The incursion, which began with a sophisticated act of impersonation involving one of M&S’s external partners, was not detected until two days after the breach occurred on April 17. By then, substantial damage had been inflicted on the retailer’s IT systems, culminating in depleted store shelves, crippled online functions, and an operational headache estimated to cost the business up to £300 million in profit.
The insurance broking industry showed further consolidation in 2024, with the top 15 groups controlling 48.7% of total global broking fees and commissions, up from 47.6% in 2023 and 45.8% in 2020. This trend appears likely to continue into 2025, with eight of the top 500 groups in acquisition processes during the first half of the year.
According to its annual report, the FSCS processed nearly 12,000 claims linked to investments, pensions, and mis-sold financial advice, resulting in payouts amounting to £176 million. A further £134 million was disbursed to policyholders of collapsed insurers, while £17 million was paid to members of failed credit unions, reflecting a broad spread of exposures across the financial services sector.
For insurers, the data present a mixed picture. While the broader financials category ranked second among 21 global sectors for output growth, the insurance subsector sat in the middle of the performance table, behind banks and other financials. Notably, the insurance industry experienced a slower rate of input cost inflation than most other service sectors, suggesting some relief from margin pressures.
“This is grade A mission creep,” wrote Andrew Griffith MP, former City Minister and Shadow Secretary of State for Business and Trade, in a strongly worded LinkedIn post. “It’s a perfect example of the unintended consequences of having too many well paid, deeply ‘woke’, public sector regulators making work for themselves.”
The soft, or softening, global insurance market is also helping. For brokers, finding capacity to cover renewable assets was often challenging. In recent months, this task has become easier. “We’re seeing more carriers enter the renewable energy space, which is creating additional capacity and putting downward pressure on pricing,” said Jason Kaminsky (pictured), CEO at kWh Analytics. Kaminsky’s US-based underwriting firm specialises in renewable energy.
“AI is already embedded in daily workflows, but ISACA’s poll confirms governance, policy, and risk oversight are significantly lacking,” said Jamie Norton, Board Director, ISACA, in a statement. “Leaders must act now to establish the frameworks, safeguards, and training needed to support responsible AI use.”
The workforce will also be affected by the integration. Aviva and Direct Line plan to reduce their combined headcount by 5–7% over a three-year period. This equates to between 1,600 and 2,300 jobs, although the final figure may be lower due to natural attrition and unfilled vacancies.
In November, Treasury initiated a formal consultation on the future of captive insurance regulation. The consultation focused on how a new approach could support the competitiveness of the UK’s insurance sector, and it sought responses from industry stakeholders on areas such as authorisation processes, capital adequacy, and governance requirements.
The LAA took the unprecedented step of taking its entire online platform offline to prevent further data loss, and has since relied on a patchwork of phone lines, email correspondence and temporary workarounds to process legal aid claims. Legal aid providers have, in effect, been operating without a functioning back office for nearly ten weeks.
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