DECEMBER 2016

MANAGING DIRECTOR’S REPORT
As we rapidly approach the end of 2016 it is interesting to look back over the past 12 months to review our achievements. I am pleased to report that the association continues to grow and our MGA members now total nearly 120, even after taking into consideration the mergers and acquisitions within our marketplace.

We are also able to report on another successful year and this could not have been achieved without the unconditional commitment we receive from our Board, the standing committees and of course our members. I wish to thank the Board, all of the committee and forum members for all their hard work and support over the past 12 months, and we look forward to building upon this in 2017.

I remind our market practitioner members that we are in the process of seeking candidates to represent your interests on the MGAA board.  Nominations to be received by 9th January 2017 and elections will take place later in January. Bill O’Malley, Arch Insurance Company, is currently your representative on the board.

Over the past 12 months we have continued our engagement with:
• The All Party Parliamentary Group on General Insurance
• The Department of Transport
• The HMRC/Treasury IPT and VAT liaison group
• Lloyd’s of London
• IUA
• The American Association of Managing General Agents and the Underwriting Agencies’ Council of Australia
• The London Market Group on new market initiatives
• We have also been in contact with other European associations such as BIPAR, EIOPA and OECD to ensure our members voice is heard and that the importance of MGAs in the UK insurance market has not been overlooked.

 

We are pleased to see our new Chairman, Charles Manchester, take over from Reg Brown and James Gerry, both of whom stepped down during 2016. We would like to extend our sincere thanks to Reg and James for their guidance and commitment to the MGAA and also to all members of the association.

We continue to work closely with the FCA, for example engaging on the thematic reviews for "Appointed Reps" and “Intermediaries Professional Indemnity Insurance”. It is vitally important that the voice of MGAs is heard and I would encourage all of you to be reactive to any call for evidence we may request. After all, the regulator cannot understand your specific issues without you relaying them to us for inclusion within our submissions.

On the 10th October we held our annual “Open Door” meeting in Lloyd’s with the FCA.  Over 120 members attended and we were able to pose specific questions to the FCA senior supervisory staff on issues that you felt were of great importance.  I would like to extend my thanks to David Coupe, EC3\Legal, who chaired this meeting on behalf of the MGAA.

We have corresponded with the OECD on their questionnaire on Cyber Insurance. We would not have been able to respond with such authority without the engagement of the membership, and on behalf of the MGAA board I wish to pass on our sincere thanks.

In July we held our second annual conference and over 450 members attended. We have started to plan our 2017 conference which will be held in the Grange Tower Bridge Hotel (Prescott Street) on Tuesday 4th July. Further details will follow in the New Year but if you wish to consider sponsorship then please contact either Jane or myself.

Finally, Jane, Teresa and I would like to wish you a Happy Christmas and a prosperous 2017.

UNDERWRITING AGENCIES COUNCIL
 

On the 9th November, members of the MGAA board were joined by Heath Amber, Board Director of the Australian UAC. The MGAA and the UAC had exchanged Associate/Affiliate membership to build a closer working relationship with our Australian colleagues.

Photo:  Charles Manchester, Chairman of MGAA, and Heath Amber, Director of UAC

IPT INCREASES
As members will be aware there was an announcement in the Autumn statement that IPT was, yet again, going to increase. MGAA sits on the HMRC/Treasury IPT & VAT liaison group and whilst we were disappointed that the rate was increasing we were pleased to see that representation made to Treasury, via this group, had seen a longer lead in time before the increase takes effect.

To find out more about this increase, click here.

10 TIPS WHEN ENGAGING WITH A SOFTWARE COMPANY
It is well known that the successful purchase and implementation of strategic software solutions is challenging to achieve. A 2012 study conducted by the University of Oxford and McKinsey found that, on average, the large IT projects they studied ran 45 percent over budget and “software projects [ran] the highest risk of cost and schedule overruns”.

With this in mind, and with so much focus on innovation within the sector, we have collaborated with the law firm Browne Jacobson (a top-ranking full-service insurance practice, who regularly advise on technology and outsourcing issues within the sector) to prepare a list of 10 tips to help MGAs procure software successfully and avoid some of the common pitfalls that may arise.”

NEW MEMBERS
Full Members:
Bluefin Underwriting
ABACUS
So-Sure Limited
Corin Underwriting Limited
Acappella Agency Ltd
Cyber Quote Ltd
Market Practitioner
EC Insurance Company Limited
Suppliers:
Business Insight
Insurance Initiatives Limited
Kennedys Law LLP
Barnett Waddingham
CityNet Law  

USEFUL LINKS AND NEWSLETTERS
Pool Re latest information
Flood Re Newsletter
Financial Ombudsman Newsletter
Information Commissioner Newsletter
MGAA Compliance Newsletter
MGAA Regulatory Calendar
ELTO Newsletter
PKF Littlejohn VAT Newsletter
IUA Risk Today Newsletter
Lloyd's Market Bulletins

BROKER ASSESSMENT - R.E.G.
On Wednesday 14th September MGAA supplier member REG (UK) Ltd. addressed the compliance forum with a presentation highlighting some of the potential risks agencies are exposed to through lack of regular Broker reviews. REG have found that on average 8.8% of Brokers initially uploaded to REG are no longer authorised to conduct regulated business by the FCA & 9.4% have a Credit Rating which indicates a moderate to high risk of failure within the next 12 months. To help MGAA members address this, REG are offering a Free Broker Assessment Report for MGAA members. To view a sample report or find out more, click here.

PROPERTY INSURANCE AND ASSESSING YOUR EXPOSURE TO FIRE RISK - A BURINING ISSUE?

 

This September saw the 350th anniversary of the Great Fire of London which destroyed over 13,000 buildings including many homes, commercial buildings and landmarks. Research from the ABI has calculated that if the same area of London were to be hit by a similar fire today, the cost to insurers would be at least £37 billion.

Business Insight has a suite of products designed to give you a better understanding of fire risk for a location, allowing you to select more profitable business, fine tune your pricing and improve underwriting performance and profitability.  Read more here about this MGAA member offer.

 

LONDON MARKET FORUM AWARDS
The MGAA attended the London Market Forums awards in December and was delighted to see former MGAA board member Sian Fisher received the awards for Outstanding Contribution to Industry Transformation.

On the night and in Sian’s absence Peter Staddon MD of the MGAA collected the award.  Picture: Roger Oldham, CEO London Market forums with Sian Fisher, CEO of the CII.

2016 INSURANCE DAY LONDON MARKET AWARDS
Congratulations to Julian Enoizi and the team at Pool Re who won Company of the Year.
 

 

INSURANCE TIMES AWARDS
Congratulations to Michael Phair and the team at R.E.G. who won InsurTech start-up of the Year.