Insurance news

Aon has officially announced the launch of its new pricing platform, a new software solution that aims to provide insurance companies an edge through better risk selection and meaningful analytics.

Helmed by the firm’s Strategy and Technology Group, the pricing platform will allow insurers’ in-house teams to develop tailored workflows for underwriting all classes of both commercial and reinsurance businesses. Aon enumerated its benefits across different divisions as follows:

• Underwriters can easily access the data they need through system integration
• Actuaries can build and update models swiftly to react to market changes
• Executive managers can access near real-time portfolio information
• IT teams can handle other value-add activities, with Aon hosting the platform

The pricing platform uses Aon’s proprietary model builder technology to allow pricing teams to configure their own web dashboards via drag-and-drop features in minutes, as opposed to days or weeks. The pricing platform also allows choices of calculation engines, whether it’s the widely adopted Python or the high-speed Tyche. It also features a flexible data schema that automatically captures data to generate management information.

To help insurers in their pricing, reserving, and capital modelling decisions, the Strategy and Technology Group also provided a suite of technology across property and casualty and life businesses. Aon Strategy and Technology Group head of pricing Dr. James Gillespie said that this new proposition helps insurers raise both their performance and profitability through accurate pricing.

“Accurate technical pricing is key to insurers’ operational performance and profitability, informing better decisions in an environment of macroeconomic volatility and subdued investment returns. It is vital not only for business planning, but also in ensuring the front-line implementation of an insurer’s business plan,” Gillespie said.

What are your thoughts on this story? Please feel free to share your comments below.

SCOR chairman Denis Kessler has died aged 71, the reinsurer said on Friday.

The business paid tribute to Kessler, who it described as “an iconic figure of the insurance and reinsurance world, and more widely of the French business world”. Kessler joined SCOR in 2002 as chairman and CEO, becoming non-executive chairman of the global reinsurer on June 30, 2021.

SCOR vice-chairman Augustin de Romanet is set to chair the board for an interim period, with a new chairman to be appointed following an ongoing process.

The reinsurer’s directors hailed Kessler as having made a “profound imprint” on the group.

“We salute the memory of a great man and an extraordinary leader, who was passionate about the insurance and reinsurance industries, their techniques, their values and their philosophy,” they said in a joint comment. “Denis has made a tremendous contribution to SCOR’s development over the past 21 years, and more widely to public debate on major contemporary economic and social policy issues.”

SCOR CEO Thierry Léger praised Kessler’s “unparalleled passion” for reinsurance and his ambitions to make the business a leader in the reinsurance space.

“I am privileged to have had the opportunity to work alongside Denis,” Léger said. “He leaves us an extraordinary legacy.

“It is now up to us to carry on his work.”

SCOR chairman Denis Kessler – a life’s work

Kessler was born on March 25, 1952 in Mulhouse, France. Prior to entering reinsurance, he taught at a secondary school before taking up a career as an economics researcher, acting as an assistant lecturer in economics at Paris X-Nanterre University from 1978 to 1985.

From 1982 to 1990, he chaired CEREPI, the Center for Study and Research on Savings, Wealth and Inequalities.

Further notable roles previously held by Kessler include professor at Nancy II and later a professor at EHESS, the School of Advanced Studies in the Social Science, from 1990.

He was chair of the Foundation for Economic and Financial Research from 1985 to 1990 and sat on the board of directors of Union des assurances de Paris for two stints,  from 1983 to 1986 and 1988 to 1990.

In 1985, he was named chairman of the Banking Services Users’ Committee at the French National Credit Council, a role he held until 1990. That year, Kessler became chairman of the French Federation of Insurance Companies (FFSA) and remained in post until 1997, and then from 1998 to 2002.

He was on the executive committee of the National Council of French Employers (CNPF) and became its executive vice-chairman in 1994, and was vice-chairman and chairman of the Economic Commission.

Kessler was appointed senior executive vice-president and executive committee member of AXA in 1997, later leaving to support Ernest-Antoine Seillière, chairman of the CNPF.

Kessler acted as a board member for several companies, including Dexia (1999-2009), Bolloré (1999-2013), BNP Paribas (2000-2022), Invesco (since 2002) and Dassault Aviation (2003-2014).

The late SCOR chairman was elected to the Academy of Moral and Political Sciences of the Institut de France in 2016.

Earlier this week, the Confederation of British Industry (CBI) won a survival vote over its future following a string of misconduct allegations.

The CBI reported that 93% of the 371 members who voted had affirmed their support of its plans to reform the organisation, with its new director general Rain Newton-Smith calling the results, “a really strong mandate from our members“. However, coverage from the Financial Times quoted one executive at a company which has quit the CBI as saying the group has “a nerve” to claim the result was a vote of confidence.

Whatever your view of the vote, it seems that the way ahead is still not clear for the UK’s leading business lobby organisation which has faced claims of sexual harassment, a toxic working environment and two allegations of rape. Industry commenters have pointed to the need for the organisation to win over politicians and big business once more if it is to recover from the multiple body blows it has been dealt in recent months.

Broadly speaking, the insurance market reacted responsively to the allegations surrounding the CBI, with many top insurers and associations exiting the body, and coherently rationalising that decision. But as the tone of discourse around the controversy has evolved from a drip feed of shocking allegations to broader-level conversations around necessary reforms and a way back into the favour of government and industry alike – commentary has also shifted.

A #CBI hashtag on LinkedIn or Twitter will dredge up no shortage of individuals happy to share their 2020-vision insights into the oh-so-obvious mistakes made by the organisation. They point to the merry band of villains and fools that it takes working in conjunction to brew up a scandal of this magnitude, and the blend of complacency and complicity that it requires for a toxic culture to thrive.

That’s not to say these commentators are wrong. But these discussions need to be held in a broader context, swapping finger-pointing at the self-evident for an honest and open appraisal of where these same failures of culture are being carried out away from the glare of public opinion.

Make no mistake, these scandals have resulted from a breakdown in culture. And no business that prides itself on its culture can risk dismissing the graphic case study offered by the CBI of what that looks like when exposed to the light of day. A culture that champions accountability and does not shrink from culpability is as fragile as it is powerful and should not be taken for granted, but rather treasured and protected.

Culture has become a board-level agenda topic among insurance businesses of every size and scale, and rightly so. But whether it’s a question of culture, cyber risk or business interruption, companies run the risk that increased C-suite level scrutiny can lead to a reduction in the sense of ‘ownership’ of that risk across the lower echelons of the business. Every effort needs to be made to ensure buy-in across organisations and open up as many lines of communication as are necessary to allow every voice to be heard.

A root-and-branch approach needs to be taken to digging out poor behaviour and embedding accountability at the heart of insurance businesses – but fundamentally, this starts and ends with the individual. It’s one thing to be able to look back and identify poor behaviour by colleagues or breakdowns in the stated culture and values of your organisation. It’s another thing entirely to be on the front-line, pointing out those failures in real-time and running the very real risk of alienation or making yourself a target.

There will always be people who fall short of expected behaviours and no recruitment process or learning and development initiatives in the world can provide a fail-safe guarantee against these individuals. As we’ve seen from the discussions that emerge from failures in our police departments as well as our institutions – financial or otherwise – the argument of a “few bad apples” is often seen as discrediting, if not downright insulting, to the victims let down by institutional-level failures in culture.

But I would say businesses ought to take the “few bad apples” protestation not as a get-out-of-jail-free card but rather an admonishment. Is your culture so weak that a few bad actors can dilute it so completely? Are the fair or ethically-minded people who make up the bulk of your teams so inhibited that they can’t call out inequities they’ve witnessed?

Businesses across the insurance ecosystem need to engage in creating the right structures to empower the right behaviours as well as preventing the wrong ones. And the people within insurance businesses need to actively engage with these lest run the risk of becoming after-the-event prognosticators, able to predict only what has already been. Hindsight will always remain 2020 so it is better for us all if we focus on updating our present-day prescriptions.

What are your thoughts on this story? Feel free to share them in the comment box below.

MPs have criticised insurers over their response to the Galpin’s Road gas explosion that killed a young girl and forced hundreds of people to leave their Thornton Heath homes, some of which have since had to be demolished.

Speaking during a sweeping Treasury Committee hearing on insurance, Siobhain McDonagh MP, the Labour representative for the Mitcham and Morden constituency in which the August 2022 blast occurred, took aim at slow response times to the emergency situation and claims barriers.

The local authority has spent around £2 million on alternative accommodation costs despite many displaced individuals having had buildings insurance in place, according to McDonagh.

“Nearly all those people were owner occupiers with building insurance, but it wasn’t the insurance companies who set up the emergency resource centre or found out how those people would have somewhere to live or had any clothes on their back,” McDonagh said.

The MP gave examples of people being told they could not be supplied with a courtesy car despite police cordons barring access to theirs, and others who were not provided with temporary accommodation by their insurer because loss adjusters had not yet inspected the premises. She also gave the example of insurers demanding receipts for contents from a man whose wife was severely burned, despite the house having “fallen down” months ago.

“People couldn’t get what they were paying for, they couldn’t get emergency services, and that was universal across the companies,” McDonagh said. “How can that be right?”

 The MP also flagged underinsurance issues, with some policyholders facing unexpected bills for contents and their buildings, and this having a knock-on effect preventing others in terraced houses from getting their homes back.

“A number of houses had to be knocked down, because they were structurally unsafe, and so in a terrace, you’ll get somebody who’s insured for a million pounds to replace their property and the people on both sides are insured for half a million,” McDonagh said.

“To clean and prepare the site, and then build the houses, the people insured for half a million pounds are not going to get their four-bedroom houses back, and the person in the middle of the terrace [who was] properly insured can’t do it, because the others can’t.”

Some policyholders have been fearful of claiming on their insurance due to anticipated premium cost rises as a result, insurer bosses were told.

“They’ve lost everything they worked for, through no fault of their own – and one of the constant feedbacks the council would get at its public meetings … is people saying, ‘I don’t want to claim on my insurance, because I don’t want my premium to go up’,” McDonagh said. “‘I [the policyholder] didn’t cause the gas explosion, how fair is it for my premium to be increased?’”

The Galpin’s Road case was later raised in proceedings by Rushanara Ali MP, who called for an insurer inquiry into loss adjuster accountability.

“We would have examples where there have been very significant floods in parts of the country and we have made sure that there is an emergency response there so that people can be supported on the ground,” Clark said. “In this instance, in this example, as you describe it, the response doesn’t feel acceptable, but I’m not aware of the details.”

From job creation, to GDP growth, to nurturing the spirit of entrepreneurship – the critical role SMEs play in shaping the UK economy is underpinned by their access to the right insurance programmes and risk management expertise.

As regional director of the North and Scotland for WTW, Chris Milnes (pictured) works with businesses of every shape and size, and so sees first-hand the responsibility insurance businesses have to support their clients at every stage of their growth journeys. Entrepreneurship drives growth for everybody, he said, and getting the right support structures in place is what enables businesses to scale-up and develop.

He noted that working in the North of England brings incredible variety to his day-to-day life, because there is capital in the market that is being invested (albeit cautiously) across the region. Looking to Scotland, he highlighted how he gets to work with some amazing family businesses which are undergoing exponential growth journeys without losing their entrepreneurial spirits.  

“People in the North and Scotland tend to be quite resilient,” he said. “They’ve been through industrialisation, through the lack of investment in infrastructure projects and they just crack on and get on with what they’re doing. It’s great to see that resilience within some great businesses, who maybe haven’t yet had the external investment that they need but are still providing amazing growth stories.

“And when you get to know these businesses and you become trusted by them, it’s fantastic. No two days are ever the same, no two clients are ever the same and everybody’s risk profile is completely different. So, I get to work with some super interesting businesses and support them getting to the next stage in their growth.”

It’s a particularly interesting and rewarding time to be doing his role, Milnes said, as businesses are crying out for the right advice. The current risk environment is incredibly complex with inflation, the cost-of-living crisis, geopolitical instability and talent pipeline concerns all impinging on clients at the same time. So, clients’ recognition of the power of ‘value’ above price when it comes to insurance is coming up against the brick wall that is their financial constraints.

“For quite some time now, it has felt like one crisis after another,” he said, “Whether it’s political instability within our country, or war elsewhere, or supply chain concerns, people are more aware of just how risky the world is today. But I think sometimes, as humans, we can be a bit myopic and just focus on the thing that’s right in front of us and forget about everything else.

“For us [at WTW], it’s about supporting our clients through that immediate challenge while also helping them map out the broader risk environment. And we recognise that everybody’s a little bit more price conscious because of what’s going on in the world in terms of inflation, the energy crisis. Cost is on our customers’ minds.”

Insurance is a significant outlay for businesses, Milnes said, and with cost proving such a critical consideration at this time, clients have heightened expectations of value from their insurance programmes. Clients are more aware than ever of how accurately their insurance programme reflects their risk profile and they’re more willing to ask questions from their insurance partners about whether these programmes are fit for purpose.

“We’re actually seeing a lot of our clients ask for analytics as well,” he said. “They’re actively using the data we can supply them to give them real meaningful insights into what they look like as a risk, how they compare with their peers, the total profile of their risks and how they can restructure those risks to make sure they’re deploying their capital effectively.

“Clients want more of a partnership with [their brokers and risk managers] which is where we’ve really been able to step in. We’re holding a 99.2% retention rate with our clients in the North which is absolutely amazing but where we’ve picked up new clients is through that ‘Insights’ piece, by spending time with them and going through their risk profiles with them.”

Where WTW stands out is that it isn’t looking to be all things to everybody, he said. Milnes and his team are not interested in building short-term or transactional relationships with their clients but rather to evolve genuine partnerships with them as a trusted broker and risk advisor that is looking to add value to these businesses through insight and analytics, as well as the right insurance coverage.

There’s a great team within WTW who have been nurturing these client relationships for many years now, he said, but there has been a tendency in the past to “hide our light under a bushel”. For Milnes, who stepped into his role at the beginning of the year, a key area of focus now is on communicating WTW’s client-centric proposition better across the wider market, and on capitalising on the group’s reputation while leveraging it for further growth.

“I think we’ve got a great brand, but I just don’t know whether enough people know about us,” he said. “So, we’re just looking to have more conversations with more people about what we can do. Because we’ve got so many things within our armoury that we probably don’t talk about enough as it stands. And I’m looking to change that record.”

What are your thoughts on this story? Feel free to share them in the comment box below.

Kingfisher Insurance (Kingfisher) has today announced its acquisition of the specialist motorsport insurance broker REIS Motorsport Insurance (REIS).

In a Press release, the insurance group noted that the deal underscores its strategy of growing both organically and through the acquisition of high-quality businesses delivering specialist products to niche markets. The addition of REIS complements Kingfisher’s established motorsport offering which supports motorsport teams, competitors, event organisers and enthusiasts at all levels.

Having operated in the motorsport market for over 15 years, REIS brings substantial knowledge to Kingfisher, as well as a highly experienced team which is well-regarded in the motorsports market.

 Commenting on the deal, Jacquie Boast, chief executive officer, at Kingfisher Insurance said the group is delighted to welcome the clients and employees of REIS. She added that the deal will enable Kingfisher to offer a wider variety of motorsport insurance products to the market.

“The REIS name is well-known for its expertise in the industry but also for its genuine passion for the sport and makes it an important addition to our group,” she said.”The acquisition aligns with our strategy to become the leading specialist insurance provider in the UK and the REIS staff add further depth and experience to our existing expert teams in other niche sectors.”

 Mary Singleton, senior operations manager at REIS said the team is excited to be joining Kingfisher and looking forward to continuing to deliver excellent products and service to its clients.

“Motorsport insurance can be complex with many variables to consider so it’s fantastic to be part of an organisation that is dedicated to, and truly understand, specialist insurance,” she said. “With Kingfisher’s support we aim to grow our market presence, increase our client base and offer additional products to our suite of specialist market leading capabilities.”

What are your thoughts on this deal? Feel free to share them in the comment box below.

The unravelling of the world’s biggest climate alliance of insurance companies is regrettable, but it doesn’t mean the industry’s environmental, social and governance (ESG) goals have been curbed, one ESG risk expert told Insurance Business.

Growing anti-ESG sentiment has led to a slew of exits from the Net Zero Insurance Alliance (NZIA), a United Nations-backed initiative aiming to help the insurance industry transition to a low-carbon economy.

But Lisanne Sison, managing director of Gallagher’s ESG and ERM (enterprise risk management) practice, is optimistic that the industry can stay on track with its targets regardless.

“It’s unfortunate that it’s coming apart, but the thing I would emphasize is that none of those organizations have changed their individual commitment to their ESG aspirations,” said Sison.

What does the NZIA turmoil mean for insurance ESG goals?

Several leading members of the NZIA, pressured by US Republican politicians, have fled the alliance, which has shrunk from around 30 members to 17. 

Speaking to Insurance Business, Sison said the NZIA exodus signals that insurers must take a more considered approach to their ESG goals.

“The collective is being impacted; that part is not ideal. But I don’t think that means ESG is dead,” she continued. “I think the way we need to approach ESG needs to be more thoughtful in terms of how we would tackle it as an entire ecosystem.”

The Gallagher MD, who has worked in enterprise risk management for over 10 years, acknowledged that organizations face mounting regulatory and social pressures to adhere to their ESG commitments.

She advocates a multilayered, “ecosystem” approach that accounts for multiple driving factors in ESG risks and takes a broader view of an organization’s stakeholder groups.

What role does the NZIA still have in the industry?

With only about half of its remaining members left, is there still a role the NZIA can play in the insurance industry?

“I think there’s still a place for it from a thought leadership perspective, for setting advice and guidelines,” said Sison. “But in terms of setting policy, I don’t necessarily think that they are the right body for that.”

The Gallagher MD believes the industry will still need to collaborate on climate issues, but the shape and form of that collaboration remains to be seen.

“I don’t have an answer to that question, but I do think that it’s still a need,” she told Insurance Business. “I’m confident that there will be a solution, it’s just going to be in a different form.”

Does Sison see another grouping replacing the NZIA?

“It’s hard to say,” she answered. “I think another group at this moment is unlikely because of the different political pressures, the different regulatory landscapes, and the different cultures worldwide.”

While there are very different appetites for ESG, and a lot of uncertainty about how to move forward, Sison said that shared objectives will help the industry find its next steps.

“It’s a matter of being able to collaborate with common goals and objectives, and figuring out the best way to move the insurance industry forward in a way that supports our clients’ transitions and helps them work through their ESG risks and challenges,” she said.

Do you agree with Sison’s perspective on the Net Zero Alliance? Share your comments below.

Like any journey worth undertaking, RSA’s route to becoming an accredited menopause-friendly employer was grounded by a defined ambition – to support its people at work in any and every phase of their lives.

Speaking with Insurance Business following her attendance at the first anniversary of the Menopause Mandate in Parliament, Helen Simpson (pictured), HR advice leader at RSA and a key driver of its menopause support drive, highlighted how the accreditation process lent structure and a framework to its efforts. To achieve accreditation, employers are required to put in place policies in addition to training and awareness protocols for all colleagues, she said, and to establish practical changes to the workplace environment.

Menopause champions

Among the key actions undertaken by RSA, she said, the insurer created open forum menopause cafes, as well as lunch and learn sessions to open up conversations around the issue and hear from employees first-hand on what support they need most. From leader training to the introduction of menopause champions, Simpson and her fellow advocates have monitored the success of the programme, and been amazed by the support they have received at an executive level and the buy-in across the wider organisation.

“I think that’s because it’s a subject that resonates with everybody,” she said. “This is something that will affect virtually half of our working population but really one way or another, everybody will be impacted by menopause. That’s whether you’re going through it yourself or a loved one is experiencing it and you want to be able to understand and help them.  And the more we’ve learned, the greater our drive to keep the conversation going because we can see the impact it’s having on our people.”

The work Simpson and her team are doing ties in closely with RSA’s broader DE&I strategy and its overarching ambition to support its people and their families. The core strength of this ambition is that it aligns the right thing to do with a clear business case, she said. And there is a real commercial benefit to supporting people at work, both in terms of allowing people to do their best work and in terms of employee retention.

“Menopause conversations should be highlighting the value of the experience that women have and what we [as an industry] lose if they leave our organisations,” she said. “Because people will leave if we’re not supporting them with their medical symptoms and you can’t put a value on the talent that we could lose. There are a lot of statistics about that and we don’t want to be one of them.

“The government’s talking about getting women in their 50s back to work but we need to be asking where they’ve gone and why they’ve gone in the first place. We don’t want to be that employer kicking themselves for losing talent because they didn’t put the right support in place. So, the literal cost of replacing talent is a key consideration but it really does come down to doing the right thing which is something our chief executive Ken Norgrove is passionate about.”

Menopause podcast

For something that directly impacts half the population, menopause doesn’t get the scrutiny it deserves, Simpsom said, and hearing women’s stories on RSA’s menopause podcast provides an eye-opening insight into the lack of support available to women.

“From my own personal journey, I was in a male-dominated manufacturing organisation when I went through the menopause and there was no way I would have mentioned it to anybody,” she said. “I just kept it completely to myself and it was OK, I coped with it – but looking back, the difference it would have made to me to have this kind of support and understanding would have completely changed that experience.

“I want it to be different for other women going through this… I want us to open up these conversations and get it all out into the open. So that for women, perhaps if they’re in a meeting and stumbling over a word, they can say, ‘oh, it’s brain fog’. And that’s not to make light of it or joke about it, but rather just normalise what’s happening. Because women’s confidence just goes out the window during menopause and that’s so wrong.”

Buoyed by the support received by RSA’s executive team and colleagues alike, Simpson has plans to extend the conversation further. As RSA is owned by Intact, she said, it has been great opening up discussions with colleagues in Canada and the US to share best practices and which initiatives are having the best impact. Her ambition is to spread the message about what it means to be a truly menopause-friendly employer as widely as possible, and hopefully bring other companies across the insurance industry along on that journey.

It has been a rewarding experience to be part of something making such a difference in the lives of her colleagues, Simpson said, and she gives full credit to the “amazing team” around her for their passion, drive and dedication to the cause.

“It has been such a team effort,” she said. “There’s about six of us who are really driving this forward and it couldn’t be done with less because you can’t be everywhere at once. And you need the ideas and the network and be able to draw on people across the board and count on their involvement. The wider HR business community has been so brilliant with its messaging and internal comms people have been instrumental in getting into town halls to spread the word. I might be the face of it because I’m leading the push but there’s a huge wave of people behind me and it’s brilliant to see them be so passionate.”

What are your thoughts on this story? Feel free to share them in the comment box below.