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Nearly £1.2 billion – £1,183,788,990, to be exact – has now been paid by insurers following the business interruption (BI) test case in the UK, according to the latest numbers published by the Financial Conduct Authority (FCA).

FCA’s November update shows £312,215,762 in initial or interim payments, while the total value of compensation for BI claims where final settlements have been agreed and paid stands at £871,573,228.

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“It has been my privilege to work with Charles Brindamour since I joined the organisation in 2019,” said The Geneva Association managing director Jad Ariss. “I am very pleased that Christian Mumenthaler has accepted to become the chairman of The Geneva Association and am grateful to the board for running the succession smoothly.”

Ariss continued: “I look forward to working with Christian as new chairman and Lee Yuan Siong as new vice chairman. I also warmly welcome Amanda Blanc as new board member.

“Together with the rest of the board we will ensure The Geneva Association – through its programme of research, discussions, and outreach – continues to provide meaningful support to the insurance sector in its mission to make the world a more sustainable, equitable, and resilient place.”

Aside from the Swiss Re and AIA CEOs, also part of the board’s executive committee are Munich Re’s Joachim Wenning, who serves as treasurer; Allianz chief Oliver Bäte; and Tsuyoshi Nagano, chair of Tokio Marine.

Commenting on his new position, Mumenthaler stated: “I feel privileged to take on this role at such a crucial time for both our industry and society more broadly, as re/insurers mobilise to confront immense challenges, namely climate change and the after-effects of COVID-19.

“I thank Charles Brindamour for his outstanding leadership over the past three years. Under his chairmanship, The Geneva Association has deeply transformed. Through its rich portfolio of research and dialogue activities, the organisation makes an essential contribution to the debate on strengthening the world’s resilience to global risks.”

Mumenthaler added that he looks forward to further increasing the impact The Geneva Association has for all its stakeholders.

Also honoured to be appointed, the organisation’s new vice chair commented: “The enormous positive difference that insurance can bring to the lives of our communities has never been more relevant than it is today.

“I look forward to collaborating closely with Christian and members of the board as we work together to address the global strategic and risk management issues facing our industry, while playing our part in the transition to a better, more sustainable future.”

The other board members, alongside Blanc and Brindamour, are Thomas Buberl (AXA), Philippe Donnet (Generali), Antonio Huertas Mejías (MAPFRE), Denis Kessler (SCOR), Michael Khalaf (MetLife), Charles F. Lowrey (Prudential Financial), Anna Manning (Reinsurance Group of America), John Neal (Lloyd’s), and Alejandro Simón (Grupo Sancor Seguros).     

“I look forward to working with Christian, contributing to The Geneva Association agenda and supporting the critical role which the global insurance industry plays in the resilience of our economy and society,” said Blanc.

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UK-headquartered financial services group Prudential Plc, which describes itself as “Asia-led,” could be heading East in search for its next chief executive.

A report by The Sunday Times said the company has begun the process to look for the successor to group boss Mike Wells, who is credited with transforming the organisation.

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Aston Lark has once again demonstrated its acquisitive prowess by welcoming Innovation Broking as the latest addition to the group. Innovation, which was founded in 2015 by Paul Dickson and Howard Pearson, is an independent corporate insurance broker and employee benefits adviser which boasts a team of 30 staff.

The corporate broker specialises in larger risks, global programs, and private equity-backed businesses, with particular expertise in the technology, health, film and TV, and charities and care sectors. Commenting on the deal, Peter Blanc, Aston Lark group CEO, noted that he has known Dickson for many years and that his reputation in the market as a broker and a leader is “outstanding”.

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The business quickly found its footing, she noted, moving to establish a variety of procedures to make the home working experience as pleasant as possible for everybody involved. If anything, McDonald said, the last 18 months have really brought the separate teams that make up the UK & Ireland business together, and virtual meetings have actually strengthened the relationship between the London office and its regional counterparts.

“COVID has caused so much destruction and damage to people’s families but in terms of our working environment, it has made us all closer, rather than pulling us apart,” she said. “And that’s at every level [of HDI Global]. We didn’t used to do global town halls and now we do, and everybody joins those from all over the world. So, I think we need to keep the good things going forward. For my local town halls, people have voted they don’t want to have them in-person anymore, they will continue to be virtual because it’s actually a lot easier to ask a presenter questions that way, there’s an approachability around it.”

While other businesses have understandably tapped the brake during the tumult of the COVID crisis, McDonald and her team have moved the business forward. It recently launched its inherent defects insurance proposition, as well as establishing a marine cargo business line, and has maintained its focus on forming and leveraging strong industry relationships.

Read more: HDI UK establishes marine cargo business line

For the rest of the year, the focus will be on pushing through with marine, and also with the ongoing reshaping of HDI’s Irish presence. Traditionally, she said, HDI has been a property-casualty player in Ireland, so now it’s about bringing other lines of business such as engineering, motor and marine into the Irish market in a more meaningful way – an ambition that has already made good headway.

It has been a busy year for the UK & Ireland team who, in addition to the changes outlined above, were delighted to receive approval from the PRA at the end of September, which has seen the business exit the temporary permissions regime. For McDonald, however, there’s no reason to slow down the trajectory HDI is on, buoyed by its great security and world-class treaty reinsurance facilities.

Looking forward, she noted that she sees no reason why the business can’t grow further, aided by its stable, long-term client base and its reputation among brokers for dealing with very technical propositions.

“We’re known by the brokers for tending to do more on the heavy end than the vanilla end,” she said. “But there’s no reason why we can’t do some vanilla as well along the way and that we can’t be a little bit more ambitious about what we’re doing. Because sometimes what you need is just a little bit more of that self-belief.”

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Generali Group has posted an operating result of €4.4 billion (around £3.766 billion) in the nine months to September 30, 2021 – a 10% increase from the same period in 2020.

The firm credits the “strong increase” in the operating result to the performance of its life, asset management and holding, and other businesses, as well as the “resilient contribution” of its property and casualty (P&C) segment, despite the higher impact of natural catastrophe claims.

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MNK Re Limited has launched a new business that is focused on the UK wholesale and retail space.

The new MNK Re UK Specialty business creates a wider category of risk solutions, and will initially focus on developing “unique wholesale and high net worth lines,” a company release said. To lead this new team, MNK Re has tapped Grahame Lamb, Richard Daws and Jonathan Britton.

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“This has been a core part of the last four BIBA Manifestos, so we are delighted to see such a positive direction of travel. We also support Government’s proposal that the FCA (Financial Conduct Authority) report on their performance against their growth and competitiveness objective on an annual basis.”

The new 75-page consultation paper – which makes a series of proposals aimed at delivering the intended outcomes of the FRF Review – sets out the response of the government to the feedback gathered from October 2020 to February 2021. The second consultation will close next year, on February 09.

London & International Insurance Brokers’ Association (LIIBA) chief executive Christopher Croft, meanwhile, had this to say: “These proposals provide many of the right ingredients for a vibrant commercial insurance sector to flourish in global markets, but the proof will be in the pudding that Government and regulators bake from these.

“As most of our members’ business is international, we particularly welcome the proposal for a specific ‘growth and competitiveness’ mandate for the regulators. And it is especially welcome that this is to be an objective with teeth in that FCA will be asked to report on its adherence to it annually.”

As of this writing, the Financial Conduct Authority has not issued a statement in response to the newly released policy document.

“Exports by Lloyd’s brokers in London’s specialty insurance market generate a contribution of around £37 billion to UK GDP (gross domestic product), one quarter of the contribution made by the City of London as a whole,” added the LIIBA CEO.

“We face significant and growing competition from the other centres and from emerging markets. The current regulatory framework has evolved into a disproportionate regime that has added unnecessary burden and cost to the commercial insurance sector, particularly for those serving large, complex, and international clients.”

Croft went on to commend the Treasury for seeking to design a regime that he believes will maintain the UK’s global competitiveness and export revenues. In LIIBA’s view, said Croft, this approach is a step in the right direction.  

London Market Group (LMG) chief executive Caroline Wagstaff also had positive remarks in relation to the review, which was set up to examine how the financial services regulatory framework should adapt to be fit for the future, particularly in the context of the UK being no longer part of the European Union.

Wagstaff stated: “The speciality commercial insurance industry, along with many other sectors of the financial markets, has highlighted the need for a competitiveness remit for the PRA (Prudential Regulation Authority) and FCA for some time. It will maintain robust regulatory protections while enhancing our global offer.

“We are pleased that the government has listened to the London Market Group and our members’ long-running campaign that this is best achieved through a statutory objective for the regulator – this will send a positive message to the world that the UK is open for business and welcomes new investment and trading opportunities.”

To help develop the proposals further, Wagstaff said the LMG will continue to work with the government and across the commercial insurance sector in the next phase of the consultation.

Comments from the Association of British Insurers (ABI), however, indicate that the trade body isn’t entirely pleased with the proposed changes, which it views as inadequate. 

“The second consultation on the Financial Services Future Regulatory Framework Review has the right intentions towards creating a regime that is fit for purpose, but it could have gone further,” declared ABI director general Huw Evans. “If the government wants the UK to compete on the global financial stage, then we need a regulatory framework that matches the same vision.

“It’s disappointing to see the consultation published today (November 09) recommends a new growth and international competitiveness objective that will only be a secondary objective for the PRA and FCA. This does not go far enough, as regulators will always put primary objectives above secondary ones.”

Evans continued: “We have a unique opportunity to boost competitiveness, attract overseas capital, and promote the UK as a world-leading financial services hub, but unless regulators have economic growth as a primary objective, we are not convinced anything major will change.”

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If the All-Party Parliamentary Group (APPG) for Mutuals could have its way, it would rather have mutual insurance giant Royal London snap up Liverpool Victoria Financial Services Limited (LV=) instead of the latter being acquired by private investment firm Bain Capital Credit LP.

⁦@RoyalLondon⁩ offers hope for @lv members. Clearly this would be the best outcome for preserving mutual ownership as the alternative to private equity. Vote no to Bain.https://t.co/eouHOTnhNs

The APPG’s assertion comes amid new reports that Royal London – which declined to comment when contacted by Insurance Business earlier this year about its supposed LV= bid – is mulling reviving its offer to become the new owner of the savings, retirement, and protection group.

LV= recently published a Member Vote Pack to outline what it said are the expected financial benefits for members if the Bain Capital deal gets the go-ahead. A report by The Times suggests that Royal London might step in if LV= fails to secure support from its members.

Two votes are happening on December 10, at LV=’s members’ meeting and a special general meeting.

“Bain Capital was the only option that offered both an excellent financial outcome for members and gave unrivalled support for the LV= brand, our people, and locations,” stated LV= chair Alan Cook last week. “While none of the bids would have allowed LV= to remain as a standalone mutual, this deal provides the highest distribution to With-profits policyholders compared to continuing with ‘business as usual’ or closing to new business.

“We urge members to carefully read the information in the Member Vote Pack and join our upcoming webinars. The board and I truly believe that this is the right way forward, enabling us to embark on the next exciting chapter of the LV= story, and recommend that members vote in favour of our plans.”

The APPG, as indicated in its tweet, is strongly urging LV= members to vote against the £530 million transaction. Gareth Thomas MP, the Labour (Co-op) MP for Harrow West who chairs the mutuals APPG, has been a staunch critic of the proposed acquisition.

In October, the Financial Conduct Authority (FCA) confirmed its non-objection to LV= putting its proposal to member votes.

Meanwhile Thomas, according to the Daily Mail, told the regulator on November 08: “It is now clear that the two most valuable bids received by the Liverpool Victoria board were from Bain Capital and crucially, another mutual, Royal London.

“Will you confirm what many have explicitly suggested; that Royal London offered more money than Bain Capital?”

As of this writing, the FCA has not issued an update to its earlier statement on LV=.

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COBRA London Markets, which was acquired by PIB Group in late 2019 and has been operating alongside sister firm Citynet Insurance Brokers since then, is now known by the latter’s name.

“I am very proud of the heritage provided by COBRA London Markets, and I’m equally excited about the future, by presenting our proposition to the market under a single brand,” said Citynet managing director Andrew Walsh, who leads the combined business.

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