Insurance news

Car insurance premiums in the UK are showing signs of decline, with the average cost of a policy now at £447, according to Go.Compare’s data.

The comparison site’s recent price index indicates that the average premium in the first quarter decreased by £18 from the corresponding figure in the fourth quarter of 2023.

Here are the numbers, as published by Go.Compare:

Go.Compare motoring expert Tom Banks remarked on the findings: “It’s an encouraging sign to see that car insurance premiums have started to decrease. With the recent price rises hitting headlines, the cost of car insurance has been a hot topic – so this is news that will be welcomed by many.”

Regionally, motorists in Greater London face the highest insurance costs, averaging £650 – 78% more than the premiums paid by drivers in Wales and the South West.

Meanwhile, aside from retirees who have the lowest average premiums at £389, administrative assistants enjoy the next cheapest rates, averaging £490. Civil servants and shop assistants follow closely, with average premiums of £492 and £525, respectively.

Commenting further, Banks added: “While it’s good news that premiums are starting to stabilise, the current cost of car insurance is still £100 more on average than it was this time last year. This means it’s more important than ever for policyholders to get the best deal.

“We always recommend taking some time to shop around well in advance of your renewal and consider all your options in order to get the best cover for less.”

According to recent research from Go.Compare, 55% of UK consumers now make sure to compare options when renewing their policies.

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The Council of Lloyd’s is searching for a market-connected member of the Lloyd’s Enforcement Board (LEB), which has initial jurisdiction over all proceedings alleging misconduct.

Established under the Enforcement Byelaw and operates independently of the Council, the LEB currently consists of a chair, a deputy chair, and one market-connected member.

Lifting the lid on who is eligible to become a market-connected member, Lloyd’s noted: “Under section 7(1A) of the Lloyd’s Act 1982, a market-connected member of the LEB must fall within one of the following categories: a working member of the Society (for example, a non-underwriting working member); a director of a corporate member of the Society; an officer or employee of a managing agent, members’ agent, or Lloyd’s broker who is an approved person under section 59 of the Financial Services and Markets Act 2000; or a person who has gone into retirement but who immediately before retirement fell within paragraph (b) or (c) above.”

The Council’s nominations & governance committee will oversee the recruitment process for the additional market-connected LEB member.

“The committee would welcome expressions of interest from qualified individuals who would be interested in joining the LEB, especially from those with experience of legal, regulatory, or compliance matters,” Lloyd’s said.

“Lloyd’s success is integrally linked to the diverse composition of its workforce and the promotion of an inclusive culture. This applies to Lloyd’s governing bodies as much as it does to any other area of its business.”

Those who are interested have until July 19 to send any expression of interest to [email protected].

Lloyd’s added: “The nominations & governance committee would be grateful if you could include in your expression of interest: a brief statement of any experience that you consider relevant to the role; and an explanation of your eligibility to serve as a market-connected member of the LEB under section 7(1A) of the Lloyd’s Act 1982.”

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The London Market Group’s (LMG) Futures Academy has returned, running for two weeks from July 1 and culminating in a Careers Festival at the Lloyd’s Building on July 12.

Described by LMG as “bigger and better,” the second year of the initiative features 150 participating students (up from 2023’s 115) and 50 market firms offering their support.

Lloyd’s, WTW, Howden, Liberty Specialty Markets, and Marsh are hosting the students in the Academy’s first week. The participants will engage in various collective activities designed to enhance their understanding of the industry, supported by around 150 market volunteers.

In the second week, each student will spend time working within an insurance business.

“We were massively oversubscribed in our first year, so we have grown the programme significantly to meet the student demand and give more young people a chance to learn about the careers our market can offer.”

LMG CEO Caroline Wagstaff (pictured) added: “The insurance market needs more young people. Our London Matters data released earlier this year shows that there are as many people over 50 in the market as under 30. We can change that data point with initiatives like the Futures Academy.

“It is a great way to promote specialty insurance as a destination career to young people, and it also presents market firms with students from the diverse range of backgrounds that many want to tap into but find hard to access.”

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Brit has announced the appointment of former chief executive officer (CEO) and president of PartnerRe Jacques Bonneau (pictured) as a non-executive director, still subject to regulatory approval. Bonneau retired from his post at PartnerRe in March this year.

Bonneau was described as a highly regarded leader within the global re/insurance sector. Other positions he has held in his career include several senior executive roles at Chubb and senior advisor to the Bermuda Monetary Authority (BMA).

“Based in Bermuda, Jacques will bring considerable experience, insights, and relationships which will be of deep value to Brit as it embarks on a strategic plan to significantly expand its presence in Bermuda across property, casualty, and specialty reinsurance,” stated Brit.

Brit CEO Martin Thompson, meanwhile, expressed his excitement about having a seasoned reinsurance professional in the company.

“We are delighted to appoint Jaques to the board of Brit Re and believe welcoming an individual of his standing in the industry reflects our intent for Brit in Bermuda. We look forward to benefiting from his expertise and network,” he said.

Jon Sullivan, Brit Group’s chief underwriting officer, added: “Building out Brit Re to write a broader range of business is a natural next step for us. Bermuda is a dynamic and thriving multi-class re/insurance market and we are excited about the opportunity to attract new local specialist talent to work alongside Brit’s existing reinsurance underwriting capabilities in London.”

Meanwhile, Brit Re chairman Graham Pewter said: “We welcome Jacques to the Brit Re’s board. His appointment will support our Bermudian growth ambitions as well as deepening the board’s experience and strengthening our governance.”

It’s the end of the road for Leicester-based life insurance agency Dead Happy.

The company has issued as statement on its website announcing that it has now officially entered administration.

The statement reads: “Adam Stephens and Kevin Ley of Evelyn Partners LLP were appointed as joint administrators (the “administrators”) of Dead Happy on June 24, 2024.

“Please note that Adam Stephens and Kevin Ley are licensed as insolvency practitioners by the Institute of Chartered Accountants in England and Wales and as such we are bound by the Insolvency Code of Ethics when carrying out all professional work relating to insolvency appointments.

“This website will be used to provide customers and creditors with information and will be updated when new information becomes available.

“Following the appointment of the administrators:

• Customer policies all remain valid.
• Customers should continue to make payments as they have done previously.
• Contact with the company should continue through the same channels.

“The company remains regulated by the Financial Conduct Authority (“FCA”) and the administrators will continue to liaise closely with the FCA as the administration process progresses.”

Dead Happy controversy

After being founded in 2013, the firm was rarely out of the spotlight thanks to a host of controversial marketing campaigns. It claimed to offer “life insurance without the bullsh*t” and was slammed when it used an image of serial killer Harold Shipman as part of its campaigns. The tagline was “Life Insurance. Because you never know who your doctor might be.”

Though the company claimed the goal was to make people “stop and think” with the campaign, it was ultimately branded as “beyond despicable”.

The company nevertheless enjoyed a level of success. At one point it claimed revenue of £2.5 million and in excess of 25,000 active policies. According to a Businessdesk.com report, in July 2022 it employed around 32 people.

“We are pleased to be able to assist with ensuring a continuity of insurance provision for all customers as the business is wound down,” the same report quoted Evelyn Partners Adam Stephens as stating. “Evelyn Partners has been working with the Dead Happy management team and major stakeholders to enable a smooth transition for customers.

“We thank Dead Happy management for their support in this process and look forward to concluding the process with a positive outcome.”

Any thoughts on the tenure of Dead Happy? Leave a comment below with your thoughts.

The axe has reportedly fallen at embattled insurtech Wefox.

Chief executive officer Mark Hartigan is heading to the exit, according to sources, after the startup rejected a proposal from its most significant stakeholder – Mubadala Investment Co. – to sell the company. Hartigan had backed the proposed move.

Wefox CEO: A short tenure

Hartigan had only moved into the role in March in a bid to restructure the cash-strapped firm. Now he is set to be replaced by the end of the year.

That’s according to “people familiar with the plan” who spoke to Bloomberg News and asked not to be identified due to the information being private. Hartigan was previously an executive with Zurich and headed LV=. He replaced co-founder Justin Teicke when he moved into the role at Wefox, having previously been a non-executive chairman at the firm.

It was stated in the report that the board had approved a convertible loan agreement that had been prepared by its investors Target Global and Chrysalis Investments, thought to be worth around €25 million. The aim is to raise more money, according to the sources, with Wefox also allegedly in talks to sell its e-bike insurer Assona.

According to the same report, Wefox, Chrysalis, Target and Mubadala declined to comment while Hartigan did not respond to a request.

Where does Wefox operate?

Currently, Wefox has operations across eight countries and boasts more than two million customers. However, it is reported that funding requirements for the insurance business are placing a strain on its finances. There had been a proposal in place from Mubadala to sell the company to Ardonagh.

According to sources, Mubadala hasn’t committed to the financing round and is currently examining its options.

It is estimated that the Berlin-based insurtech saw losses in excess of €100 million last year and requires a further €70 million in fresh capital through this year.

An extraordinary meeting of the company’s shareholders, according to Bloomberg, has been put in place for Friday.

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American International Group (AIG) is selling its global personal travel insurance business to Zurich Insurance Group for US$600 million in cash plus additional earn-out consideration.

On what’s included in the sale, AIG noted: “The agreement includes the Travel Guard business and its servicing capabilities, excluding Japan and our AIG joint venture arrangement in India. Travel coverages offered through AIG’s accident & health business are also excluded from this agreement.”

Expected to close by the end of 2024, the deal will see Zurich combine the acquired operations with its travel insurance provider Cover-More Group.

Commenting on the agreement, AIG chair and chief executive Peter Zaffino said: “Today’s announcement is another important strategic step in positioning AIG for the future.

“I am proud of the work our team has done to establish Travel Guard as a premier provider of personal travel insurance globally, bolstered by strong relationships with some of the world’s largest airlines, online travel agencies, and credit card providers.

“I am confident that Travel Guard will continue its growth and success being part of Zurich Insurance Group. Our AIG colleagues will work closely with Zurich to ensure a seamless transition for employees, customers, and our global distribution partners.”

Meanwhile Cara Morton, CEO of Zurich Global Ventures, had this to say: “Travel insurance is a priority for us. This transaction is a great strategic fit, which enhances Zurich’s existing capabilities and makes us a leading travel insurance provider across all regions.

“The acquisition expands our retail customer base and aligns with our ambition to continuously enhance our offerings, while providing world-class protection during every step of our customers’ travels.”

According to Zurich, the acquisition is expected to result in combined annual gross written premium of approximately US$2 billion for the enlarged Cover-More Group.

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Legaltech firm Orbital Witness has introduced an insurance-backed accuracy guarantee called “AI Reliance” in partnership with First Title Insurance.

Based in London, Orbital Witness develops legal due diligence and client reporting software powered by artificial intelligence (AI). Its technology is currently used by more than 4,000 professionals for over 60,000 property transactions annually, leveraging generative AI for routine and time-consuming tasks.

Under the tie-up, First Title will underwrite Orbital Witness’s generative AI product output, covering errors that result in compensation claims.

Initially, AI Reliance policies will be available to law firm customers of Orbital Witness’s Orbital Residential, without requiring them to claim on their professional indemnity (PI) insurance. First Title will offer significant insurance coverage, matching the PI insurance levels mandated for law firms.

Ed Boulle, co-founder and chief strategy officer of Orbital Witness, stated: “Law is a highly regulated sector. Law firms are ultimately responsible for the services they provide to their clients.

“When adopting any new technology, firms must be able to satisfy the regulator (and their own insurers) that new technology is safe to use and won’t create additional risks to their clients. Generative AI is no different from other technologies in this respect.”

Meanwhile First Title chief executive Kevin Dick remarked: “AI is increasingly being applied to speed up and reduce the cost of real estate transactions. Law firms and conveyancing businesses need greater confidence that the AI technology they adopt is safe to use, can be relied upon, and is compliant.

“First Title’s innovative insurance policy is the first of its kind and stands to be transformational in the professional services industries, creating a benchmark for other AI providers to aspire to.”

Orbital Witness is authorised by the Financial Conduct Authority to distribute insurance on behalf of First Title.

“We might be the first AI provider to integrate insurance into our product, but we won’t be the last,” Boulle added. “Before long, insurance will – and indeed, should – form part of the framework within which businesses will be expected to use AI in a way that is guaranteed, financially accountable, and compliant.”

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There are major concerns among brokers about the lack of capacity in the non-standard insurance market, according to Prestige Underwriting’s market survey.

Conducted by Context Skythorn for the managing general agent in May, the poll found that 85% of personal lines brokers believe that there are not enough insurers providing capacity for non-standard business, even as the market is expected to grow.

More broadly, 79% of brokers across the whole market find it difficult to secure coverage for clients with specific non-standard risks.

Key issues also include service quality and risk appetite. Nearly half (48%) of brokers reported that capacity providers are too slow in responding to new business queries. Moreover, 91% of brokers working with non-standard risks share the view that all insurance providers should adopt a wider risk appetite.

Insurer support is another area of dissatisfaction among brokers. Over half (57%) of the respondents feel they are not adequately supported by insurers to effectively serve customers with non-standard insurance needs.

Meanwhile, there is notable recognition of the importance of rated capacity. Approximately 34% of brokers see rated capacity as business-critical, while 49% consider it important.

Tim Baxter (pictured), head of broker development & partnerships at Prestige Underwriting, stated: “The results of our survey underscore a pressing need for improvement in the non-standard insurance market.

“While brokers regard Prestige Underwriting positively, it’s clear that the broader market must address significant concerns around service provision and capacity.

“At Prestige, we are committed to consistently enhancing our services, and we hope to see a collective effort from all providers to better support brokers and their clients as the non-standard market continues to expand and evolve.”

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