FEBRUARY 2014 Follow@UKMGAA
Welcome to our February newsletter; again, any comments, suggested topics or ideas on how to improve this would be gratefully received.
~The Editorial Board~
David Coupe, Legal Advisor to the Board, talks about meeting the FCA
Since the MGAA Steering Committee first met to consider setting up a trade association, the importance of regular communication with the FSA (now the FCA) and the ability to try to shape regulation for the benefit of UK MGAs has been of utmost importance to the MGAA. There have been a number of meetings with the FSA/FCA over the past three years, two presentations by the FCA to the wider membership and regular dialogue between Board Members and FCA representatives on a broad range of topics. These are on top of our regular Compliance Bulletins. It is as a result of our efforts that the FCA has now publicly recognised that MGAs are different from wholesale brokers and coverholders in the way that they operate in the UK market place. Further, there is now a recognition by the FCA that an MGA’s primary duty is to the insurer not the insured, and that this has an important effect on the legal and regulatory responsibilities of MGAs under FiSMA and associated UK regulation. Admittedly this has been a slow process, but our contact over the past 12 months has undoubtedly gained pace and there is a better working relationship with our regulator than ever before. We hope that in 2014, with the possible passing into law of a new EU Mediation Directive, that the MGAA will be able to influence the direction and interpretation of this legislation as it affects UK MGAs and lobby on behalf of members accordingly. Members' views are always greatly appreciated in relation to regulatory and compliance issues, and if you have any particular matter that you wish the MGAA to consider and/or discuss with the FCA, then we will be delighted to do so.
MGAA Board Elections
We are in the process of electing 6 board members to represent the full members – Sian Fisher of OIM and Peter Hubbard of UK General will continue to represent the two largest members by premium volume. Our call for nominations closed on the 24th January, 2014 and the ballot papers have been sent out to the key contact of each member firm. We encourage all members to ensure that they take this opportunity of casting their vote by Wednesday 19th February, the results will be announced at our general meeting on the 24th February, 2014 which will be held at the Old Library in Lloyds. RSA continue as the board representative of the Market Practitioner members and Keith Stern has been unopposed as the board representative of the Supplier Members.
Legal, Regulatory & Compliance Committee
The LRC is one of the 5 standing committees which reports to the MGAA Board and is chaired by James Gerry. The January meeting discussed inter alia the “Regulatory Calendar” http://www.mgaa.co.uk/news/compliance-news/ which has received wide support from our membership. In addition the compliance newsletter, issued bi-monthly, has also received good acclaim. During the meeting members were reminded that all reference to FSA should be replaced by FCA with effect from 1st April 2014. Accordingly an FCA checklist is available from the MGAA website http://www.mgaa.co.uk/news/compliance-news/2014/january/fca-checklist-(updated-january-2014)/ and members are advised to review all attaching documentation on their website as this could contain reference to FSA.
Conduct & Ethics Committee
The C&EC is another of the 5 standing committees and is chaired by Charles Earle. During the last meeting members debated the protocols around the use of unrated paper. This was a lively debate and the committee felt that they were in a difficult position and did not wish to be seen as dictating which markets should be used by members. However it did accept that the use of unrated paper needed to be reviewed especially in relation to the home territory when the insurer was domiciled. The Board had previously met with A M Best and we will shortly be posting on our website important information in this respect.
Meetings in the diary
Over the next two months members of the board are due to meet
These continue to be welcomed and members are reminded to register as some briefings have been oversubscribed. Planned briefings being held at the Old Library in Lloyds are:
10th February Peter Montanaro – meeting the challenges of the regulatory environment (the podcast of this event will be available shortly on our website)
24th February MGAA General meeting – see above
5th March Talk by ELTO following completion of their survey as to why less than 60% of ERN’s have been collected (11th Floor in Lloyd’s)
10th March SSP – Big Data in the industry
31st March DAS – True value from Legal Expenses Insurance
MGAA in the press and on the road
Some of the MGAA board, together with the Managing Director, attended a round table at the Insurance Age offices. This interactive and informative discussion looked at MGAs and the benefits they bring to the UK market. This article has received positive feedback and we are able to provide you with a link to review this editorial electronically without the need to be a subscriber.The link is http://viewer.zmags.com/publication/23fcf069#/23fcf069/18
At the beginning of January the MGAA were in Belfast speaking to members of the Belfast CII Committee. This is part of our push this year to be seen as less London centric. Watch for events in Manchester, Bristol and other insurance centres.
In the past two months we have run forums for claims, compliance, IT and Finance. These “closed door” forums are designed specifically for MGA members to exchange ideas and to speak to their peers about common problems. Issues raised within the claims forum included personal injury claims which fall outside the MoJ portal. By contrast the compliance forum discussed many issues surrounding MGAs position within data gathering scenarios such as ELTO and sanctions and members reviewed the Lloyd’s paper y4727 on financial crime http://www.lloyds.com/~/media/files/the%20market/communications/market%20bulletins/2013/10/y4727.pdf#search='y4727' Both of these have been picked up by the MGAA executive and further announcements will be forthcoming.
Education & Training
The MGAA Executive have continued their relationship with education providers within the general insurance arena, and have recently secured a discount on the Lloyds LLMIT exam. This will formally be announced at the Lloyds briefing on the 10th February, and members who wish to avail themselves of this discount should contact the MGAA after the 10th February. Our Market Briefings continue to be CII CPD accredited and in future podcasts of briefings will be available to download from our web site allowing those members unable to attend the event to benefit.
Finally, a gentle reminder
The MGAA supports The London Phoenix Orchestra who have arranged a concert on behalf of the Insurance Charities. This will be held at St John’s Smith Square on the 10th April, 2014. Further details can be obtained from the MGAA or www.phoenixorchestra.org
MGAA Website – as previously mentioned we are revamping our website and would welcome any members who are able and willing to be involved on this project.