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The biggest challenges facing Financial Advisers

Financial advisers today face many challenges in their day to day roles due to increased work pressures, a challenging economic climate and growing client demands. Recent advancements mean professionals in the industry are required to juggle various responsibilities, growth targets and duties. “2024 has been quite a turbulent year for professionals in the financial advice sector. An uncertain economy, fluctuating inflation rates, changing regulations especially around the Consumer Duty and a talent shortage has added pressures and work strains to jobs and responsibilities. However, 2025 brings new opportunities, especially around the adoption of technology. Those firms who deploy tech solutions quickly will see huge advantages, especially around risk management, efficiency and revenue”, says Alex Merrick, Client Director, Financial Services, IDEX Consulting. If you’re considering your career options across the Wealth Management sector or need support with your hiring strategy get in touch with Alex Merrick, who will be happy to help. ChallengesEconomic pressures The financial industry continues to face unique pressures and continued uncertainty. Financial advisers in particular are navigating a challenging economic environment seeing slow growth and high interest rates. When looking at the current state of investment plans against the cost of living crisis, 53% of advisers reported that some clients have needed to change their investment plans (Schroders: What are the key challenges facing financial advisers in 2023?).Regulators are moving forward with stricter standards as Brexit prompts changes to EU-based regulations. The FCA has recently investigated the internal practices and processes within financial firms and remains focused on enforcing Consumer Duty (FCA: Consumer duty implementation good practice and areas for improvement). Maintaining compliance with updated regulations can be expensive as well as time consuming. In addition, the link between Consumer Duty and ‘price vs value’ will add pressure on advisers to effectively communicate the value of navigating clients through turbulent market conditions.The recession is yet another threat financial advisers are facing. Being a natural part of the economic cycle, 2025 will not be the first nor the last time the risk of recession occurs. The outcomes of a recession can be catastrophic for firms that are not sufficiently prepared (RocketFin: Facing the future: the top challenges for financial services companies in 2024).To mitigate risk, firms should establish a robust risk management framework. Frameworks should incorporate stress testing and scenario analysis along with contingency plans that are tailored to managing risks associated with any potential recession (McKinsey: Derisking AI: risk management in AI development). With the tax changes announced by the government financial advisers must ensure they have the necessary intelligence and data to advise clients on their investments in an informed and timely manner (Financial News: What concerns UK financial advisers in 2024).Inflation and client expectations The relationship between money and emotion is a psychological area that financial advisors will be acutely aware of and able to manage. Requiring ongoing effort, advisors must continuously show the value they bring to a client’s wealth portfolio, investment returns and interest rates. With interest rates remaining near historic lows, it has been tough for those who rely on income from their investments. Advisers have frequently added higher-risk assets to portfolios but there is a potential for these to lose value with inflation and rising interest rates (Lloyds Bank: What is inflation and what does it mean for your money). Over the past couple of years inflation has surged to an unprecedented 20-year-high which has landed financial planners and advisers in an unfamiliar environment, facing a new level of the ‘unknown’ (Professional Adviser: Inflation and financial planning – focusing on the bigger picture). The amount of uncertainty has created scenarios where advisers are unable to use old data modelling and financial analytics to justify market predictions and assumption, leading to increased client scrutiny and potential risk of diminished trust. Artificial intelligenceArtificial intelligence should be integrated strategically to enhance an already well-functioning system that is based on human connection, skill, and empathy. Increased reliance on technology has the potential to create an environment which neglects social skills essential for the profession. In a similar way to how financial advisers warn clients against impulse investment decisions led by herd mentality, the same caution must be applied to artificial intelligence (GOVUK: The benefits and harms of algorithms: a shared perspective from the four digital regulators). Failure to do so could create devastating financial outcomes for clients and a risk of credibility damage for financial advisers. Another crucial challenge which impacts financial advisers is the implication AI has on fraud, making it more seamless and frequent across the industry. Financial advisers are targeted with convincing communications every day, making the likelihood of a hacking incident more of a ‘when’ rather than an ‘if’ (FTAdviser: How to assess AI’s threats and opportunities). Financial advisers invest a huge amount of time and effort building client relationships which can be easily sabotaged with a cyber-attack. Open communication, trust, strong client relationships and empathy is the foundation of effective financial advice practice, which AI cannot replace. (IFA Magazine: Before AI met wealth management & the tech challenges we forget about). AI tools can be misleading, resulting in inaccuracies, technical errors and misguided algorithms. Tools and software systems must therefore be seen as a powerful addition rather than a reliable holistic solution.Although there are risks associated with AI, it also offers a number of opportunities especially regarding automation and speed. Financial Advisers who use voice-controlled automated financial planning software are able to better inform their clients.If you’re looking for support with your hiring strategy or looking for a new career opportunity contact one of our Financial Services consultants.Sources:Before AI met wealth management & the tech challenges we forget about - IFA MagazineFCA: Consumer duty implementation good practice and areas for improvementFTAdviser: How to assess AI’s threats and opportunitiesFTAdviser: Ignoring AI is the biggest threat to adviser survivalFinancial News: What concerns UK financial advisers in 2024GOVUK: The benefits and harms of algorithms: a shared perspective from the four digital regulatorsIFA Magazine: Before AI met wealth management & the tech challenges we forget aboutLloyds Bank: What is inflation and what does it mean for your moneyMcKinsey: Derisking AI: risk management in AI developmentProfessional adviser: Inflation and financial planning – focusing on the bigger pictureRocketFin: Facing the future: the top challenges for financial services companies in 2024Schroders: What are the key challenges facing financial advisers in 2023?

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General Insurance newsletter Friday 6th December 2024

Insurance NewsWhy mental health should be a priority for employers - Businesses must prioritise mental health to combat rising stress and burnout, as neglecting it leads to absenteeism, attrition, and reduced productivity. Effective measures include fostering open communication, offering support programs, and modelling healthy behaviours to create a thriving and balanced workplace. (IDEX Consulting news, 'Why mental health should be a priority for employers')Sustainability as a competitive advantage - Sustainability helps businesses attract top talent, retain clients, and build customer loyalty. Embedding ESG principles enhances accountability, reputation, and profitability. Key strategies include transparent communication, stakeholder engagement in sustainability goals, and measurable actions to reduce environmental impact. (IDEX Consulting news, 'Sustainability as a competitive advantage')Enhance your career prospects - To stand out in a competitive job market, focus on in-demand skills like sustainability, data management, and regulatory expertise. Adapt to emerging trends in renewables and cyber resilience, and leverage experience from regulated industries to transition into high-growth sectors. (IDEX Consulting news, 'Enhance your career prospects')Insurance Broking market trends - The 2024 insurance broking market focuses on improving broker-insurer relationships and addressing talent gaps in leadership and sales roles. Insurers aim to expand geographically and by specialty, leveraging gains from the hard market. Success hinges on strong employee value propositions, emphasizing career growth and impactful market stories to attract top talent. Key in-demand skills include technical expertise, business development, and underwriting proficiency. (IDEX Consulting news, 'Insurance Broking market trends')Beazley’s 2024 Risk & Resilience report highlights growing cyber risks tied to AI adoption, with 25% of businesses ranking disruptive technologies as their top risk and 68% anticipating job displacement, emphasising the critical role of insurers in managing these challenges. (Joshua Recamara, 5/12/2024, Insurance Business, 'Insurers' role under scrutiny amid elevating cyber and AI risks')Activate Group has expanded its Halifax headquarters, moving to a 14,000-square-foot facility in Dean Clough’s D Mill, up from 9,000 square feet in F Mill. Founded in 2015, the company employs over 700 people across the UK and serves major clients like Tesco, AXA, and Direct Line. The move supports its growth following a recent investment by Elysian Capital. (Jonalyn Cueto, 5/12/2024, Insurance Business, 'Activate Group moves to new HQ')Clyde & Co.’s UK PI Market report reveals that professional indemnity rates fell unexpectedly fast in 2024 due to rising competition from MGAs, despite 56% of market professionals predicting no rate increases. Legal Director Sam Godding noted the sector faces challenges but also significant opportunities amidst transformation. (Joshua Recamara, 5/12/2024, Insurance Business, 'What's happening with PI rates in 2024? – Clyde & Co report')During its 2024 Investor Day, WTW outlined its growth strategy, including a joint venture with Bain Capital to re-enter the treaty reinsurance broking market. WTW CEO Carl Hess highlighted progress under the “Grow, Simplify, and Transform” framework, emphasizing investments in talent, technology, and operational restructuring to drive value creation. (Kenneth Araullo, 4/12/2024, Insurance Business, 'WTW and Bain Capital partner to re-enter treaty reinsurance market')Aon will acquire Platform Labs' intellectual property portfolio, including cyber data science technologies and provisional patents, with Robert O’Connell set to integrate these assets into Aon’s offerings. Recent advancements in Aon's cyber sector include launching the Cyber Risk Analyzer platform and issuing the first 144A cyber catastrophe bond for AXIS Capital, alongside senior hires to strengthen its global cyber division. (Kenneth Araullo, 4/12/2024, Insurance Business, 'Aon taps Robert O’Connell to strengthen cyber reinsurance offerings')Pen Underwriting’s home insurance practice has joined Flood Re’s Build Back Better scheme, enabling policyholders to incorporate up to £10,000 in flood resilience measures during repairs. The initiative helps reduce the long-term impact of flooding by funding adaptations such as flood-resistant doors, non-return valves, and waterproof flooring, improving recovery times and reducing displacement for affected families. (Kenneth Araullo, 4/12/2024, Insurance Business, 'Pen Underwriting joins Flood Re's Build Back Better Scheme')The Financial Conduct Authority (FCA) has launched a market study to assess whether premium financing provides fair value for motor and home insurance buyers, recognizing it as an essential product for many consumers. The review has sparked varied reactions, with some questioning the necessity of the sector. During a recent panel, industry experts discussed the potential impact of the investigation, with David Sparkes from BIBA noting that the study could highlight the economic implications of changes to brokers, particularly regarding recourse and non-recourse premium finance agreements. (Mia Wallace, 3/12/2024, Insurance Business, 'What will the FCA's market study into premium financing mean for brokers?')Aon has renewed and expanded its Aon Client Treaty (ACT) for the tenth year, increasing the co-insurance to 28.5% for 2025, up from 22.5% in 2024. ACT, Aon’s London Market placement facility, provides clients with new capital sources and has placed over US$3.5 billion in gross written premium since 2016. The expanded coverage will apply to core business lines placed through Aon’s Global Broking Centre in London. (Joshua Recamara, 3/12/2024, Insurance Business, 'Aon announces renewal and expansion of Aon Client Treaty for 10th year')Ecclesiastical has partnered with Clear Councils, a Chartered insurance brokerage, to expand its schemes portfolio, with the collaboration set to launch in early 2025. Clear Councils provides insurance solutions to over 2,000 UK local councils, offering coverage such as public and employers’ liability, officials’ indemnity, and property damage. The partnership aims to enhance Ecclesiastical's offerings to local councils and charities. Clear Councils also supports charities with tailored coverage like trustee indemnity, cyber insurance, and buildings insurance. (Jonalyn Cueto, 3/12/2024, Insurance Business, 'Ecclesiastical partners with Clear Councils')Rokstone, an international specialty MGA, has acquired a second underwriting box at Lloyd’s, just six months after its first. The new box, 398a, complements its existing box 398 and allows the company to expand into financial lines and casualty, alongside its core offerings such as D&O liability, professional indemnity, surety, property, marine, aviation, and more. This expansion strengthens Rokstone’s relationships with brokers and enhances its presence in the London market. (Kenneth Araullo, 2/12/2024, Insurance Business, 'Rokstone adds second Lloyd's box to support broker demand')NorthStandard has expanded its partnership with Noord Nederlandsche P&I Club (NNPC), making NorthStandard the exclusive reinsurer for NNPC. This new agreement, signed in Newcastle, supports NNPC’s growth and diversification efforts with enhanced products and services. The collaboration, which began in 2008, aims to deliver added value to NNPC’s members and clients, reinforcing its position in the Northern European coastal insurance sector. Rob Beets, chairman of NNPC, highlighted that the partnership aligns with the company’s future vision. (Kenneth Araullo, 2/12/2024, Insurance Business, 'NorthStandard and NNPC formalise strategic partnership')Mergers and AcquisitionsWTW’s Quarterly Deal Performance Monitor (QDPM) projects a rise in M&A activity for 2025, driven by improved economic conditions, stabilised interest rates, and curbed inflation, with trends including AI's influence on deals, geopolitical risks, regulatory changes, and increased mid-market activity fueled by cash reserves from 2024. (Kenneth Araullo, 5/12/2024, Insurance Business, 'M&A activity set for a surge in 2025 – WTW')AbbeyAutoline has completed its third major acquisition of 2024 with the purchase of Wallace Insurance Brokers’ customer book, following earlier deals with Martin Carey Insurance and Down Insurances. Julie Gibbons, Managing Director of AbbeyAutoline, welcomed the move, highlighting Wallace Insurance’s strong reputation in construction and commercial insurance as a perfect fit for their expansion across Northern Ireland. The acquisition reinforces AbbeyAutoline’s position as the region’s largest insurance broker, enhancing its ability to deliver tailored solutions and marking a key milestone in its growth strategy. (Jonalyn Cueto, 5/12/2024, Insurance Business, 'AbbeyAutoline acquires Wallace Insurance Brokers')Brown & Brown (Europe) Limited has acquired Drewberry Limited, a specialist in employee benefits, workplace pensions, and private medical insurance. Drewberry will join Brown & Brown’s Premier Choice Group, with Co-Founders Andrew Jenkinson and Tom Conner joining the leadership team. The acquisition strengthens PCG’s employee benefits services, with Drewberry’s employees remaining in their current roles to ensure client service continuity. (Kenneth Araullo, 4/12/2024, Insurance Business, 'Brown & Brown acquires Drewberry to expand UK benefits reach')AIG has completed the sale of its global individual personal travel insurance and assistance business, including Travel Guard, to Zurich Insurance Group, finalising the transaction on December 2, 2024. Excluded from the sale are AIG’s Japan business, its joint venture in India, and travel insurance offerings through its Group Accident & Health division. AIG was advised by Evercore Group LLC, with legal counsel from Willkie Farr & Gallagher LLP and Norton Rose Fulbright LLP. (Kenneth Araullo, 3/12/2024, Insurance Business, 'AIG finalizes sale of Travel Guard to Zurich Insurance Group')Arthur J. Gallagher & Co (Gallagher) has acquired the UK operations of Caytons Law LLP through its claims and risk management subsidiary, Gallagher Bassett. Caytons specialises in legal advice on commercial and professional liability insurance matters and operates in London and Bristol. The firm's Principals, John Cayton, Sam Moore, and Robin Cundall, will integrate into Gallagher Bassett’s UK operations, led by Manan Sagar. The acquisition aims to strengthen Gallagher Bassett’s claims management offerings in the UK market. (Kenneth Araullo, 2/12/2024, Insurance Business, 'Caytons Law joins Gallagher Bassett in strategic UK expansion')MoversBMS has bolstered its energy division with Charlotte Marsh as Divisional Director for BMS Energy, leveraging her decade of experience in marine hull, onshore energy, and power generation from roles at Price Forbes. Toby Hanington, now Divisional Director for upstream, brings expertise in oil and gas sector liability from JLT and Howden. Jack Palmer, also Divisional Director for upstream, offers a decade of experience managing accounts for global energy clients from his tenure at Howden. All hires are London-based. (Kenneth Araullo, 5/12/2024, Insurance Business, 'BMS expands energy team with three senior appointments')Aon has appointed Robert O’Connell as Global Cyber Strategy and Growth Leader within its Reinsurance Solutions division. Based in New York, he will focus on developing advanced cyber solutions, including leveraging insurance-linked securities (ILS) and expanding access to capital markets. O’Connell, formerly CEO of Cyber Re Limited, brings expertise in cyber underwriting, data science, and analytics. (Kenneth Araullo, 4/12/2024, Insurance Business, 'Aon taps Robert O’Connell to strengthen cyber reinsurance offerings')Lockton Re has appointed Sabrina Veau as a Senior Broker in its Capital Advisory team, based in London. Veau joins after 22 years at Aon, where she focused on optimizing capital structures, regulatory complexities, and rating agency processes, while also leading Aon’s Actuarial and Analytics division, delivering risk solutions for financial institutions and insurers. (Kenneth Araullo, 4/12/2024, Insurance Business, 'Sabrina Veau joins Lockton Re to bolster capital advisory')Allianz Commercial has promoted Allie Chadwick to Regional Head of Multinational in the UK, overseeing multinational accounts and the servicing team. With over 15 years of experience, Chadwick, who has spent over six years at Allianz, succeeds Kevin Hegel and will report to Guy Money, Global Head of Multinational, while remaining based in London. (Joshua Recamara, 4/12/2024, Insurance Business, 'Allianz Commercial names new UK regional head of multinational')Evolution Claims Management has appointed Russell Crewe as CEO, succeeding Co-Founder Darren Cooper, who remains a main Board Director. Crewe, previously Managing Director, is excited about leading the company into its next growth phase, building on Cooper’s successful leadership. Cooper, who co-founded the company in 2015 after selling his previous firm, LAS, has over 20 years of industry experience. (Jonalyn Cueto, 4/12/2024, Insurance Business, 'Crewe named CEO of Evolution Claims Management')H&H Insurance Brokers (HHIB) has expanded its business team in response to growing client demand, with new hires and internal promotions. The team, led by Head of Commercial Kara Jenkinson, includes Account Executives Lee Sparrow and Ruth Wallbank, Account Handler Tom McGaffin, Commercial Brokers Rachel Neile and Kirsty Glencross, and apprentice Ellie Slack, bringing over 80 years of combined industry experience. (Jonalyn Cueto, 4/12/2024, Insurance Business, 'HHIB expands team amid rising demand')Gallagher has made key regional leadership appointments in its UK & Ireland retail division, covering 14 offices and 750 employees. Mark Kerry is promoted to Regional Managing Director for Scotland and Northern Ireland, overseeing offices in Glasgow, Edinburgh, Belfast, Aberdeen, and the Isle of Skye. James Fletcher takes on the role of Regional Managing Director for the North West, leading Manchester, Sale, and Liverpool, while James Murray becomes Regional Managing Director for the North East, overseeing teams in Newcastle, Leeds, and other key locations. (Jonalyn Cueto, 4/12/2024, Insurance Business, 'Gallagher announces appointments for UK & Ireland division')Howden has appointed Azman Noorani as Global Practice Leader for surety, as part of its strategy to enhance its surety offerings and global client services. Noorani, who brings over 26 years of experience, joins from Swiss Re, where he was Global Head of Surety. Reporting to Mark Wood, Head of Global Specialty Practices, he will lead the development of Howden's global surety practice, focusing on innovative solutions for companies with multi-country bond requirements. (Jonalyn Cueto, 4/12/2024, Insurance Business, 'Howden appoints Noorani as global head of surety')Swiss reinsurer SIGNAL IDUNA Reinsurance (SI Re) has appointed Dr. Robert Salzmann as Chief Underwriting Officer, effective Jan. 1, joining the executive board. Salzmann, who has been with SI Re since 2014, brings extensive experience in underwriting and insurance-linked securities (ILS). Previously serving in roles including Head of Pricing and ILS analytics and Head of ILS Markets and Retrocession, Salzmann's leadership is aligned with SI Re’s strategic goals. (Kenneth Araullo, 3/12/2024, Insurance Business, 'SI Re names Robert Salzmann as chief underwriting officer')Guy Carpenter has appointed Cem Altuntas as Managing Director in the Capital & Advisory team, based in New York. Altuntas, who began his role in December, will focus on capital raising and M&A advisory services across North America. With over a decade of experience in insurance-focused investment banking, Altuntas previously served as Executive Director at UBS and held senior roles at Moelis & Company, Merrill Lynch, and Citi. He began his career in engineering before transitioning to finance with an MBA from NYU Stern School of Business. (Kenneth Araullo, 3/12/2024, Insurance Business, 'Guy Carpenter names Cem Altuntas managing director in New York')Aon has appointed Anne Corona as CEO of enterprise clients and Global Chief Commercial Officer, effective January 1, 2025. The move supports Aon’s strategy to enhance its commercial operations by integrating data and analytics and improving global service delivery. With nearly 25 years at Aon, Corona most recently served as CEO of Asia Pacific, where she focused on innovation, growth, and strengthening client relationships. She will be based in Singapore. (Kenneth Araullo, 3/12/2024, Insurance Business, 'Anne Corona named Aon's global chief commercial officer')Miller has appointed Michael Pomroy as an Account Executive in its direct marine war team in London. With over a decade of experience, Pomroy joins from Costero Brokers Ltd, where he was Head of Marine War. Previously, he held senior roles at Costero and Mar Risk Services Ltd, where he contributed to Lloyd’s brokerage operations. Pomroy has also worked in database administration at RSA and gained legal experience at Hanne & Co Solicitors. (Kenneth Araullo, 2/12/2024, Insurance Business, 'Miller hires Michael Pomroy for marine war expansion')Howden Insurance Brokers has appointed Claire McDonagh and Mariana Weigel Munoz as Divisional Directors in its Accident & Health (A&H), Life, and Special Risks team. McDonagh, with over 20 years of experience in broking and underwriting, previously worked at Miller Insurance, Aspire Insurance Advisers, and AIG, specialising in multinational accident and health underwriting. Munoz brings over 25 years of experience, with the last two decades dedicated to A&H products, and joins from Miller Insurance Services, where she specialised in brokering and risk management. (Jonalyn Cueto, 2/12/2024, Insurance Business, 'Howden welcomes new leadership in A&H division')All information provided in this market digest has been gathered from Insurance Business and IDEX Consulting.

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General Insurance newsletter Friday 29th November 2024

Insurance NewsIs gender parity a problem in the insurance profession? - Despite growing awareness, gender parity remains an issue in the insurance industry, with women still underrepresented in senior leadership roles. Key challenges include unconscious bias, limited access to mentorship, and structural barriers such as unequal pay and lack of flexibility. Addressing these issues through inclusive policies, targeted initiatives, and equal opportunities is essential for fostering diversity and retaining female talent in the sector. (IDEX Consulting news, 'Is gender parity a problem in the insurance profession?')The growth of clean energy markets - The transition to clean energy markets is driven by increasing demand for renewable sources and regulatory support. However, the sector faces challenges such as infrastructure limitations and policy uncertainties. Businesses must navigate these complexities to leverage emerging opportunities. While the shift toward cleaner energy opens new avenues, it also presents risks that require careful strategic planning. (IDEX Consulting news, 'The growth of clean energy markets')IDEX instrumental in Noble Insurance acquisitions - IDEX played a key role in facilitating the acquisitions of Noble Insurance by providing end-to-end sales process support. Their expertise helped streamline the acquisition journey, ensuring a smooth transition and maximizing value for all parties involved. The process emphasized strategic alignment and operational efficiency, strengthening Noble Insurance's position in the market. (IDEX Consulting news, 'IDEX instrumental in Noble Insurance acquisitions')What does Consumer Duty mean for the Financial Services sector? - Consumer Duty emphasizes the need for financial services firms to act in the best interest of their customers, ensuring products and services are suitable, fairly priced, and easily accessible. It introduces regulatory obligations to prevent harm, enhance transparency, and improve customer outcomes. This shift will reshape how firms manage their relationships with clients, making consumer protection a top priority. (IDEX Consulting news, 'What does Consumer Duty mean for the Financial Services sector?')Aventum has relocated its UK headquarters to the Monument Building in London, a two-floor office designed to support its growing team and brands, featuring wellness-focused amenities like a coffee shop, fitness facilities, and spaces for collaboration, mentoring, and training, reflecting its “Dare to” culture. (Jonalyn Cueto, 29/11/2024, Insurance Business, 'Aventum opens new headquarters in London's Monument Building')Zurich Resilience Solutions has launched Climate Spotlight, a digital tool leveraging climate data to help organizations manage risks and enhance resilience, addressing the need for actionable insights, according to Global Head Amar Rahman. (Kenneth Araullo, 27/11/2024, Insurance Business, 'Zurich introduces Climate Spotlight for global risk analysis')Marine mutual insurers, including the American Club, are raising rates for 2025, with a 7% hike to address rising claims costs, inflation, and higher-value casualties, reflecting financial stability challenges in a volatile market. (Kenneth Araullo, 27/11/2024, Insurance Business, 'Swedish Club, others to raise P&I rates in 2025')OAK Reinsurance’s Lloyd’s Syndicate 2843 has been granted permission to underwrite business starting Jan. 1, 2025, projecting US$300 million in gross written premium, with an executive team led by CEO Cathal Carr and supported by key roles from Alex Winfield, Kirsten Mitchell-Wallace, Irfan Haq, Harriet James, and Karl Stanley. The syndicate is backed by Bain Capital, Hampden Agencies, and Polo Managing Agency. (Kenneth Araullo, 27/11/2024, Insurance Business, 'OAK Re's Lloyd's Syndicate 2843 set to launch in 2025')AXA UK’s report identifies regions in England most vulnerable to climate risks like flooding and extreme heat, revealing that over half of respondents feel unprepared for potential damage, which could challenge the Labour Government's housing target. The study, developed with Public First, creates a climate risk index based on socioeconomic factors and AXA’s claims data. (Kenneth Araullo, 27/11/2024, Insurance Business, 'Majority of the UK unprepared for climate-related damage – AXA')Specialist broker Ceta has partnered with Open GI to integrate Open GI’s Mobius panel into its platform, expanding the range of insurance products available to brokers. The collaboration supports Ceta’s goal to enhance its systems and services, leveraging its proprietary technology for tailored home and leisure insurance solutions. (Kenneth Araullo, 27/11/2024, Insurance Business, 'Ceta teams up with Open GI for broader digital insurance solutions')Everest has entered the Italian insurance market, operating under the name Everest Insurance (Ireland) DAC, Succursale Italiana, with headquarters in Milan. The expansion is overseen by José Ramón Morales, Head of Southern Europe, and aligns with Everest’s strategic growth in Europe, according to Véronique Brionne, Senior VP of Everest Insurance International®. (Jonalyn Cueto, 27/11/2024, Insurance Business, 'Everest enters Italian insurance market')McGill and Partners, in collaboration with Tokio Marine Kiln and Convex, has launched a trade disruption insurance facility with US$95 million in coverage, utilising Altana’s AI technology to improve underwriting speed and accuracy while expanding coverage for global supply chain risks. (Kenneth Araullo, 26/11/2024, Insurance Business, 'McGill & Partners, TMK, and Convex unveil TDI facility')According to an analysis by S&P Global Ratings, the global reinsurance sector is expected to see strong earnings growth from 2024 to 2026, following robust results in 2023. Key drivers include decade-high investment yields and sustained rate increases in property and property catastrophe lines. Structural changes since early 2023, such as higher attachment points, stricter terms, and the repricing of property catastrophe risks, have strengthened the P/C reinsurance market. (Kenneth Araullo, 25/11/2024, Insurance Business, 'Reinsurance eyes strong growth through 2026 – S&P')Gallagher Re's new research initiative, through its Gallagher Research Centre, is analyzing the growing impact of tropical cyclones on the insurance industry, focusing on how shifting cyclone patterns are influencing risks and losses, with recent North Atlantic hurricanes like Helene and Milton intensifying rapidly due to warmer sea surface temperatures. (Kenneth Araullo, 25/11/2024, Insurance Business, 'Gallagher Re teams up with experts to tackle cyclone risk dynamics')Howden's research on cyber resilience among UK businesses shows that 52% of UK organisations faced at least one cyber-attack in the past five years, with an estimated £44 billion in lost revenue. Large businesses were most targeted (74%), while 49% of SMEs with revenues between £2 million and £50 million were also affected. The most common causes were email compromise (20% of incidents) and data theft (18%), with average losses of £2.1 million and £2 million, respectively. (Kenneth Araullo, 25/11/2024, Insurance Business, 'UK businesses could save billions with better cybersecurity – Howden')Mergers and AcquisitionsDirect Line Insurance Group has rejected a £3.3 billion acquisition bid from Aviva Plc, offering 250 pence per share (58% premium) with a mix of cash and shares, marking the second rebuffed proposal this year. (Kenneth Araullo, 28/11/2024, 'Direct Line Group rejects Aviva's £3.3 billion takeover proposal')Bishop Street Underwriters, a RedBird Capital Partners portfolio company, plans to acquire Landmark Underwriting, a London-based MGA specializing in tailored re/insurance solutions across multiple lines, with operations in the UK, Australia, Canada, and Europe, pending regulatory approval. (Kenneth Araullo, 26/11/2024, Insurance Business, 'Bishop Street to acquire Landmark Underwriting in UK expansion')Verlingue, a subsidiary of the Adelaïde Group, has acquired ProConseils Solutions, a leading French-speaking Swiss insurance broker, as part of its Better Future 28 strategic plan to expand its European presence through local partnerships. The acquisition, which enhances Verlingue’s footprint in Switzerland, aligns with the Adelaïde Group’s goal of becoming the leading family-owned insurance broker in Europe by 2028. ProConseils, founded in 2003, serves over 1,500 companies and local authorities with nearly 25 staff across three offices in the Canton of Vaud. (Jonalyn Cueto, 26/11/2024, Insurance Business, 'Verlingue expands European footprint with acquisition')Crawford & Company has acquired three Spanish loss adjusting businesses—Cortes y Botella, Tecse, and Inarges—boosting its presence in Spain by 80%. The expansion adds offices in Seville, Zaragoza, and Bilbao, complementing existing locations in Valencia and Alicante, and strengthens Crawford’s capabilities in sectors like healthcare, construction, energy, and cyber. (Jonalyn Cueto, 26/11/2024, Insurance Business, 'Crawford & Company swoops for three loss adjusting businesses')MoversTL Dallas Group, with over 50 years of experience in trade credit insurance, has appointed Peter Hodgson as Director of Trade Credit to lead the division, working alongside Simon Hyde, who will retire in 2025 after leading the team for many years. (Jonalyn Cueto, 29/11/2024, Insurance Business, 'TL Dallas appoints new head of trade credit division')The Broker Investment Group has appointed Katie Boots as HR Director; with over 30 years of HR experience in insurance and financial services, she brings expertise in FCA compliance and SMCR regulations. (Jonalyn Cueto, 29/11/2024, Insurance Business, 'The Broker Investment Group names new HR director')Gallagher has appointed Neil Clutterbuck as Chair of Pen Underwriting and Independent Non-Executive Director of Arthur J. Gallagher Holdings (UK) Limited, pending regulatory approval; Clutterbuck, a seasoned insurance leader with nearly 20 years at Allianz and expertise in underwriting, pricing, and regulatory strategies, also serves as a Senior Advisor at Sicsic Advisory. (Jonalyn Cueto, 29/11/2024, Insurance Business, 'Clutterbuck to lead Pen Underwriting as new chair')AXA Commercial has appointed Mike Crane as Director of its SME and Specialty division, effective January 2025, succeeding Deepak Soni; Crane brings extensive industry experience, including over eight years as Managing Director at LV= Broker, where he led key transformations and digital advancements. (Jonalyn Cueto, 28/11/2024, Insurance Business, 'AXA Commercial introduces new director')Pen Underwriting has appointed Paul Wood as Product Lead – yachts for Vessel Protect, aiming to expand into the global yacht insurance market; with over 15 years of marine underwriting experience, including roles at Amphitrite Underwriting, Lloyd’s syndicate MS Amlin, and Yachtinsure, Wood will focus on providing risk assessments and tailored insurance solutions for brokers serving mid-value yacht owners. (Jonalyn Cueto, 28/11/2024, Insurance Business, 'Pen Underwriting expands marine practice with yacht expertise')Allianz Partners has appointed Michael Buttstedt as CFO and board member, effective September 1, 2024; with over 25 years at Allianz, he transitions from CFO of Allianz Italy, having previously held leadership roles as Chief Risk Officer at Allianz Switzerland and Allianz SE. (Kenneth Araullo, 28/11/2024, Insurance Business, 'Michael Buttstedt named CFO of Allianz Partners')Allianz Commercial has appointed Delvin Tillett as Head of Cyber for UK large corporate business, succeeding Michela Moro; Tillett brings 22 years of London market experience, including 12 years in cyber risks, with roles at Marsh and Munich Re. (Jonalyn Cueto, 28/11/2024, Insurance Business, 'Allianz Commercial appoints new head of cyber for UK')Aon Reinsurance Solutions has appointed Sandra Örljung as Account Manager for its Nordic team; with over 13 years at Aon, she brings experience in commercial risk solutions and will focus on supporting reinsurance clients across the Nordic and Baltic regions. (Kenneth Araullo, 28/11/2024, Insurance Business, 'Sandra Örljung joins Aon Reinsurance as Nordic account manager')PartnerRe has appointed Chris Shanahan, currently CEO of North America Life, as CEO of its life and health division, effective Jan. 1, succeeding Marc Archambault; Shanahan brings over 30 years of industry experience, including leadership roles at Hannover Re, Scottish Re, and Lincoln Financial. (Kenneth Araullo, 27/11/2024, Insurance Business, 'Chris Shanahan named CEO of PartnerRe life & health division')Howden Re has appointed Thomas Kroely as Managing Director for Continental Europe, leveraging extensive reinsurance experience, including roles as Client Reinsurance Director at Aon in Paris and Head of France, Belgium, and Luxembourg at Willis Re. Kroely’s career spans over 13 years at Willis Re and earlier roles in reinsurance brokerage, actuarial services, and financial analysis at Brit Insurance and Generali France. He will focus on European expansion and build a local team by 2025. (Kenneth Araullo, 27/11/2024, Insurance Business, 'Thomas Kroely joins Howden Re as MD for Continental Europe')Miller has appointed Konatsu Watanabe as a Broker in its Singapore-based property and casualty team, bringing over eight years of experience, including roles at UIB Asia Reinsurance Brokers and Tokio Marine Insurance Group, with expertise in facultative placements and Japanese business across Asia. (Kenneth Araullo, 27/11/2024, Insurance Business, 'Miller appoints Konatsu Watanabe to Singapore P&C team')Hadron has appointed Colin Johnson as CEO of its international operations, overseeing Hadron UK Insurance Company (HUKIC) and affiliates, with a focus on expanding in the UK and EU delegated authority market. Johnson, formerly CEO of Accredited Insurance (Europe) Limited, led AIEL to write over $1 billion in annual gross written premium across MGAs. (Kenneth Araullo, 27/11/2024, Insurance Business, 'Colin Johnson joins Hadron as international CEO')The Lloyd’s Market Association (LMA) has appointed Vivek Syal, Chief Underwriting Officer at Tokio Marine Kiln, and John Owen, CEO of AXIS Managing Agency, to its board, succeeding Matthew Shaw and Mark Gregory, respectively, as part of leadership transitions. (Jonalyn Cueto, 27/11/2024, Insurance Business, 'Lloyd's Market Association announces two new board members')Coalition has appointed Rob Kanno as Senior Security Support Analyst at its UK security support centre, reporting to Ryan Gregory. Based in Manchester, Kanno brings a strong IT background, transitioning to cybersecurity in 2023 after working as a Cybersecurity Analyst and Consultant at e2e-assure. The company has also expanded in Europe with key hires, including Tine Simonsen as European Head of Insurance in October and Matt Foster as Head of London Market in November. (Jonalyn Cueto, 27/11/2024, Insurance Business, 'Coalition announces new addition to UK cybersecurity team')Arch Insurance International has appointed Jelle Ouwehand as Head of Terrorism, Political Violence, and War, overseeing underwriting for a wide range of risks, including terrorism, SRCC, political violence, and NCBR. Based in London, Ouwehand brings over 15 years of experience, having joined Arch in 2018 after roles at Marsh and in underwriting and broking. (Kenneth Araullo, 26/11/2024, Insurance Business, 'Arch Insurance names Jelle Ouwehand as head of terrorism risks')Nick Mountifield has been appointed Managing Director of Academy Insurance Services, succeeding Richard Beaven, effective immediately. Mountifield, who joined Academy in June 2024 as group COO, has over 24 years of experience in the insurance industry, including senior roles at WTW, Allianz, Flood Re, and PIB. (Jonalyn Cueto, 26/11/2024, Insurance Business, 'Academy Insurance names MD as Richard Beavan steps back')Allianz UK has appointed Isabella Von Mesterhazy as Managing Director of its specialty business, effective Dec. 1, 2024, pending regulatory approval. Von Mesterhazy, a veteran of Allianz since 2011, succeeds Kieran O’Keeffe, and has played a key role in shaping Allianz’s specialty business through various positions, including Director of Trading for Allianz Specialty. (Jonalyn Cueto, 26/11/2024, Insurance Business, 'Allianz UK appoints new specialty MD')Lockton Re has appointed Andy Wakefield as a Senior Broker in its marine and energy division, bringing 34 years of experience in marine and energy reinsurance broking. Wakefield's career includes leadership roles at Aon, Ed. Broking, Willis Re, Aon Benfield, and Tysers, enhancing Lockton Re's capabilities in this specialty area. (Kenneth Araullo, 25/11/2024, Insurance Business, 'Andy Wakefield joins Lockton Re to bolster marine & energy team')All information provided in this market digest has been gathered from Insurance Business and IDEX Consulting.

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Financial Services newsletter Friday 29th November 2024

Financial Services NewsArtificial Intelligence: opportunity or threat? - Artificial Intelligence presents both significant opportunities and challenges. While it offers immense potential for efficiency and innovation, it also raises concerns about job displacement, ethical implications, and security risks. In the insurance and financial sectors, AI can streamline processes and improve decision-making, but it must be managed carefully to avoid unintended consequences. Balancing these factors will determine how AI impacts industries moving forward. (IDEX Consulting news, 'Artificial Intelligence: opportunity or threat?')Flexible working bill: what you need to know - The Flexible Working Bill, effective from 2024, enhances employees’ rights to request flexible working from the start of employment. It allows two requests annually, requires quicker employer responses, and removes the need for justification. Employers must still handle requests reasonably but they now face new obligations to discuss alternatives if a request is denied. These changes are significant for businesses aiming to support a healthy work-life balance while maintaining operational efficiency. (IDEX Consulting news, 'Flexible working bill: what you need to know')2024 FS M&A trends - 2024 has seen strong financial services M&A activity, driven by private equity investments, digital transformation, and regulatory challenges. Trends include heightened interest in fintech and regtech, increased insurance sector deals, and strategic consolidations to boost efficiency and innovation. (IDEX Consulting news, '2024 FS M&A trends')What does Consumer Duty mean for the Financial Services sector? - Consumer Duty emphasises the need for financial services firms to act in the best interest of their customers, ensuring products and services are suitable, fairly priced, and easily accessible. It introduces regulatory obligations to prevent harm, enhance transparency, and improve customer outcomes. This shift will reshape how firms manage their relationships with clients, making consumer protection a top priority. (IDEX Consulting news, 'What does Consumer Duty mean for the Financial Services sector?')A survey by NextWealth, commissioned by Schroders Capital, Franklin Templeton, and Aviva Investors, reveals compliance concerns and platform availability hinder UK advisers from investing in private markets, with only 2% of UK-advised assets allocated compared to 15% globally, and 80% of advisers not planning changes. (Selin Bucak, 7/11/2024, Citywire Wealth Manager, 'Advisers reticent about investing in private markets, survey finds')Industry veteran Ken Davy has warned the CII risks damaging the Financial Planning profession over its dispute with the Personal Finance Society (PFS), suggesting a breakaway PFS could emerge if unresolved. Davy, an honorary CII fellow and founder of SimplyBiz, expressed "increasing sadness" over the conflict, centered on the PFS’s direction and use of funds. (Financial Planning Today, 21/11/2024, 'Industry leader Davy says independent PFS 'possible')Seven firms, including several Financial Planning companies, achieved Corporate Chartered status with the CII in September and October 2024, recognizing their technical competence and commitment to professional standards. The firms include Augustine Limited, Avoca Wealth Management, Better Financial Planning, Park Insurance, Sedulo Wealth Management, SGM Financial Management, and Suttons Independent Financial Advisors. (Financial Planning Today, 7/11/2024, '7 firms achieve Corporate Chartered status')Wealth Club has launched a semi-liquid funds platform, offering UK high-net-worth investors access to private equity, credit, and infrastructure strategies from top managers like Apollo and Schroders, with a £10,000 minimum investment. (John Schaffer, 12/11/2024, Citywire Wealth Manager, 'Wealth Club launches first semi-liquid platform for HNW UK investors')Defined benefit pension transfer values dropped 2% in October to £153,000, their lowest in a year, driven by rising gilt yields amid investor uncertainty over the Chancellor's Budget, according to XPS. (Financial Planning Today, 27/11/2024, 'DB pension transfer values fall following Budget')The FCA's upcoming advice guidance proposals aim to clarify the distinction between advice and guidance, providing consumers with better understanding of their pension and investment choices. Speaking at TheCityUK National Conference, COO Emily Shepperd highlighted efforts to offer targeted support, enhance value for savers, and explore investment options with potentially higher returns and adjusted risk profiles. (Financial Planning Today, 27/11/2024, 'FCA advice shake up to focus on pensions')Complaints to the Financial Ombudsman Service rose over 50% year-on-year to 73,692 between July and September, with personal pensions leading at 1,272 complaints—nearly triple those for stocks and shares ISAs at 489. (Financial Planning Today, 27/11/2024, '50% rise in complaints to Financial Ombudsman'Financial services are set to lead salary growth in 2025, with pay budgets projected to rise by 5%, outpacing the UK median of 3.5%, driven by competition for talent and demand for expertise in risk, compliance, and technology, according to 3R Strategy's Global Salary Planning Report. (Financial Planning Today, 26/11/2024, 'Financial services to top salary growth table')A Phoenix Insights report reveals 64% of self-employed workers aged 60-65 have no private pension savings, amid a surge in self-employment among over-50s and the over-60s now being the fastest-growing group of self-employed workers. (Financial Planning Today, 21/11/2024, 'Most self-employed 'Boomers' hold zero pension savings')The FCA plans to hold round tables with smaller advice firms in early 2025 to discuss introducing cheaper, simplified advice services, aiming to make support more accessible. The regulator seeks to collaborate with firms on testing options for a streamlined, lower-cost advice process. (Financial Planning Today, 18/11/2024, 'FCA to consult small IFA firms over advice shake-up')A survey by Icit Business Intelligence found 85% of finance professionals use AI-powered Financial Planning tools, with two-thirds saving 50–200 hours annually and companies reporting £50,000–£100,000 in yearly savings. 59% said AI improves decision-making through accurate forecasts and real-time analysis. (Financial Planning Today, 7/11/2024, '4 in 5 finance professionals using AI-enabled software')Scottish Widows Platform has integrated ATEB Suitability software to streamline suitability report writing for advisers, automating data transfer and reducing manual input. This follows earlier updates, including CURO for bulk valuations and tools like Voyant and EVPro for financial modelling. (Dan Cooper, 27/11/2024, Money Marketing, 'Scottish Widows Platform adds new software to simplify adviser reporting')Research by NextWealth shows 72% of advisers are ending more client relationships in 2024, with 58% planning increased offboarding in the next year. While 46% feel obligated to clients, many are parting ways with those with simpler needs, like small pension pots or ISAs, to demonstrate fair value. (Lois Vallely, 27/11/2024, Money Marketing, 'Regulation and profitability forcing advisers to offboard clients')Aviva has launched a new Shariah-compliant lifestyle investment strategy, offering a suite of funds and a de-risking option for workplace pensions, designed to mirror its existing strategies and ensure consistency, while adhering to Islamic principles and automating risk management throughout the pension journey. (Financial Planning Today, 19/11/2024, 'Aviva launches new Shariah investment strategy')Mergers and AcquisitionsMKC Wealth, backed by Cabot Square Capital, has acquired Warr & Co Independent Financial Advisers and Halstead Independent Financial Management. Warr & Co brings £70m AUA from 140 households, while Halstead adds £90m AUA from 150 households. Co-founder Jeff Crewdson will retire post-handover, with Steve Prosser and team joining MKC's Stockport office. (Financial Planning Today, 25/11/2024, 'MKC Wealth acquires 2 firms in Greater Manchester')Tavistock has acquired asset manager ABP, adding £3bn in AUM, as it refocuses on providing investment solutions to advice firms and retail clients. ABP, founded in 2017, specialises in outsourced investment for regulated advice businesses. Tavistock will pay £6m upfront, with performance-based payments capped at £18m. (Financial Planning Today, 22/11/2024, 'Tavistock acquires £3bn AUM asset manager ABP')The Penny Group, the largest firm within the Openwork Partnership, has acquired Surrey-based Whiting Financial, adding £90m in assets under advice. This acquisition brings the group’s total assets to £1.2bn, serving 3,500 clients. Whiting Financial, founded in 1987, will continue to operate from its Farnham office while integrating into The Penny Group over the next year. (Financial Planning Today, 22/11/2024, 'Chartered Planner adds £90m AUM with Surrey acquisition')Birmingham-based Margetts Wealth Management has completed a management buy-in, with Directors Ian Butler and James Vickers acquiring equal shares in the firm. The duo, both with over two decades at the firm, join existing owner Kevin Smith. The buy-in ensures the firm’s continued independence and manages over £230m of assets for 350 clients, including business owners and professionals. (Financial Planning Today, 21/11/2024, 'Birmingham adviser completes management buy-in')Succession Wealth, owned by Aviva, has acquired Leeds-based True Wealth Group, adding £1.1bn in assets under advice and marking its third acquisition of 2024. This follows the purchases of DFP Health & Wealth Management and London Wall Partners, collectively bringing £2.2bn in assets.(Financial Planning Today, 18/11/2024, 'Succession Wealth snaps up £1.1bn AUA True Wealth')Beaufort Wealth Management, a Warwickshire-based IFA firm, has completed a management buyout, with Founders Phil Hart and Ravinder Ghuman buying out Co-Founder Ian Adey, who will remain as a Consultant. Established in 2007, the firm provides financial advice to both retail and corporate clients, covering areas such as investments, pensions, employee benefits, and succession planning. (Financial Planning Today, 18/11/2024, 'Beaufort Wealth Management completes MBO')Leicester-based WBR Group, specialising in SSASs and tax advice, has acquired SSAS administrator NM Perris & Co Ltd for an undisclosed sum. The deal adds 200 SSAS schemes and £300m of assets under administration, along with a new office in Bristol. The acquisition includes Brunel Trustees and Omniphi Systems, which will continue to operate under their current names. (Financial Planning Today, 13/11/2024, 'WBR acquires Bristol-based SSAS administrator')Fast-growing wealth manager Advanta Solutions, owner of Chartered Financial Planner Advanta Wealth, has acquired City Financial Planning, adding £800m of assets under management (AUM). With offices in Bath and Exeter, this acquisition marks Advanta's second in 2024 and its ninth overall. CEO Craig Webster highlighted the significance of expanding into Bath and Exeter and praised City Financial Planning's strong client reputation. (Financial Planning Today, 11/11/2024, 'Advanta snaps up £800m AUM south west Planner')Adviser Services Holdings Ltd (ASHL) has agreed to sell its LYNC Wealth Management arm to an affiliate of 7IM, marking its second sell-off in a week after offloading Rockhold Asset Management to 7IM. ASHL, established in 2020, has built independent and restricted advice networks with over 450 advisers and £9bn of assets under advice. The deal, which involves LYNC’s 60 staff including 28 advisers, is subject to regulatory approval, but the cost has not been disclosed. (Financial Planning Today, 6/11/2024, 'ASHL sells off LYNC Wealth Management')One Four Nine Group has acquired Nottingham-based Castlegate Capital, boosting assets to over £1.6bn. This marks the first acquisition for its new One Four Nine Wealth brand and the group’s tenth overall. Castlegate, serving private and corporate clients since 2016, will rebrand to One Four Nine Wealth, expanding the group’s presence in the Midlands. (Financial Planning Today, 6/11/2024, 'One Four Nine acquires Chartered Financial Planner')Brooks Macdonald has acquired Welsh Chartered Financial Planning firm CST Wealth Management for an undisclosed sum, adding £170m in assets under advice and 500 clients, expanding its presence in Wales and supporting growth in Financial Planning. (Financial Planning Today, 5/11/2024, 'Brooks Macdonald snaps up £170m AUM Cardiff Planner')Perspective Financial Group completed nine acquisitions in October’s second half, adding £1bn in assets under advice, 2,500 households, six new office locations, and 48 staff. The deals expanded the group's national footprint with new offices in Preston, Reading, Rotherham, Teesside, Towcester, and Warwick. The acquired firms include Springfield Financial Services (Preston), Millfield Osceola Financial Consultancy (Reading), Hawley & Wood Ltd (Rotherham), Fortitude Financial Planning (Towcester), Warwick Financial Solutions (Warwick), Edgmoor Financial Planners (Manchester), Keith Mason Wealth Management (Canterbury), a client bank in Teesside, and a self-employed adviser buy-out. (Financial Planning Today, 5/11/2024, 'Perspective adds £1bn AUA with 9 acquisitions')7IM has acquired £2bn AUM MPS provider Rockhold Asset Management from national adviser firm ASHL. The deal, for an undisclosed sum, enhances 7IM’s investment management capabilities and is described as a "strategic acquisition." ASHL, with 451 advisers, owns several brands including Sense Network, LYNC Wealth Management, Lyncombe, and the Academy. The acquisition is subject to Financial Conduct Authority approval. (Financial Planning Today, 1/11/2024, '7IM acquires MPS provider Rockhold from ASHL')MoversLuna Investment Management has appointed Paul Finnan as a Senior Investment Manager. Previously with Charles Stanley and Brown Shipley, Finnan brings extensive experience managing portfolios for private clients, charities, and family trusts. (Zachariah Sharif, 27/11/2024, Citywire Wealth Manager, 'Ex-Charles Stanley investment manager joins Manchester boutique Luna')Atomos has appointed Joshua Gennet as Investment Head, succeeding Haig Bathgate, who is joining Callanish Capital. Gennet brings 25 years of experience, including roles at Morgan Stanley, BNP Paribas, MSCI, and co-founding Ethical Capital Opportunity Advisors. Rowan Stone, a key figure in Atomos’s sustainable team, has been promoted to Investment Director to support Gennet. Bathgate, who joined in 2022 from 7IM and led the implementation of the WTW investment process, will depart at year-end after completing a five-year growth plan. (Dylan Lobo, 27/11/2024, Citywire Wealth Manager, 'Exclusive: Atomos names new investment boss as Bathgate joins boutique')Christopher Morris, Head of Financial Planning Policy at CISI, will join the FPSB Chief Executive's Committee as an at-large representative for a three-year term starting January 1. Andrea Middel, a founding Partner of DURF Financieel Planners and FPSB Board member since 2019, will become FPSB Board Chair on April 1, succeeding Ana Cláudia Akie Utumi. Middel, a past Financial Planner of the Year in the Netherlands, has chaired the FPSB Professional Standards Committee and served on the FFP Board. Caroline Dabu will serve as 2025 Board chairperson-elect, and Emer Kirk will continue as Chairperson of the FPSB European Forum for another two years. (Financial Planning Today, 20/11/2024, 'CISI’s Morris joins global FPSB leadership team')@sipp has appointed Josh Legg as Business Development Manager to support advisers in the South West with SIPP, SSAS, and commercial property. Legg, with 12 years’ experience, joins from Curtis Banks. Steve Lancaster has been promoted to Chief Operating Officer, overseeing sales, operations, and finance, while Tercia Grindlay steps up as Finance Manager. (Financial Planning Today, 14/11/2024, 'SIPP provider adds SW adviser support specialist')Perspective has appointed Harriet Griffin as Chief Operating Officer, a new role for the firm. With 16 years’ experience at firms like Kingswood and Charles Stanley, Griffin brings expertise in operations, change management, and technology strategy. A Chartered CISI member with an MBA from Cranfield University, she joins the board alongside CEO Ian Wilkinson, CFO David Hesketh, CRO Julie Hepworth, and Head of M&A Sam Ward. (Financial Planning Today, 11/11/2024, 'Perspective appoints new chief operating officer')The Association of Member-Directed Pension Schemes (AMPS) has appointed Debbie Seaton of Seabridge SSAS as its new Chair, succeeding Andrew Phipps. Jon Cuin of Barnett Waddingham will serve as Honorary Secretary, while Tasneem Ul-Haq of Aviva remains Treasurer and Joy West of Hartsfield Trustee Services stays as Membership Secretary. (Financial Planning Today, 11/11/2024, 'AMPS appoints Debbie Seaton as chair')Personal Finance Society interim Chief Executive Don MacIntyre has stepped down after more than two years, having joined in August 2022 to help evolve the PFS's working practices and governance. MacIntyre, who previously served as interim CEO of the UK Cyber Security Council, was unable to secure a permanent CEO, resulting in a 27-month tenure. (Financial Planning Today, 5/11/2024, 'Don MacIntyre steps down as interim PFS CEO')Quilter Cheviot has appointed Colin Rowe, former Managing Director at 7IM, as Head of Advice, pending regulatory approval. With over 20 years of leadership experience in wealth management, Rowe previously served as Managing Director of private clients at Close Brothers Asset Management. (Financial Planning Today, 4/11/2024, 'Quilter Cheviot poaches new head of advice from 7IM')Belmayne, the North Derbyshire firm of Chartered Financial Planners, has appointed experienced Financial Planner Nick Pike to its team in Dronfield. With 25 years in the industry, Pike has a background in teaching, accounting, and investment, specialising in clients with complex financial needs, including older individuals who have come into money. He is the third hire at Belmayne in recent months. (Financial Planning Today, 1/11/2024, 'Belmayne adds to adviser team')Evelyn Partners has appointed Kate Morrissey as Head of Asset Allocation, a newly created role within its central investment team. Morrissey joins from HSBC, where she managed £16bn as head of world selection and global strategy funds over a 23-year career. (Tom Browne, 26/11/2024, Money Marketing, 'Evelyn Partners appoints Kate Morrissey as head of asset allocation')All information provided in this market digest has been gathered from Citywire Wealth Manager, Financial Planning Today, Money Marketing, and IDEX Consulting.

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General Insurance newsletter Friday 22nd November 2024

Insurance NewsInsurer and MGA 2024 reflections - The insurance and MGA market has been heavily influenced by technological developments and predictive analytics, which have helped to streamline claims and underwriting processes. MGAs are leveraging niche specialisations and innovation to drive growth, while sustainability and ESG strategies are becoming central to operations. Retaining talent remains challenging, making diversity, inclusivity, and strong EVP crucial for success. (IDEX Consulting news, 'Insurer and MGA 2024 reflections')Counter offers: what you need to consider - Before accepting a counter-offer, carefully assess if it truly addresses your reasons for leaving and aligns with your long-term goals. Staying with a current employer can often lead to diminished trust or career stagnation. 78% of employers believe candidates become passive jobseekers post a counter-offer. Consider whether the offer reflects your value or if it's a short-term fix. (IDEX Consulting news, 'Counter offers: what you need to consider')Integrating cultures during an acquisition: expert insights - Successful cultural integration is vital during an M&A deal, employee buy in and engagement must be taken seriously to minimise dissatisfaction and productivity loss. Key strategies include open communication, aligning values early, and involving leadership from both sides to build trust and collaboration. Emphasising shared goals while respecting individual identities helps to create a cohesive culture that supports long-term success. (IDEX Consulting news, 'Integrating cultures during an acquisition: expert insights')Risk and Compliance market trends - Changing Consumer Duty requirements, increased customer demands, cyber risks and mandatory ESG reporting have all added pressure and costs to insurers and brokers this year. Firms are leveraging advanced technology to improve compliance and risk management while facing challenges like cyber threats and new regulations. Staying adaptable and proactive is essential for success in this ever-changing landscape. (IDEX Consulting news, 'Risk and compliance market trends')Lockton Re partnered with Verisk to develop insurance and reinsurance products for the agricultural sector, utilising Verisk’s risk modelling tools to assess climate change impacts and optimise pricing and profitability in the US crop insurance market. (Kenneth Araullo, 21/11/2024, Insurance Business, 'Lockton Re and Verisk partner for crop re/insurance solutions')Placing Platform Limited (PPL) has launched a new underwriter dashboard with enhanced categorisation, search capabilities, and personalised views to streamline task management and improve efficiency for individuals and teams. (Jonalyn Cueto, 21/11/2024, Insurance Business, 'PPL unveils new underwriter dashboard')Rokstone has launched Rokstone Parametric, a new insurance product in partnership with NormanMax Lloyd’s Syndicate 3939, offering a $10M global facility for earthquake, hurricane, and typhoon risks, with flood coverage expected in 2025 and projected GWP of $25M in 2024 and $50M in 2025. (Kenneth Araullo, 20/11/2024, Insurance Business, 'Rokstone and NormanMax debut global parametric insurance product')Ecclesiastical Insurance has maintained its top position in the Fairer Finance Home Insurance league table for the 20th consecutive time, ranking first out of 47 providers and retaining its Gold Ribbon status, while Saga, Direct Line, AA, and Co-operative Insurance earned Gold, Silver, and Bronze Ribbons, respectively. (Kenneth Araullo, 20/11/2024, Insurance Business, 'Ecclesiastical tops Fairer Finance rankings for 20th consecutive time')Carrow Insurance, a newly established MGA headquartered in Ireland, has launched in the European mid-market insurance sector, offering customised products in warranty, accident and health, and income and payment protection. Led by Ronan Conboy, former CEO of AmTrust International, and backed by Mission Underwriters via the Accelerant Risk Exchange, Carrow aims to serve 27 European countries with A-rated capacity and long-term partnerships. (Jonayln Cueto, 20/11/2024, Insurance Business, 'Carrow Insurance enters European market')Novidea has relocated to a larger office in London’s financial district, in the iconic Willis building near Lloyd’s of London, to accommodate its expanding team and support its growth strategy. CEO Roi Agababa emphasized the company’s rapid progress and the growing global demand for digital transformation in the insurance sector. (Jonalyn Cueto, 20/11/2024, Insurance Business, 'Novidea moves to iconic Willis building')Aqueous Underwriting has secured a three-year syndicated capacity agreement with Allied World and Sompo, enabling expansion of its SME product offerings. The new arrangement replaces Aqueous's partnership with Allianz for SME package business, which will transition through 2024, while continuing collaboration on other lines. Aqueous specializes in insurance solutions for SMEs in sectors like food, hospitality, leisure, and hotels. (Jonalyn Cueto, 20/11/2024, Insurance Business, 'Aqueous partners with Allied World and Sompo')McKinsey's Global Insurance Report 2025 highlights the volatile landscape of economic uncertainty, geopolitical tensions, and shifting trade patterns, while identifying growth opportunities in personal and commercial P&C, and life insurance. Personal lines P&C premiums grew by 9.5% in 2022–2023, driven by rate increases in mature markets, though gross written premiums as a share of GDP remained below pre-pandemic levels and coverage gaps between mature and emerging economies widened. (Kenneth Araullo, 19/11/2024, Insurance Business, 'Natural disaster risks drive need for P&C innovation – McKinsey')MS Reinsurance reported strong growth in the first half of 2024, with profit after tax reaching £128 million (US$128 million), up £71 million year-on-year, and insurance service profit rising to £138 million (US$138 million), an increase of £41 million, reflecting business expansion and favourable market conditions under IFRS 17. (Kenneth Araullo, 19/11/2024, Insurance Business, 'MS Reinsurance achieves massive growth in net premium earned')Tokio Marine Holdings raised its full-year adjusted net income forecast to ¥1.04 trillion (US$6.71 billion), up by ¥40 billion (US$258 million), driven by strong underwriting, international growth, and equity sales, with first-half adjusted net income reaching ¥771.2 billion (US$4.98 billion), 77% of the original forecast. (Kenneth Araullo, 19/11/2024, Insurance Business, 'Tokio Marine raises 2024 net income forecast')Helios Underwriting plc forecasts a decrease in its capacity fund value to £75 million (US$95 million) by the end of 2024, down from £82.4 million in 2023, driven by a dip in Lloyd's auction prices and changes in its freehold portfolio, though its tangible assets showed growth during the first nine months of the year. (Kenneth Araullo, 19/11/2024, Insurance Business, 'Helios Underwriting projects fund capacity decline in 2024')MS Amlin Underwriting Limited reported strong financial performance for the first half of 2024, with insurance service profits rising to £116 million, up £71 million year-on-year, and net profit after tax increasing to £87 million, driven by robust underwriting, portfolio expansion, improved investment returns, and lower discounting volatility. (Kenneth Araullo, 19/11/2024, Insurance Business, 'MS Amlin posts rise in net premiums earned')Allianz has launched the "Power of Unity" program to address societal trust erosion and promote confidence in a stable economic future, responding to growing polarization and social unrest worldwide. Allianz Research’s 2024 Social Resilience Index highlighted the weakening of democratic institutions and social cohesion, with 69% of stakeholders expressing a lack of confidence in political leadership’s ability to address key issues. (Rod Bolivar, 19/11/2024, Insurance Business, 'Allianz battles polarisation with global initiative')A new report by the Lloyd’s Market Association (LMA) and Oxbow Partners, titled The Growth of Enhanced Underwriting in the Lloyd’s Market: The New Normal?, predicts substantial growth in enhanced underwriting over the next decade. Based on research with 85 senior leaders and 55 organizations representing 77% of Lloyd’s 2023 GWP, the report explores the implementation, opportunities, risks, and capabilities required for this evolving practice. (Jonalyn Cueto, 19/11/2024, Insurance Business, 'Lloyd's embraces enhanced underwriting – report')Swiss Re has revised its economic outlook, noting strong US Q3 GDP growth of 2.8% and raising its 2024 US growth forecast to 2.8%, with a 2025 forecast of 2.2%. The report highlights potential impacts of fiscal and trade policies, including a shift toward looser fiscal policy in the US post-elections, which could boost growth but also raise concerns about debt sustainability, while protectionist policies may limit some growth benefits. (Kenneth Araullo, 18/11/2024, Insurance Business, 'US growth outpacing global markets in 2024 – Swiss Re')HDI Global reported strong growth for the first nine months of the year, with a 11% increase in revenue to €7.3 billion and operating profit rising to €479 million. The combined ratio improved to 90.5%. Dr. Edgar Puls credited the performance to robust client and broker relationships and the company’s agility in addressing changing risk environments. (Kenneth Araullo, 18/11/2024, Insurance Business, 'HDI Global posts revenue growth and improved profitability')RSA Insurance has launched a new professional indemnity (PI) insurance product for businesses and consultants advising on sustainability, net zero, and climate-related strategies. The product, the first of its kind in the UK, addresses the growing demand for climate professionals and offers protection against claims of inadequate advice, design, or services. (Kenneth Araullo, 18/11/2024, Insurance Business, 'RSA launches UK's first PI insurance for climate consultants')Mergers and AcquisitionsOptio Group has completed its acquisition of Netherlands and Brussels-based MGA Den Hartigh Beheer & Exploitatie BV, enhancing its European presence with a century-old, tech-driven provider of property, casualty, marine, and high-net-worth insurance, led by CEO Jan Den Hartigh. (Kenneth Araullo, 21/11/2024, Insurance Business, 'Optio finalizes acquisition of Dutch MGA Den Hartigh')Marsh McLennan's reinsurance specialist, Guy Carpenter, will acquire the remaining 51.5% of shares in Athens-based Carpenter Turner, with the transaction expected to close by year-end. Alexander Turner, CEO of Carpenter Turner, will become CEO of Guy Carpenter Greece, overseeing reinsurance operations in Greece and Cyprus, and collaborating with Marsh McLennan’s other businesses to support regional clients. (Kenneth Araullo, 19/11/2024, Insurance Business, 'Guy Carpenter Greece to launch after full acquisition')MoversMarkel appointed David Pressman as Senior Underwriter for marine cargo. With 11 years of industry experience, he previously specialized in marine cargo underwriting at AEGIS London and MS Amlin, where he progressed from Binding Authority Technician to Marine Cargo Underwriter. (Jonalyn Cueto, 22/11/2024, Insurance Business, 'Markel appoints new senior underwriter')Reassured appointed Philip Byrne as Chief Risk and Compliance Officer. With extensive experience in risk and compliance, Byrne previously served as Head of Compliance at Markerstudy Group and Director of Risk and Compliance at BGL Insurance. He will focus on strengthening governance and risk management strategies while ensuring positive customer outcomes and enhancing digital capabilities. (Jonalyn Cueto, 22/11/2024, Insurance Business, 'Reassured appoints new chief risk and compliance officer')Aon appointed Magnus Roe as Global Chief Data and Analytics Officer and Mona Barnes as Global Chief Claims Officer. Roe, based in Singapore, will enhance Aon’s analytics capabilities. He previously served as Head of Strategy for risk analytics and global COO for reinsurance analytics, where he advanced analytical tools and supported client solutions. Barnes will oversee global claims operations, leveraging her experience from Swiss Re and Chubb. She joined Aon in 2023, managing UK and global broking centre claims operations. (Roxanne Libatique, 21/11/2024, Insurance Business, 'Aon drives data and analytics transformation with global appointment')RSA Luxembourg announces leadership changes as Lynn O’Leary transitions to President of Intact's US Specialty Lines in Q1 2025, succeeded by Nadia Cote, an experienced insurance executive with over 25 years in senior roles across Europe and Canada, as CEO Europe (pending regulatory approval), with interim leadership by Louis Marcotte to ensure a smooth handover. (Jonalyn Cueto, 21/11/2024, Insurance Business, 'RSA announces leadership transition')Aon has appointed Brian Gillin as Managing Director of its cyber reinsurance solutions team, leveraging his decade of experience in cyber risk advisory and leadership roles at Aon, and Adam Neverton as Global Head of Strategic Broking for professions, drawing on 30+ years of expertise to develop tailored risk solutions for professional services clients. (Kenneth Araullo, 20/11/2024, Insurance Business, 'Aon Names Brian Gillin managing director for cyber reinsurance')Delos Insurance Solutions has appointed Gloria Hendrickson as Head of Reinsurance, leveraging her expertise in catastrophe modelling and underwriting from leadership roles at NormanMax Insurance Holdings and New Paradigm Underwriters. (Kenneth Araullo, 20/11/2024, Insurance Business, 'Delos Insurance appoints Gloria Hendrickson as head of reinsurance')Crawford & Company has appointed Paul Lofkin as President of UK and Ireland operations, effective December 1, 2024. With 22 years of insurance experience, Lofkin advanced to the UK leadership team in 2023 as Head of Platforms, overseeing claims solutions, repair services, and driving industry innovation, including creating the UK’s first dedicated rural adjusting team. (Kenneth Araullo, 20/11/2024, Insurance Business, 'Paul Lofkin named president of Crawford UK & Ireland operations')HDI Global has appointed Tom Major as Chief Claims Officer, effective February 7, 2025. With 12 years at Allianz, including his current role as UK Head of Claims overseeing nine business lines, Major brings extensive underwriting and claims expertise and will report to Stephanie Ogden, CEO for the UK and Ireland. (Kenneth Araullo, 20/11/2024, Insurance Business, 'Insurance hires: HDI Global, Optio Group, Acrisure London')Optio Group has appointed Oliver Sheppard as Head of Financial Lines, effective immediately. With nearly two decades of experience in financial lines across Lloyd’s and company markets, Sheppard will oversee the professional indemnity portfolio, profit and loss, and market capacity. He previously served as Head of UK and International professional indemnity at Munitus Insurance and has held senior roles at Allianz, AIG, RSA, and Zurich. (Kenneth Araullo, 20/11/2024, Insurance Business, 'Insurance hires: HDI Global, Optio Group, Acrisure London')Acrisure London Wholesale has promoted Tom Quy to Managing Director, effective January 1, 2025, succeeding John Sutton, who will transition to a consultancy role. Quy, with over 17 years of experience, has been with ALW since 2019, where he helped develop the cyber wholesale practice and establish Acrisure Re’s cyber reinsurance division. Quy’s career spans over 17 years, with previous roles at Miller, Paragon International, and THB Group. (Kenneth Araullo, 20/11/2024, Insurance Business, 'Insurance hires: HDI Global, Optio Group, Acrisure London')JM Glendinning Real Estate has expanded into London with a new office at 1 Bedford Row, led by Somerset Akerman and Jon-Paul Matyus-Flynn, both with extensive experience from Estates Insurance Group. Akerman spent five years at EIG, transitioning from managing personal and commercial lines to focusing on real estate business development. Matyus-Flynn brings a diverse background in motor, high-net-worth home insurance, and commercial portfolios before specializing in real estate business development at EIG, where he helped build client bases, particularly in real estate. (Jonayln Cueto, 20/11/2024, Insurance Business, 'JM Glendinning opens London office')Coalition appointed Matt Foster as Head of London Markets, where he will lead underwriting for complex risks, reporting to Stephen Wares. Foster brings eight years of cyber underwriting experience at Munich Re, where he was promoted to Senior Cyber Underwriter in 2023. The move follows Tom Draper's promotion to UK Managing Director, overseeing over 30 employees and reporting to Kyle Bryant. Draper has a decade of experience in cyber insurance, previously with Willis, Lockton, and Gallagher. (Jonalyn Cueto, 19/11/2024, Insurance Business, 'Coalition appoints new head of London Markets')Steven J. Bensinger has been appointed as a Non-Executive Director to the group board of Accredited Insurance Program Management, effective Dec. 9, and will serve as Chair of the audit committee. With over 45 years in the global insurance sector, Bensinger has held senior roles at AIG, The Hanover Insurance Group, and Aon, among others. He currently serves on several boards, including Ariel Re, Kinsale Capital Group, and Clearcover Insurance, and is a Senior Advisor at Howden Re. (Kenneth Araullo, 18/11/2024, Insurance Business, 'Steven Bensinger joins Accredited Insurance as non-exec director')Allianz Commercial has announced key management changes within Allianz Global Corporate & Specialty SE (AGCS SE). Tracy Ryan will leave her role as Head of Allianz Commercial in the Americas at the end of 2024 to become CEO of the National Council on Compensation Insurance. Shanil Williams, currently Chief Underwriting Officer, will assume Ryan's responsibilities in early 2025. Vanessa Maxwell will join the AGCS SE Board as Chief Underwriting Officer, succeeding Williams, with Jarrod Schlesinger appointed Global Head of Financial Lines and Cyber. Jenise Klein will become Chief Underwriting Officer for North America. Additionally, Gabrielle Durisch has been promoted to Chief Sustainability Officer. (Rod Bolivar, 18/11/2024, Insurance Business, 'Allianz Commercial announces management changes for key roles')Hymans Robertson has appointed Rohan Murdeshwar and Harsh Jaitak as senior consultants to strengthen its general insurance team, supporting the growth of its insurance and financial services practice. Murdeshwar, with over 10 years of experience, previously worked at PWC and WTW, while Jaitak brings expertise in risk management and reinsurance from roles at KPMG, Kuwait Reinsurance, and WTW. (Jonalyn Cueto, 18/11/2024, Insurance Business, 'Hymans Robertson expands GI team with WTW alumni')FM Global has appointed Randy Hodge as Chief Operating Officer, effective Dec. 1, 2024, succeeding Bret Ahnell, who retires in March 2025 after nearly 40 years. With over 30 years at FM, Hodge has held roles including Field Engineer, Operations Manager, EVP of staff insurance operations, and Chief Underwriting Officer. (Jonalyn Cueto, 18/11/2024, Insurance Business, 'FM appoints new chief operating officer')All information provided in this market digest has been gathered from Insurance Business and IDEX Consulting.

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Reports of non-financial misconduct rise dramatically

Reports of non-financial misconduct have risen significantly since 2021, with bullying and harassment, and discrimination listed as key concerns. “Bullying and harassment were identified as significant issues, making up 26% of reported cases, while discrimination accounted for 23% of the reports” (Financial News: FCA’s survey reveals rise in misconduct reports). The FCA is said to have “found a shocking prevalence of sexual harassment and bullying” as well as “a culture which is holding back women” (Financial Times: Bullying and harassment claims rise across City, regulator finds).On the flip side, these increased reports could also suggest firmer internal guidelines on ethical workplace practices raising acceptability standards, and the willingness of employees to report negative behaviours.The published review precedes the FCA’s upcoming policy on non-financial misconduct, which is likely to introduce stricter standards for banks and other firms across the financial services sector (The Banker: Reports of non-financial misconduct on the rise says FCA).“Earlier this year the FCA asked more than 1000 regulated financial firms including banks, insurers, brokers and market intermediaries, to report all non-financial misconduct. Worryingly incidents across all sectors grew by more than two thirds. The current market is very competitive, and culture is a deciding factor for many professionals when accepting or rejecting a job, in some cases more important than the responsibilities of the role! By being transparent about your culture and taking a strong stand on conduct and company values, you’re more likely to attract top tier talent that your competition won’t have access to. The most successful companies partner with recruiters who have the expertise to promote your company values and brand, ensuring the right message lands well in the market. Not only does this help you hire the best talent, but also helps your brand stay top of mind for professionals,” says Jack Johnson, Business Director for Risk and Compliance at IDEX Consulting.If you’re looking to hire top talent or looking for a new role across the financial services industry, especially in the Risk & Compliance market, contact Jack Johnson who will be happy to provide specialist advice.The concerning results paired with the upcoming FCA policy on non-financial misconduct gives firms a crucial reason to proactively raise internal standards and strengthen practices. Findings from the review are offering firms the chance to improve their workplace culture in ways that strengthens accountability and integrity whilst reducing risks associated with inadequate practices.Results from the survey highlight that“92% of firms state that they would highlight examples of non-financial misconduct in a regulatory reference”. A following 87% stated they would go as far as to update a reference following an incident (Latham & Watkins: FCA Publishes Results of Non-Financial Misconduct Survey).Yet, findings from the same investigation confirm that incidents of bullying and other forms of non-financial misconduct in the UK’s finance sector have increased by over 67% in the last three years (Financial Times: Bullying and harassment claims rise across City, regulator finds).The difficulty of definitionIt is important to remember that the nature of this topic presents some challenges and grey areas. The scope of non-financial misconduct ranges from violent assault to bringing pets into the workspace (Financial Times: Bullying and harassment claims rise across City, regulator finds). Given the element of subjectiveness that can exist across the category, particularly in regard to less extreme incidents, some records may be unverified with others containing possible factual errors.The FCA are also facing the challenge of defining what the rise in reports suggests when tailoring an actionable plan for the industry. The regulatory body has expressed concern that the data could be suggesting that firms might be failing to meet expectations in suitable governance and management of non-financial misconduct, including out of date whistleblowing policies (Latham &Watkins: FCA Publishes Results of Non-Financial Misconduct Survey). Uncertainty also arises when factoring in the possibility that an increase in reports could equally imply a positive workplace culture where people feel empowered to speak up. Data therefore always needs to be interpreted with caution.Evolving attitudes towards the workplace environment are another factor to consider during the debate of a ‘good’ vs ‘bad’ culture in light of increased misconduct reports. Improved internal systems have allowed, and even regularly prompted, employees to share their experiences anonymously. Recent years have also seen a significant shift in awareness and education on appropriate workplace behaviour (Travers Smith: FCA findings on non-financial misconduct). Even with a hypothetical absence of formal regulatory pressure, society’s developments and standards on what should be tolerated in corporate culture is enough to equip employees with appropriate information to recognise and challenge misconduct. OutcomesReports show that “disciplinary action or similar was taken in 43% of cases overall” (Latham & Watkins: FCA Publishes Results of Non-Financial Misconduct Survey). When comparing sectors, insurance companies took disciplinary action in 63% of cases, with 21% of incidents not being upheld, whilst wholesale banks didn’t uphold 45% of instances.The most common forms of misconduct which resulted in disciplinary action were behaviours that included violence, intimidation and sexual harassment. Repercussions involved a written warning, training or coaching, with disciplinary action hardly ever taking into consideration changes to remuneration. Although some cases involving sexual harassment, illegal drugs and violence were likely to result in dismissal.What firms should be aware of Irrespective of the challenges around the topic, the FCA expects firms to assess their internal processes against the latest findings, develop strategies for continued improvement in the workplace, and guarantee that standards for non-financial misconduct mitigation and management are upheld.In addition, to avoiding harmful or unlawful practices, regulatory compliance helps firms build healthy and inclusive cultures, retain talent, protect their reputation and safeguard revenue. Reputational damage, especially in relation to bullying and harassment severely impacts investor interest, results in revenue loss and serious legal consequences. What to do nextThis year marks the first time the regulator has conducted this type of investigation, aiming to enhance transparency across the sector. The FCA has emphasised its expectation for firms to proactively implement processes to improve workplace culture, drive the right behaviours from senior leadership and do everything they can to embed supportive environments. Despite onus on firms to drive changes from board level, 38% of firms reported that boards and board-level committees did not receive information of non-financial misconduct (A-Team: FCA Survey Reveals Gaps in Governance and Policy on Non-Financial Misconduct).In addition, many larger firms expressed concern that they lacked a formal governance structure to oversee disciplinary actions.FCA’sExecutive Director of Markets and International Sarah Pritchard, emphasised the need for firms to use the information at hand to assess their own cultures and processes, stressing the importance of healthy workplace culture and warning the risks associated with neglecting non-financial misconduct (FCA: FCA Publishes Results of Non-Financial Misconduct Survey).The outcome of this investigation has revealed notable gaps in policies and procedures for firms across the financial services insurance sectors, especially around out of date practices which are failing to meet FCA guidelines. The FCA believes this review will drive ongoing improvements in culture, although they will not be issuing new best practice recommendations at this time. Instead, the regulator expects firms to use the data provided to effectively detect and address issues. Full compliance with existing regulatory responsibilities and reporting requirements is mandatory with any short-fallsset to result in negative consequences for firms (FCA: Culture and Non-Financial Misconduct Survey – Findings). For more information on the data shared in this article or if you’re looking for support with your hiring strategy speak to a consultant who can assist in providing market intelligence, and a range of hiring solutions.Sources:A-Team: FCA Survey Reveals Gaps in Governance and Policy on Non-Financial MisconductFCA: Culture and Non-Financial Misconduct Survey – FindingsFCA: FCA Publishes Results of Non-Financial Misconduct SurveyFinancial Times: Bullying and harassment claims rise across City, regulator findsLatham & Watkins: FCA Publishes Results of Non-Financial Misconduct SurveyThe Banker: Reports of non-financial misconduct on the rise says FCATravers Smith: FCA findings on non-financial misconduct

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