JUNE 2014 Follow@UKMGAA
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
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
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
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 firstname.lastname@example.org 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
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.
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
Or contact Paul at Wildnet Group
Suite 3.12, 3rd Floor, 34 Lime Street, London, EC3M 7AT
Phone: 020 7015 0400
Mobile: 07506 345219
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 email@example.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 have recently issued their own newsletter. A copy can be downloaded fromhttp://response.gv-c.com/Mail/View/144?a=79EAD76319FAC59E8D5C20EF6F562877&r=25124526267C34D22484C2BEC8DCBBF3t=