Insurance news

Keoghs is one such firm, with its head of market affairs Natalie Larnder (pictured) noting that the team was in contact with the joint committee while the scrutiny of the bill was ongoing – which led to them being invited to put forward some draft wording to be considered as the bill progressed. Keoghs has been happy to feed into the process, she said, as it’s very alive to the implications of any new measures for the wider market.

“We don’t know exactly what the amended bill will bring,” she said. “We’re still waiting for it and expect it [to be unveiled] around Easter time. The insurance industry has been calling for measures to tackle online scams via search engines, social media platforms etc, where an organisation will pretend to be a legitimate insurer.”

The way these fraudsters work, she said, is by targeting a consumer at a time of crisis – typically after a motor accident – when they are searching for their insurer or the insurer of the involved third-party online. Though the advert the consumer clicks will appear to be linked to a legitimate organisation, they will instead be directed to an alternative firm – perhaps an expensive credit hire vehicle firm or a garage with no connection to the insurer they think they’re contacting.

This can leave consumers facing an expensive bill themselves, she said, while, in other instances, consumers may never even know they were the victims of fraud.

“That’s the situation we’re hoping these amendments will cover, which would be very positive news for the insurance industry and a very welcome addition,” she said. “The next step is to see what the exact wording of the bill covers. It’s important to get this right and ensure there are proper sanctions in place to make sure companies take this new duty seriously.”

A common tactic seen from fraudsters is that the advert itself looks perfectly compliant with the branding consumers recognise while the link takes them through to an impersonation of the company they’re trying to contact. This adds another layer of complexity to the process of insurers identifying fraudulent adverts, she said, but it would be relatively simple for search engines and social media platforms to implement checks at the time the advert is created.

Therefore, the new measures being introduced must centre around preventing the publication and hosting of fraudulent adverts. It’s the hosting part that’s the critical piece right now, Larnder said, as simply checking the domain the advert links to could save consumers and the wider insurance market a lot of stress, time and expense. The time is right for more obligations to be put on larger organisations to ease the burden on individuals, particularly those who are dealing with a crisis.

Fraudulent and misleading advertisements are largely targeted at people in a vulnerable position at the point of a claim, she said, and whether or not the individual is ever aware that they were misled, fraud places a significant financial burden on all insureds. There’s also a strong reputational harm aspect to this as well, as insurers rely on insurers having confidence they can contact their insurance company and receive good and reliable service in the event of a claim.

“How can you ensure that confidence, if you can’t control who [your clients] are even in contact with? Insurers are battling this every day,” she said. “And insurers are not waiting around saying, ‘oh we don’t have what we need in legislation so we’re stuck’. They’re reporting all these [incidents] when they happen, but they take a long time to sort out. That’s something I’d like to see change with the new duty in place

“Firstly, we don’t want to see this activity at all. But secondly, we want to see anything that does end up online like this is removed immediately. At the moment, it’s so easy for these fraudsters to put these adverts up that in the time it takes an insurer to get one taken down, you could have five or 10 up in their place. It’s a constant battle.”

Read more: The area of insurance fraud that companies ignore at their own risk

Insurers spend a lot of money on advertising, Larnder noted, in a bid to ensure their brand comes up first when a consumer is looking for them. But it’s easy for fraudsters to outbid that process and have their misdirected website appear before the legitimate site in an online search. The process to get these adverts removed is ongoing for insurers, she said, but it does take time.

In addition, she said, insurers are investing in advertising campaigns to familiarise consumers with the best ways to get in touch. Unfortunately, these efforts resonate best with current clients than with those insured by another insurer. In the event of an accident, third-party customers will likely research the contact details of the insurer they’re looking to reach online – and it is during that search that they are vulnerable to fraudulent activity.

“Constant work is being done by the insurance industry to try to tackle this,” Larnder said, “but at the moment it is a really long, drawn-out process. And online search engines and social media sites do have a certain level of processes there to try and tackle, this but I think the incentive just really isn’t there for them right now.

“What we’d really like to see is more being done on the front end, so that when these adverts are being placed, [these sites] are taking those additional steps before they come online – and that by being more proactive, there’s less need for that reactive work to take them down.”

That’s what the team at Keoghs and across the wider industry are hoping will be the result of the upcoming bill amendment – that it will move the dial on the ongoing fight against insurance fraud. “We want to see the amendments go far enough to cover all these types of situations,” she said, “and cover financial harm as well as the psychological harm that can result from online fraud.”

With these particular situations when the individual may not know they’ve been a victim of fraud, the impact can be initially entirely financial which, in turn, can lead to a lot of stress and psychological harm, she said. So Keoghs is pushing to see the amendments recognise this financial harm element and put sufficient sanctions in place to ensure companies take their duties in this area seriously.

“Now Ofcom is going to be taking this forward, in terms of setting out more of what they expect search engines and social media platforms to do to comply with their new duty,” she said. “So that’s another step that we’re keen to keep an eye on to see what Ofcom will set out and how they will regulate this.”

Source

Insurance Business UK has started the search for up-and-coming stars in the insurance profession to be featured in its Rising Stars 2022 list, a showcase of young insurance professionals making waves in the early stages of their careers, proudly supported by the Insurance Cultural Awareness Network (iCAN), the African-Caribbean Insurance Network (ACIN), the Managing General Agents’ Association (MGAA), the Chartered Insurance Institute (CII) and the British Insurance Brokers’ Association (BIBA).

To be eligible, candidates must be aged 35 or under, and currently working in a role that relates to the general insurance industry. Both self-nominations and entries on behalf of colleagues and direct reports are accepted.

Source

“So, our mission is to really transform the sector and make sure everyone in the sector is qualified – not just on the theory and the technical aspects of insurance, but also on the right set of behaviours and skills necessary to perform as a good insurance professional.”

Read more: Wiser Academy relaunches insurance graduate programme

This has been the driving force of Wiser Academy since it started trading independently about eight years ago. It recently welcomed a landmark milestone, being graded ‘Outstanding’ by Ofsted following a full inspection in February. The team is absolutely delighted, George said, particularly given that the academy is the only insurance-focused provider that he knows of which has received an ‘Outstanding’ designation.

Regarding the Ofsted report, he noted that he was particularly pleased that the inspectors identified that Wiser Academy’s approach to training and development is much more than a tick-box exercise. The report highlighted the value-add its programme brings for employers, he said, and its focus on making apprenticeships relevant and tailored to each employer.

“I was pleased the inspectors were able to pick that up just from conversations they had with employers and the apprentices,” he said. “We at Wiser Academy have always said we are from the insurance sector for the insurance sector and so, we’re really proud that we created this business, almost out of nothing, to really support the sector.”

The sector has always had skill shortages, he said, particularly because when young people leave school, college or university, they’re not typically thinking about insurance.

When attending career events at schools and colleges, he said, you can see young people flocking to the stands of British Airways, or IT companies, or other elements of financial services. Insurance has a long way to go to showcase the opportunities an insurance career can offer. The reason for this struggle is twofold. Firstly, there is a lack of awareness about what insurance covers. It is only when you get into the detail of how insurance keeps planes in the air and vaccines in production that people start to understand the breadth of its impact.

Secondly, most people nowadays, from children to grown-ups, don’t face insurance on the same daily basis that they do other sectors. They tend to have an interaction once or twice a year and that’s it. However, he said, with gadget insurance and embedded insurance solutions becoming more widely publicised, that is changing, and the insurance sector should capitalise on this market shift.

The time is right for insurance businesses to further invest in training and development opportunities – not least because the value of professional advice has become clearer than ever during COVID.

“Consumers are now doing more research with the help of the internet, they can come more prepared than the person sitting opposite them,” he said. “They understand that there was a certain instance in another company that was dealt with in a certain way, and they question why their circumstances – which are very similar to that – can’t be dealt with in the same way. That’s what we saw with the [FCA BI] test case and it really challenged the status quo of everything.”

Read more: Insurance apprenticeships – what to look for

In addition, George said, companies should take advantage of the new reputation apprenticeships, in general, have managed to obtain over the last six to seven years. Apprenticeships have moved a long way from being seen as restricted solely to electricians, plumbers and bricklayers. The stereotyping has changed, and young people are increasingly aware of the benefits these opportunities can bring.

“However, we need to package whatever schemes are created… very well and they have to be very comprehensive,” he said. “We must show people the meaning and the benefits that they get out of it. If you approach a really aspiring, ambitious young person with a standard apprenticeship, he or she may not be as engaged with it. You need to show how this is going to transform their lives and how it’s going to add value to their career and future life. As long as we can do that, we can get more engagement.”

For George, taking advantage of such schemes from the government is a real example of a “no brainer”. Everyone should tap into it, he said, and use it as an opportunity to transform the status quo. The shift towards remote working during the COVID-19 lockdowns revealed the speed of decision-making businesses and individuals can be capable of. Now everybody needs to harness that agility of thought and use it to help create solutions to increase the number of insurance professionals.

“As a sector, we shouldn’t wait for the regulator or anyone else to come in and say it’s mandatory,” he said. “We should take our own initiative and transform the sector.”

That’s what Wiser Academy is here to do, and the business has strong growth goals set for itself – with an eye fixed on doubling its size within the next two years. The firm has a solid basis on which to grow as much as it wants, George said, and with the Ofsted inspection under its belt, the foundations it has been preparing over the last 12-13 months have been firmly endorsed by its regulator.

“That gives us even more confidence, but it doesn’t mean we’re stopping there, and there are still things that we continuously improve,” he said. “But now is the time to grow. Our ethos is strong – we want to support our learners, support our employers and give more value pound for pound, because this is public funding and we understand the seriousness of that and we respect it. So, keeping that ethos combined with the good processes and foundations we have, and we are really ready to grow.”

Source

Towergate Insurance Brokers (Towergate), part of Ardonagh Advisory Holdings Ltd (Ardonagh), has appointed Richard Tuplin (pictured) as its new chief executive officer (CEO).

Tuplin joins Towergate from Ethos Broking, part of the Ardonagh Advisory platform, where he spent over three years in leadership positions, such as chief development officer and managing director, until becoming the CEO. He also worked in independent broking for 18 years, including as managing director of Jelf Insurance Partnership and regional director of Jelf Insurance Brokers.

Source

Read more: Minster Law reports financial performance

That transformation programme is still ongoing and is comprised of three distinct threads – culture, process and new ways of working.

“We’ve been on those three tracks for a while,” she said, “and I think anybody that suggests that transformation is easy and done very quickly is deluded. In many ways, when you start a digital transformation journey it’s like painting the Forth Road Bridge. It’s constantly investing to make sure you learn, understand, adapt, pivot and respond to [allow] customers to interact with technology in a way that makes you want to interact with it.”

Having the right team and organisational structure in place is critical to pursuing those three transformational pathways, and Woolham highlighted that, from her perspective, Minster has two sources of competitive advantage which make that possible. The first of these, she said, is its shareholder structure as the firm has a long-standing shareholder focused on long-term investment. That promotes a healthy environment for long-term orientated growth, negating the need for short-term decision-making.

“Our other [differentiator] is the diversity of our executive team,” she said. “We come from a wide range of backgrounds, including legal, but not exclusively legal. We have insurance people, we have financial services people, we have people from legal services – but what binds us all is an absolute passion to do things the right way, and accepting the fact that the right way will generally have to be a different way.

“As the CEO of a business, you work really hard to foster that sense of collaboration with the team, around a common set of values, a common strategy, and a common way of working. A lot of my time is spent making sure that culture really is our source of competitive advantage. And I believe it is. We’re just good people who work hard to get the job done and know it’s our responsibility to make things better.”

After two years of living and working through a pandemic, against a backdrop of changing consumer expectations and a rapidly evolving regulatory environment, Minster is excited about what the future holds. Given all the changes sweeping the claims industry, Woolham believes this is one of the most exciting times to be part of the industry in decades. There’s so much change happening, she said, and the firm is already considering how it can continue to support its strategic partners and clients alike.

Read more: Minster Law on putting the customer at the heart of digital transformation

As is always the case with the regulatory sphere, when one thing is out of the way, another comes along, she said, and the expanded fixed cost regime is now due to go live in October.

“[Similarly] to when the small claims portal was announced, many law firms ran for the hills whereas Minster squarely saw it as an opportunity – we see this as the same thing,” she said. “It’s a change in the billing structure, a change in how we manage the cases. And our track record has been that when we say we’re going to do something, we do it. That might sound boring or repetitive, but I think there’s a predictability about it, which gives our shareholders confidence and our business partners confidence. It’s through that lens that I’m optimistic about the future.”

There are several core areas of focus for Minster over the course of the next year and the theme underpinning them all is that of diversification. Given the investments the firm has made in improving the motor claims experience, it is now looking to take that into other product verticals. In addition to its diversification beyond motor PI, the business is continuing its growth in the bike market – where it has long since proven its expertise.

The third area is at more of a group level, Woolham said, and will see Minster take the collaboration mindset that has been behind its success to date and evaluate how to deploy that across the wider motor claims market. This will see it pull together a motor claims solution that knits together companies like itself – whether that’s through strategic partnerships or investments Minster makes – to bring together experts in the field to collaborate and deliver a better claims experience for MGA business partners and customers.

“We will also continue to drive organic growth,” she said. “Many insurers have been watching the market to see what the post-reforms landscape looks like and we’re looking forward to engaging with them and showing them what the world looks like and what a great motor claims service can look like.

“We’re also going to look out for growth through acquisition. But because culture is really important to us, we are very circumspect in the acquisitions that we do… We’re looking for scale, we’re looking for where they tick one of our strategic boxes. We’re interested in introducing new skills, new capabilities and new business partnerships. So, it’s already proving to be a really exciting year.”

Source

Specialist insurance and reinsurance broker BMS has appointed Chris Harding and James Ferris as new directors of its capital and risk advisory to widen its capital solutions, effective April 2022.

Both hires will be based in London and Bermuda, respectively, and will report to Hannah Watkins, managing director of BMS Re in the UK. 

Source

Oman Insurance Company (OIC) and Lloyd’s third-party managing agent Asta have announced that OIC’s syndicate 2880 has received Lloyd’s approval to commence underwriting.

The syndicate, which was launched under the syndicate-in-a-box (SIAB) initiative, will operate on the Lloyd’s platform under the Dubai International Financial Centre (DIFC).

Source

In its announcement, Allianz said its partnership with Solar Energy UK will enable it to support solar power insurance customers better and help the association and its members understand the key risks facing the industry.

Steve Kelly, head of insurance for Allianz engineering, construction, and power, said Solar Energy UK was a perfect fit for Allianz because the insurance giant has diverse engineering and insurance expertise within the renewable energy sector, but it still wants to build on that expertise to become a leading force in the insurance industry.

Cherry Parker, director of business development at Solar Energy UK, commented: “We’re delighted to welcome Allianz onboard as our first associate member. It’s impressive to see Allianz reinforcing its credentials for decarbonisation and seeking to grow its services portfolio in the fast-growth solar energy and storage industry.”

Commenting on being Solar Energy UK’s first insurance member, Kelly said: “We are happy to be the first insurer member of Solar Energy UK, and we hope we are not the last.

“No doubt other insurers and brokers will follow suit, not necessarily with Solar Energy UK, but with other trade associations or groups that promote and support the path to a more sustainable way of doing business.”

The move is the latest step in Allianz’s commitment to a more sustainable future. In 2021, it joined Aviva, AXA, Generali, Munich Re, SCOR, Swiss Re, and Zurich Insurance Group in establishing the Net-Zero Insurance Allianz (NZIA), convened by the United Nations Environment Programme’s Principles for Sustainable Insurance Initiative.

As part of their commitment, the founding members will transition their insurance and reinsurance underwriting portfolios to net-zero greenhouse gas emissions by 2050, as well as individually set science-based intermediate targets every five years and independently report on their progress annually.

Source

Reflecting on the move, Lloyd’s CEO John Neal said: “We are deeply disappointed by the behaviour highlighted by this case, and I want to be clear that discrimination, harassment and bullying have no place at Lloyd’s. The robust action we have taken today, including the largest fine ever imposed by the Lloyd’s Enforcement Board, shows that we will not tolerate poor conduct in our market. Lloyd’s expects all participants in the market to meet the highest standards of professionalism, and we are continuing to use our powers to intervene when needed.”

Everyone in the Lloyd’s market and corporation should expect to work in a culture where they feel safe, valued, and respected, he said, and should feel empowered to speak up when they see unacceptable behaviours, with full confidence that action will be taken.

Christopher Stooke, independent non-executive chairman at Atrium, also commented on the rulings and said they are fully accepted by the MGA. It is with deep regret that Atrium failed to live up to its values, he said, and serious errors were made in the handling of the charges. He added that the firm apologises for the hurt this caused and the difficulties it placed on those affected.

“The behaviour outlined in the Notice of Censure has no place in our business or our industry, and we recognise that we must go further to ensure that this situation is never allowed to happen again,” he said. “We have moved quickly to address and learn from these past failings and update our policies and procedures to ensure the highest standards. Furthermore, we have also been working for a number of years with colleagues from right across our business to strengthen our culture.”

He noted that Atrium has made significant progress in many areas and worked closely with Lloyd’s throughout this process. Atrium has also appointed an independent third-party to review the allegations and make recommendations on actions to the Atrium Board, which are now being implemented. Stooke said Atrium will continue to engage with Lloyd’s and other stakeholders to ensure its workplace is somewhere colleagues feel supported.

Meanwhile, the Lloyd’s Market Association (LMA) announced its support for the decision reached by the Lloyd’s Enforcement Board in response to the three charges of detrimental conduct.

Commenting on the news, chairman of the LMA, Andrew Brooks said the judgement by the board and the penalties levied against Atrium send “an unequivocal message” that bullying, harassment and inappropriate behaviour have no place in the Lloyd’s market. He added that the association supports Lloyd’s for its decisiveness and the “unprecedented” level of the fine which demonstrates the market’s commitment to fostering a better culture.

“Any individual or organisation which threatens this or condones those who do, must now recognise that there will be severe consequences,” Brooks said. “We applaud those individuals who had the courage to speak up. To stamp out this behaviour, we need people like them who come forward and we need to ensure that we cultivate a supportive environment across the market which encourages anyone who experiences or witnesses bullying, harassment or similar inappropriate conduct to speak up.” 

CEO of the LMA Sheila Cameron also commented on the decision and said that, while there is clearly still a lot of work to be done, the market has made strong strides in improving its culture and now has structures in place that allow individuals to speak out on inappropriate behaviour, safe in the knowledge they will be taken seriously.

She noted that the LMA encourages anyone who has experienced or witnessed inappropriate behaviour to report it either via their own internal procedures or to the Lloyd’s confidential Care First Bullying & Harassment line.

“Further,” she said, “the LMA will support any individual in the market to report unacceptable behaviour through to the delivery of appropriate consequences. We are committed to working with Lloyd’s to improve the culture in the market and welcome the strong stance taken today.”

Source

He noted it’s a good albeit leading question as it calls to mind the intricacies and idiosyncrasies that come with a career in financial services. It’s a huge market in terms of the GDP of the country but really a very niche market in terms of the people who make it up and, during a career, you often come across the same people, systems and distributors time and time again. And while trying to explain that to an 11-year old is not straightforward, he said, it’s interesting to reflect on your journey and what brought you to where you are today.

Oakes started his career as a field sales agent with Pearl Assurance in the mid-90s and the last 25-odd years have seen him advance through the ranks of businesses including Cardif Pinnacle, Legal & General and Gallagher.  

“[My latter roles] really consolidated my experience, and were when I started to get more into the leadership and strategy side of things,” he said. “That’s in part why I am where I am today, because I’ve had the opportunity to do so many things – to run a very important part of a business and to bring all the skills I’ve built up over the years to lead a business, and to help them with their strategy and [to pursue] the direction they want to go in.”

Source has been supporting brokers with their general insurance businesses for some 25 years, Oakes said, and it’s a business he has known for a long time. When he had the opportunity to meet with them, it was a simple decision for him as it represented a chance to work with a business he had admired for many years and to bring his skills and experience to bear in a market he enjoys working in alongside a team that is highly respected.

After a quarter of a century serving the market, Source’s primary focus remains on providing an insurance proposition facing into the mortgage intermediary market with a brand that’s trusted. Throughout the different iterations of technology and broking propositions the last two decades have seen, at its heart Source is still a fintech, he said, which has provided it with the adaptability and forward-focus required to become a challenger in the space.

“One of the challenges of the market today is that you have to have a bit of cash to play in it,” he said. “There are demands from certain elements of distribution that are almost ‘pay and play’. So, it’s hard for new entrants to come to it. But Source has always been very honest about what it does, and what its proposition is about. It’s always been very customer-led, customer-driven and very clear, and offered a fair and straightforward proposition that hasn’t changed in 25 years.”

Read more: Establishing a professional map for insurance careers

Source’s offering is quite unique in that it strives to always offer choice to the mortgage broker that they can then in turn offer to their customers. Some of its competitors offer more of an “illusion of choice”, he said, while Source’s offering focuses on separate insurance policies from separate insurers. From its outset, its proposition has been marketed as a ‘whole of market’ insurance solution for mortgage brokers – which has held fast even as the business has grown and evolved.

Over the course of this year and beyond, Oakes’ role as sales and marketing director for the business is to help the business achieve its strategic ambition of going firmly back to its roots as a fintech business that happens to sell insurance products. He is looking to support the wider team as it seeks to redefine its future growth strategy and to execute that strategy.  

“[That’s] making sure we continue to maintain really good and strong insurer relationships, that we continue to maintain good strong distribution relationships and partnerships,” he said. “And that we execute that through a good-quality, high-performing sales team, backed up by good-quality marketing support.

“We have a real stated ambition of growth, that’s what’s interesting me. And [I’m looking] to deploy my skills and my experience into a market that I like, with a company that I respect, at a time when it wants to grow – and I can help take it on that journey, that growth strategy that is underpinned by that technology and people service.”

Source