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#BraverCultures at the Dive In Festival 2022 – 27 to 29 September – Find out more about here

“The case for greater diversity and inclusion in the workplace is clear,” McGovern said. “Not only is it the right thing to do but multiple studies have shown that it improves business performance and employee and customer satisfaction.”

For Darkins, who has dedicated her entire career to creating and supporting powerful human resources strategies, being in a position to champion the role that DEI plays in creating strong businesses is something she takes very seriously. DEI does not have to be complicated, she said, as seen from the numerous studies that prove the business case of a strong company culture.

“Studies, benchmarking and best practices provide a wealth of information for companies looking to get started on this journey,” she said. “And attending Dive In is an incredible opportunity [for insurance businesses] to understand more about this, to see what other companies are doing and just to learn from the experiences that people share. So, I would advise everybody to really make the most of what Dive In offers.”

In her role heading up AXA XL’s HR function in the UK, Darkins supports the wider business in establishing its employee experience agenda and understanding how the DEI lens ties into its overall strategic direction. At the top of that agenda, she said, is the drive to create a truly inclusive environment that focuses on the employee experience.

Adding to this, McGovern highlighted that what underpins this focus at AXA XL is the conviction that different ways of thinking, backgrounds and experiences will be key to its success – both today and in the long run.

Read more: Dive In: Shaping the future of the insurance industry

That inclusivity piece is critical as the rightful attention paid to the diversity element of DEI must not detract from the work that still needs to be done around inclusion. Simply put, inclusion means that everybody within an organisation feels able to bring their whole selves to work, she said, and that the needs of every colleague are taken into account.

It’s an area that has been spotlighted during the pandemic and the move to remote working, Darkins said. So, the insurance sector must not lose sight of it now but rather build on that understanding to encourage all colleagues to feel empowered to bring their whole selves to work.

There’s so much that can be done on both a macro and micro level to either start or continue a company’s DEI journey and crucial to making a success of it is having the right attitude. You don’t always have to have the answer, she said. It’s OK to ask questions and to actively seek out opportunities to learn and improve in order to propel the industry forward.

“It’s really about educating yourself and asking the right questions,” she said. “And we all have a role to play as colleagues, but this does need to be driven from the top. So, if you are a senior leader, and you’re not sure about next steps, or how to take this further, I’d say get involved in DEI initiatives. If you’ve got business resource groups, be an active member. So get yourself out there and educate yourself to help drive the change that we need across the industry.”

Read more: Diversity and inclusion in the insurance workplace

A DEI strategy cannot be effective in isolation, Darkins stated – it needs to be part of the wider business and people strategy. And it needs to be embedded into the very DNA of a business. A robust DEI strategy is one with measurable goals and objectives, that fit in with the broader ethos and ambitions of any given business.

“For example, at AXA XL, we have a robust DEI strategy and roadmap in place for the UK but it’s absolutely aligned to our global division’s strategy as well,” she said. “As part of that strategy, we set targets and use benchmarks and metrics to measure our progress. For me, it’s really vital to understand where we are currently, where we need to get to, and how we can do that. So metrics really help in terms of measuring our success.

“I think when setting targets, they do need to be ambitious to be meaningful. There’s no point in setting soft targets that we can easily meet, it’s really important to be ambitious to create that inclusive culture which we’re aiming for. And those targets can’t remain static, we need to adjust and change them depending on our data, the market and the environment.”

Going back to that leadership piece, Darkins said, having the right leaders who are able and willing to role model what it takes to achieve those targets is essential. And every colleague across AXA XL – including its leadership tier – has DEI goals set at the start of each year as part of their strategic objective.

It’s that top-down approach that has characterised the vast array of initiatives led by AXA XL to foster greater inclusivity across its teams. Its global Empower initiative, which supports talent in taking charge of their careers, is an example of a program that has resulted in a lot of positive outputs, she said, and AXA XL is now launching its second cohort. From a recruitment perspective, the insurer has implemented its diverse slate policy for all roles across levels to actively attract more diverse talent.

In addition, the team created its first job share initiative earlier this year, which has been a real success to date, Darkins said, as well as striking a partnership with an organisation supporting those looking to return to insurance after a career break. The company has also committed to several charters and initiatives to support further progress – including the Women in Finance charter, the Flexible Working charter and the Race at Work charter.

That’s to say nothing of its business resources groups, she said, as AXA XL has expanded its five colleague-led global business resource groups to 27 chapters around the world to help keep the insurer’s policies current and progressive. It sounds like a lot, she said, but there’s always more to do on this subject as, though the industry is on the right track, the speed of change needs to be further accelerated.

McGovern agreed strongly with this, emphasising that the London insurance market has made big improvements around inclusion and diversity in recent years. The increase in corporate- and industry-wide initiatives, and events such as the Dive In Festival, are strong examples of that, he said, and it’s right that those who are responsible are congratulated for that.

“However,” he cautioned. “I think we all recognise that we’re not yet where we need to be, and there’s still a lot more work that needs to be done to get us there. I, for one, am doing what I can to play my part, and I encourage my colleagues and peers across the market to do what they can to improve inclusion and diversity in our industry and beyond.”

Find out more about Dive In 2022 – September 27-29 – here

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Total revenue rose 3% to US$3 billion for the quarter, including organic revenue growth of 8%, driven by ongoing strong retention and net new business generation. This is on top of Aon’s total revenue increase of 4% in Q1 year-on-year.

Among other highlights in its Q2 2022 earnings statement, Aon reported its operating margin rose 20 basis points to 23%.

For the first six months of 2022, cash flows from operations decreased 16% to US$1,131 million, however. This was due mainly to higher receivables and incentive compensation payments following strong performance in 2021, partially offset by strong operating income growth, Aon reported.

“In the second quarter, our team delivered strong financial results that reflect the momentum of our business,” Greg Case, Aon chief executive officer, remarked.

“This performance highlights the fundamental strength of our core business and client belief in the exceptional value they receive through our globally connected Aon United operating model.”

Aon’s commercial risk solutions segment saw organic revenue growth of 7% on-year; its reinsurance solutions arm posted organic revenue growth of 9%; and wealth solutions, 3%.

The health solutions unit posted 11% organic revenue growth, reflecting double-digit increases across major geographies. Growth in core health and benefits brokerage was driven by strong retention and management of the renewal book portfolio, according to Aon.

Additionally, the firm said it repurchased 1.7 million shares for approximately US$500 million.

Aon remains confident it can handle macroeconomic headwinds as it enters the second half of the year. “When we look at the world as its stands, we’re in a unique place and incredibly well-positioned,” Case said during the firm’s earnings call.

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Swiss Re has published its financial results for the first half of 2022 – and while the numbers are positive, they’re generally much lower than those in the corresponding period a year ago.

According to the top reinsurer, here’s how it fared in the six months ended June 30:

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Financial results have come in from Bermuda, the base of global insurers Everest Re Group and Arch Capital Group.

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With the company now able to conduct face-to-face sales following the easing of COVID restrictions, its insurance division in June registered the highest amount of new business signed in a single month since November 2018. This helped drive annualised premium income to £26.2 million, compared to £24.4 million in December 2021.

According to Personal Group, the level of claims for the first quarter was higher than anticipated, but it subsequently started to return towards projected levels. The company also said that it was an encouraging sign that retention levels remain above the group’s historical average, demonstrating the continued relevance of its insurance products amid challenging economic times.

The relationship with Sage continues to strengthen, with annualised recurring revenue (ARR) increasing to £2.1 million from £1.6 million in December 2021. This made a significant contribution to the growth of the benefits platform division’s ARR to £3.8 million.

The group’s pay and reward and other owned benefits businesses performed in line with expectations.

Personal Group also completed the acquisition of Quintige Consulting Group at the end of the period, adding scale to its pay and reward division and helping consolidate its position in the UK employee services market.

“Personal Group is, I believe, well positioned within a growing market with an increasingly relevant offering,” said Deborah Frost, chief executive of Personal Group. “We are now putting the impact of previous pandemic lockdowns firmly behind us and with the current momentum and increasing scale of the business, we are on course to deliver revenue and EBITDA growth for the full year, in line with expectations.

“As a board, we remain continually mindful of the external pressures that we are all facing and know that no one is exempt from the uncertainty that prevails. However, past experience shows in challenging times our products continue to strongly resonate with our customers, as demonstrated by our insurance retention rates remaining above our historical average.”

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UK insurance platform Broker Insights has become a nationwide partner of Allianz.  

Announcing the new partnership agreement, Broker Insights chief executive Fraser Edmond declared: “Having initially focussed on brokers in their southern region during the early months of the year, Allianz has quickly felt the benefits from the market insights and trading engagement our platform provides.

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Following a member-led drive to topple Mark Hartigan from the top post at Liverpool Victoria Financial Services Limited (LV=), the embattled chief executive is leaving the insurer once a successor is named; a further bonus, however, is said to be not entirely off the table despite previous criticism from members.

A report by The Mail on Sunday noted that LV= refused to rule out awarding Hartigan a bonus for 2022, even after his £511,000 incentive last year drew flak not only from members but also from the likes of Gareth Thomas MP. Last month, Thirsk and Malton MP Kevin Hollinrake asserted it was “high time” Hartigan left.

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“I don’t think there’s a more resilient organisation that you could actually invest in,” was the CEO’s bullish message.

“I do think it’s important to note that in in all past recessions since 1952, we grew adjusted EPS and we know how to run a business in good times and in bad times,” Glaser said.

The broking boss described recessions as a “natural form of the economic cycle in a capitalist society.”

“We don’t fret over that, and we don’t plan all that much around it,” Glaser said.

The insurance market “is firm and remains firm”, Glaser said, with reinsurance on the property side “even tightening”.

Economic downturn impacts are typically first seen in its non-insurance businesses, Oliver Wyman and Mercer, Glaser told analysts.

“The red flag is not going up quite yet, but we watch it carefully,” the CEO said.

Marsh McLennan made 6,000 net hires last year and the Glaser described this as “pretty perfect [in retrospect]”. The business has slowed hiring into 2022, Glaser confirmed, having returned to a “more normal” pattern consistent with 2017 to 2019.

The slowdown “is not cautious”, Glaser said, but instead recognises the scale of new hires in 2021.

As for where the global broker might put measures in place if economic conditions warrant this, Glaser said the business remains in the “early to mid stages” of being able to drive operational improvements and cut internal costs.

“Most of our costs are pretty identifiable – you have compensation and benefits, you’ve got technology, you have premises or real estate, and you have T&E [travel and expenses],” Glaser said.

“So the levers that you can then utilise are valuable and I have to say we have a very large […] compensation pool driven by profitability.

“It is dramatically larger than it was a decade ago or five years ago because our profitability is dramatically larger, and that gives us tremendous flexibility of protecting shareholders in the event that we hit some headwinds on growth or macro-economic factors.”

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Specialist insurer Beazley has announced that its chair, David Roberts, will be stepping down from the board this fall to take up a role as chair of the Court of the Bank of England.

In the event a new chair has not been named by that time, Christine LaSala, the senior independent director, will chair the board and the nomination committee on an interim basis. Bob Stuchbery will act as interim senior independent director, and Nocola Hodson will act as interim chair of the remuneration committee while the company undertakes a search for a replacement board chair.

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“This new investment has never been more critical – at a time of significant economic pressure, to help level up communities and economies across the country through new infrastructure, homes, and technologies. But this ambition will not be realised without the right reform. While good progress has been made to deliver Solvency II reform, fundamental issues remain with the current proposals.”

On the proposals to reduce the risk margin and expand the matching adjustment (MA) eligibility criteria, the trade body described the overall package as “significantly less favourable” compared to the European Union version of Solvency II.

“The proposals for reform of the MA fundamental spread would result in a material Brexit penalty – the package in the UK will leave annuity firms worse off than if the UK were a member of the EU or even a ‘rule-taker’,” asserted the ABI.

“The European Parliament is proposing an ambitious reduction to the risk margin (4% of cost of capital, 0.9 value for lambda, and no floor). If adopted, these proposals would considerably dwarf the risk margin reform proposals in the UK for general insurance firms while calling into question the Brexit dividend.”

The ABI, which commissioned broking giant WTW to produce an independent report as part of the association’s response, went on to point out: “Under the current proposals, stated goals of a 10-15% release of current capital held by life insurers will not be achieved and the needed boost to long-term investment to support government ambitions will not come to fruition.”

Additionally, in the matter of policyholder protection, the trade body is concerned that the Prudential Regulation Authority (PRA) is “ignoring the many policyholder safeguards” within Solvency II. The response also spanned areas such as international competitiveness, reporting and administrative burdens, and the future regulatory framework.

“We all want to see reform of the Solvency II regime that works best for the needs of the UK and enables investment at a crucial time,” commented ABI director general Hannah Gurga. “The insurance and long-term savings industry could invest more capital to help level up the UK, boost the economy, and support the transition to net zero.

“The current proposals do not realise that opportunity and would risk penalising pension customers as a result of the increased costs associated with the proposed reforms. We are committed to working with the government and the PRA to find a solution that meets all of our objectives.”

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