Insurance People July/Aug 2013 eEdition by Insurance People

insurancepeople issue 35 July/August 2013

Tim Ablett Insurance Visionary See page 8 Insurance People inside include:

Reg Brown

Tim Collins

Nigel Phillips

Andy Ivory

Peter Thorpe

Jamie Marchant

Tanya Gerrard-White

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leader

www.insurancepeople.uk.com

Let the FOS take the strain

T Editor and Publisher

Consultant Editor

Andrew Newman

Brian Susman

he “Jail the bankers” national media flurry on 19th June quickly fizzled out - although you can still buy the tee-shirt online. What was new in the Government Cross-Party group comment about personal responsibility, accountability, deterrent, and enforceable sanctions (including jail) was that it didn’t drag in insurers or brokers. It clearly labelled “senior persons” who run banks “in a reckless manner”.

July/August 2013

In this issue 1

Late news

Market talk

Ones that got away

●

Commercial Director

Production Director

Jeni Hall

Adrian Susman

Editorial

Andrew Newman andrewnewman@talk21.com 01892 730539 Design & Production

Adrian Susman adrian@insurancepeople.uk.com 07981 993974 Commercial Director

Jeni Hall jeni@insurancepeople.uk.com 07969 510172

www.insurancepeople.uk.com

The Financial Ombudsman Service has also isolated the banks from other financial service providers. Its recently published annual review confirmed that almost two-thirds of the previous 12 month’s “complaints” stem from the top four banks. But it’s unfortunate when the FOS continues the use of the word “complaints” to boost its case for more funding and staffing. Insurers receive complaints, but a good proportion are not “complaints”. They are policy wording disputes in search of an arbitrator. And what better arbitrator is there than the FOS? Ever since insurers lost the last word on declinature to the FOS, that service has proved a worthwhile outsource for problematical disputes. If the decision has already been made, why waste in-house time any further? No loss-of-face in the claims or underwriting departments. No unshakable egos to assuage, either in the hierarchy or at the coalface. And no tying up in-house staff.

John “Tim” Collins

Remembering… Tim Ablett

Outsourcing motor claims Peter Thorpe

Electronic documentation Nigel Phillips

Professional status Andy Ivory

Let the FOS take the responsibility.

Printers

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

Claims service Jamie Marchant says it’s all a question of balance

insurancepeople

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

Reg Brown’s Postcard Emporium A Pru District Superintendent sends a postcard

Peter Thorpe puts the case for outsourcing motor claims

Nigel Phillips reckons the end is nigh for paper

Skills gap Tanya Gerrard-White suggests a fix

News

On the move

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

Who’s going where?

Andy Ivory on fast tracking towards those qualifications

Reg Brown links a 1909 East End Pru man with a Berkshire publican

On the Road Graham Getgood

insurancepeople

Late News

New board members for MGAA

Peter Hubbard

he Managing General Agents' Association (MGAA) has appointed Peter Hubbard, group chief executive of UK General, and Tom Downey, direct of MGAs at RSA, to its board of directors, both for a period of two years. The board now consists of: Reg Brown (chair of MGAA), Tom Downey (RSA), Charles Earle (Arista), Sian Fisher (OIM Underwriting), James Gerry (GB Underwriting), Nicholas Hales (R&Q MGA), Peter

Tom Downey

Hubbard (UK General) and Keith Stern (Lloyd's – supplier member representative). Speaking at the general meeting of the MGAA, Reg Brown said, “We have seen significant progress in the development of the association over the last 12 months. Our board has the strength and breadth to build on these strong foundations and take the association forward to ensure the needs of member MGAs are represented in what are challenging times.”

Barbican acquires marine insurance broker

arbican Group Holdings has acquired Seacurus Ltd, a UK-based specialist marine insurance broker. Established in 2004 and with a focus on marine kidnap and ransom insurance, Seacurus will continue to operate under its current brand. David Reeves, chief executive officer of Barbican, says, “Today’s acquisition marks a significant milestone

in association with

in the continuing growth of our marine operations. Seacurus has built a leading position within the marine insurance broking sector, particularly in the kidnap & ransom arena. Its success reflects the experience and expertise of its team, led by Thomas Brown. Seacurus is an excellent fit for Barbican and we see clear synergies between us, not only in terms

Liberty Mutual extends motor racing sponsorship

iberty Mutual Insurance, the commercial lines division of Liberty Mutual Insurance Europe (LMIE) and recently announced as official insurance partner for the cricket test match grounds for 2013, has now announced its continued backing for motor racing, with five drivers and teams bearing its name in the third year of its sponsorship. Sean Rocks, president and managing director of LMIE, says, “Sport is playing a major role in our sponsorship programme, as seen by our recent tie-

up with international cricket, and LMI is also heavily involved in UK motorsport, providing the liability cover for a range of teams, circuits and governing bodies. It’s therefore pleasing to be able to expand our sponsorship programme in motorsport.” LMI was launched in 2011 to target the UK midmarket commercial sector. The division offers a range of products including property, casualty and financial lines backed up with claims handling and risk engineering services.

Left to right, Lewis Goodearl (vice-president, casualty, who underwrites much of LMIE's motor sports business), Mark Blundell (former F1 driver), and Sean Rocks (president and managing director, LMIE).

of the portfolios of business, but also the culture which exists in each organisation.” In April 2013 Seacurus launched CrewSEACURE, an insurance product for employers of seafarers required to meet regulatory obligations under the

Maritime Labour Convention 2006 and the International Guidelines on Seafarer Abandonment. The product offers cover in the event of an employer’s financial default, and includes the indemnification of unpaid wages. JULY/AUGUST 2013 insurancepeople 1

market talk

Andrew Newman

Tribute to the late Tim Ablett T

he Editor’s tribute to the late Tim Ablett appears on page 8 in this issue of IP, but someone who actually worked with Tim on a day-to-day basis at Groupama is Paul Picknett:Tim Ablett was not just my colleague, but also a good friend. Like many of us, I enjoyed his company immensely; I think we will all miss him very much. Tim and I enjoyed many a chat together over a fine meal and glass of wine. He was a bon viveur and wonderful raconteur, and I personally found in him a kindred spirit. Firstly he was a Francophile. Tim loved his property in the Vendée and enjoyed many a happy time there with his family. So for me, a particular memory I will treasure, was an opportunity my wife and I had to invite Tim and Ann to one of my favourite hotels in Normandy, close to where I had lived in my younger years. There was also his great love of rugby, and whether it was at Twickenham, the Millennium Stadium Cardiff, or the Stade de France Paris, we would invariably meet up after the game to give our own professional analysis of what had happened. If only we could have been the selectors, then England would be a so much better team! I alluded to his other passion - fine food and wine. I

Big Day in Stockport A unexpected arrival at the Be Wiser Race Day at Newbury (see page 4) was Terry Wellard. Unexpected because the previous day was his annual charity golf day in Stockport, but that didn’t deter a drive back on his part to catch the party. But word can travel faster than the traffic on the M6 and whispers of his triumph at Stockport were already circulating before his arrival. Triumph - not as you might expect on the golf course – but on the stage.

Or at least during his performance in the clubhouse when welcoming guests; slagging them off; collecting cash fines for various misdemeanours, whether on or off the golf course; keeping hecklers in their place; and giving everyone a good time. And apparently the word filtering through was that this one was an epic. Witty Wellardian woofers, excellent ad libs, bang-onthe-money put-downs, and lots of dosh for the charities. Professional comedians

2 insurancepeople JULY/AUGUST 2013

Paul Picknett remembers Wellard on top form at Stockport!

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recall particularly a wonderful meal we had at the Waterside Inn, and instead of going to bed sensibly at the end of the evening, our whole party stayed up until the small hours playing a particularly competitive game of Pictionary, which Tim had initiated. Yes, Tim was also extremely competitive and he played to win. These memories are indelible, but of course Tim was much more than all of that. He was a charismatic figure in our industry who had reached the pinnacle of the profession. A Chartered Accountant by background, he seemed far happier seeking out deals than crunching numbers. He firmly believed that people did business with people they liked, and he was therefore also interested in the chemistry of the deal. He sometimes could also be something of a maverick, throwing caution to the wind. Such as on the occasion he came into our legal counsel’s office, produced some papers on a deal he had just made, and simply said to her “Can you tidy this up please?” before adding, “Don’t ask”. That is what made him such an engaging character. Just last month Tim and I were both judging the British Insurance Awards, a meeting which he chaired with his usual aplomb. Though perhaps my enduring memory of Tim was that he had a generous spirit, he was kind and considerate to all, and above everything he believed business should be fun. Paul Picknett, formerly at Groupama Insurances often talk about how hard stand-up can be, but when it all comes together and the audience is on song, they enthuse about the wonderful ‘high’ that kind of rapport with an audience can bring. Certainly Terry was still excited 15 hours after the event, telling me, “Yes, it was definitely a good one. The audience were terrific. They made it possible for me to sail along, with no real worry about what was coming next. They made everything flow. And you’re right about the ‘high’. It was great. I really enjoyed it.” Despite the current economic times, Terry says

that record numbers turned up to support the Stockport Charity Golf Event, and no doubt Terry can tell more about this in the next issue of Insurance People – when we return from our August holiday break in September. See you then.

Terry Wellard

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market talk

Whatever happened to premium finance? McPherson connects with lead trader Newbury charity boost for Macmillan

Bexhill in-house facility for brokers E

ver since the banking crisis struck, the world of insurance premium finance appears to have become almost silent. Firms have disappeared, while others formerly never shy to shout about themselves and their wares seem to have run for shelter. So it was good to catch up recently with one supplier having enjoyed a good recent BIBA Conference and successfully securing additional funding in the past 18 months to introduce

some much needed liquidity into the market. Olga Smith is head of operations at Bexhill UK Ltd and tells me that their special in-house facility is helping brokers - particularly those engaged in SME business – with the finance and supporting technology to run their own premium finance company without any need for complex training or additional overheads. “Brokers like consistent high levels of customer

Steve McPherson joins Call Connection

t was something of a surprise when Steve McPherson left Allan & Allen Group earlier this year. He was sales and marketing director of the A&A Group, and had been with them for 28 years. But in June he joined Ipswich-based lead generation business Call

Steve McPherson

Connection in the newly created role of sales director. The company also provides specialist contact centre services in sales fulfillment, disaster recovery, and call overflow. Steve tells me that it will be in those areas that he will be working with the team to extend the panel of insurance partners. “After 28 years of helping to successfully build the A&A Group, I'm really looking forward to joining the Call Connection team. I’ve already worked with their lead trading division for many years, so I know the value that can be added to an insurer's business".

4 insurancepeople JULY/AUGUST 2013

service, but with complete control themselves, improving their cash-flow and efficiency,” she says. “Over the past six years some brokers using the Bexhill facility have built up a balance sheet exceeding £1m from their in-house premium finance facility.” I gather that Bexhill now supports over 100 UK insurance brokers. I also learned that Olga hails originally from Odessa, and her maiden name was Olga Chpitchka. This may

Olga Smith

not be relevant, but call it Editor’s whim. I couldn’t resist seeing that splendid name in Market talk bold type!

Day out with Be-Wiser

he Be Wiser Race Day at Newbury at the end of June started with a bang. A 50-1 tote winner in the first race, where a £1 Exacta paid £234, and the Trifecta a whopping twoand-a-half Grand. Not that I even got a bet on the first race. Too busy jawing. The guest list at Be Wiser’s event always makes the party go with a swing. Here’s an organisation confident enough in its own standing to ensure that you are as just as likely to find yourself chatting with one of their broking competitors as with one of the respected insurer CEOs and others that attend. Plus, a good number of Be Wiser staff

representatives who are certainly not looking over their shoulder at uncertain job security. Let’s face it, there are a good number of organisations in the larger category who don’t allow their staff to attend such functions for various reasons, especially if they are looking at future redundancies. So thanks to Be Wiser’s Mark Bower-Dyke and Andrew Dunkerley and the team for a great afternoon. Andrew tells me the Macmillan Charity benefited by over £3,000 from the day. Be Wiser generously sponsor a bet for every guest with the winnings going to the charity, which Be Wiser then double up. See photo on page 26.

in association with

A report from Melbourne and Swan Hill

Down under with Rutherford Street Y

ou won’t find Rutherford Street Insurance Services on the patch of any UK-based on-the-road development manager. RSIS are one of IP’s overseas readers, and the story starts last year when business development officer Renae Legudi dropped IP a line via social media.

Renae Legudi

“RSIS gains great value from your magazine, even though we are on the other side of the world in Australia. While not all the content is relevant, we benefit greatly from your articles about customer service, marketing ideas, social media tips, industry innovation, technology developments, risk observations, claims handling, and insurer/intermediary relationships.” That’s always good to hear, so IP took a peek on Google Earth. The office in Rutherford Street in Swan Hill looked very swish, but it

was the office next door that caught our eye - a branch of the insurer RSIS were supporting. It’s not certain whether anything like that exists in the UK, but it seemed a bit too much like ‘big brother’ looking over your shoulder. As it turns out, the Google pictures were out of date. Renae explains. “Prior to January 2013 RSIS was an authorised representative for CGU Insurance, along with QBE & Allianz. Due to the close relationship between RSIS & CGU we offered to rent out one of our neighbouring shops to them, and yes… many people had the same reaction as yourself. It was considered to be a bit like ‘big brother’ looking over your shoulder. “But we found that having the insurer so close helped strengthen the relationship. They could see first-hand just how their decisions impacted the dayto-day running of our business and the interaction with our customers. We found it was easier to get answers and referred quotes approved faster by having them so close - it’s a lot harder to say 'no' to someone face-to-face rather than over the phone or via email!” But that was last year. CGU later closed many of its rural offices, and Swan Hill

was included so RSIS lost their ‘big brother’ neighbour. The MD of RSIS is Renae’s mother Gaye Legudi. “She opened the business in 1998 and has worked tirelessly to continue to grow and develop the business,” says Renae. “My father Vince Legudi also runs his own business and spends a lot of time in our state's capital, Melbourne. Swan Hill is about three and a half hours away from Melbourne.” I asked Renae if she would summarise the considerations to be assessed for an authorised representative opening up in a big city like Melbourne. “There’s greater competition of course, and that is mainly made up of brokerages with access to many companies, while RSIS is only an authorised representative for three. And the business

Gaye Legudi

name of Rutherford Street wouldn’t really suit. Then there are staffing issues; the system link between the two offices; and other general budgeting concerns. “There was always the option of becoming a broker, but after a lot of research, meetings, discussions, and brain storming it was found that becoming an authorised representative of a brokerage network would be the better option. This gave RSIS access to many companies, while still having the support and camaraderie to succeed in one of Australia's largest cities. “So in January 2013 RSIS became an authorised representative of Ausure Insurance Brokers, and the RSIS Melbourne office was opened under the name Ausure Port Melbourne (the Melbourne suburb where the office is located). Working with Ausure has opened up a lot of doors for us and we have been able to quote and place business like never before.”

JULY/AUGUST 2013 insurancepeople 5

market talk

Peter Rosengard – mega life-salesman

in association with

Book Review eter Rosengard’s Talking To Strangers is subtitled ‘The Adventures of a Life Insurance Salesman’, but most of the book is actually taken up with a succession of anecdotes about his extra curricular activities. Across five decades, Rosengard has attempted to produce a film, erect a permanent 9/11 tribute in Southwark, kidnap an ex-girlfriend, and present Prince Charles with a toilet, amongst many other endeavours, mostly with little or no success. Two particular stories stand out for IP readers; his attempt to create an industry-wide charity, and his sale of the world’s first $100m life insurance policy. One event remains in the Guinness Book of Records today, while the other is a little known footnote in insurance history, summing up Rosengard’s scattergun approach to life and writing about it. In 1990, when MCA Universal spent $500m on Geffen Records, Rosenberg recognised that what they really wanted was David Geffen. Using his connections in the luxury hotel world – he’s been a fixture at Claridge’s for thirty years, conducting business over his breakfast table – he was able to contact MCA President Sid Sheinberg and in a single phone call and convinced him that if Geffen was that important then he had to be insured for $100m. A week later, the deal was agreed by the board and MCA and Peter were in the record books. His second great insurance idea of 1990 was Life Aid, a proposal which could have raised billions of pounds for charity. The set-up was simple; for one day, every life policy sold would benefit charities rather than relatives, ensuring long term funding for various causes. The insurers would take no profit, creating a single lump sum donation on behalf of the industry. After a year of planning, 67 insurance chief executives were pulled together in one meeting but the

P’s book reviewer Karl Brown is of course reviewing a literary work - not the veracity of the subject matter. Time doesn’t permit the Editor to check the facts – and there’s no need. This is a book review. Getting 67 insurance chief execs together in the same room at the same time

is surely stretching things, but who knows? And there’s certainly a familiar ring of truth about the veto by representatives of the Scottish companies. The general business EDI debacle was a similar exercise, and whilst not involving chief execs or vetoes, certainly suffered

6 insurancepeople JULY/AUGUST 2013

idea was finally vetoed by representatives of the Scottish life companies, basing their objections on a single issue; if they publicly donated all of their profits and commission from these sales, then everyone would know how much they earned. Two years later, the industry was required to divulge commission rates anyway, but by then Peter had moved on to one of the many other schemes which fill the book. Not all are successful (in truth, it’s more like 70-30 against), but Rosengard is a likeable chap who views each new opportunity as being worth a throw, which makes for a varied, if uneven read. His self effacing, conversational style suggests that many of the stories are well worn staples of his international speaking engagements, but the book remains an interesting diversion. He is a born salesman, and his number one product is Rosengard himself, so whether he is managing a hit pop group, opening a world famous comedy club, or blagging his way onto the red carpet at Cannes, it is frequently just his own self belief which has got him there, and it’s difficult not to be swept along. Review by Karl Brown sand in the works from some of the big companies to slow things down. The main culprit (no longer with us) wasn’t Scottish, but it certainly had a head office in Scotland! ●

IP’s reviewer Karl Brown is branching out into literary endeavours of his own, with some small success. Under

his nom de plume Karl A Russell he has recently won the Liverpool WOW-Fest Flash Fiction Prize for the second year running, and is currently long listed for two further competitions, including one sponsored by the prestigious British Fantasy Society. We await the finals with bated breath.

“The ones that got away”

Insurance was rarely first choice for most career seekers. This series usually uncovers those who, having found themselves within the insurance fold, managed to make a break for it. But what about others who “came in from the cold”?

London’s Royal Exchange seems to be hogging IP’s pages of late (see page 29) and this one is no exception. Tim Collins was chairman of Guardian Royal Exchange from 1974 to 1988

John “Tim” Collins 1923-2012

he son of a furrier, and born in South Africa, John Ernest Harley Collins’ poor early health persuaded his parents to return to England. In Birmingham he attended King Edward’s School, winning a place at Birmingham University in 1941. However, this scholarship was never taken up because he was called up and selected for officer training, having already joined the Royal Naval Volunteer Reserve, As sometimes happens following a sickly youth, Collins grew and grew, and at six foot six, he became “Tiny Tim” to his fellow cadets, and later just “Tim”. Posted as second-in-command of a motor torpedo boat (MTB) in Malta and Sicily, he was wounded in action in the Strait of Messina and didn’t return to active service until late 1943, when he became a sub-lieutenant in an MTB at Bari, Italy. The port was devastated by an air raid on 2 December 1943. The Luftwaffe sank 17 ships and created a huge garlic-scented cloud over the town when the American freighter John Harvey exploded. This ship was loaded with a highly secret, lethal cargo of mustard gas shells ordered (illegally) by President Roosevelt into the Mediterranean contrary to Geneva protocol. The only proviso was that the cargo was never to be used except in retaliation for any enemy use of chemical weapons. Collins and others dived into the blazing waters to help survivors, unaware of the toxic nature of the oily water. The results were severe blisters, burns, swelling and temporary blindness, and 628 military victims, including Collins, were admitted to hospital. This top secret cargo was only known to a small number of American officers, and since they all

perished in the attack, doctors recognised the symptoms, but knew nothing of the mustard gas which was eventually traced to the John Harvey wreckage. Collins was appointed MBE for his bravery in 1944, but the truth was kept secret at the time. Collins eventually returned to service, this time in command of MTB 406, in 28th Flotilla Coastal Forces, smuggling Yugoslav partisans and attacking German shipping. He received a DSC and Bar for his part in sinking enemy merchantmen in 1945, including his sinking of two enemy vessels with one torpedo. By the war’s end, he was flag lieutenant to Admiral Sir Henry Pridham-Wippell, Commander-inChief Portsmouth. That was when he met his first wife, Gillian, a Wren officer, and elder daughter of “Rufus” Smith, the 2nd Lord Bicester, a Morgan Grenfell director. On demobilisation in 1946, Collins joined his new father-in-law’s bank in preference to his own family’s business. The names Glyn, Mills; JP Morgan; Royal Exchange Assurance; Hudson’s Bay; Rank Hovis McDougall; and Charter Consolidated all entered his CV. He later became chairman of GRE as mentioned above. JULY/AUGUST 2013 insurancepeople 7

The one thing insurance could discard is our appalling public image

“

”

(Tim Ablett speaking in 2002)

Tim Ablett Insurance visionary by Andrew Newman

It was a sad moment on learning that Tim Ablett had passed away on Sunday 26 May at home with his family by his side. His ability to “get things done”, his business skills, and his stature in the market were coupled with a personality embracing friendliness and warmth, with a keen sense of humour. You couldn’t help liking him! On the business side he was a great champion of the customer – whether that be regarded as the broker or the consumer - and had a strong vision for how the business should operate. It was the industry’s misfortune that the market just wasn’t ready to take the path he believed insurance should be on. If it had, then many of its later customer-related woes would never have happened. Like many of his contemporaries, he was dismayed by the poor standing of his profession in the eyes of the public, but that didn’t prevent him channelling his energy and enthusiasm towards the new challenges. He will be greatly missed 8 insurancepeople JULY/AUGUST 2013

he last message I received from Tim Ablett was not that long ago with an invitation to meet-up “sometime when you have a free hour or so”. Our chats were nearly always of the lengthy kind, and my lasting regret will be that on this occasion we never got round to that meeting. I first met this larger-than-life character with the strong business acumen and warm and likeable personality, in late 1997 when he was director of personal insurances at RSA. He was pressing the case for multi-channel distribution at the time when RSA owned Swintons. The idea of an insurer owning a broker chain was not new, but evoked enough suspicion to warrant an assurance for the members of the broker channel:-

“

Brokers need to capitalise on their key assets of choice, personal service, and best advice. And to fulfil this proposition, they need to be able to depend completely on back-up from their insurers - from business planning and policy issue through to claims handling and customer services. I want to help raise brokers’ profile in the marketplace. The real challenge for brokers in partnership with their insurers is to develop their customer proposition, so that the public associates them not only with independent advice and a wide range of products, but also world class service levels and real value for money.

”

Tim Ablett, director of personal insurances, Royal&Sun Alliance, January 1998

im later moved across to lead the RSA healthcare business, but our meetings became more frequent after he joined Groupama Insurances as managing director, an insurer very proactive on the press front and willing to confront major issues. And Tim already had something in mind:-

“

We need to get consumers on our side. We must be seen wading through the floods and putting things right for people.

The problem is that insurance cannot get away from treating consumers as policyholders, rather than as its customers. How can we provide something better for our buyers? The margins, technical problems, and all the other management difficulties we face will not simply disappear. They'll remain, but the one thing we could discard is our appalling public image. And in the ‘brave new world’ it’s all about offering what customers want… and I'm really not sure 'insurance' is what they want to buy. By moving our offering away from 'insurance' into something our customers can more readily connect with, protection and peace of mind, we have a oncein-a-lifetime opportunity to shake off the past. We'll be making our profit (hopefully) by providing a service our customers want to buy, rather than one they are forced into. And isn't that as close to the definition of true 'marketing' as we've ever come?

Big Bang at the Great Eastern A FirstAssist July 2003 launch party, at London’s Great Eastern hotel, was one of the noisiest events up to that time. (Nothing compared to today’s earsplitting, multi-decibel intros, of course). The idea to signal speech time, and cut short the pre-lunch reception chatter with an almighty explosive bang certainly achieved its aim. Stunned guests staggered around with eardrums ringing and hearts thumping, looking for somewhere for a nice sit down. While sympathetic to his audience, CEO Tim Ablett excused any guest discomfort with the time honoured line, “Don’t forget, there’s no such thing as a free lunch.” Asked afterwards if the loudness of the bang had surprised him, Tim admitted, “Well, I don’t know how loud it was where you were, but it scared the **** out of me.”

Fraud This quote was made at a time when the majority of insurers were still uncertain that exposing fraud was a good thing to do

”“

Tim Ablett, managing director, Groupama Insurances April 2002

The opportunity to implement these ideas came in 2004 when Tim had become chief executive of FirstAssist. I met him for an enjoyable lunch meeting just at the time when he and his team were disengaging from RSA and able concentrate on the way forward. The answer to the concept of making ‘insurance’ more tangible was made via ‘wellbeing’ customer care issues, and producing a quality customer service that customers could more readily connect with protection and peace of mind. And failing any challenge from elsewhere, for me Tim Ablett was the inventor of the word ‘wellbeing’. A single word. No hyphen. It certainly wasn’t in the dictionary at that time because I remember looking it up! But I was very happy to go along with it, and I recall Tim’s (not-tooserious) chagrin when other journalists were slow to follow suit. In May 2006 it was my privilege to take part in one of Tim’s projects - how to get general insurance brokers interested in healthcare provision. Although there are now a few general brokers embracing the two cultures and exploiting the synergy, healthcare still remains largely a no-go area for a number of general insurance brokers. By 2007 Tim had become a general insurance industry consultant and what he described as “an

Insurance needs to confront a tough issue like fraud. We need to persuade honest policyholders that it isn’t us who are ripping them off - it’s the people who think it’s acceptable to steal from an organisation so long as it’s an insurance company. And let’s remember that we are not talking solely about criminals - many of the people who defraud insurers without a second thought are the sort who wouldn’t even drop litter in the street for fear of causing offence. That illustrates how bad the problem is. An urgent solution is required given that it’s costing us millions every year.

”

Tim Ablett, October 2002

independent non-executive”. His non exec directorships and chairmanships were too many to list here. Tim Ablett – a respected senior figure, very approachable, and very passionate about the industry, but not to the exclusion of everything else. A visionary who always took the optimistic view, and stuck to his vision through thick and thin. His positive outlook, easy good humour, and desire to do things in an ethical way inevitably swept everyone along who was lucky enough to come into contact with him. What could he have achieved given another decade? JULY/AUGUST 2013 insurancepeople 9

outsourcing

Peter Thorpe NATIONAL SALES MANAGER FARG ASSIST

Will outsourcing “actually reduce my claims costs? ”

Why outsource motor claims? The basic consideration when insurers or brokers think about claims outsourcing is a simple one – will the efficiency savings effectively pay for the service? Of course, anyone can cut costs, so the next thought has to be whether the quality of customer service will be threatened. Or more to the point, will service levels rise thanks to any proposed outsource arrangement? Peter Thorpe comments

n talking specifically about motor claims, it’s clear that the market provides varied answers to the above questions. The range of outsourcers engaged in this sector is as varied as that of the insurance providers that they serve. And it must be remembered that in some cases traditional methods based on the historical background of this class of business still exert their brake on efficient claims handling. So any insurer, MGA, or broker would do well to look beyond the basic consideration outlined above, and delve into the additional benefits that knowledgeable outsource provision can bring. Given the sheer diversity of firms engaged in insurance provision, the range of in-house performance naturally varies considerably. Inhouse efficiency in some classes of business is very high, while in others there remains plenty of scope for unrealised savings to be achieved – where outsourcing has proved itself 10 insurancepeople JULY/AUGUST 2013

worthy of consideration, producing results that validate their original promise.

What’s in outsourcing for brokers? Many brokers believe in the adage that “Claims are the shop window of insurance”. Many regard their claim service to be the ultimate test of their customer offering. Everything – especially customer retention - hinges on what happens when a claim comes along. However, brokers’ difficulties are inevitably increased by the diversity of the various insurers they deal with – all with their own view of the claim process. That lack of consistency is one obvious stumbling block desperately seeking to be overcome. And that obstacle can be hurdled by the provision of a consistent outsourced claims handling experience, irrespective of the insurer.

In the majority of cases, brokers don’t normally get paid for the claims work they carry out. Those costs have traditionally had to come out of commission – a surely out-of-date expectation in this era where broker focus is almost exclusively sales orientated. If the outsourcer can save brokers’ account executives from being sidetracked from their core skills into claims handling activity whilst enhancing their overall service provision - then the associated costs of staff, telephony, etc all disappear, and in its place there’s client access to 24-hour help, all white-labelled to the broker.

What about insurers? Benefits of claims outsourcing for insurers focus immediately on third party claims handling. The creation of a completely new mouth to feed was spawned by insurers’ traditional barriers towards third party claimants.

Contact: Peter Thorpe, M: 07785 384633. E:peter.thorpe@fargassist.co.uk or John Boyce, M:07960 246865. E:john.boyce@fargassist.co.uk Or visit www.fargassist.co.uk and/or www.farg.co.uk

When the inertia towards the denting of insurers’ bottom lines was tackled, it was done so very vigorously. And yet, despite these serious hits on claims ratios, there are still cases reported where third parties are driven towards ‘ambulance chasing’ firms simply because they are ignored by the atfault insurer. While the insurer may be fully aware that they will be hit by increased charges, their process has not been overhauled to allow them to react with the speed now demanded in today’s market. When there are delays in responding effectively to third party claimants, the concept of cutting costs should surely be a no-brainer, given the speed at which they can be inflated.

Questions to ask When considering motor claims outsourcing, insurance providers need to ask:1. Will outsourcing actually reduce my claims costs? 2. Will the service treat all claims the same, whether fault or non-fault? 3. Will the management information (MI) be readily available to me, online? 4. What effect will the control of claims costs make on my customers’ perception of my service? 5. Will we really be able to work as partners? 6. Does the outsourcer operate and manage its own Repair Network? 7. How experienced and highly focussed are the outsourcers’ management and staff in claims and accident management? Are they genuine claims people?

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electronic documentation

Nigel Phillips COMMERCIAL DIRECTOR CDL

The whole approach to “paper may finally be set to change ”

Goodbye, paper? Technology has speeded up personal lines distribution and operator productivity. But it has yet to eliminate the paper. Nigel Phillips argues that this is set to change with growing consumer demand for online self-service

nsurance administration systems have saved some brokers many hundreds of man/years in recent history – and necessarily so, in an increasingly competitive environment. But throughout this, documentation has become more, rather than less, critical – not least because the financial services sector has become more heavily regulated in the same period, with ever tighter regulation demanding that consumers receive more information. The result has been greater focus on efficient management of the huge volumes of paper involved. Systems have been programmed to generate (and store) personalised and branded documentation, schedule batch print runs and enable reporting and tracking through bar-coded mailings.

Electronic only please Now though, with significant growth in consumer demand for selfservice, there are signs that this whole approach to paper based documentation may finally be set to change. With two thirds of motor insurance already being sold online, there’s growing evidence that, as in banking, customers want to manage their policies on the internet, not just buy them there. When Ageas Insurance Solutions migrated its largest brand, Auto Direct, to CDL Strata earlier this 12 insurancepeople JULY/AUGUST 2013

year, 97% of customers immediately registered for the self-service portal and opted to receive their documentation electronically rather than in the post. In the main though, self-service is a prime example where the interests of the consumer and broker happily coincide. Junction recently reported that one million BGL customers now opt to manage their own policies online. Technological solutions now allow policyholders to complete over 85% of tasks without the need for any contact centre interaction and customers can choose between the online portal or mobile apps to make mid-term adjustments, such as a change of vehicle or adding a driver to a policy.

Impact of mobile and regulatory drivers The proliferation of smartphones and tablets, combined with greater data capacity and the introduction of 4G networks, has fuelled huge consumer appetite for the convenience afforded by apps and web-based self-service portals. Customers are not limited to contact centre opening times and can avoid waiting in phone queues. For many, it’s much easier to take a picture of their no claim bonus proof using a smartphone and submit it electronically than it would be to send a copy in the post. Retail operatives, on the other hand, are saved the burden of scanning and

attaching to a policy and just need to ‘eyeball’ documents to verify the information contained. Apps also provide consumers with an easy way of storing their policy documentation – and ensuring they are always close to hand if needed, while brokers gain the advantage of their brand ‘in the customer’s pocket’, making it easier to engage customers to visit their site more often or communicate directly via their own branded app. There’s no doubt that the pace of change is accelerating and the adoption of self-service insurance will continue to be driven by the rise of smart phones, already owned by more than half the UK population. With esure reporting its first insurance sale on Facebook earlier this year, it is likely that more integration of retail websites with social media platforms will follow, again paving the way for more mobile based interaction. Regulation may well turn out to be the factor that forces the issue again, with the Department of Transport currently consulting on proposals for the Motor Insurance Database to become the single source to check for valid insurance. Pressure to eliminate paper is growing, and the key for retailers in the future will be to ensure that their systems are fit-for-purpose in the new world of electronic documentation, designed around customers’ demand for easy selfservice and 24/7 access.

professional status

Andy Ivory FREELANCE INSURANCE TUTOR

Qualifications - the need for speed

Fast tracking to qualification The one-time yellow-brick road to insurance qualification was the multi-year study CII route, pioneered by the ‘composite’ insurers of yore. Today’s market calls for an alternative, more speedy route for today’s more specialised niche markets. Andy Ivory explains

he Aldermanbury Declaration and the push for more insurance firms to achieve Chartered status has swept exam study along in recent years. And in doing so, these developments have sparked the need for a much quicker qualification process in certain categories. The traditional route to professional qualification was the three-year slog towards ACII and then another two for FCII. It was a course giving a wide understanding of all classes of general insurance business. This is exactly what its progenitors wanted – the so called ‘composite’ insurance companies offering an “all things to all men” approach, largely avoiding niche business. A broad, all round, yet detailed knowledge taking years to complete was ideal for that set-up. Recruits joining an insurance company straight from college or school would be encouraged to join the CII and employers made this easier by paying all the fees and allowing day release.

hat’s the way it was. Or at least that’s the way it was if you worked for an insurance company. And there were a lot more of them around then than there are today. But what about other sectors? Sectors where “all things to all men” doesn’t apply? Where niche specialisations rule? Such as in

Lloyd's, or in specialist broking in the small to medium range? Places where the need for the study of the big picture is not so relevant? What about staff who are not on the managerial ladder, and have no wish to do so? All they want is to do their job to the best of their ability. For them the CII was often perceived as a members’ club, involving local institutes, annual dinners, and a commitment for life.

f course, the CII has for many years recognised the gap for qualifications that can be acquired much sooner, and for more limited objectives. Something relevant to the job and future career within limits. Just sufficient to prove the individual’s prowess in the role they play in the business, and without the need to join a club. Not everyone wants to join the establishment and take the route to academia – or needs to. The CII has adapted to the need for those who want to step in, take what they need, and then move on, without any further obligations. To put things in perspective, the majority of my own 900+ students don’t actually know much about the CII because they have never come across it before. Their employer has encouraged them to reach for a qualification relative to the role they carry out in the business. Armed with their qualification they express little interest in spending further time in

local CII activities such as lectures and black-tie dinners. The word ‘shortcut’ has its derogatory sense, but in terms of solutions for today’s needs for recognised speedy qualifications, the ‘shortcut’ is more accurately associated with ‘efficiency’. Today’s students want knowledge, and they want it quickly. Forget the piles of text books. Books can’t talk; they can’t put topics into context with useable examples and anecdotes. Books don’t ‘explain’. I’ve found that most of my students learn quickly and retain that knowledge for use both in the workplace and also in future studies. It really is like building a house. They see the study ladder as a modular, degree-like process giving them professional recognition and career options; not membership of a club. And meanwhile not all employers can afford to wait for the timescales associated with traditional insurance exams. They want highly focussed, intensive study, and are prepared to pay for that in the form of intensive tutorage undertaken in work time to produce proven qualifications in the shortest reasonable time. Of course, there is a word of warning. The CII needs to avoid diluting its own worth when allowing companies to have their internal training programmes accredited, giving delegates credits at cert level. You can’t print knowledge! JULY/AUGUST 2013 insurancepeople 13

claims service

Jamie Marchant INSURANCE MARKETING & COMMUNICATIONS SPECIALIST

Claims are said to be the insurance shop window. But no matter how slick and efficient, why do they still present a barrier to the customer? Jamie Marchant believes it’s all a question of balance

arlier in the year BIBA published research that suggested insurers were tightening up on claims handling. This was hotly disputed, and the whole thing exploded into a rather unseemly market spat that resulted in some juicy headlines. Sadly these did the profession few favours and probably only helped reinforce a public perception that whilst insurers are content to accept premiums, they are rather less forthcoming when it comes to paying claims. However, when you scratch below the surface there's possibly enough to suggest that BIBA could well have been on the right track. Is it possible that policyholders and brokers are now having to work that little bit harder to get legitimate claims paid promptly? Insurers will argue of course that they are having to take a more robust approach so as to protect the interests of their honest policyholders. After all, undetected general insurance claims fraud is estimated to cost over £2bn a year, adding £50 to the annual costs of each customer. Understandably then, they have been investing heavily in the resources and technology

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Beware the “occasional over-zealous claims handler lacking common-sense

”

A question of balance necessary to tackle such financial crime; and perhaps there's the rub. Because, however slick and efficient their efforts and however well they might slot seamlessly into service protocols, they still present a form of barrier to the customer. Processes such as automated checking and individual claims screening may well be very sophisticated, but they’re also likely to have at least some impact on genuine claimants. And they can also generate perceptions of a lack of trust. Although insurers do their utmost to quickly weed out the guilty few, everyone can still be checked. Not only can this cause unfortunate delays, it also has the potential to leave a rather unpleasant taste if pressure is applied in the wrong quarters. Add in the occasional overzealous claims handler with a lack of common-sense, and the necessary clampdown on fraud can result in tilting at imaginary windmills and upsetting innocent and honest claimants. None of this is helped by the fact that margins for insurers have been thin or non-existent; meaning a greater desire to constrain costs and to eliminate expense from the supply chain plus increased pressure on claims teams to deliver savings. In addition, specialist outsourcing arrangements designed to manage things more effectively can sometimes reduce choice for claimants and may even lengthen settlement times; especially where 'hand offs' are less than slick.

o might there be a danger that insurers are starting to view things from the wrong end of the telescope? Is primary focus on cost control making customer care lag behind? If so, reports of recent claimant research from Accenture suggests it would be a serious mistake. Over a third said that they would switch at renewal if claims satisfaction dipped below a rating of 7 out of 10. The same survey also suggested that customers' biggest beefs are fairness of settlement and inadequate communication - both of concern given that they are key elements of the regulator's Treating Customers Fairly initiative. Creating the right claims culture is accordingly essential if insurers and brokers are to build trust and customer satisfaction whilst still facing down the fraudsters. The extent of the challenge should not be under-estimated; as the Financial Ombudsman reports non-PPI complaints as being on the rise - up 20% year on year. Although unwelcome, maybe BIBA 'thinking the unthinkable' and suggesting insurers have been turning the screws a little too tightly was a timely reminder. Because although greater use of technology, closer questioning, and tighter claims handling are undoubtedly fine tools for insurers to manage costs and help keep premiums low; they must always be applied sensitively with common-sense and fairness. Retaining happy, satisfied customers remains a question of balance.

his card from the Reg Brown postcard collection takes us back to 1909 at a time when business people often used the postcard as a business card. The cost of the stamp in those days was one half penny! - two farthings in old money. The postmark may have obliterated that part of the stamp, but reference to the Stanley Stamps Gibbon Catalogue (sic) authenticates this. Here we see J Allum making a rather posed point for the benefit of posterity. Research into the 1911 census likewise points the finger at John Joseph Allum living in Tottenham. He worked in Forest Gate in east London at the Prudential office at 11 Boleyn Road where he was the District Superintendent. He was born in 1860 in Middlesbrough, then part of Yorkshire, and ‘boarded’ in the home of a Mr & Mrs Gray at 33 Northumberland Grove (not far from the Spurs stadium). Mr Gray entered Allum’s occupation as ‘Insurance Agent’ on the census. His one other boarder was a ‘bread baker’, and both men were single.

he two-fold interest in this particular postcard is that it’s possible to find out even more about the addressee. The Wheelwright’s Arms is still there – see www.thewheelwrightsarms.co.uk – in the village of Hurst near Twyford, although Davis Street is now Davis Way, and the postal area is now Wokingham. The addressee Francis Goodchild moved to Berkshire to run the pub around the turn of the century. Various sources reveal that he was landlord for at least ten years, but was gone by 1915. The pub was a 19th Century wheelwright’s shop which switched to selling beer in the early 1850s. Frank Lewis Goodchild was a former butler and this seems evident from his demeanour – complete with high starched collar - in a photograph on the internet of him sitting outside the pub, while his wife Ellen dutifully stands adjacent with one hand placed on the back of his armchair in

The Editor writes: John Allum’s proximity to the aforementioned Tottenham Hotspur FC, prompted a swift check in the Boy’s Bumper Book of the Spurs that just happened to be on my bookshelf. This tome reveals that the day before this postcard was franked in 1909, Spurs had drawn 1-1 away to Sheffield United in the old First Division. The year before they’d been promoted from the Second Division, and the one before that saw them playing in the Southern League. Arch-rivals

the Victorian manner. I suggest these sniffy poses were more to do with keeping still for the camera than deference. He was born in 1863 in Bradenham, Bucks, the fifth of eight children. He joined the navy for 11 years at age 17 as a Domestic 2nd Class. By the time of the 1891 census he was a butler in Eastbourne serving Charles Campion, an Examiner at the House of Commons. Goodchild married Ellen Maria Watson in 1898 at St Georges Hanover Square in London and Lewis Frank Goodchild was born the following year. Somewhere between 1899-1901 the family moved to Berkshire to run the pub. Arsenal were still stuck in Woolwich at that time. (No apology needed to Emirates season ticketholder Reg Brown for mentioning that fact on his page as since 18 May 2013 he enjoys the last laugh!) Another thought. Having been the 1970s equivalent of the one-time District Superintendent myself, I know that district boundaries were jealously guarded. Woe betide anyone straying into a colleague’s patch! Forest Gate is a long way from rural Berkshire. How did he get away with it? JULY/AUGUST 2013 insurancepeople 15

skills gap

Mind the skills gap

Markerstudy’s Tanya Gerrard-White highlights the skills gap for certain roles in insurance – and suggests a solution to fix it

t’s clear there’s a skills gap in certain technical areas and specific roles in insurance – and it’s a gap that needs to be fixed. And to do that, a better understanding is required. Unsurprisingly, there’s a lack of hard skills in technical roles in fraud, actuarial, and underwriting, especially for niche products. It’s also often difficult to find people with the right experience to fill IT positions that require business intelligence and data warehouse knowledge. As a result of this scarcity, these jobs tend to command a high salary. There’s less of an issue with soft skills as these gaps can be more easily filled so long as we can find people with the right attitude.

he challenge for the industry is that insurance needs to be a goto option for high-calibre graduates with mathematical degrees. Large

insurancepeople

accountancy firms have succeeded in this respect in the past, and insurers now need to follow suit. To those lacking insurance insight, the industry has an old fashioned image. It’s frustrating to think that talented young people are entering the jobs market completely unaware of how diverse, dynamic and interesting insurance roles can be. We need to raise our profile to expose the choice of career paths available to them by offering work experience, graduate sponsorship and in-house training. The solution found at Markerstudy was to be part of Lifeskills, created with Barclays. I see this as an extremely valuable programme, giving school leavers what they need to build a career and work experience opportunities that will provide a springboard into their working lives. I would love to see

Tanya Gerrard-White DIRECTOR OF HR & TALENT DEVELOPMENT MARKERSTUDY GROUP

other insurers supporting the scheme, as industry-wide engagement will help grow a more knowledgeable generation. It’s a legacy we will all benefit from, helping us to close the skills gap. The Lifeskills programme, created with Barclays, aims to close skills gaps in the industry through free unbranded curriculum linked education resources and 50,000 work experience placements. See www.barclayslifeskills.com

News

Marsh completes Peru acquisition

Aon expands WorldAware Solutions

arsh has completed its previously announced acquisition of the Rehder y Asociados Group, a leading insurance adviser in Peru. This business includes the insurance broker Rehder y Asociados and employee health and benefits specialist Humanasalud. Terms of the transaction were not disclosed. The transaction, which was announced on May 23 this year, gives Marsh what it describes as “a clear leadership position in one of South America’s best performing economies”. The combined entity will now operate under the name Marsh Rehder.

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on Risk Solutions has launched the Aon WorldAware GeoAlert Map, a technology based enhancement to its travel risk management platform, WorldAware Solutions. The Aon WorldAware GeoAlert Map provides clients with an interactive map that reflects data from multiple intelligence sources and provides insight to help businesses safeguard employees from environmental, geographic and political threats occurring throughout the globe. The platform identifies risks, such as weather, terrorism and natural disasters, and provides alerts of situations that could pose a threat to employees or organisational assets. Analysts in the Crisis Operation Centre will collaborate with risk managers via email, SMS message or telephone.

insurancepeople

News

Solvency II changes still needed T

he EU’s insurance supervisor, the European Insurance and Occupational Pensions Authority (EIOPA) has published the results of its assessment of measures to deal with long-term guarantees in the forthcoming Solvency II regime. Its key concern is that the Solvency II framework

does not correctly assess the available capital or required capital for insurance companies offering long-term guarantees backed by longterm assets. Industry experts have voiced concerns that, if appropriate solutions are not found, the ability of insurers to continue to offer such guarantees and

their role as long-term investors and providers of financial stability in volatile markets could be at risk. “It is imperative that Solvency II measures the right risks and takes into account how the largely long-term nature of the industry’s liabilities and hence its investment strategies affect those risks,”

said Sergio Balbinot, president of the European insurance and reinsurance federation of 34 members, Insurance Europe. “Otherwise the amount of capital that insurers are required to hold will be needlessly increased and unnecessary volatility will appear in insurers’ balance sheets.”

Xchanging manager shortlisted for award

Jon Dye to be Allianz UK CEO

changing’s mobile services product manager, Alexandra Considine, has been shortlisted for Women in the City’s “Future Leaders Award”. She is one of five finalists to attend a celebration breakfast on July 12. The Future Leaders Award recognises women who, at a relatively young age, are making a contribution beyond their functional, technical or specialist area. Award nominations were sought from women working in professional practices, commercial organisations and the public sector in London and the Home Counties. All entrants were required to demonstrate leadership potential as well as an exceptional range of skills. Alexandra Considine has played a major role in the development of Xchanging’s mobile application X-presso.

Aon marks Global Service Day

n June 6 Aon held its Global Service Day, with Aon staff in 44 countries volunteering their time and efforts to support local charities in their communities. “Today, our colleagues unite as a firm to give back to their local communities in order to empower those who need it most,” said Greg Case, Aon plc president and CEO. “Corporate citizenship means going the extra step and contributing to society beyond what you do in your everyday course of business. Aon’s Global Service Day is the embodiment of that philosophy.”

ollowing the decision of Fireman’s Fund Insurance Company CEO, Lori Dickerson Fouché to pursue her career outside of the Allianz Group, Andrew Torrance has agreed to take over as the company’s new CEO. To replace him at the helm of Allianz UK, the current general manager of the company’s retail division, Jon Dye, will become the new CEO. These appointments will take effect as soon as

all necessary regulatory permissions are received. Jon Dye has been with Allianz UK for ten years, first as claims director in 2003 and then as retail general manager from 2007.

Jon Dye

One in six get speeding summons

igures released by LV= show the number of court summons issued for speeding increased by 10% in 2012; almost one in six motorists (16%) have been caught going faster than the legal limit in the past five years. Police handed out half a million fixed penalty notices for speeding offences in 2012; and British motorists were fined £30m for speeding last year. JULY/AUGUST 2013 insurancepeople 17

insurancepeople

News

UIB re-signs with Elite for Motor legal expenses insurers solicitors’ PI I “need to change”

he Financial Conduct Authority has published a report on its thematic project on motor legal expenses insurance (MLEI), which draws attention to the complexity of the product and says that firms need to re-evaluate their approach to MLEI. The authority says there are three areas where firms should review their current practices to ensure they are meeting the needs of their customers – the basis on which MLEI is provided; the quality of explanation at all stages of the customer journey, including the claims process, with the accent on providing “clear, appropriate information”; and the extent of cover provided. Firms are reported to have shown willingness to make early changes to their business processes, and the FCA says it will re-visit MLEI in a year’s time to assess the overall effect of changes.

Aon Benfield gears up for £250,000 charity bike ride

on Benfield has launched ABikeathon, a Paris to London charity bike ride involving more than 220 of its London staff. The event, which takes place from July 4th to 6th aims to raise at least £250,000, to be distributed among 70 worthwhile causes selected by the cyclists. Participants will cover more than 70 miles each day, and almost a third of Aon Benfield’s UK workforce will be participating. Donations to ABikeathon can be made via http://bit.ly/1aVX7mC

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nternational (re)insurance broker UIB has re-signed a binding authority with Elite Insurance for a further year as it continues to target the UK solicitors’ professional indemnity market. UIB claims to be one of the few brokers in the market to have its own capacity

available directly for clients, and is currently working with Elite to develop new products. Elite recently rejoined the ABI and plans are reported to be in place to obtain a financial rating from a leading rating agency later this year.

Arc warns of need for ongoing regulator scrutiny on MLEI

rc Legal Assistance has welcomed the FCA review of motor legal expenses insurance but warns of the need for ongoing regulator scrutiny to ensure consumers’ needs are met. Richard Finan, director of Arc Legal, says the company has championed for a number of years the benefits of MLEI and that these benefits need to be made clearer. “However, the thematic review was conducted prior to the changes brought about by LASPO and fixed recoverable costs, and therefore doesn’t consider the impact of the new MLEI products and models being introduced to the market. This growth demonstrates the ongoing need for clearer information to be provided to customers over what their policy does and doesn’t cover. As a result, there is due reason for the FCA to accelerate the follow up review. “ Commenting on the move away from opt-out sales methods, he adds, “Despite everyone’s efforts to ensure customers are fully informed of the benefits of MLEI at the point of sale, conversion levels will reduce. This does have the potential to result in customers becoming involved in motor related litigation without adequate insurance for legal costs. “In the post LASPO world this is likely to result in these customers, without BTE cover, having to ‘top up’ their solicitors’ costs out of their damages.”

Insurers “risk being left behind” in telematics F

ollowing research, SSP says that “many insurers risk being left behind in the telematics revolution as their legacy systems cannot cope with or properly utilise the big data it generates”. The company believes that, during 2013, telematics will reach a “tipping point” as a number of large insurers who have been piloting usage-based insurance policies over the last two years come to market with new propositions and

technology costs continue to fall. In its paper, ‘Time to take usage-based insurance seriously’, SSP argues that, although the benefits to be gained from using telematics are largely accepted, many insurers are still struggling to understand how to manage the data that it produces and are hamstrung by systems that are no longer fit for purpose. David Waring, insurer division director at SSP comments, “The motor

insurance industry is facing an unprecedented number of challenges brought on by years of heavy price competition, reduced investment returns and increased claims costs. Many insurers are considering how to implement innovative telematics solutions to develop more accurate pricing, improve risk management techniques and deliver a better claims service. “The development of 99% accurate apps and the

David Waring

advancement in smartphone technology means expensive hardwired black boxes are no longer the only option for collecting driving data. With a cost per policy of around £25 and falling, the use of smartphone apps makes it possible to offer telematics to the mass market, not just high-risk drivers.”

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JULY/AUGUST 2013 insurancepeople 19

News

insurancepeople

FCA fines Xcap Securities £120,900 T

he FCA has fined Xcap Securities PLC, a retail investment and capital markets business, £120,900 for failing to adequately protect client money and client assets. This is the first client asset case the FCA has brought under the new penalty regime, which applies to breaches committed since March 6, 2010, and introduces new

penalty levels in such cases. In this case, the fine represents 2% of Xcap’s average client money balance plus 0.2% of its average client asset balance over the period of the breaches. The new percentage levels were applied based on the seriousness of the breaches.

Rise in travel insurance fraud D

esktop counter-fraud services provider VFM Services says that travel fraud is rising “at an alarming rate”, with 45% of claims investigated uncovered as fraudulent. The company reports a 190% increase in cancellation claims in the last 12 months, and a 140% rise in baggage claims. Sally Griffiths, director, VFM Services, says, “We have an ROI on travel claims of a minimum £5 for every £1 spent, so quality counter-fraud training and outsourcing to experts who will effectively manage those claims is worth the investment, to help deter fraudsters and try to halt the increase.”

Tracey McDermott, director of enforcement and financial crime at the FCA, says, “This is the first case that the FCA has brought for breaches of the Client Assets rules using our new penalty regime. The new levels of penalty are expected to result in larger fines, demonstrating the seriousness with which we view these failures and

serving as a stronger deterrent to firms. “We have been very clear about our expectations of firms that have responsibility for investors’ money and safe custody assets. Xcap failed to meet the required standards from the very outset of its business and continued to have widespread failures for a number of months.”

Gallagher London PI preferred provider for MGAA

allagher London has been named as a preferred provider for PI business by the Managing General Agents’ Association and has devised a bespoke policy wording that includes civil liability arising out of underwriting authority. New and existing MGAA members will qualify for a discount, funded by Gallagher London, equivalent to two months of membership fees in their first year as a PI customer. They will also have access to advice and tailored coverage for cyber risks, D&O liability, and office insurance. Cover includes libel and slander, breach of copyright, data protection, cyber liability, and financial ombudsman awards and prosecution costs.

Taking away the financial burden of cancer

ommenting on the data from Macmillan projecting that, by 2020, nearly half of the UK population will get cancer during their lifetime, Duncan Finch, MC of retail protection at Legal and General, says: “The impact of cancer on a sufferer and their family is seismic on all aspects of life and can last well beyond the initial diagnosis and treatment. It is imperative that families think about how best they can protect themselves financially before they become ill to ensure all distractions from battling it are minimised or removed. Having life insurance or critical illness cover means the additional burden of worrying about finances at such a crucial time is taken away giving families financial peace of mind when they most need it.”

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BIBA welcomes FCA report on motor legal expenses

Willis all risks cover for commercial crime

IBA has been working with the FCA on the motor legal expenses insurance (MLEI) review and underlines the importance of the customer having choice and not being forced to buy it by rolling it into the main motor policy. Chief executive Steve White says, ““Motor claims can be complicated, expensive and stressful so MLEI is something that all policyholders should consider when arranging their insurance. “The move to customers buying online has seen them receiving less information about how MLEI works. We welcome the FCA’s response and hope it will bring greater clarity to customers in the sales process. We recommend that customers always speak to an insurance broker who can correctly explain how MLEI works and arrange a suitable policy.” Graeme Trudgill, BIBA executive director, adds, “MLEI can help the policyholder to pursue their legal right to recover their uninsured losses in a non-fault situation. It is very important that customers have a clear understanding of what MLEI is and when it does and does not operate. BIBA will produce guidance for its members on MLEI and the sales process.”

illis has launched CRIMEstar, a new commercial crime all risks wording, covering businesses for losses resulting from all type of dishonest activity or criminal damage. Francis Kean, executive director of Willis’s financial and executive risks division (FINEX), says,“Many conventional crime policies, in trying to keep up with the changing and complex world of fraud, have themselves become overly complicated. Adopting the same

approach which we followed with DARCstar – the award winning “all risks” cover for company directors – we instead started with a clean sheet of paper. “We focused on delivering a policy which was easy to understand and where the cover was not tied or restricted to specific sub-categories of insured perils or events. These innovations are unique to CRIMEstar and greatly reduce the potential for friction in the claims settlement process.”

Motor Claims Made Simple With numerous significant changes in the motor claims sector the choice of claims handling partner has arguably never been more difficult. No need to worry. Why look any further. We can make that choice very simple for you. Our flexible range of comprehensive motor claims solutions offers innovation and first class customer care delivered through a strong set of ethical principles. Claims are resolved quickly and efficiently always with your client’s best interests at the very heart of our activities. So call us now and speak to Alex Dolman, Head of Internal Sales & Development on 01827 308663 or email alex.dolman@rtasolutions.co.uk

We would be delighted to become your choice of claims partner. JULY/AUGUST 2013 insurancepeople 21

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Trade credit rates rising across Europe

ising European trade credit insurance rates are being fuelled by increasing risk and bad debt losses, according to Marsh. Rates have risen for those firms with poor loss histories since Q4 2012, as customers increasingly use their suppliers as a source of cash flow funding, which in turn is creating a sharp rise in claims notifications. In its paper, “European Credit Risks and the Effects on Premium Rates”, Marsh reports an increase in claims

notifications and deteriorating insurance underwriting conditions across Europe since Q4 2012, although demand for trade credit insurance products remains strong and capacity buoyant for stable risks. Tim Smith, EMEA trade credit practice leader, says that trade credit claims are hitting the insurance market with increasing frequency and severity. He comments: “Although European trade credit insurance capacity remains buoyant,

insurers are applying more stringent underwriting criteria and it will become increasingly difficult for those companies with poor loss records to buy adequate

insurance protection. In order to secure competitive rates from trade credit insurers, evidence of robust financial risk management and claims histories is crucial.”

Claims handler used floods as a front for fraud

Lancashire claims handler, who fraudulently claimed almost £7,000 from her employer, has been sentenced. She had been given temporary permission to authorise household claims up to £1,000 after flooding in Scotland in October and November last year had

resulted in an increased number of claims. She created 11 false claims using the personal details of previous genuine claimants and authorised fraudulent payments into her own bank account. The fraud was uncovered when her employer was contacted

by householders who had been sent a letter saying that their insurance claim had been authorised, when they had not made a claim. The insurer referred the case to the City of London Police Insurance Fraud Enforcement Department. At Leyland Magistrates

Court, she pleaded guilty to fraud by false representation and was given an 18-week prison sentence suspended for 18 months and ordered to complete 250 hours unpaid work. She was also ordered to pay her previous employer £600 compensation.

Actuaries comment on long-term guarantees

ommenting on the end of EIOPA’s long-term guarantees assessment, David Hare, president-elect of the Institute and Faculty of Actuaries (IFoA) said: “EIOPA’s long term guarantees assessment has been much anticipated because it is an important step towards the implementation of the principles underlying the Solvency II framework. The approach to long term guarantees in Europe has been one of the main areas of uncertainty and so the insights within EIOPA’s report are key to the ‘next steps’. Today’s proposals outlined by EIOPA would seem to address many of the important issues. However, the detail

22 insurancepeople JULY/AUGUST 2013

needs to be worked through and the effect in a variety of scenarios assessed, before the full implications of the proposals for companies and their customers can be understood. “The IFoA believes that the expertise of actuaries, in understanding the risks associated with insurance business and all other aspects of enterprise risk management, can provide important insight to the ongoing discussions around how best to achieve the consistent quantification and appropriate management of risk envisaged by the Solvency II regime.”

Charity golf day raises over £20,000

he On Course Foundation charity day for severely injured servicemen at Skipton Golf Club on June 3rd raised a total of over £20,000. The day was organised by David Rasche, senior nonexecutive director of SSP, at the club where he learned his golf more than 50 years ago. As well as SSP, two of Mr Rasche’s other businesses, GB Group and Onyx Group, fielded teams, in addition to

many others from the insurance industry. Among participating teams were 16 injured servicemen and exservicemen, as well as John Simpson, founder of the On Course Foundation. The charity was set up three years ago by John Simpson, a former senior vice president of IMG, the sports management business. It helps severely injured servicemen and women recover through golf and

competed, with the equal top scores of 95 points being recorded by the teams from Vistage and from Budget Group.

assists in finding them employment in the golfing industry and other supporting businesses. A total of 17 teams

Xbroker adds Swiss Re and Alpha to panel

iche commercial underwriting specialist Xbroker has added Alpha Insurance A/S in collaboration with Swiss Re to its panel of capacity providers. The new capacity enables Xbroker, part of the Moorhouse Group, to expand

its motor offering to brokers to include motor fleet for selfdrive hire, haulage and couriers. Further new products are planned, and Xbroker is recruiting a senior motor fleet underwriter to help administer the new capacity.

Karl Railton, head of underwriting and propositions at the Moorhouse Group, says, “Joining forces with Alpha and Swiss Re will enable us to better target risks within motor that brokers often have difficulty finding a market for.

Blending our specialist underwriting experience, the high degree of flexibility Alpha provides and the strength of Swiss Re we are able to provide a competitive and sustainable market to brokers for niche motor fleet risks.”

Scheme for injured jockeys renewed

he Professional Jockeys Association and logistics business, the Stobart Group, have renewed an insurance scheme intended to help jockeys suffering career-ending injuries. As part of the agreement, Stobart Group continues as headline sponsor of The Lesters awards night. One young former jump jockey who has benefited from the scheme, which was first launched in 2011, is Jimmy Derham, who was forced to retire from the saddle after sustaining severe neck injuries in a fall at Uttoxeter Racecourse. He said: “Nothing can compensate you for the loss of your chosen career, but the career-ending insurance payment has at least provided me with a capital sum which will be an enormous help. All professional jockeys are grateful to Stobart.” JULY/AUGUST 2013 insurancepeople 23

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Uninsured driver fines not enough, says AA A

mong the motoring offence reforms being introduced by the government in July is an increase in the fixed penalty for driving without insurance, from £200 to £300. However, Simon Douglas, director of AA Insurance, says that, while this increase is welcome, it will do little to deter those who habitually drive without cover.

“It will certainly catch those who have perhaps neglected to renew their cover promptly or find themselves accidentally uninsured, perhaps after a long period overseas or in hospital. “But many uninsured drivers are young men who may already have several motoring offences to their name. The cars they drive may have no

MoT or tax, and offenders often have no driving licence or have already been banned. In fact last year, 11,000 convicted uninsured drivers had previously been disqualified. “Offenders may be sent to court because of the seriousness of their offence or elect to do so. Although the maximum fine available is £5,000,

Simon Douglas

this has never been imposed. It is means tested which means that the average fine is £299, just under the new £300 fixed penalty. Last year more than half (53%) of court fines for uninsured driving were £200 or less.”

HBC Vehicle Services MBO Glazing NVQs for Allglass technicians he management team Canvey Island, Essex, and

at HBC Vehicle Services has completed a management buyout of the business from founder Terry Holding. The new owners – Steve Hankins, managing director; Matthew Bache, financial director; Geoff Riebold, IT director; and Jim Chatten, commercial director – have a total of more than 50 years’ service at HBC. With head office at

Steve Hankins

employing 120 staff, HBC was formed in 1964 and specialises in vehicle services and salvage. It was the first to conduct onsite vehicle auctions and to conduct auctions online. MD Steve Hankins says, “HBC has a fantastic future and the management team are delighted to have completed this transaction. This deal represents a marvellous opportunity for us. We have great confidence in the business and its people and are well positioned for organic growth. The board and all our staff at HBC have a strong understanding of our customers’ needs and the many strengths that exist within our business.”

24 insurancepeople JULY/AUGUST 2013

ublin technicians at vehicle glass repair and replacement company, Allglass, have become the first in Southern Ireland to achieve a GQA qualification in automotive glazing through a joint initiative with Auto Windscreens. Thirteen technicians at Allglass, which operates throughout Southern Ireland, gained the GQA Level 2 NVQ Diploma in Automotive Glazing (QCF) certification. The company now plans to roll out the assessment across all its depots. After deciding upon UK glass specialist awarding body, GQA Qualifications, for its training needs, Allglass approached Auto Windscreens to aid and assess its technicians throughout the NVQ process.

GQA chief executive officer Mick Clayton (left), with Allglass technician Hubert Falkowski (centre) and Auto Windscreens’ innovation and training manager, Chris Bonsall.

“Magic sponge” for PA insurers

KPMG welcomes revised accounting proposals

nalysis carried out by actuaries at Towers Watson has shown that English Premier League football teams are on course to pay over £100 million in salaries in the coming season to players unavailable for at least 30 days due to injury. But the company says that applying better analytical models to the injury risks associated with competing at the top level could offer a form of predictive “magic sponge” for clubs and insurers offering sports personal accident cover. “Quantifying ‘lost salaries’ after the fact potentially offers useful benchmarks for insurers providing cover in this area, but offers few crumbs of comfort to the affected teams and little insight into what may happen in the future for either group,” said Paul Moorshead, a senior consultant at Towers Watson. He added: “A more valuable measure is to attempt to identify those players or groups of players who are more likely to be susceptible to severe injuries …... Just as has occurred in other areas of commercial insurance, data and models can help understand what contributes to them and the underlying risks.”

PMG has welcomed the revised proposals on insurance accounting published by the International Accounting Standards Board on June 20. Gary Reader, the company’s global head of insurance, says, “The new accounting model for insurance contracts proposed today by the IASB would introduce more volatility to the profit and loss account but more accurately reflect the risks and liabilities undertaken by

insurers, bringing insurance accounting into the 21st century – but not without a cost. The level of change and the complexities associated with implementing these proposals should not be underestimated. Insurers would be likely to feel the consequences throughout their organisations. The devil is in the detail and the scale of change would depend on the accounting bases that insurers use today.”

Consumer panel welcomes tougher standards for bankers

he Financial Services Consumer Panel has welcomed the Parliamentary Commission on Banking Standards’ call for higher professional standards for bankers. In its evidence to the Commission the panel called for a new ethical code for bank directors backed up by criminal sanctions. Mike Dailly, consumer panel working group chair, comments, “We are delighted that our call for tougher professional standards has been endorsed with the suggestion of a new Senior Person Regime and a new set of Banking Standards Rules. Individuals are all too visible when

bonus payments are handed out. They also need to be accountable when things go wrong through excessive risk taking. The recent history of banking failures demonstrates how directors have all too easily sidestepped any personal responsibility for their actions. “We agree with the Commission that new standards of conduct will not be effective unless they are backed by criminal sanctions. We welcome the suggested new criminal offence of reckless misconduct in the management of a bank.”

New version of Pulse from Adactus

dactus has announced a new version of Pulse, its cloud based claims supply chain management system. The new version includes Desktop Validation Workflow, which utilises the technical knowledge of on-site engineers to provide call centre based service aimed to provide a cost-effective decision making process for the assessment of insurer’s liability, cause and repair cost. Also included is Enhanced Desktop Scoping, which

aims to allow a detailed and accurate schedule of work to be created by suppliers. Paul Hayman, managing director of MA Assist, a property claims management company, says, ““We are continually reviewing our workflow process to meet our clients’ needs and Pulse v2.0 will help us provide a broader service. Developing this capability with Adactus has given MA Assist a very important service differentiator over competitors.” JULY/AUGUST 2013 insurancepeople 25

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CII to consult on corporate chartered standards T

he CII is reviewing the existing standards and eligibility criteria for corporate Chartered titles, to ensure that they “continue to underpin customers’ expectations of a Chartered firm”. The initial phase of the review has seen the CII undertaking a series of one-to-one interviews with stakeholders from across the insurance and financial

planning sectors as well as facilitating a series of focus groups with consumers and SME’s. The feedback from this early fieldwork will be published in July as an open consultation with members, non-members and other stakeholders invited to share their thoughts on what the standards and criteria of corporate Chartered status could look like in the future.

Amanda Blanc, president of the CII and a Chartered insurer, said, “Chartered is widely recognised by customers as the ‘gold standard’ and has been hugely successful in encouraging firms to embrace the challenges of professionalism. The CII is mindful of the importance of ensuring that any future CCT scheme is able to

withstand robust scrutiny from the public. “Consequently any long term vision for Chartered must support the CII’s mandate to ‘secure and justify the confidence of the public’ in the insurance and financial planning sectors and recognise the importance of maintaining the reputation of the Chartered brand.”

Yutree reports growth and leaves Cobra

utree Underwriting has hit targets agreed with partner insurer ProSight Specialty Insurance four months ahead of schedule,

Kevin Hancock

having written over £1m GWP in the first eight months of the partnership. Yutree has recently left the Cobra network and reports strong organic growth in both direct commercial and wholesale divisions. Managing director Kevin Hancock says, “The support from Cobra has been very welcome in our first year of trading and now we have decided to work with our clients, brokers and insurer partners as a truly independent intermediary.”

Be Wiser chairman Mark Bower-Dyke with, among others, Martin Capewell and Mark Cliff at the Be Wiser Race Day on the 13th June 2013. (See page 4)

Community award for Ecclesiastical

cclesiastical has been awarded a CommunityMark, “the national standard for leadership and excellence in community investment”, run by Business in the Community. The company

is one of only four in the UK to receive the mark this year and one of only three insurers in the country ever to have received it. Ecclesiastical has been awarded the CommunityMark for its

26 insurancepeople JULY/AUGUST 2013

community activities in its 125th anniversary year, when the company launched its Stronger Communities plan and its 125 community fund, established a new strategic charity

partnership with Carers Trust and launched an extensive staff volunteering programme, Helping Hands, which saw nearly 60% of the company’s staff volunteer for good causes in the first year.

In association with

On the move Who’s going where? Bluefin

Florence Tondu-Melique

Bluefin Insurance appoints Paul Roberts as acquisitions director. He joins from Towergate where he was most recently director of acquisitions, network division.

Hiscox Hiscox appoints Florence Tondu-Melique as European chief operating officer. Joining from AXA, she was most recently director of real estate in charge of global marketing and communications and a member of the executive committee. Before that she was an engagement manager at McKinsey & Co.

DUAL DUAL appoints Graham Sims to lead the European accident and health division. Joining from Jubilee Managing Agency where he was head of accident and health, he previously founded Impact Underwriting, was also head of the City division at CIGNA Europe, and of the A & H division of Independent Insurance.

Graham Sims

VEHICLE SERVICES Collection, storage and sales

RFIB RFIB Holdings appoints Ashley Rudd as a broker in its yacht team. With more than five years’ experience serving onboard yachts and superyachts, he was most recently chief officer and acting captain of a 54 metre schooner.

Barbon

Ageas Ageas appoints Mark Hanson as marketing director for RIAS and Castle Cover. He has previously held roles at AXA Life, Lloyds TSB Insurance and Zurich Insurance.

Kiln Kiln appoints Richard Bennison as a nonexecutive director. He was most recently chief operating officer of KPMG Europe and CEO of KPMG in the UK, where he has previously worked as head of audit and head of the financial services advisory group.

Hiscox Re Hiscox Re appoints Jeremy Pichin as CEO. He will retain his previous roles as CEO of Hiscox Bermuda and group claims director. Before joining Hiscox in 2005 he was head of claims at Lloyd’s and a board director of Sedgwick Group.

Ashley Rudd

Barbon appoints Ian Sutherland as acting chief executive. He was previously group financial director and has held CEO and senior executive roles at Cigna, American Express, Aegon and AXA. He replaces Mike Ramsey.

Mark Hanson

Covéa Covéa Insurance appoints Paul Hodgson as director of commercial underwriting and business operations. He was previously director, commercial lines underwriting. Mike Clothier is appointed head of technical underwriting and was previously commercial lines underwriting manager. Nick Dinsdale is appointed trading underwriting manager and was previously portfolio underwriting manager.

CDL CDL appoints Nigel Phillips as commercial director. He was previously CDL’s head of business strategy.

Claire Ginnelly

Premier Choice Premier Choice Group appoints Claire Ginnelly as head of private medical insurance business development. With over 22 years’ experience, she has previously been head of distribution at SimplyHealth and Groupama, head of intermediary sales at Standard Life Healthcare and has also held roles at Norwich Union, Chancery Healthcare and WPA.

JULY/AUGUST 2013 insurancepeople 27

On the move Who’s going where? Autoglass Autoglass appoints Niki Coppard as HR director. She was previously HR director for dental practice IDH, HR director at Lloyd’s Pharmacy and has held other HR roles with Argos, the FSA and Linklaters solicitors.

Niki Coppard

TEn Insurance

Neil Williams

VEHICLE SERVICES Collection, storage and sales

PI Protect

Matt Bunting

Hardy

TEn Insurance appoints Neil Williams as non-executive director. With over 30 years’ experience, he has worked at Royal Insurance and Lombard Insurance before becoming managing director of broker Deacon (now part of Gallagher).

In association with

Paul Lee

Aspen Aspen Risk Management appoints Paul Lee as general manager for its business in the North. With over 30 years’ experience, he was most recently planning and change director at Ecclesiastical and has also held senior roles at Fusion, Independent Insurance and Eagle Star.

Premium Credit

Alan Atkins

28 insurancepeople JULY/AUGUST 2013

Premium Credit appoints Alan Atkins as head of retail broker business. Previously their senior manager, national and key accounts for six years, he has also worked at NIG for 14 years in various underwriting, sales, claims and credit roles.

Hardy Underwriting appoints Matt Bunting as head of claims. With over 25 years’ experience, he was most recently a consultant to Markel and Scor. Other roles include senior claims manager at Zurich Financial Services and deputy director of claims at Catlin.

PI Protect appoints Denise Mercer as underwriting manager. With 34 years’ experience, she was most recently senior underwriter at Hiscox Insurance and has also worked at Royal SunAlliance as ProFin area underwriting manager – North.

Denise Mercer

Safeonline

Ecclesiastical

Safeonline LLP appoints Geoff Kinsella as a partner and chief operating officer. With over 30 years’ experience, he previously ran his own consultancy business Kinsby Ltd and was a member of the group executive committee and head of business development at Cooper Gay Swett & Crawford.

Ecclesiastical appoints Jacinta Whyte as deputy group chief executive, an executive director and interim managing director of their UK general insurance business. Joining Ecclesiastical in 2003 as general manager and chief agent of their Canadian business, she previously held various senior executive roles at RSA.

Towergate Towergate Insurance appoints Derek Henry as group carrier relationship director. He was previously corporate partnerships director at Junction and has held senior roles at Capita and RAC.

Jacinta Whyte

by Graham Getgood

This column’s recent exposé of some of the insurance people who… I think we have to add… were fortunate enough… to work in the enigmatic Royal Exchange building in London has helped lift the lid on a world of liveried waiters, staff bank accounts at Coutts, and the ability to chat up the girls from the typing pool while enjoying summer packed lunch sandwiches on the magnificent front steps. Retired broker Graham Getgood was there!

confession – my memories of the wonderful Royal Exchange building go back much earlier than most. So how did a poor working class boy of sixteen from London’s East End manage to get a job there in 1960? The product of a single parent family (in the days when it was not fashionable!) and a rough East End of London school, I was offered three job interviews. I chose Royal Exchange Assurance because they had the best brochure. With a sense of trepidation I entered those famous portals to meet the Personnel Manager in his huge oak panelled office. Unbeknown to me his only love in life was the sports and social club on which Royal Exchange lavished huge and unrestrained amounts of money. "Do you play football or rugby young man," he

boomed. "Football, sir," I replied. “What about cricket?” "Yes sir." "Would you be prepared to uphold the honour of the company on the sporting field?” "I would like that sir". "Capital! We have a vacancy in Head Office Fire Department. You will start next Monday. Oh, and by the by, your salary will be £300 per annum.” I was to discover that Royal Exchange took some pride in taking working class erks like me, and turning them into something vaguely resembling gentlemen. The dress code was exacting. My Nan raided her meagre savings to buy me a suit. My shirt collars were affixed with studs. They were made of brilliant white cardboard and every two weeks a firm called Collars Ltd would deliver to my desk ten new items in a box– and take the old one away. These collars were rigid and sharp on the edges. If

you have heard the term "upright young man", that was me. Look down, or move your head suddenly, and there was a danger of painful neck injury. The tie knot was crucial - tight with a fold just below the knot - none of your namby-pamby Windsor knot nonsense! It didn't take long for me and my contemporaries to realise our appearance was a source of pride. The clincher was the beneficial effect it seemed to have on the girls from the typing pool! In summer we chatted up those young ladies while eating our sandwiches on the front steps of that great edifice. This was our lunch, or ‘luncheon’ as we were taught to describe it. Sitting there on the steps, there was the hint that management thought we made the place look untidy, but the commissionaires (all ex-army) seemed to like us, and as that was their territory we were allowed to get on with it. The sporting side soon manifested itself. A liveried waiter would, with due deference, deliver an envelope to my desk each Friday containing instructions and a rail ticket to the venue. There was also a subsistence allowance that, compared to my income, can only be described as generous. It didn't take long to fit in, so “Getgood” found himself a member of the Dramatic Society and the Chess Club, with memoranda falling like confetti on my Chief Clerk’s

in association with:

desk instructing him to release me from work for said purposes. That this was a source of some irritation to him is perhaps an understatement!

fter three years it was time to move on, and a position at Willis Faber in Fenchurch Street offered a much enhanced salary. Serious business ensued, together with CII studies. My career had begun! Royal Exchange made something of me, gave me pride and overcame my natural inferiority complex for which I am forever grateful. Those days have now gone forever. Forty something years later I was invited with my wife to a private dinner at Mansion House with the Lord Mayor of London - a client and friend. Sir Clive Martin knew this would be special for us, and we were accommodated in the State Bedroom that night. Before going into Mansion House I walked my wife across the road to the steps of the Royal Exchange and reflected upon the journey I had taken. It was an emotional moment.

JULY/AUGUST 2013 insurancepeople 29

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