AUGUST 2016


  

Welcome message from our Chairman, James Gerry.

At the MGAA Annual Conference on the 6 July 2016, I called upon the sector to recognise the important role that education and transparency plays in supporting continued MGA growth.

Addressing over 400 delegates I pointed to where the Association has made significant progress in establishing a voice for the UK MGA sector; and the fact that we are a distinct and relevant force within the UK insurance community.

We do operate in the most dynamic, innovative, and rapidly growing segment of the insurance market. Therefore, it is critical that the Association continues to anticipate the changing landscape that all members are likely to be operating in. 

Moreover, as the MGA space grows so too does the range of stakeholders.  The sector needs to ensure it engages with this widening group. The Association has a responsibility to educate and inform everyone who has an interest in the MGA’s role. MGAs must also focus on greater transparency and communication with all our stakeholders if we wish to increase the levels of trust, confidence and security. These drivers will be key to the continuing success of our sector, and will play a pivotal role in the future shape of not just the MGA but the wider delegated authority market in the UK.

MGAA 2nd annual conference

On the 6th July we held our annual conference at the Grange Tower Bridge Hotel. The event includes 3 panel discussions, a series of market briefings and of course the Capacity Exchange.

Podcasts of the panel discussions can be accessed here.

As one of the major events in the MGAA calendar we are extremely pleased to have welcomed over 400 members to the event (a short video of the day’s proceedings is available here).

 

Events held in June and July:

  • Young Compliance Officers Group meeting

  • Market briefing on Fraud by John Beadle from RSA

  • Conduct & Ethics Committee

  • Intelligent Insurer Diversity Inclusion Roundtable

  • “Shape & Share” Interactive session on the Insurance Act with BLM

  • Insurance Charities board meeting

  • MDD Business Interruption Panel Discussion

  • Responded to OECD call for evidence on IDD impact on SMEs

  • Membership & Benefits Committee

  • London Market Awards Dinner

  • Market Briefing on What a Digital Strategy looks like for an MGA by INSTANDA

  • VAT & Insurance Seminar

  • Placing Platform Ltd and LIIBA meeting

  • MGAA 2016 Conference and Capacity Exchange

  • Conference call with FCA regarding their thematic review on appointed reps

  • HMRC IPT/VAT liaison group

  • Changing MGA landscape meeting with Lloyd’s and others

NEW MEMBERS
We extend a warm welcome to the following new members.

MGAs
Azur Underwriting Ltd


 MARKET PRACTITIONER
The Griffin Insurance Association Limited
Pen Underwriting (Delegated Solutions)

SUPPLIERS
DAC Beachcroft LLP
vrs Vericlaim UK Ltd
GIROUX 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

Add-on’s
Members have been asking for an update on Add-on’s and we have posted on our website a new version. Our compliance consultants, CMS, have made changes to the text on ‘optional extras’ to add some further FCA guidance. Click here for more details. 

Pool Re
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 invite members to view their website to keep up to date with important changes and ceding arrangements. For full details click here
 

Financial Ombudsman Newsletter
The Ombudsman has issued their current  newsletter and have been looking at Brexit, MGAs can view this document by clicking on the link provided

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 regular newsletter regarding European issues is available. To read more click on the following link

Insurance Act
Following on from their highly successful Insurance Act market briefing, BLM hosted an interactive “shape & share” on the 14th June looking at the Insurance and Enterprise Acts.  BLM have now issued a helpful guide for members on the Insurance Act, to assess this click here

Collateral Lies
Members Mills & Reeve have issued a paper entitled good faith: sink or swim – the impact of the Supreme Court’s decision in Versloot.

This looks at the potential impact upon MGAs referred to by the popular press as Collateral lies. To access this paper. Click here

Third Parties (Rights Against Insurers) Act 2010:
The Third Parties (Rights Against Insurers) Act 2010 has significant implications for those whose practices involve dealing with insolvent and dissolved insured clients. Coming into force on 1 August this year, the Act aims to simplify the mechanism by which a claimant (the third party) may bring a claim directly against an insurer, where a defendant (the insured) is insolvent. BLM has provided further details here.

 

One of the most significant points about the act was the third party’s right to information which has to be provided within 28 days. 

 

BREXIT
There has been much information and miss information about Brexit so let’s get the facts right. Click here for more info.

In addition, there are industry moves to discuss with government the protection of the UK insurance economy once Article 50 has been triggered. The MGAA is, and will continue to be, in discussion with industry partners to ensure there is, as much as possible, a level European playing field and that UK MGAs will not be disadvantaged.  We must work with interested parties to ensure a sensible and logical trading base going forward, and that also means Insurance companies whose headquarters are in other European countries.

PKFLittlejohn VAT newsletter
Luigi Lungarella at PKF Littlejohn has issued a newsletter with regard to VAT.

MEMBERS FORUM

Insurance Charities
The Insurance Charities is holding their Golf Day on Tuesday September 20th at Staverton Park Golf Club in Northampton.  

Individuals or teams of four can enter, at a cost of £60 or £225. This includes a bacon roll and coffee at the start of a day, a two course meal at the end and 18 holes of golf in between!

The flyer with all the details is available here

Members can read the insurance charities latest newsletter with details of Insurance Charities Awareness Week, summer hampers initiative, a Governance update, and the case study of Cara (for whom we helped fund life changing surgery). More details can be found here.

Insurance Regulatory eBulletin | July 2016
Moore Stephens' Insurance Regulatory eBulletins helps keep you up-to-date with the latest regulatory developments in the insurance industry.

Kay international
If you are looking for more capacity to underwrite UK Property, Kay International plc has secured a new Surplus and/or Excess of Loss facility to write Commercial Property including Business Interruption, Goods in Transit, Stock, Loss of Licence, Personal Effects and Property Owners Liability.

The security is JRP/Kiln and Faraday.

The Limit is £5,000,000 for each risk bound (if higher will need special acceptance). This facility is Properties in the UK and Republic of Ireland. Cover can also include holiday homes in the EU.

Kay gives 20% Commission.

For more details contact
Brian Salmanpour – Chairman – Kay International Plc.
Tel: 0207 398 2580 or E Mail: brians@kayint.co.uk

Cover.Net
Cover.Net are offering a website service for new and established MGAs looking to establish a professional web presence quickly and cost effectively.

The hosted site, which is fully mobile compatible and SEO enabled, is based on their MGA specific design. Clients just need to complete the simple word document template supplied, choose their preferred colour schemes and Cover.Net will do the rest, with the live site up and running within 2-3 weeks.

The package costs just £4000, which is inclusive of hosting costs. A recently completed example can be found here: www.tansar.co.uk  For further details contact Jim Campbell on 028703 25800 / jim.campbell@cover.net