insurancepeople issue 46 September 2014
Andy Homer See Page 10 Insurance People inside include:
Malcolm Forbes-Wilson Adrian Furness John Gibson Nick Giddings Andy Hawkes Simon Hodgin David Sinclair Chris Thornton Terry Wellard
ce nsuran I e h T “ ith zine w a g a M ality� Person
Understanding the things that are important to you and your customers can only be achieved by listening and getting closer to you - our brokers. This means that we can provide even more innovative and exible insurance solutions designed to help your business grow and increase proďŹ tability. Our executive range of high net worth and commercial products are designed to the highest standards, backed up with excellent service; as evidenced by the many industry awards we have recently won. Our immediate access to decision makers and our ongoing commitment to exceptional customer service, competitive pricing and fast, fair claims settlement makes Sterling a company that truly makes a difference in the marketplace.
To ďŹ nd out more about how Sterling can deliver great service to you, contact our Broker Operations Manager, Mark Arends via the details below.
T: 0845 271 1300 E: marends@sterlinginsurancegroup.com www.sterlinginsurancegroup.com Sterling Insurance Company Limited and Sterling Life Limited are incorporated and registered in England and Wales under numbers 498605 and 911235 respectively. They are authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. They are covered by the FInancial Services Compensation Scheme and the Financial Ombudsman Service.
surance “The In with ne Magazi ity” Personal
in association with
insurancepeople
leader
www.insurancepeople.uk.com
Have you heard the news?
S Editor and Publisher
Consultant Editor
Andrew Newman
Brian Susman
kilful marketing of insurance to consumers is on the up, and customer service levels are scoring highly, certainly in this part of the world according to verbal, local consumer feedback. There’s plenty of satisfied customers out there willing to tell you about it. So what is the industry doing now that it wasn’t doing before? Two possible answers - more professionalism (Aldermanbury Declaration etc), plus fewer lip-service smokescreens when it comes to the genuine adoption of marketing philosophies, driven by what buyers actually need and want.
Commercial Director
Production Director
Jeni Hall
Adrian Susman
Editorial
Andrew Newman FCII, Dip.M andrewnewman@talk21.com 01892 730539 Design & Production
Adrian Susman adrian@insurancepeople.uk.com 07981 993974
So all the more shocking when an excruciating exception turns up. A 70 year old lady asked her insurer to re-price her private healthcare policy and remove unnecessary elements of cover – childbirth, parent accommodation, hospitalisation of children under 14, and pregnancy complications. She was told, “Sorry but this is standard cover for everyone… including men.”
September 2014
In this issue 2
Late news
3
Market talk
10
Interview Andy Homer
12
Adrian Furness, Covéa
13
e-trading Nick Giddings, PowerPlace
It seems some players still haven’t heard the news. 14
Commercial Director
Jeni Hall jeni@insurancepeople.uk.com 07969 510172
Risk management Andy Hawkes, Cardinus
15
www.insurancepeople.uk.com
Pet Insurance John Gibson, Markerstudy
Printers
Pensord Magazines & Periodicals Tram Road, Pontllanfraith, Blackwood NP12 2YA
16
Customer service Chris Thornton, Auto Windscreens
insurancepeople PO Box 537 Tonbridge Kent TN12 9WG t 01562 862990 m 07981 993974 e adrian@insurancepeople.uk.com
Leadership & vision
8
Simon Hodgin looks northwards with Sterling
12
Adrian Furness says it’s time to shake-off all the old legacies
17
Who said insurance is boring? The memoirs of the late Malcolm
Also find us on:
Forbes-Wilson
ISSN 2043-9202
18
News
27
On the move Who’s going where?
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.
29
13
Nick Giddings confirms one-size is no good for automated commercial
15
John Gibson wants tails to wag for pet cover
On the Road Wing Terry Wellard takes off
SEPTEMBER insurancepeople 1
insurancepeople
Late News
in association with
Lloyd's – “Meet the Market” in Manchester L
loyd's is to hold a regional “Meet the market” event on Tuesday, October 7 at the Marriott Victoria and Albert Hotel, Manchester. Free of charge, it is open to UK regional brokers, broker networks and their members, MGAs, risk managers and other insurance professionals. Primarily the event is a forum for networking with Lloyd’s underwriters and brokers from over 35 firms operating within the Lloyd’s market. These market practitioners will be available to answer questions and to discuss brokers' clients’ insurance needs. This event will also provide an opportunity to hear from a number of speakers about the process of accessing Lloyd’s and doing business with the market. Lloyd's says that those attending can expect to:
● Meet with senior personnel from the Corporation of
Lloyd’s ● Provide networking opportunities to meet Lloyd's
underwriters and brokers specialising in UK business, including personal lines, commercial combined, SME and schemes/affinity business ● Find out more about Lloyd's broker registration and
coverholder (delegated underwriting authority) approval process.
● Gain a better understanding of how to access the
Lloyd's market by experiencing the replica underwriting room ● Increase knowledge about new products and
specialist classes of business at Lloyd’s
Editor's note: This is the way today's Lime Street takes “Lloyd's to the provinces”. Go to page 29 to see how it was done in the 1970s!
Single brand for Gallagher MGAs
Aon backs apprenticeship standard
A
A
rthur J. Gallagher has announced a new collective identity for its UK managing general agencies to build on the creation of a single MGA operating model established earlier this year, distinct from its delegated authority underwriting arm, or MGU. Pen Underwriting will become the single brand that unifies the collection of specialist transactional underwriting businesses which has grown through acquisition and entrepreneurial start-up over the last three years — an expansion that began 2 insurancepeople SEPTEMBER 2014
with the acquisition of Woodbrook Underwriting Agencies in March 2011. Pen Underwriting will represent the full spectrum of underwriting services offered — from the e-trading MGAs specialising in auto-rated quotes without referral for standard and nonstandard risks to the teams dealing with large, complex risks that require individual underwriting and processing. Arthur J. Gallagher’s delegated authority underwriting division, or MGU, will retain the OIM Underwriting brand.
on has welcomed the government Trailblazer standard for insurance apprentices. Dominic Christian, CEO of Aon UK, says, “We are proud to have been instrumental in the development of the new apprenticeship standard for the risk management and insurance industry in the UK and we welcome its publication today by the Government. I would like to thank colleagues across the sector who contributed to the development of this new apprenticeship standard which offers a real alternative to university to build a strong career in our industry. “Developing a staff of unmatched talent is one of the cornerstones of our business strategy and we recognise there are multiple pathways to a successful and rewarding career. An apprenticeship is one such option and our own programme empowers young people from all backgrounds with the opportunity to gain a valuable qualification and experience of work. Our own apprenticeship scheme will have grown from an initial 11 apprentice recruits in 2012 to 50 by the end of 2014. Almost all of our former apprentices remain colleagues at Aon, and one of the current scheme, Daniel Kinlan, won the 2014 Broker Apprentice of the Year. As someone who entered our sector at a young age myself, it’s hugely important to me that Aon places such an emphasis on apprentices.”
market talk
Andrew Newman
in association with:
Dunn joins Markerstudy S
ince founding and owning BDML Connect, Sandy Dunn – he’s the ‘D’ in BDML - has moved full circle. He now rejoins the business under its Markerstudy ownership as group markets development director. Perhaps one day we could see the ‘Sandy Dunn Story’ in these pages, but for the moment space only permits a few names in his four decade insurance career, even before he founded BDML. He established Eagle Star's direct operation in 1988/89
and then launched the Touchline direct insurance business in 1993. He was also a director of the GAN Group from 1992 to 1998 (that’s when I first enjoyed the pleasure of meeting him) and was MD of Rossborough Insurance Services which later became BDML Connect. Other names since then include Bluefin (formerly Venture Preference), Supercover Insurance (acquired by Markerstudy this year), Total Loss Settlement Services, DataCover Insurance, Call
Connection, Swinton Insurance Group, Capita, and Wunelli. No wonder Kevin Spencer, Markerstudy group CEO says Sandy’s wealth of experience makes him one of the most recognised and respected names in the insurance industry. Kevin adds, “Our paths crossed recently on both the purchase of Supercover and the 2013 acquisitions from Capita of Lancaster Insurance Services, Sureterm Direct, BDML and Delta Underwriting, where he
Sandy Dunn
gave his counsel. It’s always a privilege to work with Sandy, and I am now delighted to welcome him to our Group.”
Time to catch up with the kids? I
n any conversation involving the insurance industry’s need for “strong leadership and vision” it’s inevitable that many elements under discussion have to wait on the cutting-room floor. Until, that is, the opportunity arises to fit them all together under a specific theme on a future occasion. That’s what occurred during my chat with Adrian Furness, claims director at Covea Insurance. His article appears on page 12, and in an aside away from the main theme of leadership and vision Adrian offers the following sobering thought:The technology my children currently use to communicate with their friends is streets ahead of anything the insurance industry currently employs on the claims front. That’s tweeting, tablets, skyping, taking photos etc. And the results of that inertia are very evident whenever a claimant demands action, such as acknowledging a claim, getting an adjuster to call, or simply getting off their backside. That’s just one example of the tasks that lie ahead if insurance is to have any future in its dealings with
“
consumers. We’ve got to get ourselves collectively into a position where we can respond appropriately in the digital age. So if a customer wants to Skype then fine. In fact take it further – why not let the customer video the damage and talk you through the claim. Hey presto! An instant low-cost assessment; an engaged customer who doesn’t feel alienated from the process; and a claim settled more quickly. And probably at less cost. Unless that happens we will still have adjusters turning up days or weeks after the claim has been reported etc etc
”
H’m. Adrian’s last para reminds me of Woody Allen’s plea to camera in Annie Hall when he uses a fantasy sequence to right a wrong in the cinema queue. “Now, if only real life was like that,” he pleads. The irony is that, unlike Allen’s impossible dream, the future depicted by Adrian Furness is very capable of fulfilment – and not too far in the future either. All it needs is some “strong leadership and vision”. Read the Adrian Furness article ‘Time for strong leadership and vision’ on page 12
SEPTEMBER insurancepeople 3
market talk
“A must-do event”
Yet another successful Wellard charity day! The annual golf day in aid of children’s charities organised in June 2014 by Insurance People contributor Terry Wellard raised £25,500 – an increase on last year’s total, and no mean achievement in these straitened times. As Terry says, while some firms are forced to make cutbacks on corporate events of this nature, others are ready to take their place. This has become a “must-do” event and here’s Terry’s 2014 report
A
t long last my prayers were answered this year at Stockport Golf Club. We had perfect weather for golf, including intermittent sunshine, and a temperature that encouraged the wearing of shorts - which have rarely been witnessed at this event. When people ask, “Why Stockport?" I have always proudly responded that apart from tradition, I want everyone to experience the privilege and delights of playing one of the finest golf courses in the country, particularly when the weather is good. Now everyone who attended this year knows that I was not dreaming or going ‘over the top' with enthusiasm as the accolades were overwhelming. After the presentation dinner, fines, and cabaret, unbelievably our guests sat outside the club house on a balmy summer’s evening for ‘one for the road' into the early hours. Once again we equalled our record of 23 teams taking part. This would have been exceeded but for a couple of late withdrawals. Regrettably, you have to accept that unforeseen circumstances are going happen when large numbers are involved. But they all paid up, bless ‘em! Wall plaque placed by The charities did not Beechwood Cancer Care Centre lose out.
4 insurancepeople SEPTEMBER 2014
I can therefore confidently predict that we will exceed the £25,000 raised last year, and by the time you read this report all cheques will have been delivered to the deserving candidates, which in the main will be children's hospices or child care organisations. This exceptional event has already been reserved for next year on Wednesday 10th June 2015. In conclusion I would like to express my thanks and appreciation to all our supporters including some who do not play golf, and which also echoes the sentiments of the recipients who are so grateful.
The golf day of the year
A
truly wonderful day (and night) once again was had by all at the charity golf day run and hosted by the inimitable Terry Wellard, ably assisted by Steve Duffy. This annual golf day is held in June at Stockport Golf Club, a beautiful course deep in the North West of England. This year saw 26 teams of four listed to play. This golf day has been running for many years with varying names and sponsors, but the continued underlying theme is Terry and the charity focus, helping in the main children’s charities throughout the country. So other than the obvious benefit to charity what makes this day so special? Why do ‘the great and the good’ travel in their increasing numbers to a golf day in Stockport. Well it offers so many things, a wonderful golf course, beautiful weather (it never rains up North), fantastic company, and oh yes, a free bar. I was introduced to this day ten or so years ago and it immediately became a fixture in my diary offering an opportunity to see old friends and network with potentially new business partners. In purely financial terms this will not be the cheapest golf day you have ever been to, but for value of that hard-earned pound (whether your’s or the firm’s) it cannot be beaten. If you wish to get involved contact Terry or Steve over the next few months and book yourself a team at the golf day of the year. Mark Wooldridge, Sales & Marketing Director, Home & Legacy
in association with:
Rain stops play in Halifax
Win for Open GI Brian Susman writes:
T
Fourteen worthy causes This year we included a donation for Menkes Foundation in addition to the following:Beechwood Cancer Care Centre Claire House Children’s Hospice Richard House London’s First Children’s Hospice St Christopher’s Hospice Demelza Cosmic Children of St Mary’s Intensive Care Lennox Children’s Cancer Fund NHF – The National Holiday Fund NSPCC LWS On Course Foundation Sparks Naomi House Children’s Hospice Helen & Douglas House Hospice The total sum distributed to these charities amounted to £25,500 which is the main reason why I get so excited on the night, and for all the right reasons bring tears to the guests’ eyes whilst dishing out fines and telling stories.
The Individual Prize Winners 1st 2nd 3rd
Steve Wheal – Rose Insurance Brokers James Blake – Van Compare Alastair Christopherson – County Insurance (All had 38 points – won on countback)
The Team Prize Winners 1st 2nd 3rd
Adrian Flux team Bedford Insurance team Novo Management and Dave Boom team
hose of you who have followed so avidly my cricket reports over the years – both of you – will be aware that one of my teams, the Celebs, is no more after 17 glorious years. However, I am still chairman of the Bedouins, and we do still have the occasional fixture against insurance-based opponents. One such is Open GI, and our annual meeting with them took place recently, on the Ombersley ground, near Worcester. These days, of course, Open GI have the added advantage of being able to call on recruits from the PowerPlace stable, and that gives them access to one or two ‘proper’ cricketers. They were much in evidence in the latest encounter – Damian Baxter and Waseem Ul-Hassan both reaching the 30 retirement score during the Open GI innings. Pankaj Mishra had 3 for 11 for the Bedouins, but the home side's score still reached a substantial 122 for 6 after 20 overs. As the light faded quickly, the Bedouins batsmen had trouble coping with the pace and hostility of Ul-Hassan (1 for 9 in 4 overs) and Gary Knight (3 for 9 in 4 overs). In spite of Jonathan Hill's hard-hit 30, including his almost compulsory six out of the ground, the Bedouins finished 21 short at 101 for 6.
It was Open GI ‘mascot’ and sometime Bedouin himself, Des Johnston, who received the trophy from the Bedouins chairman. He seemed quite pleased to receive it! A few days later it was the Bedouins’ annual meeting with SSP, this time in Halifax. Jim Robinson and John Dobson made all the arrangements, and David Rasche was his usual hospitable self. But the one thing they hadn't thought to arrange was the weather. Fine on Saturday; fine on Monday; but on Sunday, match day, we caught the tail-end of Hurricane Bertha, resulting in not a ball being bowled. At least SSP had the pleasure of retaining the Rasche Shield for another year. ●
Damp Day Memories: Rain lashing down brought back memories of similar days – an unfortunate fact of life for the cricket nut. My own ‘number one’ rainy recollection comes from a Cornhill Edgbaston test against Pakistan. I took my seat for the start of play and watched the first ball delivered by Pakistan opening bowler Sarfraz Nawaz. As he was running up for the second, someone walked in front of me, temporarily blocking my view. Then the heavens opened and there was no more play. Just two balls bowled and I missed 50% of them! SEPTEMBER insurancepeople 5
market talk
Loyalty schemes
In the eye of the consumer W
hen wearing my onetime NEM claims/underwriting hat, any decision-making affecting an existing policyholder of the ‘to pay, or not to pay’ or ‘to load, or not to load’ kind was favoured according to the loyalty of the customer concerned. How long has he/she been with us? So speaking as a consumer of today, the relentless devaluation of that factor is highly irritating. The idea that new customers are more important than the ones you already have is deeply flawed, but that gets overlooked in today’s thirst for short-term growth at all costs. A new study suggests that insurance firms substantially fail to capitalise on loyalty schemes to retain
The Grass Roots Group research June 2014 ●
The vast majority of UK consumer respondents were unaware of whether their home insurance (90%) or motor insurance (89%) providers offer customer loyalty programmes
●
Over half (55%) rated loyalty schemes as important to them in their decision to stay with a provider
●
Supermarkets were rated by 52% as providers who make the most effort to retain them as a customer
●
Across insurance providers, home insurance companies were considered to make the least effort to keep existing customers happy
Ian Horsham
customers. The Grass Roots Group canvassed over 2,500 UK consumers to find out which industries score when it comes to rewarding customer loyalty and subsequently retaining existing customers. So let’s be clear. These survey results are based on customers’ perceptions. They don’t go further than that. The results see
Eavesdroppings
S
ir Laurence Olivier once arrived on the film set to greet haggard looking co-star, Dustin Hoffman. “Dustin! What’s happened to you? You look terrible!” “I’ve been starving myself for the past two days. I’ve had no sleep and I haven’t washed or shaved.” “What on earth for?” “Well, I had no alternative. It’s my big torture scene today. How else could I get into the part?” “How about..... acting?” ●
Overheard last week: Lloyd's underwriter belly-aching loudly from a table in Leadenhall Market about the variable performance of his account. “How about..... underwriting?” was the silent riposte. 6 insurancepeople SEPTEMBER 2014
Suppliers included in the survey were phone and broadband; utilities; insurance; banks; supermarkets; and car manufacturers
consumers perceiving that supermarkets lead the way when it comes to rewarding customer loyalty. There’s major ignorance when it comes to insurance. That’s not very surprising given insurance’s generally dismal record when it comes to keeping customers informed about the benefits of their purchase. Ian Horsham, divisional director of promotions and incentives at The Grass Roots Group notes that some players – not just those in insurance still focus very much on attracting new business. “They scream about special offers and rates for new customers, while loyalty schemes for existing ones are either non-existent or hidden away.”
But what about a no claim discount on a motor or household insurance? Surely that’s a reward for loyalty? On an individual basis, retail points schemes are surely small beer when compared to say, a substantial NCD on a motor policy? Yet consumers don’t necessarily see it that way. Why? Because insurance providers never shout about it. Ian Horsham: “Our research has shown the power of loyalty schemes in retaining customers, but it’s clear that not all industries are using them to their advantage by communicating their benefits effectively.” That last part would certainly appear to be spoton when it comes to insurance.
in association with:
Keep that CV simple! CII go underground in Brighton
Get those CVs right! G
iven all the M&A, company failures, consolidation, and staff culling over recent times you would expect insurance people to be well versed in the skills of CV writing as they are forced to find new employment. Or, of course, having to re-apply for their existing job. (The record number for an individual finding himself re-applying for his own job that I’ve come across is four!). Particularly relevant in the case of a company “that ceases to be”, there’s the quip that says that the actuary and the HR director are always the last survivors left to switch the lights off. In fact they often do very nicely after the ship goes down sorting out loose ends, and it was the former incumbent – the actuary who came to mind during a
Dr Geraldine Kaye
recent chat with Dr Geraldine Kaye, managing director of actuarial recruitment consultancy GAAPS Actuarial. It seems many candidates in the actuarial profession have not had to apply for a new post for several years, so much so that they have lost the art of looking for a new job, including writing a suitable
CV and proffering good interview techniques. “And this applies right up to experienced senior level candidates going for top jobs,” says Dr Kaye. “We find that candidates are often afraid to ask questions at interview. But this is particularly important with any job application, from graduate to the most senior posts. Amazingly we see many senior individuals shy away from this because they think they should already know the answer and may look silly. “Asking questions is a superb way of not only building up greater knowledge, but showing both engagement and interest. It’s also important to remember that different employers look for different things and certainly one size doesn’t fit all.” Giving advice on CVs,
Down the drain in Brighton A
s a fully paid-up member of the Insurance Institute of Brighton, I’m well aware of
the expeditionary nature of some of their social jaunts. Power stations, sewage farms, and more recently… the sewers. The thing about CII institute membership is that you affiliate with the institute nearest your work. I last worked in Brighton in 1999, and while I drove there every day when I wasn’t on the road around the UK, it’s now a considerable journey by train if you want to socialise and not stay over. That’s my
excuse anyway for not going down the drain with fellow members. But I can enjoy the mission vicariously thanks to Mandi Woolven, Brighton CII Council member who works in Haywards Heath. I asked her the frequently asked question - why would you possibly want to visit Brighton sewers?
Dr Kaye says, “This is probably one of the most important advertising documents as it secures the interview, if not the job itself, and I would give four basic tips to writing a good one:-”
1. Keep it simple. List dates in a left margin so they are easy to see 2. Use chronological order to make it easy for the reader to take in when scan reading 3. Ensure the CV is topical and in tone with the current skill sets required 4. Never lie on a CV! Apart from ethical issues, it may well come back to haunt later in your career
“Ignoring the understandable concerns from some people about dark passageways and scurrying rodents, perhaps the best way to answer this seems to be with another question why is there a six-month waiting list for the Brighton Sewer Tours?” asks Mandi.
A place is reserved in next month’s IP for more about meandering in the dark under the streets of Brighton
SEPTEMBER insurancepeople 7
market talk
Sterling reach for the North
Sterling serving brokers in the Midlands and North T
here’s nothing new in the idea of insurers based in the South transacting a healthy majority of their business north of Watford. In earlier times that contact was carried out by roving business development individuals. I was once one of those rovers myself, and the costs of travelling on business were offset by the economy of eliminating a branch structure. That concept worked fine for high volume personal lines, say motor, but doesn’t work so well for the more selective risks, and commercial business. Sterling Insurance Group is one insurer currently focusing attention on northern regional expansion. That’s been part of a long-term strategy to strengthen its presence in the regions in response to broker demand. A new office in Birmingham has been opened and the Manchester operations were relocated from Salford Quays to the City centre last year. Manchester-based Simon Hodgin, divisional manager of the northern regions for Sterling Insurance Group, is in a good position to talk about the north-south business connection. A former president of Manchester CII Institute and a true-blue Manchester City supporter, he was previously an AXA
8 insurancepeople SEPTEMBER 2014
Simon Hodgin
branch manager in Manchester, and before that was at L&G and GRE. In fact, Simon has worked in the North West for the last 18 years or so. “The first step in the Sterling long-term strategy for regional expansion was to establish the potential interest for brokers in the Sterling proposition,” explains Simon. “Through open dialogue, our independent broker survey, and the feedback gleaned by our team of development managers on the road we found that there’s a genuine interest in what we are trying to do, working with regional independent brokers. That, after all, is the mainstay of our distribution strategy. “We also discovered a gap in the market for our selective products – the two household (HNW and midnet worth) contracts, and the SME propositions in our Executive range. “It’s a selective SME account, and we offer some
quite specialist wordings, for example in plastics, metal working, and printing. We tend to focus primarily on privately-owned propertybased manufacturers and wholesalers and are looking to build a series of products that develop an expertise and specialism with certain groups of trades in the UK market. We don’t propose to compete with the same number of product levels as the big composites. That’s not what Sterling is about. “The next step was to establish a presence, to find out what we needed to do to be part of brokers’ plans going forward. Gerard Hamilton joined us from Aviva as regional development manager for Scotland. “The result of getting our underwriters and sales teams a lot closer to regional brokers has paid off. We are
able to respond quickly, price competitively, with good back-up service in terms of policy issue, and good solid policy wordings that match client needs. And if there’s a claim, to deal with it quickly and fairly. “It’s a really simple proposition built around good people, so there’s nothing necessarily new to the market. But we have found a strong broker appetite, particularly in Scotland. There’s definitely a space for it. “Our next steps are to build on what we’ve achieved this year. To generate more awareness of what our brand stands for, and ensure that we do all we can with our brokers to use our exclusivity and bespoke range of products alongside our customer-focused approach to help them grow their businesses.”
Insurers – Specialist v. Composite A teaser for Simon Hodgin from the Editor AN: Both you and Gerard come from the big company market (AXA and Aviva respectively). What differences do you find working at a smaller, privately-owned business? SH: It’s more entrepreneurial. More fleet of foot, with a flatter management structure. We don’t try to be all things to all people. We have quite a selective distribution strategy, and only give one commercial quote to market. We’re very agile, so the service has got to be quick, and it’s got to be good.
Are annuities finished?
in association with:
Grammatical note RSA first post-Hester results
Annuity news T
he unexpected proposal to sever the annuity ball and chain, and to treat us all as grown-ups was welcomed by consumers, but has naturally been less friendly to the life sector. Does the annuity have any future? I posed that question to David Sinclair, director at International Longevity Centre – UK (ILC-UK). He referred me to a report carried out by Jonquil Lowe of the True Potential Centre for the Public Understanding of Finance at The Open University Business School. The report published in July by ILC-UK declares that many lifetime annuities offer fair value for money, and also argues that the protection against longevity risk may be poorly understood by consumers. The lower annuity returns over the past 25 years have encouraged a commonly held view that annuities are a bad investment, but this
David Sinclair
overlooks the insurance value of annuities, particularly in the face of increasing longevity. The research finds that while some annuity consumers are obtaining fair value for money, others (such as men with higherthan-average life expectancy aged 55 or 60) can end up on the worst rates. Lowe argues that longevity risk should be considered as well as rate of return and investment risk. David Sinclair: “The research dispels the argument that consumers should automatically shun annuities on the basis of value for money. But given the gap between the best and worst annuities in terms of value for money, it’s vital that we continue to encourage and support retirees to shop around in order to get the best value annuities.” The press release relating to David’s comments states that annuities may not be the right option for everyone. “Other strategies and products may be more suitable for those with higher risk tolerance, greater resources and/or a desire to leave bequests. Those with low resources who can expect a high proportion of their income to come from their state pension, and those with debts, may still prefer to forego (sic) a pension income for a lump sum.”
(Sic ) Note F
ar be from me to make any critical comment on a (sic) note on a press release – there but for the grace of God etc… But the forego/forgo one spotted in the release quoted at the end of the previous item coincidentally arrived the same day as an “Eek!” missive from a member of the unofficial band of punctuation police among our readership. It was a cutting from the Independent where a journalist (who should surely know better) mixed up his forego/forgo so as to reverse completely the meaning in what was a serious piece of news. Neither must we overlook the surveys of IP contributor Alan Cleary whose “Words most frequently mis-used by insurance executives” in IP’s pages over the years has included “forego for forgo” (which is exactly the case in the Independent cutting). I admit this example gave me a twinge of uneasiness, and I just had to check my own record on the PC – easy enough to do in the digital age. Arrgh! I found one error from 2013. Chastened, I checked the final print copy in the archive. Had IP’s own in-house punctuation police - the Susman Patrol - spotted it and corrected? Yes! Hawk-eye Brian Susman had worked his magic. Phew! Thanks Brian. And just for the record:Forgo: to refrain from, to give up, renounce Forego: to go before, to precede
Black day for RSA W
ithin the WWI centenary memorials, the 8th August 1918 was a significant day for the Allies, being dubbed “The black day for the German army” - by the Germans. RSA Insurance had its own ‘black day’ also on 8th August this year in the national financial pages. Donning my grumpy old man hat, I always bristle when anyone attempts to foist a short-term, black or white answer on an issue that warrants considered decision-making through all the shades of grey. The tabloid share price pages are the worst culprits, although that’s admittedly because that’s their job i.e. to ignore all the efforts made by well-meaning people at every level in an organisation, and never look beyond the short-term. The result? Just four letters – “Sell!” SEPTEMBER insurancepeople 9
interview
Andy Homer
The customer must come first - who can argue with that ? So what’s Andy Homer been doing since stepping down as Towergate CEO around three years ago? In fact, that was the Editor’s very first question
ACH: Well, I’m still a non-executive director at Towergate; Open GI; and PowerPlace. But my new interests include joining Merryck & Co as a mentor, and I have clients in FTSE 100-level executive teams in the UK and Europe. And recently I was in Brazil helping a PE firm with some due diligence. AN: And of course you were chair of BIBA. How did that go? ACH: My spell at BIBA was very focused on helping to define a contemporary strategy relevant to the needs of the broad church of members; finding a new CEO; and 10 insurancepeople SEPTEMBER 2014
then finding a new chairman. I achieved my goals and I believe the new board, the new CEO, and the new chair will be a great success. AN: How do you see the insurance market place today ? ACH: Plus ca change! - the more it changes, the more it stays the same. Newish leadership in almost all of the insurers means that consistency of strategy and message is hard to deliver. I really cannot say what the Aviva and the RSA strategies are for example, whereas there is more certainty
about AXA and Allianz (both led by former colleagues from Commercial Union, so perhaps I would say that). Gallagher's are the new force in the broker market and they have made a lot of very expensive hires. They will be a big influence in the market just as Towergate has been. However I do not envy the task they have ahead to merge cultures, and IT and processes. This is difficult to do well. AN: What about Towergate? ACH: Mark Hodges has been hard at work transforming Towergate
Those that fail to upgrade their systems and processes are heading for oblivion
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from an entrepreneurial free spirit culture into a more robust and ‘industrial strength’ enterprise. He’s doing a great job, but it is by no means all glamour. It’s a tough market, and there’s big change to manage. But I predict that Towergate will emerge from its change programme ahead of its competitors, and it will continue to be the dominant force in the SME market. AN: Are you involved with Peter Cullum’s new enterprises? ACH: No, other than PowerPlace, I’m not involved with Peter’s investments. We are very close still, but I did not want ‘more insurance’ – it’s more a case of more golf and more sun! AN: Have you anything else planned? ACH: Yes, with an introduction from Peter Cullum I’ve become involved with a company that plans to consolidate broking, but this time not in the insurance sector. It’s the energy and utility broking sector. I took over the chair of Utility Aid in May, so watch this space. AN: How do you see the insurance market developing, particularly in the light of the current regulatory powers? ACH: I think the scrutiny of the FCA on conduct and customer matters will influence the large intermediaries. It will be expensive and difficult to transform decades of loosely defined broking practice into any sort of best practice. Those that make the changes and upgrade their systems and processes will win the fight for customer retention and growth. Those that do not, are heading for
West Bro mw Albion ich
oblivion. I think the choice is that stark for the big brokers, and sooner or later all brokers, regardless of size are going to have to prove and evidence that they really have put the customer first. Who can argue with this? AN: And lastly, since we are currently talking as the FIFA World Cup nears its climax in Brazil, I see your own team – West Bromwich Albion – are due to set off to the USA shortly for their preseason training camp in Sacramento. What’s it like being a Baggies follower these days?
1954 mwich West Broion Alb
ACH: They continue to make my Saturday’s at 4.50pm a nightmare, but from the moment as a six year-old when I was taken to The Hawthorns I was smitten. Only real football fans understand the curse that loving a team can be, but none of us would change that. AN: I agree – and being a Spurs follower from a similar age I can certainly vouch for that!
2014
Needless to say, the post-interview conversation with Andy Homer continued the football theme, and the Editor confessed to having a soft spot for West Brom right back to the time of their epic Wembley 3-2 win over Preston North End in 1954. It was the first FA Cup Final I had ever seen, and of course it was all in Preston colours - black and white on the telly. “Did you know the Baggies team took oxygen at half time in that game,” quizzed Andy. I didn’t know that, but it’s true. I also recall some of the Wembley ‘confessions’ of the renowned players of that era who would retreat to the toilet at half time for a smoke! Just as well they didn’t mix the oxygen with the cigarette! The Editor SEPTEMBER insurancepeople 11
Adrian Furness
Claims – insurance’s shop window!
CLAIMS DIRECTOR COVÉA INSURANCE
Time for strong leadership and vision It’s widely recognised that customer-friendly claims handling is the insurance industry’s shop window. What happens there fashions consumer perception for better, or for worse.
While the latest CMA proposals will undoubtedly help, there are already strong signs that business structures are being set up to find ways around the rules which will dilute the benefits. Claims farming is still on the increase, adding costs to the detriment of customers.
Covéa’s Adrian Furness believes the time is right for the whole industry to collectively get its act together and start looking at the bigger picture
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T
If we could get independent medical assessments used as the agreed established method to assess personal injury claims, this would go a long way towards holding back the tide of personal injury claims, a large proportion of which are fraudulent whether by opportunism or organised crime.
he insurance industry has always had a need for strong leadership and vision. But today, the fulfilment of that desire has become crucial. It’s now a matter of the difference between survival or stagnation.
There’s never been more urgency for insurance providers to shake off their self-centred legacies and for all providers to contribute to a new vision.
he LASPO reforms were a great idea and have helped reduce claims costs, but there are still loopholes that need closing to gain full benefit. For example, what’s the real difference between not paying referral fees, but paying an up-front marketing fee? You may well ask.
While parts of the industry have been culling experienced staff and dumbing down customer service, others have proved adept at up-skilling themselves with good people.
As for insurers, if making money by adding £500 to the cost of a £1,000 car repair bill is something you wouldn’t want tell your customers about, should you be doing it? Nobody is looking at the bigger picture and weighing up the damage this is doing to the reputation of the industry.
But the next stage must be to get all parties who deliver customer service onto the same page. Because that’s where the future of insurance lies.
B
“
Time for all to shake off
self-centred legacies and contribute to a new vision!
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W
hen the Competition and Markets Authority (CMA) published its new rulings last year, both CMA and the industry missed the opportunity to change consumers’ bad light perception of the industry. Did the proposals go far enough? Or have they been diluted by organisations driven by self interest and short-term gain, rather than being in the best interest of the consumer and the reputation of the industry? More recently proposals have been made to put a cap on charges passed to the insurers of at-fault drivers. But does this really go far enough in terms of taking costs out of the system?
12 insurancepeople SEPTEMBER 2014
ut it’s not all bad. There are some genuinely great initiatives coming from parts of the industry that will really help change customer perceptions, engaging with them in a different way and creating transparency around the reasons why some claims should not be paid for the benefit of honest insurance buyers. There’s good work being done by some insurers publishing data on customer service. This demonstrates a good example of how the industry can create trust through being open and honest. It’s about getting back to the basics of positive behaviour. Fraud is another area where the industry has made massive strides, in some cases funding entire police departments in helping to catch fraudsters and bringing successful prosecutions. The way ahead is clear. All the industry has to do is to wield strong leadership and vision. And the first essential of that must be to get all parties who play a part in delivering customer service onto the same playing field. This is the future of insurance. There’s more from Adrian Furness on page 3.
What’s the broker role in an increasingly automated world?
e-trading
Nick Giddings explains how automated commercial lines can add value in an ever-changing market place
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n today’s market, consumers are becoming hungrier for extensive choice, competitive pricing, and quick access to product information. And in the personal lines market we’ve seen rapid growth in how brokers have delivered to this need. Within commercial lines, the insurance requirements vary from business to business. However there are times when consumer demand is very much the same as in personal lines, making it necessary for e-trading and commercial lines broking to work hand-in-hand. Insurance brokers are still key. Aside from the consumers’ drive for choice, and a time-efficient purchasing process, some will require independent, expert advice. That’s particularly so for the medium and large-sized businesses which currently aren’t typically available via an automated route.
As brokers, we can ensure we continue to compete by recognising the need to offer the best solution for each segment of our consumer base. There’s no one-size fits all in terms of automated commercial lines. For example, an aggregated approach for the micro-SME is certainly a recommendable route to suit their needs. Progressively, micro-SMEs want to secure their cover quickly and easily, and e-trading is the ideal path for this. However, this online approach should be tailored to allow the professional insurance advisor to intervene, for example by phoning the customer should they need guidance on risk information. This is what brokers are great at! For the larger SME who may have both simple and complex needs, insurance brokers may look
Nick Giddings CEO POWERPLACE
to integrate a quote-and-buy solution as part of their distribution strategy, whilst still maintaining a personal account management approach. Brokers that embrace e-trading, and supplement this strategy with quality service and advice, demonstrate their adaptability in a competitive marketplace. It allows the broker to still work closely with the end SME consumer, maintain their market share, and continue to add value in an ever-changing market.
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SEPTEMBER insurancepeople 13
risk management
Andy Hawkes CEO CARDINUS RISK MANAGEMENT
Psychosocial risks – a claims time bomb? Psychosocial studies focus on the advancement of public health and well-being, particularly in relation to mental health. Andy Hawkes outlines the insurance-related implications in the workplace
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o business managers fully understand the scope of what ‘safe and healthy’ work really means? Most have some appreciation of H&S on the job, and recognise that they have a moral and legal duty to keep employees safe and healthy while they are at work. But does that knowledge go far enough? Brokers and insurers make significant efforts to make sure clients’ employees are not put at risk of injury or workrelated illness. Indeed, it’s now recognised that a workplace can be physically safe, and yet still be an unhealthy place in which to work. Increasingly, the issues of stress and mental health are becoming a cause for concern to the insurance sector as claims emerge. Some have argued that psychosocial hazards could be the next time bomb to hit the market. These so called psychosocial hazards include:● constant work overload ● lack of control over how work is done ● harassment, bullying, or discrimination on the job ● lack of supervisor support ● lack of respect for workers ● lack of appropriate rewards and appreciation for the effort expended ● lack of support for work-family balance ● poor communication ● ambiguity about job responsibilities Most people know intuitively that these things are unpleasant. But they are also hazardous to the health and safety of employees. Research shows that some of these conditions can increase employees’ risk of:● back pain by up to 3 times ● heart disease by up to 3 times ● injuries like musculoskeletal disorders by 2-3 times ● substance abuse by 2 times or more ● infections by 2-3 times ● certain cancers by 5 times ● conflicts and violence in the workplace by 2-3 times ● mental illnesses like depression and anxiety by 2-3 times 14 insurancepeople SEPTEMBER 2014
Clearly, any company with an increased risk of these conditions will be ultimately paying for it in increased employers liability insurance costs, absenteeism, short and long-term disability, and decreased productivity. In addition, there’s an increasing amount of litigation occurring in North American courts, and growing settlements in favour of employees related to the employer’s responsibility to provide a ‘civil and respectful’ workplace, or an “emotionally safe” workplace. No doubt we will follow this trend.
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he good news is that employers can do something about these issues! Some strategies that have helped companies control psychosocial risks are:● encouraging workers to participate in decision-making ● demonstrating fairness in management style and application of policies ● training and evaluating supervisors on communication and “people skills” including the understanding of why people get stressed ● providing flexible work arrangements ● providing work-life balance policies and practices and a supportive culture ● showing appreciation for employees’ efforts ● ensuring the workplace environment is respectful to all workers ● measuring employee satisfaction regularly and acting on findings ● providing employees with the information and resources they need to do their jobs well ● addressing work overload issues
None of these strategies is simple. Nor can they be accomplished by just spending money or issuing edicts. Insurers and brokers will increasingly need to understand how their clients manage these risks, and encourage use of tools, such as the HSE’s Stress Indicator Tool, to reduce the potential for these issues to manifest themselves into claims. Because, sooner or later, this ticking bomb is going to go off!
How can we set tails wagging over pet insurance?
pets
John Gibson wants to stop tongues wagging, and set tails wagging instead when it comes to pet insurance
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ccording to the ABI, the average pet insurance claim for a dog has increased by 25%. Cats’ have increased 18% over the last seven years. Now we’re hearing 30% of owners without insurance feel it’s not good value for money, and cite this as their main reason for not taking out cover, according to YouGov. So why have costs risen so much? Advancements in veterinary medicine mean that, thankfully, treatment has improved significantly. But an MRI scan costs around £1,100, and cruciate repair around £1,400, so it’s easy to see why premiums have risen. As well as higher vet costs raising premiums, pets get older when illness or disease is more likely. A typical dog is more prone to become ill after the age of four, and this risk increases each year.
So what can owners do to reduce their costs? A lesser-known way is to source a vet that offers better value for money. Even within the same geographic area, vet fees for the same treatment can differ considerably from one practice to another. And what about those not taking out cover? We all know accidents can happen, even to pampered pooches and contented cats like George Osborne’s feline, Freya, who recently needed emergency treatment after being ‘clipped’ by a car near Downing Street. The bottom line is, even ‘VIP pets’ won’t stay out of trouble and we can’t predict the future, making pet, like all types of insurance, the right solution should the worst happen. We’re known as a nation of
John Gibson HEAD OF PET MARKERSTUDY GROUP
animal-lovers, and pet insurance is an emotional purchase, so I’m confident there will always be demand. However, we have a responsibility to help keep premiums and costs as low as we can, to appeal to existing policyholders and change public perception among those who aren’t covered, to ensure we set tails, rather than tongues, wagging.
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SEPTEMBER insurancepeople 15
customer service
Chris Thornton MANAGING DIRECTOR AUTO WINDSCREENS
Keeping in step with customers
Are insurance suppliers doing enough for customer service? Insurance buyers increasingly demand an outstanding customer experience. As Chris Thornton explains, that in turn demands the real-time monitoring of every step of individual service delivery and customer contact
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uppliers to the insurance industry – in our case that’s motor - need to buy into an in-depth programme of consistent monitoring, as well as recognise this investment will yield significant results. Customer opinion not only reflects well on the service being delivered, but can be used to constantly drive businesses to new heights, identifying where improvements can be made to provide a better outcome for insurers and their policyholders. While many businesses already have some activity in place, others are following the trend in looking to bolster their customer care strategies. In my opinion, the following three elements are crucial to create that allimportant feedback and opinion system.
1. Instant action from instant feedback Modern technology allows customer dissatisfaction to be immediately highlighted. Policyholders can be contacted to resolve issues quickly and efficiently, within minutes rather than hours or even days. In our case, personal digital assistants (PDAs) enable a customer survey to be actioned the moment a vehicle glass repair is completed. The technician hands the PDA to the customer and the survey is carried out there and then, to be passed to the relevant customer care team. Such vital information produced through real-time reporting allows 16 insurancepeople SEPTEMBER 2014
quality levels to be managed and creates an environment of improvement, pushing the bar of customer service consistently higher.
2. Making the most of feedback channels Internally conducted surveys form an important part of the wider picture, but they do not necessarily capture a customer’s true viewpoint. External research can solve this via a fully independent look at what policyholders have to say, and establish the integrity of data from both collection processes. Then throw into this mix the plethora of open social media and online opportunities, inviting customers to tell others about their experience of a particular company, and you begin to develop a wider picture of overall customer opinion. Some companies still seem reticent to embrace Facebook, Twitter, and review websites. That’s usually because of the possibility of negative responses escalating. Investing time in people and technology to manage such platforms will pay off, and can be a great way to promote a brand. According to the social division of Oracle, a global leader in software, execution of good social interaction can help boost customer satisfaction by as much of 20% and, of those customers who are successfully engaged, 71% are likely to recommend the brand in question.
3. Transparency of data The ability to drill down and gain actionable insights from the data collected is what insurers - if they aren’t already - should be demanding of their suppliers. After all, insurers rely on suppliers to represent their brands and deliver on brand values. Insurers should no longer be satisfied solely with Service Level Agreements (SLAs). Many are increasingly demanding frequent proof that their policyholders are being looked after consistently. The Net Promoter Score (NPS) system is the global approach to measuring a customer’s view of quality and a vital benchmark. NPS is fast becoming a defacto requirement for insurers, providing quantifiable proof that providers are delivering on their promises of excellence. It gauges the loyalty of a firm’s customer, offering an alternative to traditional customer satisfaction research. The ideal is for customers to be classed a ‘promoter’ of a service, giving a 9-10 rating of their overall experience.
Conclusion There are many benefits to adopting this customer-centric approach to management, and introducing a comprehensive mix of tools to aid this. Yet many companies still do not have sufficient indicators in place to monitor every step of their service delivery and customer experience. With increasing numbers of insurers interrogating these areas of business operations, this will no doubt have to change or service suppliers could see contracts awarded to competitors.
Who says insurance is boring? The late Malcolm Forbes-Wilson penned his remarkable insurance biography just before he passed away after a long illness in April 2014. In this second instalment, he joins Lyon de Falbe International and learns another valuable lesson – never enjoy a liquid lunch on your 10th wedding anniversary!
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aving moved on to Lyon de Falbe International, and working at their offices in Borough High Street, near London Bridge, I was introduced to an American client base. My boss was extremely fond of travelling, but more than content for me to place the enquiries he obtained into the Lloyd’s and company markets. We were a successful team. He preferred to produce one opportunity at a time, so I had plenty of scope to learn about ‘umbrella’ policies, which of course have nothing to do with protection from rain, but are a liability policy that comes into effect after primary cover has been paid, or for losses not covered by the primary cover. There was also medical malpractice insurance, and a particular favourite of mine -
insurance of bullion carried by armoured car carriers. It was during my time at Lyon de Falbe that I was persuaded by a couple of colleagues to celebrate my
Part Two
Malcolm Forbes-Wilson tenth wedding anniversary at lunchtime, before returning home to my wonderful wife for an evening celebration. Regrettably after quaffing three bottles of champagne between us, followed by three large ports each, I quenched my unslaked thirst with a pint of beer. The consequence was a long and arduous walk back to Borough High Street - which was not without incident - and an evening of silence at home! My lesson was learned and drinking to excess became a thing of the past.
The young Malcolm Forbes-Wilson wearing his first work suit when starting his career with CT Bowring in 1966
Malcolm Forbes-Wilson (1946-2014) written in January 2014
To be continued
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SEPTEMBER insurancepeople 17
insurancepeople
News
£3.3 billion premiums for MGAA members M
GA membership of the Managing General Agents’ Association now represent over £3.3bn of GWP, it was announced at a reception for the MGAA at the House of Commons hosted by Jonathan Evans MP, chair of The All Party Parliamentary Group on Insurance and Financial Services. Full membership has grown from 40 MGAs writing £1.2bn of GWP at its launch in 2011, to today where 93 members now represent approximately 66% of the total GWP for the MGA market in the UK1and the number of members has increased by over 30% in the last 12 months. Speaking at the MGAA’s House of Commons reception, Reg Brown, chair of the MGAA said: “There is no doubt that the MGA sector is experiencing continued growth, and with it heightened scrutiny. The MGAA’s work to increase the regulator’s recognition and understanding of the role of MGAs, combined with a drive for clear standards and codes of ethics, are important factors in ensuring the Association continues to represent the interests of MGAs with a single unified voice. This milestone in membership ensures we can continue to ensure the sector’s needs are met.” At the event, the association also recognised the contribution of the original steering group founded to create and shape the MGAA by awarding each of its members with
honorary membership. The group includes Reg Brown; Charles Earle, Arista Insurance; Brian Russell, APC Underwriting; Francis de Zulueta, Alpine Risk Partners; Sian Fisher, OIM Underwriting; David Coupe, EC3\Legal; Ian Barrett, Concise PR; and Keith Stern, Lloyd’s. Pictured: IP director and in-house artist Carol Newman (left) donated the cover artwork of the July/August issue of Insurance People to the MGAA which was later presented to MGAA chairman Reg Brown at the House of Commons reception. Alongside are the Editor and Jonathan Evans MP.
Justice Committee over-cautious on mesothelioma
T
he announcement by the Justice Select Committee that it recommends government to carry out a further review and then to launch an additional consultation before implementation of the LASPO reforms into mesothelioma claims is over-cautious and the findings of the committee's report are insufficiently based on the evidence given to it, says a leading occupational health lawyer. DWF partner and head of occupational health and casualty Derek Adamson, who gave evidence at the Justice Select Committee inquiry in June this year,
18 insurancepeople SEPTEMBER 2014
argued that there is no proper distinction between mesothelioma and other serious injury or disease claims on the question of implementation of the new LASPO changes. DWF believes arguments raised by claimant interest groups that mesothelioma claims are somehow different are unfounded, as postLASPO, the same system now operates for all other types of serious injury claim, and should also do so for mesothelioma claims. Responding to the committee’s conclusions in its report, Derek Adamson said: “While the JSC’s
report will be properly considered by Government, its conclusions are too cautious and not fairly balanced for either insurers or the victims of this terrible disease. It seems to me that there is insufficient weight in the committee’s conclusions to dissuade the Government from carrying on with its existing plans to implement LASPO for new mesothelioma claims. If the committee’s recommendations are followed, then this reform may well be held back for another five years. “In fact the JSC’s
cautious approach should not be followed because no proper weight has been given to the evidence which justifies this reform, and instead the committee has relied on unsubstantiated conjecture from the claimant side of the argument. Success rates are very high in mesothelioma claims, and have risen further with the reforms which have taken place to assist mesothelioma claimants. Any detailed research carried out as suggested by the committee would be expected to confirm the high levels of success within these cases.”
More testing needed on driverless cars T hatcham Research says that fully driverless cars are an exciting glimpse of the future with substantial potential to improve road safety – but the UK’s car fleet has a long way to go before it makes the most of existing autonomous technology already tested, proven and readily available. “Today’s announcement that the Government will allow driverless cars on UK roads in just five months’ time sets an ambitious target,” says Peter Shaw, chief executive of Thatcham Research. “We fully support the automation of safety features such as
braking/steering where the vehicle intervenes to avoid a crash - but we must recognise that fully driverless cars require a great deal more comprehensive testing and development before they can be made commercially available in the UK – or anywhere in the world.” He goes on to say: “We therefore support the controlled testing that the government is encouraging and are monitoring the results with great interest. In the meantime we are calling on the UK Government to materially support proposed financial incentives designed
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to encourage more car makers to fit existing autonomous emergency braking (AEB) technology as standard, and save more than 1,200 lives over the next ten years alone.”
Thatcham has been researching and testing AEB systems on behalf of insurers for the last three years and has carried out hundreds of tests on a wide range of new vehicles.
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SEPTEMBER insurancepeople 19
insurancepeople
News
Need for care in handling card details A
lmost all insurance brokers fail to protect their customers sufficiently from the risk of fraud when accepting credit card details over the phone, according to call management company Callstream. The Payment Card Industry Data Security Standard (PCI-DSS) requires handlers of debit and credit card cardholder information to take prescribed steps to reduce risks of fraud. Compliance is compulsory for any merchants in the UK who accept, process, store and transmit cardholder data, which includes insurance brokers taking payments by credit card over the phone. Callstream conducted a ‘mystery shopper’ analysis of over 200 insurance brokers’ inbound call management. Alongside their PCI-DSS
compliance, this included how long it took for calls to be answered during peak and off-peak times, the number of automated options provided to callers, and the ability to solve problems on first contact. The analysis revealed that only 1% of UK insurance brokers who take payment over the phone are minimising the risk of a security breach by ensuring that credit card details are hidden from staff and have no contact with IT
AXA earnings up 33% I
n its report on the first half of 2014, AXA Group says underlying earnings were up 33% at £118 million, with general insurance revenues increased by 2% at £2.0 billion. Highlights reported by the group included: “Disciplined underwriting contributed to an improved general insurance combined ratio of 98.2 per cent (98.7 per cent in the first half of 2013) despite around two points of weather claim costs, an approximate total cost of £46 million “Following the business improvement plan launched in 2012, the UK direct personal lines business has returned to both growth (8 per cent increase in revenues to £0.2 billion) and underwriting profitability (combined ratio of 99.3 per cent) in 2014 “Commercial lines, where the turn-around commenced 20 insurancepeople SEPTEMBER 2014
infrastructure. Most contact centres’ noncompliance was because customers were asked to read out card details to the call agent, or input details via the phone through a system that did not mute, hide or encrypt the touch tones. “One of the main reasons customers choose to contact brokers’ call centres rather than purchase online is because they simply don’t understand or trust online systems,” said Mick Crosthwaite,
CEO, Callstream. “But because brokers are asking customers to read out their credit card details – which could be written down by staff or captured in call recordings - ironically, these customers may actually be at a higher risk of fraud in the call centre than online. “PCI regulations are there for a reason. So while some brokers may think they are protecting data sufficiently because their IT systems are secure, they often fail to appreciate the risk of the card details being given to their staff and captured in call recordings. This means that they risk either suffering data breaches and therefore undermining their hardwon reputations, or are in danger of being fined by the PCI Security Standards Council, which could be crippling for many.”
in 2011, continues to deliver strong and profitable growth, growing revenues by 10 per cent to £0.6 billion, and delivering a 1.6 points improved combined ratio at 98.1 per cent..” Commenting, Paul Evans AXA UK & Ireland group chief executive, says, ““I am very pleased that performance across the business continues to improve. During the past four years, the transformation of the UK and Ireland business has, through a resolute focus on responding to the needs of customers in each of our target markets, delivered both sustained growth and improved profitability. I remain confident that, despite very competitive market conditions, our businesses are well positioned for profitable growth.”
ECIC warning for tradesmen going for Green Deal
W
ith the news that the Government’s Green Deal Home Improvement Fund has closed following over 21,600 applications worth £118 million, the Electrical Contractors’ Insurance Company is encouraging tradespeople to make sure they have adequate insurance cover and accreditation in place to take advantage of the upsurge in work as householders look for tradespeople to complete the work on their homes. Time is short, says ECIC, as homeowners have just six months to redeem their
vouchers and get the work done. Launched in June this year, the GDHIF offered households cash payments if they undertake energy efficiency improvements from a specific list, including gas condensing boilers, flat roof insulation, replacement warm air units, replacement storage heaters, flue gas heat recovery units and waste water heat recovery systems. Phil Scarrett, sales and marketing director for ECIC says, “Any tradesperson facing an increase in
business, whether it’s come from a scheme such as this or simply through local marketing and word of mouth, must ensure they are realistic about any expected growth in turnover. “For example, plumbers accredited under the Green Deal to fit gas condensing boilers could find the number of installations increase, growing their annual turnover considerably. If they have
under-estimated this when arranging their insurance, they could face a big hike in premium costs at renewal and a lump sum payment needed to cover the premium shortfall. Some may also face the issue of under-insurance which could leave them seriously out of pocket if a claim arises.”
Henderson acquires Corporate Risk Systems
IFB information leads to 1,000th arrest
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enderson Insurance Brokers has acquired Staffordshire-based Corporate Risk Systems, which provides health and safety training and consultancy services. CRS has been merged with Henderson Risk Management, creating a new enlarged business with headquarters in Leeds and trading under the CRS brand. Joe Henderson, Henderson Insurance Brokers’ chief executive, says, “CRS has great expertise in risk management and they are a good fit in terms of the size and location of the company. “Henderson Insurance Brokers is committed to risk management, whereas other people play at it to some degree. We now have a nice-sized business with the merger of the two companies. The purchase has given us access to many more advisers, increased the training and risk assessment products and services we can offer and underpins the activities of our risk managers and safety consultants.” The new, enlarged CRS business has about 40 staff, including 30 employees who have come from CRS, and will be run by CRS managing director Stephen Asbury.
recent arrest in Luton marks the 1,000th arrest as a result of information and support given to law enforcement by the Insurance Fraud Bureau. It came weeks after the Insurance Fraud Enforcement Department, funded by the industry, made its 500th arrest. John O'Roarke, chair of the industry’s Financial Crime Committee, says, “The IFB and IFED are our response to the menace that is insurance fraud. This criminality impacts on our economy, costs the insurance industry billions of pounds, hits honest policy holders in the pocket and, in some cases, puts innocent lives at risk. The
message to anyone committing insurance fraud is simple: you will be found out and you will be arrested.” Ben Fletcher, IFB director, adds, “Our focus is on using our unique range of data to identify organised frauds which are not visible to individual insurers. That’s what really makes the 1,000 arrests significant; we believe these people aren’t opportunists, but are actively involved in organised scams raking in millions of pounds. “The notion of insurance fraud as a ‘victimless crime’ is on the wane, in part thanks to IFED’s enforcement and disruption activity at the front line.” SEPTEMBER insurancepeople 21
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PowerPlace doubles broker enablement team S ince moving to Open International in 2013, the PowerPlace broker enablement team has more than doubled to seven-strong, enabling PowerPlace to “ … offer an even stronger and enhanced support service to its brokers”. Nick Giddings, PowerPlace CEO comments, “Because of recent innovations, such as eBroker for PowerPlace, our broker base has increased and as such our team has had to expand in order to be able to accommodate this growth. We have recently recruited an additional account manager for the south and promoted from within for the new position of team leader. “I am delighted to say that we’ve created the strongest account management team that we’ve ever had. The team is both knowledgeable and passionate about the product and is key to ensuring the business maintains its momentum and continues in this positive direction.”
Return to profit for RSA
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SA's interim results for 2014 show that the group returned to profit (£69 million pre-tax), with “ … underlying trends in line with our expectations”. Stephen Hester, RSA group chief executive, commented: "RSA's Action Plan is going well. Since announcing it five months ago, we have made strong progress improving strategic focus and capital health. Good work is also underway on cost, portfolio actions and the management line-up to drive future performance. “While first half profits are modest, they reflect further balance sheet and reserve clean-up as well as above normal weather costs. Underlying business trends, together with the actions outlined, are supportive of achieving the medium-term customer, capital and shareholder targets we set.
“RSA is again a strong international general insurer. We intend to build a track record of delivery, and increasingly of excellence." Among the results were: net written premiums of £3.9bn down 9% (down 3% underlying) reflecting “ ...our portfolio action plan and a more disciplined underwriting approach”; headline underwriting profit £2m after absorbing losses in Ireland and charges elsewhere for prior year reserve additions; current year underwriting profit of £87m excluding Ireland (H1 2013: £80m excluding Ireland); underlying current year loss ratio of 58.5% excluding Ireland, 1.2pts better than prior year (H1 2013: 59.7%); Ireland underwriting loss of £64m as clean-up continues – the goal is to return Ireland to profitability in 2015.
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The PowerPlace Broker Enablement Team Left to right: Jasmine Horton, Steve Lacey, Victoria Hallett, Deeon Pegg, Ryan Henderson, Johannah Lyon and Jemma Boyce
Three more Chase Templeton acquisitions
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hase Templeton, private medical insurance specialist, has acquired three businesses in two days, bringing in an additional £4.2 million in annual premiums. Pursuing a “buy and build” strategy, the company acquired Bedfordshire consultancy Howill Group Ltd. which traded as Medisearch Direct - Chelmsford’s Simply Assured Ltd and Heath Assured (Scotland) Ltd of Stenhousemuir. The acquisitions will boost both Chase Templeton’s Individuals business based in Bridgwater and its SMEfocused Corporate operation which is housed at its headquarters in Blackburn. “Once again we identified intermediaries who were looking to realise the true value of their assets and whose operations offered an excellent fit with our own business and ambitions,” comments mergers and acquisitions director Jeff Tate. “Simply Assured and Health Assured both manage strong SME books whilst Medisearch Direct bring an excellent individual client base to the party.” The new acquisitions bring to 23 the number completed in 2014 and which have taken Chase Templeton’s annual premium income to well over £100m, with its turnover now well in excess of £13m. To manage integration of acquired businesses the company has increased its staff numbers to nearly 70 and has plans to recruit further this year.
Allianz profit figure “back on track”
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alf-year figures from Allianz show GWP up from £996.3m to £1,093.4m. Pre-tax operating profit was £64.3m, agsinst £86.0m in the corresponding period of 2013. The combined ratio was 98.1% (95.7%). A statement from Jon Dye, chief executive officer, says, “ A strong performance in Q2 saw Allianz’s growth accelerate, with GWP of £1093.4m putting the company 9.7% ahead of 2013 at the half year. Our overall operating profit rebounded after a first quarter hit by very poor weather and is virtually back on plan at the end of Q2. The combined ratio for both
John Dye
our commercial and retail divisions improved from the position at the end of Q1 and we are on track to deliver our planned profit and growth figures for the year.” In commercial business, GWP was £559.6m (£534.5m) and the combined ratio 96.6% (97.4%). Retail division GWP was £534.5m (£461.9m), and the combined ratio was 100.3% (94.8%). Jon Dye concludes. “The adverse weather over the winter saw Allianz come to the aid of 18,000 of its customers, serving as a reminder of the critical role that insurance plays in protecting individuals and businesses. In Q2 we have pulled our profit performance back to plan with strong contributions from right across our portfolio. We have also succeeded in growing our GWP ahead of plan. These results serve to demonstrate that our five year profitable growth ambition is very achievable.”
IFB Cheatline expects record year
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he year 2013 saw a record number of reports to the Insurance Fraud Bureau’s Cheatline and the bureau says that 2014 looks set to beat that. With over 6000 reports of insurance fraud received from public, the Cheatline played a key role in combatting fraud in 2013. At the halfway point in 2014 those figures are slightly ahead of the same period in 2013. Stephen Dalton, the IFB’s head of intelligence, says, “Although the IFB focuses on organised motor fraud, we take reports on any type of insurance fraud via the Cheatline. In fact, around a quarter of what we receive relates to household insurance fraud.”
FCA fines Stonebridge International £8.4m
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he FCA has fined Stonebridge International Insurance Limited £8,373,600 in relation to sales of accident insurance products. Between April 2011 and December 2012, Stonebridge targeted low and middle income customers without college degrees or professional qualifications, with its personal accident, accidental death and accidental cash plan insurance products. Outsourcing companies sold policies over the telephone, with those responsible for sales encouraging people to buy more expensive products, whilst companies responsible for post-sale support actively discouraged customers from cancelling their policies. Tracey McDermott, FCA director of enforcement and financial crime said: “Customers are entitled to expect firms to provide them with fair and balanced information to enable them to make the right choices about the product that is right for them. Stonebridge failed to do this and, when customers tried to
cancel, put up barriers to prevent them from doing so. Firms must take responsibility for their outsourcing arrangements and ensure that they treat customers fairly". The FCA found that the telesales scripts that Stonebridge designed for its outsourcing companies did not provide clear, fair and balanced information. It also found that Stonebridge’s poor systems and controls, and inadequate oversight of its outsourcing companies breached the FCA’s requirements that firms treat customers fairly and have appropriate systems and controls in place. Stonebridge is carrying out an independent review of its past sales in the UK and EU. Up to 486,444 customers across the UK and EU could be affected.The company is contacting affected customers to determine whether they should be compensated as a result of its poor sales practices. Stonebridge has already paid redress worth a total of £400,000 to affected customers in the UK.
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Addleshaw Goddard highlight FCA trend L
awyers Addleshaw Goddard comment that the FCA enforcement action against Aegon subsidiary Stonebridge International Insurance is the latest significant fine against firms selling insurance products, following on from Swinton Group in 2013 and Card Protection Plan in 2012. The company adds: “The Stonebridge fine follows the significant fines for high street broker, Swinton (£7.38m), and card protection insurer, CPP (£10.5m), where redress was also significant.
“Swinton did not consider customers' interests sufficiently when pursing an aggressive sales strategy of monthly add-on insurance products to counter a decline in sales elsewhere in its business. Again, it failed to provide adequate information or a sufficient explanation in sales scripts to customers about products and this fact was not identified (and acted upon) due to weaknesses in corporate governance, exemplified by not taking reasonable care to organise
Exam success for BGL staff
Nicole Neckebroeck and Lianne Lennon-Banks with their certificates
and control its compliance procedures. “CPP provided customers with misleading information about cover which was either not required or where its sales force had exaggerated the risks concerned. In all three cases the firms had objection handling strategies.” Addleshaw Goddard goes on: “With these fines, the FCA's general insurance add-ons market study, the thematic review on commercial brokers conflicts of interest, earlier thematics
for mobile phone insurance and motor legal expenses insurance, and the Competition and Markets Authority's investigation into the private motor insurance market, the insurance sector might feel under the regulatory spotlight. Moreover, later this year the FCA will carry out thematic work in relation to cover holders, premium finance, commercial claims and client money as well as carry over work in relation to motor legal expenses insurance and mobile phone insurance. “
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s part of its ongoing investment in insurance counter fraud, the BGL Group is celebrating the success of two employees passing the International Compliance Association’s Certificate in Financial Crime Prevention. Both Nicole Neckebroeck and Lianne Lennon-Banks passed the entry level examination and have ambitions to further their studies in financial crime prevention. The examination covered many areas within the insurance industry which could be exposed to fraud, including cyber-crime, identify theft, bribery and corruption, internal fraud, terrorist financing, money laundering and European legislation. BGL's senior financial crime manager Martin Croucher says, “The introduction of this new examination was very timely for BGL, as it helped us develop our antifraud specialists and hopefully whet their appetite for further studies in this field. The knowledge gained by Nicole and Lianne, and others who may follow in their footsteps, will aid our understanding of the drivers behind fraud and our development of controls to combat this.”
ABC Home insurance now on Assurant Intermediary
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V= Broker and Assurant Intermediary have announced that ABC Home insurance is now available on the Assurant Intermediary product platform, which is used by over 1,000 mortgage brokers and independent financial advisers and allows users to obtain quotations on a range of general insurance products. The ABC Home product provides buildings cover up to £1 million and contents cover up to a sum insured of £150,000.
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Cover for accidental damage to home entertainment equipment is included as standard and optional extras include cover for personal possessions, bicycles and legal expenses. Michael Lawrence, personal lines director at LV= Broker, says, “By partnering with Assurant Intermediary, we will further expand our distribution to IFA networks and increase the reach of the ABC product. We are very much looking forward to working with the Assurant Intermediary team on this.”
£2 million insurance fraudster found guilty
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usiness owner, Justin Hindry, has been found guilty and remanded in custody after he burnt down his showroom in a bid to fraudulently claim more than £2m from Allianz Insurance. Mr Hindry claimed on his insurance policy following a fire at the Aylsham Bathroom and Kitchen Centre showroom, in Norfolk in 2012. However, it didn’t take long for the substantial claim for buildings, contents and business interruption to unravel, with an early inspection causing concern. The Allianz fraud investigation team joined forces with Cunningham Lindsey’s major loss team and found credible evidence which pointed to foul play. Despite claiming that he was eight miles away when the fire was set, both eye
witnesses and evidence placed Mr Hindry in the proximity of the showroom when the fire was lit. Martin Saunders, divisional claims manager, Allianz Claims, commented: “This case is extremely serious because not only did Mr Hindry attempt to fraudulently claim a significant sum of money, but he also put his life and the lives of others in danger. “Allianz have detailed and complex processes and procedures to combat fraud, achieved by using a wide variety of resources. To maintain the integrity of our business, and to protect our many honest customers, it is vital that we insure to have these measures. We will not hesitate to assist the police with their enquiries and to bring people like Mr Hindry to justice."
Devitt goes live with Screentrade
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evitt Insurance Services has gone live with its Screentrade car insurance offering, as the latest development in its relaunch of the brand. The product is now live and quoting on the Confused panel, with other aggregators to follow. Devitt has worked with software house CDL to create online platforms for the suite of Screentrade insurance lines, which include private car, motorcycle and goods vehicle. William Hughes, managing director of Devitt, says, "Screentrade launched as the UK's first online insurance broker and quickly made its name as a powerful online brand. When Devitt acquired Screentrade from Lloyds TSB we knew that we needed to capitalise on the strong Screentrade brand recognition. We have worked with CDL to again deliver an online customer journey that's ahead of the competition."
Big cause of windscreen damage – animals
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nimals are the reason behind nearly 18,000 cases of windscreen damage in the UK every year, according to Auto Windscreens. Birds, which fly into cars, are the main culprits, but other wildlife and pets are also responsible for chipped or cracked glass. Deer, goats, monkeys, cows and dogs have all been cited by customers of the automotive glazing business. While animal damage contributes to a small share of the glass repair market, Chris Thornton, managing director of Auto Windscreens, said: “The majority of reports we receive about broken vehicle glass relate to stone chips, but every so often we get a customer who says a freak animal-related incident is the cause. It’s amazing how they manage to create such damage and end up in these ‘hairy’ situations!” To encourage customers to talk more about their strange reasons for damage, Auto Windscreens ran a ‘weird windscreens’ competition on Facebook last month. One lorry driver said: “I was driving my truck down the M1 one night and an owl flew into my windscreen. It left its outline on the screen and a big chip where its beak had hit!” SEPTEMBER insurancepeople 25
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Home and motor insurance costs down 7%
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he BIBA and Acturis Insurance Price Index reports that the cost of home and motor insurance has reduced in real terms by 6.8% in the last year. It shows that premiums fell by 4.9% in the second quarter of 2014, compared with the same quarter of 2013. Taking into account an inflation rate of 1.9% produces the saving of 6.8%.
Consumers are seeing a downward trend in motor and home insurance costs, although this is slowing down for the home insurance market. The index shows that home insurance premiums fell by 4.2% in Q2 compared with 5.4% in Q1 2014, while motor premiums were down by 5.6% compared with the same quarter of 2013.
Graeme Trudgill, BIBA’s executive director, says, “Overall this is great news for customers and shows that the government and industry initiatives are working to reduce the cost of motor insurance. We look forward to seeing further plans coming from the Government, such as the young driver Green Paper from the Department for Transport.”
Graeme Trudgill
MBO at Open GI/PowerPlace
Swinton extends contract with SSP
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he management team of Open International Ltd, the parent company of Open GI, Open GI London and PowerPlace have announced their acquisition of the company from its private shareholders with the backing of Montagu Private Equity LLP. Chris Guillaume, CEO, Open International, says, “We have continued to build on our strong position in the market over the past few years and we are excited to be driving the group’s next
phase of growth, notably in the commercial insurance market where PowerPlace is at the forefront of the move to standardise and transact products online. We are delighted to be working again with Montagu. With their extensive knowledge of the business and experience backing the growth of other software and technology businesses, they are the ideal partners to support us as the business expands to take advantage of the changing market dynamics.”
winton has extended its contract with SSP, upgrading to SSP Select Broker to support its business plans and move to a multi-channel organisation. Steve Pearson, managing director, broker division at SSP says, “The relationship between Swinton and SSP has been a long and happy one, dating back more than three decades. We’re delighted to continue this partnership and to support Swinton in elevating its digital position in the market. “Increasingly, consumers expect to be able to interact with their broker and insurance provider in multiple ways – for example, they may search for quotes on a smartphone, process their purchase in a branch and make enquiries through a call centre. Upgrading to SSP Select Broker gives Swinton the added power to provide this experience rapidly and seamlessly.”
Auto Windscreens opens in Peterborough
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eterborough is the latest city to become home to an Auto Windscreens Fitting Centre, as the company continues with its growth plans. Based on Harvester Way, Fengate, the new location will serve Peterborough and surrounding areas, including Spalding, Huntingdon, Kings Lynn and Wisbech. Eight windscreen repair and replacement technicians have been employed to work from Peterborough.
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On the move Who’s going where? Barbican
Bluefin
Barbican Insurance appoints Julie Abbott as a contingency and media underwriter. She was most recently a film and entertainment underwriter at ProSight Syndicate 1110, contingency practice leader, media and entertainment at Travelers Insurance and an assistant underwriting manager at Royal & Sun Alliance Insurance.
Bluefin appoints Ian Parker as a business development executive for its health & care team. He joins from Towergate and previously worked in the charities and healthcare division at Giles Insurance Brokers.
Julie Abbott
Lexelle Lexelle appoints Sharon West as managing director. With over 30 years’ experience, she joins from UK General where she was schemes director and client development director, and was previously head of projects – creditor at HBOS and insurance manager at Barclays Bank.
RSA RSA appoints Patrick Bergander as CEO of RSA Scandinavia. With 18 years’ experience of senior finance roles, he was previously RSA Scandinavia’s CFO and also worked at Electrolux and If Skadeförsäkring AB.
VEHICLE SERVICES Collection, storage and sales
Ben Travis
Swinton Swinton Insurance appoints Matthew Collings as personal lines account executive. He was previously business and network support co-ordinator for Swinton and held a graduate role at Quindell Business Process Services. Ben Travis is appointed as personal lines account executive. He was previously a sales executive and team manager for Swinton.
AXA AXA appoints Mark Holloway to lead its Birmingham branch. He returns to AXA from Travelers where he was branch development manager and senior development executive. He was previously AXA’s key account executive – strategic partners, account manager and development underwriter, and senior commercial underwriter at Guardian Royal Exchange.
Marsh
Sharon West
Sterling
Paul Whiston
Matthew Collings
In association with
Sterling Insurance appoints Paul Whiston as regional development manager for the North West. He joins from Evolution Underwriting where he was a business development executive for the North.
Marsh appoints Chris Lay as president of its global captive solutions business. He has worked at Marsh since 1984 in various senior roles, most recently international business development leader. Dean Klisura becomes head of global placement. At Marsh for over 20 years, he has held various senior roles including US risk practices and specialties leader, global leader and global placement leader for FINPRO.
Garwyn & Davies Garwyn & Davies Liability appoints Rebecca Payton to lead their national disease claims team. She joins from Plexus Law where she was a disease claims practitioner.
Rebecca Payton
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In association with
On the move Who’s going where? Cunningham Lindsey
RFIB RFIB Group appoints Richard Dyke as operations manager of their non marine international division. With over three decades’ experience, he joins from Howden Insurance Brokers where he was head of operations and previously held senior management roles at QBE Europe and Aon Benfield. Hassan El Kaissi is appointed as general manager of RFIB Saudi Arabia. He joins from Zurich Insurance where he was head of its mid
VEHICLE SERVICES Collection, storage and sales
Hassan El Kaissi
market segment in the Middle East and was previously vice president, sales and marketing for Saudi United Cooperative Insurance and has held management roles at AIG Saudi Arabia, Chedid & Associates and Red Sea Insurance.
Cunningham Lindsey appoints Sarah Durkin as a major loss investigator. She was previously a forensic/fraud investigator for Cunningham Lindsey and has worked at BDO, the Independent Police Complaints Commission, HMRC and the Police. Bill McCrae is appointed as a major loss adjuster. He joins from Crawford and Company where he was a major loss adjuster and has previously managed Ellis and Buckle’s specialist adjusting unit.
Bill McCrae
Prestige
LV=
Prestige Underwriting appoints Ant Sherlock as head of GB sales and distribution. He joins from AXA Personal Intermediary where he held various management roles.
LV= Broker appoints Carl Berriman as head of product delivery. With over 25 years’ experience, he joins from Markel Insurance and has previously worked at Churchill and Hiscox.
Richard Yerbury
Charles Taylor Charles Taylor Management Services appoints Richard Yerbury as performance and strategy director. He joins from Bain & Company where he was a principal in the financial services team and was previously a managing director at Lloyds Banking Group and worked at Marakon Associates. 28 insurancepeople SEPTEMBER 2014
Rashpal Rooprai
Sarah Durkin
QFC Authority The Qatar Financial Centre Authority (QFC Authority) appoints Yousef Abdulla Fakhroo as director of marketing and corporate communications. He was previously global communications manager at Qatar Petroleum International and has held senior roles at RasGas, Vodafone Qatar and Qatar Foundation.
Édouard Merlet
Argo Argo International appoints Rashpal Rooprai as senior liability claims adjuster. She joins from Xchanging Claims Services where she was a senior claims adjuster in the professional indemnity and financial lines team and was previously a solicitor. Édouard Merlet is appointed space risks underwriter for ArgoGlobal Assurances. He previously worked at Allianz Global Corporate & Specialty and EADS Astrium.
Yousef Abdulla Fakhroo
by Andrew Newman
“Taking Lloyd’s to the provinces” The loan of this ‘well-used’ photo was prompted by the memory of David Holman who passed away in May 2014 Terry Wellard writes:
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ast time on this page, when On the Road temporarily became On the Wing, you spoke about the late David Holman’s prowess as a pilot and his habit of taking to the air when paying visits to far-flung regional broking fraternities. When I worked at Holman’s I naturally became involved in these flights “taking Lloyd's to the provinces” and just four
years ago I received this photo from my mother. My father died at that time and this picture was found in his wallet having been kept there from the time I must have given it to him in the early 1970s. I had completely forgotten it, but I recall he was very proud of me flying in a private aircraft which was unusual at that time. Note the ‘style icon’ from all our yesterdays contrasting with the more traditional apparel – including trilby hats – of David Holman (centre) and the late Harry Downer, the founding Underwriter of Highway Motor Policies at Lloyd's.
And no, I wasn’t flying with David Holman in Scotland when he clipped the hedge on a short runway in bad weather as related in the previous issue of IP! Terry Wellard
in association with:
guaranteeing broker helped Lloyd's open itself up to regional brokers. In fact, thanks to IP’s Adrian Susman and modern technology the photo has been tidied up and the Editor makes no excuse for allowing it plenty of elbow room.
Thanks for the photo Terry – a piece of history preserved for posterity. It tells you everything you need to know about the ‘way it wos’ in the early 1970s when the emergence of the
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he ‘then and now’ soccer theme that’s crept into this month’s edition of IP (see page 11) spills over here to consider shorts – football shorts. The 1950s’ long baggy versions began to look historically ludicrous with the onset of the 1960s’ Bobby Moore era when ‘short’ meant short! But all things move in circles, especially in fashion, and the sight of some of the ‘see-thru’, spinnaker-sized yardage on display during the World Cup in Brazil… well, some players could just as well be wearing a skirt. And what about those socks unrolled above the knee? Commentators of the Kenneth Wolstenholme era would irritate all macho (i.e. stupid), amateur footballers by calling football socks ‘stockings’. Women wore stockings – men wore socks! And none of us would have been seen dead covering up a bare knee! Ah! The joys of ‘then and now’.
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