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Claims Newsletter Tuesday 4th April 2023

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Claims News

RSA parent company Intact Financial has announced that the insurer is leaving the personal lines motor market in the UK. The decision, taken after “a thorough review”, will see RSA run off around £120m of business. Intact has struck a deal to introduce MORE THAN direct motor customers to Swinton Insurance on renewal. RSA will focus on home and pet insurance, aiming to grow the direct business that it does while managing partnerships for value. (Mark Dugdale, 30/3/2023, Claims Mag, 'RSA to exit UK personal lines motor market')

The average cost of the most competitive motor insurance deals has soared a record 21.1% in the past year, according to Consumer Intelligence. This record increase, brought about by a “perfect storm” of car shortages, the impact of inflation on car parts, repairs and servicing, and the ban on dual pricing, has ramped up prices to the extent that the average annual bill is now £929. The Financial Conduct Authority’s General Insurance Pricing Practices (GIPP) rules introduced in January 2022, which banned insurers from offering different premiums to new and existing customers, has had an impact on pricing. (Mark Dugdale, 29/3/2023, Claims Mag, 'Motor insurance premiums reach record high')

The City of London Police’s Insurance Fraud Enforcement Department (IFED) has secured its first ever serious crime prevention order against a serial fraudster who was jailed in 2021. Hamid Sediqi was sentenced to four years in prison at Inner London Crown Court in May 2021, after he cloned a claims management company and orchestrated more than 60 fraudulent motor insurance claims. (Mark Dugdale, 10/3/2023, Claims Mag, 'IFED secures first serious crime prevention order')

Law firm Keoghs has launched a new platform for automating insurance claims. Lauri Claims System (CS) is an ecosystem of tools for claims automation that can be integrated into an insurer’s own systems. It’s the result of 18 months of in-house development at Keoghs and client feedback, building on the capabilities of existing technologies such as Kuarterback, the AI medical report reader released in 2020, and DTection, the fraud screening system launched in February 2022. (Mark Dugdale, 7/3/2023, Claims Mag, 'Lauri CS from Keoghs promises ‘claims resolution at high speed’')

SEIB Insurance Brokers has chosen ARAG to provide breakdown assistance cover for its equine, rural taxi and wedding hire customers. The insurance broker switched to ARAG in response to customer feedback. ARAG offers an extensive nationwide network of independent recovery operators with more than 4,000 contractors ready for roadside assistance, which SEIB has judged to be appropriate for serving this particularly specialist set of customers. (Mark Dugdale, 3/3/2023, Claims Mag, 'SEIB Insurance Brokers appoints ARAG for breakdown cover')

​ISS ESG, the sustainable investment arm of Institutional Shareholder Services, has launched the ISS ESG US Cyber Risk Index, which aims to support investors in identifying and tracking companies with low or negligible cyber-related risks. Based on the ISS ESG Cyber Risk Score, the index is designed to signal the relative likelihood that an organisation may suffer a material cyber security incident within the next year, based on its external security posture. (Staff Reporter, 28/3/2023, CIR, 'ISS ESG launches US Cyber Risk Index')

European banks have a potentially amplified vulnerability to cyber attacks due to the complex mix of new and legacy tech, common to the sector. This is according to analysis conducted by S&P Global Ratings, which showed that, in the rare circumstances in which a major attack was successful at a large bank, a lender might suffer a loss, directly attributable to the event, of as much as 7% of its equity value - the kind of loss that could prove material to the assessment of a bank's credit quality. (Deborah Ritchie, 23/3/2023, CIR, 'Banks' IT complexity amplifies cyber risk')

AXA XL has published an insights report highlighting the underappreciated risk of water security. According to the international non-profit CDP, the cost to businesses of inaction on water risks is five times higher than the cost of action, yet water security is currently under-represented in the public debate on climate change. Suzanne Scatliffe, Global Sustainability Director, AXA XL, said: “Creating a water-secure world requires water resources to be protected and properly managed, which is why it’s more essential than ever that water is at the forefront of corporate climate strategies." (Staff Reporter, 22/3/2023, CIR, 'Axa XL report highlights water security risks')

Re/insurer Chaucer has said that continuing inflation in construction costs is leaving homes and businesses underinsured in the event of a fire or catastrophic event. The carrier said cost inflation had combined with a desire from policyholders to save money and maintain sums insured at the same level, exacerbating the issue. Chance Gilliland, Head of Global Property delegated authorities at Chaucer, said: “Soaring construction costs driven by scarcity of raw materials, supply chain disruption and higher labour costs could leave UK businesses underinsured and at risk of excess costs.” (Deborah Ritchie, 20/3/2023, CIR, 'Inflation fuelling underinsurance – Chaucer')

The Hiscox Underwriting Academy provides technical and professional development for high performing talent, and is part of a wider drive to strengthen the underwriting talent pipeline and increase the speed to competency in underwriting roles. Jodi Cartwright, Distribution Director at Hiscox UK commented, “Competition for qualified Underwriters is tough, so whilst we continue to recruit skilled Underwriters with experience, we are investing heavily in nurturing new talent, with an increased focus on training, development and career management."(Staff Reporter, 15/3/2023, CIR, 'Hiscox launches underwriting academy')

The purchase of transactional risk insurance is now so common that it has become a mainstream feature of mergers and acquisitions worldwide. So says Marsh Specialty, in its annual review of the cover, which notes that buyers and sellers – both financial sponsors and strategic investors – are increasingly turning to tax insurance to protect themselves from potential tax liabilities that may arise after an acquisition. (Staff Reporter, 14/3/2023, CIR, 'Transactional risk insurance now mainstream product – report')

Following the launch of the Global Climate Change Resilience Services at group level, Zurich UK is now rolling out a full range of services and solutions for its domestic customers (operating locally and internationally) to help them better manage current and future hazards associated with climate change. Zurich Climate Change Resilience Services combines climate change data, with a company’s global exposure and location data, to develop scenarios of how climate change could impact their operations. The data spans a range of perils, from weather events such as wildfires, windstorms and floods, to climate effects, including temperature and sea-level rises. It also covers a variety of climate scenarios and time horizons from today to 2100, in five-year increments. (Staff Reporter, 14/3/2023, CIR, 'Zurich launches climate resilience service')

Aon has updated its Impact Forecasting Europe Windstorm and Severe Convective Storm catastrophe models to incorporate emissions scenarios that inform current and future projections of climate and storm activity across the continent. The windstorm model now covers 22 countries, having been expanded to include Iberia, the Baltics, Hungary and Switzerland, where windstorm events have not traditionally been well modelled. The SCS model allowing flexible hours clause application to the results now covers 12 countries, expanding to Slovakia, Hungary and Italy. (Staff Reporter, 13/3/2023, CIR, 'Aon expands storm models coverage')

Allianz Group has announced plans to combine its large corporate client business, AGCS, with its division serving mid-sized country-based accounts. The combined, global commercial insurance segment will trade as Allianz Commercial, and is part of the firm’s strategic plan to integrate its approach to tackling increasingly globalised risks; close internal structural gaps in market reach; and extend its product offering and delivery at the local level with a consistent underwriting approach. (Staff Reporter, 13/3/2023, CIR, 'Allianz combines commercial insurance divisions')

Coalition is to enter the excess cyber insurance market in the UK. The insurer will extend its reach to provide full-follow form coverage and protection of up to £10m above a primary layer from another carrier for both cyber and technology professional indemnity. A Coalition excess policy features access to Coalition Control, a proprietary attack surface monitoring technology that delivers personalised risk assessments, as well as advice from Coalition’s in-house incident response cyber support team. (Staff Reporter, 13/3/2023, CIR, 'Coalition enters excess cyber insurance market in UK')

Cyber risk management provider, Kynd has partnered with French broker, Filhet-Allard, to offer cyber resilience solutions to the firm's client base. Andy Thomas, Kynd CEO, said: “We are delighted Filhet-Allard has chosen Kynd to join their enhanced 360° cyber risk management service; and we fully support their vision on a preventative approach to cyber threats through achieving cyber resilience. In the era of digital threats being at the top of each organisation's agenda, the constantly growing threat landscape calls for a collaborative approach that brings together actionable threat intelligence and world-class industry experts to build effective and efficient solutions for businesses, which is exactly what this partnership is about. We’re looking forward to working together with Filhet-Allard towards this goal and growing our relationship even further in the future.” (Staff Reporter, 9/3/2023, CIR, 'Kynd joins forces with Filhet-Allard')

Efforts tied to Sedgwick’s international claims fraud strategy saved £1.23m for clients in 2022, the firm has said. Over the past three years, Sedgwick has witnessed a growing appetite in other territories such as France, Ireland and the Netherlands to mitigate the threat of fraud, with an emphasis on strengthening capabilities with cross-border activity across all product lines. (Staff Reporter, 8/3/2023, CIR, 'Sedgwick’s claims fraud strategy saves clients over £1m')

Chubb Global Markets has gone live with commercial re/insurance and reinsurance software provider, AdvantageGo’s Underwriting Workbench platform. Chubb began working with the provider last year to consolidate pre-bind risk information for its syndicate and companies market data. (Staff Reporter, 7/3/2023, CIR, 'Chubb goes live with AdvantageGo platform')

Intangic MGA has launched with backing from AXA XL. The MGA will offer parametric cyber insurance cover for large public corporations headquartered in the UK. As part of the policy, called CyFi, up to $15m (£12.5m) in the UK market will be provided to cover losses from material cyber breaches. Plans are underway to extend this offering to the US market. (Mark Dugdale, 20/3/2023, Claims Mag, 'Intangic MGA brings parametric cyber insurance cover to UK')

Mergers & Acquisitions

​Gallagher has announced it will launch its first direct presence in Sweden, following the integration and rebranding of Brim, Nordic and Proinova, which it acquired in 2016, 2017 and 2019 respectively. The combined team of over 65 risk professionals will operate from offices in Stockholm, Gothenburg, Helsingborg, Växjö and Gislaved. Jonas Bergfeldt, previously CEO of Nordic, has been appointed CEO of Gallagher in Sweden. (Staff Reporter, 30/3/2023, CIR, 'Gallagher integrates Swedish acquisitions')

In further news...​Gallagher has expanded its presence in the education sector with the acquisition of FE Protect, a broker specialising in providing cover to further education colleges, UK universities and independent schools. The business was founded in 2016 and also operates under the brands Education Protect and Education Protect Scotland. Tom Devine, Regional Managing Director at Gallagher, said: “FE Protect is a brilliant addition to our public sector and education practice and the business dovetails very well with our current education client base.”(Staff Reporter, 16/3/2023, CIR, 'Gallagher snaps up FE Protect')

​Howden has acquired BWV Versicherungsbroker AG in – a Liechtenstein broker with a portfolio of corporate and private clients. The acquisition following the successful acquisitions of Swiss brokerages Born Consulting, Bachmann and Partners and Broker Center Zurichsee, acquired in 2022 and 2021 respectively. (Staff Reporter, 15/3/2023, CIR, 'Howden continues European expansion')


QBE Re has appointed Debbi Wood to the role of Head of Claims. Wood has been with QBE for almost 20 years. During that time, she has held several roles across its claims function, most recently Claims Manager for financial and specialty markets, dealing with complex claims.(Mark Dugdale, 27/3/2023, Claims Mag, 'QBE Re appoints head of claims')

Davies has appointed Edward Leighton to lead a new forensic accounting division. The new division will work closely with Davies’s loss adjusting and claims third-party-administration (TPA) teams serving the insurance market. The launch of the Davies new division follows investment in technology to enhance its claims TPA and loss adjusting services in the UK and internationally. (Mark Dugdale, 23/3/2023, Claims Mag, 'Davies launches new forensic accounting service with senior appointment')

Thompsons Solicitors has appointed a new Head of Clinical Negligence. Victoria Gofton joins Thompsons to lead its clinical negligence team of more than 40 staff. Gofton graduated from the University of Brighton and started her career as a trainee in 2001, working at a number of Brighton-based law firms with a focus on personal injury. She joined Fentons, which later merged with Slater and Gordon, in 2009, rising through the ranks to become the National Head of Clinical Negligence in 2018, before working as a Legal Director for Lime Solicitors. (Mark Dugdale, 21/3/2023, Claims Mag, 'Thompsons Solicitors appoints new head of clinical negligence')

MIB has appointed Andrew Wilkinson as its new Chief Claims Officer. Wilkinson, who spent 25 years at Aviva, will join MIB this summer. He is the final addition to a series of senior leadership appointments announced in September last year as part of the not-for-profit’s aim to increase its benefit to the insurance industry and partners. (Mark Dugdale, 2/3/2023, Claims Mag, 'MIB appoints Aviva’s Andrew Wilkinson as new chief claims officer')

All information provided in this Market Digest has been gathered from Claims Mag, CIR.