Accessibility Links

General Insurance Newsletter Friday 2nd August 2019

02 Aug 2019

Insurance News

The deal to replace cover for customers of failed Danish provider Alpha with Latent Defect/Structural Damage policies has been thrown into doubt following news of "last minute issues". The Financial Services Compensation Scheme (FSCS), which has been monitoring the situation since Alpha collapsed, stated that it is not sure at this stage if the replacement agreement will be able to proceed.

Lloyd’s has announced that 11 InsurTech teams have joined the market’s Lloyd’s Lab incubator. The latest group is made up 7 UK based and 4 international firms, ClimaCell, Digital Fineprint, Flock, Floodflash, Hyperexponential, INARI, Insurdata, Oasis, Phinsys, Praedicat and Tautona AI.

RSA has reported an improved performance for the first half of 2019. Results published this week showed that group underwriting performance improved to £181m (excluding exits) compared to £171m in the first six months of 2018. Group total underwriting profit for H1 2019 was reported as £153m.

Mason Owen Financial Services Ltd has announced that a deal has been completed to acquire Business Insurance Services, a long-established insurance broking business situated on the Wirral. The Mason Owen Group Chairman, Barry Owen, said “we are delighted that the Business Insurance Services team are joining the Mason Owen Group. We share an ethos in terms of how we look after our tremendously loyal clients, which can only bode well for our future together.”

The in-progress collaboration between Fiat Chrysler Automobiles (FCA) and LexisNexis Risk Solutions in Europe will offer tailor-made insurance services to motorists to exploit on-vehicle connectivity, driving data and driver-assistance systems.

The UK government collected £6.3bn of Insurance Premium Tax (IPT) in the year ending 30 June 2019 according to figures from accountancy firm, UHY Hacker Young. The organisation calculated that this was a 7% rise on the year before and also stated that IPT receipts have more than doubled since £3bn was gathered in 2013/14 year.

Arch Capital Group has announced the purchase of Barbican Group Holdings for an undisclosed amount. Barbican Group Holdings includes Barbican Managing Agency, Arcus 1856 and Castel Underwriting Agencies. The purchase will be funded by US asset management firm Carlson Capital.

Results for the second quarter of 2019 revealed that Marsh spent $98m (£90m) during the same period to integrate the $5.6bn JLT deal. It is the first time results have shown the impact of JLT on Marsh’s overall numbers. In addition, the business spent $150m in costs related to the transaction and debt refinancing.

Van insurance premiums have risen 8.3% over the last year, according to research published by Consumer Intelligence. The analytics company’s latest Van Insurance Price Index found that the average premium for van drivers is now £1,171. Drivers who use their vans for business purposes attract a higher average premium of £1,202, while those who insure under ‘social, domestic and pleasure’ policies pay only £1,046 on average.

A study from Aviva finds that the vast majority of renting households do not have protection insurance – life insurance, critical illness cover or income protection – which provides financial support to an individual and their families if an income is lost through serious illness, injury or death. The survey reveals just one in five renting households has life insurance, compared to three out of five (58%) households with a mortgage. This suggests almost 8 million renting households could be without life cover. Just 3% of renting households have critical illness cover or income protection.

Direct Line Group, parent firm of NIG, has reported an improved COR of 92.5% for the first half of 2019 compared to 92.9% in the same period last year. The organisation attributed some growth to the performance of its commercial division, which includes NIG. The results noted that NIG and other in-force policies grew by 2.4% to 251,000 (H1 2018: 245,000).

Sabre has unveiled its company results for the first half of the year ending 30 June 2019, with a slight fall in profits. It’s profit before tax fell by £1.5m, reaching £30.5m, compared to the same period last year when the provider hit £32m. The firm’s combined operating ratio (COR) deteriorated slightly from 68.6% in H1 2018 to 71.5% by the end of this June.

Following the Grenfell Tower fire, the Society of Insurance Broking has produced a guide highlighting the need for Brokers to be better informed on safe and recommended construction materials in order to provide the most appropriate coverage for their clients.

Lloyd’s accredited broker G&M International has added Intellectual Property (IP) Insurance to its product portfolio. According to the provider, the IP cover has been designed to protect intangible assets from potential infringement caused by competitors. For example, protecting businesses ideas, designs, logos, patents and much more.

Customers arranging car insurance through GoCompare are set to benefit from financial assistance aimed at reducing the cost of making a claim, as part of an innovative campaign to raise awareness of insurance excesses. GoCompare Car Insurance is giving away free £250 excess cover to every customer who buys a qualifying car insurance policy. Customers who need to make a claim on their car insurance policy will be reimbursed up to £250 excess when their car insurance claim has been settled.

Nexus has announced the acquisition of Plus Risk Limited (PRL) for an undisclosed amount. PRL is a London-based financial and professional lines managing general agent (MGA).

The Financial Conduct Authority has published an update to its Senior Managers and Certification Regime (SM&CR). Changes made as result of a consultation include: excluding the head of legal from the requirement to be approved as a Senior Manager; altering the intermediary revenue criteria for the extended regime and the clarification of the requirements and scope of the Certification Regime.

Aston Lark has made a profit of £7m (2017: £25.2m) according to results for the full year ending 31 December 2018. Turnover for one of the business’s entities was reported to Companies House as £37.4m (2017: £4.7m) with expenses hitting £31.3m (2017: £19.8m). This is the first full set of results since the Aston Scott and Lark Group merged in 2017.

The Association of British Insurers (ABI) found that the average price of Motor insurance in Q2 increased by £1 since Q1 to £467. A contrast with the previous quarter which saw a £15 fall in premiums. This time last year the ABI index showed cost of cover fell by £10 per policy.

Hiscox has revealed that its UK business has shrunk in half-year results for 2019. Gross written premium at Hiscox UK fell 1.7% from $385.2m (£312.2m) in H1 2018 to $378.5m (£306.8m) in H1 2019. The Bermuda-headquartered company blamed the integration of a new IT system for disrupting its UK operations.

The Association of Consultant Approved Inspectors (ACAI), the body which represents the majority of the UK’s private approved inspectors (AIs) and almost half of the building control industry, has called on newly appointed Housing Secretary Robert Jenrick MP to urgently review the government-regulated AI Scheme of Insurance to prevent major disruption to construction projects across the UK.

 

Market Movers and Shakers

ERS has announced changes to its executive team which include former Chief Actuary at Lloyd’s Henry Johnson taking up a newly opened up CRO position. Ryan Warren will transition to Katie Wade’s CFO role from CRO once regulatory approval is met.

Tokio Marine HCC have announced the appointments of Media specialist Underwriters Stuart Wolstenholme and Lucy Smith as it continues to expand its international Media, Film & TV capabilities within its Professional Risks division.

Matthew Gooden has been appointed as Director and Head of Sales across its Professional Indemnity team at Willis.

EC3 Brokers announces the expansion of its UK Contingency and Entertainment division, with the appointments of Rick Inglessis as Entertainment Development Executive, Sheryl Harta as Senior Account Handler and Caroline Taylor as Operations Manager. All three joined last month and will report to Charlie Connell, Head of Contingency and Entertainment at EC3 Brokers.

AXA XL Insurance have announced the appointment of Simona Fumagalli as Head of International Financial Lines, Europe, based in Milan. In her new role, Ms. Fumagalli will be responsible for developing the business line’s underwriting strategies and product offering for Europe.

Markel International, the specialist Insurer, has appointed Chris Burgess to head up its Cyber team in London. Chris joins Markel with over 15 years of experience working in financial and professional lines insurance, having held a variety of roles throughout his career, most recently as UK Cyber Leader at AIG.

Allianz has announced that Steve Kelly will be promoted to the role of Underwriting Account Manager for Allianz Engineering, Construction & Power. In his new role Steve will be responsible for the strategic leadership of the Allianz Engineering, Construction & Power portfolio including the setting of risk appetite and pricing, overseeing engineering inspection pricing & segmentation.

HSB Engineering Insurance (HSB) has appointed Alan Cain as Product Leader for Equipment Breakdown and Energy. Alan will be responsible for the product ownership and portfolio management of HSB’s equipment breakdown and energy accounts.

Willis Towers Watson has appointed Peter Foster as chairman of Global FINEX Cyber and Cyber Risk Solutions.  Foster has been with Willis Towers Watson for over 14 years and has been instrumental in building the company’s global Cyber capabilities.

Marsh has announced the appointment of Ian Drillot as Head of Office, Marsh Captive Solutions, Guernsey. One of Marsh’s longest-standing captive offices with a presence on the island since 1975, Marsh Captive Solutions’ Guernsey office provides captive insurance and risk advisory services to Marsh’s clients worldwide.

 

All information provided in this Market Digest has been gathered from multiple General Insurance Media sources and individual company press releases.

Meet our specialist General Insurance team here

 

IDEX Consulting are proud to have teamed up with the Insurance Times to bring you the latest news on salary movements and job prospects across the UK General Insurance sector.

Please follow this link to read the article and if you would like to download the full salary guide, its available here.

Tagged In: General Insurance
Add new comment
*
*
*
Our clients include: