General Insurance Newsletter Friday 1st September 2023

Insurance News

The Financial Conduct Authority (FCA) has revealed that Direct Line Group will carry out a past business review relating to the watchdog’s pricing rules. The move marks the first time a formal voluntary requirement has been agreed with a firm in relation to the FCA's motor and home insurance pricing rules. The FCA noted that Direct Line has agreed a voluntary requirement having charged some existing home and motor customers ‘more for their renewal than they would have done if they were a new customer’. The regulatory body stated that Direct Line will carry out a review to identify all cases where a customer has been overcharged and provide appropriate redress. (Mia Wallace, 1/9/2023, Insurance Business UK, 'Direct Line facing £30 million redress bill')

Collingwood Insurance, a national provider of learner driver insurance, has received the Advanced Award Good Work Pledge from the North of Tyne Combined Authority (NTCA). The Good Work Pledge was established in 2020 in order to recognise organisations that uphold the principles of “valuing and rewarding your workforce, promoting health and wellbeing, effective communications, and representation, developing a balanced workforce and demonstrating social responsibility.” (Mika Pangilinan, 31/8/2023, Insurance Business UK, 'Collingwood Insurance receives recognition for 'exceptional' work culture')

Certain insurance companies have again been targeted by activist groups that are demanding that the insurers rule out covering the East African Crude Oil Pipeline (EACOP), and the campaigners promise to keep on protesting until their demands are met. During Wednesday's protest in the UK, activists from Money Rebellion, Coal Action Network, Stop Eacop, Extinction Rebellion, Stop Rosebank, and Just Stop Oil ‘visited’ the offices of Chubb, Travelers Syndicate Management, Lancashire Syndicates, Chaucer Syndicates, Talbot Underwriting, Liberty Managing Agency, Hiscox Syndicates, AIG, and Tokio Marine Kiln Syndicates. (Terry Gangcuangco, 31/8/2023, Insurance Business UK, 'Activists target 9 insurance companies in new protest')

Insurer Ageas has published its financial results for the first half of 2023. Of the net operating result, €297 million came from Asia; €263 million, Belgium; €66 million, reinsurance; and €36 million, Europe. Commenting on the numbers, Ageas Chief Executive Hans De Cuyper said in a release: “We delivered a strong first half, with a solid commercial performance in life in China and in non-life across all segments. All operating entities showed resilience under continued turbulence in the financial markets in Europe and China. Thanks to our strong business performance and operational capital generation, we are confident we will reach a net operating result between €1.1 and 1.2 billion for 2023." (Terry Gangcuangco, 31/8/2023, Insurance Business UK, 'Ageas reports first-half financials')

Lloyd’s broker Tysers now uses a newly built platform that is said to have transformed the company’s broking operations. Called Tconnect, the system enables a faster and more responsive client service by streamlining the end-to-end life cycle of a policy. It was jointly created by Tysers and low-code specialists Systems iO Limited. “As a forward-thinking broker, we wanted to improve our working practices and provide a digital link between our front-and back-office teams,” Tysers Chief Information Officer Steve Jolley said in an emailed release. “Tconnect has achieved this and resulted in much more accurate and efficient processing." (Terry Gangcuangco, 31/8/2023, Insurance Business UK, 'Tysers deploys 'transformational' platform')

Prudential has unveiled its half year financial results for the six months ended June 30, in addition to announcing its new purpose and strategy for the company moving forward. The firm’s new business profit shot up by 39% to $1.489 billion, with 17 of its like markets delivering growth; a further 16 delivered this growth in the double digits. Not taking into account the effect of interest rates and other economic factors, Prudential’s new business profit grew by 52%. (Kenneth Araullo, 31/8/2023, Insurance Business UK, 'Prudential underscores strong performance in half-year results')

Specialist insurer Apollo has joined forces with Artificial Labs, the algorithmic underwriting insurtech, to introduce an innovative smart follow collaboration. This collaboration aims to unleash fast, consistent, and dependable capacity for brokers operating within the London market. Building upon a successful proof of concept conducted in early 2023 which harnessed Artificial Labs' technology for marine hull, this partnership will extend to various other lines of business. It also intends to provide brokers with a wider spectrum of options and prospects within the smart follow market. (Kenneth Araullo, 31/8/2023, Insurance Business UK, 'Apollo unveils smart follow collaboration with underwriting insurtech')

The commercial property insurance industry generated US$254.9 billion in 2022 and is projected to reach US$724 billion by 2032, with a compound annual growth rate (CAGR) of 11.3% from 2023 to 2032, according to a new report from Allied Market Research. The growth of the commercial property insurance market is driven by factors such as increasing awareness of risk management among businesses, regulatory requirements mandating insurance coverage, and the rise in natural disasters and man-made incidents. Additionally, the expansion of businesses globally contributes to the demand for property insurance. (Steven Byerley, 30/8/2023, Insurance Business UK, 'Commercial property insurance market predicted to hit US$724bn by 2032')

The microinsurance sector is poised for substantial expansion, anticipated to achieve a compound annual growth rate (CAGR) of 6.2% between 2023 and 2031, according to a new report from Research and Markets. This surge is driven by a growing demand for insurance solutions that are both accessible and affordable, catering to low-income individuals and underserved populations. In the evolving global financial landscape, microinsurance plays a vital role in closing gaps and ensuring financial inclusion. (Steven Byerley, 30/8/2023, Insurance Business UK, 'Microinsurance poised for substantial growth – report')

DWF, a global provider of integrated legal and business services, has announced its full-year results for the year ended April 30, 2023, revealing a group net revenue of £380.1 million. This is an 8.5% growth from the £350.2 million net revenue reported in the previous fiscal year, which came amid a challenging environment for the legal sector and the broader economy. (Mika Pangilinan, 29/8/2023, Insurance Business UK, 'DWF releases full-year results')

The British Insurance Brokers’ Association (BIBA) has revealed the renewal of the ‘Signposting Agreement’ on Age and Insurance between Government, BIBA and the Association of British Insurers (ABI). In a press release, the association revealed its Find Insurance Service has received over one million enquiries about car and travel insurance from older people since its launch in 2012. Under the terms of the agreement, if an insurer or broker cannot offer cover to an older motorist or traveller due to their age, they will refer them to a provider who can meet their needs, or to a dedicated signposting service such as the BIBA-operated Find-Insurance Service. (Mia Wallace, 29/8/2023, Insurance Business UK, 'Signposting Agreement on Age and Insurance renewed')

“Shop home insurance like you shop Amazon” is the key message in the e-commerce giant’s newly launched ad campaign for its Amazon Insurance Store. Titled ‘Moving In’, the advert features a shoe house for which its new occupant purchased 35 tins of shoe polish on Amazon and a home insurance policy from one of four insurers –Ageas UK, Co-op, LV= General Insurance, and Policy Expert – on the Amazon Insurance Store panel. In an emailed release, creative agency Joint said the advert is part of a wider campaign that will also include out-of-home advertising for the insurance buying platform. (Terry Gangcuangco, 29/8/2023, Insurance Business UK, 'Amazon Insurance Store launches ad campaign')

Mergers & Acquisitions

Aston Lark– a Howden company – has revealed it has added the Plymouth-based marine insurance broker, Curtis Marine to its roster. A family-run business, Curtis Marine has provided marine insurance solutions to the Southwest region for the last four decades, organising cover for a broad range of vessel types, from sole traders to marinas. In a press release, Aston Lark highlighted that the Curtis Marine team's emphasis on customer service and providing advice and guidance for clients through their whole insurance journey fits closely with the ethos of Howden Group, making it ‘the perfect addition’. (Mia Wallace, 29/8/2023, Insurance Business UK, 'Aston Lark swoops for Plymouth-based Curtis Marine')

Movers

Zurich Insurance Group (Zurich) has appointed Hilary Bates as the new Chief Compliance Officer of Zurich Insurance UK, subject to regulatory and visa approval. Bates has a wealth of governance and controls knowledge and experience in delivering for customers across various markets in mature regulatory environments. (Roxanne Libatique, 31/8/2023, Insurance Business UK, 'Zurich UK unveils new chief compliance officer')

Direct Line Group has announced that Adam Winslow is set to be appointed as its new Chief Executive Officer, subject to regulatory approval. In a press release, Direct Line said Winslow is expected to take up his new role in Q1 2024, succeeding acting CEO Jon Greenwood. The UK motor insurance giant noted that prior to leading Aviva’s UK and Ireland general insurance business, the incoming Executive was CEO of Global Life at AIG Life and Retirement (now Corebridge) having successfully held a number of general insurance and life insurance roles in his eight years at AIG. In addition, Winslow serves on the Board of the Association of British Insurers (ABI) and is a Non-Executive Director at Pool Re. (Mia Wallace, 30/8/2023, Insurance Business UK, 'Adam Winslow to step up as CEO of Direct Line Group')

British insurance giant Aviva which has announced the appointment of Jason Storah as CEO of its UK & Ireland General Insurance business and Tracy Garrad as CEO of Aviva Canada. With almost two decades of experience at Aviva to his name, Storah has served the insurer in a variety of roles including as Chief Distribution Officer, where he oversaw broker distribution, partnerships – including RBC Insurance – as well as Aviva’s direct insurance business and marketing. Meanwhile, Garrad will succeed Storah as CEO of Aviva Canada, taking up her new post on October 16, 2023 - subject to visa and regulatory approval. She most recently served as CEO of AXA’s UK Healthcare business (formerly AXA PPP), and before that was CEO of HSBC’s Channel Islands and Isle of Man business, after four years as the CEO of First Direct Bank. Garrad is also a Non-Executive Director of The London Stock Exchange Group plc. In her new role, she will also report to Blanc and is set to become a member of Aviva’s group executive committee on joining the company. (Mia Wallace, 30/8/2023, Insurance Business UK, 'Aviva names new CEOs for UK&I GI and Canada')

Richard Day, who is stepping back after 14 years with Crawford & Company, has been succeeded by William Jones as Lloyd’s and London Markets Head. The appointment saw Jones move from his previous role as Vice President, Lloyd’s and London Markets. He has worked at the global claims management giant for a decade now, starting out as a Graduate Trainee Adjuster in 2013. (Terry Gangcuangco, 30/8/2023, Insurance Business UK, 'Crawford & Company picks Lloyd’s and London Markets head')

Fidelis MGU has announced a series of promotions to bolster its underwriting team, with three elevated to senior roles, effective immediately. Richard Coulson has been promoted to Deputy Group Chief Underwriting Officer. Coulson joined Fidelis in 2015 as Head of Speciality. Since 2021, he has served as UK CUO and insurance CEO. Stepping into the UK Chief Underwriting Officer role is Michael Davern, who was Deputy UK CUO. At the same time, Davern will continue his duties as Group Head of D&F (direct and facultative) property, energy, and construction. The new UK CUO began his career in 2003 at Lane Clark & Peacock actuarial consultancy before transitioning to an underwriting capacity at Catlin Syndicate. He came to Fidelis in 2020 as a Senior Underwriter. Matthew Bellamy, who has now been elevated to the position of Deputy UK CUO, will concurrently maintain his role as Director of Underwriting for the group. Bellamy joined Fidelis in 2019 as a Senior Underwriter. He began his career at Amlin as a US Property Treaty Underwriter. He later moved to Acapella Syndicate 2014 where he held a number of senior underwriting roles and was Deputy Active Underwriter. Aside from these three moves, Fidelis MGU also promoted Jamie Cann to Head of Aviation and Space, Savannah Thompson to Head of Political Risk, and Abigail Wilkins to Head of Airlines. (Mika Pangilinan, 30/8/2023, Insurance Business UK, 'Fidelis MGU bolsters underwriting team with key promotions')

Embedded protection insurtech Cover Genius has announced the appointment of David Rudow as its new Chief Financial Officer, aligning with the company's progression into its next phase of expansion. Rudow brings a wealth of experience and a proven financial management track record to his new role, with over 18 years of expertise in senior financial positions within private equity and venture-backed enterprises. According to LinkedIn, he held the position of CFO at the cloud-based technology firm nCino. During his tenure, he successfully orchestrated one of the most substantial US day-one tech IPO "pops" in decades, facilitated a prosperous secondary offering, and managed the $1.2 billion acquisition of SimpleNexus in 2021. (Kenneth Araullo, 30/8/2023, Insurance Business UK, 'Cover Genius introduces new chief financial officer')

Melissa McDermott is joining Everest Insurance to take on the role of Global Chief Actuary with immediate effect. McDermott brings around three decades of experience from the likes of AXA XL and Travelers to Everest Group’s insurance division. She most recently held the position of North America General Insurance Chief Actuary at AIG. Melissa McDermott is joining Everest Insurance to take on the role of Global Chief Actuary with immediate effect. (Terry Gangcuangco, 29/8/2023, Insurance Business UK, 'Everest Insurance swoops for AIG hire')

Insurance services and technology provider Charles Taylor has announced the appointment of Steven Beard as Group President, effective on the 1st of September. Beard joins Charles Taylor from Ardonagh Specialty, where he most recently held the role of Chief Financial Officer. His background also includes stints as CEO, CFO, and COO at prominent professional services and insurance companies. (Mika Pangilinan, 28/8/2023, Insurance Business UK, 'Charles Taylor appoints group president')

Sompo International has recently announced the appointment of Angela Weiss as the Head of Property and Energy Insurance for Continental Europe. Weiss previously served Zurich Insurance as Head of Underwriting Property, Engineering lines and Marine for Switzerland and international Austrian business. She has also held leadership and underwriting roles in property, energy, engineering lines, marine and risk engineering at several firms such as Zurich Germany, AXA, and FM Insurance. (Abigail Adriatico, 28/8/2023, Insurance Business UK, 'Insurance company appoints new head of property & energy insurance')

AXA XL has announced that Lucy Pilko has been appointed Chief Executive Officer for the Americas region of its insurance operations, effective October 30, 2023. Ms. Pilko assumes the role from Joseph Tocco who has decided to retire, after more than 12 years as a Senior Executive in the company’s insurance business, including his current position as Chief Executive for the Americas. He will remain as a Special Advisor through 2023. Lucy brings over 20 years of insurance industry consulting experience, most recently as Managing Director and Senior Partner for Boston Consulting Group (BCG), leading its North American Insurance practice across commercial lines, personal lines, brokerage, individual and group life and reinsurance. In this role, Ms. Pilko developed a particular focus on operating models and digital transformation and served on BCG’s large-scale transformation and people and organization practices. (AXA XL, 31/8/2023, youTalk Insurance, 'AXA XL appoints new Chief Executive Officer, Insurance in the Americas')

AXIS has announced several new appointments within its Global Cyber & Technology division. Thomas McShane has been appointed to the role of Technology E&O Lead, Global Cyber & Technology and will be responsible for leading strategy and developing our E&O capabilities in London. Oliver Llewellyn has been appointed to the role of Senior Underwriter & GCT CUO Deputy. Oliver has been influential in growing and maintaining our large and complex book of business. He will continue to do so in this role with a focus on being customer facing. Gerard Wiley has been appointed the role of Underwriter and will be underwriting accounts across the global cyber portfolio with a particular focus on our Marine and Property Damage products and offerings, an ever-growing focus area for AXIS as a specialty insurer. (AXIS, 31/8/2023, youTalk Insurance, 'AXIS announces new Global Cyber & Technology division appointments')

Charles Taylor has announced the appointment of Steven Beard as Group President, effective 1st September 2023. Steven joins Charles Taylor from Ardonagh Specialty where he most recently served as CFO. He has held several prior roles as CEO, CFO and COO in Professional Services and Insurance companies. In his new role and as a member of its Executive Committee, Charles Taylor will benefit from Steven’s experience leading entrepreneurial organisations, in continuation of the firm’s growth strategy. (Charles Taylor, 29/8/2023, youTalk Insurance, 'Charles Taylor appoints Ardonagh Specialty’s Steven Beard as Group President')