Insurance news

Emma Clegg (pictured) has joined Markel Corporation subsidiary Markel International as media and entertainment underwriting assistant.

“I’m pleased to be joining Markel, which has a strong foothold and presence within the media and entertainment sector,” said Clegg, whose credentials include time spent as a broker for film, media, and television at Tysers Insurance Brokers.

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Marsh has announced three senior appointments to its affinity business, international division. Rebecca Bleek has been appointed as affinity leader for the Middle East and North Africa (MENA); Leo Gibbons has been named placement leader for international affinity; and Sam Suen has been appointed business digital strategy leader for international affinity.

Marsh’s affinity business provides insurance products and services that are aligned to clients’ brands, cultures and values and are tailored to customers’, members’, or franchisees’ interests. Marsh’s international division includes Africa, Asia, continental Europe, Latin America and the Caribbean, MENA, the Pacific, and the UK and Ireland.

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Dan Maloney (pictured above) MD of Champion Insurance Group and John Jones (pictured below) MD of its specialist division Champion Professional Risks have seen a resulting shift in market conversations which have evolved to increasingly take up an ‘advice over price’ slant. It’s difficult to be all things to all people, Maloney said, but embracing that brings opportunities for brokers to form strong inter-industry partnerships – and to utilise all the expertise available to supply services they might previously have felt uncomfortable offering.

When it launched in April 2020, Champion Professional Risks was founded on that proposition, offering both a retail and wholesale solution to the financial lines and PI market. Jones noted that being a specialist means being driven by the ambition to provide the best solution possible rather than the cheapest, a particularly critical consideration when dealing with such specialist risks.

Since its inception, the brokerage has developed a strong network of quality brokers as part of the Willis Towers Watson Networks, he said, and currently partners with some 30 brokers who regularly refer business to the firm. Jones and his team look to support brokers struggling to place professional indemnity insurance in the market in making those placements but also in guiding them through the presentation process to ensure they approach the market in the right way.

“That means making sure the presentations are correct before they go to market because a lot of insurers have been swamped by inquiries that they can’t read or work out,” he said. “What we’re doing is effectively just helping them along that process… We arrange a Teams call or online call with the client and broker and then go about understanding the risks and getting a better feel for what they do. Then we look through the proposal form and drill down into the question sets to get the right information that we need to get it out to market.”

Essentially, Maloney said, Champion Professional Risks acts as a broker’s in-house PI team to establish tripartite communication channels that make the process easier for brokers and their clients alike.

“What we’ve found traditionally is the Lloyd’s brokers aren’t really interested unless its big-ticket business,” Jones said. “But we’re here at the coalface because of our retail background. From that retail broking point of view, I generally understand what clients are looking for and I can relay that on from that particular point of view to the broker, who can then [utilise my experience] to get the right information from their clients.”

Read more: Pandemic drives personal liability worries among senior management

Maloney highlighted that an integral part of the business’s offering is that the team offer support not just before a broker goes out to market but also afterwards. Its approach to supporting brokers is to empower them to have every kind of conversation with a client, including the sharing of bad news when that’s applicable.

The ethos of Champion Insurance Group as a whole is to move away from the idea of a “postbox” approach to wholesale broking, he said.

“Off the back of that success, we recognised the real demand for specialist service services for insurance brokers, in areas where they might not traditionally be particularly comfortable,” he said. “So, on December 21, we launched another specialist insurance business called Champion Health & Benefits and brought in a specialist [director, Ed Barnes] who has worked in that area for the last eight or nine years.

“He’s coming in as a director to run that side of the business and his remit is to grow the book for private medical insurance, group life assurance (death in service), group income protection and other employee-related benefits… It’s back to that idea of focusing on [areas] where we have real expertise and making that offering available to direct clients but also to our sub-broker panel.”

It has been a busy start to 2022 with the rollout of this new proposition and the unveiling of a new office based in Manchester city centre. Champion Insurance Group will have been trading for 12 years come May, Maloney said, but its growth trajectory is showing no signs of slowing down, in fact, the last five years have been a time of great acceleration for the group.

Between new business divisions, great new hires, and the growth it is seeing in contacts, prospects and its new business pipeline, the future looks bright for the business. Its new office offers the right environment to continue to encourage that growth, Maloney said – and to continue to evolve Champion’s niche proposition of providing support to brokers who are looking to place risks that would once have seemed a world removed from their comfort zone.

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Discussing what ‘Break the Bias’ means to her, Carla McDonald (pictured above), director of product management, claims, at LexisNexis Risk Solutions, highlighted that the theme is a reminder that despite how far the world has come, bias still exists. As such, she said, it is the responsibility of everybody to help change that in any way they can, in order to ensure people are treated fairly, without discrimination and given opportunities to succeed.

For BT’s director of insurance, wealth management and financial services, Alexandra Foster (pictured immediately below), IWD’s 2022 theme means having the confidence and courage to challenge bias and truly support women on their journey.

“Remote working has provided the opportunity for greater female participation within the insurance industry and the industry has excelled at the entry level,” she said, “with equal numbers of men and women coming into the organisation from education, with both formal and informal mentorships playing an important role helping to level the playing field.”

However, Foster said, despite these recent gains, gender parity remains a major issue and organisations must also be confident, courageous and bold themselves to support women coming through the talent pipeline.

Adding to this, Louise Isaacs (pictured below) chief marketing officer at Cigna Europe, said: “[‘Break the Bias’] means consciously being aware of gender inequality, calling it out when you notice it, and making sure action happens to address it. I think too often we settle into the status quo, and make it difficult for women to move ahead.”

Isaacs will be celebrating IWD with an off-site all-day sales leadership conference. It is great to see equal representation for women across the sales leadership team at Cigna, she said, and she plans to open the day by calling out International Women’s Day and asking each member of the sales leadership team what breaking the bias means to them. Cigna will also be doing a series of activities to celebrate the day, including sharing videos on how the leadership team are ‘breaking the bias’.

Meanwhile, at BT, the team will be able to avail of a variety of planned events, from company-wide panels to more informal gatherings, Foster said. Personally, she is looking forward to spending time participating in the smaller group sessions which provide the opportunity to really listen and understand how everybody can help women progress within the organisation.

“LexisNexis Risk Solutions Insurance will be using IWD as a great opportunity to showcase the female talent we have in our business,” McDonald said, “and to demonstrate the great career prospects that exist for women today in data, analytics and technology across the insurance sector.

“All these segments have traditionally been male-dominated, but we hope to show how rapidly gender balance is being achieved.  We’ll be profiling some of our leading women on social media and showing our support for the Break the Bias theme as well as the IWD mission to celebrate digital advancement and champion the women forging innovation through technology.”

As well as offering an opportunity to reflect on the contributions made by women across every strata of society, IWD also serves as a day of contemplation of what the future has to offer and the role everyone can play in achieving that a brighter tomorrow. Looking at what the future holds for talented women working in the insurance ecosystem, Isaacs said she was very excited about the opportunities she sees there.

Read more: Celebrating International Women’s Day with women in insurance

“I continue to hear about an increasing number of women in senior positions at competitors, at clients, and in brokers,” she said. “And, equally important is that up and coming female talent are getting good opportunities and continuing to push the boundaries. I recently joined the insurance industry from the payments industry and have been encouraged to see how both industries equally have senior females in senior positions and give high importance to gender equality.”

If you look at insurtech in particular, Foster added, the number of women playing an active role, including in leadership positions, is high when compared to the fintech industry as a whole. The growing number of women working in finance and technology is an exciting trend to watch.

Lending her thoughts on what the future holds, McDonald noted that even just by looking at the people she is lucky enough to work with – including LexisNexis’s newly appointed senior manager of claims, Kajal Vakas – and those that she has the opportunity to meet from across the industry, it’s difficult not to feel hugely positive about opportunities for women in insurance.

“We have some fantastic role models making big waves in this market and while they are still in the minority compared to their male counterparts they are showing that barriers can be broken in insurance,” she said. “I don’t think there’s ever been a better time to join the industry, with the changes to risk and consumer expectation driving new data-driven innovations. It’s a privilege to play a key part in changing what the face of the insurance market looks like.”

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In the last 20 months the insurer has moved at pace, she said, and she feels it has made “tremendous progress”. Aviva has completed eight disposals and collected £7.6 billion in proceeds, resulting in it becoming a much simpler business with market-leading positions in its core markets of the UK, Ireland and Canada. Its success with disposals has allowed Aviva to rebuild its financial strength and deliver a £4.75 billion total capital return to shareholders (subject to relevant approvals).

As to transforming its performance, Blanc highlighted that Aviva has generated excellent momentum across the board.

“Aviva is growing and growing profitably,” she said. “Savings and retirement net fund flows exceeded £10 billion in 2021 – that’s a record for Aviva. General insurance premiums are at their highest for over a decade at £8.8 billion with a combined ratio of 92.9%. Life insurance sales grew by 23%, driven in part by bulk purchase annuities with a record of £6.2 billion of volumes at robust margins.”

Looking at the success of this strategy date, she emphasised how integral the group’s people have been, and how important it is that they can share in the value they’ve helped create. Therefore, Aviva is giving each of its 22,000 employees £1,000 in Aviva shares to say ‘thank you’. That people piece is a through line connecting many of the items addressed by Aviva in its recent earnings report.

“One key area I would like to highlight is the reduction in our property footprint,” Blanc said. “We’ve already exceeded our original aim of a 30% reduction. And I’m delighted to announce that we will be moving our headquarters to 80 Fenchurch Street over the course of 2023. This will deliver a 47% reduction in our head office footprint, deliver significant cost savings and an improvement in our carbon footprint.”

Blanc strongly believes that Aviva is a better company when it combines the benefits of its people working in the office with the opportunities that come with people being able to work from home. The team has done a lot of research into the subject, she said, and spoken at length with colleagues to determine that, on average, people are coming into the office about three days a week. That’s the aspiration and the team is confident that this balance is right and sustainable.

During the media briefing, Blanc touched on several pressing topics of conversation in the marketplace right now including Ukraine, the recent Corbin & King ruling, rumours of Aviva establishing a Lloyd’s syndicate and the insurer’s plans for the general insurance market. She started the briefing with a reflection on the situation in Ukraine and the human tragedy that is unfolding there, expressing deep sympathy for everybody caught up in the turmoil and her hope for a swift end to the trouble.

Aviva has no operations in Russia or the Ukraine, she said, and has a very minimal exposure to Russia via its Aviva Investors business. That exposure is less than 0.1% of some of its Aviva Investors funds and the group will be divesting of that exposure as soon as it practically can.

On the recent ruling with regards to non-damage denial of access cover in the case of Corbin & King vs AXA, she highlighted that Aviva is not directly involved in the litigation but will be examining the judgement in detail. The expectation is that the outcome of the matter will not have any material impact on Aviva, she said, but she imagines every insurer will be undertaking similar analysis of the situation. 

Concerning the rumours of Aviva establishing a Lloyd’s syndicate, Blanc said: “We look at all of our options to see what distribution opportunities we might or might not be considering. Lloyd’s is a topic we will keep under review, but there’s no final decision that has yet been taken.”

Aviva’s acquisition of Succession Wealth for £385 million is an example of how the insurer is looking to conduct its M&A activity – by seeing where capability gaps exist and bridging those gaps with the right deal. Looking into whether Aviva is open to acquisitions across the general insurance space, she said the group has very strong market positions, particularly across its general insurance business which occupies the number one position in commercial lines and a strong, growing position in the retail market. Any M&A opportunities will therefore centre on further strengthening that offering.

“[As to investment in regional brokers], Adam [Winslow, UK & Ireland GI CEO] has got some really exciting plans to grow in the regional market,” Blanc said. “We’ve already got a really strong position and with our Fast Trade broker platform, I think we’ve seen some really great growth. So, he’s getting on with recruiting regional underwriters… We’re on track to continue to invest, we strongly believe in the importance of the regional broker market and a vast majority of Aviva’s business is intermediated. We want brokers to succeed, and we want to help them succeed.”

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Arch Insurance International (Arch), a wholly-owned subsidiary of Arch Capital Group Ltd, has promoted ceded reinsurance senior vice president Krista Bonneau to chief reinsurance and exposure officer, effective immediately.

In her new role, Bonneau will be responsible for developing and managing the ceded reinsurance and exposure management functions across Arch’s portfolio. She will be based in London and will report to Arch president and CEO Hugh Sturgess.

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As a supplier of end-to-end insurance policy management systems to insurance businesses, the team at Ignite Systems (a Verisk business) has seen first-hand how the landmark pricing overhaul has impacted brokers. Speaking with Insurance Business MD Toby MacLachlan (pictured), highlighted that while there are some brokers on the Ignite system who are struggling with the change, the majority of them are doing remarkably well.

“We’ve got two different brokers who’ve seen over a 400% increase in new business this January compared to last January, with February looking fairly similar,” he said. “Those two are price comparison website based brokers and the churn in that market has been extraordinary. This is good for them and I suppose it’s good for the public at large.

“But there are some who, if they haven’t got the pricing strategy quite right, if they’ve got larger renewal books and they’re being too protective of the renewal book, they tend to keep fees relatively high, and they really can’t win any new business at the moment. With some of them, we’ve seen new business at about 30-40% of what their budget was. So, we’ve seen really big swings in the market.”

It’s the market players with big renewal books that falling behind on the new business side of things, MacLachlan said, but what’s been interesting to see is that most businesses now have real-time pricing so that isn’t offering a particular competitive advantage anymore. Looking at the mood of brokers in the market, it’s a mixed bag as those who are doing well are making hay while the sun shines, while those who aren’t are feeling the pinch.

Among the latter, he said, there’s a certain lack of understanding about where it is they’re going wrong and what they could be doing to make it better. The fact is that the brokers who are doing the best right now are the ones who weren’t really affected by the price-walking ban as it wasn’t a practice they’d engaged in before and the insurers they work with didn’t either. Not much has changed for those businesses as they haven’t had to engage in an aggressive new pricing strategy.

Read more: MD on recent acquisition, growth plans and striking major industry partnerships

“I think the regulation from that point of view just works, in that the ones that did do price walking are now the ones casting around to try and work out that sweet spot [for] balancing their new business and renewal rates,” he said. “They’ve not really found it yet and I’m not sure if there necessarily is a sweet spot given their operational model. I think this is one of those occasions where the regulation has really hit its mark.”

For those brokers who are being challenged by the new lay of the land, MacLachlan noted that there are opportunities ahead if they’re willing to seize the impetus to embrace new opportunities for differentiation. Ignite is currently working with some of its partners on initiatives primed to go live in Q2 2022 that are aimed at switching up the traditional ways of thinking about insurance services and instilling a digital-first mentality as standard.

“In both of the cases that I’m thinking of it’s not actually completely different products but rather a newly priced and slightly refined product under a different brand, and with a completely different software system and digital-first mentality – which is geared around new business,” he said. “Something that we often see as a model for brokers taking on new software these days is to do it on a particular product or product line, rather than switch the whole business day one.”

About 40% to 50% of Ignite’s projects with existing brokers are done like that, he said, and it gives those brokers incredible freedom. The important thing to remember is that a lot of these brokers are essentially entrepreneurs. They’re people who either set up the business or have been involved for a long time and they’ve been successful because they got ideas about how to sell their services and how to serve customers well.

“They’ve often got to know systems and processes very well in that time,” he said. “And so starting with a clean slate, with a new system, a new product, and being forced to do so by regulatory change, gives them this incredible lease of life. So, we’re working with a few [brokers] that are struggling to get that price point on these new types of projects which will lift them out of the gloom and give them something exciting to stake their future on.”

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Nominations for Insurance Business’s 5-Star Diversity, Equity and Inclusion Awards close in less than two weeks.

This showcase celebrates companies in the insurance industry that demonstrate effective DE&I programmes that help foster change. Let us know how much progress your organisation has made and what challenges lie ahead by completing this short online form. 

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Given the very close and collaborative relationship between the US and UK insurance markets, APCIA’s head of international and counsel Steve Simchak said the association was “excited” and “encouraged” by the UK government’s inquiry into the market’s global competitiveness.

APCIA’s submission to the House of Lords select committee urges the UK Prudential Regulation Authority (PRA) to rely on the group risk management systems at the corporate level of US insurers and reinsurers, rather than requiring a separate risk management plan for each UK subgroup of those organisations.

“The relationship between the US and the UK insurance markets is the closest in the world,” said Simchak. “This is an issue that affects a lot of US insurers and reinsurers – how their subsidiaries in the UK are treated relative to their parent company headquartered in the US.”

Read next: PRA’s Sam Woods: “A changing world requires a tough but flexible regulatory regime”

Specifically, the APCIA has recommended that the PRA utilise the Own Risk and Solvency Assessment (ORSA) of the group at the parent level, rather than requiring additional ORSAs for each legal entity in the UK.

The association believes that would be a more effective use of regulators’ resources, and it would reduce the burden of regulation for US companies doing business in the UK, while maintaining the strong prudential outcomes that the PRA requires.

Since 2018, there has been a bilateral “covered agreement” between the US and the UK, in which both governments recognise the appropriateness of group supervision for large international insurers and reinsurers.

Global ORSAs are developed with the oversight of global supervisory colleges, and the PRA has been an active participant in those supervisory colleges for US insurers and reinsurers with operations in the UK. This means the PRA already has access to most (if not all) of the information it requires through the global supervisory colleges.

“The covered agreement represents a high level of confidence in the group supervision that’s been done in each other’s markets,” Simchak told Insurance Business. “It indicates that the UK authorities have a high level of confidence in US group supervision, and that the US authorities have a high level of confidence in the UK group supervision. So, there’s already a foundation there to build upon, and I think that [our submission] builds on the strong commitments that the US and UK have already made to each other in the ‘covered agreement’.

“The covered agreement also requires a very comprehensive level of information sharing, and also dialogue and discussion between UK authorities and US authorities, in addition to the other bilateral dialogues that occur between US and UK authorities. So, we’ve got this great foundation of cooperation and information sharing that already exists between the US and the UK. It seems to us that this is just a natural extension of that really solid foundation that already exists between the authorities.”

Read more: ABI chair on Solvency II: “Our ambition is for sensible reforms”

APCIA’s suggestion for the PRA to rely on the group risk management systems at the corporate level rather than requiring a separate risk management plan for each UK subsidiary would not require an amendment to the covered agreement.

“What we’re recommending is not inconsistent or violative of the covered agreement,” Simchak stressed. “In fact, I think that what we’re suggesting is very much in keeping with the spirit of the covered agreement, and in keeping with that strong foundation between the US and the UK.

“We haven’t suggested that there be a formal agreement between the US and the UK to implement the use of the global ORSAs. But in response to the interest from the UK government, we think this is something that the PRA can do unilaterally, consistent with the goal of the UK government to be more competitive post-Brexit.”

The US, under the leadership of the National Association of Insurance Commissioners (NAIC), recently developed a coordinate national standard for group capital and group supervision.

The NAIC Risk Management and Own Risk and Solvency Assessment Model Act, which went into effect on January 1, 2015, allows companies to meet the US ORSA requirement with their global ORSA, as long as the global ORSA represents the same information that the US regulator would require.

“This has already been done in the US,” Simchak commented. “I‘m not sure that we need a formal bilateral agreement to bring this about – though if the PRA wanted to, certainly we wouldn’t object. I think the PRA could do this on their own.

“We believe this is a straightforward, relatively easy way to improve the competitiveness of the UK market. Our impression was that was what the select committee was going for. They’re not necessarily looking for proposals to totally overhaul the regulatory system. They’re looking for concrete, straightforward ways to improve the competitiveness of the UK insurance market, and we think this fits the bill.”

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“Twenty (20) years ago we started the business in Altrincham, in quite a dingy little premises on the high street,” he said. “But it served a purpose, it was the foundation for us as we are today and it has been a really interesting journey as the principles that we had back then are still true now. That’s the way we attract clients and the way we want to do business with people. And it extends through to the insurers we’re prepared to transact with – those with a decent reputation and a good financial standing.”

PHP’s exacting standards have served the broker very well, he said, as it has not suffered from the inevitable demise of insurers that occurs over the course of decades in business. As an independent broker, the firm operates on the delineating proposition of ‘fine margins’, a terminology often used by elite sportspeople. Fine margins are about identifying how the attention to detail a broker pays their client can make a huge difference in whether or not a claim gets paid correctly or at all.

“I don’t think clients always appreciate that until you take the time to explain how this industry works,” he said. “[Insurance] shouldn’t be commoditised to its lowest common denominator, which is what’s happening in personal lines and is creeping into the micro-SME space.”

Being able to showcase the value proposition of having a broker on your side comes back to PHP’s focus on selecting the right kind of clients. Shawcross noted a recent example wherein he spoke with a referred prospect who realised that he was overpaying to the tune of some £27,000. It’s not often you get to say that to someone, he said, but what was interesting was that the referred contact had a good interpersonal relationship with his former broker. 

While its approach to doing business has never changed for PHP, in recent days the broker has proved that it is willing to undergo a transformation journey when it comes to its aesthetics. The time was right for the rebrand, he said, as it followed on from the firm’s acquisition of Bradshaw Bennett in November 2019 – and offered the opportunity to support all its clients under one cohesive banner.

Read more: FOCUS marks rebrand under new parent

“We might have changed it a little bit sooner but the old COVID chestnut got in the way,” he said. “So, we thought we’d put it off to the eve of being 20 years old. Now we’ve got that message that [we’re] one brand, we’ve been here 20 years, these are our values. We want to build on that to attract new targets, new acquisitions and potential prospects. Now we’re in the phase of wanting to kiss some frogs and see who turns into a princess.”

Organic growth and acquisitive growth are equally on the agenda for PHP. The broking business has a “list of suspects” that it will look to convert into a list of prospects over time. Acquisitive growth is a numbers game in that regard, Shawcross said, as it’s about measuring whether or not each of those prospective vendors represents a meeting of minds and whether it’s the right fit for both sides of the equation.

It’s a seller’s market and there’s a lot of capital flowing right now, he said, and PHP is not looking to compete simply on a top-drawer consideration but rather with those businesses who are thinking in a considerate and measured way about the next step they want to take. Of course, the financial consideration is important to sellers who want to see the fruits of their labours, but Shawcross believes the wider market needs to think more carefully about some of the multiples that are being discussed and understand how they translate into short-term value.

“It seems to me it’s just arbitrage,” he said. “You’ve got private equity companies and venture capitalists who are basically playing the arbitrage game, which is fine and we’ll leave them to that. But we’re giving broker principals, teams of people, teams of account executives, and ARs who don’t want to be ARs anymore, the opportunity to fit into a positive culture and do things the right way.

“[We’re offering them the chance] to look after their clients, to look after themselves. If they want to develop, they’re in the right place as we’ve got the [structures] in place to look after them and develop them. Certain broker principals, and account handlers, etc. will want to buy into that and not just look at those multiples.”

Offering a safe pair of hands to prospective vendors is a valuable proposition, he said, and PHP has got the infrastructure and market credence required to onboard an incoming team and its clients in a calculated and steady manner. It’s a safer bet to ensure that retained clients and staff alike are happy in their new home than trying to pass that consideration along to a consolidator who may want to close the office or get rid of the workforce, or move systems going forward.

“That may damage years of goodwill that has been generated with the client base and the internal team,” he said. “I think we give people an option that’s a little bit more considered, and less about the money and more about the value and the long term returns and what’s important to them.”

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