APRIL 2016

Dear colleagues,

Welcome to the April 2016 newsletter.

As many of you will be aware, in January we held elections for the MGAA board. Following the elections, we were pleased to confirm 2 new directors Mark Birrell, chief executive of Castel Underwriting, and Charles Manchester, chief executive of Manchester Underwriting Management.

Charles and Mark join Catherine Bell, Charles Earle, James Gerry, and Jeff Turner, who were all re-elected to the board.

The six member-elected directors are joined by representatives from the Association’s market practitioner and supplier membership. Keith Stern, regional manager, Lloyd’s, was re-elected as supplier representative and Bill O’Malley, senior vice president, Arch Insurance Group remains as market practitioner representative until his current term ends in February 2017.

The board also includes directors representing the Association’s two largest full MGA members by gross written premium – Mike Keating -UK General and Tom Downey - Pen Underwriting.

James Gerry, GB Underwriting, was elected as Chairman of the MGAA Board in March.  Further details on the Board and Chairman can be viewed here

Our thanks go to Reg Brown, Sian Fisher, Nicholas Hales and Darren Doherty for all their hard work and commitment during their time on the Board.

In February and March, we:

  • Held a meeting with Flood Re to identify issues prior to their authorisation and ceding arrangements
  • Responded to FCAs DP15/7 paper on SMEs using financial services
  • Discussed with interested parties issues around MGA audits and duplication of data capture
  • Held General meeting in the Old Library, Lloyd’s of London
  • Met with tax advisors for a discussion of how tax affects an association and membership costs
  • Held market briefing on TOM [Target Operating Model] and how the insurance market is developing 21st century technology
  • Represented the MGA sector at the CII president’s dinner in London
  • Held meeting with CII regarding specific training and education programs for MGAs
  • Held “Shape & Share” briefing on Conduct Risk
  • Ran the second learning & development program in Lloyd’s for member’s staff
  • Held meeting with LMA to build a closer working relationship
NEW MEMBERS
We extend a warm welcome to the following new members.

MGAs
Origin UW Limited

Ptarmigan Underwriting UK

 

SUPPLIERS
Ebix Europe

Instanda
Majesco UK Limited

COMPLIANCE ROUNDUP
Compliance Newsletter

For those of you who missed our last compliance newsletter this can be viewed on our website, click here

Regulatory Calendar
Our compliance consultant, CMS, has updated our regulatory calendar which can be accessed from our website

MARKET INFORMATION
Pool Re
Pool Re CEO Julian Enoizi said the government-backed terrorism reinsurance scheme would be ready to respond to biological or chemical attacks, after French prime minister raised concerns about such incidents on French soil.

Pool Re continue their market liaison and their website has up to date information on their activities. For full details click here

Flood Re
Flood Re achieve PRA and FCA authorisation - Regulators have confirmed Flood Re will be authorised from 1 April 2016 ahead of the scheme's 4 April start date.

Flood Re continues its interaction with the UK insurance market. To view their newsletters visit their website www.floodre.co.uk

Financial Ombudsman Newsletter
The Ombudsman has issued their current newsletter for MGAs to view

Information Commissioner Newsletter
The Information Commissioner has issued their newsletter which can be downloaded here

Lloyd’s
Lloyd’s have recently issued a number of Market Bulletins which are directed at MGAs and delegated authority. These can be accessed from here

Risk today
The IUA regularly issues a newsletter regarding European issues. To read more click on the following link

Insurance Act
Following on from the highly successful BLM market briefing identified in our February newsletter we are pleased to be able to offer members access to The Insurance Act 2015: A practical guide to changes in  UK Insurance Law and also Insurance Act 2015: Quick Reference Guide

Enterprise Bill 2015
The much anticipated Insurance Act 2015 is due to take effect from August 2016. The Enterprise Bill 2015, will add to the insured-friendly reforms of the Insurance Act 2015 by bringing into law two key concepts:

  • That an insurer must pay claims within a reasonable period of time
  • A failure to pay claims within a reasonable period of time will entitle the insured to claim damages for losses suffered as a result of that failure.

Sarah Trendell-Smyth of Mills & Reeves explains more so for full details click here.

MEMBERS FORUM
PKF Littlejohn
Luigi Lungarella of PKF Littlejohn has issued another newsletter with regard to VAT

Claims Innovation Awards
The MGAA has agreed to be a judge for these Awards and we would like to see MGAs being awarded for their excellent work when they are handling claims.

The closing date for your enquiry is 8 April so you need to get a move on if you wish to enter.  Follow this link for a copy of their last story which was written for our information.

Regulatory Efficiency Gains
Associate members REG have identified issues among Insurers ToBAs as to what constitutes appropriate or mandatory due diligence on Broker. CEO Michael Phair explores these issue and helps MGAs consider their position as the” Third Force”.  For further details click here

Instanda
We are pleased to provide information with regard to how the sharing economy is transforming the speed and cost of launching insurance products to a global market. This paper, prepared by Max Pell CEO of Instanda, explores “Everything-as-a Service” which is transforming the economics of establishing and running a company. “Product-as-a-Service” will fundamentally change Insurance product design and delivery.  For further details click here.

Insurance Charities
The Insurance Charities Awareness Week (ICAW) takes place from 20th - 24th June throughout the UK and Ireland. The Charities will be sending out complimentary display box/floor stands to the insurance sector with the view of spreading awareness of the essential work by helping people who have worked in the insurance industry who now need help themselves.

To participate in this important cause Emma Bangar with your name and number of employees in your office so Emma can send you the appropriate box.