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London-headquartered managing general agent CFC now offers multi-product capability on its Connect trading platform, allowing brokers to get bindable quotes across multiple commercial specialty lines insurance products by answering a single question.

The move means that, aside from the SME cyber cover that CFC is known for, users of the Connect platform can now also auto-rate and bind admitted professional liability and technology errors & omissions policies. Without underwriter referral, rates and limits can be adjusted by brokers, and cover elements can be selected.

CFC chief executive Graeme Newman said in an emailed release: “Our proprietary technology interrogates numerous data points to ascertain business characteristics and interpret more accurately what a business does and its exposure to various risk factors. Combined with our 20-plus years of underwriting and claims data, this enables us to price the risk accordingly in milliseconds without any human interaction.

“Our unique advanced intelligent automation systems go beyond what has been achieved to date in the commercial specialty market. We’re now expanding our dynamic autonomous underwriting capability across multiple lines of business, making our brokers’ lives easier and the whole process frictionless and more efficient than anything else in the market.”

The first trading platform to offer single-question quoting for commercial specialty lines insurance, Connect has delivered more than US$100 million in cyber premium since its launch in 2020.

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Insurance apps are gaining momentum in the UK as one in 10 adults use Android apps to manage their insurance policies.

This is according to analysis conducted by app marketing analytics platform App Radar on insurance apps available on the Google Play Store. Focusing on the motor, travel, life, and home insurance sectors, the study found a 40% increase in app downloads in 2022, amounting to 2.2 million downloads compared to 1.6 million in 2021.

As of the end of 2022, the lifetime downloads of insurance apps on the Google Play Store in the UK had reached an estimated 6.9 million. If Apple App Store downloads were taken into account, the total figure for 2022 could be as high as 13.8 million, the study noted.

App Radar’s analysis also shed light on the most popular insurance apps in terms of lifetime Google Play Store downloads. Topping the list was Hastings Direct Insurance, with 1.2 million downloads, followed closely by Cuvva with 1.1 million and Holiday Extras with 1 million. MyAviva and MyRAC also garnered significant traction with 652,000 and 648,000 downloads respectively.

Additionally, several insurance apps witnessed substantial growth in downloads from 2021 to 2022. Post Office Travel experienced an impressive increase of 256%, followed closely by Travel Mate – Cedar Tree with 249%. Holiday Extras, Dayinsure, and Rooster Car Insurance also showcased substantial growth percentages of 190%, 100%, and 91% respectively.

Further examination of the data revealed the top five apps in terms of 2022 downloads. Hastings Direct Insurance led the pack with 392,000 downloads, followed by Holiday Extras with 373,000. Admiral Insurance, MyRAC, and Cuvva rounded out the list with 246,000, 201,000, and 170,000 downloads respectively.

App Radar managing director Silvio Peruci highlighted the significant growth potential of the insurtech sector, citing reports that have estimated that the global insurtech sector will be worth almost $30 billion by 2026 from $8 billion in 2021.

“For the UK specifically, the market is ripe for growth with an estimated £50 billion potential revenue opportunity from disruption,” said Peruci.

Peruci also highlighted the need for established incumbents to adapt to the changing landscape, as insurtech startups strive to revolutionise the industry through innovative technology.

“Startups in this area are hungry to disrupt and make insurance easy for their customers with new tech,” he said. “Cuvva, for example, is the second most downloaded insurance app in the Google Play Store, according to our analysis, with DriveScore, Caura, Dayinsure and Rooster joining the race for app users.”

With the ongoing cost-of-living crisis, Peruci said insurance companies are facing intensifying competition to attract new app users, especially since consumers are used to shopping around for the best quote when it comes to their insurance policies.

“One way to retain and gain customers is to offer the best user experience and features that they need, in addition to competitive policy pricing,” he said. “As the insurtech sector continues to grow in uncertain economic times, app developers and marketers will need to undertake thorough market research to understand their customers’ needs to be able to cut through the noise.”

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AXIS Capital Holdings has announced the appointment of Rebecca O’Kill as chief data and analytics officer. O’Kill will be based in London and will report to Dan Draper, chief underwriting officer at AXIS.

In her new role, O’Kill will oversee global data strategy and governance across the company, as well as its analytics operating model. She will also help to deliver business intelligence and insights to support the underwriting process.

“Rebecca is a proven global leader in data and analytics who brings a deep understanding of driving value in specialty insurance, informed by her actuarial experience and background,” Draper said. “Her leadership and perspective will be invaluable as we continue to enhance our usage of data and analytics to empower our team and further strengthen the speed and service that we provide to our brokers and customers.”

O’Kill joins the company after 16 years with Beazley, where she held a variety of leadership roles including interim chief data officer and head of actuarial analytics.

Earlier this month, AXIS announced the appointments of Mark Gregory as head of global markets and Michael J. McKenna as head of North America. Last month, the company named Megan Watt as chief claims officer.

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Following a successful BIBA conference for iCAN this month, it was apparent how important networking is to us all, both personally and professionally.

In today’s interconnected world, networking is no longer just an option – it is a necessity. This is especially true in the diverse and dynamic landscape of UK insurance, where varied perspectives help stimulate innovation and influence product development.

In an exclusive conversation with iCAN, Peter Blanc, head of M&A at Howden Group Holdings, told us how networking is an essential part of his professional life: “When businesses are looking for talent to hire, or experts to use for a particular job, or when they need a service they will inevitably think firstly about people that they’ve met and interacted with.

“Anybody that runs a business or has aspirations to run or grow a business would be very well advised to get busy on the networking front – the more people that know you, the more opportunities will come your way; it really is as simple as that!”

The UK insurance industry is a vibrant blend of sectors, each bringing its own unique insights and expertise. When harnessed effectively, this diversity can be a significant asset. This is where the power of networking comes in.

In a conversation with Yasmin Carter-Esdale, iCAN partnerships lead and schemes account executive at Hiscox, she told us: “Insurance is a people’s business, built on both the connections you make and relationships you build.

“Networking is key to driving success for diverse groups as it allows them to build their professional network and further amplify their name within the insurance industry.”

By facilitating open dialogue and shared insights, networking enables us to tap into the industry’s diversity and leverage it for collective growth. This can happen in the following ways:

• Breaking barriers and building relationships. When people from different backgrounds come together, they have the opportunity to learn about each other’s experiences and perspectives. This can help to build trust and understanding, which can lead to stronger relationships.
• Creating a sense of community. When people feel connected to others, they are more likely to feel supported and valued. This can be especially important for people who feel like they are part of a minority group.
• Promoting innovation. When people from different backgrounds come together, they can share their ideas and perspectives. This can lead to new and innovative solutions to problems.

Networking can open doors that might otherwise remain closed. It can be a channel for opportunities, such as potential job offers, business partnerships, or an insightful piece of advice that could transform your approach.

The support that networking can bring is something Mandy Hunt, chief underwriting officer at RSA and chairperson of the CII Underwriting Community Board, feels is crucial in every stage of our careers: “In my experience almost everything you do in life needs some support. Outside of work our friends and family become our personal network and give us honest and helpful guidance.  

“At work, having a network is just as important. At all stages of your career you need a group of colleagues who can help you navigate all areas of your career, from development to delivery, and your network can be a gamechanger in your success. I know the strength of my network has really made a difference in my career.”

So, how does one network effectively within the UK insurance industry? It starts with being open and proactive. Attend industry events, participate in online forums, and leverage professional networking platforms. Remember, networking is a two-way street, so share your insights as you learn from others.

Ola Jacob Raji, broker success manager, uses networking to learn more about different cultures and broaden his horizons: “There is a feeling of discovery and connection that can be experienced by networking with diverse groups; it’s a networking superpower that can propel aspiring professionals with diverse backgrounds.”

Furthermore, connection can happen online now – so the utilisation of tools, such as LinkedIn, can propel your ability to access people that were previously difficult to reach.

It can bring a lot of benefits, but networking isn’t without its challenges. Many individuals find it intimidating or struggle to make meaningful connections. It’s important to approach networking with a genuine interest in others, rather than seeing it as a transaction. With practice, anyone can become an effective networker.

On a final note, I always like to flip the word networking to “relationship-building” – something that a lot of us are good at in our own lives, so why should this be different in our professional life?

If you are looking for more networking opportunities in the insurance sector, a good place to start is at iCAN. We are a multicultural insurance network driving change across the industry and we regularly host networking events for members to meet, collaborate and grow. To find out more, visit: https://www.i-can.me/

Davies, a specialist professional services and technology firm serving insurance and highly regulated markets, has announced the appointment of Jen Morrissey (pictured above) to the newly created position of group chief operations officer. She will be based in the US.

Morrissey has more than 20 years of experience in leading global strategic information technology and operations in the risk management and professional services sectors, Davies said. Prior to joining Davies, she served as chief information officer at Union Risk Advisors. Morrissey also previously served in roles at Willis Towers Watson and Electronic Data Systems.

In her new role, Morrissey will oversee Davies’ global technology, transformation, M&A integration, procurement and real estate functions. She will report directly to group CEO Dan Saulter.

Morrissey’s appointment aligns with Davies’ new, simplified organisational structure, which organised its global operations across three business units: Global Solutions, UK & Ireland, and Davies US. Globally, Davies employs more than 7,000 people across 10 countries.

“This is a very exciting time to join Davies, and I’m looking forward to working alongside Dan and the wider team in our next phase of growth, continued transformation and positive disruption,” Morrissey said. “It has never been more crucial for a business to remain agile to help clients face the external challenges that our industry is currently undergoing.” 

“I am delighted to welcome Jen to Davies,” Saulter said. “Her extensive experience as an executive leader and her in-depth knowledge of the industry will undoubtedly be a fantastic asset to the successful growth of the business. As we embark on our next phase of international growth and investment, it is important that we position our business units and leadership so we can best serve our 1,500-plus clients across the globe.”

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Global insurance broker Howden Group Holdings (Howden) will unify its business structure under one global executive.

In a Press release, Howden confirmed that its insurance broking, reinsurance broking, and underwriting businesses will report directly to CEO David Howden, effective October 1, 2023. The holding company and broking operations will also rebrand under the Howden name and a single visual identity during the same month.

Insurance broking

Howden’s UK&I broking operations will be chaired by Barnaby Rugge-Price, current deputy chair of Howden Broking Group. He will work closely with deputy chairs Paul Redgate (current CEO of global specialty) and Mark Wood (current head of global practices).

Other changes include the following:

• UK Specialty CEO Sarah Hughes will lead Howden Specialty, bringing together the current UK specialty, global specialty, and Howden CAP businesses;
• Carl Shuker will lead the UK&I retail broking operations;
• Andy Bragoli, executive chair of global specialty, will become the global head of placement; and
• Luigi Sturani will continue to lead the broking operations in Europe, supported by Salvador Marin as CEO Northern Europe and Danny Sever as chairman.

Howden’s operations in Turkey will become part of its Europe region. Asia-Pacific will be chaired by Mark Wood, with Goh Chye Huat and Matt Bacon leading Asia and Pacific, respectively.

India, Middle East & Africa, and LatAm will be led by Sonia Caamaño (current CEO of international growth markets) and chaired by Paul Redgate, with Richard Mockett as CEO MEA and Pablo Bores as CEO LatAm.

Reinsurance broking

Rob Bredahl will lead Howden Tiger as CEO, supported by Rod Fox as executive chairman, Tim Ronda as president, and Elliot Richardson as vice chair

CEO Richard Clapham and executive chairman Kieran Sweeney will continue to lead DUAL.

Other changes include the following:

• Olaf Jonda, Damien Coates, and John Johnson will continue to lead Europe, Asia-Pacific, and the US, respectively; and
• Howden Broking Group CEO José Manuel González will retire from executive positions and remain with the group as a special adviser, CEO Office, and become the chair of Howden Iberia, which he founded.

González took over as CEO of the broking group in 2018. Under his leadership, the business has grown from £500 million to £2 billion in revenue in five years by attracting and aligning a formidable team.

Commenting on the changes, David Howden said: “As I said last year when we announced that we had reached agreement to acquire TigerRisk Partners, we have completed the architecture of the group. As we begin the next phase of our growth, it is critical that we have the right structure in place so that we are aligned as one to harness our collective power, protect our culture, and ensure we face our clients and markets as one business. We will do this with our retail, specialty, reinsurance, and underwriting leaders working together as a single management team.

“Our operating model and infrastructure are key to our sustainable growth, and we will continue to invest significantly in our support services functions to allow our experts to get on with what they do best – serving our clients.”

Gallagher Re has today announced the appointment of Ian Kerton (pictured) to the role of CEO of the reinsurance broking giant’s UK operations.

In a Press release, Gallagher Re noted that Kerton has served as a partner in its UK business since 2021. Before joining, he was MD of the UK property & casualty team at Guy Carpenter and a director of the UK board. He has held multiple roles within the reinsurance sector over the last 30 years, including a decade spent as executive director at HSBC Insurance Brokers, where he headed up the treaty broking team and was responsible for its business in the UK & Asia.

In his new role, Kerton will report to Wakefield who will take up the position of global CEO of Gallagher Re with effect from June 01.

Commenting on the move, Wakefield said: “Ian is a truly accomplished broker and leader who is well-respected by clients and colleagues alike. Since joining Gallagher Re, he has shown an unwavering focus on client-advocacy, combined with strategic business acumen and strong people leadership. He is absolutely the best candidate for this important leadership role and the fact that we have been able to recruit from within is testament to the incredible senior talent we have within Gallagher Re.”

Kerton also commented on his appointment, highlighting that Gallagher Re has undergone “transformational change on a global scale” since he joined in 2021. He said he is delighted to have been selected to lead the UK team as the firm launches the next phase of its growth in the region.

“As a business, we have an unrivalled blend of expertise, talent, passion and ambition which has allowed us to create something truly special for clients and colleagues,” he said. “I look forward to working with the team to continue to cultivate that point of difference and build on the huge momentum we have within the UK business.”

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A US state appeals court last week dealt a blow to a group of insurers relying on a war exclusion to avoid paying up for a chunk of a $1.4 billion insurance claim from NotPetya cyberattack victim Merck.

The appeal ruling is expected to add further fuel to a flurry of wording tightening and exclusions, and a cyber insurance expert has said that were a NotPetya equivalent to hit today then many payouts would likely be triggered.

In June 2017, malware NotPetya snuck into the systems of organizations worldwide after infecting Ukrainian accounting software. The White House and others would go on to condemn Russian action against Ukraine for the cyber onslaught, which drove collateral damage in the billions, with swathes of businesses affected across a reported 65 countries. Among the biggest NotPetya victims was pharmaceuticals giant Merck.

Now, Merck’s insurers have been told by the New Jersey appeals court that they could indeed be on the hook to payout for its $1.4 billion cyberattack claim, despite a “hostile/warlike action” exclusion in Merck’s all-risks property policies.

An avenue for escalation within the US court system remains, meaning the result may not be a foregone conclusion. Eight insurers are directly affected by the ruling, with many others attached to the suit having already settled; 26 policies were originally at issue. Nevertheless, the industry has been watching this appeal outcome carefully following what’s been seen as an anticlimactic end to food and beverage giant Mondelez and insurer Zurich’s $100 million NotPetya war exclusion case, which settled out of court last November.

Court’s Merck NotPetya insurance appeal decision to “get the ball rolling”.

The NJ appellate division said that the “exclusion of damages caused by hostile or warlike action by a government or sovereign power in times of war or peace requires the involvement of military action.

“The exclusion does not state the policy precluded coverage for damages arising out of a government action motivated by ill will.”

Further, it said that “the plain language of the exclusion did not include a cyberattack on a non-military company that provided accounting software for commercial purposes to non-military consumers, regardless of whether the attack was instigated by a private actor or a ‘government or sovereign power’.”

Prior to the court rulings, though, insurers have “routinely” covered NotPetya claims from companies facing smaller losses than Merck. That is according to Reed Smith partner Nick Insua, part of a team that supplied an Amici brief in the case on behalf of United Policyholders.

“The language at issue in Merck has been used by insurers in one form or another since the 1950s, and the appellate division’s decision is consistent with the body of case law addressing similar exclusions,” he told Insurance Business in the days following the appellate division’s decision.

While the NJ affirmation “by no means establishes an underwriting guideline or an industry coverage position”, it should “start to get the ball rolling” on more certainty for policyholders, Peter Hedberg, Corvus VP of cyber underwriting, said in a comment shared with Insurance Business.

Last August, Lloyd’s looked to tighten language around state-backed or nation state attacks in standalone cyber policies, having already moved in 2020 to eliminate silent cyber from broader all-risks policies (such as the one at issue in NJ) through mandatory cyber exclusions or affirmative cover. While some brokers spoke out against the latest change, other cyber insurance stakeholders, like CFC head of cyber strategy James Burns, have said that the fresh wordings are only intended to “exclude attacks that are so catastrophic in nature that they destroy a nation’s ability to function.”

In a blog posted in April, defending the Lloyd’s changes, Burns said that as the NotPetya attack was neither an attack on the US nor an attack that had a major detrimental impact on the country, “American companies, like Merck and Mondelez, should have had clear, unambiguous cover.”

Instead, Burns said, the lay of the land meant that “broad traditional war exclusions in both standalone and package cyber policies mean customers are at the mercy of whatever their insurer decides.”

Outside of the war issue, policies continue to be refined, with some cyber underwriters having drilled down further in a bid to combat systemic risk fears. For example, some might now take a dim view of covering a widespread operating system infection wherein the “bones that run” a computer system are down. There has also been greater stress on insureds’ cybersecurity measures, and debates continue over whether there is need for federal cyber backstops or other means of boosting firms’ cybersecurity.

A NotPetya type incident – many policies would pay out today

Despite changes, under the recent ruling, many current policies likely would still cover incidents like NotPetya even if insurers claimed they were not built with this in mind, and exclusions had been woven in. Others may have tighter language. It’s a mixed landscape, and some carriers – domestic US insurers in particular – have been slower to “jump on board” with underwriting changes, according to Steve Robinson, RPS cyber practice leader.

“Cyber policies were not intended, nor are they designed to cover wide-scale physical war, or when cyber ops are a tactical element of such wide-scale physical war,” Robinson said. “The new exclusions are designed to bring more clarity to that intent. But, many carriers are citing NotPetya as a type of single incident that was not a part of a physical war directed at Merck, as a type of incident that would still be covered, even with the new exclusions.

“There are, of course, varying approaches, so this would not apply to all carriers.”

Those carriers that currently exclude “merely nation-state attribution” would likely be able to argue that any future NotPetya event could be excluded, according to Robinson.

“Ultimately, as cyber insurance matures, [insurers are] looking to provide good cover for … targeted, single attacks that can really be detrimental to an organization, while at the same time [the insurers] also want to be clear that neither cyber insurance policies nor any other types of policies were ever priced for appropriately to contemplate such a wide scale event where there wouldn’t be enough capital to support the business if something were to happen,” Robinson said.

Cybersecurity vulnerabilities – the “perfect storm” that could lead to a NotPetya repeat

It does not have to take long for an organization to feel the force of a cyber incident. On that fateful June day in 2017, 10,000 machines in Merck’s global network were infected with NotPetya within 90 seconds. Within five minutes, this had doubled to 20,000. Ultimately, more than 40,000 machines were brought down.

More than half a decade on, vulnerabilities in many businesses’ systems persist, even as insurers push for tighter security. RPS has continued to witness claims come in from large organizations, some of which have not had segmented backups needed to restore systems, resulting in some seeing a costly ransom payment as the “only option”. Ransomware frequency, meanwhile, has been back on the up in the last couple of months, though organizations’ propensity to pay attackers has dropped.

All that could be sitting between the world and a NotPetya repeat is “the perfect storm” of a software provider without proper security controls in place that unwittingly passes on malware to similarly unwitting customers, Robinson said.

The best offense may be a good defense, but even as cyber fortifications evolve, so too do malignant technologies develop. Like cyber-hygiene-conscious insureds plugging security gaps, carriers may well be left patching up policy language vulnerabilities and errors for some time to come. In the interim, whatever twists the courts may churn up and whatever bad actors may throw insureds’ and insurers’ way, it falls to agents and brokers to explain just what the patchwork quilt of cyber policies means for clients, to keep on top of exclusion advancements, and to advocate for and fulfill their clients’ insurance needs to the best of their ability.

The early “kitchen table” discussions of any fledgling business will see co-founders mulling over everything from branding to strategy to market outlook to timing. The hallmark of most successful businesses, however, is that no matter how many changes to the above, the ethos at the heart of the business remains clear.

During those early conversations, the founder of health MGA Equipsme hadn’t yet decided on its name, noted co-founder and CEO Matthew Reed (pictured) but there was no doubt in their minds as to its purpose – to allow smaller businesses to do more for their workforces. As it turned out, he said, that commitment to equipping firms with the tools needed to survive and thrive no matter the market conditions, lent in turn to its name.

The roots of Equipsme

“Equipsme came about as a result of us looking at the health insurance market and finding it old, stagnant and complacent,” he said. “Having been an insurer myself, I can say that insurers tend only to innovate when something’s going wrong. Where there isn’t a loss ratio driving the need to do better, there’s not much innovation. And insurtech is changing that a bit but when you think of health insurance as a product, there’s very little to feasibly damage the loss ratio. Even the pandemic didn’t.”

When Equipsme launched in 2018, market research revealed that while 50% of small businesses in England had looked into health insurance, only 5% ended up buying it for their staff. When the team looked into why so many ended up walking away, the feedback was remarkably consistent. People were put off by price and complexity, explained Reed. As a result, it became an elite perk bought only for the staff who would be able to afford it for themselves anyway.

“Our idea was that we can do more and we can allow companies to do more for their people,” Reed said. “At the end of the day your people are your business. A bakery, for example, would rely on their van driver to get their orders out.  You insure the vehicle so why wouldn’t you buy insurance to get the driver in front of a physiotherapist in two days if they hurt their knee?”

When Equipsme started it focused on the definition of SMEs – from two-to-249 people – but it very quickly expanded.

“We found that it wasn’t just small to medium sized businesses who wanted a simple, affordable and practical health insurance option. It was big businesses who wanted to expand health support to more or all of their workforce – and/or do rather more for them than a helpline and a cash plan. We now have businesses with staff in the 1000s – and a self-employed product as well.”

Building an accessible product offering

Working within that broad remit, Equipsme’s focus quickly centred on building a product that “didn’t need any explanation,” he said. The team felt strongly that insurance, and health insurance in particular, had become too jargon-heavy and so set about demystifying the product for the benefit of the average purchaser.

“We made our offering a non-advised product by the definition of the FCA because we felt that if you’re a business that is surviving and wants to look after your staff, you will be bright enough to understand this insurance product,” he said.

“For us, it’s about offering choice.  I think something you’ve got to be very careful about with SMEs is assuming that they’re all going to buy insurance in the same way. We have people who want to buy direct, others who might buy it from their bank, and we have a lot of businesses who buy through their broker.”

Equipsme already works closely with the broker market, Reed said, as when the product was first launched, it was done so with the ambition of allowing general insurance brokers to offer something different to their clients. Consolidation has only made that objective more pertinent.

Consolidation in the health insurance market

Looking across the market, he noted that the general consolidators are now snapping up health insurance brokers. And with that comes the opportunity – if not the necessity –  for independent general insurance brokers to get involved with innovative, simple, non-specialist products which have significant market appeal.

“We didn’t build this to be disintermediated at all,” he said. “We built it to allow non-medical specialist brokers to offer it to their customers. When you think about the general insurance broker, they’ve probably got two or three policies with their clients, and they’re the button that’s pushed when those clients wants insurance advice – whether it’s life insurance or medical insurance, or their general insurance needs.

A COVID-induced focus on health, a competitive job market and the ever-growing NHS waiting list are all fuelling new demand for business health insurance. Indeed, he said, a report published in December found that a fifth of employees on the 7.2 million person NHS waiting list have had to reduce their working hours while waiting for NHS treatment – and a further two fifths (40%) change the tasks they do.

“We’re seeing more customers now asking their brokers questions about affordable health insurance products,” Reed said. “And most brokers’ first waking thoughts these days are on how to keep the customers they have happy. So, we feel that if, as a general broker, you can respond to your clients’ requests for information or support around their medical insurance needs then that’s going to leave you in a much better position than having to say ‘sorry I don’t know’.”

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