Cross-selling has also come under the spotlight in recent months as insurance businesses look to leverage the full force of their data, systems, internal talent and services. Meanwhile, the twin terms of vertical integration and horizontal integration, while not quite returning to the peak of popularity they hit in the early 2010s, are very much back in vogue.
Insurance schemes – an opportunity for brokers to set themselves apart?
Amid these new and renewed strategic drives, more consideration is also being paid to the opportunities presented by insurance schemes. These insurance solutions targeting specific customer needs that aren’t being adequately met by the wider insurance market are enabling the savvy broker to meet market challenges with bespoke solutions.
The UK schemes market is estimated to be worth between £5 billion and £6 billion GWP and it currently represents a significant part of the commercial lines marketplace in the UK. It’s a market that is growing and evolving all the time – and primed to welcome and support entrepreneurial brokers looking to find new business opportunities.
How is the schemes market in the UK developing?
In a recent interview with Insurance Business UK, Simon Medhurst, schemes development manager for Travelers Europe, noted that the schemes sector had seen a post-pandemic surge, brought on by the changes in customer behaviour that occurred during COVID.
“[This] has allowed more time for reflection from brokers and MGAs, and indeed insurers,” he said. “If you look at consumer behaviours as well, you can see that they’ve changed with regard to internet shopping, increased pet ownership and homeworking, etc.”
These changes have created new and different opportunities, he said – which are coming to the fore at the same time as brokers are reflecting on their volume businesses and looking to where there’s any shared affinity.
The benefits and characteristics of a great schemes offering
The benefits of such schemes are substantial. Done right, they allow brokers to expand their offering, improve their customer retention, target untapped consumer markets and develop their own reputation for quality and specialist advice. As to what an insurance scheme done right looks like, a number of crucial characteristics spring to mind, not least that a successful schemes proposition encompasses:
A shared vision for success
Tailored wordings
Quality data and data analytics
Transparency and open communication between all relevant parties.
The appetite for differentiation is especially strong at the moment and those who have successfully undertaken a schemes solution can speak to the value it has brought their businesses, partners and clients alike. A common theme among these spokespeople is the importance of getting involved with the right schemes set up. As with any opportunity for differentiation, having the right frame of mind going in is half the battle – and connecting with the right partners makes all the difference.
For brokers considering dipping into the schemes market, doing comprehensive research, really exploring all their options and working with respected partners with good financial strength and a strong track record of success should be top of their to-do list. With the right mindset, ethos, strategy, vision and partnerships established, brokers will be well-placed to take full advantage of the opportunity at hand to reshape the insurance market around them on the ever-solid foundation of quality advice – at a time when price threatens to become king.
What are your thoughts on this story? Please feel free to share your comments below.
Business insurance in the UK is often offered as a package of insurance products designed to provide enterprises with a full suite of protection from the various risks they face. Think of it as a form of a financial cushion that can help your business recover faster when an unexpected accident or disaster strikes.
Because each business deals with a different set of risks, business insurance providers also allow enterprises to take out a tailored set of policies that matches their coverage needs. Business insurance plans can be customised to meet the requirements of your industry, the size of your business, and your business activities, among others.
Most UK businesses are legally required to take out one type of business insurance policy – and that is employer’s liability insurance. This form of coverage works just like workers’ compensation insurance in other countries. If your business has at least one employee, then you need to secure employer’s liability coverage. Being caught operating without one can result in hefty fines for your company.
If you use a vehicle for your business, then you will likely need specialist business car insurance. For enterprises that involve direct use of their vehicles – including taxi fleets and driving schools – purchasing commercial vehicle insurance is mandatory.
The other types of business insurance policies are not compulsory, although industry experts strongly recommend that certain businesses take out specific coverages, including public liability insurance and professional indemnity insurance, especially for those providing consultancy and advisory services.
As each business faces unique risks and challenges, there is no one-size-fits-all business insurance in the UK that can cater to every coverage need. To help protect enterprises against the different risks they face, business insurance providers across the country offer a diverse range of policies. Here are the five most essential coverages for businesses operating in the UK, according to experts.
1. Employers’ liability insurance
Businesses in the UK with at least one staff are required by the law to take out employers’ liability (EL) insurance. This type of policy provides protection if your employee gets sick or sustains an injury while doing their job. Coverage, however, is not limited to full-time or part-time employees. Employer’s liability insurance is also a requirement for businesses that enlist the help of volunteers or employ staff on a casual basis.
The policy must be purchased from an authorised insurer and must cover your business for at least £5 million. Businesses caught operating without this form of cover can be slapped a £2,500 penalty by the Health and Safety Executive (HSE) for each day that they go unprotected. You can also be fined £1,000 if you do not display your EL certificate or refuse to show it to inspectors when they ask.
2. Commercial vehicle insurance
While all UK drivers are required to carry car insurance before they can hit the road, standard policies do not cover vehicles intended for business purposes. For these, you will need to take out commercial vehicle insurance. This type of policy is actually an umbrella term for all types of coverage available to businesses that use commercial vehicles. This includes:
Van insurance
Truck insurance
HGV insurance
Taxi fleet insurance
Commercial vehicle insurance operates under the same principle as private car insurance paying out for damage or injury to third parties, and repair and replacement costs to the insured vehicle. The table below lists what is commonly covered by commercial vehicle insurance in the UK.
3. Public liability insurance
One of the most popular policies for businesses, public liability insurance (PL) protects your business from claims of property damage or bodily injury resulting from actual or alleged negligence in your business activities. Although having this type of coverage is not a legal requirement in the UK, some clients and suppliers may request your business to carry one as a condition for working with them.
4. Professional indemnity insurance
Professional indemnity (PI) insurance is designed for businesses offering professional services or advice. If you operate this type of business, PI coverage can protect you from claims arising from negligent acts or omissions committed while providing services. Professional indemnity insurance typically covers legal and compensation costs, and similar to product liability coverage, some clients may insist that you get coverage before they agree to work with you.
The table below lists several occupations in the UK that can benefit from taking out professional indemnity insurance.
With cybercrime rapidly emerging as among the biggest risks facing businesses in the UK, it pays for companies to have some form of cover. Cyber liability insurance is designed to mitigate the financial impact of data breaches and cyberattacks. Coverage typically includes legal and compensation expenses, and the cost to restore data.
Cyber liability insurance, however, offers only one layer of protection against cyberattacks. To be optimally protected, you should pair cyber coverage with good cyber hygiene and sound cybersecurity strategies.
Apart from the essential coverages listed above, UK businesses can purchase several other types of insurance policies that can cater to their specific needs. These include:
Business contents insurance: This protects a business’ physical belongings essential to its daily operations, including laptops, smartphones, and other mobile devices. It also covers damages or losses caused by theft, fire, flooding, and other covered events.
Business interruption insurance: This protects businesses from loss of income and additional costs incurred if their operations are forced to shut down because of an unexpected event.
Equipment breakdown insurance: This covers businesses against sudden and unexpected mechanical or electrical failure of essential equipment by paying out for the repair or replacement costs.
Personal accident insurance: This is designed to minimise the financial impact of losing a key employee, if a job-related accident causes them to miss work, usually for a period of two weeks or longer. It pays out for lost income, medical costs, and hospitalisation, up to the limits of the policy.
Product liability insurance: This covers businesses if a customer suffers an injury or property damage resulting from the use of their product. It typically pays out legal and compensation costs.
Tools insurance: For tradespeople who rely on their tools to get the job done, tools insurance covers the cost to replace or fix industry-specific instruments if they are lost or damaged.
Premium prices for business insurance in the UK are usually determined by a range of factors. These include:
The business’ size or number of employees
The industry your business is in
The type of business insurance policies you are taking out
If you want to know how insurance companies calculate the cost of your policies, you can check out this comprehensive insurance premiums guide that we have prepared for you.
Before taking out a business insurance package, the first thing you should do is work out the types of coverage your business needs. Here’s a list of questions you can ask yourself to find out which policies suit your operations best.
It would also be helpful for you to consult an experienced insurance agent or broker who can give you sound advice regarding which business insurance policies fit your needs.
One thing to take note of is that as a self-employed individual, you should be able to claim your business insurance costs as an allowable expense to reduce your taxes, according to GOV.UK.
All businesses, regardless of how big, can benefit from taking out business insurance in the UK. If you’re self-employed and don’t employ anybody else, then you can skip employer’s liability insurance. Same with commercial vehicle insurance if you do not use a car for your business.
Other types of policies, however, may prove useful. If you offer professional advice or service, for instance, then professional indemnity insurance can protect you from claims of losses that resulted from the services you rendered. Public liability insurance, meanwhile, covers you if someone gets injured or had their personal belongings damaged because of your business activities.
Technically, yes. But are you willing to take that risk? If you do not have employees and company vehicles, it is possible to operate a business without insurance as employers’ liability insurance and commercial vehicle insurance are the only types of business policies required by the law.
But should an unfortunate event happen to your business – for example, theft, natural disaster, or lawsuit – it could run your operations to the ground without proper coverage. So, while technically you can, it is not advisable for you to run your business uninsured.
Do you think it’s worth investing in business insurance in the UK? Which coverages do you think are necessary and which ones are not? We’d love to hear from you in the comment section below.
This underwriting-focused committee currently comprises business lines sitting under the Marine Committee, Non-Marine Committee, and the Aviation Committee. The LMA has identified a need for a dedicated panel that will include chief underwriting officers and active underwriters. This group will then guide its members and work with the market on the increasing number of long-term challenges within the underwriting space.
The committee’s roles include constructive engagement with Lloyd’s and other external stakeholders on strategic underwriting issues. Some of these issues include development and execution of a commercial strategy, addressing subjects such as environmental, social, and governance (ESG) development and implementation of underwriting strategies, as well as ensuring that the market retains its position as the preeminent marketplace for specialty (re)insurance.
Selecting a committee of 15 members is a Nominations Committee panel consisting of:
Patrick Dawson, underwriting director of the LMA
David Croom-Johnson, retired chief executive officer of the Aegis
Jane Hayes, non-executive director of Hiscox Insurance
Dominic Christian, global chairman of reinsurance solutions at Aon UK
The LMA will be looking for a diverse range of backgrounds and experience including varied geographical knowledge and technical experience across multiple disciplines and classes of business in order to ensure that the CUO Committee will be able to meet the market’s broad needs.
“The Lloyd’s underwriting community is constantly adapting to new challenges,” Dawson said. “It has become clear that a committee of senior, experienced individuals is needed to provide expertise and guidance over the coming years. As issues such as market digitisation, the evolution of Lloyd’s in a rapidly changing and competitive environment and ESG rise in prominence, it is vital that we, as an organisation, are providing our members with the right support to address challenges in a strategic and considered manner.
“I am pleased that we have been able to set in motion the launch of this important initiative and look forward to working with the Nominations Committee to ensure we create a knowledgeable, diverse and experienced committee to engage with Lloyd’s on strategic development and continue to serve the needs of the marketplace,” Dawson said.
The partnership further builds on a successful collaboration that has delivered improvements within the industry, including customer retention, safe driving, and fraud detection. The lab aims to develop real-world solutions to tackle various significant challenges in society, from sustainability to autonomous mobility.
“Developing cutting-edge insurance and services”
“Insurance was born in the UK and breakthroughs of many kinds have their origin here, so it’s the perfect place for our new hub of innovation,” ANDI president Keisuke Niiro said. “The Aioi R&D Lab aims to solve global-scale social issues through developing cutting-edge insurance and services utilising AI technologies.”
Niiro said that the lab will combine the capabilities of Oxford researchers, the AI provided by Mind Foundry, and the insurance capabilities of Aioi Nissay Dowa Insurance to develop solutions for significant societal challenges.
“Coming together as ‘One Team,’ I am confident Aioi Nissay Dowa and the experts in the Oxford ecosystem can offer solutions that will have a tremendous impact on the world,” Niiro said.
“We have made a long-term commitment to invest in cutting-edge innovation in the development of new insurance models, products, and services – not just for our own benefit, but to create a shared value that solves social and community issues across all parts of society,” AND-E group CEO Michael Kainzbauer said. “Insurance is pivotal to mitigating and protecting people from the impact of some of the biggest issues facing our planet and our populations, and we are excited to be working with Mind Foundry to take some big strides towards practical solutions that will drive change at a massive scale.”
The lab will focus on several topics that create shared value across society, including:
Developing products that insure individuals continuously across multiple modes of mobility, including cars, trains, scooters, etc. This is to reduce risk, traffic accidents, and CO2 emissions
Developing models of insurance for autonomous vehicles, a field where insurers need to understand a vehicle’s sensors and the complexities of how self-driving algorithms are configured
Developing the next generation of telematics-based insurance, as well as personalised insurance and insurance for artificial intelligence
Developing solutions to reduce carbon and energy use in transport, preserve biodiversity, and gain a better understanding of the risks associated with climate change
Developing solutions to help deal with aging populations, as well as extend wellness and health care
“Big knowledge,” not just “big data”
On the board of the newly formed lab are key representatives from AND-E and Mind Foundry. Kainzbauer will chair the board while AND-E executive manager Jun Ikegami will take the post of CEO. The two will work alongside Mind Foundry CEO Brian Mullins and ANDI representatives from the ANDI holding company, Masauki Yazawa and Kuniaki Uehara.
Supporting the board is an advisory panel of professors from the University of Oxford, each with different expertise across many disciplines that sit at the heart of the transformations facing society, with particular focus on insurance. These include Mind Foundry co-founders professor Stephen Roberts and professor Michael Osborne. The rest are as follows:
Michael Wooldridge, professor of computer science at Oxford University
Malcolm McCulloch, associate professor in engineering science and group leader of the Energy and Power Group at the University of Oxford
Paul Newman, who leads the Oxford Robotics Institute
Baroness Kathy Willis, professor and principal at St Edmund Hall and professor of biodiversity in the Department of Zoology, University of Oxford
Doyne Farmer, Baillie Gifford professor of mathematics
The lab’s aim is to build a better understanding of the data that surrounds us and identify ways in which truly informative “big knowledge” can be extracted from that information, and not just the “big data,” according to Stephen Roberts, Mind Foundry co-founder and professor of machine learning at University of Oxford.
“Big data is useful up to a point, but what we need now are very smart algorithms that can distil that data into knowledge that is interpretable, valuable, understandable, and beneficial to everybody,” Roberts said. “We want to understand the societal impact – not just of insurance, but of risk, environment, and sustainability – and form a foundation for how algorithms of all levels of sophistication can work in harmony with society.”
“Mind Foundry is dedicated to tackling high-stakes problems with AI – and the insurance sector is not only one that impacts all of our lives both individually and at scale, but it’s also at the forefront of long-term thinking about global economic problems and the effects of change on people and civilization,” Mind Foundry CEO Brian Mullins said. “We could not have better partners as we take on some major challenges in that field with this R&D lab.
“Aioi Nissay Dowa shares our aspirations and understands the importance of digital transformation working with – not against – society, and we will also benefit from the University of Oxford’s rich ecosystem, which has been at the cutting edge of AI research for decades,” Mullins said. “We look forward to deepening our relationship with ANDI and the University of Oxford and working together to create a more inclusive and fairer world for all.”
Besides the advancement of AI, several new breakthroughs have also been introduced within the insurance business. Recently, specialist insurer CFC announced the implementation of policy encryption within its products, providing an additional layer of security for its customers.
What are your thoughts on this story? Please feel free to share your comments below.
“Our future success at MS Reinsurance will be defined by our ability to expand our customer-centric approach and provide our valued partners with bespoke, innovative, and efficient solutions,” MS Reinsurance CEO Robert Wiest said. “I am delighted to welcome Benedikt, Susanne, Marcus, and Stefan to MS Reinsurance. All four join our growing team as we embark on our next chapter. We are committed to investing in our people and with more than 75 years of specialist experience, collectively, we are excited about the expertise they bring to the MS Reinsurance team.”
Gnädinger took her post on November 1, reporting directly to Wiest. Her current role sees her spearheading the recently rebranded business’s modernization journey. She has a previous 17 years of experience with Partner Re, developing deep expertise in business processes, systems design, and integrating new technologies for reinsurance.
Schmid was appointed on February 1, also reporting directly to Wiest. With 24 years of experience in the reinsurance industry, he was previously the chief information officer at AXIS Re. His new role within MS Reinsurance will see him leading the implementation of the reinsurer’s IT strategy aimed at improving the use of data and technology to support the business.
Pollak also joined the reinsurer on February 1, and he now reports to chief technical underwriting officer Grégoire Mauchamp. The newly created role sees Pollak leading the underwriting operations team and supporting a wide range of products and processes globally across various geographies. Pollak previously lead the global underwriting support team at AXIS Re.
Finally, Behr will officially start his tenure at MS Reinsurance on March 1, reporting to EMEA chief underwriting officer Jörg Bruniecki. Behr will bring with him a blend of business development, client management, and underwriting experience. He recently held the head of business development post EMEA at Swiss Re.
The surge of appointments comes months following MS Reinsurance’s rebranding from MS Amlin AG, a move in-line with parent company MD&AD’s commitment to forming a globally diversified reinsurer.
What are your thoughts on this story? Please feel free to share your comments below.
European property and casualty (P&C) insurance run-off group Marco Capital Holdings has announced its acquisition of Navigators International Insurance Company (NIIC) from its previous parent company, The Hartford Financial Services Group. The transaction is still pending and subject to regulatory approval.
A UK-based insurance company, NIIC is authorised by the Prudential Regulation Authority and the Financial Conduct Authority. It was established by The Navigators Group, which was acquired by The Hartford in 2019.
Completing The Hartford’s exit from Continental Europe
NIIC has a small amount of legacy business based in run-off, which comprises property and casualty, marine, and professional liability insurance business. These are predominantly based in Continental Europe, within the countries of Belgium, France, Italy, the Netherlands, and Spain as well as the UK.
Marco Capital’s purchase completes The Hartford’s exit from Continental Europe. That said, The Hartford will continue to serve the international market through its NIC UK Branch and Hartford Syndicate 1221 at Lloyd’s.
“We are delighted Marco has been able to assist The Hartford in achieving its strategic objectives with regards NIIC,” Marco Capital CEO Simon Minshall said.
In May of last year, Marco Capital completed its acquisition of the insurance businesses under Capita, in particular its specialty insurance businesses Capita Commercial Insurance Services Limited (CCIS) and Capita Managing Agency Limited (CMA). Marco has rebranded the acquisition under the new name Polo, which is also a play on the Marco Capital Holdings name. The newly christened group is backed by €500 million equity committed by Oaktree Capital.
Digging into the key financials shared by Allianz Holdings, Holmes revealed that GWP is up about 4.4% across the business to about £3,966 million. Allianz Personal has reported a 3.6% rise in GWP to £2,635.4 million while Allianz Commercial is up 6.4% to £1,330.2 million.
However, reflecting the challenging trading conditions registered by the market in 2022, the operating profit of the business dropped 58.3% to £132.3 million, down from £317.6 million in 2021 while its combined operating ratio rose 6pp to 99.2%.
Behind the operating profit decrease
Examining the causes of this operating profit decrease, Holmes pinpointed that the UK market saw some of its worst weather conditions in 2022 with three storms in February alone and subsidence losses as a result of the summer heatwave – capped off with a December freeze that resulted in high escape-of-water losses in household and also saw increased frequency and severity in motor claims due to the impact of the freeze on drivers.
“But in 2022, by far the greatest impact on our results was the impact of inflation,” Holmes said in a media briefing with Insurance Business UK. “This was driven by supply chain issues, the energy crisis, and labour shortages. These have all had a knock-on impact on our business, both our prior reserves and our current-year loss ratios.”
He noted that the significant growth and improvement seen across a number of lines of business with Allianz Holdings was offset by the impact of inflation. Overall, Allianz experienced gross inflation of 9.5%, which was ahead of predictions and pricing assumptions made at the beginning of 2022. But looking at collision and accidental damage, he said, the inflation rate actually registered as being in the 20s in terms of its impact due to supply chain concerns.
“Inflation is something that we saw very early on in 2022,” Holmes said. “But our expectations and that of the Bank of England was that it would peak earlier and then come down very quickly. I think we all now accept that inflation went higher than anybody’s expectations and it’s likely to stay with us far longer than was originally anticipated.
“There’s a number of things we do to mitigate that. We obviously have supply chain contracts with a lot of our providers that have fixed pricing within them. We look at our entire cost base to see where we can eliminate costs. We have been working with a number of companies to look at Green Parts as replacement parts for vehicles, to reduce the cost of the impact of vehicle damage etc. And we’ve looked at how to fill labour shortages by using the extensive reach of the Allianz group.”
As part of a large global insurer, the business is lucky to be able to access enhanced resources that help it alleviate many of the supply chain pressures facing the wider market but Holmes highlighted that it is not possible to mitigate inflation to the extent of completely eliminating its impact on claims. As a result, the insurer has also been rating to deal with inflation and to offset its ongoing impact in 2023.
He added that Allianz Holdings expects, “rate to continue to be an issue in 2023 as we deal with the impacts of inflation through increased insurance premiums.”
What 2023 will bring for the business
Despite the challenging market conditions, Holmes highlighted that there is a lot to look forward to as the business faces into 2023 and beyond. He has always maintained that the business’s greatest asset is its people, he said, and Allianz Holdings is “incredibly proud” of the support it has been able to deliver for colleagues to help them navigate the tumultuous external environment.
The business has also continued to develop its relationships with its broker partners and customers alike, with benchmarking research carried out in 2022 confirming that Allianz is No.1 in the market for Commercial Mid-Market, Petplan, LV= and Engineering Inspections. As somebody passionate about strong relationships with brokers, he said, receiving that affirmation that Allianz is maintaining its reputation in both commercial and personal lines for the service it provides has been fantastic.
“Looking forward to 2023, we expect it will continue to be a difficult year,” he said. “Inflation and supply chain disruption will continue to impact on our business – and of course, that will impact on rate in 2023 which we expect will continue to drive a hard market.
“We’ve also been calling on our broker partners to work with us to deal with the issue of underinsurance which we see as a problem that already existed prior to this economic downturn and is worsening as as inflation rises. So, we’re going to continue to work hard with our broker partners in 2023 to deal with the thorny issue of underinsurance in the UK market.”
What are your thoughts on this story? Please feel free to share your comments below.
Among the market updates delivered, the insurance services firm Davies revealed that it has been certified as an agency with the Department of Education to offer “Flexi-Job Apprenticeships.” Bravo Networks also had good news to share, announcing that it has partnered with learning and development company Raise the Bar to offer fully funded apprenticeships to members in England.
Meanwhile, Zurich UK announced that it is offering 100 new apprenticeship places in 2023, in line with its ambition to, “attract young talent and futureproof its workforce.” As part of the initiative, the insurance giant is expanding its current apprenticeship programme to include new placements in HR, marketing and data protection. Though each firm is taking a different approach, at the core of these programmes is the shared ambition to diversify access routes into insurance and to champion people development on an ongoing basis.
While recently catching up with the brilliant Karen Sharpe of the insurance law firm HF, I was reminded of the sheer breadth of insurance-related roles that exist across the market, beyond underwriting, broking and loss adjusting. HF’s line-up runs the gamut from paralegal apprenticeships, to level 7 solicitor apprenticeships, to graduate entry solicitor apprenticeships – while the firm remains one of the only practices operating in the insurance sector to exclusively offer training contracts to existing employees.
Insurance apprenticeships and social mobility
As Karen highlighted during our conversation, critical to conversations around apprenticeships is understanding the capacity that the right training and development opportunities have to move the dial on advancing social mobility. Creating greater social mobility goes right to the heart of HF’s culture, she said, which can be witnessed by the number of senior leaders across the business who have traversed non-traditional routes to the top.
Social mobility in insurance is an element of the diversity, equity and inclusion (DE&I) trifecta that can occasionally dip under the radar, overshadowed by more obvious or urgent considerations. For while age, race, religion and sexual orientation were named protected characteristics under the Equality Act 2010, socio-economic status is not covered.
In an interview with Insurance Business, Zurich UK’s Caroline Dunn discussed the importance of advocating for increased social mobility in insurance, touching on her own experiences growing up in an economically disadvantaged environment.
“I grew up in Wakefield which is quite a poor area and quite different culturally to living and working in London,” she said. “As I was growing up and thinking about what I wanted to do, things like insurance, and careers in the City or in financial services, were difficult to find out about. Certainly, I knew nothing about them.”
As the daughter of a plumber and a secretary, she had no family connection to financial services and has seen first-hand that not having the contacts needed to know what careers and opportunities exist in the market creates an additional barrier to entry for young people. With Caroline’s experiences in mind, the need to carry on conversations around opening up access to insurance and financial services careers to a broader talent pool seems especially critical.
Hearing from insurance apprentices
Of course, perhaps the clearest and strongest voices emphasising the link between apprenticeships and an expanded network of insurance talent are those from the individuals who have themselves seized such opportunities. Ellie Jones, now a senior account handler at Hazelton Mountford, is one such ambassador for the cause.
“It’s an achievable way of getting into a career without having to go to university/college,” she said, “starting from the bottom and working your way up and consistently earning a wage while you learn and grow. By the time my friends were leaving university, I had a career and was earning a good wage.”
The best thing about the development of apprenticeship programmes is they amount to something of a self-fulfilling prophecy. Those who undertake them tend to become their most ardent defenders and, as they progress in their careers, also the finest advertisements possible for the difference these initiatives can make.
What are your thoughts on insurance apprenticeships? Please feel free to share your comments below.
Gross written premium (GWP) in the period amounted to US$20 billion, which is higher than the US$18.5 billion GWP posted for FY21. All three QBE divisions – North America, international, and Australia Pacific – contributed increases in GWP.
“In a backdrop underscored by heightened inflation, geopolitical tensions, and elevated catastrophe activity, QBE’s underwriting performance demonstrated improved resilience, with the adjusted combined operating ratio of 93.7% improving by 1.3% compared to the prior period,” noted QBE in its announcement.
“Strong premium growth continued, with group-wide renewal rate increases of 7.9% in FY22, which supported gross written premium growth of 13%.”
Enstar deal
In its earnings report, QBE also announced a reinsurance deal with Enstar. De-risking QBE’s exposure to reserves worth US$1.9 billion, the transaction is designed to support improved capital efficiency and reduced reserve volatility risk while providing “greater bandwidth” to focus on customer outcomes and sustainable growth.
Separately, in an emailed release, Enstar said: “Enstar’s subsidiaries will assume net loss reserves from QBE of US$1.9 billion and will provide approximately US$900 million of cover in excess of the ceded reserves on business largely underwritten between 2010 and 2018.
“The transaction will complete upon receipt of regulatory approvals and satisfaction of various other closing conditions. Upon completion, a portion of the portfolio currently underwritten via QBE’s Lloyd’s syndicates 386 and 2999 will be transferred into Enstar syndicate 2008.”
QBE highlighted that capital released from the loss portfolio transfer will be reallocated to ultimately support an improved outlook for returns.
It’s never been harder to excel as an employer in the insurance sector.
“This is the most challenging market I have worked in going on 17 years,” says Kieran Boyle, the managing director of CKB Recruitment. “Employers are having to up their game, which is resulting in the employee holding all the cards.”
This is echoed by Nishma Gosrani OBE, partner in the financial services practice at Bain & Co. in London, who explains how important it is to deliver in the current climate. “If you’re spouting something different in your recruitment material to what you actually are, it becomes very obvious.”
“This is the most challenging market I have worked in going on 17 years. Employers are having to up their game, which is resulting in the employee holding all the cards” Kieran Boyle, CKB Recruitment
For Boyle, there are two types of employers. First, companies who have learned from the pandemic to accept flexible working arrangements and to reinvest in their staff. Second, businesses who have resisted change.
“Firms who have not evolved post pandemic are the biggest losers in the talent attraction war,” explains Boyle. “There are stubborn CEOs who for some reason think selling insurance cannot be done – at least sometimes – remotely.”
Positioned squarely in the first category are 2023’s IBUK Top Insurance Employers, 14 award winners whose own employees ranked them highly in areas such as benefits, compensation, culture, employee development, and diversity and inclusion.
Issues in the insurance labour market
For Jo Morgan, associate director of HR at Top Insurance Employer TH March, the main factors influencing the insurance labour market are work-life balance and ensuring proper renumeration.
TH March has had a hybrid policy for a few years and continually monitors it via Pulse surveys.
“We are finding that hybrid working is a top priority for candidates and is often asked even before salary discussions during the recruitment process,” says Morgan.
For the 125 employees across their six branches in the UK, TH March has more than 60 varied working arrangements and 25% of staff who work part-time. Regarding employee wellbeing, 11% of TH March’s employees are trained as Mental Health First Aiders.
This exemplifies the analysis provided by Gosrani, who picks out the most important factor for employers. “The culture of the organization and the culture of senior management, because there is so much more access from graduates on how they can understand their culture,” Gosrani adds how recruitment websites and people keeping in touch with former colleagues means there is an abundance of information for employees to access.
Jenny Cooper, the head of HR at award-winner Flood Re, also asserts that her firm has adapted its ways of working in this environment. “We need to balance business needs with employee expectations and find a way to get this right within hybrid working,” she says.
Meanwhile, there’s the money issue. “One of the main issues I see influencing the employment market within the insurance industry in 2023 are the drastic cost of living increases,” says Morgan. “Salaries need to remain competitive to ensure that we attract, recruit and retain the best employees.”
Cooper adds that it’s important to find and keep the right people in this highly competitive and fast-paced recruitment market. Marcella McLean, the chief human resources officer at Top Insurance Employer Arch International, agrees.
Then there’s diversity, equity, and inclusion (DE&I), which both Cooper and McLean say remains important. “Keeping sight of and a focus on DEI and finding ways to be truly inclusive as inclusion means something different to everyone,” says Cooper.
Again this is something Gosrani stresses is a major factor and says when she speaks to CEOs it “almost always comes up.”
And she adds an example of how important it is across the industry. “We actually worked very closely with a number of insurance organisations, including the chief executive of Aviva, very recently on the Women in Finance Charter blueprint, which has been rolled a large number of Financial Services Organisation.”
What matters to employees
For the IBUK Top Insurance Employers survey, employees ranked the top 10 most important benefits, shown in the box below.
“We are finding that hybrid working is a top priority for candidates and is often asked even before salary discussions during the recruitment process” Jo Morgan, TH March
Regarding the top priority for employees being bonus/incentive programs, McLean explains there has been a shift back to basics. “Whereas in recent years, there had been a greater focus on providing a more holistic range of employee benefits, the current financial climate is undoubtedly seeing a shift in perceived importance to the more financially oriented aspects of the benefit programme,” she says.
In the survey, one of her colleagues at Arch says, “We can always say ‘pay more’ especially in the current economic environment.”
Cooper says retirement plans are something that everyone eventually prioritises. “We ensure our employees have access to comprehensive financial advice and support to maximise all of the benefits available to them,” she says. “We want to make retirement planning as easy as possible and positively encourage people to plan and save for their futures.”
Flexible work options have become integral as a result of the pandemic. However, McLean warns, “It is imperative that we ensure that the integration of flexible working does not hinder the development of the individual employee. In the case of the insurance industry, face-to-face interaction with colleagues and market peers as well as on-site mentoring and training are core parts of the development process.”
As part of the survey, an anonymous Arch employee states, “The work environment is really healthy, and management is friendly, open minded and always available.”
For Cooper, medical coverage through their current private medical insurance provider is paramount. “It’s reassuring to know employees can get quick and easy access to the support and treatment needed when needed without having to jump through unnecessary hoops,” she says.
Lastly, there are employee recognition programs. “It is vital that the hard work and dedication of employees across every level of an organisation are recognised,” says McLean. “Such recognition and reward provide an excellent mechanism for not just motivating employees but also reinforcing a positive company culture.”
Another anonymous Arch employee states that the company values its employees. “I feel as if I’m taken seriously and highly valued within Arch, and this is the first company I have worked for where I’d be happy to stay until I retire.”
“We need to continue to nurture and take care of our culture – in my opinion, culture needs constant attention, it’s not about periodic culture exercises” Jenny Cooper, Flood Re
What could be done better?
Progress is a constant process and not a destination.
Gosrani explains how standout firms gather data from their employees and act on it, which is something being practiced by IBUK’s Top Employers. She says, “So, they are listening on a frequent basis. If you look at some of the CEO changes across the insurance industry, we’re seeing a fundamental shift in type of personality and we’re seeing a lot more women in those senior roles than we’ve ever seen before, but also the old group of male CEOs that used to almost run that part of the industry have now moved on NED roles etc.”
The box below shows IBUK’s survey results about what employees feel on a range of issues.
The key to remaining a Top Employer is to appreciate what these types of changes mean. “You’re getting new blood who want to do things differently, and they recognise that the voice of the employee is extremely important,” adds Gosrani.
These initiatives are in action at Arch. McLean says due to the diversity of the workforce it’s difficult to generalise, so they combat this with a thorough approach.
“We have established employee forums and multiple methods and process for capturing feedback and measuring employee satisfaction, from group-level surveys to individual sessions,” she says. “This feedback helps us to understand what staff want and implement suggestions that are beneficial to creating a positive and productive working environment. Our aim at Arch is to continue to build on the success of our programmes and platforms to ensure that we are constantly listening and responding to the needs of our employees.”
On the survey, anonymous participants were largely happy with the work environment at Arch. Some expressed a desire for slightly better transportation options, more career development, better IT, maternity, and DE&I programs.
Meanwhile, Cooper prefers to think of what they can do to make working at Flood Re better.
“It’s important to stay focused and committed to our DE&I journey and clearly set out our ambitions,” she says. “We need to continue to nurture and take care of our culture – in my opinion, culture needs constant attention, it’s not about periodic culture exercises. And then we must continue to seek employee feedback so we really understand what it’s like working at Flood Re and use this to direct our efforts.”
“It is imperative that we ensure that the integration of flexible working does not hinder the development of the individual employee” Marcella McLean, Arch International
501+ employees
Crawford & Company
RSA Insurance
Specialist Risk Group
101–500 employees
Policy Expert
QuestGates
Quotemetoday.co.uk
26–100 employees
Momentum Broker Solutions
The Plan Group
10–25 employees
All Medical Professionals t/as All Med Pro & Grow Insurance Partners
Sutcliffe & Co. Insurance Brokers
To find and recognise the best employers in the insurance industry, IBUK first invited organisations to participate by filling out an employer form, which asked companies to explain their various offerings and practices. Next, employees from nominated companies were asked to fill out an anonymous form evaluating their workplace on a number of metrics, including benefits, compensation, culture, employee development, and commitment to diversity and inclusion.
To be considered, each organisation had to reach a minimum number of employee responses based on overall size. Organisations that achieved a 75% or greater average satisfaction rating from employees were named Top Insurance Employers for 2023.
Kieran Boyle, CKB Recruitment
Jo Morgan, TH March 
Jenny Cooper, Flood Re 
Marcella McLean, Arch International 