital study texts and revision aid updates to personal finance students worried they may be unable to sit their assessment before the end of August 2020.

If a personal finance student is unable to take their assessment before the expiry of their 2019 to 2020 study text, the CII will add a 2020 to 2021 digital study text,

together with any revision aids purchased, to their RevisionMate account along with an assessment extension.

This guarantee also extends to study texts and revision aids for those enrolling between now and the current expiry date.

The CII has postponed written examination sittings that were due to take place in April until October.

How insurers should prepare for surge events by identifying seasonal patterns of activity is covered in the latest Society of Claims Professionals good practice guide.

As the profession faces a surge in claims as a result of the coronavirus pandemic, the Society published the guide, which details how insurers should establish a ‘surge group’ to be adequately prepared for surge events and maintain service.

The guide details six activities that must be actioned when handling a dramatic increase in claims activity 1. Use predictive data wisely.

2. Manage staff levels appropriately.

3. Get in the mindset of the customer.

4. Identify at-risk customers.

5. Provide accessible and consistent information.

6. Follow-up with post-surge service.

EXAMS

CII PROVIDES EXTRA EXAM SPACE IN JULY The CII has provided further capacity for its July examination session, allowing more learners to take their written exams without delay.

The (AF1) Personal tax & trust planning, and the (AF5) Financial planning exams, which both receive the greatest number of learner entries amongst the CII’s curriculum, will be available in July to

benefit the maximum number of students.

The CII will be contacting candidates who had booked AF1 or AF5 for the April sitting to notify them that they will automatically be rescheduled to the July exam sitting.

For more information, visit: cii.co.uk/ media/10120651/cii-qualificationsbrochure.pdf

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→ For more information and to read the full guide, visit: www.socp.org.uk/91218

INDIA

NEW QUALIFICATIONS FOR MOTOR INSURANCE MARKET IN INDIA The CII is delighted to launch a comprehensive Certificate in Motor Insurance (India) programme to build knowledge, understanding and competency of professionals operating in the Indian motor insurance market, leading to an accelerated career.

The Certificate in Motor Insurance (India) enables learners to advance their understanding of insurance products and principles, as well as the key disciplines of underwriting and claims. On

The Certificate in Motor Insurance (India) requires three units to complete: ● Motor Insurance Products and Principles (India) (IMP) ● Motor Insurance Claims and Underwriting (India) (IMU) ● Award in General Insurance (non-UK) (W01).

Each of the above units can also be taken as standalone qualifications and, on successful completion, will entitle members to use the designation CII (Award). successful completion of this certificate, members can use the designation Cert (CII) after their name.

→ To find out more, visit: cii.co.uk/cert-mii

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I N T E R N AT I O N A L N E W S

CHINA

WEBINARS FOR LOCAL INSURANCE PROFESSIONALS IN CHINA Due to the Covid-19 crisis, students and insurance professionals in China have not been attending face-to-face events but instead are joining webinars online.

In February, the CII’s goodwill ambassador, Sean Lin, hosted three webinars discussing the impact of Covid-19 on employer liability insurance. And in March, the CII’s distributor in China, Yijiunian, hosted

three webinars, on the topics of cyber risk and directors and officers liability insurance.

In total, the six online seminars attracted more than 2,700 local students and industry professionals to participate. During the events, the hosts also introduced CII qualifications framework and study pathways to attendees.

HONG KONG

HONG KONG

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HKU SPACE OFFERS ONLINE TEACHING FOR CII EXAM COURSES

The University of Hong Kong’s School of Professional and Continuing Education (HKU SPACE) will deliver two CII examination preparatory programmes – Insurance Claims Handling and Introduction to Risk Management – for students and insurance professionals in Hong Kong.

The two CII professional examinations are the first level of the CII insurance qualification framework and they help teams to

build up technical knowledge and attain internationally recognised qualifications.

In response to the Hong Kong government’s latest directions under the prevention of control of disease regulation for COVID-19 pandemic, HKU SPACE will deliver online teaching via virtual classroom application. Enrolled students will be able to continue their learning through online support.

CII HONG KONG DELIVERS ONLINE CPD EVENTS

CII Hong Kong offered online learning opportunities with continuing professional development (CPD) hours accredited for local insurance professionals, in March, April and May this year.

Local insurance intermediaries who attended the online learning can claim CPD hours from the Hong Kong Insurance Authority for the required CPD Assessment.

This new CII online CPD service is a contingency arrangement to support the Hong Kong insurance profession during the coronavirus outbreak period.

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I N T E R N AT I O N A L N E W S

HONG KONG HONG KONG

CII HONG KONG MOVES TO NEW OFFICE From 7 May, CII Hong Kong will move to a new office in Central District, a location close to the offices of many multinational financial services corporations.

The new premises offer a bright and modern workplace for CII staff, as well as a bigger conference room for business meetings.

CII Hong Kong’s new address is: Unit B, 22nd Floor, Two Chinachem Plaza 68 Connaught Road Central Hong Kong

CII HONG KONG DEVELOPS CORPORATE VIDEO

CII Hong Kong has developed two corporate videos with Cantonese and Mandarin voiceovers to support its marketing effort for promoting professional standards.

The videos can now be viewed on CII Hong Kong’s official website and YouTube channel.

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HONG KONG

NEW CII LEARNING UNITS LAUNCH FOR HONG KONG The CII has launched a new certificate unit in its personal finance qualification framework for the Hong Kong market.

The new unit – Award in Financial Planning (Hong Kong) – provides a solid grounding in the core financial and life assurance products in the Hong Kong insurance market. It also offers guidance on what constitutes professional practice and ethical behaviour. Students who complete the unit can attain the CII (Award) qualification. The unit is now available

in both English and traditional Chinese languages.

Within the insurance qualification framework, the CII has also further localised one of the certificate units – Award in General Insurance (Hong Kong) – to traditional Chinese language. The unit is an entry-level qualification for those starting their careers in the Hong Kong insurance sector. → For more details and to enrol, visit: www.cii.co.uk

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REGIONAL NEWS

MEMBERS

MANAGING YOUR PREFERENCES Everyone likes a choice, so that is why the CII has launched the Member Preference Centre, where you can control the communications you receive from us.

The local institute network runs a large programme of events for members, so if you are not receiving emails from us, you will be missing out on member benefits such as

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CPD lectures, networking events and educational visits.

Manage your preferences and get the most out of your membership subscription by going to www.cii.co.uk and clicking on the My CII tab to manage your CII and local institute communications.

Instructions on how to navigate the Preference Centre can be found within MY-CII.

LOCAL INSTITUTES

B O LT O N

LOCAL INSTITUTE PROGRAMMES MOVE ONLINE

NO SMOKE WITHOUT FIRE

Following the government’s announcement that now is the time for everyone to stop non-essential contact and unnecessary travel due to the coronavirus outbreak, the CII and its local institute network cancelled all events across the UK planned for the second quarter of 2020.

Where possible, local institutes have started to consider digital solutions for delivering CPD to their members during this period.

Please check out your local institute website for more details, where you will find standalone activities as well as a page dedicated to helping you achieve your CPD quota. → Your institute web portal can be accessed via: www.cii.co.uk/membership/local-institutes

Members of the Insurance Institute of Bolton recently attended a site visit of the largest firefighter training facility in the UK – the purpose-built Greater Manchester Fire and Rescue Service Training and Safety Centre in Bury.

The visit was designed to inform delegates on how to protect themselves against fire and other dangers, as well as looking at the everchanging challenges facing Greater Manchester Fire and Rescue Service.

The first part of the tour focused on the facility and control room setup, where delegates witnessed typical calls and discussed how these were dealt with. The second part of the tour showed delegates various challenges set up for firefighters to practise on – this

ranged from fighting a tram fire through to a high-rise building inferno.

The tour finished with an excellent one-hour talk on fire source and investigation delivered

by Burgoynes. → For more information, visit: www.cii.co.uk/bolton

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REGIONAL NEWS

GUILDFORD

YOUNG LEADERS RECOGNISED On 20 February 2020, the wrap event for the Guildford Young Leaders programme that started in April 2019 was held at the Harbour Hotel in Guildford. Those who attended included the young leaders, their line managers and council members.

As well as the five workshops completed by candidates during the last year, they were also given projects, with one group focusing on membership engagement and the other on charity engagement.

The wrap event included presentations by both project groups highlighting their projects, the issues and recommendations to council for how to improve engagement.

@CIIGroup Fulfilment. Influence.

Continuity. Visibility.

Advantage.

Being involved in your local institute brings real professional benefits #CIILocal

This was followed by celebratory drinks and a buffet. The Insurance Institute of Guildford would like to extend its congratulations to all the young leaders who completed the programme: (L-R) Nancy Morley, Luke Bishop, Jennifer Currell, Olivia Jukes, Ashely Lawrence, Ben Moore, Aaron Wilding, Grace Korten and Jamie Barham.

CHELMSFORD

K E N T A N D R OYA L T U N B R I D G E W E L L S

STUDENT SUCCESS

KENT CONFERENCE HELD FOR 7TH YEAR

Amid the coronavirus lockdown, the Chelmsford institute still managed to put a few smiles on its members’ faces by confirming its prizewinners for 2020.

Eight members were recognised for their outstanding achievements in the CII qualifications during 2019: Ben Hanson ACII, Victoria Rutland APFS; Robert Plummer Dip CII; Stephen Bilton DipPFS;

Gabriel Taylor Cert CII; Jack Eaton Cert CII (MP); Anthony Burnett Dip CII; and Sarah Rossell ACII. Sadly, the prizegiving dinner has been postponed until 2021, so the winners will need to wait to collect their awards, although one recipient asked if there was a prize, could it be a hamper of toilet rolls and hand-sanitising gel.

ANGLIA

INSTITUTES SUPPORT LIZZIE’S FUND During the past few months, the local institutes in Anglia have been raising funds for research into childhood brain tumours in loving memory of Lizzie, the daughter of a CII council member at the Ipswich institute, who sadly passed away a week before her

10th birthday.

Lizzie was an avid baker, so in support of this, the institutes have held bake sales, afternoon teas and prize draws, along with quiz nights and virtual runs.

To date, the charity has raised more than £290,000. → To find out more, search for ‘Lizzie’s Fund Brain Tumour Charity’ on Google.

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Before UK social distancing measures had been put in place, the Insurance Institutes of Mid Kent and Royal Tunbridge Wells successfully hosted the Kent Conference for its seventh consecutive year. More than 80 members attended this year’s annual event, welcoming a mix of speakers from the broker, insurer and loss adjustment markets, as well as views from local government.

Ray Johnson, conference chairman, commented: “The conference theme “Discover the Difference for Tomorrow” was certainly relevant. Not only did we cover a broad range of topics and issues affecting the sector, we naturally covered the coronavirus which was gaining momentum within the media on the day with proposed lockdowns being considered.

“Next year’s event is scheduled for Tuesday 9 March 2021.”

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THE INTERVIEW: SIAN FISHER

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feedback on how the regulator could do things differently or, if there are unintended consequences to regulation, we can voice that as quickly as possible.

“We hope this then helps those working in the sector to focus on serving their customers and providing value to clients,” says Ms Fisher.

LESSONS So, what lessons can insurers learn from the outbreak of coronavirus for the future?

“As a profession, we are not good enough at managing expectations,” Ms Fisher explains. “We are usually well aware of the difference between unlimited, full cover and what is provided by normal products in return for a relatively low price.

“However, there is often a mismatch between customer expectation as to what their policy will cover and their willingness to pay the appropriate price for it. In the middle of that, as a profession, we can get caught in that expectation gap.

“Perception becomes reality. If we allow individuals and businesses to misinterpret what their insurance products are capable of delivering or expect every one of our customers to read lots of technical information to know exactly what is and is not covered, clearly that is not going to be a good thing,” says Ms Fisher.

“Our profession has a purpose and somehow we have got to rebuild the concept of that purpose for insurance and financial services in society. We must then work out how our sector delivers that, while getting the public to appreciate and understand that again.

“What would be unforgivable would be if you navigated a crisis that caused huge disruption and problems for so many people and businesses, then you come out the other side of it and nothing has changed for the better,” she adds.

Ms Fisher points to the work of Pool Re, a proposition put in place by insurers in partnership with the government as a response to the major potential threat of terrorism.

The scheme was put together quickly and through vast collaboration, showing the extraordinary work that can be done when the profession comes together.

“We have a huge amount of knowledge as professionals about risk and building financial resilience. We must find the best way to deploy that knowledge to the benefit of the whole customer, putting them in the best position relative to their risk and circumstances,” she says.

“I would also like to highlight the fantastic work done in response to the pandemic by organisations such as Insurance United Against Dementia and The Insurance Charities at a time when people are most vulnerable. I would encourage our members to support these wherever possible.

“As we pull together to overcome this, we need to build a holistic solution, so if anything similar were to happen again, as a profession we are ready.” ●

WHAT WOULD BE UNFORGIVABLE WOULD BE IF YOU NAVIGATED A CRISIS THAT CAUSES HUGE DISRUPTION AND PROBLEMS FOR SO MANY PEOPLE AND BUSINESSES, THEN YOU COME OUT THE OTHER SIDE OF IT AND NOTHING HAS CHANGED FOR THE BETTER

SUPPORT One key aspect of the CII’s work is delivered through local institutes across the UK, affiliated institutes overseas and personal finance and insurance societies, which provide support, content and a touchpoint for members.

“Of course, these activities have been curtailed because of mass event cancellations,” says Ms Fisher. “But it has been amazing to see the amount of content that has now been moved online, including our centralised continuing professional development (CPD) programme, podcasts, webinars, articles and blogs – all rapidly deployed to keep members up to date with information and learning.

“Although we cannot replace the physical and social aspect of events, our institutes still remain a community,” she says. “We have also switched our member publications such as The Journal to digital-only until at least the end of the second quarter of 2020.”

Ongoing dialogue with regulators, trade bodies and the government has also been important during the pandemic.

“We are here to aggregate the voice of our members and to represent the sector. We are able to feed through information to regulators and government about the impact their actions have on professionals and the public they serve. We can offer

Luke Holloway is editor of the CII

IMAGE: © TOM CAMPBELL

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he outbreak of the global Covid-19 pandemic has been unprecedented. When the UK government announced the nation must stay at home, protect the NHS and save lives, the CII was swift to ensure staff were safe and insurance and personal finance professionals were offered relevant guidance.

“We are not the profession, the profession is our members,” says Sian Fisher, CEO of the CII. “They are the ones doing incredible work out in the market and helping customers at an especially difficult time. We can only help the public through our membership, so it is hugely important we keep that connection strong, whatever the circumstances.”

In recent years, the professional body has been forward-thinking in its approach to agile working and modern flexible learning, which has proved vital given the current lockdown in the UK and across many countries where the CII operates.

“The main thing for our students is that this happened very close to one of our main exam sittings in April. We have exam centres all over the world, so we had to move fast to let members know that they could move to the October sitting, which the vast majority did,” says Ms Fisher.

“We are also offering free digital study texts and revision aid updates to our personal finance students who are unable to sit their assessment before August. And throughout the ongoing situation, we will continue all coursework and assessment-based qualifications as planned.”

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THE INTERVIEW: SIAN FISHER

As the world deals with the coronavirus pandemic, Sian Fisher tells Luke Holloway how the CII is adapting to help members and reflects on what the profession can learn from the crisis

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KNOWLEDGE

CII LAUNCHES

COVID-19 HUB The CII has launched a Covid-19 hub as a resource for members and the wider profession to find the latest guidance and insight from across the insurance community during the ongoing coronavirus pandemic

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he website – cii.co.uk/coronavirus-hub – aims to keep members up to date with news, advice and knowledge to help them deal with a rapidly changing business environment, with content including topical articles, good practice guides, blogs and regulatory guidance. Subjects include: ● What sort of business interruption cover do people have? Does it include wordings on pandemics, forced closure or loss of access? And how lenient should insurers be if it does not?

● Claims shifting from motor, accident and theft to property damage and income protection; ● The increase of fraud and targeted cybercrime; ● Dealing with vulnerable customers; and ● The mental health implications of working in isolation.

Here is just a taste of the type of content you can find on the CII’s Covid-19 hub, which we hope will help you, your business and the public you serve during these unprecedented times.

CYBER SCAMS

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Now that more people are working from home, reports of scam callers and phishing emails are increasing. Criminals posing as banks and health organisations have been telephoning people and sending fraudulent emails to trick them into sharing personal data.

These scams are taking advantage by catching people off guard as well as preying on vulnerable people by taking advantage of their fear and uncertainty because of the coronavirus. Therefore, it is important to treat these telephone calls and suspicious emails as cynically as you would any other.

The Financial Conduct Authority (FCA) has provided some advice on how to spot and action fraudulent activity: ● Reject offers that come out of the blue. ● Beware of adverts on social media channels and paid for/ sponsored adverts online. ● Use the FCA Register and Warning List to check who you are dealing with. ● Do not click links or open emails from senders you do not already know. ● Do not give out personal details. ● If you suspect a scam, call Action Fraud straight away on 0300 123 2040.

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KNOWLEDGE

BUSINESS INTERRUPTION Richard Graham, head of claims and risk management at insurance broker Aston Lark: Covid-19 is clearly breaking new ground and the current situation is unprecedented.

We are expecting significant pushback from insurance companies regarding business interruption and contingent business interruption claims, despite assurances from the government in its daily briefings.

Similar to insurance policies elsewhere in the world, physical ‘damage’ needs to occur before business interruption insurance cover is triggered.

A voluntary or mandatory closure as prescribed by the UK government is unlikely to be covered by most policies, due to the lack of ‘damage’. We are investigating legal theories that may exist to find coverage under the current insurance, although the stance currently is that it is unlikely that a policy would respond.

However, Covid-19 is unprecedented and the financial and non-financial impact, to a large extent, remains unknown. Therefore, while the support measures very recently offered by the UK government (including the government-backed business interruption loans) are welcomed, it may well decide in the future to take this a step further and compel insurance companies to grant policy coverage in some shape or form.

Given the current uncertainty, we suggest the following practical steps: ● Keep accurate financial records during the time in case the UK government introduces an initiative to recompense or support. ● Contact your local MP to request that, given the uncertainty surrounding insurance coverage, UK government takes action to support UK businesses. ● Remain vigilant regarding situation updates and heed UK government and other guidance regarding the health and safety of your employees. ● Remember to continue to adhere to all policy terms and conditions, such as security conditions, for example. ● For those who need to work from home, please ensure that you have sufficient insurance cover in place for laptops and equipment.

REMOTE WORKING RISKS Now that many firms and organisations have either closed or reduced their operations, more people are working remotely. The result being that there are far fewer people commuting or on business premises because of the lockdown. While business interruption claims are expected to increase, other types of claim may see a reduction, such as road traffic collisions, accidents in the workplace, vandalism and theft.

However, this does not mean insurance claims will decrease. With people spending more time at home, this could increase the chances of accidents indoors. There are also

issues about how to define workplace incidents, as who is liable when the place of work has now changed?

As these boundaries blur, so will responsibilities. However, employers should work to ensure that staff are safe and well in all respects.

While employers are not expected to be counsellors, providing appropriate levels of support is encouraged. It is important to monitor situations carefully to see how people are coping and the additional pressures they face at home, to be able to flag any issues.

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GOVERNMENT SUPPORT PACKAGES FOR BUSINESSES New Coronavirus Business Interruption Loan Scheme (CBILS) CBILS is a new scheme, announced by the Chancellor in response to the coronavirus outbreak, which can provide finance facilities of up to £5m for smaller businesses across the UK that are experiencing cashflow disruption and loss of earnings.

Support for businesses through deferring VAT and income tax payments The government will support businesses by deferring valued-added tax (VAT) payments

for three months. If you are self-employed, income tax payments due up to July 2020 under the self-assessment system will be deferred to January 2021.

Support for businesses through the Coronavirus Job Retention Scheme Under the Coronavirus Job Retention Scheme, all UK employers will be able to access support to continue paying part of their employees’ salary, for those employees that would otherwise have been laid off during this crisis.

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C O R O N AV I R U S

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C O R O N AV I R U S

ISSUES FACING THE INSURANCE PROFESSION

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Liz Booth investigates how the profession is coping with the impact of the health and economic crisis caused by the Covid-19 outbreak

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s The Journal went to press, many insurance experts were trying to assess the impact of Covid-19 on the profession.

Financial data company for insurance, AM Best, is suggesting the virus has the potential to challenge European insurers on both the asset and liability sides of their balance sheets. However, it believes the biggest impact will come as a result of the economic fallout, as governments and markets react to the virus’s rapid spread, rather than from direct coronavirus exposures.

“Despite considerable uncertainty about the ultimate cost to insurers in terms of claims, the insurance industry has long recognised the potential exposures presented by a pandemic,” it says.

This view is backed by credit rating agency, DBRS Morningstar, which suggests: “While property and casualty (P&C) insurers could incur insurance

underwriting losses directly due to the Covid-19 pandemic that has caused widespread disruption to businesses, there will not be any significant underwriting losses for the P&C industry overall.

This is because the coronavirus is considered to be largely an economic event for now.”

However, they are predicting certain lines such as events cancellation and travel insurance will experience an increase in claims, as trips and events get cancelled or more people become infected.

CLAIMS EXPOSURE DBRS Morningstar points out that some organisations have a higher level of exposure to the coronavirus compared with others. This includes companies in the entertainment industry, large manufacturers and companies in the tourism and hospitality sector: ● Event cancellation insurance: Many events have been cancelled or postponed by organisations in

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C O R O N AV I R U S

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THE LLOYD’S SOLUTION The Lloyd’s Market Association (LMA) has published policy language that will ensure customers’ coverage continues beyond a specified renewal date if the Lloyd’s market is inaccessible and the emergency trading protocol fails. The clause is intended to ensure that (re)insureds will not be left without cover if the developing Covid-19 situation makes normal renewal discussions untenable.

LMA5392 – limited automatic extension – prevention of access to Lloyd’s of London 1. In the event that, seven or fewer calendar days before expiration of this contract of (re)insurance, all Lloyd’s syndicates are prevented from entering Lloyd’s of London, One Lime Street, London, EC3M 7DQ: 1.1. By the Corporation of Lloyd’s or…

1.2. Following the imposition of quarantine or restriction in movement of people by any national or international body or agency…

For more than one business day during the seven days before expiration of the contract of (re)insurance, this contract of (re)insurance shall, in consideration of a pro rata additional premium, be automatically extended at the existing terms and conditions for 14 days from the expiration of the contract of (re)insurance.

2. However, the automatic extension provided under paragraph 1: 2.1. Shall only apply if the (re)insured, their broker or (re) insurers, despite using best endeavours, are unable to implement the Lloyd’s Emergency Trading Protocol; 2.2. Shall not increase or reinstate any applicable limit(s) of liability; 2.3. Shall only apply once, unless agreed otherwise in writing by (re)insurers; 2.4. Can be voided by mutual agreement between the (re) insured and (re)insurers.

an attempt to mitigate the spread of the virus, including Serie A football matches in Italy, Premier League and EFL football in the UK, Facebook’s developers conference and the Six Nations rugby tournament. ● Workers compensation insurance: These types of claims may start to emerge for assembly line workers, call centres and hotel staff. ● Travel insurance: DBRS Morningstar expects that a significant number of travel insurance claims will be reported because of coronavirus-related cancellations. ● Supply chain insurance: Companies that rely significantly on third-party providers for critical components or service may be able to make claims to recoup losses as a result of the interruption. ● Other policies that could trigger payouts include: business interruption, general liability, directors and officers, and pollution liability coverage.

KEY WORDINGS As ever, much will depend on wordings.

Simon Kilgour, insurance partner with law firm, CMS, says key considerations include: ● Direct trigger of loss? Insurance covers losses ‘proximately caused’ by an insured peril. In general terms, this means that a claim will be covered if the risk insured against is the direct or dominant trigger of the loss. Where coronavirus falls within the description of insured perils under a policy and the virus is the dominant cause of loss or injury suffered, it is likely that it will be covered subject to any relevant exclusions or policy conditions. Obvious examples of insurance cover where coronavirus could be the direct cause of loss are life and health policies.

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C O R O N AV I R U S

TRAVEL INSURANCE ● Exclusions:

Policies may contain exclusions for pandemics, which could exclude losses arising from coronavirus. Travel cover may also exclude cancellation claims where the advice of an “appropriate authority” at the time travel was booked was against travel to that particular destination, region or country; or where circumstances could reasonably have been foreseen as giving rise to a claim at the time of booking. ● Property damage: Business interruption (BI) insurance typically requires physical loss or damage to the insured’s property. Where a business sustains economic losses because many of its employees fall ill, claims under BI insurance will not usually be covered. If, however, it can be argued that the outbreak has caused property damage, the position may be different.

Disease at the location, contamination and pollution may be covered under property policies but the terms may be restrictive, with sub-limits applied. ● Legal liability: Where individuals’ infection by coronavirus can be traced to a particular place or activity, claims may be brought against businesses or individuals deemed responsible. These could, for example, include claims against employers, hospitals and medical staff, schools and universities, airlines, hotels and retail outlets for unreasonably exposing employees, patients, students or customers to the risk of contamination. Non-employers liability cover may exclude deliberate or reckless acts by the insured that could reasonably be expected to cause injury or damage. Whether an insured has acted recklessly may depend on whether it has complied with government guidance or requirements and whether actions taken are in line with similar businesses in its sector. ● Force majeure: Businesses will also be looking to the terms of their commercial contracts, including force majeure clauses, to determine whether they can recover uninsured losses or comply with their duty to mitigate losses claimed under available insurance cover. ●

GlobalData’s 2019 UK Consumer Survey found that Spain, the US, France, Greece and Italy are the most popular destinations among consumers purchasing travel insurance in the UK. Beatriz Benito, senior insurance analyst at GlobalData, says: “With coronavirus hitting all of the popular destinations, fears of contracting the virus mounting, and many finding that their travel is non-essential, consumers are turning to insurers to clarify their options.”

Travel insurance will provide cover for destinations where government agencies have warned against travel.

Ms Benito adds: “In the US, travel insurance comparison sites have reported an uptick in sales of more expensive ‘cancel for any reason’ (CFAR) travel policies.

TravelInsurance.com registered an increase of roughly 150% in CFAR policies sold during January and February 2020, compared to a year prior.”

EVENT CANCELLATION Heidi Lawson, a partner at law firm Cooley in Boston, says: “Without event cancellation coverage, most companies will hunt around for other possible sources of insurance.

Political risk insurance, which many companies may already have due to international investments or overseas operations, may cover losses as a result of a government shutdown or curfews.

“With many political risk policies, this form of indemnity often necessitates a waiting period of 90 days or more prior to coverage activation. By the time the political risk policy comes into force, there may be no need for it anymore.”

She adds that civil authority clauses in first-party policies can provide coverage for business income losses that arise when a civil authority prevents the policyholder from accessing their premises, which may happen when a civil authority blocks access to a property facing an outbreak. These coverages also typically have waiting periods (sometimes 72 hours) before coverage can be triggered. Notably, such coverages will often depend on whether there is a requirement of physical loss, which may not be present in an outbreak.

Directors and officers (D&O) insurance coverage may apply if investors or customers eventually sue a company and its directors and officers as a result of losses incurred from breaching a quarantine or failing to take timely or appropriate action to mitigate the impact of a disease, resulting in additional sickness, a company shutdown and, eventually, lost revenues as a result. However, one important thing to note is that many D&O policies have a broad bodily injury exclusion. As a result, coverage under a D&O policy depends on the precise policy wording and underlying facts.

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EMPLOYMENT Ms Lawson says another potential source of insurance might be under a company’s employment practice liability insurance, which can sometimes assist companies involved in actions by employees because of layoff or furlough claims due to government or company shutdowns.

Blair Adams, a partner at law firm Winckworth Sherwood, says: “The prediction that up to a fifth of UK workers could be off sick at the peak of the coronavirus outbreak means that businesses [including insurance] and other organisations are going to be stretched in a variety of ways, including in terms of workforce planning. Technology has a big part to play for businesses that can impose remote working or foreign travel bans, but for many organisations, remote working is impossible or only marginally significant.

“Businesses could potentially have to deal with mass sickness absences, potentially unsafe workplaces and employees who need time off because of school closures or who are unwilling to travel to work for fear of infection. These novel circumstances will bring to the fore legal issues that do not arise in business-as-usual operations.”

Tina Chander, partner and head of the employment team at law firm Wright Hassall, warns: “Employers must also take steps to ensure that no members of staff, customers or suppliers are treated differently because of their race or ethnicity. It may be appropriate to remind staff that jokes and banter, even if lighthearted, may easily slip over the line to become unlawful harassment and/or discrimination, for which an employer may be liable.

“Employers can avoid liability if they can show they took ‘all reasonable steps’ to prevent employees behaving in such a manner, which includes having well-publicised diversity and harassment policies and training all staff on the issue. Managers must also be trained about their responsibility to identify and prevent discriminatory behaviour.”

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C O R O N AV I R U S

LESSONS FROM HONG KONG Kenny Siu reviews the recent pandemic in Asia and reflects on how the profession has reacted

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C O R O N AV I R U S

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ith the coronavirus pandemic taking hold across the world and already having a negative effect on the global economy, every nation is doing its best to stabilise the spread of the virus, keep the public safe and prepare for the process of recovery.

Asia was the first region to bear the brunt of Covid-19 and virtually all businesses have been impacted by the virus. However, important lessons were learned from the SARS epidemic that hit Asia in 2003. Many small businesses seemed to understand the situation, were ready to adjust and were determined to survive.

Dreadful memories of that last outbreak meant people did not take precautionary measures lightly and reacted quickly to reduce the chances of the disease spreading.

GETTY

IN HONG KONG, AT THE TIME OF WRITING THIS ARTICLE IN APRIL, WE EXPECT THAT A NORMAL WAY OF LIFE MAY RETURN NEAR THE BEGINNING OF QUARTER THREE

One key factor has been to have in place a robust business continuity plan to protect business, employees and customers. These plans should come with both short-term and longer-term strategies for companies to continue to operate during a virus outbreak, as we ultimately have no idea how long a pandemic will last.

In Hong Kong, at the time of writing this article in April, we expect that a normal way of life may return near the beginning of quarter three.

SWIFT REACTION

CII HONG KONG At the CII Hong Kong, our top priority is to ensure the health and safety of our CII staff and members. We encouraged our staff to work from home with flexible hours, as well as supplying masks and hand sanitiser where required.

We rescheduled our CII paper-based examinations to later dates to avoid group gatherings.

No action was required from members for this as the CII automatically transferred candidates across to the October sitting. We are also organising online continuing professional development (CPD) webinars and have produced new digital content for the wider profession.

I expect there may be ways in which we adapt and update working methods that stay with us after the pandemic is over. I think the profession will continue to further utilise digital platforms to operate its business and work towards a more efficient underwriting and claims process; it will further enhance business continuity plans in more detail; and digitalisation development will remain one of the top priorities for insurance companies.

As for CII Hong Kong, we will continue to offer more learning and knowledge content such as online webinars to cope with the demand from our members and the wider profession.

Of course, this is a difficult time for all of us, but we must continue to serve our customers with openness and honesty during a period when they need us the most. This will be a critical time in showing the standards and professionalism of our sector and building trust with the public. ●

WE WILL CONTINUE TO OFFER MORE LEARNING AND KNOWLEDGE CONTENT SUCH AS ONLINE WEBINARS TO COPE WITH THE DEMAND FROM OUR MEMBERS AND THE WIDER PROFESSION

During the Covid-19 outbreak, many insurance and financial services companies in Asia successfully implemented business continuity plans swiftly, arranging staff to work from home, stopping non-essential travel and applying flexible working hours to minimise the risk of virus infection.

Many companies also cancelled scheduled public and customer events to avoid gathering large groups of people. To sustain business in the longer term, many companies have switched their distribution and communications to online digital platforms to cope with the change in customer behaviour during the coming months.

Despite best efforts, however, economic recession is threatening many businesses in the Asia-Pacific region and we fully understand that all professions are facing uncertainty and increased risks.

It is important that the insurance profession shows strength and prepares for the possible business rebound. For example, some insurance companies in Asia have taken positive action to offer extended products’ medical coverage for existing policyholders, as well as launching new insurance policies specifically to cover the Covid-19 virus. These are good examples of how we can turn crisis into opportunity.

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Kenny Siu is regional director of CII Hong Kong and Asia Pacific

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FLOODING

RAPID RESPONSE 24

Insurers are often criticised in the wake of disasters but, as a succession of floods swept across the UK this winter, the profession was working hard to show its value in a crisis

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ore than £200bn of assets in the UK are at risk of being impacted by flooding, involving some 5.2 million properties, according to the Environment Agency.

This comes as climate change scientists warn that global warming is likely to result in yet more flooding for the UK in the future.

Following the recent storms, the UK government announced plans to almost double its spending on flood defences. There is also talk of a radical rethink on how the country manages flood protection, with a new strategy expected in the Spring (although this date is now likely to be pushed back due to the ongoing Covid-19 crisis).

Hints are emerging that the Environment Agency might move away from limitlessly high walls and towards a policy of encouraging affected

STORM PAYOUTS Initial ABI estimates show payouts from Storms Ciara and Dennis: ● Total payments to customers estimated at £363m. ● A total of 82,000 claims have been received for flood and wind damage; of these, 64,300 were for damaged homes and possessions, 10,600 for businesses and stock, while 7,100 related to damaged vehicles.

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FLOODING

Added to that, flooding in parts of south Yorkshire and the Midlands in November last year is set to cost insurers in excess of £110m. The last time several storms of significance struck in quick succession was in December 2015, when Storms Eva, Frank and Desmond caused insured damaged valued at £1.3bn, according to ABI.

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FUTURE RISK homeowners and businesses to move out of flood zones – a radical suggestion.

And it is not just the UK but much of Europe too that has been rethinking their approach to flood defences. Insurer Aon has reported that Windstorm Ciara – also known in some locations as Sabine – led to significant impacts across 17 separate European countries. At least 14 people were killed and major wind-related damage was incurred by property and automobiles. Preliminary public estimates by insurers placed the total insured loss at more than €1bn (£0.89bn), with the majority occurring in Germany. The total economic loss will be even greater.

Michal Lorinc, catastrophe analyst for Aon’s Impact Forecasting team, says: “February was a meteorologically active month for windstorms in Europe, as no fewer than six notable storms traversed western and central sections of the continent. The most significant was Windstorm Ciara (Sabine), which became the costliest storm since Friederike in 2018.

“Insurers have now noted nearly £2.38bn in payouts from the 2019/2020 season, which is above this century’s average for the peril, though far smaller than peak years in 1990 and 1999.”

The UK’s Association of British Insurers (ABI) adds that UK insurers expect to make payments to customers hit by the recent Storms Ciara and Dennis of more than £360m. It says insurers made initial emergency payments of more than £7.7m to help flooded homeowners and businesses in the immediate aftermath of the flooding and wind damage, with repairs to many properties underway before the government’s announcement that all but essential key workers should stay at home to slow the spread of the coronavirus. They have also arranged and paid for emergency temporary alternative accommodation for families whose homes are uninhabitable.

So, how is the insurance profession reacting and preparing for future events?

Flood Re – the not-for-profit, joint initiative between government and insurers – has launched a local campaign to raise awareness that those living in high flood-risk areas can continue to get affordable home insurance.

It says that since its launch in 2016, the availability and affordability of home insurance for householders at risk of flooding has improved significantly. Independent research has shown that 93% of householders whose property has flooded previously are able to receive quotes from five or more insurers – compared to 0% before the introduction of the scheme – and four out of five householders with previous flood claims have been able to find quotes that are more than 50% cheaper.

However, UK (re)insurer Aviva’s global chief executive Colm Holmes has emphasised the importance of getting flood resilience right and recently called for Flood Re’s insurance scheme to be extended to homes built since 2009.

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BREAKING THE FIGURES DOWN Flood claims with estimated total payout of £214m: ● 3,350 domestic property flood claims, totalling an estimated £107m; the average cost of repairing a flood damaged home will be about £32,000. ● 1,500 commercial property flood claims, £85m. ● 3,600 motor claims, £21.7m.

Windstorm damage with estimated payout of £149m: ● 61,000 domestic property claims, totalling £77m. ● 9,000 commercial property claims, £61m. ● 3,500 motor claims, £11m.

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FLOODING

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Aviva, which reported heavy losses from floods last year in its recent results, is among the insurers and bodies that have been working closely with the government’s Department for Environment, Food and Rural Affairs (Defra) on flood resilience, along with the CII.

PROPERTY RESILIENCE

approach: the government, insurance and the customer. The code sets out six standards, each with an aim and number of requirements that need to be met: 1. Hazard assessment.

2. Property survey.

3. Options development.

4. Construction.

5. Commissioning and handover.

6. Operation and maintenance.

Some of the recommended precautionary measures include: ● Install devices to prevent water from entering the property. ● Flood gates on doors and windows. ● Fit non-return valves on toilets or other waste systems. ● Install self-closing air bricks.

There are also recommended precautions to help minimise damage caused, including: ● Replace carpets with tile or concrete floors. ● Move plug sockets above flood level. ● Install freestanding kitchen units on legs. ● Keep important items upstairs. ● Replace concrete or tarmac outside with permeable materials.

With an increase in the number of similar storms likely due to the increasing threat of climate change, it is hoped that this code will help individuals and businesses understand the practical measures they can implement. This should then help to restore them quicker.

In addition to the code, two complementary guidance documents have been developed, one aimed at planners and the other aimed at homeowners and businesses. ●

5.2m

Figureheads from across the insurance profession got together to mark the launch of the property flood resilience code of practice, hosted by Business in the Community (BITC) at the House of Commons on 10 February – the day that Storm Ciara hit.

The new code is the result of years of work that began as an profession-led Property Flood Resilience Roundtable set up by Defra, following the publication of the Property Flood Resilience Action Plan in 2016.

The code is funded by Aviva, the Environment Agency, the Welsh government, the Department for Infrastructure, Scottish Government and is supported by the Chartered Institution of Water and Environmental Management, the Institution of Civil Engineers and the Royal Institution of Chartered Surveyors. Further support and review was provided by a project steering group made up of 55 members from across industry, academia and the public sector.

A spokesperson from the CII says: “With Storm Ciara hitting the UK on the same day, the need for a profession-wide set of guidance and standards is more crucial than ever. At present, there is a lack of regulation and accepted standards around the specification and deployment of property flood prevention, limiting its potential positive impact.”

While not all flood damage can be prevented, it can be limited. Flood resilience should have a tripartite

PROPERTIES ARE AT RISK OF BEING IMPACTED BY FLOODING IN THE UK

Liz Booth is contributing editor of the CII

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R E G U L ATO RY R A D A R

The CII takes a look att what’s nd public new on the policy and affairs front this month

WHAT’S ON THE RADAR?

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mid the current coronavirus crisis, the Financial Conduct Authority (FCA) has launched its annual 2020/21 business plan, with its response to the Covid-19 situation heavily featured.

For the short to medium term, the FCA sets out how it will be working to ensure: that markets function well; that the most vulnerable are protected; that the impact of firm failure is minimised; that it tackles scams; and that consumers and small firms are treated fairly.

Some of the measures and guidance the FCA has implemented are: ● Setting out clear expectations for general insurance providers – including home, travel and motor insurance. ● Providing information for consumers to help them understand what to expect from their insurers during this time. ● Providing information on how the government’s rules on key workers should be applied to financial services firms. ● Highlighting to consumers the increased risk of scammers trying to exploit the uncertainty created by the current situation. ● Reviewing FCA workplans to delay activity that is not critical to protecting consumers and market integrity in the short term, allowing firms to focus on supporting their customers during this time.

The CII has been engaging with the FCA and other regulators and government bodies since the start of this crisis, to ensure our members are supported in delivering the best possible outcomes for their customers and we are pleased with how understanding they have all been during such a difficult situation.

FUTURE PLANS As expected, the FCA’s efforts and energies are directed at the current state of play, but in its business plan it has outlined what it will be looking at on a longer-term basis.

One such area is a way in which consumers are offered fair-value products. The FCA’s view is that in a digital age, as use of consumer data and behaviour through digital channels increases, the risk that consumers are not treated fairly in the pricing and other terms they receive increases too.

With this in mind, the FCA has committed to reforming its own internal processes; reviewing how it uses information it receives; and investing in its capabilities, systems and technology. All this with the addendum that it will look for the best value for money possible within services – something firms will hope to see alongside the FCA’s announcement of fee increases across the board.

At the heart of this announcement sits the commitment to change the regulatory framework and not just in response to a post-Brexit world. As part of the regulator’s determination to shift focus onto outcomes, it wants to change the fundamental priorities of its regulatory interventions to ones aimed at principles. This, the FCA says, is to empower consumers to make good decisions, while safeguarding their financial wellbeing.

Outcome-based regulation is a far more effective means of regulating a modern market and a shift to this approach (trialled for several years now) is one we can certainly welcome.

The CII’s commitment throughout all of this, and beyond, will be to continue to engage with and inform our members, while working with regulators and government to ensure insurance professionals can continue to do all they can to focus on the tasks at hand and ensure that consumer interest is protected.

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Shayne Halfpenny-Ray is policy and public affairs adviser of the CII

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EMPLOYMENT

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elationship-at-work (RAW) policies were relics from a bygone age of marriage bars that forced women out of employment if they got engaged. Now, the #MeToo movement revelations that employees are regularly subjected to workplace sexual abuse are forcing firms to reconsider mandating behaviour rules.

Disgraced film producer Harvey Weinstein received a 23-year sentence in March for the rape and sexual assault of two women who worked with or for him. His victims’ pursuit of justice sparked a worldwide movement to fight harassment and for better protection at work.

“RAW policies should not be confused with those actions that would be illegal with or without

them, including sexual harassment,” Emilie Cole, a partner at law firm Irwin Mitchell points out. “But they are about transparency and expectations of people, and they do set the right tone for individuals and that resonates across your culture.”

Corporate cultures that encouraged punitive use of non-disclosure agreements (NDAs) as a catchall solution to human resources problems, for example, have contributed to silencing victims and allowing abuses to continue.

“Focusing just on NDAs is no longer appropriate in the City of London,” says Richard Fox, an employment partner at law firm Kingsley Napley.

“Especially if the employer and relevant employees work in a regulated environment.”

A company is, of course, entitled to protect its reputation. “An NDA may be appropriate if a claim is disputed and, for example, the complainant makes requests the employer cannot guarantee, such as dismissals, and there is no other option than for them to leave the business,” says Simon Robinson, an employment lawyer at Robinson Ralph.

But authorities and individuals increasingly expect companies to instead address underlying ‘fit and proper’ issues. Ms Cole is confident that for regulators, “this theme will dominate the headlines in 2020”.

Where a sexual harassment allegation is upheld, “there is a strong argument to take an approach that doesn’t include a confidentiality agreement”, Mr Robinson adds.

PROACTIVE PREVENTION Ideally, companies want to avoid ever contemplating an NDA. Proactive prevention, in the form of workplace behaviour policies and training, is emerging as the preferred method of protecting staff and firms from legal claims relating to intimidation and misuse of power.

Emmy Granström, marketing director at Steel Eye, a financial compliance and data analytics firm, says: “They are definitely a better way forward than a reactive approach.”

She adds: “Gender equality – at all levels – is another proactive focus that firms should prioritise, as this will even the ‘power playing field’ and reinforce a more equal culture of what

RULES OF ENGAGEMENT Following the #MeToo movement, Laura Miller asks: Should you have a relationships policy at work?

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SHUTTERSTOCK

EMPLOYMENT

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is and is not acceptable.”

Relationships policies are not common because employers shy away from them for fear of being perceived as telling staff they cannot have a private life.

“But the issue is not about preventing relationships,” says Mr Robinson, who recommends RAW policies for large organisations, adding: “It is about being transparent and communicating to the entire workforce that relationships between team members will be handled appropriately.”

Drafting workplace relationship rules is a delicate process. Employees will not want to be told who they can fall in love with.

“The important point is the policy should require disclosure,” says Mr Fox. “Without that, the employer does not know what it is dealing with and how best to address risk factors.”

Firms should only create a relationships policy that they are able to effectively enforce – people are human and the workplace is where most people spend the majority of their time.

Bev Shah, chief executive and founder of City Hive, which champions a more balanced asset and investment management industry, says a blanket ban on relationships can create more problems than it solves.

“You will have conditions where people feel they must lie, or where managers have to turn a blind eye when they can see something happening. It puts a burden on HR to police people,” she says.

“It’s better for firms to not create situations where staff relationships may take a more personal turn.

Having a good policy on travel and events can help.”

Continuing to act professionally once in a relationship is essential, she adds: “Managers should set or clarify expectations with their staff.”

Ultimately, the success of a company’s relationship policy will come down to how much sensitivity was used when drafting it and how well it is enforced.

Mr Robinson says: “It is pointless to write them and then leave them

in a file on a shelf to get dusty.

Policies should be living and breathing and firms should not only show they exist but ensure that also employees know they exist.”

Managers should be fully trained and junior team members given copies or links via the intranet, he advises.

“This comes with an expense, but it will be far less than that of defending a claim,” he cautions, “not only in terms of proceedings but also the ripple effect of staff churn, recruitment fees, morale and client reputation.”

Protection from legal claims is often what firms want from a relationship policy. Mr Fox says: “It can help but it is not the full answer. Not everyone abides by these policies and contravention is not always easy to uncover. But it undoubtedly helps to have one.”

Leadership buy-in will be key, says Ms Shah: “A manager should not be in a relationship with a subordinate, as it creates a power imbalance and conflict of interest. Firms should create the expectation that managers have good judgement in this area as in other relational areas, and the role of HR should be to ensure that employees are comfortable in the workplace.”

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CONTROLLING THE IMPACT Ultimately, firms cannot dictate who employees fall in love with. But appropriate measures can mimimise any impact – commercial or cultural – if and when partnerships do form, such as favouritism and being mindful of the effects on the wider team.

From a corporate reputation perspective, if the situation is more sinister, companies will want to be able to show they took the risk seriously and acted to prevent harm to employees.

Mr Robinson says: “By putting policies in place and doing as much as possible to communicate their importance, firms improve their chances of establishing a statutory defence. They can demonstrate they took ‘such steps as were reasonably practical’ to prevent employees from committing harassment.” ● Laura Miller is a freelance journalist

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H E A LT H

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Do health insurers have a part to play in providing for the nation’s health and wellbeing?

Bobbi Sills reports

SUPPORT WORK

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here are few institutions that evoke public pride like the National Health Service (NHS). Now in its 70th year, however, the system is facing the huge pressure of a rapidly increasing population.

And at the time of writing, the NHS faces the unprecedented strain of the coronavirus pandemic, with private health companies increasingly working alongside the service to provide crucial support.

The recent developments of Covid-19 have highlighted the importance of the NHS, as well

as the need for further funding. But could health insurers offer welcome relief to the cherished system that provides free healthcare to thousands of people annually?

STEPPING UP The topic of whether health insurers have a part to play in providing for the nation’s health and wellbeing was debated at the Annual Conference 2020, hosted by the Association of British Insurers (ABI) in February. Among the speakers were Fiona Harris, chief financial officer at BUPA; Debbie Kennedy, protection director at LV; and Dr Keith Klintworth, managing director of VitalityHealth.

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H E A LT H

In 2019, the government published its greenpaper, Advancing Our Health: Prevention in the 2020s, pledging a decade of proactive health prevention.

A key focus of the paper was on taking early action against major preventable health problems as well as tackling key issues including mental health and obesity.

According to Ms Harris, insurance and protection products are increasingly providing additional services aimed at prevention and rehabilitation that can promote a healthy lifestyle and, in theory, reduce pressure on the NHS. Ms Harris said: “Health insurance is a very efficient way to enable both employees and consumers to invest in and engage in their own health. We are seeing huge proactive use of direct access or virtual GP services, with consumers wanting to engage in their own healthcare journey.”

Major insurers such as BUPA, Axa and Vitality offer customers 24/7 access to GP consultation services, allowing them to speak with a healthcare professional whenever and wherever they wish.

By encouraging the use of these services wherever possible and ideally before the individual falls ill, insurers can assist in the general wellbeing of the members they cover, particularly where healthy lifestyle changes are encouraged, said Ms Harris.

Ms Harris pointed to occupational health as a key area where insurers are well placed to answer government calls for businesses to provide better support to employees struggling with mental health issues.

Services such as employee assistance programmes provide early intervention in potential long-term health issues, by providing support to employees for personal and work-related issues, according to Ms Harris.

She told insurance professionals gathered at the event: “In the UK, the NHS can’t afford to go it alone and doesn’t need to.”

Ms Harris’s view was shared by Ms Kennedy, who said: “Private and public dynamics should not be working at odds with each other, as it is not sustainable for the NHS.”

2.2%

ANNUAL INCREASE IN PATIENT ATTENDANCES AT A&E FROM 2006 TO 2019

COVID-19 The coronavirus health crisis has raised new questions about the potential of private health insurance to reduce pressure on the healthcare system.

In March, the private hospital sector struck a historic deal with the NHS to relocate its entire national hospital capacity and resources, including more than 20,000 staff, in a bid to fight the pandemic.

NUMBER OF ANNUAL ATTENDANCES TO A&E

IMAGE: IKON

With GP surgeries closed and nonurgent operations and procedures cancelled as a result of the UK lockdown measures, insurers such as BUPA have expanded their services to assist customers with managing their health from home.

In response to the crisis, David Hynman, CEO of BUPA, said: “Across our network of health clinics, we are rapidly working through how we can offer GP services and other resources we have access to, in order to support NHS 111 or other vital NHS services.”

Increased mental health facilities including remote consultations are being rolled out to customers, as well as the Family Mental HealthLine for parents and carers to gain advice and support regarding their child’s emotional wellbeing.

Dr Klintworth said: “We are committed to doing everything we can to support the country through this pandemic and keeping our members healthy and safe. Currently, a range of hospital services remain open to our members and we are expanding our primary care services, which will continue to be offered digitally.”

Dr Klintworth announced that Vitality is to expand access to its GP advice telephone hotline for clinical guidance during Covid-19, to include all life and invest insurance members.

Previously, the service was only available to health insurance members.

With the demand for NHS 111 services at an all-time high and, with minor health complaints increasingly being put on the backburner as a result of Covid-19, the expansion of private health services may well help to fill the gap and relieve pressure on the system.

As the NHS concentrates efforts on dealing with overwhelming demand, it seems the old adage that prevention is better than cure is one health insurers should strive to fulfil. ●

England, year ending March 26,000,000 24,000,000 22,000,000 20,000,000 18,000,000 16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Source: NHS England

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Bobbi Sills is communications executive of the CII

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MOTOR

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he way we drive is evolving and the pace of change will only increase as we move closer to the adoption of fully autonomous vehicles.

Automation is already becoming a reality in the cars on the road and the designs on the drawing board, however, we still do not know or fully understand how it will impact drivers, society or the insurance profession.

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AU T FO OM PE R T AT OP HE IC LE ?

Tim E au vers tom he ati d ex on am in i mo nes tor mo ins bilit ur y a an ce nd

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MOTOR

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GUIDING PRINCIPLES As motor insurers prepare for this change, the Global Federation of Insurance Associations (GFIA) has released its guiding principles for the future of mobility and motor insurance.

These principles aim to ensure that the highest safety standards are maintained for all vehicles, while reflecting the technology used to operate the vehicles. They also try to determine new risks such as cyber incidents and ensure fair access to vehicle data for underwriting, rating, claims and fraud-fighting purposes, as well as for devising more innovative services around the vehicles.

Finally, they seek to address liability considerations to ensure claims proceed smoothly.

In terms of safety, the GFIA wants to see standards for the interface between the technology, which will operate the vehicle in certain instances, and the human, who will operate the vehicle in others.

The GFIA says that insurance regulators “should encourage the development of an open and competitive market for coverage for new risks associated with operating a vehicle, such as cyber incidents”.

In addition, motor insurers “should be able to limit coverage to reasonable use and proper maintenance/ updates”. The GFIA adds: “Automated driving should not be available if any safety-critical software updates are not installed.”

Don Forgeron, GFIA vice-president and chair of the disruptive technology working group, says: “For public acceptance, it is essential for these new cars to have high safety standards and an efficient compensation

COST COMPARISON

Source: Victoria Transport Policy Institute

$2.50 Dollars Per Mile

Both cars and drivers – whether human or automated – are changing as the shift toward electric vehicles combines with the emergence of new digitally enabled models of mobility and increasing automation of driving. These automated vehicles will change motor insurance in terms of underwriting, pricing, sales, distribution and claims management.

Autonomous Vehicles (AV) Human Driven (HD)

$2.00 $1.50 $1.00 $0.50 $0.00 HD car variable

Shared AV

Public AV variable HD car costs average transit

mechanism for victims of accidents, such as insurance.

“For insurers to be able to provide cover, it is essential for them to have access to the data generated by both connected and automated vehicles, so that they can understand the risks they are underwriting. Access to this data is also essential in handling claims as efficiently as possible – for example, data from vehicles regarding an accident – and in helping insurers to provide their customers with new products and services in and around the vehicle.

“However, vehicle manufacturers currently act as the gateway to vehicle data, when it is consumers that should really be in the driving seat. For a successful uptake of these vehicles, it is essential for consumers to really decide who has access to their vehicle data and for what reasons.”

LEVEL OF AUTOMATION Autonomous driving has several different levels – from ‘driver assistance’ where features aid safe driving but the driver remains in control, to ‘fully autonomous’ which is a completely driverless car, able to monitor and manoeuvre through all road conditions.

The levels inbetween gradually progress the amount of automation from assistance with speed and steering, to vehicles that can drive themselves under limited conditions.

Graeme Trudgill, executive director at the British Insurance Brokers’ Association, says: “There are many considerations for any insurance broker considering the future of the motor insurance market.

Ongoing debate includes the Law Commission’s approach to insurance for

AV Taxi

AV Average

Ridehailing

HD Taxi

autonomous vehicles, where liability requirements could change. In addition, the increasingly wide use of databases and credit referencing has had a significant impact already and will continue to do so.”

Autonomous vehicles will create and collect huge volumes of data and its use will be vital to the success of future motoring.

The GFIA says that vehicle data should be available on fair, reasonable and nondiscriminatory terms that enable fair competition among service providers.

It also says that, in the event of a collision involving an automated vehicle, insurers should have access to sufficient data to establish whether the automated driving system was in control leading up to the incident. All collision and emergency system intervention events should trigger a data transmission.

Also, as with any connected device, a connected vehicle is potentially vulnerable to hacking or security breaches, creating a whole new class of risks that drivers, manufacturers and insurers will need to learn to manage.

Mr Forgeron concludes: “Access to vehicle data can provide a huge opportunity for insurers to improve their customers’ experience in a variety of ways. This includes the potential offered by vehicle-generated data to underwrite policies more accurately, manage claims and fight fraud more effectively, while also to provide more advanced services in and around vehicles. The use of vehiclegenerated data will make both the underwriting process and claims decisions more accurate and more efficient.” ●

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Tim Evershed is a freelance journalist

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TECHNOLOGY

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“ALEXA, AM I COVERED?”

rom weather updates and music requests to online factchecking, virtual assistants such as Alexa, Siri and Google Assistant are becoming commonplace in the UK. Set to outnumber humans by 2023, questions still remain over how insurers should embrace this technology.

Although these devices first appeared 10 years ago, insurance sector interest has been relatively muted. But, with LV= launching the first car insurance voice skill for Alexa and Google Assistant in January, this could be about to change.

Through its application, LV= customers can get answers to the most commonly asked questions about their motor policy and, since launch, it has recorded nearly 500 sessions across Amazon and Google smart devices.

“Car insurance is our largest product so we thought it was logical to start where we could have the most significant impact, while at the same time test and learn this new technology,” explains Jon Mansley, sales and marketing director at LV= general insurance.

As virtual assistants become ever more embedded in our daily lives, Sam Barrett looks at the insurers taking tentative steps to utilise this technology

INCREASING UPTAKE Although it claims the title of first UK motor insurer to use the technology, LV= is not the first insurer to get into bed with Alexa. Aviva launched a pension skill in August 2018, allowing customers to ask the virtual assistant how much was in their pension pot, while DAS launched a legal expenses voice skill in January 2018, following it with a cybersecurity one later the same year. Robin Stagg, head of propositions and marketing at DAS UK

These are the top questions asked on LV=’s voice assistant. ● Can I drive another car on my policy? ● Can I drive abroad? ● Are my windows covered? ● Am I covered for fire? ● When do I have to pay an excess?

ISTOCK

TOP FIVE MOTOR INSURANCE QUESTIONS

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TECHNOLOGY

Group, says it is important for insurers to use these platforms and that providing content on virtual assistants is a great way to raise awareness. “Everyone knows how motor insurance works but as soon as you veer off this, awareness can start to drop,” he explains. “Using Alexa can help to raise consumer awareness and understanding of other areas of insurance that might be of benefit.”

As an example, although legal risks are increasing, there is little awareness of how a legal expenses product could provide protection.

Drawing consumers’ attention to this could benefit them, but also the insurance sector.

While some insurers are using virtual assistants to answer simple policy-related questions, others are taking a slightly different approach.

Health insurer Vitality offers a voice skill that focuses on health and

fitness, enabling users to access recipes, workouts and healthy living tips. This supports its philosophy on health risk reduction, but it also means that its customers can interact with it on a more regular basis, potentially creating a deeper relationship.

USING ALEXA CAN HELP TO RAISE CONSUMER AWARENESS AND UNDERSTANDING OF OTHER AREAS OF INSURANCE THAT MIGHT BE OF BENEFIT

LOOKING FORWARD Although insurers are taking their first tentative steps with virtual assistants, many are already considering what the future holds.

For some, the leap from answering simple policy questions to taking out cover and making claims could be a little too far. “Virtual assistants do not yet lend themselves to long interactions that are multi-layered,” says Mr Stagg. “There are too many nuances with a quotation: Alexa isn’t about to take a broker’s lunch.”

Paul Yates, product strategy director at life insurance technology company iPipeline, agrees. “I certainly cannot see it being used to take out protection: it is too complex,” he says.

“But it might be an option for simpler products such as travel insurance or to renew a motor insurance policy.

It could also be part of an omnichannel approach, with the customer completing the application online or over the phone and buying it through a voice assistant.”

These potential applications are on LV='s Mr Mansley’s radar too. “We are keen to test and learn from the technology early,” he says. “Using Alexa for more complex areas such as claims or quotations is on our roadmap of future development, along with introducing all of our other general insurance products.”

SECTORAL IMPLICATIONS As well as considering how consumers will take to insurance on their virtual assistants, it is also important to look at what this development means for the sector itself. Introducing voice skills does enable customers to simply ‘ask Alexa’ rather than contact their insurer, potentially putting call centre jobs on the line.

While this may be the case, Mr Yates says that, rather than reducing the number of employees, he sees the emergence of virtual assistants as an enabler for different jobs. “Roles will change,” he says. “Some will be working on more complex cases but insurers will also need people to design this technology.”

Uncertainty around what to include or the level of demand may be deterring the insurance profession from embracing Alexa and her virtual peers, but Mr Yates believes it is a platform that insurers cannot afford to ignore. “It is another part of digital transformation,” he says. “There is absolutely no doubt that usage will grow and it will become just another part of an insurer’s omnichannel approach to customer service. Insurers that fail to embrace it could find themselves falling behind.” ●

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Sam Barrett is a freelance journalist

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20/04/2020 09:19

DISCLOSURE

With some insurers still taking a blanket approach to disclosure of criminal convictions, Aamina Zafar takes a look at customers’ rights in this area

CRIMINAL

OVERSIGHT? 36

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ore must be done to end the confusion around disclosure of criminal convictions when obtaining insurance, an expert warns.

Roy Rodger, who runs Meols-based Insurance Training and Consultancy, says there has been a lot of uncertainty in the profession around which offences have to be disclosed.

This comes after he recently helped a man recover several hundreds of pounds from an insurer that had incorrectly loaded his premium on the strength of unspent convictions.

He says: “In the course of many years of training and consultancy in the insurance profession, I have found there is still much confusion and misunderstanding of how the Rehabilitation of Offenders Act 1974 and the subsequent amendments introduced by the Legal Aid, Sentencing and Punishment of Offenders Act 2012 operates.

“As a result of this, I feel that many customers are treated unfairly and are penalised through the industry’s lack of awareness of the legal position.

“On the other side of the coin, I have no doubt that many business opportunities are missed owing to, for example, presentations and applications showing spent offences.

It is important that the insurance profession educates its staff and adapts its systems to ensure that customers are treated fairly.”

He believes factors that have contributed to the confusion include how long a conviction is valid for, because legislation prescribes various rehabilitation periods depending on the penalty. Other factors that add to the misunderstanding include the age of an offender.

Mr Rodger says that is because when an offender is aged less than 18 at the time of conviction, the rehabilitation period is generally reduced but this is not widely known.

Mr Rodger, who is a Fellow of the

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DISCLOSURE

CII, also raises the issue of dragthrough, where an offender receives a conviction for another offence before the earlier offence is spent.

The legislation in a number of cases requires both offences to be regarded as unspent until the later offence is spent.

Mr Rodger’s warning follows guidance released last year by the Association of British Insurers (ABI), aimed at helping insurers to treat people with criminal convictions fairly and in compliance

with the law. This is because there are more than 11 million people in the UK with criminal convictions and some say they have encountered difficulties when looking for insurance or making a claim.

BLANKET APPROACH Despite the update, Christopher Stacey, co-director of charity Unlock, which supports people with convictions, believes the problem is down to insurers taking a blanket approach towards applicants who declare any type of conviction.

He says: “What is ultimately important is that insurers themselves update their policies and practices.

Although the guidance is clear to insurers about only considering unspent convictions, it fails to explain the evidence base for approaching unspent convictions in such a generic way and appears to simply assume that any unspent conviction is material for insurance purposes.

There remains a significant lack of transparency about what, if any, evidence insurers rely on.

“Critically, we have never seen any robust evidence for the claim that correlates criminal records with a higher insurance risk. Quite the opposite. The specialist brokers that work quietly behind the scenes have some of the best claims ratios of all of their customers.

The updated guidance fails to address this.”

Aviva advocates treating customers fairly by ensuring it clearly signposts information for customers with past convictions throughout its sales journey.

Erik Nelson, a spokesman for Aviva, adds: “We make clear in our sales journey that we are only concerned with unspent criminal convictions in

terms of our underwriting acceptance criteria and we deal with this by an assumption in our online sales journey.

This is accompanied by help text that guides individuals to where they can obtain assistance in determining whether convictions are spent.”

GI FOCUS Interestingly, past convictions seem to mainly be an issue for general insurance.

Royal London, which offers life, critical illness and income protection, does not ask about past convictions on applications because it does not factor this into its decision making.

A similar sentiment is expressed

by Martin Bamford, Chartered financial planner and director of client education at Surrey-based Informed Choice. He says he has rarely faced a problem surrounding a client’s disclosure of past convictions during his lengthy career.

He adds: “Disclosure is a perennial topic in the insurance sector. Getting it right is essential if we are to ensure that cover is valid and claims are met.

Only once in my 18-year career as a financial adviser have I faced a challenge with a client around their disclosure of a criminal conviction for income protection insurance. In that case, they were unsure whether a caution for drug possession, much earlier in life, needed to be disclosed to insurers. The disclosure didn’t result in any change to the premium.

“We place so much emphasis on the consequences of non-disclosure and misrepresentation, but relatively little on the rights of insurance customers to privacy.” ●

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IMAGE: IKON

WE PLACE SO MUCH EMPHASIS ON THE CONSEQUENCES OF NON-DISCLOSURE AND MISREPRESENTATION, AND RELATIVELY LITTLE ON THE RIGHTS OF INSURANCE CUSTOMERS TO PRIVACY

Aamina Zafar is a freelance journalist

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CYBER

THE COST OF UNINTENDED COVER Insurers are tightening up commercial property insurance policies as a result of Prudential Regulation Authority work, Simoney Kyriakou reports

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ack in 2017, the Prudential Regulation Authority (PRA) set out to investigate non-affirmative and affirmative cyber risks in the general insurance market.

Then, in 2019, Anna Sweeney, director of insurance supervision at the PRA, wrote to insurance bosses, warning that firms needed to do much more in relation to cyber insurance underwriting risks.

The ‘Dear CEO’ letter highlighted a disconnect between the potential cost of claims relating to cyber loss, compared with the low premium volume. The PRA implied insurers could face high volatility and reputational damage in the event of a significant cyber loss, especially where commercial property insurance policies did not explicitly cover cyber – but did not explicitly exclude it, either.

Insurance companies have taken note of this, as well as missives from Lloyd’s of London mandating greater clarity over what commercial property insurance policies cover in relation to a cyberattack.

Moreover, anything that might be considered to be a cyber loss – for example, a data loss caused by flood or

fire damage to a business’s technology – is now being clarified or even removed from policies.

As a result, brokers and sector analysts have noticed a tightening up of existing and new policies.

Some businesses have been told their commercial property insurance cover is removing any elements of cover that arises from ‘traditional’ types of property loss. Others cannot get this cover when it comes to renewal or purchasing new policies, unless they spend more to get cyber cover as an add-on.

redrafting – which he claims is happening with nearly every insurer – goes “far beyond the intent of the Lloyd’s mandate”, which was supposed to bring clarity to what constitutes the insurance requirements for cyberattacks. Instead, it brings into the scope of this mandate any form of data loss, such as that caused by typical flood or fire damage to IT equipment.

Events that could lead to data loss include cyberattacks, the risk of fines under the General Data Protection Regulation, and climate changerelated events such as seasonal fire and

ALARMING TREND According to Rob Smart, technical director at insurance governance consultants Mactavish, this crackdown is leaving his business clients “exposed” and “underinsured” for technology-related risks.

He calls this an “alarming trend”, saying: “While we welcome attempts to bring greater transparency to the insurance market, the redrafting of many commercial property policies is leaving clients underinsured and exposed to a range of broadly ‘techrelated’ risks, which they had believed would be covered.”

Mr Smart believes this policy

IT SYSTEM SECURITY COVERAGE IS A NECESSARY PART OF COMMERCIAL INSURANCE. FROM DATA STORAGE SERVERS TO EMAIL LOGIN PASSWORDS, USB DOWNLOADS WITHIN THE COMPANY IT NETWORK, TO THIRDPARTY ONLINE PAYMENTS SERVICES – IT IS ALL COMMERCIAL RISK

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CYBER

flooding risk.

Chris Andrew, fraud director for BAE Systems, highlights the fact that many commercial building property forms were drafted years ago, so it was reasonable for the regulating bodies to encourage insurers to update policies where necessary. After all, cybercrime such as hacking, phishing and malware attacks hardly existed even 20 years ago.

Coverage is essential. He states: “IT system security coverage is a necessary part of commercial insurance. From data storage servers to email login passwords, USB downloads within the company IT network, to third-party online payments services – it is all

commercial risk.”

And, as such, it needs to be paid for – whether this means a hike in premiums for existing commercial property coverage, or that brokers recommend add-on tech and cyber insurance for their business clients.

NO EXCUSE Mark Andrews, director of insurance for Altus, says there “really is no excuse for data loss”, given the availability of cloud technology, simple backup and archive processes, as well as disaster recovery implementation. “Too many companies stick with legacy tech rather than upgrading,” he adds.

However, Mr Andrews adds, insurers could have taken a more measured approach: “Rather than stepping back from that risk, if they verified that necessary controls are in place, any subsequent loss would be an ‘extraordinary event’, because the business has done everything it can be expected to do, in which case it is something the insurer should cover.”

The fact remains, however, that clients wanting cover for data loss as part of a commercial property policy will have to purchase additional, specific cyber loss insurance.

This is making it harder for brokers and financial advisers who advise on insurance for their business-owning clients.

While the physical hardware should be covered, as the cost of damage is easy to measure, the loss of data is harder to quantify, as it is typically measured in business interruption and potential reputational damage.

However, Neil Liversidge, principal of West Riding Personal Financial Solutions, says that while it may be frustrating for business clients to rethink their coverage, it may benefit them in the long run.

“It is important in terms of pricing cover properly,” he says. “A small business might need a sum assured of, say £100,000 to restore its systems, a larger entity might need £5m.

“By making this cover an addon, well-run firms can assess how much cover they need and insure accordingly.”

Otherwise, if every policy automatically priced in data-loss risk for every company, Mr Liversidge says companies could see business insurance premiums “going through the roof for data-light businesses, with them effectively cross-subsidising the data-heavy”.

Mr Liversidge adds: “In my world, data is everything, but I’m looking at two cafes, which have nothing more sophisticated than a till. Premiums need to be pitched proportionately to the risk.” ●

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Simoney Kyriakou is a freelance journalist

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20/04/2020 09:21

UNDERWRITING

CHARTERED TERRITORY Emma Ann Hughes reflects on the launch of the new Chartered insurance underwriting agent aimed at supporting the growth of the MGA sector

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UNDERWRITING

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anaging General Agents (MGA’s) are one of the fastestgrowing segments of the insurance profession.

They carry the authority and responsibility to perform many functions that are ordinarily handled only by insurers. These usually include binding authorities, underwriting and pricing, appointing retail agents and settling claims.

According to the Managing General Agents Association (MGAA), more than 300 MGAs currently underwrite about 10% of the UK’s £47bn general insurance market premiums. The trade body expects demand for MGAs and their importance to the insurance profession will continue to grow in the years to come.

Since it was formed in 2011, the MGAA and its board of directors and specialist committees have been focused on shaping the future of delegated underwriting in the UK. That is why the MGAA supported the CII’s work to create a modern and relevant professional pathway for those working for MGAs today, along with its initiatives to attract fresh talent to the sector.

This work culminated in the launch of the CII’s Chartered Insurance Underwriting Agent title, which was unveiled at the Lloyd’s Library in March. MGAs at the event heard the benefits that this sector would derive, if individuals and firms strive for the new title.

A survey of existing Chartered firms

by ComRes in 2016 found 90% of them agreed Chartered status had enhanced the perception of the business as a professional organisation for new staff. A total of 67% of Chartered firms polled said the status helped attract new staff.

As a swiftly growing sector, a Chartered title can make a real difference to MGAs. At the launch event, MGAA managing director Peter Staddon said: “This new title proves the

A CHARTERED FIRM IS ACCREDITED BY A PROFESSIONAL BODY, INVESTS IN PEOPLE, EXCEEDS MINIMUM REGULATORY STANDARDS, COMMITS TO AN ETHICAL CODE OF CONDUCT BUT ALSO GIVES BACK TO SOCIETY AND THE PROFESSION professionalism of this sector and shows the consistency of what we do and why we do it. This status should support growth and help in delivering innovation and succession planning for the sector.

“Getting this new Chartered status to reflect what we do is great. Public trust will swell because it shows we are doing this voluntarily.”

IMPACT OF CHARTERED So, how can Chartered status improve the professionalism of the MGA sector and ensure the individuals working in it are going above and beyond to deliver for consumers?

And how does Chartered status encourage fresh faces to consider becoming an MGA? Steve Jenkins, development director of the CII, said research shows the end consumer and those contemplating their career understand Chartered practices are committed to ethics and keeping the knowledge and expertise of their workforce up to date.

When the end consumer is looking for financial or insurance advice, 80% of 500 consumers surveyed by the Institute of Customer Services in September 2019 were looking for a Chartered firm.

Mr Jenkins said: “A Chartered firm is bold and proud enough to make a public declaration of what it stands for when it comes to professional standards. These firms invest in their people more than they are required to do so.

“Today, organisations must play a broader role and be aware of responsibility to serve society. To bring the corporate Chartered ethos to life, we provide guidance and support to firms so that they are living and breathing this status. The guidance we provide enables them to put in place people development.

“A Chartered firm is accredited by a professional body, invests in people, exceeds minimum regulatory standards, commits to an ethical code of conduct but also gives back to society and the profession.”

Mr Jenkins explained that the criteria to achieve corporate Chartered insurance underwriting agent status focuses on leadership qualifications and membership, the core make-up of the workforce, commitment to professional development, alignment with the CII’s Code of Ethics, plus their established trading history.

To achieve corporate Chartered status, at least one board member must hold a Chartered title and the board must be CII members. On top of this, 90% of the MGA business’s core staff must be CII members.

MGAs at the launch event for the Chartered insurance underwriting agent title agreed the new status would help the sector to grow, nurture and retain talent.

Philip Williams, managing director and MGA at Simply Business and the first individual to be awarded the Chartered insurance underwriting agent title, said he believed the changing shape of the insurance market means it is likely that more MGAs will be needed in the next few years.

He said: “If you are serious about writing good quality insurance in the right kind of way, why wouldn’t you consider trying to achieve this title?

We are living through a time with huge skills change. I would urge firms to sign up to this.”

To find out how to achieve Chartered insurance underwriting agent status, visit: cii.co.uk/ eligibility-criteria ●

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Emma Ann Hughes is communications director of the CII

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20/04/2020 11:45

Local Institutes link you to a community of professionals for support, guidance, development, and advancement.

The CII’s network of 56 local Institutes help make careers more rewarding.

cii.co.uk/local Local institutes are a constant source of support, inspiration and new possibilities

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LOCAL INSTITUTES

LOCAL LIFELINE The CII’s local institutes have redoubled their efforts to provide training and networking digitally, as Matt Hall explains

T

he local institute network provides vibrant member communities for insurance and financial advice professionals throughout the regions of the UK. During the past few weeks, as the Covid-19 pandemic began to take hold and government guidance restricted movement, many local institutes were forced to cancel or postpone their continuing professional development (CPD) events, AGMs and annual dinners.

As a part of our membership offering that prides itself on engagement through face-to-face programmes of learning and networking events, it would be all too easy to assume the network would have to batten down the hatches and wait until this storm had passed. In fact, the opposite has been true – our local institutes have shown remarkable agility in responding to the needs of their members during such a challenging period.

Clearly, government guidance has prohibited face-to-face events, but our members’ desire to keep their knowledge and skills up to date is undiminished. It could even be argued that in a fast-changing business environment, this is now more important than ever before.

Many local institutes moved rapidly towards offering digital CPD to their members, especially webinars. A programme looking at the muchdebated issue of business interruption insurance has been extremely popular, with sessions being booked out in minutes and further sessions added to deal with demand. Alongside more technical issues of policy wording and cover extensions, the CPD programme has also considered the broader communication and

business skills that are essential at a time like this, including guidance on having difficult conversations with customers and clients.

INCREASED LEARNING A host of other learning is being developed, such as advice on working from home, treatment of vulnerable customers, and mental health and wellbeing during this challenging period.

For many institutes, this will be delivered alongside planned topics, actually meaning there will be more options for digital learning than ever before.

Paul Hudson, chair of CPD at the Insurance Institute of Manchester, says: “I am proud of the way the Manchester insurance market and our colleagues in other regions have joined forces to ensure our membership can continue their professional development in the middle of all that is going on around us.

“The Insurance Institute of Manchester moved quickly to secure prominent speakers to host virtual sessions on topical matters in relation to Covid-19.

These sessions were put on within a week of the government’s instruction to stay at home, demonstrating our commitment to ensuring the Manchester insurance market is at the forefront of learning.”

Mr Hudson adds: “Our CPD committee is currently drawing up plans to take the existing calendar of technical subjects and convert them to digital ones, while also complimenting these with further topical sessions to actually increase our CPD output at this time.”

Alan Chandler, a general insurance

trainer and consultant who has delivered several business interruption webinars across the network, says: “The uptake has been breathtaking and the webinars designed as workshops have allowed a professional debate to take place within all the local institutes concerning policy coverage. There are very divided opinions but all concerned have welcomed clarity and the opportunity to debate this highly topical subject in a professional way.”

It has been hugely uplifting to see the way members all across the country have responded to support each other in times of need. Of course, when restrictions are eased and we eventually return to normality, I am sure members will be very keen to meet up and enjoy one another’s company again. We cannot wait to welcome you back. ●

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Matthew Hall is strategy and operations manager of insurance societies and networks

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TERRORISM

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STUDY ROOM

TACKLING THE TERROR THREAT James Moorhouse looks at how the market for terrorism cover has evolved and how to appropriately tailor cover thejournal.cii.co.uk / The Journal / April - May 2020

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TERRORISM

COLLATERAL DAMAGE

IMAGE: IKON

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he terrorism threat landscape in the UK is constantly changing, with increasing unpredictability. While standalone terrorism cover was offered in the 1990s, demand for the product increased significantly after property insurers began to exclude physical damage due to terrorism from their policies after the terrorist attacks in New York on 11 September 2001.

Since then, there has been a considerable shift in terrorists’ methods. Islamic extremism has seen a trajectory from planned group attacks to isolated low-complexity acts by individuals. The recent classification of Extinction Rebellion as a ‘key threat’ by UK counter-terror police also demonstrates the range of ideologies that are now identified as extreme. With many different reasons behind terrorism, not only are counter-terrorist operations covering a wide range of causes, insurers are also constantly trying to catch up with how to protect those affected.

However, it seems many businesses still do not have enough cover. According to Pool Re, 43% of businesses interviewed after the Manchester Arena bombing in 2017 did not have any continuity, disaster recovery or crisis plan in place. There were also estimated losses of £1.4m after the London Bridge and Borough Market attacks in 2017, due to restricted access to business premises during the investigation.

Any business that does not have any form of cover against this type of catastrophe peril leaves itself vulnerable to the wide-ranging types of damage caused. An act of terrorism, as defined in The Terrorism Act 2000, does not just affect the intended target but can cause collateral damage to the surrounding area. As well as large businesses in urban areas, smaller businesses and operations in outer areas are all recommended to have some type of protection against terrorism.

It is important for businesses to understand the risks involved and that there are many different ways an act of terrorism could affect them. For example, employers could be liable for the safety of employees and third parties.

While some commercial insurance policies still have a terrorism exclusion, liability policies usually include it, with a sub-limit applied to a certain level. For example, motor personal injury sections include the cover to an unlimited extent but the damage element is sub-limited; and personal accident travel policies may include or exclude depending on the market segment.

But what risks are eligible for terrorism cover? The aftermath of a terrorist act can have numerous consequences, affecting both individuals and businesses. Which is why cover against terrorism should be appropriately tailored:

READING THE POLICY WORDINGS AND EXTENSIONS IN DETAIL WITH CLIENTS IS IMPORTANT TO ENSURE THEY ARE BUYING THE CORRECT LEVEL OF COVER

Personal lines Home insurance – damage to property and contents from acts of terrorism. ● Car insurance – damage to or destruction of vehicle caused by an act of terrorism. ● Travel insurance – trip cancellation or medical expenses related to an act of terrorism. ●

Commercial lines ● Business interruption – restoration costs caused by an act of terrorism. ● Workers compensation – compensation for employees injured or killed due to an act of terrorism. ● Property damage – damage to property and contents from acts of terrorism. ● Cyber – costs related to a cyberrelated act of terrorism.

It is difficult to predict an act of terrorism, both from the perspective of a law enforcer as well as an insurer.

This is why ‘acts of terrorism’ should be covered as part of a more comprehensive product, rather than an exclusion. There are also standalone products emerging on the market that can include the following: ● Political, religious and ideologically motivated acts of terrorism and sabotage. ● Persons acting alone – ‘lone wolf’ attacks. ● Acts of war and hostilities, such as the Salisbury poisonings in 2018.

45

Reading the policy wordings and extensions in detail with clients is important to ensure they are buying the correct level of cover.

This should also extend to checking that the wording covers the risks and exposures they are concerned about. Many small businesses do not realise their current property and business interruption insurance cover excludes acts of terrorism. Gaps in policy wordings could mean that acts of terrorism might be excluded or restricted to physical damage only.

Not all commercial policies include non-conventional cover, such as

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TERRORISM

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chemical, biological, radiological, nuclear-related damage. While such an attack is still unprecedented in the UK, this might be relevant if the policy is purchased by a UK insurer for overseas operations or as part of Pool Re. For individuals, travel insurance may need to include medical costs, repatriation or trip cancellation caused by a terrorist-related event.

However, it is non-damage business interruption (NDBI) that could provide the biggest challenge to insurers. As well as direct losses, businesses can be affected by a nearby event or attack causing significant disruption and the potential denial of access.

The 2017 attacks in Borough and London Bridge saw a significant commercial area shut down during the investigation, causing a massive loss of earnings for those with restricted access to their businesses.

If these attacks had taken place nearer The Shard, this amount would have been much higher due to the disruption to business continuity.

The inclusion of NDBI should be clearly defined in the wording of any extension to business interruption

policy wordings, to include terroristrelated triggers. Damage to property might be included, but non-damage that can impact the operability of a business should also consider the following: ● Denial of access. ● Specified or notable diseases. ● Loss of attraction. ● Remote digital interference.

EFFECTIVE RESPONSE Being able to respond effectively during a terror threat is also important. Whether a client is approached with a suspicious item or needs to restore their business operations after they have been halted suddenly, it is important that they know how to handle these situations.

Crisis management, relevant staff training and business continuity plans should be regularly monitored and reviewed. This could include security recommendations shared with staff about how to handle suspicious items or a bomb threat, communicating with employees if an event has taken

place so to avoid the area, or reporting suspicious members of staff to the relevant people.

As acts and causes of terrorism develop, it is important for insurers to keep up to date with new methods as well as the effects of the aftermath.

During the past few years, terrorist attacks have shifted from the bombing of public places to lowcomplexity attacks by a ‘lone wolf’ using easily available tools, such as vehicles and knives. Cyberterrorism is also on the rise, which presents a new and complex invisible threat.

Therefore, it is important to recommend some sort of terrorismrelated cover to clients, as acts such as these are not restricted to city centres, meaning that anyone can be at risk. Well-maintained business continuity plans should only be the very minimum of what businesses must do to know how to respond in such an event. ● James Moorhouse is content manager of the CII

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cii.co.uk CII.04.2020.048.indd 48

17/04/2020 16:26

Q&A STUDY ROOM

This set of questions, courtesy of online CII training package Insurance Assess, will test your knowledge of topics.

Answers are at the bottom

QUESTION 1

QUESTION 5

QUESTION 9

Which of these is not an essential legal element of a contract?

Which of these items of policy documentation is not usually provided by private medical insurers?

A Benefit schedules b Broker letters to clients c Fulfilment literature d Hospital lists

In the context of a life insurance policy, what is a ‘lien’?

A A loan given by the insurer to the customer b A notice that the policy is to be assigned to a lender c A rating that will last until the end of a policy d A reduced sum insured that may then increase over time

A Consideration b Offer c An invitation to treat d Acceptance

QUESTION 2 In the context of property risk surveys, which of these explains the purpose of flood mapping?

A To indicate property which cannot be insured for flood b To indicate the areas where flood improvements are taking place c To indicate the availability of flood clean-up services d To indicate the likely severity of flooding in the area

QUESTION 6 The International Classification of Diseases, applicable to international private health insurance, is produced by which organisation?

A Clinical Coding & Schedule Development Group b General Medical Council c United Nations d World Health Organization

Which of these major countries requires expatriates working there to have arranged suitable health insurance before they arrive?

A Australia b France c Saudi Arabia d US

QUESTION 4

QUESTION 8

Which of these is used to establish an individual’s or company’s needs and objectives when it comes to health insurance?

A Application form b Factfind C Insurance wishlist D Quotation request

Later life policies are typically bought by which type of people?

A Older people b Retired people c Women d Younger people

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QUESTION 7 Why would an employer arrange schemebased dental insurance?

A Because it is a valuable employee benefit b Because it is difficult to access NHS treatment in some areas c Because employers' liability regulations require them to do so d Because it avoids employees taking time off work for routine dental treatment

QUESTION 3

QUESTION 10

In which year was the first Lloyd’s motor policy issued?

A 1906 b 1892 c 1904 d 1900

YOUR SCORE » 1–3 POOR 4–6 GOOD

7–8 VERY GOOD 9-10 EXCELLENT

ANSWERS 1C. An invitation to treat is not an essential legal element of the contract.

2D. Most insurers have their own flood risk mapping systems, telling the surveyor whether the address they are visiting is in an identified flood zone.

3C. Saudi Arabia requires expatriates working there to have arranged suitable health insurance before they arrive.

4B. Factfinds enable the broker to gather all the information necessary to be able to advise a client when it comes to health

6D. The International Classification insurance.

5B. The broker will be responsible of Diseases (ICD) is produced by for their own literature and letters. the World Health Organization Benefit schedules, hospital lists, (WHO) and is updated from time and fulfilment literature will be to time.

7A. Dental insurance can be provided by the insurer. arranged on a scheme basis by employers seeking to offer dental

cover as an employee benefit.

8C. The first Lloyd’s motor policy was issued in 1904.

9D. A lien can be described as a reduced sum insured that may then increase over time.

10D. Later life policies are typically bought by younger people.

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CII BLOG

HANNAH MEADS

MIND OVER MATTER In an increasingly hectic world, making time to look after your mental health can be crucial. Hannah Meads explains how mindfulness can help

W

50

ith the world in turmoil due to Covid-19, we’ve all been forced to slow down, work differently and perhaps pay a little more attention to what is happening in the world around us. As overwhelming as it might seem, this could be a chance for us to reset and pay more attention to how we are feeling as well.

The NHS Mental Health and Wellbeing Website quite aptly states, “paying more attention to the present moment, to your own thoughts and feelings, can improve your mental wellbeing”. Connecting to the present moment is sometimes referred to as mindfulness.

We’ve all heard of it, but what is it? Headspace, experts in mindfulness and meditation, describe mindfulness as “the quality of being present and fully engaged with whatever we’re doing at any given moment – free from distraction or judgment and aware of our thoughts and feelings without getting caught up in them”.

Mindfulness meditation is accessible to everyone; you can practice on your own, anytime and anywhere. The concept is simple – find a comfortable seat, maybe close your eyes, concentrate only on your breathing and be still for a few minutes. Guided meditation apps such as Headspace, Just Breathe and Calm are a great place to start. However, it is not a case of trying it once and

THIS COULD BE A CHANCE FOR US TO RESET AND PAY MORE ATTENTION TO HOW WE ARE FEELING AS WELL

then you’re forever mindful – you do have to practice regularly to reap the benefits.

For some, it’s not easy. Professor Mark Williams, former director of the Oxford Mindfulness Centre, notes: “Some people find it very difficult to practise.

As soon as they stop what they’re doing, lots of thoughts and worries crowd in.” We often have narratives running through our minds and this is completely normal. So, if you have tried mindfulness meditation and it’s just not for you right now – that’s okay! There are other ways to be more mindful: ● Get into a routine – it’s hard, especially as many of us are working from home, but keeping some kind of structure to your day will undoubtedly help. ● Putting down your phone – maybe it’s only for an hour before you go to bed, to be more present and unwind. ● Move – in any way you can right now, maybe go for a walk, do some yoga at home, or blast Joe Wicks’ 9am PE sessions? ● Journal – writing things down can sometimes help make sense of your thoughts and feelings.

It is not sustainable or achievable to do absolutely everything; so think about how you’re really feeling about a given situation. Do things you love and do your best to switch off from time to time. Most importantly, please do whatever you can to look after yourself physically and emotionally during these very strange times, we will make it out the other side! ● Hannah Meads is broker at Miller Insurance

What a difference a few months make. The scale of the change in our lives has left its mark on the language: last summer, none of us would have recognised words and phrases like coronavirus, self-isolating or social distancing. sum Now, we use them every day.

N The crisis has, of course, made us ask important questions about insurance – first, with travel insurance as the pandemic spread across the world and then with business interruption as it came to the UK. Along with our colleagues across the profession we have been explaining to policymakers, with some success, that the vast scale of the economic impact for Covid-19 means that only the government, with its tax raising powers, can provide a safety net for the entire economy.

But that does not mean that there is nothing for insurers to learn from this experience. When we, as a profession, assess the risk of threats like pandemics, we must feed these insights into conversations with clients. We must talk to them about uninsurable as well as insurable risks. It is only in this way that we can build a reputation for good advice and persuade individuals and businesses to face the difficult task of preparing for the next crisis. ● pr Sian Fisher is CEO of the CII

ILLUSTRATIONS: LUKE WALLER

LOOKING AHEAD

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20/04/2020 09:23

&OR DETAILS ON THE POSITIONS BELOW AND OTHERS IN 'ENERAL &INANCIAL 3ERVICES )NSURANCE ACCROSS THE 5+ ,ONDON AND )NTERNATIONALLY PLEASE VISIT

WWW IPSGROUP CO UK • Delegated Authorities Business Partner

• PI Account Developer/Team

ÂŁ57,000 – City of London A Global Insurer has an exciting opportunity for candidates with a Delegated Underwriting background and those wishing to pursue a career in this area. You will be required to provide expertise and management of the portfolio to ensure that the coverholders are managed in line with the strategy, procedures and regulatory requirements Contact: Carl.CrossďŹ eld@ipsgroup.co.uk - London Ref:CII141846CC

• MI & Performance Analyst To ÂŁ45,000 + BeneďŹ ts – City of London A growing central Underwriting & MI team is requiring additional resource to their busy team.

The role will entail analysing Underwriting and Broker performance data, stakeholder management and identifying data deďŹ ciencies and gaps in analytical capabilities. You must have strong IT skills including experience of Power BI and VBA. Contact: Carl.CrossďŹ eld@ipsgroup.co.uk - London Ref:CII141873CC

• Senior Insurance Technician £40,000 - £50,000 – City of London An independent Lloyd’s Insurance Broker are looking for a Senior Insurance Technician to join their experienced team. Your duties will include assisting in the oversight and delivery of the processing department, assisting clients in the technical management of their business, as well as producing slips to Market standard across multiple classes including; property and casualty, proportional and non-proportional treaties, binding authorities and line slips.

You will be an experienced Insurance Technician with a working knowledge of ATLAS, BAR, IMR and CASA. Applicants from all classes will be considered.

Contact: Grace.Whitwell@ipsgroup.co.uk – London Ref:CII141962GW

• Assistant Underwriter – Specialty & Multi-linesĂŒĂŒ ĂŒĂŒĂŒĂŒĂŒĂŒĂŒĂŒĂŒĂŒĂŒĂŒĂŒĂŒĂŒ Euro 56,000 + package – Dublin Successful and growing insurance group are looking to hire a talented Assistant Underwriter for their team in Dublin. Excellent opportunity for personal growth and working across specialty and multi lines insurance and reinsurance although we can consider people with other LOB experience. We are interested to self-starters with a couple of years relevant underwriting experience plus university degree or ACII. Contact: Colum.Lovett@ipsgroup.co.uk – London Ref:CII142009CL

• Underwriting Operations Analyst Euro 50,000 + package – Dublin Exciting opportunity to join a growing insurance group in their Dublin ofďŹ ce. Reporting into the Head of Operations your responsibility will include risk entry, aged debt and unallocated cash analysis and reconciliation. You will also manage the month end process for Dublin. This is a vibrant ofďŹ ce with excellent opportunity for personal growth within a successful Group. Previous Operations or Technical Assistant experience within an underwriting context is require. This will suit a motivated, able to take on important responsibility and motivated by an empowering environment.

Contact: Colum.Lovett@ipsgroup.co.uk – London Ref:CII142010CL

• Catastrophe Analyst To ÂŁ55,000 Base Salary + Bonus & BeneďŹ ts – City of London An Independent Insurance Broker are searching for a Catastrophe Analyst to work with the Head of Catastrophe Modelling to grow and develop the function. They want a technically strong candidate who has over 2 years of experience working within Catastrophe Models. Experience of using RMS or AIR is a requirement and a good working knowledge of VBA, SQL and GIS would be advantageous.

Contact: Gary.Ahern@ipsgroup.co.uk - London Ref:CII141633GA

• Casualty Treaty Underwriter £ Negotiable – City of London We are working exclusively with a specialist Reinsurer who is looking for a Casualty Treaty Underwriter to work as a key member of a small team focusing on global business. This is a role that will give you some fantastic exposure to brokers and risks, you will focus mainly on General Liability treaty risks as this is a growing area for our client, but you may also have some involvement on Motor Treaty on a pro-rata and excess of loss basis.

Contact: Dana.Hill@ipsgroup.co.uk - London Ref:CII141559DH

• Syndicate Accountant - Lloyd’s Insurance Business ÂŁ55,000 - ÂŁ65,000 + BeneďŹ ts – City of London Hands-on role covering internal and external regulatory reporting requirements, including preparation of syndicate quarterly and annual returns (QMA, QMB, TPD, ASR etc). The successful candidate must have current/recent exposure to Lloyd’s syndicate returns and possess an excellent understanding of the insurance industry.

Contact: Mark.Brady@ipsgroup.co.uk - London Ref:CII141510MB

• Senior Wordings Specialist Attractive Salary Package – City of London New role with a highly regarded Lloyd’s Syndicate and Global Insurer. You will create the Wordings function across the Group, working closely with Underwriters to demonstrate the value of a dedicated Wordings Specialist across all classes of business written by this Group, covering Non Marine, Marine and Aviation, insurance and reinsurance. Seeking an individual who is a recognised Wordings Specialist in the London Insurance Market, able to demonstrate capability to draft wordings across a breadth of classes of business.

Contact: Tim.Southworth@ipsgroup.co.uk - London Ref:CII140809TS ,ONDON London@ipsgroup.co.uk Tel: 020 7481 8111 -ANCHESTER manchester@ipsgroup.co.uk Tel: 0161 233 8222

CII.04.2020.051.indd 51 IPS FP.indd 1

"IRMINGHAM birm@ipsgroup.co.uk Tel: 0121 616 6096

Excellent Package + Bonuses – City of London You will be responsible for heading this Lloyd’s Broker’s UK Professional Indemnity Insurance portfolios. This Broker has access to some very interesting connections. These are seen as being of great potential in respect of their ambitions to build their PI portfolios. This could opportunity could also suit a team move.

Contact: Christopher.Dickman@ipsgroup.co.uk - London Ref:CII141561CD

• Senior Risk TechnicianĂŒ ÂŁ Attractive Daily Rate – Home Based An opening with a Ftse 250 where you will monitor external developments to ensure the company is beneďŹ tting from the most effective methods for managing Risk. Implement strategy and policy by achieving appropriate consensus across Risk professionals in the business. Assist in report preparation for the Executive Committee and, where required to plc Board, to identify the levels of Risk present in the business, identifying where key risks lie and where and what action is to be taken.

Contact: James.Dick@ipsgroup.co.uk - London Ref:CII141990JD

• Compliance ManagerĂŒ ÂŁ Attractive Daily Rate – Home Based With this major corporate group, you will assist in implementation the strategic approach to compliance assurance, supporting the ERM journey by achieving appropriate consensus across risk and compliance professionals in the businesses. The appointee will help to achieve excellence in compliance reporting methodology and in preparation of reports for the Risk, Audit and Executive Committees and, where required, to plc Board. You will promote and help drive a culture of continuous development of compliance policies and systems so as to improve effectiveness, reporting accuracy and timeliness.

Contact: James.Dick@ipsgroup.co.uk - London Ref:CII141991JD

• Assistant Claims Handler ÂŁ20,000 - ÂŁ26,000 + BeneďŹ ts – Bristol One of the largest international law ďŹ rms based in the UK, are looking to recruit an Assistant Claims Handler to join their Insurance Claims Handling team in Bristol and Taunton. Successful candidates will ideally have gained Professional Indemnity claims handling experience.

Contact: Blayne.Kelly@ipsgroup.co.uk - Birmingham Ref:CII141399BK

• Bodily Injury Claims Handler ÂŁ24,000 - ÂŁ29,000 + BeneďŹ ts – Cardiff My client, an established Motor Insurance Business based in the heart of Cardiff are currently looking to recruit an experienced Bodily Injury Claims Handler with experience in to join their new team in a busy and fast paced ofďŹ ce environment. It essential that you have experience in Personal Injury Claims.

Contact: Blayne.Kelly@ipsgroup.co.uk - Birmingham Ref:CII141756BK

• Large Loss Property Claims Handler ÂŁ35,000 – ÂŁ50,000 + BeneďŹ ts – West Midlands A highly regarded Insurance company seeks a Large Loss Commercial Property Claims Technician to join their high-proďŹ le claims operation. Dealing with major and complex commercial property losses ranging from ÂŁ500,000 to multi million pound claims, you will investigate, negotiate and settles cases within your authority limits. The role is primarily ofďŹ ce based although there will be regular site visits to ensure the level of customer service is upheld. There will be an emphasis on effectively managing relationships with all parties involved in the claims settlement process. You will take an active role in the claims audit process to review claims process and implement change.

Contact: Richard.Coleman@ipsgroup.co.uk – Birmingham Ref:CII141921RC

• Quality Assurance OĘcer ÂŁ30,000 – ÂŁ35,000 + BeneďŹ ts – Nottingham A highly regarded global insurance company have an interesting new opportunity to join them as a Quality Assurance OfďŹ cer in their Nottingham ofďŹ ce working closely with the main London ofďŹ ce.

This is a ďŹ rst line defence role based in Nottingham reporting directly to the Agency, Audit and Quality Assurance Manager and working closely with the Underwriting Governance Manager.

The role is focused on driving the development and continuous improvement of the quality approach by checking conformance to all internal underwriting, claims and complaints processes on delegated authority and open market business.

Contact: Richard.Coleman@ipsgroup.co.uk – Birmingham Ref:CII141891RC

• Insurance Agency Auditor ÂŁ30,000 – ÂŁ35,000 + BeneďŹ ts – Nottingham A highly regarded Insurance company has a key new opening to join their Nottingham OfďŹ ce as an Insurance Auditor. You will be based out of the Nottingham ofďŹ ce however you will also carry out onsite audits with MGAs and coverholders predominantly around the London area which will therefore require an element of exibility. You will assist the Senior Auditor with the development, implementation and maintenance of the company’s Delegated Authorities framework working closely with the claims and underwriting department.

Contact: Richard.Coleman@ipsgroup.co.uk – Birmingham Ref:CII141733RC

• Compliance Director To ÂŁ125,000 + Package – City of London This is an opportunity to lead the Compliance and Governance function of this Lloyd’s Broker, at an exciting time of the ďŹ rm’s development and growth plans. You will put in place a Governance structure ďŹ t for the ďŹ rm’s future growth plans. Experience in a senior Compliance role for a UK based Insurance ďŹ rm is required.

Contact: Tim.Southworth@ipsgroup.co.uk - London Ref:CII141595TS

777 )03'2/50 #/ 5+

,EEDS leeds@ipsgroup.co.uk Tel: 0113 202 1577

(ONG +ONG asia@ipsgroup.co.uk Tel: +852 3469 5339 3HANGHAI shanghai@ipsgroup.co.uk Tel: +86 21 2206 2882

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Powering Personal Lines Professionals Personal Lines Knowledge Range

Technical knowledge and professional service Welcome to the Personal Lines Knowledge Range - a suite of learning and development tools built specifically for those in the consumer retail market. There’s something for everyone – from simple animations and short online courses to professionally recognised qualifications – designed and built by market practitioners to empower staff in delivering expert guidance and positive customer outcomes.

More details and to enrol cii.co.uk/personallines

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