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AXIS Insurance, the specialty insurance segment of AXIS Capital Holdings, has appointed three new senior underwriters to its capital risk solutions (CRS) team, effective immediately.

Jim Parker and Richard Jelf have moved to London from Bermuda and Singapore, respectively, to grow the company’s project finance and aircraft financial portfolios, strengthen existing relationships, and drive business growth.

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A management information (MI) and analytics leader, Barclay has notable expertise in leading complex analytical and regulatory projects and a wealth of experience across operations, building, and embedding IT and business solutions and delivering digital transformation programmes.

In her new role at McLarens, Barclay will oversee a team of data professionals and lead the development and implementation of the firm’s strategy around data capture, processing, and delivery and championing a data-driven decision culture across the global business.

She will also encompass everything from data governance and quality through to analysis and visualisation, with responsibilities including developing the firm’s predictive analytics modelling capabilities.

Working with McLarens One, the firm’s end-to-end global claims platform, Barclay’s team is expected to drive innovation and facilitate the delivery of global data sets and dashboarding, utilising data mining, predictive modelling, and machine learning to support insurer and broker clients in modelling around indemnity spend, emerging risk, and claims handling.

 “Better data drives better decisions and outcomes for all stakeholders, and this vital role demonstrates our commitment both to client delivery and to our wider digital strategy, in which we are making significant investment,” said Graham Smart, chief commercial officer at McLarens. “The way that we collect and distribute information to clients is rapidly evolving, improving the speed and quality of our client response, and allowing for better loss estimates, reducing indemnity spend, and facilitating a quicker resolution of claims.

“Jennifer is a true leader in her field and is highly experienced in cutting edge technologies, as well as all aspects of regulatory compliance. Her experience of working with brokers and insurers in this regard will be hugely beneficial.”

Barclay will be based in London and reporting to Adam Weiner, the SVP Technology Strategy and Operations at McLarens.

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We are just over a week away from closing the window for nominations for Insurance Business’s 5-Star Corporate Social Responsibility Awards.

This showcase celebrates companies in the insurance industry that have developed effective CSR programs that help communities, the economy, and the environment.

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Read more: Gallagher’s Peter Matthews on the “turbocharge” effect of Bollington acquisition

“Clients will continue to have the same day-to-day contacts at Bollington, who understand their individual business and insurance requirements, but will benefit from the global scale of Gallagher, its expertise across 32,000 global employees, 5,000 of which are based in the UK, plus increased product choice and buying power,” the firm said in a statement.

Michael Rea, chief executive officer of Gallagher’s UK retail division, said that he was “very pleased to reach this key milestone, having acquired Bollington in February.”

“We knew from our very first interactions that Bollington would be a great fit with Gallagher and by bringing our brands, teams and expertise together, clients will benefit from broader knowledge, products and access to markets,” he said. “We are committed to investing in our team in the North West, as part of our UK wide network, and we look forward to adding further capability to Bollington’s existing specialisms.”

The Bollington acquisition saw Gallagher take on 420 new employees and 230,000 customers across mid-market commercial, niche lines, and SME & micro-SME businesses, as well as personal lines. It also added a significant North West presence to Gallagher’s existing UK nationwide office network.

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McCafferty, whose time in the insurance profession has seen him take on several leadership titles – including as chief executive of Brightside, CEO of AXA Insurance and president of Willis UK & Ireland – highlighted in an interview with Insurance Business that he was drawn to the “great spirit” of NPAI and how this was reflected in the values and purpose of its team. What the team is doing and the way that it’s doing it displays a lot of creativity, he said, and so it has felt like a natural fit.

Non-executive roles such as this often come about through connections with a wider insurance network, he said, and he has worked very closely in the past with several non-executive directors on the board of NPAI. Through that network, the opportunity first emerged and, having followed the business with interest for some time, as that conversation became more serious he got to know more about the team and quickly recognised the substantial variety of values they shared.

“It’s a very purpose-led organisation, which I’ve been passionate about for a long time,” McCafferty said. “They’re really clear about the value that they add in the pharmacy space, which of course, is front and centre these days when you consider the health care response to COVID and other issues as well. [This area] has such an important role to play in society right now and I know NPAI is truly valued for what it does, which tells you a lot about how they’re regarded and what they’re good at.”

Read more: Peach Pi launches industry collaboration advisory forum

It’s a business that has been operating for a long time and is very clear about where its core strengths lie, he said. Now, from this strong platform, it is looking to grow and expand into the intermediated market with a set of products for related trades and professions, and he appreciates that Peach Pi’s emphasis is on building on its core niche and capabilities. McCafferty believes there is a real opportunity for growth for the business by leveraging its operational strengths for the benefit of all its next steps.

“I just found that pretty captivating, I really like the people involved and I wanted to get involved so that’s how it happened,” he said. “And I’m already enjoying being part of the conversations that they’re having about getting a stronger foothold in the broader intermediated broker market.”

From his time in the intermediated market, McCafferty has seen that the most important thing for any broker these days is knowing that they can rely on expertise, service and response from their insurer. Peach Pi is well-equipped to do that, he said, which is evidenced by the foothold it has in the market already. More broadly, however, it is a troubled market and it’s quite difficult for insureds sometimes to get coverage at a sensible price, particularly in PI markets.

“The opportunity to trade with a new market, I think, ought to be quite exciting to a number of players,” he said. “It’s still early days of course, but the team have already done a great job, and are trading with 20 brokers through Acturis on e-trading platforms. So they’re off to a very good start by [focusing on] those freelance and professional businesses. And it’s mostly the wellbeing and lifestyle sector that they’re concentrating on, one which they legitimately understand because it’s a similar space to the one that they’ve occupied for so long.”

Read more: Kaufman Group on growth and customer centricity

For McCafferty, customer centricity and the need to have this at the very heart of business operations and decisions has long been a key value and he is delighted to have this mirrored so closely by Peach Pi. The core belief of the business is to be clear about the purpose that it serves, where they can lend expertise, and what contribution they are making, he said.

“That’s the kind of things all businesses should be doing,” he said. “And I think the regulator customer, apart from anything else, is going to demand that focus on value over price. It’s about being really clear what value you’re adding, how you’re adding it, what capability that reflects and how that turns into a trustworthy proposition for the customer and the client. It’s all very related, and it has to do with the professionalism and the culture of the organisations in which we work and in which we lead.”

For McCafferty, his non-executive position with NPAI reflects an extension of the conversations he has long been having across the marketplace. Those conversations around scale and niche and digital advancements are still strong themes across the insurance profession and he is passionate about continuing them.

“And then, of course, for me, it’s about being back in the world of being part of a carrier,” he said. “I love broking so much but I did miss that, and there are some technical things that you do miss about being involved with an insurer. So I am pleased to get back into that as well but mostly I’m excited about what this business is doing, its specialism and getting out into the broking market, which I’m looking forward to helping them with.”

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It is big news from the Chartered Insurance Institute (CII) today, as the association has announced that Sian Fisher (pictured), CEO, will be stepping down next year after more than six years leading the professional body. Fisher, who was first appointed CEO in 2016, will complete a six-month notice period and depart on March 31, 2022.

In a Press release, the CII noted that during her tenure as CEO Fisher led the modernisation of the CII, resolving several complex and historic issues, in addition to overseeing the delivery of a new Manifesto, CII strategy, IT transformation and a substantial culture change programme. Discussing her experience as CEO, Fisher highlighted that when she joined the institute in 2016, she made a commitment to modernise the organisation to ensure it is “fit for the future” and able to support the vital role its members play in society.

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TMMA is a managing agent in Australia for Tokio Marine & Nichido Fire Insurance (TMNF).

In May, Lex Greensill blamed Tokio Marine’s non-renewal of Greensill’s trade credit insurance coverage for his company’s demise.

“It is deeply regrettable that we were let down by our leading insurer whose actions ensured Greensill’s collapse,” he then told Members of Parliament in the UK as part of a House of Commons probe.

Guy, meanwhile, is said to be staying at TMMA and will report to Strong in his new capacity as executive director.

The Financial Times cited Tokio Marine – which did not extend Greensill’s policy due to supposed concerns – as saying that the soon-to-be ex-CEO will continue to play an important role, part of which will be focussed on supporting the operations of BCC.

Earlier this year, the insurance group stated in a clarification: “Trade credit insurance does not cover the liability of the policyholder nor the insured; rather it covers the accounts receivable of the insured.

“Hence if Greensill were the insured, trade credit insurance would cover what Greensill is owed, rather than what Greensill owes others. As such, in that case, the insolvency of Greensill does not crystallise any exposure for TMNF.”

It was in the middle of 2020 that BCC notified Greensill and its broker that it would not be renewing, increasing limits, extending, or underwriting new polices for the business.            

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Ranking	UK experts	UK general public
1	Climate change	Climate change
2	Cybersecurity risks	Pandemics and infectious diseases
3	Pandemics and infectious diseases	New security threats and terrorism
4	Geopolitical instability	Cybersecurity risks
5	Natural resources and biodiversity risks	Pollution
6	Social discontent and local conflicts	Natural resources and biodiversity
7	New security threats and terrorism	Chronic illness
8	Financial stability risks	Geopolitical instability
9	Macro-economic risks	Social discontent and local conflicts
10	Risks related to artificial intelligence and big data	Financial stability risks

  

Globally, risk experts see climate change as the biggest risk within the next decade; the general public, pandemics and infectious diseases. For this year’s report, AXA polled 3,448 experts from 60 countries, as well as 19,000 adult members of the public from 15 countries. Of these, 400 experts and 1,001 members of the public were based in the UK.

Commenting on the UK survey results, AXA UK and Ireland chief executive Claudio Gienal said: “At a time when life has been dominated by other important issues, such as the COVID-19 pandemic and economic instability, it is perhaps surprising that climate change would top the list.

“However, this clearly demonstrates that for many people climate change is a very real risk which is fast approaching, if not already upon us. There is no doubt that climate change is one of the most serious and damaging risks we as a global population face, so it’s encouraging that this has been acknowledged as the number one risk in the UK.”

Gienal highlighted that there’s a “real opportunity here for everyone” to collaborate in helping mitigate both present and future risks.

“The message from this report is clear,” added Sean McGovern, chief executive of UK & Lloyd’s market at AXA XL. “UK risk experts and the broader population believe the UK government needs to put climate change front and centre.

“London is recognised around the world for its insurance and risk expertise and is renowned for its experience in addressing the most complex, emerging risks. It has a dual role to play; both by supporting our clients and local communities in tackling the immediate impacts of climate change and – through the work being done within the London market and Lloyd’s – by helping to create climate resiliency around the world. This is an opportunity that we cannot afford to miss.”

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Brit Ltd, a global specialty (re)insurer and subsidiary of Fairfax Financial Holdings Limited, has announced that its group CEO, Matthew Wilson, is taking an indefinite leave of absence due to health reasons.

The Brit team have extended their well wishes to Wilson and look forward to his return. Prem Watsa, Fairfax Financial Holdings chairman and CEO, said: “Our thoughts and prayers are with Matthew Wilson and his family as he begins a program to fully regain his health. He has our full support during this challenging time, and we look forward to his return.”

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“I’m really delighted, and I smile again to report that Lloyd’s successfully repositioned the market for sustainable profitable growth, as evidenced in our strong set of financial results.”

Keese joined Lloyd’s as CFO on April 01, 2019, after a 14-year stint with German insurer Allianz Group, where he was chief financial officer of Allianz Deutschland AG, which handled over €34 billion (£30 billion) in premiums. His appointment came at a pivotal time for the 335-year-old marketplace after two years (2017 and 2018) of poor results, where Lloyd’s was plagued by loss-making businesses and weak investment returns. So, Keese’s mandate was clear: steer the market back to profitability – and so far, things are looking good.

In 2018, Lloyd’s launched its ‘Decile 10’ initiative, aimed at bringing underperforming syndicates and classes of business (including marine hull, cargo and yacht) back to profitability. Failure to do so would result in plans being rejected and classes of business and syndicates being closed down.

“We have worked together with the managing agents and syndicates over the last three years in our Decile 10 remediation program to improve underlying performance and to restore profitability,” said Keese. “The good market conditions gave us tailwinds. [In H1 2021], we recorded a moderate growth [in profit] of around 2%, where rate changes of roughly 10% were offset by remediation portfolio and foreign exchange. We allowed for selective and profitable growth and pushed unprofitable syndicates once again out of the market.”

The market’s underwriting result of £963 million, and investment result of £628 million, resulted in a profit before tax of over £1.4 billion, and a return on equity of 10.3% for the half-year period. Furthermore, its combined ratio – excluding COVID-19 – improved by nearly 5% to 92.2%.

Regarding COVID-19, Keese said the market has paid out 80% of notified claims, and it still holds over 50% of incurred but not reported (IBNR) reserves for losses that could manifest as a result of the pandemic but have not yet materialised or been reported.

“Our combined ratio and return on equity are very much in line with the reported figures of our global peer group,” Keese commented. “The drivers for this much improved underlying performance are the 2% improvement of the attritional loss ratio, and the 1.9% improvement of our expense ratio. The expense ratio improved even by 3.7% since 2017 as a result of the market’s collective efforts to reduce expenses.

“Expense management will remain a key area of focus for our managing agents and syndicates in the upcoming planning season. The restoration of our profitability was driven by our strong management actions over the last three years, and now we must ensure that we continue our cause of decisive management. There will be further action to improve our profitability [as] we are not yet where we want to be.

“We will do more work with the market to ensure all syndicates become profitable. […] We will continue to focus on measuring and managing price adequacy. The current favourable market conditions will not remain forever, and the market must be prepared by developing market-leading pricing tools and cycle management.”

Keese emphasised that it is a combination of rate increases and remediation that has helped to restore underwriting profitability at Lloyd’s. Since 2018, managing agents and syndicates have remediated nearly £7 billion, or 20%, of premiums. In the first half of 2021, the market removed unprofitable business amounting to approximately 6% of premium, which then enabled 4% of volume growth, the CFO explained.

“If we look at the portfolio of syndicates, it is clear that we have moved in the right direction. The top quartile of the syndicates belongs to the best underwriting firms in the world,” he said. “However, at the same time, we won’t tolerate loss making syndicates, particularly in current market conditions. Fifteen per cent (15%) of syndicates do not have the profitability we expect to see, and these syndicates must be remediated or the future at Lloyds is unsustainable.”

The Lloyd’s balance sheet is “in very good shape,” Keese added, showing an increase of 8% in net resources to £36.5 billion in H1 2021 – a total that has been buffered by a five-year £650 million ($897 million) reinsurance cover for its Central Fund, financed by JP Morgan and a panel of eight of the world’s largest reinsurance companies.

“In addition to protecting the Central Fund, the cover will create a significant buffer against adverse solvency developments. It is expected that the new cover will increase Lloyd’s central solvency ratio significantly,” said the CFO. “The capital buffer will also facilitate growth opportunities against the backdrop of current favorable market conditions. This unique and innovative structure will enable us to support market growth ambition over the next few years, while also strengthening the resilience of our balance sheet. Our capital position is now more resilient than ever.

“Our balance sheet is very robust with superior equity, solvency and reserve positions, as well as prudent asset allocations,” Keese added. “Capital management is key and will be continued to maintain our very competitive capital position. Our disciplined underwriting approach, and the continued positive rate momentum sets us up for a strong future. However, we still have work to do and will remain focused on pricing adequacy and further retaliation of unprofitable syndicates.” 

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