General Insurance Newsletter Friday 23rd June 2023

Insurance News

Insurance broker Clegg Gifford (CG) has successfully identified and avoided more than £7 million worth of fraudulent motor trade claims over a period of four years with the help of the counter-fraud team at law firm DAC Beachcroft (DACB). CG Counter-Fraud Manager Graham Lee said in an emailed release: “DACB and CG have developed an innovative and cost-effective solution associated with the validation of fraudulent insurance claims. CG is committed to minimising fraud across our industry and the associated unnecessary indemnity spend." (Terry Gangcuangco, 22/6/2023, Insurance Business UK, 'Clegg Gifford shuns over £7 million worth of fraudulent claims')

North Ireland brokerage AbbeyAutoline has teamed up with Howden Driving Data to revamp its ChilliDrive app and assist young drivers in reducing their car insurance premiums by encouraging safer driving habits. This collaboration will introduce state-of-the-art telematics technology to the ChilliDrive app, allowing for comprehensive monitoring of driving behaviour. Using data science and artificial intelligence algorithms, the app will be able to automatically record a driver’s journey and then provide feedback on driving habits, including speed, acceleration, braking, and cornering. (Mika Pangilinan, 22/6/2023, Insurance Business UK, 'AbbeyAutoline teams up with Howden Driving Data to revamp app')

The leadership team at Brown & Brown Insurance will be cycling nearly 500 miles to support mental health. J. Powell Brown, President and CEO of Brown & Brown Insurance, P. Barrett Brown, Executive Vice President and President of the company’s retail segment, and Kellim Brown will be participating in the “Shifting Gears on Brain Health” event from Aug. 20-26. During the event, they will be cycling the French Alps to raise awareness and funds to support mental health, Brown & Brown said. (Ryan Smith, 22/6/2023, Insurance Business UK, 'Broking giant's leaders to cycle the Alps for mental health')

Lloyd’s, Aon, and Vienna Insurance Group (VIG) have teamed up to help Ukraine in its recovery and reconstruction by facilitating foreign (re)insurance capacity. “This unique commitment from Lloyd’s, VIG, and Aon brings together the insurance industry’s proven expertise in innovative risk management and capital solutions, and so with urgency and energy we will help to restore social well-being to citizens, communities, and corporations in Ukraine,” Aon’s Global Chairman of Reinsurance Solutions Dominic Christian said in an emailed release. (Terry Gangcuangco, 22/6/2023, Insurance Business UK, 'Lloyd’s, Aon, VIG unveil insurance collaboration for Ukraine')

Insuramore, a provider of insurance rankings and analysis, has released its updated global ranking of insurer groups based on cyber insurance gross direct premiums written (GDPW) in 2022. The rankings, which incorporate insights from major underwriters in the industry, provide insights into the competitive landscape of the cyber insurance market. According to the analysis, the estimated GDPW for cyber insurance globally reached approximately US$13.5 billion in 2022. When including captive insurers, this figure is projected to rise to nearly US$14 billion, with the United States accounting for over half of the total. (Steven Byerley, 21/6/2023, Insurance Business UK, 'Global cyber insurance market approaches US$14 billion')

Aviva Studios, which will be the home of Manchester International Festival organiser Factory International, will open in October. The new arts and culture venue is supported by the partnership between Aviva, Manchester City Council, and Factory International. In a release, the insurance giant said its investment – terms of which were not disclosed – will make a substantial contribution to the building and future success of Aviva Studios, which audiences will get to preview during the Manchester International Festival taking place from June 29 to July 16. (Terry Gangcuangco, 21/6/2023, Insurance Business UK, 'New partners lift the lid on soon-to-open Aviva Studios')

WTW has launched a new property rebuild assessment service to provide its clients with accurate rebuild valuations and advice. Made in partnership with Kroll’s property insurance valuation platform, the new service allows WTW to provide property rebuild adequacy assessments and online valuations to help assure clients that their business is properly protected and that they are not being overcharged for cover. (Kenneth Araullo, 20/6/2023, Insurance Business UK, 'WTW reveals new property rebuild assessment service')

Over-50s travel and insurance group Saga Plc posted lower insurance policy sales in the four months ended May 31. In a trading update, the Kent-headquartered business noted: “In what continued to be a challenging market, total policy sales across all products, for the four months ended May 31, 2023, were 6% behind the prior year.” Policy sales for motor and home insurance were down 7%, according to Saga. It added that the margin per policy within motor and home was £56, given the market-wide inflationary environment. (Terry Gangcuangco, 20/6/2023, Insurance Business UK, 'Saga Plc reports lower insurance sales')

UK-based lending platform White Oak Commercial Finance Europe has filed court proceedings in London against broking giant Marsh, which served as the commercial insurance broker for collapsed company Greensill Capital. A report by the Financial Timessaid White Oak acquired US$143 million of receivables from the now-insolvent supply chain finance firm between December 2020 and February 2021, not knowing about Greensill’s insurance woes. (Terry Gangcuangco, 20/6/2023, Insurance Business UK, 'Marsh faces lawsuit over role as Greensill's insurance broker')

Opportunistic insurance fraud cases, such as exaggerated claims and false application information, saw a 61% year-on-year increase in the March 2022 to April 2023 period, according to the City of London Police’s Insurance Fraud Enforcement Department (IFED). IFED, which has launched a national awareness campaign, said 51% of the cases it received in the period involved motor insurance fraud; 29%, property insurance fraud. Examples of opportunistic insurance fraud include faking an injury following a genuine road traffic accident. (Terry Gangcuangco, 20/6/2023, Insurance Business UK, 'Opportunistic insurance fraud cases up 61%')

New research from Ecclesiastical revealed that 68% of brokers believe underinsurance to be more of an issue for high-net-worth (HNW) clients than ever before as inflation and the cost-of-living crisis continues. The specialist insurer’s study also found that 77% of brokers believe that there is a problem with underinsurance in the HNWS market as the figure rose 5% from the previous year. In fact, of the 119 brokers questioned for the study, 25% believe that all HNW clients are underinsured. Despite these figures, only 30% of broker clients are concerned that they may be underinsured. (Kenneth Araullo, 20/6/2023, Insurance Business UK, 'Seven in 10 brokers say underinsurance is an issue for HNW clients – Ecclesiastical')

Marsh McLennan has announced its collaboration with the Ukrainian government to facilitate access to the global insurance market. In a pro-bono effort, Marsh McLennan will provide services to develop a risk data platform, enabling insurers to assess and underwrite war risks in Ukraine with increased confidence. The initiative aligns with the recent London Conference Framework on War Risk Insurance for Ukraine, launched by UK Prime Minister Rishi Sunak. As part of this framework, the Ukrainian government has committed to sharing detailed information with the insurance industry, allowing for effective risk modelling and the revitalisation of the commercial insurance market. (Steven Byerley, 23/6/2023, Insurance Business UK, 'Marsh McLennan steps up to facilitate insurance access for Ukraine')

Mergers & Acquisitions

Global broker Howden has strengthened its marine offering with the acquisition of Bremen-based broker Northern Lloyd, one of the leading marine brokers in Northern Germany. This acquisition aligns with Howden’s strategy to become the market leader for the marine business in Germany. Through this development, Howden Deutschland will capitalise on growth opportunities in the German marine market and benefit from Howden’s collective power stemming from its global presence. (Kenneth Araullo, 19/6/2023, Insurance Business UK, 'Howden bolsters marine line with German broker acquisition')

Movers

Steve Seekings, who most recently was Managing Director at Saffron Insurance, has made the switch to Alan Boswell Insurance Brokers (ABIB) to serve as Regional Manager for the independent broker’s branches in Peterborough and Boston. Seekings brings more than four decades of insurance industry experience, including time spent at Marsh and Aon, to ABIB. (Terry Gangcuangco, 22/6/2023, Insurance Business UK, 'Managing director moves to Alan Boswell Insurance Brokers')

Boutique M&A and specialty MGA Fusion Specialty has announced the appointment of two new CEO roles: Michael Federer as CEO of Fusion Specialty North America, and Katherine Simmonds as CEO of Fusion Specialty International. Federer comes to the role as a seasoned Insurance Executive with more than 18 years of combined experience as a Corporate Attorney focused on M&A deals and as an M&A Insurance Underwriter. He previously worked as a Managing Partner for sales and distribution in M&A for Fusion. Simmonds, meanwhile, joined Fusion in 2021 as a Managing Partner and spearheaded the growth of the business in M&A insurance markets across Australia, New Zealand, and Asia. (Kenneth Araullo, 21/6/2023, Insurance Business UK, 'Fusion Specialty unveils two for CEO roles')

Things have become official for Sabra Purtill, who is now taking on the Chief Financial Officer post at American International Group on a permanent basis after serving in an interim capacity from January. Purtill was previously Chief Investment Officer of AIG’s life & retirement business Corebridge Financial. (Terry Gangcuangco, 21/6/2023, Insurance Business UK, 'AIG names permanent finance chief')

Aspen Insurance Holdings has announced the appointment of Robert Tartaglia to the newly created position of Senior Vice President and Chief Operations Officer, Insurance. Tartaglia has more than 20 years of experience in insurance and reinsurance, and extensive knowledge in complex global operations, IT, and transformation. His previous roles include Global COO at Allianz Global Corporate & Specialty, Chief Broking COO at Aon, and various senior operations and technology positions at American International Group. Most recently, he served as Operational Strategy and Growth Leader at AIG, where he led transformation initiatives within the high-net-worth division, focussing on organisational design, operational effectiveness, and technology implementation. (Steven Byerley, 21/6/2023, Insurance Business UK, 'Aspen taps industry veteran for newly created role')

The global risk and insurance specialist - and Marsh McLennan subsidiary - Guy Carpenter has announced it has selected Vincenzo Cacia as its next CEO of Italy alongside several other key appointments aimed at further strengthening its position in the region. Cacia will join from Howden where he served as MD and Head of Treaty Reinsurance, Italy since 2022. He brings over 30 years of sector experience to his new role, having spent more than 15 years as a Managing Director at Aon where he led the company’s treaty reinsurance operations in Italy. (Mia Wallace, 20/6/2023, Insurance Business UK, 'Marsh McLennan subsidiary names CEO for Italy')

Liberty Specialty Markets (LSM), part of Liberty Mutual Insurance Group, has appointed Luis Prato as its London President, a newly created role. Commenting on the appointment, LSM President and Managing Director Phil Hobbs highlighted Prato's long-standing experience and capabilities. “Luis is a respected market leader with long-standing experience and a proven track record of delivering underwriting profitability in large organisations." (Roxanne Libatique, 19/6/2023, Insurance Business UK, 'Liberty Specialty Markets names London president')

Aon Plc, whose capabilities are now grouped under risk capital and human capital, has installed company veteran Paul Davies as Vice Chair to advise on risk capital opportunities. The new vice chair owned Reinsurance Agency before it became part of Aon in 1988. Credited for being the Founder and Chief Executive of Aon Reinsurance, Davies later went on to serve as Aon Re Worldwide Chair. (Terry Gangcuangco, 19/6/2023, Insurance Business UK, 'Aon Plc elevates company stalwart to vice chair')

Howden subsidiary Aston Lark, which launched its South Wales office earlier this year, has hired Catherine Robinson as an Account Executive. A keen runner and fundraiser who raised over £3,000 at this year’s London Marathon for Young Lives vs Cancer, Robinson spent more than 25 years at Keen Insurance where she was Director and Commercial Insurance Broker. (Terry Gangcuangco, 19/6/2023, Insurance Business UK, 'Aston Lark continues Welsh expansion')

Allianz has announced that Nick Hobbs has been appointed as Chief Distribution Officer for Allianz Commercial in the UK, effective immediately. Nick has been with Allianz group since 2001. He held a variety of roles at AGCS in the UK, Europe and North America before joining Allianz UK in 2011 as Head of Strategic Account Management, then Director, Broker Markets. In July 2021 he was appointed Chief Distribution and Regions Officer, for Allianz’s Holdings commercial business in the UK. (Allianz, 22/6/2023, youTalk Insurance, 'Allianz appoints Nick Hobbs as Chief Distribution Officer in the UK')

Covéa Insurance has appointed a new Chairman and CEO. Georges de Macedo has been appointed to the position of CEO of Covéa Insurance with immediate effect. Georges, who has held senior positions within international Groups and benefits from more than fifteen years of experience in the insurance sector, is well placed to lead the activities of Covéa in the UK. Thierry Francq will hand over the chairmanship of the Board to Chris Moat, as of July 1st, subject to PRA approval. Chris has been running as an Independent Non-Executive Director for Covéa since March 2021. Thierry remains a member of the Board of Directors. (Covéa, 19/6/2023, youTalk Insurance, 'Covéa Insurance appoints a new Chairman and CEO')

Claims giant Sedgwick has formed a power & energy division in the UK. Leading the newly created team is internal hire David Ward who has more than three decades of experience spanning loss adjusting, energy, and construction. Ward will look after a roster of Sedgwick experts who cover power & energy verticals. (Terry Gangcuangco, 23/6/2023, Insurance Business UK, 'Sedgwick UK forms power & energy division')