Insurance news

Specialist insurer Hiscox has announced the appointment of Matthew Wilken as chief underwriting officer for Hiscox Re & ILS, effective Monday.

In his new role, Wilken will join the Hiscox Re & ILS executive team and will be responsible for executing the Hiscox Re & ILS underwriting strategy. He will be based in Bermuda and report to Kathleen Reardon, CEO of Hiscox Re & ILS.

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Mike Southgate – who became part of the Hiscox family in February 2020 in his capacity as divisional director for marine, energy, and specialty – has passed away.

“In his time with us,” noted the specialist insurer on LinkedIn in honour of Southgate, “Mike has been responsible for building and leading one of our most high-performing teams.

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It was in March 2019 when the insurer started advertising all new vacancies as a potential part-time, job share, or full-time opportunity. Said to be the first business in the UK to advertise jobs in this manner, Zurich also uses gender-neutral language in its job postings.

“Pre-COVID,” noted Zurich UK, “12% of external female hires were on a part-time basis. A stark contrast to the 12 months following the first national lockdown when it soared to 22%, suggesting the need for flexibility with many struggling to balance caring and home-schooling responsibilities with work. This is 10 times higher than male counterparts hired on a part-time basis which have remained consistent at just 2%.

“As well as doubling the number of part-time hires overall, Zurich has also seen numbers of applications from both men and women boosted by more than two-thirds since the initiative was launched. This could be attributed to people future-proofing their careers ahead of life changes further down the line.”

Meanwhile, citing new data from flexible working consultancy Timewise, Zurich said only 26% of UK job vacancies advertise flexible working options such as remote working, home working, or part-time hours.

“As advocates of flexible working for over a decade, we know that people still want to progress their careers while managing a whole host of other commitments,” stated Zurich UK HR director Steve Collinson. “Our approach is about removing barriers for those who need flexibility. We are urging the government to make businesses like ours advertise all roles as being available on a more flexible basis wherever they can.”

In the insurer’s view, current proposals that would give workers the right to request flexible arrangements from their first day do not address the issue of people being put off applying for jobs that are not advertised as flexible.

“Our part-time jobs initiative means we’re able to access a whole new pool of talent,” added Collinson. “This is a priority for us in the current climate but also benefits working parents, carers, those with portfolio careers or other interests they want to pursue.

“As the labour market tightens, employers need to rethink their approach to attracting and retaining talent. Workers want a new deal and are no longer prepared to work in outdated and rigid patterns.” 

Meanwhile Minister for Employment Mims Davies said flexible and hybrid working opens up more employment inclusiveness and progression opportunities to a wider range of talent. The MP went on to offer assurances that the government is committed to ensuring workers can balance their work-life commitments.

“Over the course of the last two years, we have seen an increase in people wanting to work more flexibly, and be able to adapt their work patterns around a variety of other responsibilities,” commented Caroline Nokes MP, chair of the Women and Equalities Select Committee.

“I am pleased to see this initiative from Zurich, recognising the impact that the way you advertise roles can have on the number and diversity of applicants. As we build back from the pandemic, it is going to be crucial to find different ways to make sure as many people as possible are playing as full a part in the workplace as they can, and flexibility will be key to that.”

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“To make sure we keep doing that, we have created the Launchpad to foster innovation and align more closely to the flourishing Lloyd’s Lab.”

According to the centuries-old insurance marketplace, potential ideas can now be directed to where they’re most relevant – be it the Lab, the Launchpad, or other areas such as the Lloyd’s Disaster Risk Facility.

The Launchpad continues the work of its predecessor facility, enabling the market to keep partnering with insurtechs and providing underwriters a space to experiment in a safe and controlled manner, all while balancing the need for appropriate oversight with the risk of not innovating fast enough.

The facility has developed, among other things, a parametric profit protection policy for the hotel industry; an insurance product against losses arising from the theft of cryptocurrencies held in online wallets; and a business interruption policy for when business-critical, cloud-based services go down.

Described as “the new home” for the development of insurance solutions to tackle emerging risks, the Launchpad is co-chaired by Beazley incubation underwriting head George Beattie and Chaucer strategy head Hayley Maynard.

In the joint statement, they commented: “We’re excited about 2022 and what it holds for our eclectic group of insurance innovators. With a new look and refreshed purpose – but the continued and valuable support of Ed Gaze and the Lloyd’s innovation team – we’re committed to finding practical and measurable insurance breakthroughs.

“The industry can expect new products and partnerships from the Launchpad that will reinforce Lloyd’s reputation as the best place in the world for commercial insurance innovation.”

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Insurance Business UK’s inaugural Fast Brokerages 2022 report aims to recognise the fastest-growing brokerages in the region. If your brokerage has enjoyed a year of increased revenue, headcount growth, and acquisitions or successfully refocused offerings, then this showcase is the right platform for you.

To be eligible, you must provide information on your company’s headcount and revenue figures during 2020 and 2021. All figures provided must relate to a brokerage’s operations across the UK only.

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Legal & General group chief executive Nigel Wilson, who has been at the helm of the financial services group since 2012, has been knighted.

Wilson was one of the 23 individuals who made it to the Knights Bachelor list within the 2022 New Year Honours. The recognition, recipients of which include former Lord Mayor of the City of London William Russell, is the oldest form of knighthood in the British honours system.

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Data from the Office of National Statistics (ONS) show that more than 260,000 weddings were postponed across the UK in 2020 as the coronavirus outbreak disrupted almost every aspect of people’s lives. And despite the restrictions slowly easing across the country, the impact of the pandemic is expected to be felt not just by couples planning their special day, but also wedding industry professionals whose jobs rely on the success of these celebrations. 

Is getting wedding insurance necessary?

One lesson that people have learned with the pandemic is that unexpected events can throw a wrench even in the most well-planned celebrations.

Separate surveys by wedding services providers For Better For Worse and Hitched.co.uk have pegged the cost of the average wedding in the UK at around £30,000 to £32,000 – and for an expenditure this huge, the companies say it may be wise to invest in wedding insurance.

However, not all wedding celebrations require coverage, according to Hitched.co.uk.

“You don’t need wedding insurance if you’re hosting a small wedding and you have agreements in place with your venue and/or suppliers making it easy for you to postpone or cancel with little to no financial repercussions,” the firm wrote in an article posted on its website. “If it would be easier for you to rearrange your day by yourselves without the assistance of an insurance company, then this may be the preferred option for you. However, in most cases we do recommend having at least basic cover in place.”

What does wedding insurance cover?

Most wedding services and financial comparison websites have sections dedicated to wedding insurance to help consumers decide if getting coverage is the right option. A quick check on these websites reveals the following as the typical inclusions in a standard wedding insurance policy.

• Venue problems: Policies typically cover the costs incurred when certain events have made it impossible to hold the ceremony in the chosen venue, including flooding, fire, and bankruptcy. Insurance also provides coverage if, for any reason, the venue owners suddenly cancelled the booking. This clause is often found under cancellation cover.
• Cancellation due to illness, accident, or death of a family member: When a wedding needs to be postponed or cancelled because of these incidents, wedding insurance should cover the cost. Coverage also applies if these things happen to someone who is an integral part of the wedding such as the bride, groom, maid of honour, and best man. For illnesses to be covered, however, they must not be caused by a pre-existing condition.
• Weather-related cancellation: Most policies cover cancellations caused by extreme weather if half of the guests cannot attend. 
• Lost or damaged items: Wedding insurance offers coverage if certain items vital to the ceremony are either lost or damaged. These include wedding bands, cakes, flowers, and wedding attire. Some policies cover wedding gifts as long as they are not left unattended, while some provide coverage for flowers and cakes only until the wedding reception. Most policies also cover instances when one of the suppliers does not turn up.
• Photo or video issues: A policy may cover reshoots if technical problems result in the loss of photographs or videos. This also applies when the people tasked to provide photo and video coverage are unable to attend.
• Personal liability: This covers third-party injury or damage to property occurring in the wedding ceremony.

What does wedding insurance exclude?

Wedding insurance does not cover cancellations if either of the couple has a change of heart or for those resulting from minor issues such as a misplaced decoration. Cancellations or postponement due to financial difficulty are also not covered, although some policies provide coverage if one of the couples experiences redundancy, depending on how close it is to the wedding date. If the wedding could not push through because a family member gets sick or dies because of a pre-existing medical condition, this is also not covered.

Some insurance companies offer coverage for outdoor weddings in an event extreme weather halts the ceremony. Some also provide coverage for marquees and ceremonial swords. However, all these are excluded from standard insurance and must be purchased as an add-on.

How much does wedding insurance cost?

Insurance rates depend on a range of factors, including how much the wedding costs and the type of coverage needed. Premiums can start at as little as £20 for ceremonies costing less than £2,500 and can reach £300 for weddings worth £100,000.

Does wedding insurance cover COVID-19-related cancellations?

Many wedding insurance providers paused the sale of policies after the pandemic struck as they continued to assess the risks brought about by COVID-19. Policies purchased before the pandemic, however, remained in place. For those accepting new clients, many do not provide protection against coronavirus-related incidents.

Here is what the policies of some of the UK’s biggest wedding insurers say regarding COVID-19-related cover, as of December 2021:

Emerald Life

Emerald Life has temporarily suspended the sales of wedding insurance, according to its website. Existing policyholders, however, may be covered if a key member of the wedding party contracts the coronavirus or if a venue cancels “because it is self-isolating as a one-off event.” Cancellations arising from the government’s implementation of lockdowns and assembly restrictions are not covered.

Read more: Emerald Life to offer travel insurance for LGBT community

The Insurance Emporium

The Insurance Emporium has also paused selling new wedding insurance policies due to the pandemic. Policies that were already purchased remain valid. But according to the insurer’s website, these do not cover claims resulting from a notifiable disease, which it defined as “any disease that is required by law to be reported to government authorities.”

“COVID-19 (coronavirus) has now officially been registered as a notifiable disease in the UK,” the company added.

Read more: CEO of E&L Insurance lifts the lid on The Insurance Emporium

John Lewis

John Lewis is also not offering new wedding insurance policies, as of December 2021, but existing ones remain in force. On its website last updated on August 10, the insurer says: “Our policy will provide cover if your venue for the wedding or wedding reception is unable to hold your wedding due to the outbreak of infectious or contagious disease, the venue is closed by the relevant authority, or the death, injury or sickness of you, your close relative or members of your wedding party (e.g. the best man, bridesmaids, page boys and ushers) that would make continuance of the wedding inappropriate, subject to the policy terms and conditions.”

Read more: John Lewis creates home insurance partnership

Wedinsure

Wedinsure has a page dedicated to coronavirus-related FAQs, but this only applies to policies purchased before March 19, 2020. The insurer resumed sales of wedding insurance on October 23, 2020.

According to the website, Wedinsure would consider a claim for cancellation or rearrangement resulting from the coronavirus for the following reasons:

• The venue is unable to hold the ceremony and/or wedding reception due to the coronavirus.
• Unavoidable cancellation of the wedding due to the death, injury, or sickness (including COVID-19) of the prospective marriage or civil partner, or close relatives (defined within the policy), which would mean that having or continuing with the wedding and/or wedding reception would be impossible.
• The caterers for the wedding being unable to provide the service for or at the wedding due to an outbreak of COVID-19 at their premises.

WeddingPlan Insurance

WeddingPlan Insurance also has a dedicated FAQ page, which answers some questions related to COVID-19. With regard to additional costs arising from cancellation or postponement due to COVID-19-related government restrictions, the insurer says: “Your policy covers you for unrecoverable costs in the event you need to make a claim for cancellations or rearrangement… Your claim would need to be as a result of something which is specifically covered (an insured event) under [the cancellation and rearrangement] section and is not otherwise excluded or outside the limits of your policy you purchased. For rearrangement specifically, we would cover a cost up to but not exceeding 25% more than the original invoice.”

For cancellations due the bride, groom, or a close relative testing positive for the coronavirus, the company says: “Your policy provides cover for the death, injury, or sickness of you or your close relative, which would make continuance of the wedding inappropriate. You would need to provide evidence of a diagnosed COVID-19 infection and details of why the continuance of the wedding is inappropriate.”

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The financial comparison website’s latest Young Drivers Index also shows that the average cost of a full comprehensive policy for motorists in the 17 to 19 age group stands at £935, which is significantly higher than the £364 average for those aged 20 and above.

To come up with the figures, the firm analysed more than one million quotes requested by its clients between June 2020 and June 2021. The company also used the data to identify the most popular cars among first-time drivers and the typical cost of insuring these vehicles.

The Ford Fiesta tops the list of most popular cars among young motorists based on insurance searches, according to the index obtained by financial advice and information website This Is Money. But with fully comprehensive coverage for 17- to 19-year-olds costing an average of £711, the model is not the cheapest to insure for the age bracket.

None of the top three favourites actually made the list of cars with the lowest premiums. The Vauxhall Corsa and Volkswagen Polo, which placed second and third in the most popular rankings, cost £689 and £656 to insure for first-time drivers.

For these three models, the average insurance rates drop to £347, £393, and £392, respectively, for drivers aged 20 and older. 

Read more: Young drivers across the UK are feeling the crunch of rising auto insurance costs

Why is car insurance more expensive for young drivers?

Every registered vehicle in the UK is included in one of 50 insurance categories, according to MoneySuperMarket. The easier the car is to repair, and the less rare, expensive, or powerful it is, the lower the group it will fall under. Premium costs also tend to be cheaper when the vehicle is in a lower insurance category.

The following factors are the primary determinants for a vehicle’s grouping, according to the financial comparison website:

• Vehicle’s price
• Cost to repair
• Cost of common replacement parts
• Length of time to repair
• Performance, including acceleration and top speed
• Safety and security features

However, insurance groupings are not the only factors that impact premium prices. Insurance cost can also be affected by every driver’s details, including age and driving history.

Read more: Ten most (and least) expensive job titles for car insurance

“Car insurance premiums are often higher for drivers who have recently passed their test as insurers associate more risk with them,” Praksha Patel-Shah, car insurance expert at MoneySupermarket, told This Is Money. “Prices can also differ significantly depending on the type of car you drive.”

To save on premiums, Patel-Shah advised motorists, especially the younger ones, to shop around using price comparison sites to find the best deals. She also shared tips on how first-time drivers can lower car insurance costs.

“There are a number of ways for newly qualified Britons to reduce their insurance premium,” she said. “You can keep costs down by reducing your mileage or opting for a higher excess. You could even look into telematics policies, which use data to monitor how people drive, and use this to determine the cost of their car insurance. The more careful the driver, the more competitively priced the policy.”

“It’s also important that you don’t just accept the first car insurance quote you receive,” Patel-Sheh added. “By shopping around and comparing you could easily save yourself up to £235.”

Read more: Top 10 car insurance companies in the UK

Ten cheapest cars to insure for first-time drivers in the UK

The cheapest cars to insure are not necessarily the most popular for the country’s young drivers. However, these vehicles do not necessarily lag in performance and can enable newly licensed motorists to save hundreds of pounds in premiums. These are the least expensive cars to insure for drivers aged 17 to 19, based on MoneySuperMarket’s data.

1. Citroen C1

• Average full comprehensive cover for 17 to 19: £506
• Average full comprehensive cover for 20+: £294
• Difference between age groups: £212
• Percentage increase between age groups: 72%

Topping the list is the Citroen C1, which runs on a fuel-efficient 1.0-litre petrol engine that is suitable for city driving. The model is also easy to maintain, helping keep insurance costs down. Based on auto review site Parkers’ insurance group checker, most versions of the vehicle fall under category six to 13. Annual premiums for the 17 to 19 age group, however, are still 72% higher than those for over-20 drivers. 

2. Fiat 500 Pop

• Average full comprehensive cover for 17 to 19: £509
• Average full comprehensive cover for 20+: £319
• Difference between age groups: £190
• Percentage increase between age groups: 60%

The Fiat 500 Pop is the entry-level model in the Fiat 500 range and the first version on the list. It is powered by a 1.2-litre petrol engine capable of 59 miles per gallon (mpg), good for driving around the city. Insurance starts as low as group seven but can go up to group 15, depending on the trim.

3. Fiat 500 Lounge

• Average full comprehensive cover for 17 to 19: £519
• Average full comprehensive cover for 20+: £304
• Difference between age groups: £215
• Percentage increase between age groups: 71%

The second of three Fiat 500 models in the list is also the ninth most popular car for young drivers, and for good reason. Apart from Bluetooth connectivity, it is among the most fashionable small cars with its retro styling. Lounge comes with three engine options: 1.2-litre petrol, 900cc petrol, and 1.3-litre Multijet diesel. The last, capable of 76mpg, is the most efficient engine in the line-up. Just like Pop, Fiat 500 Lounge falls under insurance groups seven to 15.

4. Peugeot 107

• Average full comprehensive cover for 17 to 19: £539
• Average full comprehensive cover for 20+: £286
• Difference between age groups: £253
• Percentage increase between age groups: 89%

The Peugeot 107’s strength lies on its low running costs. The car’s 1.0-litre, three-cylinder petrol engine runs at 66mpg and emits just 99 grams per kilometre (g/km) of carbon dioxide (CO2), making it free to tax. Some review sites, however, say the model is not “well-equipped” and may “struggle in out-of-town” drives. Peugeot 107 falls under the three to five insurance categories.

5. Ford Ka

• Average full comprehensive cover for 17 to 19: £543
• Average full comprehensive cover for 20+: £315
• Difference between age groups: £277
• Percentage increase between age groups: 72%

Ford Ka also takes the fourth spot in the most popular rankings, the highest among the models included in this list. Ka insurance costs are among the lowest in the country, thanks to its large dealer network and affordable replacement parts. Most versions are under insurance group three. 

6. Toyota Aygo

• Average full comprehensive cover for 17 to 19: £550
• Average full comprehensive cover for 20+: £305
• Difference between age groups: £245
• Percentage increase between age groups: 80%

Competitively priced, the Toyota Aygo is cheap to run with its 1.0-litre VVT petrol engine and emits very low levels of CO2, meaning motorists do not have to pay road tax. Older versions sit at insurance groups two or three, while recent releases fall under the six to nine categories.

7. Fiat 500

• Average full comprehensive cover for 17 to 19: £560
• Average full comprehensive cover for 20+: £299
• Difference between age groups: £261
• Percentage increase between age groups: 87%

Just like the other versions in the list, the Fiat 500’s small engine makes it cheap to run. Recent versions are powered by a 1.0-litre, three-cylinder engine that also features a mild-hybrid technology consisting of a 12-volt starter generator and a small lithium-ion battery. The vehicle is capable of 53.3 to 56.5mpg, with carbon dioxide emissions starting at 105g/km. Insurance rate gap between age groups, however, is among the highest in the list.

8. MINI One

• Average full comprehensive cover for 17 to 19: £587
• Average full comprehensive cover for 20+: £429
• Difference between age groups: £158
• Percentage increase between age groups: 37%

The MINI One retains the style and character of 60s cars, making it the fifth most popular car among young drivers. Versions running on a 102 brake horse power (bhp) 1.2-litre TwinPower petrol engine or 95bhp 1.2-litre TwinPower turbo diesel engine are available, both equipped with engine stop-start to boost fuel-efficiency and cut CO2 emissions. MINI One sits relatively high in the insurance categories, with the lowest rating at group 13.

9. Renault Clio

• Average full comprehensive cover for 17 to 19: £626
• Average full comprehensive cover for 20+: £354
• Difference between age groups: £277
• Percentage increase between age groups: 77%

The Renault Clio is powered by a 1.0-litre petrol engine with 99bhp, with 1.3-litre TCe petrol versions offered in trims with an automatic gearbox. The car’s low running costs make it appealing to many young drivers, placing sixth in the most popular list. Insurance rating starts at group three but can go up to category 12, depending on the trim.

10. Ford Fiesta Zetec (80)

• Average full comprehensive cover for 17 to 19: £648
• Average full comprehensive cover for 20+: £364
• Difference between age groups: £284
• Percentage increase between age groups: 78%

The Ford Fiesta Zetec is designed for younger buyers who want a car with a sporty look and feel, minus the high maintenance costs and expensive premiums. It is powered by a 1.6 TDCI diesel engine with 94bhp or a 1.0-litre EcoBoost turbo petrol version with 123bhp. In 2019, however, Ford replaced the Zetec with the Trend trim, which comes with several feature upgrades. 

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“Everybody is now more comfortable with digital,” he said, “in fact, they’re demanding a digital experience and we have this investment ready to meet that demand. We’ve been working with customers over the past 18 months through a customer focus group who have been co-creating with us. We’ve been asking them, ‘what have you been looking for? What would you like to see – in terms of digital, online and mobile apps.’ They’ve been helping us and advising us along that road”

By asking the right questions, Prestige has put itself in the mindset to explore the standards being set by other industries, Allen said. Times have changed and people are now keener than perhaps ever before to use digital when accessing services – from ordering a pizza, to hailing a taxi, to online banking. Why shouldn’t insurance be like that, he asked?

“Stroll is [well-placed] to lead the market, because we have banked the time and made the investment into research,” he said. “We’ve spent the time with focus groups of our customers, letting them co-create what they want to see. But something that has come out very loud and clear is that we can no longer benchmark against our insurance competitors. The expectations are being set by Amazon and Apple and Google and all those people who are digital natives – and organisations like ours need to live up to those expectations.”

The philosophy behind Stroll is reflected by its name, Allen said, because it’s all about trying to make insurance as easy as a walk in the park. Purchasing or renewing an insurance policy can be an additional stress for people who already have plenty of financial services concerns to think about.

Prestige is looking to make the entire process as stress-free as possible by aiding the evolution of insurance into a digital service, available at the click of a button. Stroll will allow the customer to obtain a quote or make a purchase online and will offer a companion app through which they can fully manage their insurance policy documents in the palm of their hand.

“The time is right for a new solution,” he said. “There’s a particular demographic of customers, a younger demographic, who will queue up for self-service tills rather than have to speak to someone at a manned till. That demographic of people will tell you that the world has changed. There is a strong cohort of people who want to self-serve but more than that, they want to self-serve at a time that suits them in a place that suits them. And that’s what we’re offering with Stroll.”

Read more: Prestige Insurance Holdings completes swoop for Autoline

A real positive of Prestige’s recent market announcement is its reflection on the role that professional talent plays in building a digitally-orientated insurance firm. Staff can often become slightly wary when a spotlight gets shone on digital, he said, as there is a wrong but natural assumption that this will mean fewer people are required by a firm. This is resolutely not the case for Allen and his team.

This investment is not about cost-saving, he said, but rather about giving the customer what they want, when they want it. Customers have said that they want to self-serve digitally but also that they want to have a reassurance that, should they need to, they can talk to someone or a real person – whether that’s through online chat or voice channels. That’s what Stroll will be doing, which is why the 60 jobs this opportunity is creating will be within business areas ranging from technical jobs such as coders, through to product managers, marketing roles, and those critical people who will be talking to customers on a daily basis.

“We’re in growth mode,” he said. “We need the people we have for that and we need additional people also. We have a history of growth, whether that’s through acquisition or organic growth. This is part of our organic growth strategy, and we will continue to push that. But we’re always going to acquire other businesses and grow inorganically too and we continue to have the capacity to do that when the right opportunities come along. This is a time for growth for the Prestige group, it’s a time for innovation and it’s a time for improving everything for our customers.”

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