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Cyber risks: the impact on the US insurance market

Businesses across every industry rely heavily on digital communication, cloud computing and the online storage of confidential data. Although this increased use of digital and remote solutions has unlocked a number of benefits, particularly around improved data accuracy and greater service innovation, it also opens businesses up to cyber risk. Statista reports that according to Chief Information Security Officers (CISO) “three in four companies in the United States were at risk of a material cyberattack [in 2023, and] the number of cyberattacks [has increased] in recent years, amounting to 480 thousand in 2022” (Statista: The impact of cybercrime on companies in the US). Furthermore, the cost to the US economy is worrying, with researchers expecting it to reach around $452 billion by the end of 2024.Consequences for businesses are severe, with attacks impacting business stock price and leading to reputational damage. Cyber incident’s also directly impact a company’s resource resulting in increased costs and revenue loss. In 2022 “the global average cost of a data breach [averaged] $9.44 million in the US” (Harvard Business Review: The devastating business impacts of a cyber breach). These consequences limit a company’s ability to maintain its market position and attract customers and investors. US businesses are significantly under-insuredResearch suggests that most businesses are under-insured and under-prepared for emerging cyber risks, putting them at a concerning high risk of attack. The frequency and magnitude of these risks and their impacts are evolving due to the tools and capabilities now accessible in the digital world. Munich Re state in their 2024 cyber risks report that “87% of global decision makers say their company is currently not adequately protected against cyber-attacks” (Munich Re: Cyber insurance, risks and trends).Last year saw a 65% increase in overall cyber claims reported in the US year on year (Aon: U.S. Cyber Insurance, market trends and opportunities). There are three common types of cyber-attack which are becoming a daily occurrence for businesses; ransomware, data breaches, and artificial intelligence and machine learning-driven cyber-attacks. RansomwareRansomware is set to become even more competitive and sophisticated across dark web markets. The U.S. deputy national security adviser for cyber has stated ransomware is “wreaking havoc around the world” (The Record: White House official says insurance companies must stop funding ransomware payments).There was a 214% increase in ransomware activity in Q4 2023 year on year, with cyber insurance reports suggesting this has increased again in 2024 (Munich Re: Cyber insurance, risks and trends). The practice will not only fuel crimes such as fraud along with propelling the cyber-crime eco-system, it will also damage reputation, financial stability, and custom for businesses. Data breaches Despite privacy regulation being set to cover three quarters of consumer data, a large 60% of all regulated entities will struggle to fulfill obligations to intensify data protection and privacy requirements, due to the high rates of data growth (Munich Re: Cyber insurance, risks and trends). This data growth is driven by an increased reliance on technology, leaving businesses in a position where a percentage of their data will be left vulnerable to breaches and other cyber-crimes.Artificial Intelligence driven cyber attacksCyber criminals use AI and machine learning to compromise digital security, these are known as AI-driven cyberattacks. In this instance cybercriminals train sophisticated robots to socially engineer targets at unprecedented speed and scale. Hackers are able to use AI to analyze and test strategies enhancing their likelihood of access. Technology specialists predict that these types of attack will only grow as AI methodology advances and use of machine learning becomes more readily available.Challenges for insurersThe global cyber insurance market has reached a size of $14 billion in 2023 and is estimated to increase to around $29 billion by 2027. Insurers face major challenges given the dynamic evolution of cyber risks and the speed at which hackers are able to operate. Statista forecasts that the annual global cost of cybercrime will reach $13.8 trillion by 2028, a significant increase from 2023 figures that neared $8.15 trillion (Munich Re: Cyber insurance, risks and trends). Though the industry has proven its resilience to economic and social advancements throughout history, the rapid rate and scope of cyber threats are significantly difficult to tackle in a still maturing market.How insurers can better manage cyber riskInsurers play a key role in strengthening cyber resilience, supporting clients to predict vulnerabilities and mitigate risks.The US national cybersecurity strategy relies heavily on private sector support by urging businesses to play their part in safeguarding the digital world. Rise in digital practices do increase cyber threats but it is important to remember that even the most advanced artificial intelligence data breaches and phishing scenarios will still involve a human element in approximately 90% of incidents (Forrester: The future is now, introducing human risk management). By understanding associated risks and staying ahead of developments, insurers are better equipped to quantify and price for better cyber protection.Aside from risk transfers and federal backstops, below are three key areas insurers should consider when dealing with building better cybersecurity eco-systems:Risk management through collaboration – Insurers should seek to understand how current and future changes alongside different insurance policies work together to create security and resilience. Be proactive and engage with experts and knowledgeable industry professionals to consistently stay ahead with new information. Stay ahead of AI driven attacks – Consider how regulations, machine-learning, and AI are being used for and against businesses by assessing the internal threat on a case-by-case basis. Interact with industry experts who understand advances in AI driven cyber-attacks, can offer solutions and find hidden risks. Communicate and educate – Engage with colleagues and customers alike with relevant information on how to avoid cyber risks. Provide actionable advice to customers on the communications and processes they should expect from you along with common fraudulent tactics. Access our Artificial Intelligence workplace trends report to understand more around AI and its associated risks and benefits for the insurance world. Looking to speak to an expert about business growth, your hiring strategy, or roles in the industry? Get in touch with one of our specialist consultants.Sources Aon: U.S. Cyber Insurance, market trends and opportunitiesForrester: The future is now, introducing human risk managementHarvard Business Review: The devastating business impacts of a cyber breachKPMG: Seizing the cyber insurance opportunityLawfare: If cyber is uninsurable the United States has a major strategy problem Marsh: Ransomware, a persistent challengeMunich Re: Cyber insurance, risks and trends)Statista: The impact of cybercrime on companies in the USThe Record: White House official says insurance companies must stop funding ransomware payments

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General Insurance newsletter Friday 1st November 2024

Insurance NewsIs gender parity a problem in the insurance profession? - Gender parity in the insurance profession is a critical issue, with women facing underrepresentation in leadership and barriers to advancement, resulting in pay gaps and limited senior roles. Addressing this requires organisations to implement proactive equity strategies and report on diversity targets as per FCA regulations. (IDEX Consulting news, 'Is gender parity a problem in the insurance profession?')Championing diverse perspectives - To foster a truly inclusive workplace, organisations must embrace diversity, equity, and inclusion (DE&I) by understanding cultural nuances and biases. Leaders should create safe spaces for open discussions, while employees are encouraged to engage in allyship and learn from diverse experiences. (IDEX Consulting news, 'Championing diverse perspectives')Insurance Broking market trends - The 2024 outlook for the insurance broking market indicates a shift towards embracing technology and innovation to enhance service delivery. Key trends include a focus on sustainability, regulatory changes, and evolving client expectations. Brokers are encouraged to leverage data analytics and digital tools to stay competitive and meet client needs effectively. (IDEX Consulting news, 'Insurance Broking market trends')Cyber risks: the impact on the US insurance market - Rising cyber risks are significantly impacting the U.S. insurance market, with many businesses under-insuredand unprepared for threats like ransomware and AI driven cyber attacks. The average global cost of a data breach now exceeds $9 million, prompting insurers to do all they can to quantify and price for better cyber protection. (IDEX Consulting news, 'Cyber risks: the impact on the US insurance market')Aon projects that hurricanes Helene and Milton, with combined insured losses of $34–$54 billion, are unlikely to harden the US commercial property re/insurance market due to robust market capitalization and prior rate adjustments. (Kenneth Araullo, 31/10/2024, Insurance Business, 'Aon forecasts stable US property re/insurance after hurricanes')Insurance Europe’s "Insurers’ Role in EU Cyber Resilience" highlights the rapid growth of the cyber insurance market, reaching $14 billion in 2023 according to Munich Re, yet stresses a significant underinsurance gap amid increasing cyber threats, with case studies illustrating resilience efforts across Europe. (Kenneth Araullo, 31/10/2024, Insurance Business, 'Insurers play key role in strengthening EU's cyber resilience')The Autumn Budget 2024 by Chancellor Rachel Reeves, titled “Fixing the Foundations to Deliver Change,” barely touches on insurance beyond a government commitment to report on contingent liabilities and support small businesses with export finance and insurance, raising limited implications for the UK insurance industry. (Terry Gangcuangco, 31/10/2024, Insurance Business, 'Insurance industry points out what's lacking in Autumn Budget 2024')AXA’s interim report for the first nine months of 2024 shows a 7% revenue growth across all segments and geographies, with CFO Alban de Mailly Nesle highlighting the strong execution of AXA’s growth agenda. (Terry Gangcuangco, 31/10/2024, Insurance Business, 'AXA interim 2024 results – all segments improve')Markel Group’s Q3 2024 results reveal a significant rise in operating income, with $109.58 million from insurance, $69.22 million from other operations, and a $33.53 million loss in reinsurance. (Terry Gangcuangco, 31/10/2024, Insurance Business, 'Markel Group takes huge leap in quarterly earnings')McLarens has formed strategic alliances with JW Loss Adjusting in Sweden and MCL Nordic in Denmark, enhancing local expertise in complex loss adjusting across Scandinavia; JW Loss Adjusting CEO Fredrik Jönsson highlighted the formalized partnership as a step forward for both regional and international growth. (Terry Gangcuangco, 31/10/2024, Insurance Business, 'McLarens expands Scandinavian footprint')Allianz Trade’s Surety Green2Green solution supports low-carbon and renewable energy projects by securing project completion with surety bonds and reinvesting premiums into certified green bonds, aligning with its sustainability goals. (Roxanne Libatique, 30/10/2024, Insurance Business, 'Allianz Trade fuels low-carbon projects with green bond support')Gallagher Re's second Cyber Loss Trend Survey reveals insights on cyber risk evolution, highlighting insurer challenges in adapting policies and underwriting as cyber threats grow; despite recent declines in cyber insurance rates, there are concerns about re/insurer performance if threats persist or escalate. (Kenneth Araullo, 30/10/2024, Insurance Business, 'Cyber claims increase as Gallagher Re warns of complex settlement challenges')IQUW has partnered with AI-driven platform mea to enhance underwriting productivity by streamlining and automating processes, aligning with efforts to improve the broker experience. (Kenneth Araullo, 30/10/2024, Insurance Business, 'IQUW partners with mea for AI-enhanced re/insurance underwriting efficiency')The Hartford has partnered with Coalition in a long-term capacity agreement to support the growing demand for Coalition's active cyber insurance in the UK, with The Hartford assuming a quota share of the UK cyber program, aligning with its strategy to expand internationally. (Kenneth Araullo, 30/10/2024, Insurance Business, 'The Hartford, Coalition form partnership to expand cyber insurance in UK')Chubb's Q3 2024 financial results show increases in net income and core operating income, with CEO Evan G. Greenberg noting a 14.3% rise in core operating income and a 15.6% increase in earnings per share, driven by strong P&C underwriting and investment income growth. (Terry Gangcuangco, 30/10/2024, Insurance Business, 'How did Chubb fare in Q3?')WTW has launched ResQ Machine-led Reserving, a technology designed to enhance precision and efficiency in property and casualty reserving for insurers and reinsurers; Tina Gwilliam, WTW's Global Proposition Leader for reserving, emphasized its ability to deliver faster, more precise results, enabling teams to focus on critical insights for broader business needs. (Kenneth Araullo, 29/10/2024, Insurance Business, 'WTW launches ResQ Machine-led Reserving to boost P&C re/insurance')UK-based insurtech Broker Insights has expanded into the US market, launching its Vision platform to enhance broker connectivity and data utilisation across all 50 states, tailored to the American market after extensive research and analysis of nearly $1 billion in gross written premium; founded in 2018 by former Aviva Executives Fraser Edmond and Iain Crole, the company is backed by Mercia Ventures and Chroma Ventures. (Terry Gangcuangco, 29/10/2024, Insurance Business, 'Broker Insights expands into the US')Rokstone has doubled its directors’ and officers’ (D&O) line size from £5 million to £10 million, sourcing the increase entirely from Lloyd’s Syndicates to strengthen its presence in the competitive D&O market amid rising risk exposures and coverage imbalances. (Kenneth Araullo, 28/10/2024, Insurance Business, 'Rokstone increases D&O line to £10 million, backed by Lloyd’s Syndicates')Aon's financial results for Q3 2024 show an increase in revenue, primarily from its commercial risk solutions unit, which contributed $1.85 billion; overall revenue included $870 million from health solutions, $503 million from reinsurance solutions, and $499 million from wealth solutions, with all four segments reporting revenue growth, though net income attributable to shareholders decreased. (Terry Gangcuangco, 28/10/2024, Insurance Business, 'Aon unveils mixed bag of quarterly results')Mergers and AcquisitionsClear Group has announced its largest retail broker acquisition to date by purchasing A-One Insurance Group, integrating its seven offices and over 150 employees. A-One, a top 75 UK broker with premiums exceeding £50 million, specializes in various insurance sectors and will bolster Clear's regional presence under managing director Ian Penfold. The acquisition also includes A-One's nine appointed representatives and their teams.(Jonalyn Cueto, 1/11/2024, Insurance Business, 'Clear Group announces its largest retail broker acquisition to date')Ardonagh Advisory has agreed to acquire Rowett Insurance Broking Limited, enhancing its presence in Southwest England and expanding its agricultural insurance capabilities. The acquisition integrates Rowett’s commercial and personal insurance operations in St Austell and Plymouth, along with its specialist agricultural subsidiary, AGRi Insurance Facilities Ltd. Founder Glyn Rowett will continue to lead the business, ensuring continuity for clients and staff. (Jonalyn Cueto, 1/11/2024, Insurance Business, 'Southwest broker Rowett joins Ardonagh')Aviva Plc and Allianz SE, along with Sampo Oyj and Ageas, are reportedly considering bids for UK insurer esure Group Plc, which Bain Capital may value at around £1.5 billion ($1.9 billion), targeting firms with UK operations that could benefit from synergies with esure. (Kenneth Araullo, 31/10/2024, Insurance Business, 'Aviva, Allianz eye esure acquisition in potential £1.5 billion deal - report')Specialist Risk Group (SRG) has acquired Stonehatch, a broker specializing in bloodstock and livestock insurance, enhancing SRG’s equine division and expanding its niche offerings while retaining Stonehatch’s founder Chris Williamson and his team in leadership roles. (Kenneth Araullo, 30/10/2024, Insurance Business, 'Specialist Risk Group acquires Stonehatch to expand equine insurance')Arthur J. Gallagher & Co. has acquired Redington Ltd, an investment consulting firm in London that specialises in investment consulting, research, and technology solutions for pension funds and institutional investors; following the acquisition, Redington's team, led by CEO Sylvia Pozezanac, will continue operations under Gallagher UK’s employee benefits and HR consulting division, headed by David Piltz. (Terry Gangcuangco, 28/10/2024, Insurance Business, 'Gallagher swoops for Redington')The Clear Group has acquired Vision Insurance Services, a Surrey-based firm known for managing £10 million in gross written premium and serving a diverse clientele; founded in 2010, Vision has strengthened its market position through broker acquisitions and will see Managing Director David MacKinnon, Finance Director Claire MacKinnon, and their 17-member team integrate into Clear as part of the company’s expansion in South East England. (Terry Gangcuangco, 28/10/2024, Insurance Business, 'Clear Group expands further with Vision Insurance Services swoop')MoversRipe has appointed David Rowntree as Chief Underwriting Officer, bringing over 20 years of experience from senior roles at Zurich, RSA, Legal & General, and Swiss Re, most recently leading property and SME at Wakam in the UK and Europe. (Terry Gangcuangco, 30/10/2024, Insurance Business, 'Insurance hires: Ripe, Fenchurch Law, Optio Group')Fenchurch Law has strengthened its team with two new hires: Chris Ives as a Partner in Leeds, bringing over 20 years of experience in complex, high-value claims from roles at Eversheds Sutherland, DAC Beachcroft, and Addleshaw Goddard, and Pawinder Manak as a Trainee Solicitor in London, leveraging her background from University College London and diverse legal internships to assist clients with coverage disputes. (Terry Gangcuangco, 30/10/2024, Insurance Business, 'Insurance hires: Ripe, Fenchurch Law, Optio Group')Optio has appointed Joanna Eilts as its first Head of Legal, bringing extensive expertise in M&A transactions and corporate counsel from her previous role as a Senior Private-Equity Lawyer at Goodwin Procter. (Terry Gangcuangco, 30/10/2024, Insurance Business, 'Insurance hires: Ripe, Fenchurch Law, Optio Group')Price Forbes Bermuda has promoted Carrie Kelley to Chief Executive Officer, overseeing all operations and reporting to Chris Bonard, CEO of Ardonagh Specialty (Bermuda) Ltd. With over 20 years in insurance, Kelley has experience in broking and underwriting across Bermuda and the US, previously holding senior roles at Barbican Underwriting, Bowring Marsh, Guy Carpenter, and Marsh USA. (Kenneth Araullo, 29/10/2024, Insurance Business, 'Carrie Kelley promoted to CEO of Price Forbes Bermuda')Tysers has appointed Babita Rai as CEO of Tysers Singapore and William Furness-Smith as Head of Marine for the APAC region; Rai, who joined Tysers in 2023 as Managing Director overseeing reinsurance operations, will focus on expanding core business and client relationships in APAC, leveraging over 20 years of experience from firms including JB Boda, UIB Asia Reinsurance Brokers, and Guy Carpenter, while Furness-Smith, with over 15 years of marine broking expertise specializing in complex hull and cargo risks, previously held positions at Marsh & McLennan and Dry Cargo Shipbroker before joining Tysers in 2015. (Kenneth Araullo, 29/10/2024, Insurance Business, 'Tysers appoints Babita Rai and William Furness-Smith in APAC expansion')Nicola Stacey, Chief Underwriting Officer at Chaucer and current Deputy President of the Chartered Insurance Institute (CII), has been appointed the next CII President, effective January 1, 2025; she brings over 30 years of re/insurance experience, including senior roles at Swiss Re and GE Insurance Solutions, and is responsible for developing Chaucer’s underwriting strategy with a focus on portfolio expansion. (Kenneth Araullo, 29/10/2024, Insurance Business, 'Chaucer's Nicola Stacey tapped to lead CII')Accredited Insurance Holdings has appointed Barbara Bufkin and Patricia Roufca as Non-Executive Directors to its group board; Bufkin brings extensive experience from executive roles in reinsurance and specialty insurance at firms like Guy Carpenter, Swiss Re, Hamilton Insurance Group, and Argo Limited, while Roufca, former UK CEO of Fidelis Underwriting, held key roles in legal and strategic execution, and was group COO at Fidelis Insurance Holdings, having also served as group Head of Legal at Aspen Insurance. (Kenneth Araullo, 29/10/2024, Insurance Business, 'Accredited Insurance appoints Bufkin and Roufca to board')Aon has announced the retirement of Jeff Poliseno after a 30-year career in aerospace broking and risk management, during which he served as CEO of the global space team since 2008 and helped establish Aon’s space capabilities; Jared Ball, with over 20 years of aerospace experience and previously Chief Technical Officer of Aon’s global space team, will succeed him as the Global Practice Leader. (Kenneth Araullo, 28/10/2024, Insurance Business, 'Aon's Jeff Poliseno retires after 30 years in aerospace broking')All information provided in this market digest has been gathered from Insurance Business and IDEX Consulting.

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Financial Services newsletter Friday 1st November 2024

Financial Services NewsWill AI change the role of a Paraplanner? - AI is steadily impacting paraplanning tasks by automating repetitive activities like compliance checks, allowing paraplanners to focus on strategic client support and financial planning. This shift lets paraplanners delve into specialised areas, helping them become strategic partners rather than data processors. But how do the majority view AI and what are the risks? (IDEX Consulting news, 'Will AI change the role of a Paraplanner?')Flexible Working Bill: what you need to know - The UK's Flexible Working Bill allows employees to request flexible working from day one, with employers required to respond within two months and consult if declining. The law aims to improve work-life balance, offering employees more control over their schedules, which is expected to enhance productivity and job satisfaction across various sectors. (IDEX Consulting news, 'Flexible Working Bill: what you need to know')What to consider before accepting a counter-offer - Before accepting a counteroffer, consider the long-term implications. While it may offer higher pay or better benefits it might not solve the original reason for your dissatisfaction. Accepting could also impact your relationship with your employer, as they may question your loyalty. Compare your current position against new opportunities to ensure alignment with your career goals. (IDEX Consulting news, 'What to consider before accepting a counter-offer')Wealth Management market outlook - The 2024 Wealth Management market outlook highlights challenges and opportunities in the industry, including adapting to regulatory changes, client demand for personalisation, and the growing role of technology and sustainable investing. Firms are focusing on enhancing client experiences through digital tools and expanding ESG-focused portfolios. This environment may drive a shift towards more specialised advice and strategies tailored to individual investor goals, balancing innovation with client trust. (IDEX Consulting news, 'Wealth Management market outlook')In April, Employers' National Insurance will rise from 13.8% to 15%, while Employee contributions remain unchanged, as part of Chancellor Rachel Reeves' Budget plan to increase taxes by £40bn to address government deficits and fund compensation for Post Office and tainted blood victims. (Financial Planning Today, 30/10/2024, 'Budget: Employers' NI rises as tax take grows')Quilter reported core net inflows of £1,507m for Q3, marking a 5% increase in opening AUMA, with total client assets reaching £116.2bn; the high-net-worth segment saw a turnaround with £284m net inflows, compared to £116m in outflows in Q3 2023, and gross flows rose to £817m from previous quarters. (Financial Planning Today, 16/10/2024, 'Quilter sees 63% rise in net inflows for Q3')Evelyn Partners’ AUM/A rose 13% year-on-year to a record £62.7bn as of 30 September, despite Q3 net inflows dropping to £0.2bn due to £353m in outflows from closing its legacy execution-only service, impacting only this quarter; total gross outflows were £1.7bn. (Financial Planning Today, 23/10/2024, 'Evelyn Partners closes legacy execution-only arm')Chancellor Rachel Reeves confirmed the CPI inflation target will remain at 2% amid a £40bn tax rise Budget aimed at economic stability. She pledged not to borrow for daily spending and noted that recent lower fuel and transport costs reduced CPI inflation to 1.7% in September, down from 2.2% in August. (Financial Planning Today, 30/10/2024, 'Budget: Inflation target to remain at 2%')A survey by AJ Bell found nearly all of 131 financial advisers reported a surge in client inquiries on pensions and wealth management, driven by concerns over potential tax hikes in Chancellor Rachel Reeves' upcoming Budget on 30 October. (Financial Planning Today, 21/10/2024, 'Advisers see surge in enquiries due to Budget jitters')Schroders and Phoenix Group launched Future Growth Capital, a private markets manager led by Paul Forshaw as CEO, with James Harvey as CFO, Mike Chappell heading origination, and Ped Phrompechrut as CIO; the firm aims to support the Mansion House compact's goal of directing 5% of UK pension funds into private assets by 2030. (Selin Bucak, 2/10/2024, Citywire Wealth Manager, 'Schroders reveals leadership lineup for new private markets business')Veteran fund managers Henry Francklin and Charles Empson departed Brown Advisory and Polar Capital in August to launch Hermod Capital, a third-party distribution firm, opening their London office in September. They partnered with Circulus, a Swedish small- and micro-cap team operating under the Coeli funds umbrella. Circulus' fund managers—Christofer Halldin, Simon Park, and Joakim By—joined from Handelsbanken in 2022, bringing a robust track record, including a 113% return on the Handelsbanken US Small Cap fund over five years, outperforming the index’s 75% gain. (Dylan Lobo, 3/10/2024, Citywire Wealth Manager, 'Brown Advisory and Polar Capital sales veterans form new business')Tatton Asset Management, the UK’s largest managed portfolio service (MPS) provider, is nearing £20bn in total assets after reporting £1.8bn in net inflows for the six months ending September, significantly up from £910m in the same period last year. Total group assets surpassed £19.9bn, bolstered by over £0.5bn in market gains and £1bn from assets managed by 8AM, in which Tatton has a stake. (Jeremy Gordon, 15/10/2024, Citywire Wealth Manager, 'Tatton reports record inflows as AUM nears £20bn')A new poll reveals that 53% of IFAs doubt the Labour Government's economic competency, with only 10% believing it is better for business than the Conservatives. Almost half (47%) feel the government doesn't prioritize the nation's best interests, highlighting concerns about Labour's economic management ahead of Chancellor Rachel Reeves' Budget announcement. (Financial Planning Today, 30/10/2024, 'More than 1 in 2 IFAs question Labour competency')A majority of Hargreaves Lansdown (HL) shareholders voted in favour of the £5.4bn acquisition, clearing a key hurdle for the expected takeover by a private equity consortium, including Abu Dhabi’s sovereign wealth fund. The vote revealed significant investor dissent, with 71.3% of shareholders supporting the deal and 86.7% of shares by value in favour. (Jeremy Gordon, 15/10/2024, Citywire Wealth Manager, 'Shareholders approve Hargreaves Lansdown takeover')St James’s Place (SJP) partners have previewed a new tiered charging structure set to launch in the second half of 2025. Clients will pay a fee based on their investment size, with an initial advice charge to SJP that will allocate a portion to the partner. The changes, announced last October in response to the consumer duty, will also eliminate exit fees, reduce product charges, and unbundle fees for various services. (Jack Gilbert, 17/10/2024, Citywire Wealth Manager, 'SJP reveals first details of new advice fee model')Moneybox, backed by Fidelity fund manager Anthony Bolton, has secured £70m in new investment, marking the second-largest minority wealth tech investment in the UK for 2024. The round was led by Apis Global Growth Fund III, with support from Amundi, joining existing investors like Fidelity International Strategic Ventures and Oxford Capital to help accelerate the company’s growth. (Dylan Lobo, 23/10/2024, Citywire Wealth Manager, 'Duo pour £70m into digital wealth firm backed by Fidelity legend Bolton')Former Ruffer Business Development Director Toby Barklem has launched Minos Wealth Planning (MWP), a London-based financial planning firm incorporated on 24 July and recently approved by the FCA. MWP is an appointed representative of the New Leaf Distribution network, which comprises over 250 advisers. (Dylan Lobo, 25/10/2024, Citywire Wealth Manager, 'Ex-Ruffer business development director launches new firm')Wealth manager St James’s Place reported a record £184.4bn in assets under management as of 30 September, up from £158.6bn in Q3 2023, despite net inflows dropping to £0.89bn, a 35% decrease quarter-on-quarter and 2% year-on-year. Gross inflows rose 20% year-on-year to £4.4bn, attributed to increased client engagement ahead of the Autumn Budget, although this figure was slightly lower than £4.56bn in the previous quarter. Year-to-date client retention remained stable at 94.6%. (Financial Planning Today, 17/10/2024, 'SJP hits assets record despite drop in net flows')Mergers and AcquisitionsCBPE Capital LLP has made a strategic investment in Bristol-based wealth and pensions manager Clifton Asset Management to accelerate its acquisition program. The investment, which involves collaboration with Clifton’s management team, including CEO Neil Greenaway, will support both organic growth and strategic acquisitions. The deal is pending regulatory approval. (Financial Planning Today, 31/10/2024, 'Private equity firm invests in £1.8bn AUM Bristol Planner')Financial Planning-focused national adviser Foster Denovo has acquired East Midlands firm 80Twenty, marking its fifth acquisition in the past year and adding £500m in AUM/A, a 13th UK office, and its first base in the East Midlands. The acquisition price was not disclosed. Four advisers—Neil Welbury, Jackie Worby, David Catterall, and Stuart Annable—along with six support staff, will join Foster Denovo, which will now serve about 120 private clients, including several high-profile corporate clients. (Financial Planning Today, 29/10/2024, 'Foster Denovo acquires £500m AUM/A Midland adviser firm')WTW has acquired an undisclosed minority stake in private equity-backed Atomos, enhancing its growth strategy following a strategic alliance formed in 2022. Mark Calnan, head of Investments for Europe at WTW, noted that this investment extends their capabilities to a wider audience. With this stake, WTW aims to provide additional capital to support Atomos, which manages £7bn in assets. Atomos was previously Sanlam UK Wealth until rebranding after its acquisition by Oaktree in 2021. (Dylan Lobo, 3/10/2024, Citywire Wealth Manager, 'WTW acquires stake in PE-backed Atomos')Cazenove Capital has acquired London-based family office Whitley Asset Management (WAM), with founder Edward Whitley and his 10-member team joining Cazenove, while Co-Founder Louise Rettie retires; the deal's value was not disclosed. (Dylan Lobo, 7/10/2024, Citywire Wealth Manager, 'Exclusive: Cazenove Capital buys £1.5bn London family office')Brooks Macdonald is expanding its financial planning services with a £45m acquisition of Lift, paying £30m at completion and an additional £15m contingent on client retention and Ebitda targets; the deal, including Lift Financial Group and Lift-Invest, is expected to finalize by the end of March, after which the Lift team will join Brooks. (Dylan Lobo, 8/10/2024, Citywire Wealth Manager, 'Brooks Macdonald strikes £45m deal for £1.6bn advice business')Söderberg & Partners has expanded its investment portfolio by acquiring minority stakes in four more UK advice businesses, bringing its total to over 20 firms. The investments include Nottingham-based George Square, with £400m in assets under management (AUM); Cheltenham IFA, with £290m AUM; London-based Bluezone Capital, with £190m AUM; and nationwide firm Alexander Bates Campbell, which also operates a European private client subsidiary. (Julian Bovill, 21/10/2024, Citywire Wealth Manager, 'Nordic wealth manager buys stakes in four more UK firms')Investment consultancy Redington has been acquired by Arthur J Gallagher & Co for an undisclosed sum, with CEO Sylvia Pozezanac and her team remaining in place, while Gallagher, a global insurance brokerage with a market cap of $63bn (£48.56bn), oversees Redington's operations amidst SJP's reduced use of external consultants. (John Schaffer, 25/10/2024, Citywire Wealth Manager, 'Redington sold to insurance giant Gallagher')Titan Wealth has agreed to acquire Ravenscroft Investments Limited, a Channel Islands wealth manager with £7.9bn in AUM, for an undisclosed sum, subject to shareholder and regulatory approval; Ravenscroft will rebrand as Titan Wealth International next year, while its corporate finance and property management divisions will remain separate, with Founder Jon Ravenscroft continuing as a significant shareholder. (Financial Planning Today, 24/10/2024, 'Titan Wealth buys £7.9bn AUM Channel Islands firm')Fast-growing Financial Planning group Perspective has completed four new acquisitions—Clayden Financial Planning in Ipswich, PW White & Partners in Amersham, Constellation Financial Solutions in Darlington, and a longstanding self-employed adviser in Newcastle upon Tyne—bringing its total to 15 this year, adding £350m in assets under advice, 940 households as clients, and two new offices, raising its total to 41 offices; the group has now made 93 acquisitions overall. (Financial Planning Today, 16/10/2024, 'Perspective makes 4 acquisitions')Financial Planning firm Ascot Lloyd has acquired Scottish adviser Create and Prosper Financial Services for an undisclosed amount, adding £254m in assets under administration; Ascot Lloyd's Acquisitions Director, Gordon Kerr, highlighted that the deal enhances their national footprint and aligns with their ongoing M&A strategy to identify high-quality businesses that fit their culture and values. (Financial Planning Today, 14/10/2024, 'Ascot Lloyd acquires £254m AUA adviser')MoversBrooks Macdonald COO and CTO Caroline Abbondanza, who joined from FNZ in 2019, left the firm in August. She became COO in early 2023 after Lynsey Cross's departure, one of three senior exits at the time. Brooks declined to comment. (Dylan Lobo, 31/10/2024, Citywire Wealth Manager, 'Revealed: Brooks Macdonald operating chief exits')Anna Macdonald has joined Aubrey Capital Management as an Investment Manager, following roles at Amati Global Investors, where she co-managed the UK Listed Smaller Companies fund, and a brief position at Sustineri Global Investment. She previously served as an Executive Director at Adam & Co and is a frequent BBC radio contributor. (John Schaffer, 4/10/2024, Citywire Wealth Manager, 'Anna Macdonald resurfaces at Aubrey Capital')Carolyn Bell, with 16 years of experience, has joined Stonehage Fleming as Deputy Manager of the £2bn Global Best Ideas (GBI) Equity strategy, supporting Gerrit Smit. Previously at Aegon, she managed US, global equities, and tech strategies, following five years as an Investment Analyst at Baillie Gifford. (Sophie Downes, 8/10/2024, Citywire Wealth Manager, 'Stonehage Fleming adds new signing to £3.8bn strategy')Wealth manager Brown Shipley has hired Robbie Hewitt as a Wealth Planner for its Edinburgh office; Hewitt, with over 10 years of financial services experience, joins from JKFS and previously worked as a Mortgage Adviser at the Royal Bank of Scotland. (Financial Planning Today, 29/10/2024, 'Brown Shipley hires new planner for Edinburgh')True Potential has appointed Gerry Mallon, currently Head of Tesco Bank, as CEO starting in early 2025, following Daniel Harrison's announcement of his departure; in the interim, True Potential’s Chief Investment Officer Jeff Casson will serve as CEO until Mallon assumes the role, bringing experience from his six years at Tesco and previous leadership at Ulster Bank Ireland. (Julian Bovill, 7/10/2024, Citywire Wealth Manager, 'True Potential announces Tesco Bank chief as new CEO')Amanda Tovey has been appointed Head of Avellemy Private Wealth (APW) as it integrates with Whitechurch Securities, following FCA approval for Ascot Lloyd's acquisition of Whitechurch; Tovey will maintain her role as Head of SRI at Whitechurch and acting Head of APW until she transitions to the full-time position next year, having joined Whitechurch in 2012 after working as a Portfolio Manager at Barclays Wealth. (Natalia Vasnier, 7/10/2024, Citywire Wealth Manager, 'Revealed: Avellemy picks wealth head after Whitechurch deal')Martin Blank, Head of Manager Research at Schroders, will step down this month after over 20 years with the firm, having joined as a graduate analyst in 2001 and progressing to oversee a 10-member team responsible for billions in assets invested with external managers. (Joseph Eden, 9/10/2024, Citywire Wealth Manager, 'Schroders veteran head of manager research to exit')Titan Wealth has appointed Matt Hodey from PwC as Senior Risk Adviser amid an ongoing legal dispute with Tavistock; Hodey previously served as a Compliance and Risk Director at PwC and was a Director of Risk and Controls at Prudential. (Zachariah Sharif, 11/10/2024, Citywire Wealth Manager, 'Titan hires PwC risk director as Tavistock row rumbles on')Private equity-backed Attivo has appointed Jo French, former Schroders Director, as its first CEO, aiming to re-enter the discretionary fund manager (DFM) space; she will oversee the investment operations team and the firm's investment platform strategy. French previously served as COO at Benchmark Capital and held adviser sales roles at Sipp provider Hornbuckle before joining Schroders in 2022. (Victoria Bell, 14/10/2024, Citywire Wealth Manager, 'Attivo hires ex-Schroders director as CEO with eye on DFM launch')Royal London has appointed Iain McLeod as Director of Investment Proposition. He previously served as Head of Investment Proposition at M&G Wealth until June 2023. Before that, McLeod spent over 35 years at Abrdn and Standard Life in various investment roles, including Global Head of Multi-Manager Investment Specialists at Abrdn and Head of Investment Proposition at Standard Life from 2005 to 2011. (Nicola Blackburn, 16/10/2024, Citywire Wealth Manager, 'Royal London hires M&G Wealth’s investment boss')Fidelity International has hired Ravin Seeneevassen, reuniting him with former Allianz Global Investors colleague Mike Riddell, who joined Fidelity in July. Seeneevassen will start in London next month, bringing 17 years of experience, including his previous role as Lead Manager on the Allianz Fixed Income Macro strategy and supporting Riddell on several funds. (Jeremy Gordon, 17/10/2024, Citywire Wealth Manager, 'Exclusive: Fidelity adds Mike Riddell’s old Allianz colleague to bond team')Titanbay has appointed Michael Gruener, formerly Managing Director of strategic clients EMEA at BlackRock, as Co-CEO, joining existing CEO Ossama Soliman. With over 20 years of wealth management experience, Gruener previously worked at Goldman Sachs for nine years, reaching the Executive Director level before joining BlackRock in 2012. (Sophie Downes, 23/10/2024, Citywire Wealth Manager, 'Exclusive: Titanbay hires BlackRock veteran for CEO post')LGT Wealth Management has appointed Phoebe Stone as Chief Sustainability Officer in the UK to enhance its green credentials with potential clients. Stone has been managing the firm's sustainable investment proposition since its launch in 2018. (Natalia Vasnier, 24/10/2024, Citywire Wealth Manager, 'LGT Wealth Management makes new green push with Stone’s promotion')Sandra Dailidyte has joined Cazenove Capital as a Portfolio Manager in a newly created Scottish role, moving from her position as an Investment Director at Brown Shipley, where she spent over five years. Cazenove Capital aims to strengthen its commitment to the Scottish entrepreneur community with this appointment. Previously, Dailidyte held roles at Seven Investment Management and Standard Life as a Private Client Manager and Proposition Development Analyst. (Sophie Downes, 24/10/2024, Citywire Wealth Manager, 'Brown Shipley director exits for new Cazenove Capital Scotland role')Anders Lindegaard, who won the Premier League trophy with Manchester United in 2013, has transitioned from football to finance as a Business Development Specialist at UBS. The former goalkeeper, signed for £3.5m by Sir Alex Ferguson in 2010, will focus on providing wealth management services to top athletes and enhancing UBS's understanding of their needs. (Zachariaf Sharif, 25/10/2024, Citywire Wealth Manager, 'From Man Utd to UBS: Fergie’s £3.5m title winner starts new job')Wren InvestmentOffice has expanded its team with four new hires, including Jo Robinson as Client Relationship Director. Robinson brings 20 years of experience with ultra-high-net-worth clients, having previously worked at Kleinwort Benson and Barclays Private Bank. Alongside her, Vladislava Cusnir joins as Client Reporting Associate, Tiwalola Obadeyi as Client Relationship Assistant, and Savan Shah as Operational Associate, all contributing to Wren's focus on sustainable growth. (Natalia Vasnier, 28/10/2024, Citywire Wealth Manager, 'Wren Investment Office hires former Barclays banker for endowment push')BHP has expanded its financial advice business by adding Jonathan Lecomber as a Senior Financial Planner from Succession Wealth, bringing over 10 years of experience. Additionally, Tim Clasper has been promoted to the senior management team after completing the PDW Management Academy, having worked at BHP Financial Planning since 2019. (Financial Planning Today, 17/10/2024, 'Accountancy firm adds senior Planner in growth push')Hoxton Wealth has welcomed Dewi Evans, an experienced Financial Planner, to its Dubai team. An associate member of the CISI, Evans has over seven years of financial planning experience, with the last six dedicated to providing wealth advice in Dubai. (Financial Planning Today, 14/10/2024, 'Hoxton Wealth adds Financial Planner to UAE team')AJ Bell has strengthened its executive committee with the appointments of Ryan Hughes and Stephen Westgate. Hughes, who has been with AJ Bell since 2016, has been named Managing Director of AJ Bell Investments after serving as Interim Managing Director since late 2023. Westgate joins as Group Corporate Development Director, previously holding the position of Managing Director and Head of Financial Institutions at Deutsche Numis. (Financial Planning Today, 10/10/2024, 'AJ Bell hires 2 for leadership team')All information provided in this market digest has been gathered from Citywire Wealth Manager, Financial Planning Today, and IDEX Consulting.

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Is gender parity a problem in the insurance profession?

Research shows that women and particularly those from minority ethnic backgrounds are considerably under-represented in the insurance profession, especially in leadership positions. Published reports document that “white women make up around 45% of entry level roles yet only 18% of the C-suite” (McKinsey & Company: Gender parity is still a problem in insurance). Data by the REG network, data intelligence company, report that only 15.7% of broking roles are held by women (REG: Women in Insurance: Pushing positive change) with the female broker population falling short of FCA diversity targets. The UK insurance industry employs more than 400,000 people and is still considered as one of the nation’s coveted professions. However, its challenges with gender diversity and equality continue to be a concerning factor for employers and prospective talent. Over the past few years government institutions and insurance bodies have implemented several initiatives to drive change, such as the FCA’s 2022 diversity and inclusion policy for company boards and executive management. The ‘comply or explain’ stance adopted by the FCA provides targets that listed firms must employ to improve the representation of women and ethnic minority groups. Targets include a requirement for firms to ensure that at least 40% of board positions are held by women and progress against diversity strategies are included in annual financial reports. Although some progress has been made with an increase of women in entry level insurance positions, the female to male ratio levels remain unbalanced. “The lack of female diversity is particularly true of the Account Executive population, which has a significantly low number compared to other professions. There are still challenges around the pay gap which need to be addressed, and some women face barriers with professional development especially if they are single parents or the primary caregiver”, says Lisa Williams, Client Delivery Manager for the General Insurance Business. So how can the insurance profession tackle equality and inspire the next generation of female talent?Build an effective diversity strategyResearch shows that “78% of insurance companies lack internal targets for gender diversity” (Property Casualty: D&I study, issues, opportunities for women in insurance) and a study conducted by Marsh and the National African American Insurance Association (NAAIA) found that “nearly half of the survey participants confirm racism and racial bias as impeding the advancement of their careers in the insurance industry” (Risk & Insurance: Addressing diversity and inclusion in insurance).In order to address biases and any potential discrimination, inclusivity needs to be embedded into organisational culture. Strategies which include specific diversity targets and measurable activities will help businesses drive real change. A key component of the strategy should be the focus on diverse recruitment through non gendered job adverts, blind CVs and diverse interview panels. Tackle the gender pay gap As reported by Statista, the insurance and financial services profession has the largest gender pay gap in the UK. The mean gender pay gap sits at around 24.6%, meaning that on average male insurance employees earn 24.6% more than a female employee, which is significantly higher than the national average (Statista: Mean gender pay gap of full time employees in financial services and insurance). When asked what insurance employers should prioritise to improve gender equality, the majority of people in our online poll said addressing the gender pay gap should be the priority (50%) followed by having more female role models (20%) and mentoring programmes (18%).Failure for employers to tackle discrepancies around pay will not only continue to intensify internal discrimination but will likely lead to increased attrition and potential reputational damage, impacting business revenue and growth.Address deep rooted unconscious bias Employers should identify where unconscious bias exists across the business, working systematically to evaluate deep rooted causes. Examples might include approaches to performance reviews and feedback provided by managers. One study found that performance reviews in a global insurer differed per gender group, where women received comments on their communication style in comparison to men who were advised on skills they needed to develop in order to progress or run a department. Change must be driven from the top with senior leaders investing in expert training and initiatives that promote the right behaviours and enforce equitable practices. Research shows that conventional unconscious bias training that merely raises awareness does little to change biased behaviour. Investing in a long-term programme that supports structural changes to policies and operations, that isn’t just a one-time training session, will be much more effective.Mentorship and sponsorship opportunities Formal sponsorship and mentoring programmes play a key role in supporting the advancement of women. Professional mentoring provides individuals with the opportunity to receive impartial constructive feedback, helps build confidence and facilitates personal growth. Sponsorship programmes can be a powerful tool for enabling the next generation of female talent. They often provide strategic career guidance and new opportunities to enable women to progress and fulfil their potential. If you’re looking for a new insurance role, considering your career options or would just like some strategic career guidance get in touch with one of our insurance consultants. Alternatively, if you’re looking to hire or need support with your hiring strategy our expert consultants will be happy to help, you can learn more about our hiring solutions here. SourcesMcKinsey & Company: Gender parity is still a problem in insuranceREG: Women in Insurance: Pushing positive changeProperty Casualty: D&I study, issues, opportunities for women in insuranceRisk & Insurance: Addressing diversity and inclusion in insuranceStatista: Mean gender pay gap of full time employees in financial services and insurance

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The top three things insurance employers can do to attract talent

The insurance talent shortage is still one of the biggest threats for the industry with businesses struggling to attract the next generation. Statistics show that the insurance profession has one of the largest aging populations with 25% of the sector due to retire in the next ten years. Insurers and brokers continue to compete against more innovative sectors such as technology who are often able to offer more lucrative and exciting opportunities for graduates.Data shows that there was a 3.5% increase in insurance vacancies in Q3 2024 with London outperforming the rest of the UK with monthly activity increasing by 2.5%. Regarding insurance discipline, Broking leads the way for the highest number of vacancies with Underwriting seeing the biggest year on year uplift (Vacancy Soft: Insurance snapshot).Regarding talent attract challenges, wage inflation and unrealistic salary expectations continues to be key. A report by Vacancy Soft, the leading provider of labour market data and analytics, shows that, “people have been able to move jobs to achieve a 15%, 20% or even 25% pay increase and counter-offers have hit an all-time high” (Vacancy Soft: Vacancy Analytics).To address this challenge, businesses need to offer competitive benefits which don’t just focus on remuneration packages, but support workforce transformation and continuous innovation to develop and motivate their employees. Forward-thinking organisations are using innovative training and learning solutions to upskill their workforce and offer long-term career opportunities which enable personal and professional growth.To attract top talent, businesses must view their operations through the lens of their employees and make necessary tweaks. To attract top talent and build a motivated and skilled workforce, insurance employers need to focus on three critical areas; culture and values, flexible working and a realistic work life balance, and inclusion and diversity, which offer more than a competitive salary. Culture and values Culture, values and authenticity plays a huge role in attracting and retaining top talent. Our own research revealedthat big name brands are no longer the main appeal, with only 20% of employees listing ‘employer brand’ as an important consideration when looking for a new role, but more highlighting the importance of joining a company with a positive company culture that matches their own personal values and beliefs. Furthermore, a study by Workbuzz, UK employee engagement consultancy showed that, “almost 45% of UK employees…rank a great culture as the most important factor when looking for a new job…and that a top priority for job applicants is a consciously created culture” (Workbuzz: The state of employee engagement).People often want to work at companies that align with their belief system because it creates a sense of purpose and fulfilment in their work. When an individual's values are in alignment with those of the company they work for, it can create a shared purpose and a greater sense of satisfaction in the work they do. This alignment can also lead to a stronger sense of commitment, collaboration and loyalty to the company and its mission.In order to promote company values and culture, it’s important for companies to be authentic with their messaging externally and internally, this helps to build trust and credibility with current and prospective employees.Flexible working and a realistic work life balanceEmployees are increasingly prioritising work / life balance, flexibility, and wellbeing support when considering new job opportunities, rather than the level of challenge the role presents or the reputation of the employer's brand.In fact, our data shows that nearly three quarters (74%) of employees identified work / life balance as the most crucial factor when contemplating a new position, followed closely by benefits (71%) and job security (58%).How to support work/life balanceThere are several factors that businesses should consider when looking to support a work / life balance or enhance their flexible working practices:Openly communicate flexible working arrangementsThis may well be something that is part of a company’s working style but there can sometimes be confusion around whether employees feel empowered or allowed to take time out for personal needs during work hours. To ensure people feel supported and understand the boundaries, it’s important to communicate openly with current and prospective employees about endorsed flexible working practices. Encourage taking breaks and time offEmployees need time to recharge, and encouraging them to take regular breaks and vacations can help them maintain a better work / life balance.Set clear expectations and boundariesIt's essential for businesses to set clear expectations about workloads, deadlines, and work hours. This can help employees manage their time more effectively and avoid feeling overwhelmed.Prioritise mental health and wellbeingOffering resources and support for mental health and wellbeing, such as access to counselling, mindfulness programmes, or health and wellness activities, can help employees feel more supported and improve their overall quality of life.Encourage healthy habitsPromoting healthy habits such as exercise, healthy eating, and adequate sleep can help employees manage stress and maintain their physical and mental health.Lead by exampleIt's important for business leaders to model good work / life balance practices and encourage their employees to do the same. By leading by example, business leaders can embed positive working styles and support employees to prioritise healthy habits. Strive to be diverseThe General Insurance profession is making big strides in becoming more diverse, but there’s still work to do. Research has shown that a diverse and inclusive workplace delivers the best results and has the best teams. Adding to this, companies with higher diversity, especially with more women, have higher productivity levels, on average between 20-25% (McKinsey & Company: Diversity wins: How inclusion matters).Companies in the General Insurance profession, like many other businesses, should ensure that they have a meaningful and strategic approach to diversity and inclusion which is understood across all levels and teams. This will help to do the following: Attract and retain talent: A clear and comprehensive D&I approach can help to attract and retain top talent, particularly from diverse backgrounds, who are looking for a workplace that values diversity and inclusivity.Improve employee engagement and retention: A D&I strategy that is clearly communicated and implemented can improve employee morale and engagement by creating a sense of belonging and making employees feel valued and respected.Enhance innovation and creativity: Diverse teams create diversity of thought, which leads to greater innovation and creativity.The insurance profession has historically been quite traditional in its practices and standards, but there is a significant shift towards greater inclusivity. As companies cultivate more diverse talent pools, the significance of establishing an inclusive workplace, driving business growth and enhancing retention, increases.Whether you’re looking for support with your talent strategy, business transformation needs or would just like to discuss our offerings and solutions our specialist consultants are here to help. If you’d like more information or just an informal chat, feel free to contact us. For more up to date information on attraction and retention practices in the insurance profession, you can access our 2024 Insurance Salary, Benefits and Skills Guide.

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General Insurance newsletter Friday 25th October 2024

Insurance NewsHow to attract top insurance talent- To attract talent, insurance employers should prioritise building an effective employee value proposition and authentic culture that will resonate with people, instilling a realistic work-life balance, and employing practical changes to increase diversity and inclusion. Find out what practical steps you can take today to attract top talent quickly. (IDEX Consulting news, 'How to attract top insurance talent')Flexible working bill: what you need to know - The UK’s Flexible Working Bill permits employees to request flexible work from their first day, requires faster employer responses, and mandates consultation before rejections. While flexibility isn’t guaranteed, the bill aims to foster more accommodating workplaces, which is crucial for attracting and retaining talent. (IDEX Consulting news, 'Flexible working bill: what you need to know')Building inclusive hybrid cultures - Creating an inclusive hybrid culture involves recognising diverse needs, promoting equitable practices, and addressing biases. Essential steps include gathering employee feedback, training leaders, ensuring technology is accessible, and offering diverse mentorship programmes. Prioritising long-term diversity efforts and focusing on equity rather than simple equality helps build a truly inclusive workplace. (IDEX Consulting news, 'Building inclusive hybrid cultures')Be an equity advocate - Equity is not equality, it focuses more on ensuring individual are supported with tailored solutions. To become a true advocate, there many steps you can take including; addressing unconscious biases, avoiding gendered language, and using tools like the Implicit Association Test. Understand your workplace’s equity initiatives and speak up against bias. If your employer doesn’t have sufficient protocols in place, then instigate the change yourself. (IDEX Consulting news, 'Be an equity advocate')The latest Hiscox Cyber Readiness Report reveals a significant increase in cyber incidents affecting 67% of organizations globally and 70% in the UK, resulting in heightened reputational risks, challenges in customer acquisition (47% globally, 46% in the UK), customer attrition (43%), negative publicity (38%), and loss of business partners (21%). (Kenneth Araullo, 25/10/2024, Insurance Business, 'Cyber incidents surge, damaging brand trust and business relationships – Hiscox')Miller Insurance Services has partnered with CyberCube to enhance its data-driven cyber risk advisory, licensing CyberCube’s Broking Manager and Prep Module to provide advanced cyber risk analytics and better support clients in managing complex digital threats. (Jonalyn Cueto, 25/10/2024, Insurance Business, 'Miller partners with CyberCube')Global commercial insurance rates decreased by 1% in Q3 2024, according to Marsh, driven by increased competition in the property market, with notable rate drops in the Pacific (-6%), UK (-5%), Asia (-4%), and moderate increases in the US (+3%) and Latin America (+3%). (Kenneth Araullo, 24/10/2024, Insurance Business, 'Global commercial insurance rates drop for first time since 2017 – Marsh')A new report by the Lloyd’s Market Association (LMA), "Underwriting the Transition," highlights the insurance sector's critical role in the shift to a low-carbon economy and examines the challenges, risks, and opportunities for insurers over the next two decades, based on KPMG's analysis. (Jonalyn Cueto, 24/10/2024, Insurance Business, 'LMA report highlights role of insurance in decarbonisation')Aurora, a digital commercial insurance platform, has secured seed funding from QBE Ventures to enhance its algorithmic trading, expand product offerings, and develop new distribution partnerships, aligning with QBE’s vision of fostering a data-driven and efficient commercial insurance ecosystem. (Jonalyn Cueto, 24/10/2024, Insurance Business, 'Aurora secures funding from QBE Ventures')The International Union of Marine Insurance (IUMI) reported a 5.9% increase in global marine insurance premiums, reaching $38.9 billion in 2023, driven by growth across all business lines due to rising global trade, higher vessel values, and increased offshore energy activity. (Kenneth Araullo, 23/10/2024, Insurance Business, 'IUMI reports 2023 marine insurance premiums at $38.9 billion, up 5.9%')A Gallagher Re study, using Bitsight data from 62,000 organizations, found that poor cybersecurity performance increases the risk of incidents and claims, while strong performance lowers it. External scanning data, combined with firmographic insights, could help insurers reduce loss ratios by up to 16.4% by targeting the most critical 20% of risks. (Kenneth Araullo, 23/10/2024, Insurance Business, 'Gallagher Re study links cybersecurity gaps to higher insurance claims')Munich Re reported a Q3 2024 net result of €0.9 billion, below market expectations of €1.42 billion, due to major losses from natural catastrophes, including €0.5 billion from Hurricane Helene and significant claims from events in Canada, Europe, and the Caribbean. (Kenneth Araullo, 23/10/2024, Insurance Business, 'Munich Re's Q3 net falls short at €0.9 billion due to catastrophic losses')Rokstone, part of the Aventum Group, has entered a three-year binding authority agreement with Aviva to underwrite global D&F property risks up to $2 million per risk, aiming to generate over $200 million in GWP. This follows Rokstone's recent $5 million facility with Allianz and the hiring of senior underwriter Ludo Araujo from Chaucer Syndicates. (Kenneth Araullo, 23/10/2024, Insurance Business, 'Rokstone secures $200 million D&F property agreement with Aviva')Allianz has ranked as the top insurance brand globally and 29th among the world's most valuable brands in the 2024 Best Global Brands ranking by Interbrand, increasing its brand value to $23.5 billion. Additionally, it has maintained its status as the most valuable financial services brand for six consecutive years and was recognized for its employer reputation, ranking 7th on Fortune's 2024 Best Companies to Work For in Europe list. (Kenneth Araullo, 23/10/2024, Insurance Business, 'Allianz becomes top global insurance brand, ranks 29th worldwide')Generali, Italy's largest insurer, will stop providing new coverage for companies in oil and gas transportation, processing, and distribution that don't meet energy transition requirements, aligning with the Paris Agreement's goals to limit global warming. (Kenneth Araullo, 23/10/2024, Insurance Business, 'Generali ends insurance for midstream, downstream oil projects')CNA Financial Corporation anticipates pretax net catastrophe losses of $143 million for Q3 2024, primarily from four major events including $55 million from Hurricane Helene, with $127 million in the commercial segment and $16 million in the international segment, reflecting its average combined ratio impact over the past five years. (Kenneth Araullo, 22/10/2024, Insurance Business, 'CNA reports US$143 million in Q3 2024 catastrophe losses')AXA XL has launched cyber insurance coverage for businesses developing their own Generative AI models, expanding its global cyber insurance portfolio to address emerging risks. This specialized coverage is available as an add-on to the CyberRiskConnect policy across the US, Canada, the UK, Europe, and Asia. (Kenneth Araullo, 23/10/2024, Insurance Business, 'AXA XL Reinsurance names Greg Schiffer as CEO for North America')Insurance Premium Tax (IPT) receipts hit a record £4.5 billion in H1 2024/25, according to HMRC, representing a 13% increase from £503 million less in the same period last year, compared to £1.5 billion a decade ago and £3.2 billion five years ago. (Kenneth Araullo, 22/10/2024, Insurance Business, 'UK insurance premium tax hits new high')Beazley has launched FLEX, a new consortium offering combined civil liability, crime, fraud, and cyber cover for financial institutions, with coverage limits of up to €50 million or $50 million; the consortium aims to simplify placement and claims processes while minimizing coverage gaps and includes access to Beazley’s full range of cyber services. (Kenneth Araullo, 21/10/2024, Insurance Business, 'Beazley launches FLEX consortium for financial institutions' liability and cyber risks')MoversOliver Wyman has expanded its P&C capabilities in Europe with a new London-based presence, led by Matthew Facey, who brings over 23 years of experience in the European P&C and technology sectors, including key roles at WTW. (Jonalyn Cueto, 24/10/2024, Insurance Business, 'Oliver Wyman expands P&C practice in Europe')AXA XL Reinsurance has appointed Greg Schiffer as CEO of its North America Reinsurance division, effective Nov. 11. Schiffer, previously Managing Director and Head of US National Accounts at a global reinsurer, brings extensive experience in specialty, engineering, and property sectors. (Kenneth Araullo, 23/10/2024, Insurance Business, 'AXA XL Reinsurance names Greg Schiffer as CEO for North America')HDI Global has appointed Eric Joly-Pottuz as the new head of its Paris-based HDI Enablers division, specializing in Alternative Risk Transfer, succeeding Etienne de Varax, who will retire at the end of 2024; Joly-Pottuz, who has significant experience from his management roles at HDI Global since 2016 and earlier at AXA Group, aims to advance innovative risk solutions in the ART sector. (Kenneth Araullo, 23/10/2024, Insurance Business, 'HDI Global appoints Eric Joly-Pottuz as new head of Enablers unit')The Lloyd’s Market Association (LMA) Board has extended the appointment timeline for its new Chair, with the new Chair officially assuming the position on January 1, 2026. Andrew Brooks will continue as current Chair throughout 2025, while Sean McGovern, CEO of UK & Lloyd’s at AXA XL, has been appointed Chair-Elect to serve alongside him during the transition, ensuring continuity in leadership. (Jonalyn Cueto, 23/10/2024, Insurance Business, 'LMA unveils new chair transition process')In further news...The Lloyd’s Market Association (LMA) has appointed John Levett as Head of Regulatory Affairs, effective immediately; Levett, who joined the LMA in October 2023, has extensive experience in insurance and regulation, previously serving as Senior Regulatory Lead at RSA Insurance and as a technical specialist at the FCA. (Jonalyn Cueto, 22/10/2024, Insurance Business, 'Lloyd's Market Association announces new head of regulatory affairs')Berkshire Hathaway Specialty Insurance (BHSI) has appointed Kristina Målarbo as Head of Claims for the Nordics region, bringing 25 years of experience in managing commercial insurance claims, including multinational claims, and will be based in Stockholm. (Kenneth Araullo, 22/10/2024, Insurance Business, 'Kristina Målarbo named head of claims for Nordics at BHSI')Gallagher Re has appointed Lara Mowery as its new Chief Commercial Officer, where she will shape the company's strategic direction and enhance its product capabilities. With over 30 years of reinsurance experience, including leadership roles at Guy Carpenter and involvement with the Association of Bermuda Insurers and Reinsurers, Mowery will be based in Minneapolis. (Kenneth Araullo, 22/10/2024, Insurance Business, 'Gallagher Re names Lara Mowery chief commercial officer')Liberty Specialty Markets (LSM) has appointed Nikunj Mahida as Head of Third-Party Claims for the UK and MENA regions, overseeing the London claims team in financial and professional (FINPRO), cyber, and casualty lines; Mahida, a qualified solicitor, has been with LSM since 2015 and previously held roles including FINPRO Claims Manager and Cyber Claims Lead. (Kenneth Araullo, 22/10/2024, Insurance Business, 'LSM appoints Nikunj Mahida as head of third party claims for UK and MENA')Aon has appointed Adam Neverton as Global Head of Strategic Broking for professions, effective immediately, focusing on customized risk management solutions for professional services clients; he brings over 30 years of industry experience and has been with Aon since 1993. (Kenneth Aruallo, 22/10/2024, Insurance Business, 'Aon appoints Adam Neverton as global head of strategic broking')Howden Re has expanded its DACH operations with four senior appointments in Germany: Lars Nelson as Managing Director and Head of the German branch, Dr. Bjoern Hagendorff as Managing Director for regional clients, Dr.-Ing. Mathias Raschke as Director of nat cat modeling for Germany and Austria, and Verena Schärtl as Director and Head of Actuarial for Germany and Austria. Nelson, with 20 years of reinsurance experience, joins on Jan. 1, 2025, from Aon; Hagendorff starts Nov. 1, coming from Aon’s Reinsurance Solutions; Raschke, who brings over 25 years of nat cat expertise, joined on Sept. 1; and Schärtl, with extensive actuarial experience, joined on Oct. 1. (Kenneth Araullo, 21/10/2024, Insurance Business, 'Howden Re boosts DACH operations with four senior hires in Germany')BPL has appointed Catherine Aubert as Director, leveraging her nearly 30 years of experience to focus on strategy, client service, and professional support in credit and political risk insurance; she joins from Société Générale Corporate and Investment Banking, where she was Managing Director of the credit insurance distribution division for 25 years. (Kenneth Araullo, 21/10/2024, Insurance Business, 'BPL appoints Catherine Aubert as director to drive CPRI growth')Tokio Marine Kiln has appointed Thomas McShane as Head of Technology and Media E&O, a new role where he will leverage nearly 10 years of professional lines experience; he joins from Axis, where he led E&O and oversaw complex policies for large tech firms, previously working at Allianz and AIG in underwriting professional indemnity and cyber lines. (Kenneth Araullo, 21/10/2024, Insurance Business, 'TMK names Thomas McShane as head of technology and media E&O')All information provided in this market digest has been gathered from Insurance Business and IDEX Consulting.

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