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General Insurance Newsletter Friday 13th October 2023

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Insurance News

​Lloyd’s has unveiled a systemic risk scenario that models the potential worldwide economic fallout resulting from extreme weather events leading to food and water shocks. The estimated loss over a five-year span, as per the model, stands at a staggering $5 trillion. This scenario delves into a hypothetical yet plausible uptick in extreme weather events, intimately tied to the climate change narrative, that could trigger crop failures in vital agricultural regions, subsequently causing severe global shortages of food and water. As the scenario unfolds, it paints a grim picture of widespread disruption, damage, and substantial economic losses. This, in turn, could spark profound shifts in geopolitical alignments and consumer behaviours. (Kenneth Araullo, 12/10/2023, Insurance Business UK, 'New data tool underscores impact of extreme weather events')

​A subsidiary of US insurer Allstate is said to be cutting more jobs in Northern Ireland following staff redundancies made earlier this year. BBC News NI cited an Allstate spokesperson as pointing to a ‘transformation’ of how the business operates. Job cuts in July were attributed to a restructuring. The spokesperson was quoted as saying: “When employees are affected by these changes, we help them find new opportunities at Allstate or provide job placement and financial support.” (Terry Gangcuangco, 12/10/2023, Insurance Business UK, 'Allstate subsidiary to cut more jobs in Northern Ireland – report')

PwC is suggesting that the ride towards Solvency II changes in the UK is likely to be a bumpy one. “The proposed unleashing of investment from the insurance industry as part of the government’s Solvency II reforms may face steep implementation and governance challenges, according to new analysis by PwC UK,” the accounting giant said in an emailed release. (Terry Gangcuangco, 12/10/2023, Insurance Business UK, 'UK Solvency II reforms likely to face “steep” implementation challenge, says PwC')

In April of this year, it was revealed that Marsh McLennan’s reinsurance broking arm Guy Carpenter had issued a lawsuit against Howden Tiger in London after the latter was accused of poaching over 30 people from Guy Carpenter’s European operations. According to an internal memo, the impending lawsuit has since been settled ahead of going to trial, with its resolution seeing Howden agree to a set of demands “to make amends for their actions” against Guy Carpenter. (Mia Wallace, 11/10/2023, Insurance Business UK, 'Howden issues apology to Guy Carpenter amid poaching allegations settlement')

Placing Platform Limited (PPL) has tapped WTW and Tysers for the pilot of its new generation of market APIs (application programming interfaces). “We are delighted to partner with PPL on the API pilot,” Tysers Chief Information Officer Steve Jolley said in an emailed release. “We see this as an important step forward for the market in its journey towards fully digital transactions and claims.” Taking place this quarter, the pilot is designed to exercise and validate the end-to-end integrated process. From early next year, prior to open market release, there will be releases to early adopter brokers and insurers. (Terry Gangcuangco, 11/10/2023, Insurance Business UK, 'PPL taps WTW, Tysers for API pilot')

The British Columbia Automobile Association (BCAA) has partnered with Ireland-based Blink Parametric to introduce a bundled parametric travel insurance product suite. BCAA will be piloting the new offering as an option within its single trip travel insurance policies. The suite includes two key features: flight disruption and lost/delayed luggage assistance, designed to provide immediate support and alleviate the stress associated with travel inconveniences. (Mika Pangilinan, 11/10/2023, Insurance Business UK, 'Association works with Blink Parametric to launch travel product suite')

In its latest sigma study, Swiss Re Institute finds that potential digitalisation benefits across countries and throughout the insurance value chain are far from exhausted. According to the reinsurer’s “The economics of digitalisation in insurance” sigma report, digitalisation is a source of new growth, new risks, and new efficiencies for the insurance industry. Digital value creation has led to an increase in firms' intangible assets, including digital data. At the same time, increased dependency on digital infrastructure makes such assets more vulnerable, e.g., to business interruption and cyberattacks. (Kenneth Araullo, 11/10/2023, Insurance Business UK, 'Insurance innovation necessary amid new digital risks')

Embedded insurance provider Pattern has entered a partnership with Giggster, a platform for event venue and production bookings, to provide event liability insurance within the production and event booking sector. Integrating within the Giggster platform, Pattern's insurance offering gives customers the option to select event liability insurance as part of their booking process. This product is crafted to accommodate a diverse array of pre-approved production and event activities, including weddings, birthday parties, baby showers, or engaging in production projects like filming, green screen endeavours, or photo shoots. (Kenneth Araullo, 10/10/2023, Insurance Business UK, 'Pattern collaborates with Giggster for event planning protection')

The Chartered Insurance Institute (CII) Group has published its comprehensive qualifications brochure for the year 2024, outlining a spectrum of learning opportunities and assessments available to professionals in the insurance, financial planning, and mortgage advice domains in the upcoming year. For 2024, the CII Group has strategically emphasised technical training workshops to enrich participants' understanding of essential topics, ranging from introductory levels to specialised fields of expertise. Additionally, a diverse array of revision courses is on offer aimed at maximising success in CII assessments. (Kenneth Araullo, 10/10/2023, Insurance Business UK, 'CII publishes new qualifications brochure for 2024')

​RSA reaffirmed its dedication to promoting menopause support in the workplace during a recent engagement with Annelise Dodds MP, the Shadow Women and Equalities Secretary and Chair of the Labour Party. Dodds’ party introduced a policy earlier this year that requires large employers to develop and execute a Menopause Action Plan, outlining support measures for employees experiencing menopausal symptoms. RSA welcomed the MP and her team to its Liverpool office to discuss these efforts. (Mika Pangilinan, 10/10/2023, Insurance Business UK, 'RSA hosts Labour MP to discuss menopause support in the workplace')

The lengthy M/T Prestige oil spill legal battle between the London P&I Club and Spain continues with a new ruling in the UK. In 2022, the Court of Justice of the European Union found that the arbitration proceedings initiated by the insurer in the UK cannot block the recognition of the Spanish judgment ordering the London P&I Club (formally known as the London Steam-Ship Owners’ Mutual Insurance Association Limited) to pay compensation for the damage caused by the Prestige oil spill back in 2002. Now, in London, High Court Judge Mr Justice Butcher has ruled in favour of the British insurer. (Terry Gangcuangco, 10/10/2023, Insurance Business UK, 'Court rules in favour of London P&I Club in oil spill case against Spain')

Benefact Group’s Provenance Insurance Brokers and Aberdeen-headquartered automotive business John Clark Motor Group have partnered to form John Clark Motor Insurance Services. “This partnership will create a real force by delivering products and services that are tailored to meet individual customer needs,” Provenance Automotive Partnerships Director Chris McDonald said in an emailed release. “By harnessing our collective strengths, we believe we can set new standards of excellence in this sector.” (Terry Gangcuangco, 9/10/2023, Insurance Business UK, 'Partnership creates John Clark Motor Insurance Services')

Professional indemnity (PI) cover provider Trafalgar Risk Management issued a warning indicating that insurers have been making substantial claims payments in recent years, and this trend is expected to persist. The broker emphasises that even if inflation begins to recede, the issue of rising insurance premiums will not reverse immediately. Insurance premiums, both for personal and business coverage, are anticipated to remain elevated in the foreseeable future, as highlighted by a UK insurance specialist and coming on the heels of widespread reports of soaring insurance costs for electric vehicles. (Kenneth Araullo, 9/10/2023, Insurance Business UK, 'Insurance premiums to remain costly, PI firm says')

The Transition Plan Taskforce, which is co-chaired by Aviva Chief Executive Amanda Blanc and HM Treasury Lords Minister Baroness Joanna Penn, has launched the TPT best practice Disclosure Framework for climate transition plans. Livestreamed from the London Stock Exchange, the event was opened by London Stock Exchange Group CEO David Schwimmer along with Baroness Penn and Blanc. The unveiling will feature panel discussions on using the framework in practice and on transition planning in the UK and international corporate reporting. Informed by the principles of ambition, action, and accountability, the TPT Disclosure Framework aims to support the creation of consistent, comparable company reports while reducing the level of disclosure complexity. The goal is for the framework to be the “gold standard” when it comes to climate transition plans. (Terry Gangcuangco, 9/10/2023, Insurance Business UK, 'Amanda Blanc, Baroness Penn launching Transition Plan Taskforce’s best practice Disclosure Framework')

Ascot Group has announced the appointment of Mark Wilcox as the new Group Chief Financial Officer. He is joining Ascot from Selective Insurance Group, where he held the position of Executive Vice President and Chief Financial Officer. At Selective, he was responsible for overseeing the firm's global finance operations and capital management strategy, among other crucial aspects. During his tenure, he played a pivotal role in modernising the company's financial reporting process and contributed to driving significant shareholder value. Prior to his tenure at Selective, Mark spent over 13 years at Renaissance Re in Bermuda, where he held key roles such as Senior Vice President, Corporate Controller, and Chief Accounting Officer. (Kenneth Araullo, 9/10/2023, Insurance Business UK, 'Ascot Group adds new chief financial officer')

Seventeen Group has released its 2022 results. Overall Group income rose by 19% from £31.2M to £37.2M and adjusted EBITDA increased by 34% from £4.8M to £6.4M. Four acquisitions were made in 2022 and when the full year impact of these acquisitions are taken into account our EBITDA increases to £7.6M. Whilst acquisitions have long been part of Seventeen Group’s growth strategy, organic growth remains key. The broking subsidiary, James Hallam, has seen the Hospitality Division grow from £2M to £2.6M in the period and the new Events Team (established in late 2021) grew to £628K. (Seventeen Group, 9/10/2023, youTalk Insurance, 'Seventeen Group announces 2022 results')

Allianz Commercial UK has seen a marked increase in casualty fraud in the first six months of 2023. The claims teams at Allianz have successfully prevented £38.4m worth of Commercial insurance fraud since the start of 2023 with over half of that being related to casualty fraud, particularly fraudulent major loss claims. Overall Allianz has seen a £2m increase in fraud savings against the prior year. This highlights the improvements the business has made with early detection, through the analysis of data from machine learning, which assists in finding suspect claims. (Allianz, 12/10/2023, youTalk Insurance, 'Mid-year results show leap in UK casualty fraud & application fraud cases')

REG Technologies are hosting a 'Mind Matters' event on the 14th of November, at 22 Bishopsgate. Their expert panel will be sharing their experiences and insight on men's mental health in support of 'Movember'. The panellists will be discussing the challenges and stigmas men face regarding mental health at work and how employers and colleagues can work together to better support the mental wellbeing of their male peers. To register for the event, click here.

​Ukraine has launched a comprehensive data platform aimed at enabling insurers, investors, and governments to scrutinise war risks within the nation. Professional services firm Marsh McLennan played a key role in assisting the Ukrainian government in conceptualising and testing this platform to further underline its commitment to supporting Ukraine's recovery and transformation. (Kenneth Araullo, 13/10/2023, Insurance Business UK, 'Ukraine opens Marsh McLennan-supported data platform for war risk analysis')

Specialist motor insurer ERS has announced plans to fill 50 job vacancies at its Swansea headquarters over the next few months. The move is part of a substantial investment in its largest office, driven by the company’s rapid growth in recent years. ERS currently employs nearly 500 people at its 33,000-square-foot site in Crucible Park, Swansea Vale. The company first established its presence in Swansea in 1994 and subsequently relocated several skilled roles from London to the area in 2015. (Mika Pangilinan, 13/10/2023, Insurance Business UK, 'ERS accelerates growth with recruitment drive')

A new aviation-focussed managing general agent has been created by alternative investment manager Castlelake and Fidelis MGU subsidiary Pine Walk Capital. Called Itasca MGA, the new business will specialise in underwriting, structuring, and managing risk associated with secured commercial aviation financing on behalf of Castlelake’s Itasca Re and Fidelis MGU. It is the eighth MGA established by Pine Walk since launching in 2017. (Terry Gangcuangco, 13/10/2023, Insurance Business UK, 'New aviation managing general agent lands')

Global commercial property & casualty (re)insurer Sompo International is now a partner of the British Insurance Brokers’ Association (BIBA). “It is very encouraging to welcome Sompo into membership given their stature as a global insurer with a strong desire to grow in the UK insurance market with a focus on the regions,” BIBA Chief Executive Graeme Trudgill said in a release. (Terry Gangcuangco, 13/10/2023, Insurance Business UK, 'Sompo International becomes a BIBA partner')

Mergers & Acquisitions

​MarshBerry – a global M&A advisory firm for insurance brokers and wealth management firms – has announced its acquisition of IMAS Corporate Finance LLP (IMAS). A leading M&A advisory firm in the UK insurance and wealth segments, IMAS has been owned by its partners since 1992. Under the closing terms of the deal, the partners will become part of MarshBerry as leaders, advisors and stockholders. (Insurance Business UK, 11/10/2023, 'MarshBerry snaps up leading UK M&A advisory firm')

​Insurance provider handl Group has formally agreed to acquire the entire share capital of auto locksmith firm We’ve Got The Key (WGTK), with the ambition of doubling the company's size within 18 months. The move also comes after the appointment of Peter Crellen as the Managing Director. Chris Chatterton, Chief Commercial Officer for handl, emphasised the new management's significant investment in “people plus technology,” aligning with handl's core theme. With this, WGTK aims to achieve a 4-5% market share in the auto locksmith sector, with an additional goal of doubling callouts from 50,000 to 100,000 annually and expanding their services to assist motor insurers with key-related claims. (Kenneth Araullo, 11/10/2023, Insurance Business UK, 'handl gets the Key in latest acquisition')

​Howden, the global insurance group, has announced that it has acquired Wide Care Services (Wide Care), a specialist Italian Employee Benefits service provider that has pioneered a proprietary platform for health and welfare management. This acquisition underlines Howden’s continued investment in expertise, talent, and data and technology for the benefit of Italian and multinational clients. Wide Care has been leveraging its innovative technological solutions since 2006 and provides advanced administrative services for supplementary healthcare programs and pension funds. (Howden Group, 12/10/2023, youTalk Insurance, 'Howden buys Italian employee benefits service provider')


​LexisNexis Risk Solutions has made two senior appointments within its insurance leadership team for the UK and Ireland, naming Tom Lawrie-Fussey as Senior Director of Product Management and Aishling Meyler as Associated Vice President Technology. Lawrie-Fussey steps into his new role following a year-long tenure as Automotive Director. In his previous position, he spearheaded the launch of LexisNexis Vehicle Insights, a vehicle-centric data enrichment solution tailored for motor insurance providers. Meyler assumes the role of Associate Vice President of Technology with over 20 years of experience in software engineering. She was previously Senior Director of Software Engineering and has expertise in delivering technology-focused projects at scale for the insurance market. (Mika Pangilinan, 12/10/2023, Insurance Business UK, 'LexisNexis Risk Solutions reveals senior insurance appointments')

The Ardonagh Group’s Inver Re has snapped up Advisory Head Mark Shumway from Howden Capital Markets. Shumway, who launched Howden Capital Markets and was Head of Advisory at what was Howden’s data and analytics division HX, will assume the same position at Inver Re. At the reinsurance broker, Shumway will lead a new advisory practice. (Terry Gangcuangco, 12/10/2023, Insurance Business UK, 'Inver Re swoops for advisory head from Howden')

DUAL has announced the appointment of David Harries as Group Director of Underwriting, effective from January 2024. Before joining DUAL, Harries was associated with Berkshire Hathaway Specialty Insurance, where he held the position of Executive Underwriter. With a career spanning over 30 years, he held various roles at QBE, including Head of Financial Lines and Active Underwriter at Syndicate 386. Harries has also managed teams of underwriters in both Lloyd's and Company Markets. (Kenneth Araullo, 12/10/2023, Insurance Business UK, 'DUAL names new group director of underwriting')

American International Group (AIG) has announced three new leadership appointments. David McElroy, currently CEO of General Insurance, has been appointed to the newly created role of Chairman of General Insurance. Don Bailey, currently Global Head of Distribution and Field Operations, has been appointed as CEO for North America Insurance and Jon Hancock, currently CEO of International General Insurance, will become CEO of International Insurance, effective on the 1st of January. (Ryan Smith, 11/10/2023, Insurance Business UK, 'AIG reveals leadership changes')

​The Aventum Group’s international insurance broker Consilium has hired James Read as Associate in Guernsey as part of expansion plans in the Channel Islands. The key hire brings 16 years of sales and marketing experience to Consilium. His credentials include nearly nine years spent at Specsavers where he served as Sports Sponsorship Head. (Terry Gangcuangco, 11/10/2023, Insurance Business UK, 'Consilium to grow Channel Islands presence with new hire')

JM Glendinning Professional Risks, part of the JMG Group, has appointed David Burnhope as its new Client Director, focussing on professional indemnity insurance (PII) for the property industry. Burnhope has over 13 years of industry experience. He most recently served as Account Executive at PIB Insurance Brokers, where he specialised in PII for surveyors and architects. Burnhope began his insurance career at NFU Mutual and also spent time at Cowens Group as a Commercial Account Executive. (Mika Pangilinan, 11/10/2023, Insurance Business UK, 'JM Glendinning Professional Risks brings in PII specialist')

Global law firm Kennedys has expanded its corporate and commercial practice group by appointing Andy Brown, an expert in tax disputes and investigations, and his team. With over 25 years of industry experience, Brown brings a wealth of knowledge in advising on various forms of tax-related disputes, investigations, money laundering, fraud, and other tax-related crisis situations. In his new role, Brown will be accompanied by his former associates, Chris Young and Jennifer Southern. Young, with prior experience at PwC Legal and DWF, and Southern, a Barrister and former Lawyer at HMRC, will work alongside Brown in London, serving clients across the firm’s global offices. (Kenneth Araullo, 10/10/2023, Insurance Business UK, 'Kennedys taps tax dispute experts to bolster corporate practice')

Rokstone, Aventum Group’s international managing general agency (MGA), has welcomed Jordan Lanford as the Global Head of Aviation, based in Atlanta. Lanford will assume his position at Rokstone later this month after completing his notice period at AIG, where he held the position of Head of Aerospace for North America. With over two decades of experience in the aviation industry, Lanford spent 17 years at AIG and initiated his career as a Commercial Pilot and Flight Instructor. (Kenneth Araullo, 10/10/2023, Insurance Business UK, 'Rokstone names global head of aviation')

Crawford & Company’s UK & Ireland President Lisa Bartlett, who has held her current position for four years now, has been promoted to Chief Operating Officer of the Atlanta-based firm’s international operations. Effective next month, the appointment will see Bartlett take on a dual role in which she will continue to be in charge of the UK and Ireland while serving as International COO at the claims management giant. As part of her wider remit, Bartlett will be working closely with International Operations Chief Executive Andrew Bart. (Terry Gangcuangco, 10/10/2023, Insurance Business UK, 'Crawford & Company widens UK & Ireland president's remit')

​Aspen Insurance Holdings has hired seasoned Commercial Property Underwriter Graeme Owens as Head of the Company’s UK Business & Community Property team. Owens joins from Swiss Re Corporate Solutions. He most recently served as Global Standard Property Products Director, bringing more than three decades of industry experience to Aspen. His credentials include roles at Allianz, AIG, and Allied World. Owens succeeded Adrian Jackson, who recently retired. (Terry Gangcuangco, 10/10/2023, Insurance Business UK, 'Aspen snaps up property hire from Swiss Re Corporate Solutions')

​Two new colleagues have joined the Continental Europe insurance leadership team at Sompo International. Munich Re alumnus Herndon Stokes made the switch from AXIS Re to serve as Sompo International’s Head of Distribution & Client Relationship Management, Insurance, Continental Europe. Ex-Allianz claims specialist Anna Lisiak, meanwhile, came from Generali Global Corporate & Commercial to take on the Claims Head post for Continental Europe insurance. (Terry Gangcuangco, 10/10/2023, Insurance Business UK, 'Sompo International adds insurance leaders for Continental Europe')

Global reinsurance broker Gallagher Re has welcomed Jonathan Allard as the Managing Director and Head of its newly established global credit and political risk team, based in London. With vast experience in the reinsurance market, Allard has been a specialist in credit, surety, and political risk from the onset of his broking career. He arrives from Renaissance Re, where he served as Vice President of Underwriting, overseeing the management and underwriting of credit, surety, and political risk reinsurance, along with structured credit portfolio accounts on European and Lloyd’s balance sheets. Prior to this role, Jonathan spent a decade broking credit, surety, and political risk at Willis Re. (Kenneth Araullo, 9/10/2023, Insurance Business UK, 'Gallagher Re appoints global credit and political risk leader')

QBE Europe has appointed Erik Keller as Head of Liability. Erik has 30 years’ experience in commercial insurance, with most of his career spent in multinational business. He has been in the role of Regional Underwriting Manager for QBE Germany since 2017. Before joining QBE as Liability Portfolio Manager in 2011, Erik held various underwriting and trading roles at Chubb, RSA, and Construction Insurance Specialist VHV, building his experience in casualty underwriting and portfolio development. (QBE, 12/10/2023, youTalk Insurance, 'QBE promotes internally for European Head of Liability')

PIB Group Ltd has strengthened its European leadership team with the appointment of Mandy van der Zalm as Chief Broking Officer (CBO). Her appointment signals PIB’s ongoing ambition of building a leading specialist and diversified pan-European insurance distribution business. Mandy is a Senior Executive with a successful career of over 30 years. She trained and worked as a qualified Corporate Lawyer before joining Aon. Most recently she held the role of Chief Broking Officer for Aon Risk Solutions Nederland. Prior to this, Mandy held senior positions including Managing Director Public & Business Services and Construction, as well as Managing Director for Aon Professional Services. (PIB Group, 12/10/2023, youTalk Insurance, 'PIB Group appoints Chief Broking Officer for Europe')

In further news...PIB Group Ltd has announced the appointment of Zach Gray as CEO for the Specialty Division, with Steve Redgwell taking on the role of Chair. Joining PIB six years ago, Zach has held several roles within the Division including Account Director, Regional Managing Director, Managing Director of Specialisms, and Deputy CEO for the Specialty Division. Zach joined PIB when the Group acquired DE Ford in York. (PIB Group, 9/10/2023, youTalk Insurance, 'PIB Group announces Zach Gray as CEO for Specialty Division')

​Marsh McLennan has announced the appointment of Pat Tomlinson as President of its subsidiary, Mercer. Tomlinson succeeds Martine Ferland, who will remain CEO of Mercer and Vice Chair of Marsh McLennan and will oversee Mercer’s regional leaders until her retirement in March of next year. In his new role, Tomlinson will be responsible for Mercer’s global health, wealth and career practices. In the near term, he will also retain his current responsibilities as CEO of Marsh McLennan US and Canada and president of Mercer US and Canada. He will report to Ferland. (Ryan SMith, 13/10/2023, Insurance Business UK, 'Mercer taps new president')

Aventum has announced the appointment of Robert Moorehead-Lane as Chief Risk Officer, which it says underscores the company's dedication to effective risk management and delivering value to its stakeholders as it prompts growth in the industry. With a 25-year tenure in the financial services sector, Moorehead-Lane brings a wealth of experience to his new role, having previously served as the Chief Risk Officer at Aspen Insurance Group. He has also held positions at Grant Thornton, Assurant, and KPMG, where he honed his expertise in risk strategy, framework development, strategic transformation, regulatory policy making, solvency, and risk-based capital solutions. (Kenneth Araullo, 13/10/2023, Insurance Business UK, 'Aventum selects group chief risk officer')

All information provided in this Market Digest has been gathered from Insurance Business UK.