General Insurance Newsletter Friday 8th September 2023

Insurance News

Premium Credit is offering a finance facility that allows insurance brokers to spread their Financial Conduct Authority (FCA) fees and levies over monthly repayments. A press release from the finance services provider said this alternative payment method was first made available for regulated firms over 15 years ago and has continued to grow in popularity over the years. (Mika Pangilinan, 7/9/2023, Insurance Business UK, 'Premium Credit offers alternative payment method for FCA fees')

The global reinsurance sector saw a substantial increase in dedicated capital, reaching US$709 billion by the midpoint of 2023. This marked a 13% growth compared to the recalibrated figures for the entire year of 2022. These findings are part of the latest Reinsurance Market Report from Gallagher Re, which monitors the capital and financial performance of the global reinsurance industry. (Kenneth Araullo, 7/9/2023, Insurance Business UK, 'Revealed – reinsurers' capital base at half-year 2023')

Lloyd’s - the world’s leading marketplace for insurance and reinsurance which was recently recognised among the top 40 global reinsurers – posted its results for H1 2023, which was described by CEO John Neal as a “very strong” six months. Among the headline figures revealed, Lloyd’s commanded gross written premium of £29.3 billion in H1 2023, up 21.9% from £24 billion in the same period last year. In an earnings release, Lloyd’s attributed this to growth from existing syndicates (6.5%), new syndicates (2.2%), foreign currency movements (4.1%) and risk-adjusted rate increases (9.1%). It also highlighted that major claims represented 3.6% of losses in the first half of the year. (Mia Wallace, 7/9/2023, Insurance Business UK, 'Lloyd's reveals results for half-year 2023')

UK insurance intermediary Specialist Risk Group (SRG) has created an entertainment, media, and sport (EMS) division. The new EMS unit consists of sector specialists who will operate across SRG’s various distribution channels: retail broking, wholesale broking, underwriting, and international. “This is another example of our strategy in action with the formation of a market-leading entertainment, media, and sport division made up of people with truly specialist capability,” Group Chief Executive Warren Downey said in a release. (Terry Gangcuangco, 7/9/2023, Insurance Business UK, 'Specialist Risk Group announces launch of new division')

Liberty Mutual Reinsurance (LM Re), in collaboration with managing general agent (MGA) XS Global and technology provider Safehub, has introduced the world's first sensor-based, parametric reinsurance treaty designed for earthquake risk. LM Re has touted this development as a new era for disaster risk management, offering insurance companies, risk managers, and policy holders access to real-time, building-specific sensor data. As part of the collaboration, Safehub provides smartphone-sized sensors that are installed in individual properties to precisely measure ground shaking, thus reducing basis risk and expediting claims payments. The initial distribution of multiple policies through XS Global subsidiaries in Mexico will leverage Safehub's innovative sensor technology. (Kenneth Araullo, 6/9/2023, Insurance Business UK, 'LM Re unveils world-first parametric reinsurance treaty')

Mosaic's global risk syndication program has reached close to $250 million underwritten in gross written premium (GWP) for its industry partners across seven product lines and regions. This program, launched in early 2021, has generated GWP for over 20 syndication trade partners, including major re/insurers such as Apollo, Hampden Risk Partners, Nephila Syndicate 2358, SiriusPoint, Flux Syndicate, and IQUW. (Kenneth Araullo, 6/9/2023, Insurance Business UK, 'Mosaic's risk syndication programme records $250 million underwritten in GWP')

Ally McCoist’s son Argyll, who was involved in a hit-and-run incident in 2016 while driving uninsured, will have to pay Aviva £244,000 plus interest all by himself. In the court case through which Aviva sought that the Rangers legend foot part of the bill, Judge Lord Menzies ruled on Tuesday that McCoist was not liable for failing to stop Argyll from using the Aviva-insured car. (Terry Gangcuangco, 6/9/2023, Insurance Business UK, 'Ex-footballer Ally McCoist found not liable in Aviva case against son')

The Financial Conduct Authority (FCA) has granted a full authorisation licence to insurtech Qover. “Securing the FCA licence is a testament to our strong commitment to delivering excellence,” Qover Chief Executive and Co-Founder Quentin Colmant said in a release. (Terry Gangcuangco, 6/9/2023, Insurance Business UK, 'Qover secures full authorisation licence from FCA')

The Chartered Insurance Institute (CII) has published the findings from its latest Public Trust Index, showing record-breaking customer satisfaction level for a particular type of insurance. Based on the CII Public Trust Index – which also breaks down poll responses by age, gender, and ethnicity – the overall consumer satisfaction when it comes to travel insurance policies has reached the highest level since the professional membership body started compiling data in 2018. “The latest outturns show that 87% of consumers who had recently bought a travel insurance policy were satisfied with their purchase, compared to just 76% in July 2021, when the sector was facing challenges following the COVID-19 pandemic,” noted the CII, which surveys around 1,000 consumers and 1,000 SMEs. (Terry Gangcuangco, 5/9/2023, Insurance Business UK, 'CII publishes new findings from Public Trust Index')

Research commissioned by specialist education insurer Ecclesiastical has revealed that more than half of schools (52%) believe they could benefit from additional guidance on crime and security risks from their insurer or insurance broker. This figure represents an 11% increase from the previous year, indicating a promising opportunity for brokers to provide valuable support. Schools have become attractive targets for criminals, with a striking four in five (79%) reporting incidents of crime in the past 12 months, reflecting a 15% increase compared to the previous year. (Kenneth Araullo, 5/9/2023, Insurance Business UK, 'Education clients seeking more guidance from brokers')

Insurance standard-setter ACORD has announced the release of the ACORD GRLC Contract, Risk, and Pre-Accounting (CRP) implementation toolkit, a new data messaging standard aimed at facilitating the efficient exchange of insurance data. The CRP Standard was developed to simplify the flow of contract information among stakeholders in the industry and support modernisation efforts in the London Market. It received formal approval from the ACORD Global Reinsurance & Large Commercial Program Advisory Council in late August. (Kenneth Araullo, 4/9/2023, Insurance Business UK, 'ACORD launches new CRP implementation toolkit for data exchange')

Insurtech Vesttoo, which has faced turbulence since it emerged that alleged fraudulent letters of credit (LOCs) had been used via its platform, has alleged that its CEO, other former executives and third parties engaged in “pervasive and systemic misconduct” and has claimed to have uncovered “conspiracy”. The allegations came as Vesttoo filed its first interim bankruptcy report in the United States Bankruptcy Court for the District of Delaware. In the report, it was alleged that former Vesttoo executives Yaniv Bertele (former CEO), Alon Lifshitz (former CFE), Udi Ginati (former Senior Director, capital markets) and Josh Rurka (former Senior Director, Asian markets) were “directly involved” in creating fake documents and forging identities.(David Saric, 7/9/2023, Insurance Business UK, 'Vesttoo alleges ‘systemic misconduct’ by former executives')

Mergers & Acquisitions

Intact Financial Corporation and its subsidiary RSA has announced that they have reached an agreement with Direct Line Insurance Group plc (Direct Line) to acquire Direct Line’s brokered Commercial Lines operations. The purchase price includes an initial cash consideration of £520 million (C$884 million), with potential for up to a further £30 million (C$51 million) contingent payment under earnout provisions relating to the financial performance of the acquired business lines. The transaction will result in the transfer of renewal rights, brands, employees, and systems to RSA. Direct Line’s brokered Commercial Lines generated written premiums of £530 million in 2022, and delivered an average combined ratio of approximately 96% across 2021 and 2022. (Intact Financial Corporation and RSA, 7/9/2023, youTalk Insurance, 'Intact Financial Corporation and RSA to acquire Direct Line's brokered Commercial Lines operations')

Castle Insurance has purchased Square Circle Brokers – the company’s second acquisition in Durham since joining Brown & Brown unit Global Risk Partners (GRP) in 2022. Founded in 2010, Square Circle specialises in general commercial insurance, with a focus on motor fleet, commercial combined, combined liability, and property owners. As part of the deal, the firm’s entire roster will continue to operate from Square Circle’s existing premises. (Terry Gangcuangco, 5/9/2023, Insurance Business UK, 'Castle Insurance acquires Square Circle Brokers')

Bermuda-headquartered legacy group Compre has successfully concluded its acquisition of the Irish subsidiary of Covéa, Medical Insurance Company DAC (MIC). MIC specialised in offering insurance policies that covered professional medical malpractice risks and had been in run-off since 2015. The deal was marked by Compre as a significant milestone in its ongoing efforts to establish a centre of excellence for medical malpractice in Europe. It comes on the heels of the previously approved legal transfer of a portfolio of French medical malpractice liabilities from another European insurer in July 2023. (Kenneth Araullo, 5/9/2023, Insurance Business UK, 'Compre finalises acquisition of Covéa medical insurance subsidiary')

Ardonagh Advisory has officially welcomed two significant additions to its group: high net worth (HNW) broker Stanhope Cooper and managing general agent (MGA) Renovation Underwriting. This follows a prior agreement to acquire a majority stake in these businesses. As part of the agreement, Ardonagh has acquired a shareholding in N&W Investments, which serves as the parent company for Stanhope Cooper, Renovation Underwriting, as well as Insurance Tailors and Porterhouse Brokers. (Kenneth Araullo, 4/9/2023, Insurance Business UK, 'Ardonagh Advisory announces double swoop')

McLarens-owned Halliwell Forensics, which launched in the UK and Ireland in June 2022, has expanded by merging with fellow forensic investigation firm Geoffrey Hunt & Partners (GHP). In an emailed release, Halliwell Forensics announced its swoop for GHP’s assets and team without disclosing the merger’s financial terms. Providing a full-service engineering and scientific platform to insurance and legal clients, GHP has been operating in Britain since the 1960s. GHP Partners Cliff Christie and Jan Graham now hold the position of Directors at Halliwell Forensics, bringing with them the acquired company’s full line-up of Senior Associates. (Terry Gangcuangco, 4/9/2023, Insurance Business UK, 'McLarens-owned Halliwell Forensics announces merger')

Movers

Managing general underwriter Carbon Underwriting Limited, which operates as Lloyd’s Syndicate CBN 4747, has brought in Rupert Atkin as Chair Stephen Card’s replacement. Atkin, Founder of Syndicate 1183 and Chair of Ark Managing Agency and Whitespace, previously served as Chair and Chief Executive of Talbot Underwriting. He also held the position of Lloyd’s Market Association Chair from 2012 to 2015 and was a Council of Lloyd’s member from 2006 to 2016. (Terry Gangcuangco, 7/9/2023, Insurance Business UK, 'Carbon Underwriting names new chair')

AXA XL, the property & casualty and specialty risk division of AXA, has added a Chief Client Officer function to its leadership team. Taking on the newly created post is former Chief Transformation Officer Manuel Meier, whose previous roles include Switzerland Country Manager. Originally a Broker, Meier spent more than 12 years at Zurich Insurance before joining AXA XL in 2018. (Terry Gangcuangco, 7/9/2023, Insurance Business UK, 'AXA XL adds chief client officer to leadership team')

Multinational insurance group RSA Insurance (RSA) has appointed Dr Graeme Smith as its new Commercial Lines Chief Underwriting Officer, effective from September 18, 2023. Smith was most recently the Finance Risk Director for RSA’s UK and international (UK&I) business. He began his career at RSA as an Actuarial Trainee 19 years ago. Over the years, he has worked in various senior roles and regions, including as the Head of Actuarial in Italy, Head of Solvency II in Ireland, and Head of Model Validation and Capital Risk for UK&I. (Roxanne Libatique, 7/9/2023, Insurance Business UK, 'RSA names new commercial lines CUO')

In further news...RSA Insurance has announced the appointment of Michael Jensen as Senior Specialist Underwriter – Accident & Health (A&H) within its UK Specialty Lines division. With extensive experience in A&H underwriting, Jensen started his insurance career at RSA in 2013, gaining valuable experience in both A&H and schemes. Following his time at RSA, Jensen held A&H underwriting and senior underwriting positions at Chubb and Aviva before joining RSA from Howden, according to his LinkedIn. (Kenneth Araullo, 4/9/2023, Insurance Business UK, 'RSA taps new specialist underwriter for A&H segment')

Canopius has appointed Lucy Bennett as the Head of Equality, Diversity, and Inclusion (EDI), with the appointment effective immediately. Bennett joins Canopius from Surrey Police, where she held the position of Head of Diversity and Inclusion, responsible for implementing the force's EDI strategy. According to her LinkedIn, prior to her role at Surrey Police, Lucy contributed her expertise at Moving Ahead, a social impact organization specializing in enhancing workplace diversity and inclusion. (Kenneth Araullo, 6/9/2023, Insurance Business UK, 'Canopius boosts DE&I commitment with new global strategy leader')

Marsh McLennan has announced two key appointments within its UK operations: Nick Harris has been appointed CEO of UK Retail, Marsh, while Ailsa King has assumed the role of Chief Commercial Officer, Marsh McLennan UK. With over 20 years of experience in the insurance industry, Harris has held senior positions in both the UK and Australia. Before assuming the role of CEO of Marsh Pacific, he served as CEO of JLT Australia and New Zealand. King brings more than 30 years of experience in senior broking and risk advisory roles to her position. She first joined Marsh in 2017 as the UK Chief Client Officer. King has also served as CEO of Marsh's UK risk management client segment, focusing on meeting the needs of Marsh's largest and most complex clients. (Kenneth Araullo, 6/9/2023, Insurance Business UK, 'Marsh announces dual UK appointments')

Cowbell, the San Francisco-based cyber insurer which is rapidly expanding across the UK marketplace has announced the launch of its first UK-specialty product - Cowbell Prime One. In a press release, the provider which officially launched in the UK in Q2 of this year, revealed that the standalone cyber insurance programme is tailored for SMEs and mid-market businesses. The product launch accompanies the appointment of Catherine Aleppo as Sales Director as she moves across from leading the cyber department at Aston Lark. Hailed as a “trusted and committed advisor”, Aleppo brings 18-plus years of experience to the role which will see her educate brokers and UK SMEs on identifying cyber threats and vulnerabilities, and ensuring effective risk management. (Mia Wallace, 6/9/2023, Insurance Business UK, 'Cowbell affirms rapid UK expansion with programme launch')

American International Group (AIG) has appointed its first-ever Vice Chair. Taking on the post in October is Lucy Fato, who currently holds the positions of Executive Vice President (EVP), General Counsel, and Global Head of Communications and Government Affairs. Fato has been with the global insurer since 2017. “Since Lucy joined AIG in 2017, she has played a pivotal role in successfully navigating AIG’s complicated transformational work and executing on multiple complex workstreams that have transformed the company into what it is today,” Chair and Chief Executive Peter Zaffino said in a release. (Terry Gangcuangco, 6/9/2023, Insurance Business UK, 'AIG names vice chair')

British Marine has welcomed two new additions to its underwriting team based in Singapore. Sebastian Tjornelund will assume the role of Head of P&I Underwriting for the Asia region, bringing with him more than 12 years of experience in underwriting for Asian markets. He joins from NorthStandard, where he served as the Active Underwriter in their fixed premium business, specializing in business development with a specific focus on Asia. In addition, Tjornelund will oversee the existing team in the region, which has been further strengthened by the appointment of Jamie Baggett as Senior Underwriter. According to his LinkedIn, Baggett joins from Eagle Ocean Marine, the fixed premium P&I business within the American P&I Club, where he served as Underwriter and Market Liaison. He also brings extensive experience in P&I in the Asian region to his new role. (Kenneth Araullo, 6/9/2023, Insurance Business UK, 'British Marine bolsters Singapore office with key underwriting appointments')

Guy Carpenter(GC), a Marsh McLennan-backed global risk and reinsurance specialist, has appointed Julian Enoizi as the new CEO of Europe, effective immediately. Enoizi joined GC in April 2022 as the Global Leader of Public Sector Solutions Practice, which he will continue to lead until a successor is appointed. Before joining GC, he was the CEO of Pool Re from 2013 to 2022. He formerly held senior Europe-based roles at Chubb and AIG Europe before becoming the CEO of CNA Europe and later the president and CEO of Argo International. (Roxanne Libatique, 5/9/2023, Insurance Business UK, 'Guy Carpenter taps familiar name for Europe CEO role')

Gallagher has announced the appointment of Sam Cheshire as Head of Cyber for its UK & Ireland retail division. Cheshire joins Gallagher after six years at Clear Insurance Management, where he held various roles with a primary focus on cyber insurance. There he worked closely with commercial business clients to help them identify and mitigate their cyber risks. He also used his expertise to support Account Executives in deciphering complex cyber policy wordings. (Mika Pangilinan, 5/9/2023, Insurance Business UK, 'Gallagher selects head of cyber for UK & Ireland retail division')

Aviva UK, which announced structural changes to its SME and distribution leadership teams in July, is giving the insurer’s distribution line-up a further boost with two senior appointments. In October, Sharon Boobyer is moving from her role as Head of SME Commercial Change, Systems, and Transformation to become Chief Operating Officer for SME and distribution. The promoted leader will be joined by Rebecca Gambrell, who will come on board as Portfolio Director in December. Boobyer brings 33 years of commercial insurance experience to the post, while Gambrell is making the switch from Zurich where she started her career in 2009 and most recently served as Personal Lines & MGAs Head. (Terry Gangcuangco, 5/9/2023, Insurance Business UK, 'Aviva UK boosts distribution team')

Insurtech MGA Qlaims has announced the appointment of Stuart Reid, a prominent figure in the broking industry, as Non-Executive Director. With over 35 years of experience in the insurance sector, Reid has held key leadership positions, including CEO at Stuart Alexander, CEO & Executive Chair at Bluefin, and CEO of UK Retail at A J Gallagher. He has also played significant roles at industry organisations, such as Deputy Chair of the British Insurance Brokers Association (BIBA) and Chair of BIBA’s Large Broker Committee. According to his LinkedIn, Reid’s contributions also extend to the Chartered Insurance Institute (CII), where he served as Vice President and Chair of the CII Broking Faculty. Currently, he holds positions as Chair at Partners& and Pikl and serves as a Non-Executive Director at Harbour Underwriting. (Kenneth Araullo, 5/9/2023, Insurance Business UK, 'Qlaims names broking figure as new non-executive director')

The MGA giant DUAL has announced the appointment of Simon McGinn as CEO of its UK business. McGinn joins the business from Allianz where he spent 19 years, most recently as CEO of Allianz Commercial, Allianz UK before stepping down earlier this year. In a press release, DUAL noted that the move is a “key appointment” that will see McGinn help lead ambitious plans to transform DUAL’s UK business, which currently underwrites £700 million GWP across 30+ business lines. (Mia Wallace, 4/9/2023, Insurance Business UK, 'Simon McGinn steps up as DUAL UK CEO')

Arch Reinsurance Ltd. has announced the promotions of Crystal Doughty and William Soares to the positions of Chief Underwriting Officer for Property and Chief Underwriting Officer for Casualty and Specialty, respectively. In addition, Pierre Jal, who previously served as Global Chief Underwriting Officer for Arch Re Ltd., has taken on the role of Chief Underwriting Officer for Arch Reinsurance Europe. Jal, now based in Zurich, will continue to oversee underwriting strategy across both Arch Re and Arch Re Europe. Matthew Dragonetti, President of Arch Re, will now have expanded responsibilities that include leading client-centric initiatives across the Arch Worldwide Reinsurance Group. (Steven Byerley, 4/9/2023, Insurance Business UK, 'Arch Re names key promotions')

Tim Crighton has been added to the retail management team at The Broker Investment Group (TBIG) as Marketing Director. Lifting the lid on the appointment, Group Chief Executive Dave Clapp said in an emailed release: “Tim has been working with us in a consultancy capacity for the last 12 months or so, and we worked together for many years growing The County Group. I am delighted he has decided to join us at The Broker Investment Group to help us deliver our ambitious growth plans." (Terry Gangcuangco, 4/9/2023, Insurance Business UK, 'The Broker Investment Group hires marketing director')

Sedgwick has announced the appointment of David Harrison as the Director of the company’s liability claims services division in the UK. Harrison has been part of Sedgwick since 2002 and has contributed to the growth and advancement of the company's claims services. Most recently, he held the position of leading Sedgwick's UK liability adjusting team. With a career spanning over three decades, Harrison has accumulated extensive experience in working with insurers and loss adjusting firms. He specializes in handling liability claims and has successfully managed a portfolio of intricate and high-value claims across various sectors, including retail, rail, manufacturing, and construction. (Kenneth Araullo, 4/9/2023, Insurance Business UK, 'Sedgwick elevates adjusting vet to lead UK liability claims')

Seventeen Group has announced the appointment of Howard Fryer and Ajay Tailor to the Seventeen Group Limited board. Howard Fryer joined Seventeen Group in 2015 and is the Chief Trading Officer of broking subsidiary James Hallam. He retains this role whilst also stepping up to the Group Board. Ajay Tailor joined Seventeen Group early in 2023 in his role as Group Chief Financial Officer. In addition to his appointment to the Seventeen Group board, Ajay also joins the subsidiary boards of James Hallam and Touchstone Underwriting. (Seventeen Group, 4/9/2023, youTalk Insurance, 'Seventeen Group announces new board appointments')

Global Risk Partners (GRP) Chief Executive Mike Bruce has been tapped to lead parent firm Brown & Brown’s European operations and is moving up to his new role as Brown & Brown Europe CEO. Bruce has been with GRP – the UK-based insurance intermediary acquired by Brown & Brown in July 2022 – since 2015. His credentials include time spent as Group Managing Director at Heath Lambert and as CEO at Bluefin. (Terry Gangcuangco, 8/9/2023, Insurance Business UK, 'Mike Bruce elevated to Brown & Brown Europe chief')

WTW is expanding its operations in the UK as part of its concerted efforts to bolster its growth. Key leadership appointments have been made for various regional offices as part of the company's commitment to enhancing its presence across the country. Sara Fardon has assumed the role of Head of WTW's Midlands office. She brings a 23-year career at the company to this new position, having previously overseen WTW's Network business, which collaborates with regional brokers. Chris Milnes, with nearly two decades of experience in the insurance industry, spanning national and international roles, has been appointed to lead WTW in both the North and Scotland. Graham Rutland, a seasoned professional with over 16 years of experience at WTW, is now the Head of WTW's Southern office. Beyond these appointments, WTW also announced the opening of a new office in Cardiff, in addition to its existing operation in Bristol. (Kenneth Araullo, 8/9/2023, Insurance Business UK, 'WTW expands GB operations with key appointments')

The specialist MGA and broker services platform OneAdvent has revealed it has completed a management buyout. The investment is led by current Managing Director Tim Quayle who is now taking on a new role as CEO. Meanwhile, former Group CEO and Founder David Hill, who is also part of the investment team, will remain with the firm as a Non-Executive Director. In a press release, OneAdvent stated that the MBO is aimed at boosting the business’s UK and European market presence and product offering. The funding raised will look to develop new partnerships and capabilities, while expanding OneAdvent’s ability to source and secure additional capacity for existing and new MGA and broker partners. (Mia Wallace, 5/9/2023, Insurance Business UK, 'OneAdvent completes management buyout')