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General Insurance Newsletter Friday 4th June 2021

04 Jun 2021

Insurance News

Insurance claims tainted with fraud growing by 10% in 2020 during the height of the pandemic, according to figures from Aviva. The Insurer explained that it had uncovered more than 12,000 instances of claims fraud in 2020, worth more than £113m. Aviva detailed that it had also identified fraud on more than 29,000 Motor policy applications, up 34% on its 2019 figures.

New research from Premium Credit has showed that the coronavirus pandemic and the hardening market have pushed SMEs and corporates to borrow more in order to purchase business insurance, with Owners most likely to rely on credit cards. The premium finance Provider’s nationwide study among SME Owners and Managers found that one in four firms are borrowing more than last year, the average additional credit coming to nearly £1,300.

Zurich Insurance has stated that it does not have any current plans to reduce its office footprint after the pandemic. This follows speculation in the market that the Insurer had closed down its Granary Wharf office in Leeds.

Specialist Insurer Financial and Legal (FLI) has unveiled a new excess protect product range which will be distributed via Brokers. The offering covers excess losses on Home, Motor, and Bike as well as a Combination Product.

With the Financial Conduct Authority’s (FCA) new rules on pricing, auto-renewal and data reporting remedies coming into effect on 1 January 2022, companies must now take heed of the regulator’s recent directives and make sure customers are getting ‘fair value’ when purchasing a policy. The British Insurance Brokers Association (Biba) and the Association of British Insurers (ABI) have been supportive of the new measures and deemed the ban on dual pricing beneficial for customers.

Small businesses in the UK are being offered free Cybersecurity insurance, thanks to a newly launched partnership between SME insurance Provider Superscript and cybersecurity specialist CyberSmart. “With a significant uplift in cyberattacks recently, it is more important than ever that small businesses have Cyber protection that gives them the confidence to grow,” said Superscript Partnerships Director Henry Newby. “Superscript’s partnership with CyberSmart does just this. CyberSmart is the prevention, while Superscript is the cure. You can have both.”.

Victor, a global Managing General Underwriter, has announced the launch of Victor Contract Sifter, an automated contract review tool for design professionals in the design and Construction industry. Victor Contract Sifter enables users to more efficiently and effectively manage their contractual risk. In collaboration with LegalSifter, a contract-review technology, insured design firms will have on-demand access to automated, efficient distillation of their service agreements when contracting to perform work for their clients, Victor said.

Berkshire Hathaway Specialty Insurance (BHSI) has made its way to the French Marine market, marking its entry with the launch of a full line of Marine insurance products. The new product line in France will be led by Paris-based Marine Head Muriel Birre Julvécourt. BHSI’s proposition spans inland Marine, Ocean Cargo, Stock & Transit, Project Cargo, Freight Forwarders Liability, Ports & Terminals, and Subsea insurance.

Claims management giant Sedgwick has partnered with multiple charitable organisations in the UK to demonstrate its commitment to helping communities and to strengthening the impact of its corporate citizenship activities across the country. Sedgwick is the first loss adjusting and insurance services firm in the UK to sign the Race at Work Charter and support the initiative led by Business in the Community (BITC) – expanding its commitment to promoting diversity across all levels of the company, prioritising racial equality, and placing diversity and inclusion at the centre of its work culture.

As COVID restrictions eased and Britons got back on the road, Motor claims increased by 30% in May compared to the beginning of the year, according to data from LV= General Insurance. As the UK began reopening in mid-April, the number of accidents also increased, with a higher proportion taking place in car parks and on motorways than at any time since March 2020, the Insurer said.

Willis Towers Watson has announced the launch of a new Sports & Entertainment Industry Group which will support the Willis Towers Watson (WTW) global network with Sports & Entertainment (S&E) organisations, to identify, mitigate and transfer risks associated with the sector.

Remember the Central Bank of Ireland’s probe into two former Directors of under-administration Quinn Insurance Limited (QIL)? It’s now been revealed just how much was spent on the investigation, which spanned half a decade. According to the regulator’s 231-page annual report and annual performance statement, the probe – which was commenced in 2015 and concluded last year – involved total costs amounting to €1,896,303. Of the sum, €954,562 was incurred for document management and stenography services; €725,539 for legal professional fees; and €216,202 for fees and expenses of inquiry members.

Marco Insurance PCC Limited can now operate as a Property and Casualty insurance and reinsurance company. Licensed for all 18 classes of non-life insurance and reinsurance, Malta-based Marco Insurance PCC is a subsidiary of Marco Capital Holdings Limited (Marco) – the European P&C insurance run-off group that acquired British Reserve Insurance Company Limited from Allianz UK in 2020.

The London Market Group (LMG) has created a new recruitment portal for the industry. The group seeks to promote the London Market and make visible the roles it has to offer to new and returning talent – regardless of location. The new hub provides a single location for Insurers, Brokers and service providers in the London market to post jobs. These jobs will be made available to thousands of students who have previously attended graduate fairs and other student employment events with the LMG.

There are only four months to go until IDEX's Lands End to John O'Groats bike ride, raising money for mental health charity 'Fight for All the Feels'. We have recruited 10 brave souls to undertake the challenge, with representatives from NFU Mutual, Aviva, Gymshark, Broker Network, Mitie and Geo Underwriting. If you'd like to support their efforts, follow the link where you can make a small donation, and if you'd like more information contact Rebecca Howarth - rebecca.howarth@idexconsulting.com.

Sponsorship link: https://lnkd.in/egmBDy7

Mergers & Acquisitions

Ethos Broking UK has announced its third purchase of the year as it brings Drayton Insurance Services into the group. The acquisition was made through Ethos Broking’s Norwich-based regional broking hub, Hugh J Boswell and is said to expand the company’s reach in the East Anglia region.

Intact Financial Corporation and Tryg have completed the acquisition of RSA Insurance Group. Canadian provider Intact has taken ownership of RSA’s Canadian, UK and International business, while Danish Insurer Tryg has bought the Sweden and Norway operations. The two providers also jointly own RSA’s Danish business.

Partners&’s purchase of Town and Country will give the business “critical mass” in Devon and Cornwall, according to Chief Executive Officer Phil Barton. Barton said that Partners& already had smaller offices in Okehampton, Newquay and Plymouth prior to the deal, but that it had been looking for a Broker that could serve as a hub in the South West.

Aviva plc and Darwin Innovation Group are pleased to announce that they are entering into a five-year strategic partnership, beginning with collaboration on an exciting autonomous vehicle trial.

Managing General Agent CPP Group UK has secured a three-year contract with insurance Broker Partners& on the former’s cybersecurity offering. Under the new contract, Partners&’s Advisers will have access to the Cyber insurance product CPP Secure through the administration platform Acturis. CPP Secure was first introduced by Acturis in 2019, and was the first SME-specific Cyber add-on for general commercial use on the platform.

Parhelion, claiming to be the world’s first fully sustainable Insurer, is set to launch with backing from Howden Broking. The provide stated that is targeting a capital raise of $500m (£353.7m) and is being advised by Howden Capital Markets and TigerRisk Capital Markets & Advisory.

Movers & Shakers

Marsh has announced the appointment of Andy Desmond as UK & Ireland Construction Industry Leader. Desmond will report to Scot Peachey, CEO of the UK Construction, Infrastructure & Surety Practice at Marsh Specialty and Charles Beresford-Davies, Head of Industries, UK & Ireland.

Darag has announced several key senior appointments as it seeks to expand its reach across Europe and North America. The group has appointed Alastair Lauder as Group Chief Actuary. Alastair Whitfield also joins Darag as Group Head of Investments. In addition, Darag appointed Ciaran Russell as Senior Actuary in North America, while also welcoming Vivek Bhandari as Head of Data and Matt Watson as Group Head of IT.

First Central Group (FCG) has revealed that Craig Morton, its current Deputy Chief Financial Officer, will succeed John Kennedy as CFO. After three years, Kennedy will be stepping back from the group CFO role to spend more time with his family but will remain as CEO of First Central Insurance Management, the Motor insurance Broker within FCG.

Applied Systems has named Tom Needs as Chief Executive Officer of Applied Systems Europe, taking over from Andy Fairchild. A spokesperson for Applied stated that Fairchild had “made the personal decision to take a step back and leave Applied to reassess his next steps”.

AXIS Insurance, the specialty insurance business segment of AXIS Capital Holdings, has announced the promotion of Keith Trivitt to Head of Commercial and Strategic Partnerships in its international division.

Specialist international (re)insurance broking and risk management firm Amwins Global Risks has added “high-achieving” Senior Brokers to its line-up. The business, which recently moved to its new London base at 22 Bishopsgate, is joined by Phil Johnson and Mark Ritson in the UK capital. Meanwhile Amwins Re, the company’s European reinsurance division in Amsterdam, also welcomed a key arrival. Johnson, will be leading Casualty development at Amwins Global Risks with a focus on the US, Canada, and Australia. Ritson, is in charge of growing the group’s continuing investment in global energy. Over in the Netherlands, Ewoud Dekker is recruited from Nationale Nederlanden. Aside from the local market, his focus will include Belgium and the Dutch-speaking territories in the Caribbean.

HDI Global SE – UK and Ireland (HDI) is pleased to announce that Arvind Drubhra will take up the role of Director of Operations.

Allianz-owned Euler Hermes has appointed Sarah Murrow as CEO of its UK and Ireland business, with effect from 1 June. Murrow previously worked as Market Management, Commercial Underwriting and Distribution (MMCD) Director for Northern Europe at Euler Hermes, and the Trade Credit Insurer stated that she will be the first woman to head up its UK and Ireland business.

 

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

 

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