General Insurance Newsletter Friday 25th November 2022

Insurance News

A Financial Conduct Authority ruling which could trigger Professional Indemnity claims from Independent Financial Advisers is expected at any moment. The regulator has finished a consultation on compensation for British Steel Pensions Scheme members. The FCA has said it will give a decision on whether there should be a compensation scheme for British steel pensioners by the end of the year. (Saxon East, 24/11/2022, Insurance Age, 'Brokers await imminent FCA ruling which is expected to trigger claims from IFAs')

In further news...The Financial Conduct Authority’s Sheldon Mills has urged the industry to do more on ensuring diverse representation and inclusive cultures. In a speech at the Association of British Insurers’ Diversity, Equity and Inclusion conference, he praised the ABI for releasing its Blueprint and confirmed the FCA’s ‘Understanding approaches to D&I in the FS industry‘ report will be published shortly. (Sophie Locke-Cooper, 23/11/2022, Insurance Age, 'Sheldon Mills insists that ‘we must not lose sight’ on diversity and inclusion')

The Financial Services Compensation Scheme has kept the 2022/23 levy for brokers at £5.3m as it revealed the bill for 2023/24 is poised to be the same again. The FSCS set out that no additional levy is currently expected this year. In May the compensation scheme cut brokers’ contribution for the current financial year from £67.7m to £5.3m as it cancelled a planned retail pool contribution of £59m. (Emmanuel Kenning, 25/11/2022, Insurance Age, 'FSCS maintains broker levy at £5.3m and forecasts no increase for 2023/24')

Kingsbridge has launched a wholesale product which includes indemnity and liabilities packages for SMEs and contractors. The product was first revealed at the Insurance Age Broker Expo earlier this month and is underwritten by Zurich and QBE. Commenting on the product, Senior Wholesale Manager, Charlie Robinson said: “We have made our indemnity & liabilities packages for contractor and SMEs available to the broker community. We also provide cover in the perceived ‘hard to place’ industries, such as offshore, oil and gas, construction, and engineering, which can be a great asset to any new business strategy." (Sophie Locke-Cooper, 24/11/2022, Insurance Age, 'Kingsbridge teams up with QBE and Zurich to launch wholesale product')

Markel International is to merge its professional and financial risks division with its recently expanded cyber team. It said the decision to merge the two divisions is part of the wholesale business’ efforts to “simplify the trading experience for its broking partners and make its product offerings to insureds as innovative, comprehensive, and relevant as possible, in a fast-moving and increasingly complex risk environment”.(Insurance Age Reporter, 24/11/2022, Insurance Age, 'Markel merges cyber and financial lines divisions')

Julia Graham, CEO at Airmic, has stressed the harsh market has given insurers and brokers new challenges and that difficult times are ahead. Graham warned that catastrophes have become more frequent since 2019 and that ‘once in a generation’ events have started to happen with greater frequency. (Sophie Locke-Cooper, 23/11/2022, Insurance Age, 'Airmic CEO warns industry of challenging times ahead')

Marsh has revealed that it has placed insurance for the first space rocket launch from UK soil, arranging it on behalf of Space Forge and placing it with Beazley to cover risk of loss to the Forgestar payload. It detailed that the launch – which is expected to take place this year at Spaceport Cornwall, one of the UK’s first domestic spaceports – will carry, among other satellites, Space Forge’s Forgestar-0 prototype space factory. (Emmanuel Kenning, 23/11/2022, Insurance Age, 'Marsh blasts off with insurance for first space rocket launch from UK soil')

Ardonagh’s free cashflow has deteriorated to £7.8m for the first nine months of this year as it pays off interest from its £2.68bn net debts. The consolidator posted free cashflow of £43.8m in the same period last year, meaning its position has deteriorated by £36m. (Saxon East, 22/11/2022, Insurance Age, 'Ardonagh free cashflow declines to £7.8m as debt payments rise')

The Association of British Insurers has published a new Blueprint which sets out a multi-year strategy and plan to improve diversity, equity and inclusion across the insurance and long-term savings industry. The Blueprint was launched at the trade body’s DEI Summit and according to the ABI sets out DEI priority areas for the association to lead on good practice and open up opportunities for collaboration with experts. (Sophie Locke-Cooper, 22/11/2022, Insurance Age, 'ABI publishes new Blueprint to help improve diversity and inclusion')

In line with the Financial Conduct Authority’s (FCA) regulatory reform, the Consumer Duty, the Personal Finance Society (PFS) has published a good practice guide for personal finance firms. “In many ways, Financial Advisers have been at the forefront of care for their clients – there is no greater discipline for a professional than sitting in front of a client for an annual review and explaining how their investments have performed,” said PFS Director of Policy and Public Affairs Dr. Matthew Connell. (Lyle Adriano, 24/11/2022, Insurance Business Mag UK, 'PFS releases good practice guide for financial advisers')

Ireland-based Zurich Insurance Plc (ZIP), which is the European Economic Area holding company of Switzerland-headquartered Zurich Insurance Group, will be moved to Germany – affecting 110 jobs, the options for which include redundancy. Alison Martin, the insurer’s Chief Executive for EMEA (Europe, Middle East, and Africa), revealed in an interview with Reuters, saying that ZIP staff in Dublin will be consulted about joining the German transfer, moving within the global group, or being made redundant. (Terry, Gangcuangco, 24/11/2022, Insurance Business Mag UK, 'Zurich’s Brexit move to impact over 100 jobs')

Lloyd’s has moved to make access to its applications more secure by updating the Market’s password policy and enabling multi-factor authentication (MFA). In its announcement, Lloyd’s said: “For the purpose of authenticating users, we will enable MFA for all Lloyd’s applications accessed by the Market [and] all Lloyd’s applications hosted by LIMOSS Single Sign On. In addition to this, we will be updating our password policy for all of our applications.” (Terry, Gangcuangco, 24/11/2022, Insurance Business Mag UK, 'Lloyd’s enhances login security')

Lois Cartridge, an insurance Account Handler, has been convicted for exaggerating the severity of her whiplash claim after a minor car accident. She received a suspended prison sentence and was ordered to pay over £20,000. Cartridge was prosecuted by LV= General Insurance (LV= GI), represented by solicitors from HF. According to the lawyers, Cartridge claimed to have suffered whiplash injuries in a car accident in November 2018, as she rode in the vehicle’s back seat. At the time, one of the other passengers reported that no-one in the vehicle was injured, but Cartridge later claimed she had suffered injuries to her neck, shoulders and back. (Gabriel Olano, 24/11/2022, Insurance Business Mag UK, 'Insurance fraudster convicted for exaggerated whiplash claim')

Superscript’s advisory service, SuperscriptQ, has been granted authorisation to operate in Europe as a Lloyd’s broker. Earlier this year, Superscript launched in Europe and opened an office in the Netherlands having gained accreditation from Dutch regulator AFM to operate as a broker across the European Economic Area (EEA). SuperscriptQ finds insurance for high-growth tech companies with emerging risks in sectors like digital assets, fintech and medtech. Strong demand has resulted in a fast start in Europe, exceeding initial forecasts by over 20%. Lloyd’s accreditation in Europe will help SuperscriptQ grow further through access to Lloyd’s European market. (Superscript, 24/11/2022, youTalk Insurance, 'Superscript authorised as Lloyd’s broker in Europe')

Specialist Motor Managing General Agent Kitsune Associates has entered administration after its reinsurance renewal was declined. On its website, the business reports Peter Kubik and Brian Johnson of UHY Hacker Young LLP were appointed joint administrators on 14 November 2022 adding: “The joint administrators are continuing to trade the business to enable the existing policies to be run off. Existing policies are not affected, however, no new business is being offered."(Insurance Age Reporter, 25/11/2022, Insurance Age, 'Kitsune enters administration after reinsurance renewal declined')

Actress Amber Heard has filed a countersuit against her insurer, claiming that the company breached its contract when it refused to honour her US$1 million liability policy for defamation claims, in relation to the infamous trial of her ex-husband Johnny Depp. Heard had taken a US$1 million liability policy with New York Marine and General. The actress also had another insurance policy with Travelers Commercial Insurance Company, which covered libel claims of up to US$500,000. As reported by vt.co, Travelers initially sued New York Marine in 2021 for half of what it had spent defending Heard, believing the actress was able to choose her own attorneys, and accusing New York Marine of wanting to use cheaper attorneys. Travelers also alleged that its lawyers were kept in the dark about certain legal proceedings. (Lyle Adriano, 25/11/2022, Insurance Business Mag UK, 'Amber Heard issues countersuit against insurer')

Stubben Edge Group has announced that it is launching a new digital 12-month term life insurance offering. This new offering is designed such that any general insurance broker can place the coverage for a client easily, it believes. According to Stubben Edge, brokers can sell the product without the need for the typical requirements needed when taking out a whole life or long-term life insurance policy. (Lyle Adriano, 25/11/2022, Insurance Business Mag UK, 'Stubben Edge introduces 12-month term life insurance product')

Motor insurance provider Marmalade has launched a usage-based policy for newly qualified drivers. According to the Peterborough-based broker, this can be a cost-effective insurance option for drivers covering fewer than 3,500 miles per year. The policy, which is underwritten by Ageas, uses Marmalade’s App & Tag system to track the number of miles driven. The system uses smartphone telematics technology to track distance and driving behaviour. Drivers can monitor their usage using the app, and they are eligible for a no claims discount for every year they remain claim-free. (Gabriel Olano, 25/11/2022, Insurance Business Mag UK, '(Lyle Adriano, 25/11/2022, Insurance Business Mag UK, 'Stubben Edge introduces 12-month term life insurance product')

Mergers & Acquisitions

JMG Group has purchased Wokingham-based BJP Insurance Brokers, a deal which will see the group exceed £200m in gross written premiums. BJP Insurance Brokers, which was established in 1997, specialises in the building construction, security, and agricultural machinery sectors and has its own specialist underwriting division - Focus. The Wokingham-based broker places over £37m GWP annually across its retail and underwriting divisions. (Sophie Locke-Cooper, 24/11/2022, Insurance Age, 'JMG Group exceeds £200m GWP with latest broker buy')

The Needham Group has bought Lutterworth-based Corporate Insurance Solutions boosting gross written premium to £9m. Needham, which mainly trades as Needham Insurance Services, had £7.5m of GWP this summer and is targeting over £20m by 2025. (Emmanuel Kenning, 22/11/2022, Insurance Age, 'The Needham Group buys Corporate Insurance Solutions')

PIB is poised to buy Harrogate-headquartered broker Jigsaw Insurance Services Plc for up to £24.12m in cash, marking a significant step in personal lines for the consolidator. Jigsaw specialises in the motor, breakdown and pet segments of the UK market. It reported £14.21m of revenue for the year ended 31 March 2022. (Emmanuel Kenning, 22/11/2022, Insurance Age, 'PIB swoops for personal lines specialist Jigsaw Insurance')

The Ardonagh Group has announced that it has agreed to acquire Envest Pty Ltd.Headquartered in Brisbane, Queensland, Envest is an insurance investment and distribution business with a diverse portfolio of brands and national footprint. Under the terms of the agreement, Ardonagh intends to acquire Envest for a consideration of AUD482 million (£270 million) which will be funded with a combination of equity and debt.(The Ardonagh Group, 24/11/2022, youTalk Insurance, 'Ardonagh Group announces acquisition of Australian insurance firm Envest')

Movers & Shakers

Tokio Marine HCC International (TMHCCI) has announced the promotion of Vanesa Herrero to the position of Chief Executive Officer of Tokio Marine Europe (TME). Herrero, who is currently Head of TME Claims, will take up her new role following the imminent departure of Christian Kanu who is leaving TMHCCI to take up a new role at a global insurer in his native Italy. In addition to becoming CEO of TME, Herrero will retain oversight of TME’s claims function.(Mia Wallace, 24/11/2022, Insurance Business Mag UK, 'Tokio Marine HCC International names new CEO for Europe')

Descartes Underwriting has announced the appointment of Louis Bollaert as Chief Revenue Officer. Bollaert has more than 20 years of industry experience. Prior to joining Descartes, he served as Head of Trade Credit, Political Risk, Surety and M&A Solutions at Aon in France. Before that, he was Distribution and Partnerships Director for Euler Hermes France. Bollaert began his career as an Internal Auditor and Project Manager for Bouygues Telecom. (Ryan Smith, 24/11/2022, Insurance Business Mag UK, 'Descartes selects new chief revenue officer')

International (re)insurance broker Consilium has set up an in-house claims team to be led by Nicola Chapman. Chapman, who joins from TUE, brings nearly two decades of claims experience to the post. She will be supported by Consilium partner Duncan Childs and a team of Claims Handlers.(Terry, Gangcuangco, 24/11/2022, Insurance Business Mag UK, 'Consilium gets own claims team')

Liberty Mutual Insurance’s Global Risk Solutions division (GRS) has announced the appointment of Rachel Conran as Chief Underwriting Officer, Liberty Specialty Markets (LSM), effective January 1, 2023. Conran joins from Intact Financial Corporation, where she most recently served as Chief Executive Officer and Board Member of RSA Luxembourg. She has held senior management and chief underwriting roles at leading global insurers, successfully managing sizeable global portfolios of complex products and driving underwriting profitability, financial planning, and strategy. (Liberty Specialty Markets, 22/11/2022, youTalk Insurance, 'Rachel Conran appointed as Liberty Specialty Markets Chief Underwriting Officer')

Miller has announced the appointment of three new senior hires in its Solicitors’ Professional Indemnity (PI) team. Kerry Greenwood, Marianne McWilliams and Louise Chagas will report into Zarina Lawley, Head of Solicitor’s PI, and will lead the expansion of Miller’s offering beyond London into the North and Southwest of the UK. With over 80 years’ collective experience in the industry, Kerry, Marianne and Louise bring extensive legal PI knowledge, expertise and capabilities to the Miller team. Kerry and Marianne join from Marsh (formerly JLT), and Louise from Lockton. (Miller, 24/11/2022, youTalk Insurance, 'Miller expands Solicitors offering into the North and Southwest of the UK with three new hires')

Marsh has announced the appointment of Christos Adamantiadis as CEO, Continental Europe, effective 1 January 2023. Mr. Adamantiadis joined Marsh in 2018 and is currently CEO of Marsh’s Middle East and Africa region. Prior to joining Marsh, he was Chief Executive of UAE-based Oman Insurance Company for three years. Mr. Adamantiadis also spent 20 years at AIG in various management roles, including overseeing its operations in Central and Eastern Europe, Russia, Turkey, the Middle East, and North Africa. (Marsh, 21/11/2022, youTalk Insurance, 'Marsh appoints Christos Adamantiadis CEO of Continental Europe')

Arch Insurance International has appointed Sam Bradley as Senior Cyber Underwriter, effective immediately. He joins from WTW where he was Senior Cyber Broker. He has also held Cyber underwriting roles at Liberty Specialty Markets and CFC Underwriting. (Sophie Locke-Cooper, 25/11/2022, Insurance Age, 'People Moves: 21-25 November 2022')

Rokstone’s Farm and Agriculture specialist, iFarm Underwriting, has recruited Lee Ellis and Jade Henry as Senior Underwriters. Ellis has previously held roles at Geo Underwriting where he was Senior Product Manager for three years, prior to this he spent eight years at Rural Insurance and 12 years at Direct Line. Henry has come from Marsh Commercial and has previously worked at AXA and Rural Insurance. iFarm has also promoted Adam Mawer to Underwriting Manager. (Sophie Locke-Cooper, 25/11/2022, Insurance Age, 'People Moves: 21-25 November 2022')

RSA Insurance has hired Marjorie Adejumo and Laura Fox as Strategic Account Directors in its UK Commercial Lines business. Adejumo joins from ERS and Fox has been promoted internally. They will both be responsible for leading several of RSA’s strategic broker relationships. (Sophie Locke-Cooper, 25/11/2022, Insurance Age, 'People Moves: 21-25 November 2022')

Ki, a Lloyd’s syndicate, has appointed Rebecca Marsh as an Underwriter. She joined the digital syndicate in November and reports to Helen Rios, Portfolio Underwriter. Marsh joins from Sompo International where she held the role of International Casualty Treaty Underwriter. (Sophie Locke-Cooper, 25/11/2022, Insurance Age, 'People Moves: 21-25 November 2022')

Temple Legal Protection has added Matthew Best to its board of directors as Director of ATE partnerships. Best joined Temple in July 2011 as an After the Event Insurance Underwriter. His new role will ensure relationships with solicitors and intermediaries are developed and supported. (Sophie Locke-Cooper, 25/11/2022, Insurance Age, 'People Moves: 21-25 November 2022')