JUNE 2014                                                                              

Dear Colleagues,

Welcome to our June newsletter; again, any comments, suggested topics or ideas on how to improve this would be gratefully received. 

~The Editorial Board~

 

 

By James Gerry - chairman of the Legal, Regulatory & Compliance Committee

 

If there is one, overarching regulatory theme from the past year that is likely to gather steam over the coming 12 months, it must be that of ‘consumer outcomes’.

As an insurance consumer myself, I want the insurance I purchase to be fit for purpose, easy to understand and fairly priced. The question then must be: How does our industry see to it that the services we provide and the products we sell are appropriately meeting the needs of our customers?

The MGAA’s Legal, Regulatory & Compliance Committee (LRC) has been in dialogue with the FCA and others in an attempt to answer this question. There can be no doubt that what constitutes a ‘good’ consumer outcome cannot be summed up in a simple, black and white answer. For example, while paying an insurance claim would appear to be a good outcome for the policyholder, it’s not necessarily deemed a ‘good’ outcome for other parties to the insurance transaction. What’s more, too many ‘bad’ outcomes for insurers will ultimately lead to changes to (or even restrictions in the availability of) insurance to consumers, and that’s hardly a good outcome.

And while it is unreasonable to expect ‘light touch’ regulation in the coming years, I know our members share a common concern that the ever increasing costs of regulatory compliance may ultimately be costs that must be borne by the consumer. Speaking as a consumer, that’s not an outcome I want.

And let us not lose sight of the fact that insurance is hardly a new consumer product; the London market has been a purveyor of such protections for hundreds of years. But as new risks emerge, so too will new – or evolving – insurance products. The biggest consumer-related insurance problems of recent times have invariably involved ‘new’ products. And it is in the area of new products that the FCA will be most concerned about the culture behind the design, development and selling process.

How do you shape and measure a company’s ‘culture’? Detailed question sets and lengthy audits will rarely provide an answer. One of the ways in which the LRC Committee seeks to address the issue of business culture is through the work of the MGAA’s Conduct & Ethics Committee. Charles Earle, the chair of that committee, recently wrote an excellent article on the subject of ethics in relation to customers and the Association’s Code of Ethics for its members.

The LRC Committee is committed to safeguarding the interests of MGAA members. That does not mean we are at odds with the FCA. It means that we are working with our regulator to try and establish the kind of oversight and rules that will prove effective in actually bringing about the intended desire of shaping culture within our industry.

By consistently delivering appropriate insurance products that are fairly priced and traded by participants who are bound by high ethical standards and who are operating within a market with solid financial integrity, we can ensure a good outcome for everyone.

Ethical Culture - Building a culture of integrity

Building upon the above and our newsletter issued in April we were pleased to see our Professional body – The Chartered Insurance Institute - issue a booklet on integrity. The MGAA Conduct & Ethics Committee chaired by Charles Earle is of the view that this affects Insurers, and as an MGA’s primary fiduciary duty is to insurers, it affects us too. Consequently we have spoken to the CII regarding this document which has been published on their website and is available for individuals and firms to use. It is meant to support the thinking of individuals and firms. It cannot, however, be viewed with the intention of being used to achieve compliance with statutory or regulatory obligations. We would recommend that your firm and your employees take time to read this document. http://www.cii.co.uk/media/4824442/ethical_guidance_building_a_culture_web.pdf

 

The All Party Parliamentary Group on General Insurance and Financial Services

On the 1st April this year our Chairman, Reg Brown, together with Board directors Nicholas Hales, James Gerry and the MGAA Managing Director, Peter Staddon visited Jonathan Evans MP. Jonathan Evans chairs this influential committee which consists of MPs who have an interest in the Financial Services arena, who have, in a previous life, been employed within the General Insurance sector.

The APPGI hosts meetings and issues digests of those meetings and these are available at http://www.postonline.co.uk/blog/appgifs-blog

 

The secretariat of the APPGI is provided by Jonathan Swift of Incisive media.

 

The photo below from right to left shows

Reg Brown – Chairman of MGAA

James Gerry – GB Underwriting & Chairman of the MGAA LRC

Nicholas Hales – R&Q Underwriting and MGAA board member

 

 

MGAA – On the Road

On the 24th June Peter Staddon, Managing Director and Jane Comerford, General Manager will be speaking at the Leeds Insurance Institute. The meeting commences at 12.30 and Peter and Jane will be hosting a coffee meeting after the event. To register to join Peter and Jane please contact angela.lacey@mgaa.co.uk for the details.

 

BIBA – Manchester

Peter and Jane were on the MGAA stand at the BIBA conference in Manchester last month. We would like to extend our thanks to many friends, colleagues and acquaintances who visited us at our stand to discuss issues and solutions.

Peter and Jane were assisted by Norman Hughes [CMS] who provides invaluable support to the MGAA on compliance and also sits on the LRC. We were also assisted by David Coupe, our legal advisor, and Brooke Titley, who is a trainee Solicitor and works with David at EC3\Legal.

 

 

 

Financial Ombudsman News http://financialombudsmanservice.newsweaver.co.uk/faf6afbsb904mf6x091xsi?email=true&a=11&p=47543633

 

Information Commissioner Newsletter 2014

http://ico.msgfocus.com/q/1bkxYLsGCKxELjyy63n/wv

Members Forum

BLM

We would like to extend our congratulations to BLM who have recently rebranded- further details can be obtained from the website www.blmlaw.com/TLS

 

 

Allied World - AWAC

Allied World Assurance Company Holdings, AG through its subsidiaries and brand, known as Allied World (AWAC), is a global provider of innovative property, casualty and specialty insurance and reinsurance. AWAC offer client service through their global network of 18 offices. All of Allied World's rated insurance and reinsurance subsidiaries are rated A by A.M. Best, A by S&P, and A2 by Moody's, and the Lloyd's Syndicate 2232 is rated A+ by S&P and Fitch. AWAC have experienced growth and success since 2001, writing US$2.7 billion of GWP in 2013 at an 86% combined ratio. Allied World has ambitious growth plans for Europe and expect a significant contribution from MGAs.

Within their offer of flexible insurance solutions they include Aviation, General Casualty, Healthcare Liability, Management Liability, Marine, Mergers & Acquisitions, Professional Indemnity, Corporate Property, International Property and SME risks, underwritten through their Company market and Lloyd’s Syndicate platforms. Trade Credit & Political Risk coverage is offered through their programme administrator, L.A.U. (Europe) Ltd.

A copy of the brochure is on their website - http://www.mgaa.co.uk/membership/insurer-members/allied-world-assurance-company-(europe)-plc/

Keycare links with Bollington Insurance Brokers

Bollington Insurance Brokers - one of the UK’s largest independent insurance brokers - is including Keycare’s cover for lost and stolen keys in its home insurance provision for foster carers.

Operating out of four offices across the North West, Bollington provides home insurance and specialist cover for FosterTalk - a not-for-profit membership organisation which provides advice, information and support for foster carers. 

Mark Bowers, marketing communications executive for Bollington Insurance Brokers, explained: “Many foster carers struggle to obtain appropriate or competitively priced home insurance because standard personal home insurance policies do not allow for the types of risk that come into play where foster children are involved. That is why we have developed specific insurance for FosterTalk members.

“We have worked with Keycare before and they have always been an efficient provider. Offering Keycare cover as part of the package gives us a useful additional selling point.”

Said Keycare chief executive David Robertson: “It is rewarding that our expertise will help members of FosterTalk - a tremendous organisation which makes a big difference to foster carers and the children and young people they look after.” 

The latest contract follows a raft of new business wins for Shipley-based Keycare - the UK’s largest provider of insurance for lost and stolen keys whose clients span small and medium sized enterprises and blue chip organisations across sectors including banking, motor insurance and retail.

Across the last 12 months the business has clinched contracts with high profile names including NCI Vehicle Rescue PLC, Go Skippy Car Insurance - and auto insurer Chaucer Direct.

In the last few months alone Keycare has made a hat trick of senior board appointments and promoted three employees to associate directors. 

As the price of replacing keys continues to rocket - in some instances electronically programmed keys can cost as much as £1,000 or more to replace - Keycare’s products provide reassurance to customers if they lose their keys.

http://www.keycare.co.uk/

 

Wildnet

Wildnet, providers of bespoke MGA software, have issued a new product and information brochure together with an overview document. For further details contact Paul Rich, Sales Director, or view the brochures on www.wild.net/services/

 

Or contact Paul at Wildnet Group

Suite 3.12, 3rd Floor, 34 Lime Street, London, EC3M 7AT    

Phone: 020 7015 0400

Mobile: 07506 345219

Email: paul.rich@wild.net

 

Social Media or Media Training

The world of social media and the challenges of getting your message across often appear so daunting that they get put in the “too hard” tray – so why not ask an expert to help you? David Worsfold has developed a range of courses for the MGA market on social media, media management, video and broadcast skills. These are all available to MGAA members at discounted rates so get in touch with David at Worsfold Media Services (worsfoldmedia.co.uk) – 01277 221445 or david@worsfoldmedia.com. David can also work with senior management to develop fresh, engaging communication strategies for the market, the media and policymakers at Westminster and beyond.

Ordnance Survey

Ordnance Survey have recently issued their own newsletter. A copy can be downloaded fromhttp://response.gv-c.com/Mail/View/144?a=79EAD76319FAC59E8D5C20EF6F562877&r=25124526267C34D22484C2BEC8DCBBF3t=