INSURANCEBUSINESS.CO.UK ISSUE 1.02 | Â£14.99
Looking for a niche? Get inspired by 102 agencies that have found success through specialisation BIG DATA
WHY BROKERS NEED TO USE IT
OFC and spine 2.indd 2
WHOLESALE OUTDATED OR VITAL FOR BUSINESS?
YOUR CLIENTS HOW THEIR EXPECTATIONS ARE CHANGING
15/07/2016 12:25:10 AM
The power of partnership IFC_01.indd 12
15/07/2016 12:23:43 AM
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15/07/2016 12:23:56 AM
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UPFRONT 06 Statistics
Brits are falling in love with telematics
SPECIALTY BROKERAGES 2016
From aviation to fine arts and from cyber to construction we compile and profile the leading specialty brokers by category from across the UK PEOPLE
Dominic Burke, JLT’s group chief executive, on challenges in the business and the growing cyber threat
CUSTOMER OF THE FUTURE
What does the customer of the future need and want, and what opportunities are available to brokers?
How should home-sharing gaps be closed?
10 News analysis
Are you ready for the Insurance Act?
The latest moves and acquisitions
14 MGAs update
What makes a great MGA?
16 Technology update
Fighting fraudsters with technology
Ethics and profit go together
ROLE OF WHOLESALE BROKERS
Just more unnecessary middlemen or a saving grace for brokers in their time of need?
FEATURES 56 Boosting influence
It’s not manipulation - it’s business
58 Social media
How to make your presence work for you
PEOPLE 52 Broker profile
How and why one commercial brokerage in Altrincham is in the ascendant
63 Career path
A man who turned down professional football in favour of insurance broking
BIG DATA BIG FUTURE
Industry experts weigh in on how big data will shape the way insurance brokers do business
08 Head to head
64 Other life
Paul Ali is an ultra-marathoner who just keeps on running
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15/07/2016 2:15:49 AM
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15/07/2016 12:04:18 AM
Where there is chaos, there is opportunity
usiness as usual – that has been the message from the insurance sector as it looks to catch its breath and regain its composure following the shock ‘leave’ vote in the EU referendum. The decision, made by a 51.9% majority of the UK public, had an immediate impact on the sector, sending share prices tumbling. Several international insurers openly speculated about whether they would retain their London base in the long term, while Lloyd’s CEO Inga Beale urged the industry to demonstrate that the UK is best placed to provide businesses with the risk transfer products they need. It has also left many questions swirling that the industry is desperate to answer over the coming months. If the UK does indeed leave the single market, then what will happen to the extensive European directives that have had an impact on our own regulations? Will passport rights be maintained and will businesses still enjoy the same freedom of movement? Meanwhile, what will happen to the regulations that directly affect the insurance sector, such as Solvency II?
“In the midst of chaos, also there lies opportunity” With the list of questions seemingly growing by the day, it’s worth noting that there is a new piece of legislation right around the corner too – the Insurance Act is due to be implemented on 12 August, affecting contracting and transparency requirements, among other changes, for brokers and insurers alike. The status quo has certainly been disrupted, yet the overt statement from the bulk of major insurers has been that nothing will necessarily change, and a ‘wait and see’ approach will suffice. Yet is that really the best approach for your business? In this edition of Insurance Business UK, we examine a number of pertinent issues, including the changing role of the wholesale broker, the new-look customer of the future, the influence of big data and, of course, the Insurance Act itself. What’s clear is that irrespective of the shock Brexit result, the insurance industry was and is changing. Now is not the time for complacency. The Chinese philosopher Sun Tzu reportedly said that in the midst of chaos there is opportunity. For brokers and insurers who seize the day now, those words may be worth bearing in mind.
The team at Insurance Business UK
www.insurancebusiness.co.uk AUGUST 2016 EDITORIAL Editor Paul Lucas Journalists Callum Glennen, Heather Turner, Libby Macdonald, Tim Garratt Editorial Researcher Hannah Goh Production Manager Alicia Salvati Production Editor Roslyn Meredith
CONTRIBUTORS Tim Baker, Sian Fisher, Marcus Seeger
ART & PRODUCTION Design Manager Daniel Williams Designers Joenel Salvador, Randy Pagatpatan Traffic Manager Kay Valdez, Lou Gonzales
SALES & MARKETING General Manager Sales John Mackenzie Business Development Manager Jonathan Connelly Sales Manager Dane Taylor Mktg & Comms Manager Lisa Narroway
CORPORATE Chief Executive Officer Mike Shipley Chief Operating Officer George Walmsley Managing Director Tim Duce Chief Information Officer Colin Chan Human Resources Manager Julia Bookallil
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15/07/2016 12:04:59 AM
LEADING GLOBAL INSURANCE AND RELATED RISK MANAGEMENT SERVICES Thomas Miller Specialty offers leading global insurance and related risk management services across a number of sectors, including marine, aerospace, cyber and kidnap and ransom. All of our specialty risks are managed by Thomas Miller on behalf of Lloydâ€™s of London and select company markets. For more information contact us on +44 (0)207 283 1227 or email email@example.com
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15/07/2016 12:05:04 AM
Brits love their black boxes A 40% increase in telematics car insurance policies in the last year alone makes it clear – they’re a hit TELEMATICS POLICIES, which reward good drivers with lower premiums, have reached 455,000 in number, according to the British Insurance Brokers’ Association. The policies are particularly useful for young drivers, who otherwise would tend to be offered higher premiums. Plummeting connection costs and a surge in the use of predictive analysis are set to drive the deployment of telematics across the global insurance industry, according to a new report by Ireland-based
drivers who would adopt telematics to reduce premiums
drivers who would consider telematics if given safe driving refunds
LIVE TELEMATICS POLICIES Consumers – ever on the lookout for lower premiums – are drawn to the black box, and the number of live telematics policies has risen dramatically in the last six years. Crash risk drops 40% when a new driver has a telematics policy. Telematics also reduces theft claims, as many systems double as vehicle-tracking devices.
Research and Markets. The same report reveals that consumers’ enthusiasm for in-car connectivity plus the growth of smartphone penetration are helping boost the market. The expansion of telematics use is already impressive, but several user concerns are to an extent keeping it in check. Chief among these is the potential for misuse of personal data; consumers remain wary of Orwellian tracking of their movements.
drivers who would consider telematics if given low mileage refunds
average 2015 increase in car insurance costs
Source: The actuary/ uSwitch
TELEMATICS SALES ARE UP According to uSwitch, the potential saving on insurance premiums has prompted more people to become interested in black-box policies
NOT EVERYONE CONVINCED Not all drivers are convinced of the benefits of telematics – one in five say they would never consider taking out such a policy A TELEMATICS POLICY
said it was ‘too much like big brother’
did not want to be monitored by the insurance company
think telematics will remain a niche market
increase in telematics insurance sales over past year
think telematics will become redundant as motoring technology improves
of savings on average for 18- to 21-year-olds
Source: The Actuary/uSwitch
Source: The Actuary/uSwitch
15/07/2016 12:05:28 AM
0 Source: British Insurance Brokers’ Association
A TAXING SITUATION Money talks, and the steady rise in taxation on motor insurance has sent many into the arms of those companies offering telematics devices tax rate on motor insurance premiums
10% increased to 9.5%
AVERAGE PREMIUMS BY DEMOGRAPHIC New and young drivers usually bear the brunt of the highest premiums – which means they save most with telematics policies if they keep their driving records clean 1,600
increased to 6%
increased to 5%
2.5% single rate charged
increased to 4%
200 0 1994
2015 Source: The Telegraph
payments for those under 25
average payments for all age groups
payments for those 55 and over
Source: British Insurance Brokers’ Association/Consumer Intelligence
15/07/2016 12:05:34 AM
HEAD TO HEAD
How should home-sharing insurance gaps be closed? Once a homeowner hands over the keys to a third party, their coverage can be voided
Thomas McCourtie Analyst, general insurance Verdict Financial
Director of product & marketing HomeProtect
“Services such as Airbnb present more of an opportunity than a problem for insurers. Sharing is commonplace across all areas of personal finance, and I don’t see why insurance should be an exception. For home-sharing, a host insurance policy is required, and this type of cover isn’t offered by several mainstream providers. Therefore the onus is on the insurer to keep pace with not only market developments but societal changes too, and adapt their products accordingly. Consumers now expect a more personalised product tailored to suit their needs. This is the only way the ‘gaps’ in service can be closed; otherwise, as consumers continue to change their attitudes and behaviours, more will appear. Product development and reinvention is key.”
“The sharing economy is changing the way people use their homes; however, many homeowners don’t realise the risks that opening their homes up to paying guests can bring. Airbnb’s Host Guarantee provides a useful back-up to home insurance, but some homeowners mistakenly believe this is a replacement. Personal liability and protection for valuables is limited, and it’s becoming increasingly common for guests to sublet without permission. Homeowners need more help to understand how they can protect themselves. If this is how modern homeowners live, then insurance providers need to adapt to new insurance situations to help meet customer needs.”
“The growth of Airbnb results in the need for a different home insurance model. Every sharing transaction has many stakeholders: the facilitating platform, the property owner, and the user. Each must cover or transfer their liabilities and risks. Brokers are now providing innovative solutions for sharing economy participants. Key to minimising risk is validation – the more information home sharers can obtain about their users the easier it will be to find appropriate insurance. Many can now arrange covers targeting the different parties in the sharing transaction for loss or damage through specialist covers or top-up policies that accompany existing policies.”
Executive director BIBA
ADDRESSING COVERAGE FOR HOME HOTELS There’s no escaping the importance of Airbnb: a recent study from 7Park Data put the app’s inventory of rooms at approximately 2.3 million globally, and with a valuation of over $25bn it is worth 25% more than legacy accommodation go-to Hilton. US bookings surged 45% year-on-year in the first quarter of 2016, and the mobile app’s monthly active users doubled from Q1 2014 to Q1 2016. For Airbnb’s growing pool of hosts grappling with the realisation that the service’s much-vaunted ‘Host Guarantee’ is not the same as insurance, and with horror stories such as the London couple who found their flat was used for a 21st birthday party resulting in £3,000 in damages, solutions to the current gaps in coverage cannot come soon enough.
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15/07/2016 12:06:01 AM
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15/07/2016 12:06:06 AM
Insurance Act: Are you ready? It’s been described as the most significant change to insurance law in the country for more than 100 years – but are brokers really prepared for what’s ahead? CHANCES ARE that if you’re reading Insurance Business UK then you will have heard of the Insurance Act, due to be enforced on 12 August. However, awareness and understanding are two different things, and concern is growing that as the Act’s implementation looms many brokers may be underprepared. “When I have discussions with prospective clients and raise the subject of the Insurance Act, across a range of spectrums there is a blank expression on their face,” said Gordon Duncan,
parties involved need to take action now to apprise themselves of the altered circumstances.”
What it changes The Insurance Act is designed to update the statutory framework that was outlined in the Marine Insurance Act of 1906 for the modern UK insurance market. Broadly, it will focus on six main areas of change to the existing law: the duty of fair presentation; new remedies for non-disclosure; warranties and other terms; fraudulent claims; contracting out and
“The observation many brokers have made is: ‘If we’re going about our business in a professional way, then not a lot changes’ ” Nick Smith, UK underwriting manager, Aviva UK partner and head of corporate at Lockton, Scotland. “Or they may have heard about it, but they know very little detail – and that, to me, is quite concerning. “It will create a different dynamic between the insurer, the client and the broker, and those
transparency requirements; and rectifying the deficiencies of the Third Parties (Rights Against Insurers) Act of 2010 to allow it to come into force in the near future. “There are things in the Insurance Act which change how an insurance contract would have
performed historically,” commented Nick Smith, UK underwriting manager at Aviva UK. “If you take one example on warranty – imagine an insurer enforces on a customer that they need to set their alarm every day on their premises, and one day they forget to do it. Then on another day, when they have set the alarm, they have a theft. Under the old terms of the 1906 Act, an insurer could have avoided the claim completely because the customer hadn’t fulfilled the terms of the contract on one day, even though they set the alarm on the day of the theft. However, post-August that type of thing changes in that if a customer doesn’t do something then the insurer’s liability is suspended, but just for the period when they’re not carrying out that obligation. “It’s far fairer, and I think explaining that to customers is part and parcel of the job we have as an industry.”
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15/07/2016 12:06:30 AM
INSURANCE ACT: THE CHANGES New disclosure duties in nonconsumer insurance contracts Remedies for breach of duty of pre-contractual disclosure Changes to contractual terms and warranties: consumer and non-consumer contracts Remedies for fraudulent claims by policyholders: consumer and non-consumer contracts Duty of utmost good faith: consumer and non-consumer contracts Amendments to the Third Parties (Rights Against Insurers) Act of 2010 Insurance Act should stop people from behaving in that manner.”
What to do
According to David Williams, technical director at AXA Insurance, the impact of the Insurance Act is potentially massive, and it could help clean up the industry’s image.
of legal precedent and we know precisely what things mean under the old regime – and there’s a danger now that all that starts again. “The positive is that we know our industry
“There are still some players who don’t behave in the manner they should … the Insurance Act should stop people behaving in that way” David Williams, technical director, AXA “You can’t underestimate the impact that it’s going to have,” he said. “But it’s just the first stage. What usually happens with these things is you get some legislation and there are some blurry bits around the edges, some challenges in court, and I am concerned that we have years
doesn’t have the best reputation, and my view is we’ve done lots to change that. Unfortunately, there are still some players who don’t behave in the manner they should and they are the ones that get featured in the bad-news stories and get talked about in the pubs – the
So what, if anything, do brokers need to do in time for the change – will this mean a wholesale change to their day-to-day activities or will it be business as usual? “From a broker’s perspective, yes, there’s some new terminology, some new phrases, and it’s important they talk to their customer about that,” Smith said. “But fundamentally, it’s just the framework that has changed. “You need time to update your processes and procedures, your documentation. I think in terms of customer engagement I would expect brokers have already been talking to customers about this, and those conversations need to continue.” Williams added that “from an insurer perspective it’s the detail around warranties and contract rules, etc. For the broker, though, it’s about fair presentation of the risk. That’s what they need to understand, and they must stress the importance of that to their customer. Personally I’d get them to sign things off – that’s good practice. “Yes, there are legal changes, but depending on what markets the brokers use, and if they’ve always behaved professionally, then it might mean no changes at all.”
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15/07/2016 12:06:36 AM
INTELLIGENCE CORPORATE ACQUIRER
Newhall Medical Practice
The buyout is BHSF’s seventh since 2012 as it expands its occupational health business
The underwriting facility will boost Beazley’s marine offerings
Kingsbridge Risk Solutions
The broker was previously backed by private equity firm Livinbridge, who have now exited the business
Weald Insurance Brokers
Steadman & Hozier
This is the second purchase Weald has made in the last 12 months
Channel Insurance Brokers
The deal for the Guernsey-based broker was for an undisclosed sum
Global Risk Partners
Cavendish Munro is primarily focused on the surveyor, solicitor, accountant and engineering sectors
POLICIES TO HELP ARMED FORCES MEMBERS HIGHLIGHTED BY BIBA
The British Insurance Brokers Association (BIBA) has identified some simple changes that can be made to insurance policies to make insurance for members of the Armed Forces easier. Cancellation fees will be waived and a pro-rata rebate will be provided when a member of the Armed Forces community is posted overseas. Another minor change is that no claims discounts accrued by a member will also be frozen for up to three years to allow for their deployment. Many brokers have already signed up to meet these goals that make sure military personnel don’t miss out.
UNDERWRITER LEVIATHAN ACQUIRED BY BEAZLEY
Specialist insurer Beazley has acquired underwriting facility Leviathan in order to boost the company’s marine offerings. Leviathan covers a range of subsea risks, including remotely operated vehicles, seismic streamers, submarine and diving equipment. It adds to Beazley’s extensive portfolio of marine cargo coverage. Founder of Leviathan Simon Edwards said the underwriting facility already had a long and successful trading relationship with Beazley and would contribute to the company’s ongoing growth. Beazley’s marine team will be joined by Leviathan’s principal underwriters Simon Edwards and Keith Broughton.
CHUBB UNVEILS NEW MID-MARKET POLICY FOR BUSINESSES
Chubb has launched a new comprehensive single property and liability package insurance policy for middle-market businesses in the UK and Ireland. Called MasterPackage, the policy is for businesses that have local or international operations and a turnover of between £2m and £500m. Chubb UK and Ireland package manager Alex Forrest said the product was developed in response to feedback from national and regional broker panels. It covers five priority risk areas: property damage, business interruption, terrorism, employers’ liability and public and product liability.
15/07/2016 12:07:52 AM
LIBERTY MUTUAL LAUNCHES PRODUCT FOR BUSINESSES WORKING WITH KIDS
Liberty Mutual has launched a new product aimed at organisations that are working with children. Called Liberty Safeguarding, the product is designed to help organisations that work with kids to minimise risk by assessing their operations. It covers a wide range of insurance needs, including property, civil liability and crisis containment. It also allows access to specialist research and resources, counselling services, safeguard training and a charity helpline. Head of liability lines at Liberty Mutual Nick Mortimer said he believed the company’s unique approach would make children’s lives safer.
CRISIS RESILIENCE SOLUTION FROM ARTHUR J GALLAGHER
Arthur J Gallagher (AJG) has launched a product called Crisis Resilience Solution that is designed to protect businesses by minimising serious disruption, financial loss and adverse publicity. It is offered to all businesses regardless of their size and includes a 24/7 response consultancy, £5,000 in emergency funds, and access to an online portal for key business information. Paul Bassett, AJG managing director of crisis management, said organisations of any size or location could find themselves impacted by these threats. Bassett leads AJG’s newly integrated crisis management capability.
R&Q COMMERCIAL RISK SERVICES LAUNCHES CYBER COVER FOR SMES
A new cyber cover product designed for smaller businesses has been launched by R&Q Commercial Risk Services. First- and third-party liability expenses caused by data breach and crime pose significant risks for SMEs, but head of R&Q Commercial Risk Services James Wheddon said the market tended to target larger businesses. “Often, these products are not suitable for SMEs, who are after something both simpler and more appropriately priced but that can protect their business from a cyberattack or data breach,” he said.
Sir John Kingman
Legal & General
Willis Towers Watson
Senior vice president for risk services in Europe
Head of global placement
Marine and offshore construction underwriter
Head of international marine
Property treaty reinsurance underwriter
Willis Towers Watson
Specialist underwriting leader
RICHARD ROWNEY NAMED NEW CHIEF EXECUTIVE AT LV=
LV= has named Richard Rowney as its new chief executive. Having been at the company since 2007, Rowney was most previously the managing director of LV=’s Life and Pensions business. He is replacing Mike Rogers, who this year decided to step down after a decade in the role. LV= chairman Mark Austen said Rodgers had led LV= with distinction and success, and Rowney was the right person to continue to build on the company’s success. “I’m fully aware of the board’s ambition for LV= and am excited by the challenges and opportunities that lie ahead,” said Rowney.
GOCOMPARE.COM APPOINTS NEW CEO AMID STRATEGIC REVIEW
GoCompare.com has appointed Matthew Crummack as its new CEO. Crummack was previously the CEO of LastMinute. com between 2011 and 2015, and is currently a non-executive director at National Express. He said he was delighted to take on the role of CEO of GoCompare.com, following what has been a positive period for the company. The appointment comes at a time of strategic review for GoCompare.com. The board of esure Group plc, which acquired the outstanding 50% of GoCompare.com for £95m last year, recently announced a strategic review of the business. This includes a potential demerger.
15/07/2016 12:06:58 AM
What makes a great MGA? With a multitude of MGAs now available to brokers, what differentiates a great one from the rest?
de la Morinerie said. “We want to build innovative insurance solutions which would be adapted to clients and our brokers.” The challenge for Aquila Underwriting is identifying the MGAs that offer an opportunity for growth and success. Aquila chairman Christopher Spratt said the selection process is stringent, and involves a significant amount of work to make sure the
“We’re making sure that they have a proper equity involvement which concentrates their minds and drives their ambition”
Managing general agents (MGAs) have seen a surge in popularity in recent years, offering specific, niche products designed to be more flexible and bespoke than what a larger insurer could offer. But with so many now available, the competitive marketplace is becoming increasingly difficult to navigate. Aquila Underwriting is an MGA incubator that was founded in 2007. It selectively invests in and develops MGAs with the intention of selling them off when they become established, so it knows how to pick the best opportunities.
Aquila’s most recent venture is WeSpecialty, a Paris-based MGA currently specialising in marine cargo. Leading WeSpecialty is Patrick de la Morinerie, who was most recently deputy CEO of AXA Corporate Solutions in France. He said the cargo marine insurance business in France is lacking an entrepreneurial mindset and WeSpecialty can rejuvenate customer experience in the market. “We want to put a light on really complex and sophisticated risks that cannot be responded to just with a purely local mindset,”
Inet3 launches Flood Re products
The specialist property MGA inet3 has launched a Flood Re solution focusing on non-standard homes. The new solution is underwritten by AXA Insurance and is designed to offer flood products to people who have faced extreme difficulty in getting insurance in the non-standard property market. In order to educate brokers about the products, inet3 has also launched a new learning hub. Chairman of inet3 Catherine Bell said the product had been in the works for a very long time, and her work with Flood Re had helped the company shape the product.
interests of the Aquila’s partner shareholders, the entrepreneurs driving the MGAs and the carriers align. “Quite unashamedly we want these businesses to grow profitably and to prosper, so they become, not in the case of WeSpecialty just yet, but they become in a relatively short period of time an attractive acquisition proposition to others,” Spratt said. Aquila Underwriting does this by ensuring the entrepreneurs have a real stake in the business and not just employing people. “We’re making sure that they have a proper equity involvement which concentrates their minds and drives their ambition in the best possible way.”
International deal on crisis management
Lloyd’s MGA and specialist lines underwriting agency CFC has reached an agreement with CS&A International to add the risk and crisis management firm to its panel of crisis consultants. Under the deal, CS&A International will be on standby to respond to requests from CFC Underwriting’s clients. CFC crisis management practice leader Natasha Catchpole said crisis consultants were an integral part of its product recall suite. Its crisis management products target industries such as food and beverage, automotive component parts and consumer product industries.
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15/07/2016 12:08:12 AM
Sam White CEO
Unmasking the secret managing general agent
Fast fact Pukka Insure was launched at the BIBA Conference in May, offering insurance for commercial van drivers
How important is finding a specific niche, like van insurance, for an MGA? I would say, from my experience in business, you should always look to go into something that you have the greatest level of experience in. I think it’s no different with an MGA. We happen to have lots of experience with van drivers from a claims perspective and relationships in that area, so it just made sense. To me, I would say niche is incredibly important. Myself and my management team have 17 years of experience, from a claims perspective, in the field. The other business I own, a claims service company called Action365, mostly deals with commercial clients. I think there are a number of players in the market already, but there is still opportunity within the sector to do things differently.
What are you doing to set yourself apart from the competition? We’re coming to the MGA from a slightly different perspective in that we’re very much focused on management of claims and costs. We have a strong underwriting focus as well but, having a business that has operated in the claims sector for 17 years, we understand the importance of making sure that when claims come through, which they inevitably will do, they are handled correctly. But we’re doing other things as well. We’ve got
Blueﬁn extends partnership with Lorega
Bluefin has extended its loss recovery insurance partnership with the MGA and assistance specialist Lorega across its middle market and commercial business. The deal is for three years and will see Lorega continue to provide loss recovery insurance cover as ‘Bluefin Assist’. Bluefin and Lorega have already partnered on loss recovery insurance for over a decade. Lorega managing director Neill Johnstone said the strengthening of the partnership will give them the opportunity to continue to develop new products and services in the future.
a telematics app for the van drivers, and we’re looking at essentially white label partnerships. In terms of differentiators we’ve also set up a charity foundation, and we are giving a percentage of our profits to grassroots charity projects. We’re just looking to do things differently across the board. MGAs have more flexibility, so they’re not constrained by the issues that a larger corporate entity would be affected by. I think brokers are generally looking for capacity in the market, but I cannot fault them in terms of the overwhelming support that they’ve given us in getting to launch. Post-launch they’ve also been supporting us to get them the kind of product that they need in order to be able to write business.
Do you think there is an oversaturation of MGAs in the market? I think that the insurance market is very competitive full stop, so existing players in the market probably don’t want new players to come in because it’s already a competitive market. But to say that there are too many MGAs I don’t think is a fair point. I think MGAs often have the ability to be nimbler and more flexible than some of the traditional insurers. In a market that’s competitive and actually already has quite a lot of innovation via the insurance brokers, it can only be a good thing.
Ascent launches cyber liability product
Ascent Underwriting has launched an enhanced cyber risk product that combines insurance, risk management and breach response solutions for UK brokers. It focuses on emerging areas of risk, including network extortion, phishing, social engineering, rogue employee action and electronic theft. Policyholders will have access to a response team post-crisis, and training support programs. Chief underwriting officer Gareth Tungatt said the CyberPro product allows policyholders to pick and choose elements of the product to meet their needs.
Modus launches home insurance product
Modus Underwriting has launched Home Insurance Plus, a product for non-standard homes with no underwriting referrals. It is available for listed or protected buildings, holiday and weekend homes, and unoccupied properties. It also covers tenanted properties, including professional and benefits-assisted tenants, lodgers, students and asylum seekers. Director Scott Banks said Modus focuses on delivering automated products direct to UK brokers through software houses. The product is available through SSP.
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15/07/2016 12:08:17 AM
TECHNOLOGY UPDATE NEWS BRIEFS Increase in cyber regulations inevitable
Speaking at Beazley’s Hacked! Conference, experts have warned that cyber regulations are only going to increase, even now that Britain has voted to leave the European Union. Speaking prior to the EU referendum, the head of the cyber risk and breach response team at international law firm DAC Beachcroft, Hans Allnutt, said a ‘Brexit’ would not let businesses of the hook. Any business that still operates in Europe will still be subject to the region’s laws, so won’t escape regulation. Britain is also likely to draft its own similar regulation to remain globally competitive.
Telematics used to identify fraud
Insure the Box has used data collected from car telematics systems as evidence in an insurance fraud case valued at £500,000. The case is one of the first of its kind, in that data from a car’s telematics system was used to disprove a driver’s claims. In one of the 31 claims that were disproved in the case, black box data showed that one of the cars had been parked outside the business of the other person involved in the accident before the crash occurred, disproving their statement that they were strangers.
Driverless car insurance launched
Adrian Flux has launched the first personal driverless car insurance for UK motorists, as the company feels confident driverless cars are not too far away. The policy was also launched at this time because increasingly autonomy is being built into cars through systems like self-parking programs and similar
driver assist systems. The policy covers situations such as vehicles failing to install software updates, satellite outages and damage from hackers. Another situation covered would be a driver failing to use a manual override system to avoid an accident.
Businesses unsure about cyber cover
According to email and data security company Mimecast, 45% of businesses with cyber insurance are unsure if their policies are up to date for covering social engineering email attacks. Only 10% of responders to Mimecast’s survey believed their cyber insurance policies were completely current and advanced, and just 43% of firms were confident their policies would pay out for ‘whaling’, meaning fraudsters impersonating a trusted employee in a financial transaction. Mimecast director of security product management Steven Malone said a lack of employee training on the latest email attacks was leading to a high risk of businesses breaking policy terms, resulting in lack of cover.
Beazley, Munich Re tapped for cyber protection
After launching a partnership in April, Beazley and Munich Re have said they are working with FTSE 100 companies and other UK firms with revenues over £1bn to develop unique solutions to protect digital assets. According to Paul Bantick, Beazley’s UK focus group leader for technology media and business services, half the companies they are working with are first-time buyers of cyber insurance protection. Manufacturing companies have also been showing increased interest in cyber cover and are concerned about supply chain vulnerability and cyberattacks causing major production shutdowns.
Using data effectively and responsibly Big data is big news for insurers, but brokers need to be aware of it too Speaking in June at the Financial Times Future of Insurance event, head of the Association of British Insurers Huw Evans said carriers must “become data-rich or find themselves drowning in it”. Big data is a buzzword in the insurance industry that may still not mean much to brokers. While big insurers have access to a wealth of data at their fingertips, smaller brokers do not have the same luxury. Despite this, brokers are the closest to the ground and most in touch with the source of all data: the customers themselves. Speaking to Insurance Business UK, broker and affinity director at Legal & General Kevin Roberts said insurers were beginning to wrap their heads around what big data means for the industry, and brokers were keen to know what it would mean for them. “I work with brokers large and small, and the conversations I’m having with them are how do we utilise their data and knowledge of customers to correlate and then enhance risk pricing with them,” Roberts said. “And we do that very successfully with some of our partners, which gives them the competitive edge which I’m all about.” Ultimately this is the end benefit for brokers: having more information than they could possibly acquire on their own, and insurers being able to use that data to offer competitive prices. “The channel, and the knowledge of customers that brokers large and small have – I’m fascinated to work in partnership with these guys to utilise
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that data and provide better insurance, better portfolios and better prices for their customers,” Roberts said. The only way this can be achieved is through brokers and insurers collaborating. Since brokers are there on the ground, actually speaking to the people being insured, they are the source of an indispensable amount of useful information. “That’s what brokers are good at, certainly in more bespoke, commercial
“I’m fascinated to work in partnership with these guys to utilise that data” risks,” Roberts said. He also cautioned against over-reliance on data and locking customers out. “We’re seeing with flooding, the advent of Flood Re, insurers, through their selection methods, deselect some parts of the country that are prone to floods,” Roberts said. “We just have to be careful and work as an industry so that we use it sensibly and we don’t create a data underclass: people that can’t get access to normal levels of insurance and premiums just because their risk profile has been judged as less desirable.”
Matt Kearney Business strategy director insurance consulting NTT DATA UK
Fast fact NTT DATA is headquartered in Tokyo and currently has business operations in over 40 countries
Fighting fraudsters with technology How is big data changing the insurance industry? In pockets it’s quite exciting, but overall the short answer is not as much as it could or should be, at least for now. In terms of highlights, the emerging proof regarding the ability to improve driver behaviour through telematics and not just remove value from the market will hopefully generate a lot more confidence. There is also some clever work going on in fraud prevention, but beyond that it’s still a work in progress. Many insurance companies are still grappling with big data as an idea, and those that have are still overcoming organisational challenges, as regards what could or should be done past trial stages. Once marketing, claims, supply chains, underwriting and counter-fraud teams start thinking holistically about a truly single view of the customer, that, I think, will change rapidly.
How hard is interpreting useful information from large amounts of data? I think it’s fairly tough at present, but not for the reasons it can be in telco or retail. In insurance, the biggest issue is still getting access to the data. By which I mean getting all the data, both structured and unstructured, including from key suppliers, into a state where it can actually be ingested in the first place. Secondly, I think the historical lack of cross-fertilisation between functions means there can be too much reliance on picking out correlations and not enough emphasis on causation. But, perhaps controversially, I personally wonder if the elephant in the room is that insurers actually do not have enough data. Consider it in terms of volume, velocity and variety. Then consider that with an average 1.3 product holding across the GI industry, and minimal in-life customer touchpoints outside of the 10% who make a claim, it could take a while for things to get really interesting – unless they embrace and create more data sources or even consider more cross-industry collaboration.
Many are resistant to handing over their data from things like wearables. Can this be changed? It’s still relatively early days and understandably there’s certainly resistance from consumers right now in a general big-brother concern kind of way. However, I think people will respond to a meaningful value proposition; the issue is there are relatively few in evidence. The best example I can point to is the South African company Discovery and their Vitality brand, which is doing some truly exceptional work in a number of countries, including the UK. I would advise people to find out more about their story and take note. And, of course, wearables are just the start, because if Connected Home Insurance is to work then that need only increases.
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GOT AN OPINION THAT COUNTS? email@example.com
Ethics and profit go together The scandals of the past have left us with the need to rebuild trust in the financial services sector, writes Sian Fisher of the Chartered Insurance Institute INCREASINGLY, WE see a focus on culture and conduct within financial services businesses in regard to how both firms and individuals behave. The architecture of the current regulatory regime, with the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) bringing increased attention to their respective spheres of interest, is partly responsible for this development. But having high ethical standards is also important for culture and morale. If individuals feel they are working in an environment that holds ethical standards in high regard, this sets an example of excellence, and individuals feel more inclined to mirror that ethical behaviour in their own work. Having goals with ethical intent helps the individual make a difference to customers’ lives. The focus also results from continuing legislative and regulatory developments stemming from the work of the Parliamentary Commission on Banking Standards, and the impact of the Solvency II Directive. One effect of these changes is the enhanced requirements that have been introduced for senior managers and other key individuals. Initially, these apply to dual-regulated firms (ie those regulated by both the PRA and the FCA) with effect from March 2016. These arrangements require both regulators to take a close interest in the way that firms and individuals behave. While in the immediate future the requirements apply to certain firms (such as insurers) but not to others (such as brokers), much of what they contain reinforces what is already seen as good practice, and as such is appropriate for wider application across all
firms. Although the requirements for insurers are somewhat less onerous initially, HM Treasury intends to extend the full Senior Managers and Certification Regime for the banking sector to all regulated firms (including insurers, brokers and financial advisers) by 2018. The new regulatory focus on business culture is an opportunity for both individuals
discuss difficult issues and challenge those in more senior positions. The overall need to address the reputational damage caused to the sector by the scandals of the past decade remains clear. Legislators, regulators and the industry itself all have a vested interest in rebuilding trust with clients, customers and the general public, to support the economic wellbeing of the UK and to demonstrate the broader value of financial services to society. As one strand of meeting these aims, the behaviours of firms and the individuals within them are going to be exposed to ever-increasing scrutiny. Regulators can create systems that can seek to hold individuals and organisations responsible for their actions. However, it is much better when the firms themselves take proactive responsibility for identifying and managing conduct risks and securing an ethical culture. Individuals can make their
The new focus on business culture is an opportunity to raise public confidence – we must drive up ethical standards and firms to redouble their efforts and help raise public confidence in the financial services sector. However, it is no longer enough for individuals and firms to simply comply with regulators such as the FCA – we must aspire to go beyond compliance and drive up ethical standards across the industry. In a highly regulated world it is important that professional bodies help firms build good culture both within their firms and also across the sector. As with many issues, senior managers play a hugely important role in setting the ethical tone of their organisations. In large firms leaders send strong signals to their workforce about what is expected, and ensure that middle managers are engaged and empowered. In small firms the leaders often set the culture of their firm, which presents challenges of a different nature. Regardless of the size of the organisation, it is essential that staff feel empowered to
own personal contribution to this by setting out to do the right thing as a matter of course. Those who are members of a professional body and consequently commit to adhering to codes of conduct and aspiring to the expectations of their various professions have a further part to play as role models in this new environment, as do the professional bodies themselves in helping to encourage and guide their members. A strong culture, led from the top, means that all employees – at all levels and in all functions – understand their purpose; understand what behaviour is expected of them; but most importantly understand why and how their roles contribute to customer outcomes and customer lives.
Sian Fisher has held senior roles in a Lloyd’s syndicate, a UK and European insurance company, a start-up intermediary, a market-leading MGA, and a major international broker and US corporate.
15/07/2016 12:09:15 AM
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15/07/2016 AMAM 27/04/201612:09:24 8:32:58
WHERE CULTURE IS KING JLT’s group chief executive, Dominic Burke, talks about overcoming challenges in the business and how the organisation is responding to the growing cyber threat
AFTER 15 YEARS leading the Burke Ford Group of companies, which he co-founded, Dominic Burke wanted to explore other opportunities. “I got to the point where I was perhaps not challenged, and some of my minority shareholders probably wanted to cash out, and I wanted to go forward,” he says. So he knocked on the door of JLT. “I was always greatly taken by the JLT culture,” he says. “I sought to join them in 2000, and they kindly agreed to buy my business.” Today, Burke is the group chief executive of JLT, a role he took on five years after joining the multinational insurance broker. Asked to single out the greatest challenge he’s faced in his 11 years at the head of JLT, Burke mentions the need he identified several years ago to provide the organisation with clarity. “I suppose it’d be fair to say that, back in 2005 and 2006, there was some confusion around what JLT was, where it was going and what its strategy was,” he says. “I think that was clearly a significant challenge – to shape the direction of the organisation. “JLT always had a reputation of being fantastically smart transactional brokers and having good knowledge in one or two specialities, in particular marine and energy,” he continues. “At the same time, we’d had some profit warnings under the previous leadership of JLT, and that meant that
there was uncertainty around the long-term prospect of an independent JLT. In those first few years, probably the most difficult challenge I had was to articulate the strategy of the company, convince our people and all other stakeholders in JLT that we could and would be able to build a business that can and does – every day now – challenge the major global brokers in the speciality segments in which we play.” He attributes his success in addressing those challenges to “the great people” at JLT.
the old JLT was and, at its core today, is absolutely what it is.”
Addressing cyber As is the case industry-wide, cyber risk has presented a pretty significant learning curve for JLT. “Everybody is still learning at a huge rate of knots, I suppose,” Burke says, “as to the types of exposures and where those exposures can come from, and also looking at how behavioural changes and risk mitigation
“Back in 2005 and 2006, there was some confusion around what JLT was, where it was going and what its strategy was. I think that was clearly a significant challenge – to shape the direction of the organisation” “We rallied together and articulated what the strategy was to be, and we’ve very successfully executed on that,” he says. “JLT is perhaps unrecognisable from back in those days of 2005, save that the culture of the organisation is still the core of the organisation. That culture of being great transactional brokers and putting your client first and doing the right thing and really being tenacious and fierce client advocates was, at its core, what
can create a better outcome and reduce the exposures to corporates around the world. The insurance market is seeking to be innovative around cyber, but of course, from a capital provider’s perspective, it’s very difficult to truly measure the expense and the level of exposures and where those exposures may materialise. It is about an education to better processes, better technology, better behaviours by employees and corporates
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PROFILE Name: Dominic Burke Company: JLT Title: Group chief executive Age: 57 Fast fact: JLTâ€™s UK operations employ 4,500 people. Its UK businesses include retail and wholesale broking, employee benefits services, reinsurance and managing general agent services. Operations are supported by shared services in the UK and Mumbai.
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themselves in physical risk mitigation and then, obviously, the degree of risk transfer.” For its part, JLT is taking some proactive measures to foster stronger client awareness around cyber. “What we’re doing,” Burke says, “is spending a lot of time educating both our own people and our clients; seeking to innovate and push the boundaries of what’s currently available in the insurance market; looking at pricing models using our analytics capability, which is very strong in this space; and helping map out the type of exposures and the way that we can help our insureds consider the degree of risk transfer they need to undertake.”
“I’ve just spent two weeks doing a tour of most of our US operations, seeing a great number of clients and prospective clients, visiting our people in our offices,” he says. “I’ve come back from the US really excited – surprised, on the upside, how far we’ve progressed in terms of brand recognition and the momentum around revenue and winning clients. We are having a profound impact, I think, and the momentum is building and building, and we now have over 200 people in our speciality business. “We do intend to build a business of scale, relevance and impact in our speciality sectors, and the story is still early in chapter
“We’re ahead of where we could have imagined or expected to be in terms of the number of talented people who have joined JLT, and that is critical. You cannot build a business without real talent” Burke adds that in today’s world it’s vital for insurance businesses to partner with technology companies in their endeavours to address cyber risk. “We’re now clearer as to where the exposures are,” he says, “but trying to grapple with them, trying to find the right level of indemnification and protection is primarily through insurance, but it is also very much technology-driven. If anybody thinks they can provide a solution without that, I think they’d potentially be fooling themselves or they’re not going to be able to provide the right consulting and advisory processes or ultimately the outcomes that I believe clients clearly need.”
Growth in the US Burke is overwhelmingly positive about JLT’s progress in expanding its US operations.
one. There’s a long way to go, but we’re ahead of the plan; we’re ahead of where we could have imagined or expected to be in terms of the number of talented people that have joined JLT, and that is critical. You cannot build a business without real talent. So we’re in great shape. I’m absolutely delighted and excited by how much progress we’ve made and are making on a daily basis.” Overall, Burke is confident about the direction in which the global broker is heading. “I’m convinced – as is my board, our people and clearly our clients – that we’re on the right track. And we will continue to stay on track and continue to invest and continue to build, whether that’s in Australia, Asia, Latin America, Europe or in North America.
JLT BY THE NUMBERS
The year the company was first established as a division of Jardine Matheson
Amount JLT spent to purchase Towers Watson’s reinsurance brokerage business in 2013
The current number of JLT employees worldwide
The number of countries in which JLT currently offers risk management and employee benefit solutions
JLT’s rank among the world’s largest insurance brokers
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15/07/2016 AMPM 8/07/2016 12:10:13 10:05:44
COVER STORY: THE SPECIALISTS
SPECIA In todayâ€™s world, specialisation is a must. Meet 102 agencies that have managed to carve out a profitable niche INDEX OF US SPECIALTY BROKERS PAGE
Meadons Insurance Brokers
Sennocke International Insurance Services
Asprey Harris Insurance Consultants
TMD Insurance Group
Commercial & Agricultural Insurance Brokers
Arts & antiques 26
Arts and Antiques BNF Insurance Services Dealers
Private and corporate collections
James McCrone Insurance Brokers
Chelsea Insurance Brokers
Museums and Galleries
Bryan James & Co Specialist Insurance Brokers
Unmanned Aerial Vehicles
John Heath Insurance Brokers
Elmore Insurance Brokers
Macbeth Insurance Brokers
IMS Arena Insurance
NSure Renewable Energy Insurance
Recycling/Waste Hale Kavanagh management
Asbestos Removal & Surveying
Business risks 28
UK Credit Insurance Specialists
Commercial property 29
Aquilla Insurance Brokers
Farm & animal 34 Livestock Farm/ 34 Arable Livestock 33 Equine 33 Equine 33 Saddlers Risk 33 Veterinary 33
Farriers & Blacksmiths
Miller Commercial Brokers Farmers & Mercantile Insurance Brokers Shearwater Insurance Services EquiCover Horse Insurance Circle Insurance Services Shire Insurance Eastlake & Beachell Insurance Brokers & Financial Advisors
Healthcare & medical 33
Health & Wellness professionals
Balens Specialist Insurance Brokers
Surgeons and Clinics
Paragon International Insurance Brokers
Hearing Aid Dispensers 36 Reflexologists/ Therapists 36 Pharmacy Hospitality 37 Craft Brewers Brewery 37 Restaurant & Pub Hospitality 36 Late night leisure 33
NMJ Insurance Brokers Alan Boswell Group PK Partnership Bollington Insurance Brokers Wilby Macbeth Scott & Co Seaway Insurance Consultants NDML Insurance Specialist
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LISTS “JACK OF all trades, master of none” used to be a common
epithet for a tradesperson who acted as a general practitioner. In modern times, with internet-only insurers encroaching on many brokers’ bread-and-butter trade, those without any given niche are feeling the pressure of a rapidly commoditising marketplace. Which is why in this issue of Insurance Business UK we’ve focused exclusively on those agencies that have found their
Morgan Marine Insurance
Curtis Marine Insurance
Peter Lole Insurance Brokers
Motor 39 40
Bikes and Motorcycles Classic Cars
Peter James Insurance
Lifestyle Insurance Brokers
Robert J Goodson
Crendon Insurance Brokers
M R Ratcliffe Insurance Brokers
Grove & Dean
Hard to place Professional Indemnity
Crosby Insurance Brokers
Chalkwell Insurance Services
Higos Insurance Services
Reid Hamilton Insurance Brokers
Cassey Miller James
BLS Insurance Services
Tanning Salons/ Beauty
Lucas Fettes & Partners
Heating, Ventilation and Air Companies
Darwin Clayton Evolutionary insurance
Christopher Trigg Insurance Brokers
Activities and travel
Ravenhall Risk Solutions
Paintball, Laser Tag
Romero Sports & Leisure
Activity business & instructor
John Ansell & Partners Ltd Insurance Brokers
Magnet Insurance Services
Birnbeck Insurance Services
Unity Insurance Services
Mead Sport and Leisure
Endsleigh Insurance Services
GM Imber & Sons
Offshore/Onshore United Insurance Brokers
Oil & gas
Science & tech 46
Product liability Anthony Jones Insurance Brokers
Waveney Insurance Broker
BikeSure Classic Line Insurance
niche – and success within it. The following agencies and brokers hail from all around the UK and provide specialised services to insure their clients’ every need. From brokers who have an aptitude for insuring trees and shrubs, to savvy craft brewery experts and those that have a knack for arranging policies for Morris dancing troupes, this selection showcases that being “masters” in their respective markets has positioned these agencies to get ahead in the vast insurance community.
Biotech and Life Sciences Technology
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15/07/2016 2:17:03 AM
COVER STORY: THE SPECIALISTS AGRIBUSINESS
ARTS & ANTIQUES ARTS AND ANTIQUES DEALERS
BNF INSURANCE SERVICES Clacton On Sea
MEADONS INSURANCE BROKERS Shropshire
Over fifty years after his death, two oil paintings by Winston Churchill, worth a combined £800,000, recently surfaced and will be sold at auction this month at an Essexbased auction house. Located in Essex, BNF Insurance Services offers tailored insurance solutions for art and antiques dealers, including galleries, museums, antique centres and even private homes where the art may be stored, especially important to whom ever becomes the proud owner of a Churchill original.
COMMERCIAL & AGRICULTURAL INSURANCE BROKERS Arbroath
For over half a century Meadons Insurance Brokers has specialised in the agriculture sector. Located in Shropshire, a county relatively dominated by agriculture, Meadons has leveraged the 100+ years of experience their agriculture team has to service the surrounding community. In addition, Meadons provides cover for agricultural vehicles, agricultural contracting and diversification trades.
Over 70% of Scotland’s land area was used for agricultural purposes in 2015, equalling 5.58 million hectares. It’s no surprise, then, that Commercial & Agricultural Insurance Brokers, located in Arbroath and Forfar, make a good living servicing the agricultural community of Scotland and around the UK. VALUABLE COLLECTIONS
CHELSEA INSURANCE BROKERS
ASPREY HARRIS INSURANCE CONSULTANTS
Known for its countryside, natural features and historic homes, Buckinghamshire’s lush landscape takes time and dedication. Tree surgeons devote their time to caring for trees and shrubs, and are often exposed to heights and natural elements. Asprey Harris Insurance Consultants, located in Chesham, Buckinghamshire, are specialists in arranging policies for tree surgeons to cover the specific risks associated with the maintenance and wellness of trees. No branch offices.
Apparently, money can grow on trees! Black Walnuts can be worth over £15,000 and there is a Victoria Plane sitting in Berkely Square in Mayfair, with a 6ft wide trunk valued at an astounding £750,000 – let’s hope it’s insured! Since 1988, Lycetts has offered specialised insurance services to the arboriculture and forestry industries, catering to tree surgeons, forestry contractors, landscapers and more.
If you are a stamp collector you may be in luck! In the last 12 months, 250 of the most valuable British stamps returned 1.2%, beating the FTSE 100. In 2015, an 1841 penny red stamp, issued during Queen Victoria’s reign, was valued at £25,000. Chelsea Insurance Brokers are specialists in providing insurance solutions for fantastic philatelic findings like these, as well as other collectibles.
Going once, going twice … this month at Christie’s London, Peter Paul Rubens’s “Lot and his Daughters” oil painting sold for £49,506,648 after a 14 minute bid war.
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15/07/2016 2:17:11 AM
UNMANNED AERIAL VEHICLES
JOHN HEATH INSURANCE BROKERS Cheshire
MUSEUMS AND GALLERIES
BRYAN JAMES & CO Hayes
It’s not just old masters anymore. Familyowned Bryan James & Co specialise in insurance for museums, galleries and collections, no matter the medium. “The way museums have gone these days we’re not just covering galleries with big fancy paintings. What’s happened these days is you are getting many smaller exhibitions. For instance, we had a Lego exhibition recently,” said Andy Wilcockson, commercial account manager.
PRIVATE AND CORPORATE COLLECTIONS
JAMES MCCRONE INSURANCE BROKERS London
James McCrone offers specialist insurance products for the fine art industry. From private art and jewellery collections to corporate art collections; James McCrone can provide bespoke policies with no limit to the value of the collections.
Drones are more popular than ever and the risk they pose steadily increases as their abilities develop and pilots take greater risks – especially when considering events such as the one in April when a drone crashed into a British Airways jet over Heathrow. Based in Cheshire since 1975, John Heath Insurance Brokers offers specialised insurance coverage for UAV (unmanned aerial vehicles), which have become increasingly relevant for businesses as they incorporate use of drones in their
multi-site/multi-national operations. Thanks to strong working relationships with the CAA, Euro-USC and other UAV industry contacts, John Heath is able to offer expert advice on the insurance needs for UAVs worldwide.
Currently, around 2,500 to 3,000 enterprises in the UK have permission granted by the Civil Aviation Authority (CAA) to operate drones within the country.
TRINITY INSURANCE BROKERS
Founders of the “Fly Smart” campaign to promote general safety awareness in general aviation through posters distributed to over 400 flying clubs around the country, Hayward Aviation has been an aviation industry specialist since 1992. Established initially to meet the insurance needs of private and corporate aviation and helicopter owners/operators in the UK, the company has now expanded to insure the sector internationally.
Trinity is a specialist independent insurance broker for aviation businesses, located within 100 meters of the Lloyd’s building, granting them literal proximity to the market’s bespoke programs. The company is run and managed by James Joannou, managing director, who has held senior management positions at giant brokerages Marsh and JLT and has over 25 years of experience specifically in aviation insurance.
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15/07/2016 2:17:18 AM
COVER STORY: THE SPECIALISTS BUSINESS RISKS
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UK CREDIT INSURANCE SPECIALISTS (UK CREDIT) Buckinghamshire
During a 2014 BBC radio interview, entrepreneur and original panelist from BBC Two’s Dragon’s Den, Peter Jones recounted the worst business decision he ever made – not taking out credit insurance: “Within 12 months of that decision at 28, I lost everything. I had seven of my largest accounts go bust...I lost the business.” It’s safe to say that Jones must have wished then that he consulted with a credit insurance specialist, such as UK Credit. For over 25 years, UK Credit has insured businesses of various sectors and sizes from the risk of bad debts and unbalanced checks, including those who export and hence face bigger risk of not being paid.
CORNERSTONE INSURANCE Leicester
Cornerstone Insurance provides construction insurance solutions to businesses in Leicester, Warwickshire and Nottingham, where 7.8% of the economy was in construction in 2012 according to Global MetroMonitor. Cornerstone’s construction solutions cover various tradesmen such as welders, scaffolders, roofing and piling contractors, steel fabricators, and tunneling engineers while high-risk insurance addresses the needs of workers engaged in hazardous manufacturing and installing of infrastructure. CONSTRUCTION
TMD INSURANCE GROUP Enfield
When you have people up ladders and on scaffolding, expensive risk is never going to be far away; in fact, of the 217 fatal accidents in the construction sector recorded by The Health and Safety Executive over the past five years, 97 were due to falls from height. As a large independent North London broker with over 40 years’ experience in construction insurance, TMD makes such risks integral to its cover, recognising that standard insurance policies are often inadequate for tradesmen and contractors; apart from damage to works and materials on site, liabilities may arise from injury of employees, sub-contractors, and the public. In addition to working with niche insurers, TMD works with various consultants such as the Institution of Civil Engineers and Contract Plant-Hire Association.
Brokers are challenged daily to orchestrate their clients’ numerous insurance requirements and on large commercial transactions, their role is critical in keeping everything moving forward. When legal indemnity insurance is required as part of that, the complexities of obtaining cover can sometimes cause unwelcome delays. It doesn’t have to be like that though. Countrywide Legal Indemnities’ reputation is built on a service philosophy that is second to none, and they are committed to providing you with fast, competitive quotes. With a dedicated underwriting team established specifically to assist brokers with their enquiries, Countrywide are ideally placed to help you when you’re after legal indemnity insurance for a client. Why use Countrywide? Direct access to specialist underwriters with many years’ legal indemnity experience in the large risks broker market A prompt and professional response every time Regular reviews of your account to make sure your needs are being met Bespoke services provided such as supporting you at client meetings as necessary, to discuss the complexities of legal indemnity cover The next time you need legal indemnity insurance, why not get in touch with Countrywide’s Broker Underwriting team? Call them on 01603 617617 or email firstname.lastname@example.org.
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15/07/2016 2:17:25 AM
COMMERCIAL PROPERTY PROPERTY OWNERS
AQUILLA INSURANCE BROKERS London
Managing Director Julian Mungo established Aquilla Insurance Brokers in 2009 after 30 years of property owner’s insurance experience. Prior to setting up Aquilla, Mungo was director of Layton Blackham’s property division, where under his leadership, the division experienced its best year ever in 2008. Today, Aquilla specialises in serving the property owners market, including real estate owners, developers and investors across the UK.
SENNOCKE INTERNATIONAL INSURANCE SERVICES Sevenoaks
Founded in 1990, Sennocke became involved in the construction side of the business seven years later and has since built a team specialising in build-zone structural warranty and constructionrelated risks. “There are very few players in this sector. It is a niche market product, which is something we like to specialise in because then we can add value. We’ve built relationships over many years and we’ve got a good reputation for service and everything else,” says Paul Kempton, managing director. Specialists in the self and custom build markets, Sennocke is partnered with National House Building Council to provide warranty and cover. “People are a lot better off coming to us because we know the market and we’ve got a choice of insurers,” says Kempton.
Year founded: 1990 Number of employees: 42 Location of headquarters: Sevenoaks, Kent Number of offices: 1
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15/07/2016 2:17:30 AM
COVER STORY: THE SPECIALISTS CYBER CYBER
At the forefront of cyber insurance, CEO Chris Cotterell first established SafeOnline in 1998 to service the insurance needs of the digital and e-commerce industries. “Back in 1998, I was insuring banks for computer crime. I recognised that it was not just the banks that were going to be exposed to loss, but anyone with connectivity to a computer network. We were ahead of the field in terms of insuring such risk, but now find ourselves well ahead of any competition in this space,” said Cotterell. Through the years, SafeOnline has grown to insure all forms of cyber risk worldwide, from single employee businesses to multibillion revenue firms. Through the years, SafeOnline has been successful in turning tech experts into insurance brokers, making its team very well versed in this complex industry.
Year founded: 2000 Number of employees: 29 Location of headquarters: 80, Leadenhall Street, London EC3A 3DH. UK Number of offices: 1 CYBER
CYBERINSURANCE. CO.UK London
Cyber crime accounted for 53% of all UK criminal activity in 2015, according to a recent report by Trend Micro, establishing the threat and severity of this digital offender. Aiming to provide cyber insurance as easily and quickly as possible, Cyber Insurance focuses on providing resources and raising awareness about cyber risks. It centres its efforts on the need to address businesses according to the size of their operations, especially considering how small businesses are at greater risk of experiencing cyber crime and yet are also the ones un(der) insured,
ELMORE INSURANCE BROKERS London
MACBETH INSURANCE BROKERS Reading
About a decade ago, Macbeth Insurance Brokers noticed the emerging need for cyber cover and now specialise in providing cyber and privacy data breach insurance to businesses around the UK. “We’ve seen the covers evolve over the last 10 years with more players coming into the market, premiums going down because there’s more competition and the fact that companies are now a lot more aware of cyber risk than they were 10 years ago,” says Tony Gibbs, director. Despite quite a few cyber products in the market today, they do not all cover the same risks. Macbeth works with various providers such as Hiscox and CNA, to seek the best coverage for their clients who hold sensitive data or have an online presence. “The biggest challenge is sometimes making sure you get the cover that matches your client’s needs. We have to make sure the policy is tailored to meet the client’s needs,” says Gibbs.
Year founded: 1992 Number of employees: 17
Simon Gilbert, managing director and founder of Elmore Insurance Brokers, recognized the need for cyber coverage as data hacks increased internationally. “I began writing the business plan to establish Elmore in 2012 as the wave of mega breaches in the US were being broadcast around the world. I knew businesses were becoming more aware of the emerging threats and new risks such as cyber. Similar cyber events were happening in the UK but not being reported and the changing regulatory environment such as EU GDPR I felt it was only a matter of time before we saw the same headlines in the UK. That’s why we wanted to focus on cyber insurance as our specialism; cyber security has such broad ranging consequences for all businesses.” Intellectual property, crime, system failure and privacy liability all fall under Elmore’s cyber insurance header. In addition, businesses are able to explore the enterprise risks they may be exposed to, such as business interruption and reputation harm.
Funfact: Elmore’s name comes from Gilbert’s relative John Elmore, a Piccadilly Circus horse trader, whose horse Lottery won the first UK Grand National Horse Race at Aintree Race Course, Liverpool in 1839. “The race represents skill, determination and commitment, the core founding principles of Elmore Insurance Brokers and how we work with our clients,” says Gilbert.
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15/07/2016 2:17:40 AM
ENTERTAINMENT CREATIVE INDUSTRIES
FIELDING INSURANCE BROKERS Sheffield
LUKER ROWE Amersham
Launched in 2014, Fielding Insurance Brokers is owned by Daniel Fielding, a chartered broker who has experience being both client and underwriter in his 15 years in corporate insurance. The company offers creative industries insurance “from
your vehicle to violin,” to address the needs of businesses such as events/festival organisers, media, arts/music/theatre producers, and marketing companies, as well as more interesting fields. “Artists – for example, body art linked to IT with 3D projectors. It can be quite weird and varied,” says Fielding. Recently, the company sold to Aon, giving them the advantage of having a large company behind them while servicing the community as a local broker. Fielding has also recently sponsored registration at The BIG Sleepout, an event organised to raise funds and awareness for young runaways.
What if we lived in an era when silent films were the norm? Well, thanks to industries such as audio visual, we are able to enjoy the collaboration of music and sound with sight. Luker Rowe focuses on insuring the audiovisual industry. “We got involved in this area because 25 years ago we got a phone call from the Yellow Pages from someone who wanted this cover. At the time we had no experience in it but because we had this request we did our homework and got some suitable cover put together,” says Peter Tilsed, director. Today the brokerage caters to event and production companies, and AV equipment, lighting hirers and installers and more. ARENA/EVENTS
IMS ARENA INSURANCE London
The 2016 Olympics are just around the corner, which means dozens of arenas in all shapes, sizes and purposes, and IMS Arena Insurance, a Londonbased specialist broker in global arena insurance, can cover them all. As a specialist in the niche, IMS understands the risks associated with all types of arenas including classic arenas, football arenas and swimming arenas. Policies are even offered for various events such as festivals, award ceremonies and nautical events, to name a few, which can include event/weather cancellation, as well as equipment and liability policies.
LARK (GROUP) LIMITED London
Understanding the strong bond between a musician and their musical instrument, Lark offers a range of different covers to protect any musician’s major or minor setback. First established as Roger Lark
& Sons in 1948, Lark (Group) Limited (rebranded in 2012) has spent decades evolving and expanding in the UK insurance market. Lark insures various musical instrument needs, whether it is personal or professional or for one instrument or a whole orchestra. Involved in the UK music industry, Lark has built relationships with the London Sinfonietta and Royal College of music, and also attends and sponsors music industry events.
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15/07/2016 2:17:48 AM
COVER STORY: THE SPECIALISTS ENVIRONMENTAL RENEWABLE ENERGY
NORTHERN ALLIANCE Wakefield
NSURE RENEWABLE ENERGY INSURANCE Worthing
The renewable energy sector surged last year, with record investments and implementation in the wind, solar and hydropower industries, said the REN21 global status report. Renewable energy insurance specialists, Northern Alliance have been insuring the sector since 2008 and undoubtedly will be busy as the green energy industry grows internationally.
A renewable energy trade specialist for 15 years, NSure provides wind, sun, bio/ waste and water businesses ease of mind when operating in these challenging sectors. NSure’s specialist account managers David Elliot-Rose and Dave Cole have over 50 years of experience between them.
RECYCLING AND WASTE MANAGEMENT
HALE KAVANAGH INSURANCE BROKERS
Located in the heart of one of UK’s largest insurance markets, Hale Kavanagh Insurance Brokers has tripled in size since forming over six years ago in 2009. In addition to various insurance offerings for UK businesses, Hale Kavanagh offers a special line designed particularly for the recycling and waste management industry. Born from a need in the market coupled with the company’s strong relationship with underwriters who have an appetite for this type of cover, Hale Kavanagh now offers insurance coverage to a wide variety of waste management businesses including recycling centres, landfill operations, skip hirers and more. A challenging sector due to the trade’s volatility and high loss ratio, insurer breach can at times be an issue, said Julian Hale, managing director. Despite the challenge, Hale Kavanagh works to provide protection to each client with a recycling insurance policy tailored to their every need.
CLARK THOMSON ASBESTOS REMOVAL AND SURVEYING
MILES SMITH INSURANCE SOLUTIONS London
As many as 5,000 workers of all types per year, and 20 tradesmen per week, die due to asbestos exposure, according to the Health and Safety Executive. Such is the extent of the asbestos legacy. The specialty policies offered by Miles Smith are therefore much in need. Working with asbestos requires training and licensing, and it is these experts who need protection in the form of asbestos removal & surveying insurance – as offered by Miles Smith. With nearly 30 years of experience in this industry, the company is the appointed broker of the Asbestos Removal Contractors Association.
As Scotland’s largest independent insurance broker, Clark Thomson has over 200 staff, 9 offices, and more than 50 years of experience. Part of its specialist line is renewable energy insurance – wind energy and marine renewables. The wind energy insurance for wind turbines developers has covers for transit, peril, all risk, and liability. Meanwhile, its marine renewables insurance covers all phases of development, from design and construction to operation and decommission. Lending to the company’s expertise, Clark Thompson recently took part at the All Energy Conference 2016, UK’s largest renewable energy exhibition and conference.
In 2015, the UK experienced a 25% rise in renewable energy investments.
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FARM & ANIMAL EQUINE
Co-Founder and Director Penny Reid originally trained as a riding instructor before eventually turning to horse insurance. She worked her way up the organisation from sales to operations to now running the business with Kiren Dennehy. Overall, the company has over 20 years’ experience with horse insurance, including coverage for death, theft and straying, veterinary fees, third party liability and many more.
SHEARWATER INSURANCE SERVICES Waltham Cross
Horsing around can lead to some complicated insurance claims. Shearwater Insurance Services, a family-run business since 1992, focuses on insuring the equestrian industry. With over 100 years of experience between the members of its equestrian team, each member owns horses and understands the relationship between an owner and their horse. This year, Shearwater was chosen by British Dressage (BD) to be its first ever ‘official
FARRIERS AND BLACKSMITHS
partner’, allowing Shearwater to be the official supplier of BD member insurance and sponsor Dressage Young Horse Championships and more.
Did you know? There are an estimated 446,000 horse-owning households in the UK – according to The British Equestrian Trade Association’s National Equestrian Survey 2015.
EASTLAKE AND BEACHELL
CIRCLE INSURANCE SERVICES
Farriers work on treating and shoeing the feet of horses and other similar animals, which may require knowledge of blacksmithing on top of veterinary-related skills. That’s a lot of heat, metal and flying hooves. Thus, in 1990, David Eastlake and Jeremy Beachell developed a scheme for farriers and blacksmiths.
Founded in 1991 by Anthony Norcott, an industry veteran with over 50 years in the business, Circle Insurance Services offers a specialised scheme for saddlers. The appointed broker to the Society of Master Saddlers, Circle Insurance Services offers cover for manufacturers, repairers and retailers in the saddler industry.
SHIRE INSURANCE SERVICES Tamworth
As one practising vet puts it, “What insurance does is give the vet more options”, and pet owners are willing to pay premiums to make sure such options are available to their beloved dogs, cats, assorted rodents and even reptiles. Similarly, vets themselves also need insurance to protect their practices and equipment. Shire Insurance director Keith Dickinson has been working in this industry since 1981, and in 2009, acquired Veterinary Insurance Agency in order to expand the company’s services.
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15/07/2016 2:18:01 AM
COVER STORY: THE SPECIALISTS FARM & ANIMAL
HEALTHCARE & MEDICAL
FARMERS & MERCANTILE INSURANCE BROKERS Northamptonshire
Director and Founder Nigel Wellings studied at Royal Agricultural College and worked in farm management before joining NFU Mutual Group. Eventually realising the need for a brokerage specialised in agriculture, he set up Farmers & Mercantile in 1996. With a team of brokers who know about practical farming and emphasize the need for yearly on-farm reviews, the company built its clientele by word-of-mouth leading to operations in Shropshire in 2006, and two more in the agricultural communities of York and Ayr.
BALENS SPECIALIST INSURANCE BROKERS Malvern
MILLER COMMERCIAL BROKERS
Formed in 2003 by H & L Balen to focus on the insurance business, Balens caters specifically to health & wellness and beauty professionals. The business is located in Malvern, which explains its choice of specialisation, as the place is known as a spa town. The company emphasizes
Staffordshire HEARING AID DISPENSERS
Based in Staffordshire Moorlands allows Miller Commercial Brokers to focus on the needs of the rural communities in the area, which lends to the companyâ€™s various specialised insurance products, such as the companyâ€™s livestock insurance for all types of livestock. Varying products cover needs including working dogs cover, sheep worrying, full mortality for breeding animals and livestock class cover designed for unusual types of livestock such as deer and alpacas.
NMJ INSURANCE BROKERS Halifax
Last month, the world was introduced to the first Internet connected hearing aid. The technological advances in audiology open the door to more liabilities and defects down the road. For the past 15 years, NMJ has offered specialised insurance for hearing aid dispensers,
the need for training its staff by having health professionals conduct sessions on their day-to-day issues, and having the staff attend seminars on legal issues concerning certain medical practices. Policies are offered for occupational therapists, psychotherapists, osteopaths and chiropractors, to name a few. Following the footsteps of his grandfather and his mother, managing director David Balen joined the industry in 1970 and became a proprietor in 1981. Apart from running the business, Balen is also a trained healer involved in various organisations in this field.
specifically professional fitting and treatment liability. Arranged by Barry Fenton Insurance, which NMJ acquired in 2001, clients range from audiologists and hearing therapists to wax management consultants and ear defender providers.
Fun fact: The use of ear trumpets for the partially deaf dates back to the 17th century and Fredrick C. Rein established the first commercial production of the product in 1800 in London.
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15/07/2016 2:18:07 AM
SURGEONS AND CLINICS
PARAGON INTERNATIONAL INSURANCE BROKERS London
In 2009, Ian Redbourn was asked to join Paragon International Insurance Brokers, a boutique insurance broker celebrating 20 years in the business this year. Leveraging the experience he gained in the healthcare teams at Willis and Aon, Redbourn built Paragonâ€™s healthcare insurance practice from the ground up. Beginning as an alternative insurance solution to mutuals insurance-business-ad.pdf
for plastic surgeons in the UK, Paragon created a comprehensive product for plastic surgeons that eventually branched out to other medical surgeons including spinal surgeons, orthopaedic surgeons, eye surgeons and more. From their foundation in surgeon professional liability, Paragon has expanded to provide insurance products to medical establishments; everything from small to large hospital groups in the UK and internationally. In addition to medical malpractice insurance for surgeons, Paragon offers ClinicSelect, a scheme for small clinics, care providers and treatment centres; FertilitySelect, an exclusive product for fertility clinics; and TrialSelect, a clinical trials product in which Paragon possesses binding authority.
HELPING YOU BUILD A SOLID CONSTRUCTION BOOK
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15/07/2016 2:18:14 AM
COVER STORY: THE SPECIALISTS HEALTHCARE & MEDICAL
THERAPISTS AND REFLEXOLOGISTS
ALAN BOSWELL GROUP Norwich
After Alan Boswell Group recognized the opportunity in insuring complementary therapists, they built a practice that now insures over 200 different complementary therapies, from reflexology and massage to hypnotherapy and yoga. With cover for public liability and products liability, extensions are also available for liable and slander, breach of confidentiality and more. Involved within the industry, Alan
Boswell Group is the appointed broker for The Association of Reflexologists and is a member of the International Federation of Aromatherapists. “We are the preferred broker for some of the main Associations and Federations and yet, despite our breadth, we still receive requests for new therapies. For example we recently received a request to insure students who were being taught acupuncture for expectant mothers,” says Lee Boswell.
Year founded: 1982 Number of employees: 190 in the insurance division Location of headquarters: Norwich Number of offices: 7
W DENIS GROUP London
Independent insurance broker W Denis began in 1963 by Hubert Allen Thew and now offers insurance services not just in the UK, but also throughout the Americas, Europe, Africa, the Far East and Australia. For the evolving British hospitality industry, W Denis’ expert brokers in the sector understand the intricacies of serving the industry that is “driving sustainability and advancing food technology.” LATE NIGHT LEISURE
NDML INSURANCE SPECIALISTS Leeds
PK PARTNERSHIP Surrey
According to the Pharmaceutical Services Negotiating Committee, about 95% of the population lives within 20 minutes of a pharmacy, making them a vital staple in all communities. Founded in 1979, PK Partnership offers an insurance product designed just for pharmacies called PharmacyProtectTM, which provides comprehensive coverage to pharmacy owners and operators in the UK.
A night out on the town can quickly turn into an insurance mishap when mixed libations transition into mixed disagreements. NDML, late night leisure insurance specialists, offers comprehensive policies to nightclubs, late bars, gentlemen’s clubs, amusement venues and more. Operating in these sectors since 1998, NDML is the appointed broker to the British Hospitality Association and the Restaurant Association, and have been a Best Bar None partner since 2009, allowing them to understand the specific risks this industry faces.
RESTAURANTS AND PUBS
MACBETH SCOTT & CO. Cumbria
SEAWAY INSURANCE CONSULTANTS Torquay
Touring and perhaps having the odd pint in the beautiful and often historic hostelries of areas like The Lake District sounds to us like one of those ‘tough job but someone’s got to do it’ type gigs for the brokers at Macbeth Scott. Servicing the Cumbria area since 1972, Macbeth Scott & Co offers restaurant and pub insurance products in conjunction with Liverpool Victoria. The company’s “Cover for Covers” restaurant line and “Inn Sure” pub insurance offer sector-specific policies.
From B&Bs to takeaway eateries, the insurance consultants at Seaway can provide a hospitality business with the necessary insurance coverage to cover all types of risks. Whether you need insurance protection as an employer or need to protect the risks of the public, hotels, cafes, restaurants, bed and breakfasts, holiday venues and takeaway business can seek it all the Seaway’s “one stop insurance services centre.”
For the last 30 years, Wilby has provided specialised insurance products to businesses across UK. According to the Campaign for Real Ale, there are now over 1,400 breweries scattered around the nation, and Wilby’s specialised brewery insurance product caters to all types of operations, including shops, farmers markets, fairs and festivals. With UK’s boom in breweries over the last few years, 204 opening just within the last year, Wilby’s brewery insurance line will certainly come in handy. MASONIC GROUPS
JELF GROUP South Gloucestershire
BOLLINGTON INSURANCE BROKERS Cheshire
When one of Bollington’s staff members, who was a craft brewer himself, realized that certain insurance covers were not readily available on standard commercial policies, Bollington worked to create a specialist scheme to cover those risks. Working
with the Society of Independent Brewers Association (SIBA), Bollington Insurance Brokers offers an insurance product specially tailored for craft brewers, that include cover for seasonal increase cover of stock, loss of licence, goods in transit and more. A challenge to working with the niche – convincing smaller brewers (startups or hobbyists) that they need insurance coverage said Mark Bowers at Bollington. With over 40 years of commercial insurance experience, Bollington is well placed to serve the microbrewery industry.
Insuring the world’s first and largest fraternal organisation must not be as easy as placing a simple insurance policy. Jelf Group, a global insurance broker founded in 1989, has built a specialist understanding of the specific risks faced by Masonic groups. Jelf’s range of products can cover individual masonic groups with just a few members to large Masonic temples and halls, such as The United Grand Lodge of England, which has over 2,000 members meeting in 6,800 lodges around the UK. Jelf’s products include regalia cover, public and products liability, employer’s liability, money cover and trustees indemnity cover.
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15/07/2016 2:18:25 AM
COVER STORY: THE SPECIALISTS MARINE sponsored article
THOMAS MILLER SPECIALTY – A FLEXIBLE MGA PLATFORM Thomas Miller Specialty offers leading global insurance and related risk management services across a number of sectors, including marine, aerospace, cyber and kidnap and ransom. Created when Thomas Miller acquired the Osprey Underwriting Agency in 2015. This MGA draws on the strengths of both organisations and provides clients a flexible and proven platform from which to access a growing range of specialty risks insurance products. Complementary services Thomas Miller Specialty brings a range of products including: Osprey Marine insurance for smaller craft, marine contractors, property, shipyards and terminals Osprey Aerospace insurance, space launch and commissioning insurance plus orbit life cover Cyber Risk insurance, insuring lost income (and digital information) from a malicious cyber event, IT system failure or computer crime. Third party coverage for data and privacy liability in respect of both customers and employees. A risk management partnership with Lloyd’s Register. Kidnap and Ransom insurance, covering a range of security and people risks around the world Global reach All insurance products provided by Thomas Miller Specialty benefit from Thomas Miller’s international office and support network, providing bespoke underwriting, claims and risk management services to insurance brokers and their customers on a global basis All of our specialty risks are managed for you by Thomas Miller on behalf of Lloyd’s of London and select company markets. For more information contact us on +44 (0) 207 283 1227 or email specialty@ thomasmiller.com thomasmillerspecialty.com
MORGAN MARINE INSURANCE
CURTIS MARINE INSURANCE
By 2020, UK’s marine economy is expected to grow into a £25 billion industry – double the size of the sector today. However, operating at sea poses unique risks. Professionals such as the marine insurance specialists at Morgan Marine Insurance can arrange bespoke policies to cover the exposures businesses may face on the open water.
Members of the British Marine Federation, Curtis Marine has served as an independent marine insurance specialist since 1982. With the marine industry contributing over £3.2 billion to the UK economy annually, Curtis Marine’s offerings for commercial vessels, charter boats, marine trade operations and more, helps keep this valuable sector afloat.
PETER LOLE INSURANCE BROKERS Wooburn Green
Founded by Peter Lole in 1979, Peter Lole Insurance Brokers is now managed by his son, Simon Lole. Today, Peter Lole Insurance Brokers specialises in providing insurance for the logistics sector, focused on protecting goods throughout international and domestic supply chain. As an associate member of the British International Freight
Association and part of their Legal and Insurance Policy Group, Peter Lole works to provide clients with coverage that is in accordance with their Terms of Business or Purchase terms. Whether a business requires a single shipment cover or an annual marine cargo policy, Peter Lole offers an “all risk” insurance policy to minimise the risks associated with the marine and logistics industry.
British Marine reported that in 2014, over 3.5 million UK adults participated in a boating or water sports activity, with over 1 million boats/ water crafts owned by UK households.
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15/07/2016 2:18:32 AM
MOTOR BIKES AND MOTORCYCLES
BIKESURE INSURANCE SERVICES Norfolk
The UK’s Ride to Work Week encourages commuters to turn to two motorised wheels not four to reduce traffic congestion and save resources. Luckily, Bikesure provides clients access to over 40 different motorbike and moped insurance schemes for various types of motorbikes. At the forefront of the industry, BikeSure stays up-to-date with the latest trends in the motorbike industry so they can offer specialised schemes for any road legal bike that comes their way, whether it be a super bike, quad, moped or something else!
“Classic car owners care deeply about their vehicles and want to ensure they get the right cover at a price that reflects the care and attention they lavish on their motors, and that they are not driving on a daily basis as everyday cars,” says Gerry Bucke, general manager of Adrian Flux, adding the brokerage can provide cover for “everything from an early Ford Escort to a Ferrari Testarossa”. And this is a big-money business – the hammer fell on a 1962 Ferrari 250 GTO at Bonhams’ Quail Lodge auction recently at the dollar equivalent of £22.8m. Adrian Flux’s founder was actually a disabled driver, and finding it difficult to obtain competitively priced insurance with the cover he required, so decided in 1973 to set up a brokerage himself. But the company quickly expanded to offer cover for other specific motoring groups.
PETER JAMES INSURANCE Oldbury
Did you know? The most expensive car sold at auction in the UK was a 1954 Mercedes-Benz W196R race car sold in 2013 for £19,601,500
As Peter Gabriel sings, “All of those cars were once a dream in somebody’s head.” Some of the world’s most coveted vehicles originated in the UK, and today, thousands of motor heads around the country take the wheel in their prized cars. With over 30 years of experience in the market, Peter James Insurance caters to classic, vintage and specialist motor enthusiasts with their tailored products, and they currently have one of the largest specialist vehicle insurance accounts in Europe. Clubs and companies such as the Nottingham Sports Car Club or the marque-specific Lancia Motor Club UK, can arrange cover for members through Peter James.
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15/07/2016 2:18:38 AM
COVER STORY: THE SPECIALISTS MOTOR
CLASSIC LINE INSURANCE Hinckley
Even if you drive “La Marquise,” at present the world’s oldest running automobile built in 1884, Classic Line Insurance can cover it. From 21st century import sports cars to “veteran” vehicles that date back to the early 1900s, unusual vehicle owners can cruise knowing they have proper insurance coverage.
M R RATCLIFFE INSURANCE BROKERS Cheltenham SPECIALIST CARS
MSM INSURANCE Bishop’s Stortford
“We do classic cars, we do kit cars, replica cars. We do a lot of AC Cobra replicas. We do a lot of Lotus 7 replicas. We run a specialist scheme for trials and enduro motorcycles, where we include competition cover,” says Dave Spragg at MSM Insurance, a familyrun insurance broker. It specializes in understanding the unique factors associated with owning a specialist car, and offers discounts for limited mileage and if the owner is a member of a recognised motor club.
Year founded: 1988 Number of employees: 6
Oil prices are predicted to remain low through the reminder of the year, according to a recent FTA Logistics Report,
which is great news for the logistics and transport industry. For 40 years, M R Ratcliffe Insurance Brokers has served as a specialist broker focused on the transport industry. Despite recent political shuffle, Ratcliffe understands the risks and regulations surrounding the haulage industry and how to place proper insurance to cover those exposures, no matter the trade risk, size of the business or type of vehicle used.
ROBERT J LIFESTYLE INSURANCE BROKERS GOODSON Stockport
The UK has historically been a haven for the motor trade industry, known for our premium and sports car marques such as Rolls-Royce and Aston Martin. For over a decade, Lifestyle Insurance Brokers has focused solely on servicing the insurance needs of UK’s auto industry, from classic car restorers to automotive detailers.
Located in Peterborough, a major stop along the East Coast Main Line, Robert J Goodson has 45 years of experience as a specialist broker for transport and distribution businesses. The company provides covers for commercial vehicles, motor fleets, goods in transit, as well as property and engineering inspection.
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OIL & GAS
GIBBS DENLEY GROUP Cambridge
More than 270 nationalities live in London and over 300 different languages are spoken, so it is no surprise that there are over 5,000 language schools in the UK. As English UK corporate members, Gibbs Denley specialises in langauge schools and students through its Schoolsguard product.
Did you know? After English, the top five most common spoken languages in the UK are Polish, Punjabi, Urdu, Bengali and Gujarati. CHARITY
ENDSLEIGH INSURANCE SERVICES Gloucestershire
There are over 180,000 reported charities in England and Wales; Endsleigh Insurance Services has over 30 years of experience offering tailored products for every type of charity, from small voluntary groups to large national charities. NON-PROFITS
UNITY INSURANCE SERVICES West Sussex
A charity-owned insurance broker, Unity Insurance Services is dedicated to serving UK’s charity and non-profit industry. For over 80 years, the agency has served the gamut of UK-based non-profit organisations, from charities and community enterprises to religious groups and outdoor educational centres. Offering a full-range of policies, Unity has even provided cover for x-ray machines, zebras, formula one racing cars and bonfire nights! Due to the company’s deep roots in the non-profit community, they have a unique perspective on the insurance needs of non-profits and volunteer groups. Furthering their dedication to the sector, Unity donates 100% of its profits to charity.
CITYNET INSURANCE BROKERS London
After discovering an opportunity in the market a couple of years ago, Citynet Insurance Brokers, a wholesale brokerage, put together a new policy wording and made a few deals with Lloyd’s syndicates to develop their practice in energy and offshore insurance. “The energy and offshore industry in the UK at the moment is not in good health with the price of oil being so low. We’ve still
managed to maintain our growth but by diversifying and looking at different energy sources such as wind farms, tidal power, solar energy and all of these things. We’re also doing a lot of biomass now – the burning of waste food and so on. Anything that can produce power that goes into the energy grid,” says Tim Hicks, director. Working with brokers around the UK and Ireland, Citynet offers their branded products to service their common interest, the clients. “As a wholesale broker we have a common interest with other brokers and that’s to the client. So brokers can come to us – especially if they don’t do this sort of business very often – and we can guide them through the pitfalls that they don’t come across regularly,” says Hicks.
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15/07/2016 2:18:49 AM
COVER STORY: THE SPECIALISTS OIL & GAS
WAVENEY INSURANCE BROKERS Norwich / Suffolk
With the global shift towards renewable energy, it’s no surprise that Waveney Insurance Brokers recently relocated their energy division to OrbisEnergy in Lowestoft, where several renewable energy firms are located, placing them in the heart of the offshore renewables business network. A specialist in placing insurance for energy-related businesses including oil & gas, diving, and wind and tidal operations, Waveney provides cover for the high-risk activities associated with the industry, from site exploration to the construction of structures. Under their offshore products umbrella, Waveney offers schemes for companies involved in the hydrocarbon and renewable energy sectors, as well as a special facility for members of the International Association of Geophysical Contractors. OFFSHORE/ONSHORE
UNITED INSURANCE BROKERS
CRENDON INSURANCE BROKERS
differently shaped tablets and pills, for example. Crendon Insurance offers 3D printing insurance coupled with intellectual property insurance.
According to research by AT Kearney, the 3D printing industry is expected to reach $13bn in 2020, encroaching not only on manufacturing of traditional tools and parts, but even the likes of medicine –
3D printer’s roots go back to the 1980s when Chuck Hull invented a process called “stereolithography,” which used UV lasers to solidify photopolymer to created 3D parts layer by layer.
Independent insurance broker, United Insurance Brokers (UIB) offers their insurance solutions on a global level – with the over 20 nationalities working in their headquarters in London, UIB is proud of their “exceptional culture sensitive team” that services over 70 nations. One of their areas of expertise is their energy division, which provides insurance services in all areas of energy units, including upstream and downstream energy activities. Including petrochemical plants, refineries, mobile drilling unit and more, UIB offers risk management and insurance advice. With London being one of the UK’s largest commodity economies, UIB’s energy insurance product is certainly useful for the multi-billion pound industry.
ANTHONY JONES INSURANCE BROKERS Bromley
Anthony Jones offers specialist scheme for electronic cigarettes, the use of which, according to a report commissioned by Public Health England, generally leads to reduced smoking and eventually quitting – a plus for health and the environment. However, providing insurance for this product requires extensive knowledge of regulatory issues and litigation risks, given that most of the manufacturers, distributors and retailers of this product are based outside the country.
Also, the continuing development of e-cigarettes (e.g. unresolved debates about contamination and safety) and its lucrative nature also add to the risks of businesses involved, which explains the need for specialist advice.
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15/07/2016 2:18:55 AM
PROFESSIONAL LIABILITY MANAGEMENT LIABILITY
CASSEY MILLER JAMES Berkshire
D&O insurance claims in the UK have increased by more than 300% since the financial crisis, according to research
by Marsh, and claim notifications have averaged more than a thousand annually over the past five years. No wonder, then, that Cassey Miller James has found a profitable niche specialising in management liability insurance, which not only includes D&O but also corporate legal liability (includes breach of the Data Protection Act) and employment practices liability, all typically quoted under one policy.
HIGOS INSURANCE SERVICES Somerset
HARD-TO-PLACE PROFESSIONAL INDEMNITY
BC UNDERWRITING (BCUW) Burgess Hill
In the event that a medical professional is unable to work, locum insurance is a necessary barrier to the risks faced during a lengthy absence. In June, the BBC reported that in various parts of the country, 18% of the general practitioner (GP) workforce was made up of locums, which is significantly higher compared to the national average of 3.4% of locums in GP roles. Higos Insurance Services offers a specialised scheme to help meet the costs of GPs, vets or consultants using a locum, as well as providing cover for up to the first year of illness. PROFESSIONAL INDEMNITY
As part of a wider PI portfolio, BCUW, the underwriting division of Bennett Christmas Insurance Brokers, offers a specialist insurance line for difficult-toplace professional indemnity. Working with a niche provider, the company provides cover for professionals working in high-risk areas, such as offshore/ onshore, rail, marine transport and more. The company has grown rapidly since being founded by its parent firm, Bennett Christmas Insurance Brokers, in 2012. Led by managing director Tom Stripp, BCUW now has 11 staff members, five of which are dedicated to serving its PI business.
Looking for your own PI? BCUW has a new, BIBA-accredited facility available for insurance brokers’ PI.
APEX INSURANCE BROKERS Bristol
Apex was named the “Professional Indemnity Insurance Broker of the Year” in the Acquisition International M&A and Finance Awards in 2013, and the “Niche Insurance Broker of the Year” in 2014. Nice accolades to have and perhaps why it claims to be “one of the fastest-growing insurance brokers specialising in professional indemnity insurance”. Apex provides solutions for various professions, from those engaged in design & construct, architecture, engineering, to surveyors and real estate agents, and even insurance brokers themselves – making them a broker for brokers.
LUCAS FETTES & PARTNERS London
Lucas Fettes & Partners is an independently owned insurance and financial services group, established in 1980. It has nine offices across the UK. The Group’s services include insurance broking, risk management, financial services and investment management. Lucas Fettes is a Lloyd’s of London broker and has access to over 300 insurers, including specialist markets. It has a number of specialisms, one of which is professional indemnity insurance. The company has many years’ experience in providing advice to organisations in a range of industries. It also has dedicated expertise in malpractice insurance, in particular for medical practitioners.
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COVER STORY: THE SPECIALISTS RECREATION MORRIS DANCE TROUPES
BLACKFRIARS INSURANCE BROKERS Manchester
Want to keep performing that exciting sword-wielding folk dance but worried about any mishap that might happen with
your team exuberantly brandishing the sticks and swords? As a specialist broker for this particular activity, Blackfriars will let you keep that tradition alive without worries. The wholesale brokerage provides public liability and employer’s liability insurance, to cover any property damage and personal injury or illness that might occur while showcasing this cultural practice.
PAINTBALL, LASER TAG
ROMERO SPORTS AND LEISURE Leeds
“Namaste.” Yoga instructors can gain even greater peace of mind by insuring risks and liabilities with Cover4Yoga’s
MAGNET INSURANCE SERVICES Newark
Let’s hope that train-enthusiast Roy James, 70, from the Isle of Sheppey, Kent, has insurance for the 3,000 square
bespoke yoga instructor insurance policy. Cover4Yoga’s specialised product may have been especially useful during International Yoga Day on 21 of June, when thousands of yogis and yoga instructors came together to bend, flex, stretch and align their chakras across the UK and in cities around the globe. foot model railway sitting in his garden shed, which he recently completed after spending the last 20 years and £250,000 building it. Thanks to Magnet Insurance Services, he at least has an option! Magnet provides a range of bespoke products for model railway collectors, clubs, societies and traders. Magnet’s scheme now insures over 70% of the UK’s model railway clubs and exhibitions.
A game of paintball or laser tag among friends seems rather fun, but may get pretty intense (even violent) if used as part of military training or during a major competition; this is why the UK Paintball Sport Federation ensures that paintball venues have the basic safety criteria and full public liability insurance. Romero Sports and Leisure (A division of Romero Insurance Brokers) is a Leedsbased specialist sports and leisure broker. The company insures many paintball & multi-activity centres. Covers are included for both indoor and outdoor sites as well as the equipment used. The company also arranges covers for many sporting Associations and National Governing Bodies. In May, company director and specialist broker Martin Mansley, was awarded by The Royal Aero Club with a certificate of appreciation for his contribution to insurance for sports and leisure; the award was presented by HRH Prince Andrew, Duke of York.
Year founded: 1997 Number of employees: 126 Location of headquarters: Leeds Number of offices: 5; Leeds, Manchester, Nottingham, Halifax & Stockton
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SCIENCE & TECH ACTIVITY BUSINESS
JOHN ANSELL & PARTNERS LIMITED Enfield
The UK is home to some of the world’s best marathons. The Cardiff Half Marathon, UK’s second largest half marathon, recently announced a new course for the upcoming October race. With new twists and turns come the possibility of injury, enhancing the necessity for suitable liability cover. Operating since 1981, John Ansell and Partners takes pride in being an independent insurance broker focused on providing excellent service in their specialised areas, including the activity business sector. The agency offers policies for all types of “activity” businesses, including marathon insurance, obstacle course insurance, cycling insurance and many others.
BIRNBECK INSURANCE SERVICES Weston-super-Mare
The concept of the Forest School, which started in the UK in the 1990s, offers educational and health benefits and non-traditional exposures for students and educators alike. “We painted trees with water, pretended to be birds, and watched slugs and snails making their slow way around the woods,” recounts one educator who helped a child out of her self-induced silence. Sounds safe enough, but wherever people’s children are in the care of others, liability insurance will be sorely needed, and that’s why Birnbeck offers Forest School liability insurance. Alongside this offering, the company also has covers for other related activities, such as land and woodland maintenance, conservation management, and beach school.
GM IMBER & SONS West Sussex
Even though they may seem all fun and games, and nearly harmless, bounce houses are susceptible to flying away and inflicting bodily injury, which for operators’ wallets can be a distinctly deflating experience. GM Imber & Sons offers a policy specifically designed for owners and hirers of inflatable units called BounceInsure. The policy, which can cover public liability and the optional employer’s liability, is offered to bounce house operators, as well as those who operate photo booths, soft play, entertainment equipment and more. ANGLING CLUBS
MEAD SPORT & LEISURE LIMITED Norwich
Keith Letchford, a cricketer and sportsman, developed MEAD Sport & Leisure Limited’s portfolio in all aspects of liability insurance for the angling and sports communities. For over a decade, the company’s angling club insurance has insured hundreds of fishing clubs and associations across the UK. Currently MEAD has over 1,200 angling clubs and commercial fisheries on its book, who all benefit from the program’s free pollution legal costs cover. Not a member of a club? MEAD’s angler’s first insurance policy provides fishing tackle cover for individual anglers.
Often times, the unique risks that technology companies face fall outside the cover provided under standard insurance policies. After receiving an increased number of enquiries from businesses that felt inadequately protected by their insurance policies, Techinsure, a part of Morrison Insurance Solutions, developed a specialised insurance product for businesses of all sizes within the technology industry. Techinsure’s clients range from small start-up organisations to large multimillion pound turnover companies and include hardware and software providers, IT consultants, website designers and developers, cloud hosting services and more.
Year founded: 1989 Number of employees: 48 Location of headquarters: Alcester Number of offices: 2
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COVER STORY: THE SPECIALISTS SCIENCE & TECH
SERVICE BUSINESSES HEATING, VENTILATION AND AIR CONDITIONING COMPANIES
DARWIN CLAYTON EVOLUTIONARY INSURANCE Kent
CROSBY INSURANCE BROKERS Tyne and Wear
What was once just a practice among society’s boldest has now transcended to teens and adults everywhere – even footballer David Beckham has 32 tattoos on his body. Permanent body art can result in a permanent mistake. Crosby Insurance Brokers inks a liability policy designed specifically for tattoo shops and artists that can cover everything from minor errors to bodily injuries.
With summer heat waves in the midst, there will be no better way to beat the heat than sitting in the coolness of an airconditioned room. Darwin Clayton Evolutionary Insurance, one of the oldest brokerages in the UK who has been providing specialist products since 1920, offers an exclusive insurance policy specifically tailored to the heating, ventilation and air conditioning companies so they can stay insured through every season.
Willis Carrier invented the first modern electrical air conditioning unit in 1902 in Buffalo, New York.
BIOTECH AND LIFE SCIENCE
The University of Cambridge’s life sciences research and graduate program is the largest in the UK, so it may be of no coincidence that Cambridge-based brokerage, S-Tech, specialises in the biotechnology and life science insurance sector. Built over the past 30 years, the scheme covers the complex tangible and intangible risks related to the sector that drives multiple industries globally. Difficult to insure areas, such as clinical trials, can obtain comprehensive coverage from S-Tech to insure against global exposures, medical expenses and the like.
REID HAMILTON Lancaster
Located in Lancaster since 1982 and acquired by Duncan Woodcock in 1987, Reid Hamilton holds ISO9001 quality assurance accreditation and aims to be at service with “a friendly, local touch”. This is emphasized in the services it extends particularly to small commercial businesses. “I think we’re working in an area where good advice is needed … From my point of view, the small business end needs advice, needs someone there when something goes wrong, and I personally find it tremendously interesting to see the diversity of what people do and to provide a bespoke solution for their individual businesses,” says Woodcock. Tailoring policies for every small business need,
Reid Hamilton can arrange coverage for everything from motor fleets to business travel. “The risks we cover can be anything – we’ve got a parcel courier, motor dealership, steel erectors, estate agent, restaurants, care services, plumbing and heating engineer, sandwich and café retailer, phone recycler, hotelier and so on,” he says.
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GROVE & DEAN Essex
Online shopping is booming and during the hectic holiday shopping season, couriers will deliver millions of parcels. Family-owned Grove & Dean has been in the insurance business since 1974 and has recently developed an exclusive scheme especially tailored for couriers and other trades involved in the transport of goods for hire and reward. The product covers vans, trucks, cars and motorcycle dispatch riders all around the UK, and is available to new professional courier startups or experienced operators.
UK postal and courier industry details: Revenue: £22 billion Employment: 235,026 Businesses: 15,270 2016 IBIS postal and courier activities market research report
CHALKWELL INSURANCE SERVICES Westcliff on Sea
The UK stacked up £339bn in retail sales last year and 12% of those transactions CLEANING CONTRACTORS
occurred online. Brick-and-mortar shops and internet retailers equally require insurance coverage for areas such as stock, liability, equipment and goods-in-transit. Chalkwell Insurance Services offers policies for traditional retail businesses, retailers who work from home and businesses with mobile working arrangements that rely on distributors, such as eBay. BEAUTY/TANNING SALONS
SECURITY INDUSTRIES BLS INSURANCE SPECIALIST SERVICES SERVICES
The irony with cleaning is that at times, and unintentionally, the result will be everything but “clean.” Gleaming Insurance provides a policy exclusively for cleaning professionals, with options for public liability, employee liability, machinery and equipment insurance. Specialist coverage is also available for the cleaning industry, including damage to property being worked on and treatment risks – for the times a cleaning solution or chemical unexpectedly causes permanent damage to property.
Ever wonder who offers security to those whose services secure your home, family and belongings? For over 20 years, Security Industries Specialist Services (SISS) has provided insurance solutions for the security industry around the UK. The bespoke policies are designed to protect the legal liabilities of installers, suppliers, manufacturers and key service providers within the alarm, fire and security industry. Additionally, SISS provides PI insurance for experts in the trade.
Beauty treatments gone wrong will not only result in physical consequences, but also cause clients and professionals emotional distress. That’s why BLS provides specialist policies for hairdressers, beauty/health therapists, tanning salons and nail technicians. Its team has more than 125 years in collective industry experience. The beauty business cover includes treatment risk/liability, public and products liability, business interruption, and may extend to include buildings cover.
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COVER STORY: THE SPECIALISTS SERVICE BUSINESSES
CARTER CHASE London
Some of the greatest athletes have had their careers disrupted or cut short due to injuries resulting from the game. Carter Chase, a specialist business insurance
brokerage, provides cover for sporting professionals globally, working with their agents, managers or directly to arrange tailored policies. Regarding themselves as experts in arranging policies for career ending injuries, Carter Chase’s program is underwritten by Lloyd’s of London to pay out either a lump sum or regular income in the event that an injury results in the end of a sport career.
SALON SECURE Bristol
93% of the UK’s hair and beauty industry in 2015 was comprised of microbusinesses. Salon Secure, an online channel of Park Insurance, arranges policies dedicated to hairdressing, beauty, health and fitness companies of all sizes, all underwritten by Zurich Insurance.
The UK beauty industry is worth £17 billion and the sector is forecasted to grow 29% by 2017 according to Cosmetic Executive Women.
Established in 1982, BGI offers a specialised swim school insurance program that was developed as a natural progression from the company’s already established baby yoga, baby massage and baby swimming insurance programs. “Babies grow up – as do their mums – creating a need for swimming lessons and swimming instructors,” said Jade Mayall at BGI. BGI found that the compulsory insurance included within swimming associations were limited and the question remained as to what happens to a teacher when he or she wants to turn a ‘part time
activity’ into a full-time business. “The options available to new teachers are restrictive and expensive when it comes to insurance – so we accepted the challenge to provide an alternative route to buying swim school insurance,” said Mayall. The company’s insurance options for swim schools range from policies for just the “sole trader” to cover for larger organisations.
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TRAVEL ACTIVITIES AND TRAVEL
SNOWCARD INSURANCE SERVICES Daventry
CHRISTOPHER TRIGG INSURANCE BROKERS Hertfordshire
Though our quest for the UEFA Euro 2016 cup was cut short, we have the 2018 FIFA World Cup in Russia to look forward to, and league games to enjoy year-round. Christopher Trigg Insurance Brokers, a brokerage with over 40 years’ experience, offers an exclusive professional indemnity scheme especially for football sports agents.
Starting from the need for skiers to carry proof of medical and rescue insurance in the Alps, Snowcard Insurance Services has evolved to provide all-around activity insurance coverage for all types of sports and travel risks, from general travel and basic sports cover for activities such as cruises, safaris and beach holidays to policies for more extreme activities like ski mountaineering, cave diving and glacial trekking, Snowcard puts together adventure policies tailored to the destination, activity and duration of stay, while offering clients the flexibility of selecting their own sums insured.
RAVENHALL RISK SOLUTIONS Leeds
Given the Zika virus outbreak in areas of South America and Caribbean, pregnant travellers globally have altered or canceled travel plans to avoid the health risks posed by the virus. Experts in travel insurance, Ravenhall Risk Solutions offers an insurance product designed just for pregnant travellers and their companions. The company’s “MamaAtoB” product covers mumsto-be until four weeks before the due date. Coverage under the policy includes cancellation for travellers should if it is medically necessary, unexpected pregnancy-related medical expenses and automatic inclusion of the infant in the event you give birth on holiday.
There is currently an estimated 7,000 teams in 5,300 clubs in the English men’s football league system. SPORTS
Everyone knows that the ultimate sport in the UK is football, and anyone who knows anything about it would also know that players easily and frequently get injured. Which is why Sportsguard offers football team & club insurance, which they have offered for over 25 years, covering 60% of the UK. It’s extended not only to big teams but also for grassroots football, and offers different quotes for adult and youth. As a “specialist niche sports broker”, the company goes beyond football and arranges insurance for other sports such as cricket, lacrosse, polo, rowing, rugby, and even American Football.
INSURANCE CHOICE Warwickshire
Traveling is one of life’s greatest pleasures and just because you are on holiday on a sandy, sun-soaked beach does not mean
that travel risks will disappear. Insurance Choice offers various lines of travel insurance to suit individual needs, from factoring in destination, activities and number of travellers. Policies range from single trip cover to annual cover. Also, Insurance Choice specifically specialises in arranging cover for travellers with preexisting medical conditions.
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SPECIAL PROMOTIONAL FEATURE
Insuring customers of the future The insurance industry is changing – and so are its customers. Ageas looks at the trends that will ultimately impact on how customers interact with brokers IT’S NOTHING new that understanding what your customers want is vital to running a business effectively. Of course, we can’t assume that the wants and needs of the customer of today will be the same as those of the customer of tomorrow. The millennial generation has brought a new set of expectations and technological changes that influence the way products are delivered. So what effect will the changing needs of the consumer have on the insurance sector, and what will happen to the products that brokers and insurers provide? Ageas recently worked with the Institute of Customer Service, which produced a report called The Customer of the Future, to investigate the issue and identify some vital trends.
What to expect According to the research, we can expect the following trends in customer behaviour: Fear-driven: Customers will become increasingly protective of personal information and demand assurances among ever-increasing threats of breaches to online security. There are pros and cons for brokers: on the positive side, customers may become more wary of operating through online-only platforms; however, on the negative side they may lean towards more wellknown ‘big name’ brands that they trust to have better security measures in place. Self-aware and focused on now: Customers will want a genuinely personalised service rather than relying on mass consumerism. However, they will be focused on the ‘here and now’ rather than on long-term planning, which may make insurance in general a more difficult ‘sell’.
Network economy will grow in influence: It is expected that competing organisations will collaborate to build market share, offering customers potentially better value and more innovative products but also having the potential to ‘price out’ brokers on standard products. Where brokers can add value is through the tailored support they can provide for more niche areas, and this is where their focus may turn. Contradictory impulses: What will perhaps be most difficult for brokers, according to the
report, is that customers will have both a desire for personalisation and also a reluctance to share data, making them unpredictable and more difficult to satisfy.
Changes at home Connected homes are no longer just a concept, with research estimating that nearly 13 billion connected devices will be in place by 2020. However, the report suggests that the development of the Internet of Things will not be fuelled
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by the gadget manufacturers themselves but by consumer demand for useful devices. Insurers will need to embrace meaningful technology in order to satisfy customer needs. One area of emphasis will be a shift towards prevention in home insurance. Customers don’t want to have to make a claim for flooding, for example; they would prefer it if their home wasn’t flooded in the first place. Therefore we’ll see new technologies in place, like pre-emptive sensors, that will keep a digital eye on the hidden piping.
Opportunity for brokers Brokers will be able to offer an even more personalised service. Rather than simply consoling customers after the worst happens, they will be able to present solutions that help customers avoid that heartache in the first place. The future could also see greater personalisation through a customer-led live video journey of a property. Whether they have a specific risk they want to show you first-hand, or they want your advice on where best to keep their new bike, being able to see the context of the risk could be not only be helpful for you but priceless for them. Ken Marke, from the Horizon Scanning Team at Ageas, says: “Insuring a connected home will of course be about providing value for money but potentially more about providing customers
Changes on the road Car insurance has long been influenced by technology, but that’s about to go to another level with the UK’s first driverless car insurance policy already on the market. Sensors in cars are nothing new, but they have recently taken on new forms, including autonomous emergency braking, adaptive headlights, lane-keeping and traffic jam assistance systems. And now, automated vehicles are just around the corner. What this means for customers is that they will ultimately be able to hand over control of their vehicle, creating increased safety and reduced risk while also limiting the possibility of insurance claims (at least, in theory). Connectivity, too, is likely to play a part, with drivers able to download ultra-precise 3D mapping and create a flow of communication between the vehicle and the central control centre.
Opportunity for brokers Think about what your customers’ driving experiences will look like in five years and how their needs will change? New propositions and service offerings should reflect these lifestyle changes. Chris Dobson, broker distribution director at Ageas, says, “A connected car will ultimately mean a safer car and fewer accidents. ... Of
“If something does go wrong, the insurers have access to so much more data which can help them support customers” Ken Marke, Horizon Scanning Team, Ageas peace of mind. Caring for elderly relatives for example – with a connected product , customers, or children of customers, can be contacted immediately if something has gone wrong or indeed if something is about to go wrong. For example, a connected boiler will have countless sensors that can alert insurers if something looks like it’s going to go wrong. ... [And] if something does go wrong the insurers have access to so much more data which can help them support customers through any subsequent claims.”
course, for insurance this may mean we need to insure the technology rather than the driver.”
Changes for the traveller We’ve already seen a host of changes making the way we travel easier, from the ability to book e-tickets to electronic passport control. However, more changes are coming. In terms of insurance we’re likely to see a ‘near future’ impact from wearable technology, with small devices used to take readings of a customer’s bodily functions in
7 STEPS TO FUTUREPROOFING YOUR ORGANISATION By 2025 organisations will need to adopt a seven-pronged approach to ensure they meet customer priorities and demands: Smarter use of available data Greater collaboration between competing organisations Recruiting and developing the right people Better data security and transparency Creative customer experiences Building and demonstrating trust Understanding regulatory frameworks Source: www.instituteofcustomerservice.com
order to make health assessments and establish existing conditions. But with this advancement will come risks, especially if policies are ‘fronted’ and one person’s data is used to obtain insurance cover for another. However, this could change in the future if human implants become a reality.
Opportunity for brokers If devices are enabled allowing for more accurate recordings of health data, products can be tailored more accurately. Brokers will be able to offer more individualised policies that specifically deal with the customer’s circumstances. “If wearable technology gives us up-to-theminute personal health information, insurers are relying less on historical health information to generate the cost of the risk,” Dobson says. “This insight provides us all with the opportunity to offer a more comprehensive and accurate travel insurance product, particularly if a customer needs to make a claim.” To find out more, visit www.ageasbroker.co.uk to download the Customer of the Future report.
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Not every client, but the right client Insure Risk has recently expanded to new premises. Ged Murray highlights the secrets behind the business’s success and explains why ‘piling on’ clients is never the right approach
WITH THE surging number of direct insurers and online platforms, it’s become increasingly difficult to enjoy growth as a broker. That’s why when a broker with humble beginnings announces its plans to expand to new premises it’s quick to catch the eye. Step forward Insure Risk, an insurance company based in Altrincham, which has just moved to bigger offices after taking on new staff thanks to a recent uptick in business. Insurance Business reached out to the firm’s managing director Ged Murray to find out about the secrets behind the success story. “The business started about five years ago, by myself and my partner Paul Denny, and we decided to begin a community type insurance brokerage looking after local businesses and using the skills that we learned in the corporate world and applying them to more local based business,” commented Murray. “We started off from scratch and the business has grown over time.” Now boasting six employees, the company has moved to bigger premises at the Atlantic
Business Centre in Broadheath. Surprisingly however, the success has not been achieved through strict targeting – instead it’s a case of a slow and steady approach and establishing the right reputation. “We do marketing, we do cold calling and we do promotion – there’s isn’t one answer,” said Murray about how he goes about attracting business. “I think we’re very careful to deliver what we say we’re going to do. Very often people promise you stuff and they don’t deliver. We’re very careful. We make sure we can provide the clients the service. It’s not just about piling the clients on – it’s about providing the right service.” Delivering the right service might be
something that every broker aims to do, but Murray believes that brokers shouldn’t get lost in the idea that they can offer this service to everyone – on the contrary, it’s necessary to take a long term approach and think about if the relationship can truly flourish because if it can’t the situation won’t work for either party. “We’re trying to build a business, we don’t always get it right, but if we detect that the client is only interested in price then that’s rarely a client we can work with,” continued Murray. “We think our service is more than just a low cost option. We want to make sure our client has the right cover in place and we make sure we review their risk exposure and tailor the policy to what they need.
POWER BUSINESS TO POWER BALLAD With more than 30 years’ experience as an insurance broker, Ged has provided insurance advice across most sectors of UK business with clients ranging from corporate organisations to owner managed and SME business. He has worked for two major companies based in Manchester and for approximately eight years he was regional managing director with responsibilities for client service, business development and staff management. He is married to Sheelagh and has three daughters while in his private time he enjoys sports and has a guilty pleasure of listening to 70s and 80s rock ballads.
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FAST FACTS ABOUT INSURE RISK Founded: 2010 Location: Altrincham. Offices: One Number of employees: Six
Types of cover Construction and Civil Engineers
“We’re very careful. We make sure we can provide the clients the service. It’s not just about piling the clients on – it’s about providing the right service” “Sometimes, unfortunately, people don’t value the service. Some clients base decisions solely on the premium. But it’s the service and the extent of the cover that’s arranged that’s important too. There are some people who just say they want to pay the least they can – but that isn’t the right way to go about it. When they need to make a claim they suddenly discover that they haven’t got what they thought they had and that’s when everything goes wrong – and that reflects on you as the broker too. We don’t want people to be in a situation like that so we take the time to get the cover right.” But how is it possible to persuade a customer who is fixated on price to look beyond that alone? “We try and find out about their risk exposures, what cover they have at the moment and highlight any deficiencies,” responded Murray. “It might be that someone
has to pay a higher premium and that won’t suit everyone – but we want to explore the risk with the client, explain that and discuss what they need to insure.” Another key to success for Insure Risk has been being able to embrace technology – and also using it in a productive manner to get the balance right and still offer traditional brokering services. “When we started the business we realised we had to gear ourselves up on the technological front,” commented Murray. “We have got a good system that we use and we realise that a lot of clients in our world now like to use online quoting agencies. “One thing we advise our clients about, however, is that even though many of them are buying insurance online simply doing that isn’t enough – the cover is rarely right. They rarely get what they think they’re paying for. So wherever possible we try to
Retail and Offices Commercial Vehicles/Fleet Professionals’ Insurance Property Owners and Developers Commercial Combined Directors & Offices Legal Expenses Solicitors’ Insurance meet the clients and find out about what they want rather than give ‘off the shelf ’ answers.” It seems the message from Murray is clear – if you want to get ahead of the competition then you should try and give clients what they want, but never at the sacrifice of your own service.
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SPECIAL PROMOTIONAL FEATURE
The role of the wholesale broker In the eyes of some, the wholesale broker is seen as an unnecessary middleman. However, there are many situations in which they can be your saving grace RETAIL BROKERS know only too well what it’s like to be considered an unnecessary middleman. Consumers going direct to insurers can not only threaten their business but also leave the broker feeling disappointed that the valuable service they know they can offer is being overlooked. Yet the real irony is that many brokers are adopting the same attitude with respect to their own ‘unnecessary middleman’ – the wholesale broker. Turn back the clock 20–25 years and most of the brokers in the London markets were wholesalers. They worked with brokers throughout the UK and the world, introducing business to them. However, times have changed and the advancement of technology now allows retail brokers to gain their own access to insurers, leaving them with the question: why do we need wholesale brokers if we can place business directly? “Wholesale broking is a lost art,” comments Pat Boreham, head of broker development and relations at MGB Insurance Brokers Ltd. “Retail brokers with direct clients are seeing their earnings squeezed all the time with the markets
being so soft, so to use a wholesale broker there has to be a good reason for it.” So, what are the benefits of using a wholesale broker?
Specialisation Perhaps the primary justification for using a wholesale broker is that they have access to numerous specialities that retail brokers simply don’t have the time to engage in. “The vast majority [of retail brokers] are general practitioners,” says Boreham. “They are good at the majority of insurances. However, as their understanding in some of these specialist areas isn’t perhaps as extensive as our own, they will either not raise the subject with their clients or find they don’t have the influence and access to the same range of markets for classes like professional indemnity, directors and officers, financial institutions or medical malpractice. “For example, if you are a regional broker and you have access to four or five good-quality PI insurers and they are coming up with the premiums and cover that satisfy your clients, then that’s fine. As far as we’re concerned they should keep doing that.
WHOLESALE BROKER: A DEFINITION
Who are they? Intermediaries between retail brokers and insurers
Access Usually possess greater access to certain insurance markets
Specialists They often have specialist skills in a particular coverage line
Valuable They have particular value when dealing with difficult-to-place risks
“However, it’s also possible that the market has specific underwriting guidelines that they have to stick to, and when a more complicated, competitively priced or difficult risk arrives on their doorstep, those markets that brokers have forged relationships with directly may decline based on their underwriting criteria. And that’s where someone like a wholesale broker would would come into play to support you. “There are a number of professions with regulatory bodies that have to have very specific types of cover, like chartered surveyors and accountants. They have to have a policy wording that fulfils their professional regulations. A specialist wholesale broker can ensure that your customer’s requirements are met properly.” A broker who is not completely comfortable with these specialist areas could become unstuck and risk putting their client on to the wrong type of policy. “With professional indemnity, for example, the customer takes it personally, as a professional person would, when a claim is made against them,” Boreham continues. “There is a lot of legal jargon thrown around, and that’s often the moment when clients are at their most anxious and demanding, and this is the moment they need their broker the most. So a broker has to understand their product. One thing MGB does is they have a professional claims team in place that understands what’s needed – and that’s the level of service that’s required.”
Market access It’s not just about specialities either – it’s also about general market access. By forging a relationship
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like MGB, you’ve got access to maybe 50 markets and they know which ones to go into and they know the product.
Personal relationship Ask a broker to explain to the customer the main reason for going through them rather than via an insurer directly and most will tell you that they can offer a personal relationship – they get to know the customer as a person and more clearly understand their needs. The same can also be true for the relationship between a wholesale broker and a retail broker. “What’s crucial about the relationship is the rule about transparency,” Boreham says. “We, as the wholesale broker, must get the deal right. “I will take phone calls from brokers who will say that they look after a client’s property and motor and he is a professional in, as an example, the medical sector, and they ask: ‘Before I raise the subject of placing his own medical malpractice insurance, can you tell me more about that particular sector?’ “As a wholesaler, these are the conversations that will take place. A client will expect their broker to know about and raise these questions with a wholesale broker, a retail broker opens up a whole new world. One of the key advantages of a wholesale broker is that the relationships they have with both insurers and underwriters mean they have stronger connections. This allows them to get very good deals that perhaps a regional broker would struggle to get because they don’t place as much business with that insurer. “Using wholesale brokers has a knock-on advantage as well,” says Boreham. “It will also assist brokers with the speed and efficiency of their business because faster market access means more time to focus on placing more risks. “For a regional broker, if an insured says, ‘I need a quote’, a regional broker has to go and get that quote from a number of people. It’s time-consuming – they might have to go to six or seven markets on their own. However, if you ask a wholesale broker to place the risk for you, they have the buying power. It’s like going on Google and asking where the best deal is in town. These are the guys who place those risks day in
“There is a lot of legal jargon thrown around, and that’s often the moment when clients are at their most anxious and … [when] they need their broker the most” Pat Boreham, head of broker development and relations, MGB Insurance Brokers Ltd and day out, so when you send them something like a chartered surveyor or an IT consultant they will know the best market with the best product and the best prices straight away. So a broker can go around seven or eight markets themselves or they can go to a wholesale broker and get it all done in one go, leaving them more time to deal with their day-to-day business. From three or four markets can you really be sure you’ve got the best price or the best product? On the other hand, if you go to a wholesale broker
with them in terms of legislation or claim issues and so forth. So MGB passes on that knowledge to help them. “From our perspective we’re happy to talk to regional brokers about these smaller cases that might only pay £1,000 – right up to those that pay £50,000 plus – because it’s the whole relationship that matters to us and to them.” So it seems the value of using a wholesale broker is just like the value of the broker itself – and who would question that?
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15/07/2016 12:11:51 AM
Four ways to improve your influence We are all in the business of influence, but instead of seeing it as manipulation, Tim Baker outlines how influence, when used ethically, can be an essential business tool
INFLUENCE IS the lifeblood of business, especially for brokers, who must influence the many stakeholders they deal with on a daily basis. However, the word influence means many things to many people. To some, it means being cunning, manipulative and tricky. Others believe the use of influence can be ethical and open. In my view, influence is the power to make other people agree with your opinions or get them to do what you want willingly and ethically. The key words here are ‘willingly’ and ‘ethically.’ Sustainable influence is not an exercise in manipulation and trickery. In the context of sales, marketing and professional advice – areas that brokers regularly work in – influence is, more often than not, about persuading others to think and act in ways that benefit themselves and their circumstances. People make up their own minds, but they do so on the basis of how they are influenced. This is why influencing must be done from an ethical standpoint. My new model of influencing, the Influencing Capabilities Framework (see box, opposite page) identifies four primary ways that leaders can and do influence others. You will notice two styles – push and pull. The push style is more assertive, direct and upfront, while the pull style is more collaborative, indirect and subtle. Both are effective
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INFLUENCING CAPABILITIES FRAMEWORK PUSH STYLE
in the right place, at the right time, with the right people. The two approaches are logical and emotional. The logical approach is based on fact, rationale, structure and clarity, whereas the emotional approach is based on inspiration, possibility and the ‘big picture’. Again, both approaches work in the right circumstances. So we end up with four distinct strategies: investigation, calculation, collaboration and motivation. Which one do you favour?
Investigation As a strategy of influence, investigation basi cally means gathering the facts and presenting them in a logical and convincing manner. The presentation of a coherent and assertive argument based on well-founded research is a powerful form of persuasion in the right set of circumstances. People are not usually convinced by someone who does not have a sound grasp of the facts, nor are they influenced by someone with wavering conviction or an incoherent presentation of his or her ideas. Then again, even if you are logical, coherent, assertive and well-researched, that doesn’t necessarily guarantee that you will be persuasive. But these attributes are at least a good starting point. Brokers who have a preference for investigating like to search for supporting evidence and, from this data, generate hypotheses or ideas based on a logical, rational argument. Once investigators have prepared a well-founded case, they assert their ideas to others. Being well prepared, investigators are typically on solid ground to oppose others’ arguments. In other words, an investigator’s influencing ability is reliant on a carefully researched and assertively communicated
case. Climate change campaigner and former US vice president Al Gore is an example of an investigator.
doing contribute to the big picture?” is the type of question motivators answer. Former civil rights activist Martin Luther King, Jr. was a motivator.
Calculation Calculation means to influence by clearly articulating the pitfalls of the status quo and demonstrating how those pitfalls can be overcome with a new proposal.
Collaboration The strategy of collaboration fundamentally involves influencing through trust-building and sharing ownership of the leader’s proposal.
Influence is, more often than not, about persuading others to think and act in ways that benefit themselves and their circumstances Psychologists tell us that we are all motivated by pain and pleasure: We try to avoid painful situations as much as we can, such as being late for an important meeting we are chairing. Conversely, we gravitate to pleasurable experiences, such as pleasing our boss by finding the right information in a timely manner. While this should appear obvious, we each have different ideas of what pain and pleasure are, so we interpret the significance of situations in our own way. A potentially painful situation for one person could be viewed as enjoyment by another. Brokers who are calculators are likely to talk up both the advantages and disadvantages of an approach. Former UK prime minister Margaret Thatcher was a calculator.
Motivation The motivation strategy, in essence, means to influence by associating an idea, change or proposal with a clear, compelling and common vision of the future. Brokers who can paint a convincing picture of the future and motivate people with that vision are generally inspirational and influential. Most great leaders have this aptitude. Unfortunately, from my observations, too many people get caught up in the minutiae of what they are doing. Consequently, they often forget to articulate the link between the proposal and the big picture. People in sales don’t always explain the why – why we are recommending this approach or portfolio. “How does what we are currently
Clients are more likely to be persuaded by a broker’s suggestion if they feel they have been genuinely consulted about it. By collaborating with others, the influencer is inviting the people he or she is influencing to be emotionally engaged and involved in the proposal. Clients feel they have a stake in the change and are subsequently more receptive to its merits. Through authentic collaboration, trust builds and influence increases. Collaborators create positive emotional energy. They are concerned with developing a sense of trust and engagement. Collaborators are consultative in their approach to problemsolving; they actively listen to others and are willing to share ownership of the outcomes through open communication. The influence of collaborators permeates from encouraging input and building higher than normal levels of confidence in colleagues. The late activist Mother Teresa was a collaborator. We each favour one of these strategies over the other three. The problem is that, from time to time, we will doubtlessly use the wrong strategy, either for the person we are trying to influence or the situation we are in. Outstanding persuaders and influencers use all four strategies in the right place and at the right time.
Tim Baker is a thought leader in organisational and leadership development, an international consultant and bestselling author of the book, The New Influencing Toolkit: Capabilities for Communicating with Influence.
15/07/2016 12:12:14 AM
The key to creating shareable social media videos Your social media video doesn’t have to include babies, celebrities or dancing in order to become immensely popular, according to Marcus Seeger. Read on to find out how to lift your social media presence to greater heights
IT IS CLEAR that social media has grown rapidly over the last decade, and more recently there has been a significant growth in social media video. YouTube is the leading social media video platform, but 2014 saw Facebook step up and compete, along with others such as Vine and Instagram. Social media videos are typically shared across a single platform, but recent statistics from YouTube, revealing that 700 YouTube video links are shared on Twitter every minute and 500 years of YouTube videos are watched on Facebook every day, demonstrate the increasingly highly shareable nature of social media video across different platforms. There are many reasons why someone will elect to hit share, rather than simply like or comment on the video. They might want to be the first to share and be seen as having their ‘finger on the pulse’, or perhaps gain kudos by association, or maybe sharing is coming from an altruistic perspective. Almost half of video shares occur in the first three days after the video is posted, so it’s critical to promote newly published videos as much as possible in those allimportant early days. As Seth Godin says, you need to get early adopters actively
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campaigning on your behalf to get the ball rolling. When planning your content, it is extremely useful to look at audience profiling and determine what elements are most likely to result in the video being shared. What are your audience’s preferences – do they like funny, cute, funky or inspiring? Much also depends on who your audience is sharing the video with. Who are their friends, and who is in their network? What interests and passions do they share? Can you somehow tap into the zeitgeist? One element popular videos have in common is that they hit emotions very hard. It’s not enough for a funny video to make you smile – you need to be laughing loudly before you even think about sharing it. Think about the videos you personally share on social media, and ask yourself why you shared them. This will help you gain insight into your own experiences, and that knowledge can help you identify triggers in others. Here are five key strategies for creating popular shareable social media videos.
Educate your audience
The ‘how-to’ genre is often overlooked, but it offers significant opportunities to create popular shareable content. Typical how-to videos are not particularly complex to create and can offer a solid ROI, particularly if you focus on a topic that is in high demand. The popular ‘life hack’ subgenre is a good example of a successful how-to niche. A proven approach is to share significant insight and provide truly valuable content, as this is more likely to be shared. If you’re concerned about protecting what you know, you must move on from this mindset and share some of your most valuable content if you are looking to create the type of video that will be popular. By sharing your insider knowledge or ‘secret sauce’, you have a good chance of standing out from the crowd.
Go for entertainment value
Video that entertains will, in most markets, have a higher chance of being
shared. Can you think of a funny angle on your industry, or perhaps a clever parody or spoof that can be turned into a video? While these types of videos will have more of a hit-or-miss success rate, if they work,
Typical how-to videos are not particularly complex to create and can offer a solid ROI, particularly if you focus on a topic that is in high demand then they typically do very well. But be prepared for an epic fail if it all turns pear-shaped – can your business (and your ego) handle this?
Engage with a story
Storytelling is so incredibly powerful because it’s built into our DNA. If you go back hundreds of thousands of years to early mankind, we used to communicate knowledge through storytelling. Today’s digital campfire hasn’t really changed all that much, and videos that have strong narratives are predisposed to being shared with friends, peers and beyond. Is there an element of your business or product that has a strong story behind it that would engage your audience enough to make them ‘tell the world’? Keep in mind that the key to a good story is to be authentic. Certainly don’t pretend that the story is something that it’s not, because online audiences are very media-savvy and will notice right away if your story is a fake. And remember to make your story enter taining. It is a wonderful opportunity to put some thought into your script. Make it the best that it can be. Your audience will appreciate it, and you will benefit from the results.
Become crystal clear on outcomes
Don’t be daunted when you see videos with millions of views or thousands of shares; instead, be inspired. You must have courage, because until you publish your video, you will not know how it will be received. It’s important to set goals and determine how to measure ROI. You will need to set your own standards to measure the success of your video. For a small business start-up, just 100 shares might well offer unmeasurable business opportunities if the right people watch the video. What does success look like for your video?
A video that stands out by going against the grain of audience expectations is often a recipe for success. The 2014 #likeagirl campaign from Always is a good example of developing a theme in a direction that is not immediately predictable. It also picks up on strategies 2, 3 and 4 outlined above. (Watch it at youtube/XjJQBjWYDTs.) If you want people to share your video, it needs to be unique in some way. The ‘same old, same old’ content quickly gets stale and simply will not be shared. Creating shareable social videos is perhaps more challenging today, as there is simply an avalanche of content, and audiences don’t have the time to consume even a fraction of it. We are experiencing ‘content shock’, which is why Facebook filters out the majority of possible content and serves only what is most likely to be of interest to us. Your challenge is to create original, authentic, entertaining videos that inspire your audience to hit that magical ‘share’ button. It’s a challenge worth aspiring to, as the benefits of a popular social media video that is highly shareable can be extremely profitable.
Marcus Seeger is the number-one Amazon bestselling author of Video Marketing for Profit: 14 Proven Strategies for Accelerated Business Growth. He is also the managing director of video marketing and production agency Video Experts. For more information, visit www.videomarketingforprofit.com.au.
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Big data has a bigger future
Anyone who thinks big data is a concept of the future needs to re-evaluate – because in the insurance sector it has already arrived MAJOR INSURANCE companies in the UK and beyond are no longer just window shopping when it comes to big data – they are ready to buy. According to research by Teradata in March this year, 82% of UK insurance compa-
the number prioritising big data fell dramatically – to a minority of 46%. So if the smaller the insurer the lower the interest in big data, can we assume that retail brokers, with lower premium volumes in general, have a passive attitude towards big
“Big data provides the opportunity to change the level of potential insights and understanding that we can have regarding the customers and exposures we insure” Susan Penwarden, chief underwriting officer, commercial lines, Aviva nies with a turnover surpassing £500m are prioritising big data strategies during 2016. However, while the big boys have jumped on board, it seems the smaller the company the less willingness there is to take the leap into big data. The same survey polled 42 respondents from companies with a turnover of £50m– £500m, against 22 companies with a turnover of £500m or more. Among the former group,
data? If they do, that is a mistake, says David Umbers, CEO of Ascent Underwriting. “Brokers have not been great innovators and adopters of technology – but the use of big data and the technology platforms that surround this will provide enormous efficiencies as well as create better margins for brokers and their clients, breaking down a somewhat antiquated and bloated process,” he says.
Changing times Big data benefits customer, broker and insurer alike as it allows for more accurate assessment of insurance risks; this is the fundamental use of big data in insurance terms. Thanks to advanced analytical procedures it has become possible to make sense of vast amounts of digital information. Statistical and predictive modelling can work out what will happen in the future by understanding and measuring as much as possible from the past. Models then make predictions while measuring variables from the data collected. The result, for the insurance industry, is a host of potential benefits, including: Car insurance: With price comparison services ramping up competition for consumers, the need to accurately assess risk, particularly among younger drivers, is stronger than ever. Telematics-based packages allow an insurer to make accurate assessments of the likelihood of an accident based on comparing behavioural data across thousands of drivers. Aviva Drive, for example, is an app that monitors driving habits and measures accelerating, braking and cornering. The data is factored into the premium, and safer drivers are being rewarded with cheaper premiums. Health and life insurance: Wearable technology, including the Fitbit and the Apple Watch, offers new ways to monitor people’s habits and make assessments of their lifestyle. Research by Accenture in the US showed that one third of insurers are already using information from these devices, rewarding healthy behaviour with lower premiums. Home insurance: Smart home-tech is seeping its way into home insurance too. In the US, providers American Family Insurance and Liberty Mutual Insurance have formed a partnership with Nest Labs to offer its smoke alarms and carbon dioxide monitors to their customers. As part of the deal, customers are able to enjoy reductions on their premiums as the insurers receive data from the devices.
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Each insurance sector has the potential to benefit from the arrival of big data. According to Susan Penwarden, chief underwriting officer, commercial lines, at Aviva, this benefit can make insurance a more appealing and fairer proposition for customers too. “Big data provides the opportunity to change the level of potential insights and understanding that we can have regarding the customers and exposures we insure,” she says. “This allows us to offer more tailored insurance solutions and potentially more accurate pricing.”
Controversy Of course the collection of masses of personal data is not without its critics – and concerns have been raised about how this data will be stored and used by insurers. In Canada, for example, there is widespread debate about the use of genetic testing in determining life and health insurance premiums. Canada is currently the only country in the G7 without a law in place to protect people from discrimination forged from their genetics – and the S-201 Bill, also known as the Genetic Non-Discrimination
Act, has been put forward in an effort to make it illegal for anyone to request that someone else has genetic testing. Insurers, of course, do not request genetic testing – but they can ask about family and medical histories, prompting controversy about how this data can be used against people. Indeed the last thing the insurance sector needs is a situation in which vast numbers of people become ‘uninsurable’. The risks go beyond what data is gathered, however, and extend to how it is kept secure – the more you know about your customer, and
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HOW INSURERS ARE USING BIG DATA Increasing market penetration now
53% Increasing market penetration in two years
Enhancing customer value proposition now
18% Enhancing customer value proposition in two years
Transforming the business model now
12% Transforming the business model in two years
48% Expanding customer relationships now
Expanding customer relationships in two years
Source: Willis Towers Watson
BIG DATA’S BIG SPLASH Five areas where the impact of big data is being felt the most: Streamlining underwriting Identifying customers at risk of cancelling 3 Data for personalised policies 4 Identifying fraud risks 5 Customer relationship management 1 2
the more personal the information you hold, the greater your responsibility. “The collection of data from multiple sources should enable the insurance industry to improve their assessment of risk and lead to more bespoke pricing models,” says Andy Mintern, commercial and finance director at Lorega. “The risk, however, is the source and control of that data and whether it is subject to any rights or control. In addition, the data may be considered ‘personal data’ in that it relates to an individual and could, if it was subject to a data breach, potentially enable others to identify and make a value judgment about that individual. Such a breach could be a notifiable event under the Data Protection
“Brokers need to embrace the change in technology and use it to help their clients, by tailoring insurance to meet the specific needs of their clients” Andy Mintern, commercial and finance director, Lorega Act. Companies need to be aware of this – of the increase in the responsibility of holding this type of data.”
Effect on brokers There is little doubt that there are risks associated with the explosion of big data. However, big data presents opportunities for brokers by enhancing their insight into consumers while reducing the bureaucracy that prevents them from getting the information they need to make accurate assessments of their clientele. “The broker’s role will continue to be that of the expert adviser on the right type of insurance, but they will need to become better at understanding the new emerging exposures like cyber, loss of data, data security, etc,” Penwarden says. “They will be less focused on
collecting data that is widely available, and more focused on understanding the unique customer, their insurance risk profile, and how they support that customer to purchase the best protection.” With more details about their clients brokers can ensure that policies are tailormade for their individual needs. “Brokers need to embrace the change in technology and use it to help their clients, by tailoring insurance to meet the specific needs of their clients,” Mintern says. “Where the broker adds value is in helping the client to understand their risk and in helping them select the insurance which is both relevant and value for money in respect of both their demands and needs. If big data
eases the process of understanding the risk, this could change the role of the broker to become more specialised, to ensure that global assumptions are correct and relevant to an individual case.” Penwarden adds that brokers can use big data “to better understand their customers, to do pre-screening, for example for fraud, ... for prospecting new customers to better enable them to provide the right proposals, etc.” Successful adoption of big data could be ‘make or break’ for brokers. With more and more insurers moving to direct online models, the consumer pool for brokers appears to be thinning, and it’s vital that they use the tools now available to achieve optimal impact. As the phrase goes – if you don’t do it, someone else will.
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TURNING DOWN THE PALACE Currently account manager at M&S Duggal, Alan Cook turned down the chance to become a professional footballer in favour of broking Cook started to move up the ranks of football at the time he left school but was unsure of what career path he was going to take so he became an ICL apprentice. “It was about this time I started taking football seriously, but needed work to go with it”
PICKS UP A FOOTBALL
1977 TAKES A TRIP TO THE PALACE In the Jubilee year, Cook signed a semiprofessional contract with Crystal Palace. Following a trial, the football club offered him a professional contract … which he turned down. “Palace gave me a trial, then a contract. I decided not to take it up as I earned more playing part-time and working full-time”
1991 TAKES TO THE GREEN With knees that had taken their toll during his football life, Cook had to find another way to get exercise, so he turned to golf, which also turned into a good business tool. “Golf is a great way of exercising and a great way to meet clients and your peers in the industry”
2008 BROKERS THE GOLF Cook is currently account manager at a boutique broker with around £1m in turnover. “For the past eight years I have been with M&S Duggal in Wandsworth. It’s a good company to be in – I get a lot of time off to play golf and meet a wide range of people”
1975 MOVES INTO BROKING Having had enough of the apprenticeship, Cook made a move into broking with AA Insurance Brokers, and his career path solidified, but there was still the football... “Having moved to AA, I realised this was a job I could do. I kind of fell into the job and liked it”
1985 CLIMBS CAREER LADDER Cook continued his career path with spells at Campbell Irvine (brokers), Sun Life of Canada and Helm Insurance. “The great thing about this industry is that you speak to so many amazing people and learn from them all the time”
1995 CONTINUES THE CLIMB Cook rose steadily up the ranks, learning to manage clients for a variety of companies, including Time to Insure, Hanover Insurance Brokers, and RA Insurance Brokers.
It’s been a steady climb – I started as an administration clerk then moved up to assistant manager, and now I’m up to manager
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RUN OF HIS LIFE Paul Ali has run literally hundreds of miles, and for the ultramarathoner there’s no end in sight ULTRAMARATHONER and Covéa Insurance’s business change manager, Paul Ali, is modest about how he took up running, saying it was merely to “keep fit in the off season” when not playing football. Even Ali’s first half marathon was “nothing serious”,
TELL US ABOUT YOUR OTHER LIFE firstname.lastname@example.org
he says, “just to keep fit”. A badly broken ankle in 2007 was the ironic catalyst for much longer runs, with Ali taking on his first 50-miler in 2008 as a challenge to prove his fitness after the injury caused a lay-off of more than a year. Ali’s most recent achievement is the 137 miles he racked up running the Monarchs Way Ultra before a knee injury forced him to stop. That race also provided Ali with the opportunity to raise funds for the Alexander Devine Hospice Service, one of Covéa Insurance’s partner charities, which supports children with life-limiting and life-threatening conditions. But it’s not just the chance to do good that keeps Ali going. “It’s the challenge of completing the distance, to look back and say, ‘I ran 50 miles, or 100 miles, or 150 miles,’” he says. “It gives you satisfaction.”
ultramarathons completed to date
number of miles run in longest ultramarathon completed
miles run in 2015
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From the shop floor to the top floor Insurance is a vital purchase for any small business, giving you the peace of mind of knowing you’ve covered all the right risks. At askciindy.com you’ll find easy-to-understand tips and downloadable guides – independently produced – on all sorts of insurance, including a special section on business insurance.
Visit askciindy.com Insurance needn’t be complicated. So let Ciindy help your customers navigate the world of insurance.
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askciindy.com @askciindy /AskCiindy
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Retirement Investments Insurance Health
side in championing industry reforms
side to explain how they affect you
From day one we’ve fully supported the changes the Insurance Act 2015 is bringing to the industry. It brings reform that will offer customers greater clarity and transparency around the cover their policies provide. The Act will mean changes in processes and procedures for brokers and insurers alike. We’ve already started by holding broker masterclasses and introducing new clearer policy wording, as well as a ‘Fair Presentation of Risk Guarantee’ for small business risks, so you know exactly what information our underwriters require.
“These reforms will provide customers with more certainty as to the performance of their commercial products. They give the industry the opportunity to demonstrate how we are working to improve the service and security we provide. This will require insurers, brokers and customers to work together effectively.” Angus Eaton MD Commercial General Insurance, Aviva
To find out more about what we’re doing to support you and your clients, speak to your Aviva sales manager.
On your side, by your side Aviva Insurance Limited, Registered in Scotland Number 2116. Registered Office: Pitheavlis, Perth PH2 0NH. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
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