Laurence

Each year, from 18 July to 17 August, a month long celebration takes place marking South Asian Heritage Month. In September East and South East Asian (ESEA) heritage month is marked, while October is widely celebrated as Black History Month. Virtually every month of the year marks some form of awareness month, but why do we have them at all?

Many awareness months are borne out of historical significance. June is synonymous with Pride month, because the Stonewall Riots, a watermark moment in the history of the LGBTQ+ community, took place in June 1969. In the UK, the first Black History Month was celebrated in October 1987 to mark the 150th anniversary of Caribbean emancipation. South Asian Heritage Month (SAHM), begins on 18 July to mark the anniversary of the Indian Independence Act gaining royal assent in 1947, and the month ends on August 17, being the date of publication of the Radcliffe Line, marking the borders of India, West Pakistan and East Pakistan (now Bangladesh).

The historical significance of these months gives the first clue as to their importance in the cultural calendar. They are an opportunity to connect with the past.  Britain has a long legacy associated with many of the countries involved in SAHM, and the South Asian diaspora is the UK’s largest ethnic minority group, estimated at approximately 5.5m, or 9.3% of the population. Nearly one in five Londoners has South Asian heritage.

Jimmy Kumar, our iCAN Birmingham lead and senior client executive at Marsh told us:

“South Asian Heritage month is all about celebrating culture, uniting communities and sharing our stories. Not only do we commemorate the hardship, struggles and sacrifices made by our ancestors but rejoice the rich values, traditions and the sense of identity instilled over many generations. It’s a time to celebrate, commemorate and educate.”

The South Asian diaspora’s contribution to UK culture is ubiquitous, and another reason for the importance of SAHM. South Asian culture is apparent in so many aspects of our lives today, from literature, to clothing, music to food. Even our common language of English is studded with words of South Asian heritage; from “buggy” to “bungalow” to “bangles”, from “punch” to “pyjamas”, or “shawls” to “shampoo”. The opportunity to shine a spotlight on what it means to be British and (South) Asian is a central part of the month, as relayed to us by iCAN Mentoring co-lead Enamul Islam:

“South Asian heritage is so important for me. My cultural background has played a significant role in shaping my career ambitions, my determination to achieve goals, my sense of community and numerous other qualities. As a first-generation British. I have the privilege of embracing and honouring the remarkable heritage of South Asia, while also embracing and cherishing my British values”

The specific timeframes allocated to these awareness months provide a dedicated period for introspection, education, and appreciation. They offer a platform for individuals to delve into the complexities of various cultures, histories, and experiences that have shaped our present. These designated months invite everyone to take a collective journey of learning, dismantling stereotypes, and breaking down barriers. By shining a spotlight on the contributions and experiences of marginalised or underrepresented communities, we work toward a more inclusive society where differences are celebrated rather than marginalised.

At iCAN, we firmly believe that celebrating these diverse backgrounds alongside individuals from all cultures fosters greater understanding. Culture, like business, is forever evolving, enriched by the multiplicity of voices and contributions of all its participants and interwoven into the fabric of society.

Over the next three months, we are busy promoting and hosting events that celebrate the richness of cultural diversity, from our celebration at Marsh of South Asian culture through Dance and Music, and our East and South East Asian Communities Launch event “Roots and Routes” at Convex in September, to the iCAN Black Owned Market event sponsored by BMS Group and Tokio Marine Kiln in October.  These events underscore our commitment to acknowledging our cultural legacies.

In recent months, Keoghs – the legal solutions arm of Davies – has gone from strength to strength, opening a new office in Leeds, reinforcing its team in Scotland and bolstering its credit hire offering with the recruitment of a new partner and team from Plexus Law.

Discussing the trajectory of the business and the next steps on its growth agenda, Andrew Evans (pictured), head of Keoghs’ corporate & sector risk (CSR) practice, highlighted the role having a differentiated claims proposition has played in the business’s success to date. Keoghs started building its proposition in the 2000s, he said, and was first to market with a fully single-source, cross-class claims and litigation solution.

Keoghs growth

That forerunner advantage has paid dividends in the long run, Evans said, as evidenced by Keoghs’ steady growth trajectory amid the current tumult of the legal solutions market.

“It has been a turbulent market for the last two or three years, from a provider’s point of view,” he said. “Historically, our biggest two competitors have been BLM and Plexus. BLM merged with Clyde & Co last year and through that merger, we brought their Liverpool office into our CSR division. That included 21 individuals with a new sector leader, allowing us to diversify into construction and aviation. So that broke up that competitor to some degree and we’ve taken some business from Clyde since the merger.”

Meanwhile, Plexus has been in the news lately, filing a second notice of intention to appoint administrators in late June before it was bought out of administration by Axiom Ince Limited in July. Keoghs recruited a new partner in Anne Chapman from Plexus who brought with her a team of five – all of whom sit within Keoghs’ Tactical Credit Hire division. These movements show the upheaval in the market, he said – a market that is also welcoming new entrants trying to establish their own single-source claims solutions.

“That’s happening because the market recognises that having one solution for all of their claims makes it a lot easier to manage them, to control leakage and, more importantly, to create efficiencies that allow significant savings in claims spend,” he said. “Wherever we’ve taken in new business from a standalone TPA with lawyers and put it into our teams, where the legal team is joined up and acting on the same clients, clients are typically saving double digits on their claims spend.”

Focus on retail

Evans noted that this offering is what has differentiated Keoghs until now and enabled it to support some of the biggest companies in the UK, particularly in retail. Retail is Keoghs’ biggest sector, he said, and it’s now estimated that the firm acts on behalf of over 55% of claims against retailers in the UK. With the data generated from that, the business is able to monitor claims performance and make that bespoke to the individual claims dynamic of any corporate.

“That saves them a lot of money,” he said, “but also that good practice around claims informs their risk management strategies and helps protect them reputationally because if all their models are on the front foot, they’re able to intervene on claims early and manage them in the right way, in accordance with their own claims philosophies.

“And for the brokers and insurers, when the premium is taken to market, they’ve got a much clearer sight around what’s actually going on within their risk, allowing them to place it better, make premium savings and even start to think about more innovative structures and solutions – in the knowledge that the volume and the noise around claims is under control.”

Importance of claims

The idea of claims as the proof-point of an insurance purchase is growing amid changing consumer expectations and increased efficiency drives from insurance businesses. There is an increased understanding that effective claims management is a real opportunity for differentiation, Evans said, and he’s seeing this reflected in his conversations with senior executives working with some global brokers.

“I think if you push them, they do accept that perhaps for too many years now, they’ve thought about claims as a separate issue,” he said. “Whereas I think they now understand that if they want to differentiate within their market, they have to look at all aspects of the total cost of risk.

“[…] I think the industry hasn’t ever really thought enough about how they can actually ring-fence claims spend and bring it down. Now that they’re realising they can do that – but equally that they need to have the data that enables them do that – I think it’s becoming more attractive to them.”

That opportunity is bringing in more players to Keoghs’ ecosystem who are looking to build single-source solutions, but Evans noted that it’s easier said than done. With that in mind, Keoghs has no intention of resting on its laurels, he said, and will continue to capitalise on the lead of its first-mover advantage.

“What differentiates Keoghs’ corporate risk offering even further from our competitors, however, is the opportunity we have to capitalise on all of our capability across Davies,” he said. “Where applicable, this means we can tap into the solutions from the wider business and truly offer end-to-end, one-supplier incident and claims solutions for our clients – alongside innovative insurance programme solutioning.  

“This unique market position allows to bring to market new ideas and solutions, that don’t just help reduce claims spend, and the total cost of risk but they also offer support with the release of capital from the balance sheet.”

On average, the business has seen year-on-year organic growth in the double digits, Evans said, and he expects especially strong results this year considering its acquisitions and rapid expansion.

“But that’s only one part of the story,” he said. “The reason why we are where we are today is that we decided many years ago that we would be very clear in our understanding around our product. We are lawyers and therefore our product has to deliver quality and client satisfaction. And that is more important to us than anything else because, to most of our clients, that reputation is probably worth more than any financial consideration.

“So, if we all get all those bits about reputation, control and being on the front foot of making sure that the claims experience is right, then that’s what matters most.”

What are your thoughts on this story? Feel free to share them in the comment box below.

Global reinsurers are reducing their coverage for medium-sized natural catastrophe risks, according to a report by Fitch Ratings.

This shift is primarily attributed to investor pressure following years of significant catastrophe losses and improved profitability in other sectors of the market, according to Fitch. Even the strongest reinsurers have scaled back their involvement, primarily by tightening their terms and conditions to limit their exposure to aggregate covers and lower layers of natural catastrophe protection. As a result, primary insurers now find themselves with less protection against secondary peril events.

However, reinsurers still offer substantial coverage for the most severe events, Fitch reported. This recent development in the reinsurance market indicates a return to its pre-soft market state, where the focus is on providing capital protection for cedents rather than earnings protection.

The natural catastrophe business has proven to be unprofitable in recent years, as prices have failed to keep up with the increasing frequency, severity, and volatility of weather-related losses caused by climate change. This has significantly diminished reinsurers’ willingness to provide natural catastrophe coverage, especially since other business lines are experiencing price increases that outpace claims inflation. The implementation of tighter terms and conditions for natural catastrophe cover is considered a structural improvement that will enhance reinsurers’ risk profiles in the medium term, Fitch said. These changes are unlikely to be swiftly reversed, even when market conditions change.

According to Aon, insured natural catastrophe costs reached US$53 billion globally in the first half of 2023, which is 47% higher than the 20-year average. Despite this, the 18 non-life reinsurers monitored by Fitch reported robust underwriting profitability in the same period, with an aggregate reinsurance combined ratio of 88%. This positive outcome was driven by price increases in many business lines that surpassed claims inflation, as well as a reduced burden from natural catastrophes as cedents retained more losses themselves. The aggregate ratio also includes moderate losses of 6.7 percentage points from natural catastrophes.

On the other hand, life reinsurance profits have returned to pre-pandemic levels due to significantly lower excess mortality claims related to the pandemic, Fitch reported. Additionally, the performance of investments has benefited from a rebound in equity markets and higher reinvestment rates as interest rates stabilised at higher levels.

The renewals in June and July 2023 showed continued momentum in reinsurance pricing. The US property-catastrophe markets experienced the most significant price increases, ranging from 30% to 75% for loss-hit business and 10% to 40% for loss-free business. In contrast, premium rates for casualty lines remained relatively stable, reflecting the greater capacity allocated to them.

Fitch expects reinsurers to maintain strong underwriting discipline despite higher interest rates, and the hardening of the reinsurance market is anticipated to persist into 2024. However, future price increases are expected to be more moderate compared to 2023, as rate adequacy has generally been achieved through several rounds of hardening since 2018.

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As high inflation and continued cost-of-living pressures continue to bite the balance sheets and budgets of insurance businesses and insurance customers alike, attention is turning towards the link between recessionary times and increased fraud. And while it shouldn’t take recessionary rumblings for insurance fraud to take its rightful place high on risk registers, all too often it does. 

Offering his insights into where the insurance fraud landscape sits today, Rory Yates (pictured), global strategic lead at EIS, emphasised the variety and interconnectivity of the factors at play. Inflation, the fuel crisis, geopolitical tensions, global food shortages and ongoing economic uncertainty are all pain points for the market, he said, and they’re playing out against a backdrop of rapid technological changes enabling complex fraud capabilities.

Take the UK, for example, he said – it’s projected that only £1 billion of the £3 billion lost to fraud each year is even detected. A glance at some of the numbers revealing the scale of the fraud issue globally offers insight not just into the size of the challenge, but also the size of the opportunity it presents to the market. However, he highlighted the importance of recognising that this opportunity is not just about potential cost savings or increasing efficiencies but also has significant implications for making customers’ and claims handlers’ lives easier and better.

Cost-of-living impact on insurance fraud

Interestingly, Yates said, the cost-of-living crisis is not just lending itself to an uptick in opportunistic insurance fraud but also to increased consumer understanding of the impact fraud has on their premiums. And while there’s a significant behavioural science aspect to insurance generally, it becomes particularly clear in the context of insurance fraud.

Where Yates feels some elements of the insurance ecosystem have let consumers down in the past is when it comes to building strong customer relationships founded on a mutual understanding of the faciliatory role insurance plays in communities and societies.

“Up until now, [insurance] technology has let the side down,” he said. “Principally, because within the technology, fraud is essentially done on the side which means it’s disruptive and interruptive to the insurance journey. It hasn’t looked to create that seamless, continuous anti-fraud operation sitting behind every customer interaction that is required.

“Whereas the fraud detection capabilities within our platform – and indeed the wider market – are fully integrated. They’re engineered to be orchestrated into the experience in a way which means you really are creating the best possible path for the best possible people.”

Detecting insurance fraud

Having a high success rate for detection services is important, he said, as it means you’re not inconveniencing legitimate customers in your quest to root out fraud. But even if a follow-up or more information is required, the right fraud detection service will not be disruptive to customers during their insurance journey but rather part of a seamless experience. This allows insurance companies to live out the principle of customers being innocent until proven guilty but also prevents them from losing customers who feel they have been unfairly maligned.

“The reality is that when it comes to opportunistic fraud, you’ve got to assume that a percentage of it is also customers just trying it out,” he said. “They’re thinking ‘maybe if I just ask for it, it will turn out I am eligible’. I’m not saying that ‘give it a go’ approach is without fault, but if you look at a typical insurance policy, as consumers, we don’t really understand what the terms and conditions actually are.

“We haven’t read the 300-page document, and anyway, it wasn’t written in English, it was written in legalese. Again, technology can overcome all of that. Even from my own experience, I have dyslexia and I’ve overcome that in all sorts of ways, often by using technology to do it. And that technology could be provided by the insurer while you’re buying your insurance online. There are all sorts of great technologies that can make it clear what you’re actually eligible for.”

Continuing the insurance journey

Where is the continuous experience in insurance? Yates asked. Beyond the point of purchase, the only time most customers hear from their insurance provider is at the point of a claim. He pinpointed the pervading myth, which is largely touted by the more mature end of the insurance technology ecosystem – that a great insurance experience is when you don’t hear from your insurer.

He understands where that mentality comes from, Yates said, and that it has its roots in the idea that this is indicative of a seamless experience.

“But I’m not an advocate of that mentality,” he said. “I think actually what insurers have to do is the opposite, to form really deep, meaningful relationships with customers because, increasingly, they’re having to be adaptive to people’s lives. I’m always hearing of claims experiences where people weren’t trying to be opportunistic but simply didn’t know what they had to provide to make a claim… And that to me is not a fair way of suggesting somebody has committed fraud.

“I feel like we’re at a tipping point moment because I think there’s enough reason to suggest that the barriers to insurers being good about fraud are no longer there, they just aren’t investing in [fraud capabilities] enough as a strategic asset. And I don’t think insurers should get let off as much as perhaps they have been in this space.”

What are your thoughts on this story? Feel free to share them in the comment box below.

Insurtech MGA Qlaims has announced some further enhancements to its commercial lines claims assistance services. These changes will make the MGA’s Qlaims Insurance for Businesses easier to add to commercial property insurances and with a wider scope, now offering support for clients through new subsidence claims.

These enhancements are aimed at supporting brokers with consumer duty through easier access for cover and less overall barriers. The Qlaims Insurance for Business also provides additional value-add cover, in addition to providing clients with their own claims specialist to prepare and manage their claims for property damage and business interruption above a certain threshold.

The changes will also apply to Qlaims’ home product, which was updated in July, and with a new more competitive rating. It also comes with the partnership with Prestige Underwriting, a collaboration that will provide the latter’s 30,000 Coverall and Thatch clients with Qlaims Insurance as a part of the updated policy wording being launched this month.

“These changes are a key part of our strategy to make this cover more accessible to clients,” said Qlaims CEO Liz Latter (pictured). “The cover must be simple to attach to underlying insurances, without additional barriers around risk or client eligibility.

“Acting on feedback from our brokers we have now also included cover for new subsidence claims; and widened our geographical footprint to risks based in Northern Ireland. To enable brokers to add Qlaims Insurance easily, we understand the cover needs to be price competitive and wide, to complement the underlying policy,” she said.

What are your thoughts on this story? Please feel free to share your comments below.

The insurance-linked securities (ILS) market displayed impressive strength and performance in the first half of 2023, experiencing a record-breaking influx of new issuances, according to a new report from Swiss Re. However, it is worth noting that capital appears to be more disciplined in this period.

According to Swiss Re’s latest ILS Market Insights Report, concerns arose regarding the capacity of the alternative capital sphere to meet demand after Hurricane Ian struck in the third quarter of 2022. This led to a dislocated ILS market at the beginning of the year. Nevertheless, investors worldwide recognized an opportunity and successfully raised funds.

During the first half of 2023, the new issue market shattered records in terms of absolute notional value and the number of deals, the report found. A staggering amount of nearly $9.85 billion was issued. This level of activity in the primary market has been unprecedented, even when compared to historical annual issuance. In fact, the amount issued in the first six months of this year has already surpassed the total issuance for the entire year of 2022. As a result, 2023 is on track to become the fourth highest year for new issuance, Swiss Re said.

The report also highlighted the cat bond market as an alternative and complementary option to the traditional (re)insurance market, particularly during its hardening phase. Notably, the primary market experienced significant activity from both repeat sponsors and new entrants. Six unique first-time sponsors joined the market in the first half of 2023, bringing a diverse range of risks, such as US wind and New Zealand earthquake, to the forefront, Swiss Re reported.

Additionally, the Swiss Re Global Cat Bond Total Return Index achieved remarkable success, mirroring the primary market’s performance. It generated an impressive return of 10.34% since the beginning of 2023, marking a record-breaking six-month period.

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Aston Lark Ireland, a Howden company, has agreed terms to acquire Dublin-based Kegra Limited (Finance Solutions). The acquisition is subject to regulatory approval.

Founded in 2011 by Ken Murray, Finance Solutions is a financial services intermediary specialising in mortgage broking. It also offers tailored financial solutions such as life cover, income protection, investments, and pensions.

The deal significantly strengthens Aston Lark’s offering to the mortgage broking market.

With 40 members of staff, Finance Solutions serves around 7,000 clients and has won multiple awards, having scooped the Brokers Ireland Mortgage Broker Expert award for the last three years in a row.

While Finance Solutions will sit within the Howden Ireland structure, the team will work closely with SPF Private Clients to develop their offering. Howden, the international insurance broker, acquired SPF Private Clients (SPF), one of the UK’s leading mortgage brokers, in 2023.

“I’m delighted to welcome Ken and all the team at Finance Solutions on board. Finance Solutions is a stand-out business in its sector, highly regarded as one of the best mortgage brokers in Ireland, and passionate about delivering the very best outcomes for clients,” said Robert Kennedy, Aston Lark Ireland CEO. “Their reputation and shared value of care, for their clients and their people, make them a fantastic addition to the Aston Lark and Howden business.”

Ken Murray, founder and managing director of Finance Solutions, said the acquisition is a significant milestone and will cement its position as one of Ireland’s leading mortgage brokers.

“Our growth over the past 12 years has exceeded expectations, and this acquisition allows us to further accelerate that growth,” he said.

“It demonstrates the confidence that exists in our offering, our people and in the opportunities for growth within the market here. Aston Lark and Howden’s experience, network and support will enable us to create more choices and an even better experience for our valued customers while still retaining the trusted advice and personal touch for which Finance Solutions is known.” 

What are your thoughts on Aston Lark’s newest acquisition? Tell us in the comments.

The Bermuda Monetary Authority (BMA) has joined Aon business White Rock Insurance (White Rock) to take action over alleged fraud involving insurtech Vesttoo.

The BMA and White Rock have jointly agreed to a course of action in the Supreme Court of Bermuda. The move is intended to pursue “maximum recovery” for insureds affected by alleged fraud involving Vesttoo and fake letters of credit (LOC), the BMA said in a news release on Friday.

The pair have agreed for the Supreme Court of Bermuda to appoint Charles Thresh and Michael Morrison of Teneo (Bermuda) to act as joint provisional liquidators for impacted White Rock Vesttoo cells, the BMA said.

“This action applies only to the impacted Vesttoo Cells. White Rock Bermuda continues to operate in the ordinary course of business, and this action has no effect on any other cells or White Rock Bermuda clients,” the BMA said in the news release.

Vesttoo scandal – what led to BMA and Aon taking action

The Vesttoo scandal, which relates to the emergence of allegedly fraudulent LOCs provided for reinsurance transactions through the insurtech’s platform, has led to some fronting insurance companies being placed under ratings reviews, and at risk of potential downgrades and credit profile weakening.

The source of the fraud is external to Vesttoo, Israeli insurtech Vesttoo has said.

Earlier this week, the insurtech commenced Chapter 11 proceedings as it faced court action in Israel and the US.

“Not only will they result in a strong, more sustainable capital structure, but they will provide us with the platform to aggressively pursue all parties that harmed our business.”

At the World Federation of Insurance Intermediaries (WFII) annual meeting in Amsterdam in 2022, Nic De Maesschalck, our sovereign leader, noted that it was extraordinary that representatives from both the United Kingdom and the United States of America had cited “political instability” as a key concern in their country. It was June. 

At home we were mired in the dying days of the Johnson premiership. In the US, the immediate past-president was doing all he could to stamp his mark on the upcoming mid-term elections by endorsing candidates running for the Republican nomination against incumbent party candidates.  The sense that two of the world’s most stable democracies were in, at best, turmoil was tangible.

Fast forward 14 months and has this problem gone away?

The Rishi Sunak-regime, by restoring the concept of basic competence to the governance of our country, has certainly calmed tensions.  But we are very far from a stable base where industry can plan and lobby to add our expertise to help drive public policy. 

We have spent considerable time over the last few years working with a number of government departments to help develop their net zero strategy. And we have been reasonably successful (I hope) in persuading ministers and civil servants that we are a community with deep knowledge in the area who, with the right incentives, can help deliver very positive outcomes. 

This work is valuable on several levels.  It helps develop compelling solutions for clients – specifically around climate transition and new green technologies.  But it also develops our relationship with government such that, when other subjects arise, they think of us a trusted partners to consult. 

A shifting focus on net zero

But the result of the Uxbridge and Ruislip by-election has, despite protestations to the contrary, seen government appear to retreat from a key focus on net zero. This comes only a couple of weeks after Lord Goldsmith’s resignation letter suggesting that the climate challenge is not at the forefront of the prime minister’s mind. 

Emission zones and low traffic neighbourhoods are in the government’s crosshairs; fossil fuel extraction is back on the agenda. Whilst the science remains the same and so helping clients meet the need to wean themselves off carbon is crucial, it does present a conundrum. Clearly meeting client need must be paramount over flirting with politicians.

But what if the two aren’t mutually exclusive? The issues around regulatory treatment of new technology and potential need for tax incentives to aid green development have not gone away.  But will they be met with as sympathetic an ear as they might a few months back?

Meanwhile, in our largest market, the man facing three criminal trials before the general election next November, is currently, according to the RealClearPolitics average, nearly 36% ahead in the polls for the Republican nomination for President. (Spoiler alert: US polls this far out from election day do tend to be disproportionately influenced by whether people have heard of the candidate, but it is still quite a big number.)

And even conviction in any of the trials is unlikely to preclude him from running for and, potentially, winning the Presidency. The only misdemeanours that would rule that out, I believe, being acts of rebellion as set out in the 14th Amendment and it may be a stretch to include the events of January 6 2021 within that definition.

Which presents another conundrum.  Not wanting to beat the climate drum too much but it is a good yardstick, the difference in environmental stance between a second Biden administration and a second Trump one is likely to be stark. And even if Trump is not successful in winning the nomination, there is a reasonable possibility that whoever does will have had to make significant concessions to the climate hawks to do so. So, again, the long-term interests of clients and the short-term interests of having influence with government might not align.

A chance for the insurance profession to shine?

All of which could come to vex, say, the person running the trade association representing London and international insurance brokers. But I think there is good news. This is a live issue, but managing issues is what this industry is supposed to be good at. 

Indeed, when we returned to the subject at WFII this year, we agreed that a world of heightened risk should be an opportunity for the purveyors of risk management solutions. And we will act on that. 

We will look to engage with the Labour party on this and other topics. And whether January 2025 brings President Biden, President Trump or President Brian Kemp (you heard it here first) we will find a way to ensure our voice still carries weight whilst continuing to do right by our clients. Political instability in UK and US may not be what you would want or expect in 2023.  But break it down to its component parts and it is just another thing we are good at handling.

What goes on behind the scenes of a successful fundraise in the insurance ecosystem? Lending their insights from both an investor and investee perspective, insurance industry stalwart Neil Utley (pictured left) and MD of Percayso Inform Rich Tomlinson (pictured right) each emphasised the blend of timing, trust and opportunity it takes to form a successful funding partnership.

Utley recently led a second major investment into Percayso alongside the insurance data provider’s venture capital investor Praetura Ventures, securing £2.7 million in funding. Contextualising the current environment, Utley highlighted the number of businesses that are failing to secure funding and how Percayso is not just bucking this trend but subverting it by commanding investment either from existing investors looking to invest again or people like himself who have been in the industry for decades.

“I’ve been in this market for donkeys’ years and I partly exited into semi-retirement about eight years ago after listing Hastings but I still kept an active interest,” he said. “Either by keeping up with the Press or through my friends in the market, I am always looking at opportunities. I believe the insurance market in the UK is probably the most disparate but competitive market in the world.

“And there’s always people wanting to start new ventures or expand existing ventures. So, there are always opportunities coming across your desk for funding and support. And to be honest, most of them don’t really have great potential or they’re in a very crowded market where you don’t really see anything different.”

Utley noted that he looks for three key factors in any prospective opportunity – that the people running it know what they’re doing, that he feels he can work with them and trust them, and that he believes their product(s) will make a difference. With Percayso, he said, the team at the top are very well-regarded and respected across the industry and they have a strong track record in creating market-leading propositions and products that stand out as new and innovative.

“Rich and Simon [James, Percayso founder] know the market from having built a successful, market-leading business before,” he said. “But they’ve created [Percayso] from scratch, from the ground up – starting with the Cloud and going down into the bespoke databases and creating something that’s flexible for all brokers, MGAs and software houses to easily integrate into.

“It’s a mixture for me of the team, the space, the opportunity and the product all being fantastic. I’ve seen the team do it before, so it wasn’t a difficult decision. Having turned down virtually everything else I’ve seen, it’s unusual for me to be so excited by an opportunity but I think this is very different.”

It’s not the first external funding raise round Percayso has been part of with the firm commanding a £3.4 million investment led by Praetura Ventures in February 2022. That was a big step for the firm and allowed it to gain a lot more traction in the market, Tomlinson said. In the intervening period, Percayso acquired the automotive data insight platform Cazana – a move which opened it up to a much bigger and broader client base and expanded its product proposition and internal capabilities. 

“But it also opened our eyes to the inherent opportunities and additional potential in the market,” he said. “It made us even more ambitious and gave us the platform for further expansion over the coming years.”

Percayso’s high-profile acquisition of Cazana as well as the expansion of its proposition to deliver a full quote intelligence suite has certainly made it quicker and somewhat easier for the firm to foster the relationships it has across the entire market. However, Utley highlighted that these have served as “acceleration” rather than a redefinition of the firm’s tried and tested growth strategy.

With an eye to where Percayso goes next with this new investment to its name, Tomlinson shared that there are a variety of growth plans on the agenda.

“We’re planning a lot of new product development,” he said. “There’s a lot of new areas that we’re looking to get into. Having all that ex-Cazana data in-house with our Percayso Vehicle Intelligence offering has sparked a lot of new product development ideas around where we could take that next.

“Equally we’re looking at our core platform and the amount of data we’re collecting on a daily basis now with 10s of millions of quotes and policies [feeding in] huge amounts of information about vehicles and individuals. That just leads to more and more opportunities to create new products out of that for things like verification, fraud detection, and understanding your policyholders and customers as an insurer.”

New product development is a core area of focus, he said, but that doesn’t mean that Percayso will be taking the eye off the ball when it comes to its existing platform. Making sure that core platform continues to be resilient and high performing is essential because customers rightfully expect a lot from Percayso as a partner in terms of how it supports them.

“We’re very proud that we’ve had 100% uptime, bearing in mind the amount of transactions we’re doing, and the resilience we need for that kind of capability,” he said. “There’s never been any outage or downtime. We’re pretty proud of that and obviously we want that to continue so we need to continue to invest in the platform so there’s lots of plans there.”

Having access to Utley’s 30-plus years of insurance expertise will also be “hugely invaluable”, Tomlinson said, and he noted that he’s already received affirmation from the market of the natural fit represented by the partnership.

“My role is to help where they need it,” Utley said. “I don’t pretend to be an expert on what Percayso are doing, they’re the experts on what they do. What I can do is be a sounding board for ideas and ask pertinent questions on monthly board packs and help Simon on structuring things and things like that.

“But I’m not interferer of good businesses. I’ll help them with the issues that they will inevitably have at various times, because I will have probably been in a similar place before at some time or another. My role is very much as a helper and a coach, doing whatever I can to help while not interfering in the business plan. They’ve got a very strong strategy and plan, and I’ll just be helping them put it into place.”

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