to our February newsletter. Any comments, suggested topics or ideas on
how to improve this newsletter would be gratefully received.
~The Editorial Board~
The Humble Beginnings – The Moment of Truth
Reg Brown, Chairman of MGAA, continues his story of our formation.
Committee had put in a great deal of work over the previous 18 months by
the time we called an open meeting in the Old Library at Lloyd’s on 23rd
November 2010. We needed to know whether there was enough support among
the MGA community for a new trade association to represent their
interests. We asked 5 questions as explained in the last Newsletter. Our
proposals were outlined in the press and on a website we had created.
Over 100 people turned up for the meeting representing some 70 MGAs firms. The meeting discussed a number of issues including:
How many MGAs were there in the UK?
What should the association be called?
Should membership be limited to MGAs or should it be widened to include insurers and service providers?
2 members representing the largest members by Gross Written Premium
6 members elected on a regional basis
Up to 3 co-opted members and
The Executive Committee would elect a Chairman.
The feedback from
the meeting was very positive and the majority of those attending said
that they were in favour of having their own trade association and that
they would join. Quite a brave commitment considering they had no idea
of the likely membership fee required. Nor did the Steering Committee!
Perhaps the bad publicity MGAs were getting in the insurance press at
the time, fuelled by some insurers who had suffered from poor choice of
MGA partners, led some to believe that the cost was secondary to having a
voice to respond.
We estimated that
the costs of running the association in its first year would be £65,000,
but were unsure how we could raise that sum. Would we be able to
persuade a sufficient number of insurers who, after all, would benefit
if we were able to raise standards in the MGA community as planned? Or
were there other sources of seedcorn capital we could tap?
The lessons learned from the meeting were discussed at the next Steering Committee meeting on 29th
November 2010. The Steering Committee by then had been strengthened by
the addition of Keith Stern to represent Lloyd’s and David Coupe of
Clyde & Co who provided valuable legal advice.
We were satisfied
that we had the support of a sufficient number of MGAs to proceed to
draft a constitution, register a company and open a bank account (with
nothing in it!).
From the very
beginning we thought it was important that we had the support of the
insurers upon whose capacity MGAs depend. I had already done the rounds
of the ABI, the IUA and Lloyd’s Market Association. I also paid a visit
to the DUMS and the DUCS at Lloyd’s. The DUMS is a committee of
Delegated Underwriting Managers and the DUCS is a Delegated Underwriting
Committee. They each have different members. They all knew our plans.
So we decided to call a meeting of interested insurers.
The insurer meeting took place at the offices of Clyde & Co on 18th
January 2011. By now, our constant revision of the budget led us to
revise our cost forecast from £65,000 to £175,000 - £250,000. We had
also decided that our seedcorn capital could be raised by charging
insurers and service provider members a one-off joining fee. The fee
scale we decided upon was:
MGAs - £1,250
Insurers - £2,500 plus a joining fee of £1,000
Suppliers (service providers) - £3,500 plus a joining fee of £1,500.
insurers and suppliers would be happy with the fee scale we were about
to find out. 46 people turned up to the meeting. Whilst the attendance
was a little disappointing, the mood was positive and we got the
Finally, we consulted the suppliers a week later on 26th
January 2011 at Lloyd’s. Whilst there were some objections to the
suggested fee levels, most were supportive. The Steering Committee was
concerned to limit the number of supplier members as a ratio of full
members. The interest among suppliers was growing and we did not want
suppliers to outnumber MGAs.
positive feedback from all three potential member meetings all we had to
do now was to get them to sign up! That, of course, was not quite as
easy as expected.
Reg will explain the outcome of that meeting and subsequent meetings in our next Newsletter.
The general insurance industry came together on the evening of Tuesday 2nd December 2014 to celebrate the high achievers of the previous 12 months at the Insurance Times awards 2014.
In a year of
intense competition following a record number of entries, it was the UK
General Group that walked away with the award for ‘MGA of the year’ at a
glittering awards ceremony at Battersea Evolution in London.
Coming 12 months
after the triumph of the Group’s agricultural specialists, Rural
Insurance, in the ‘Brand Campaign of the Year’ category, the judges
attributed this latest award success to UK General Insurance Group’s
ongoing focus on being a customer-centric business.
the MGAA recently announcing its membership rising to over 100 members,
Insurance Times were delighted that UK General was leading the way at a
time of intense competition and growth in the MGA market.
Group CEO, commented “Having come so close to winning in previous years
makes it all the more significant that we’ve now been awarded this
accolade – and shows the business continues to make significant
progress. The fact that the judges picked out our customer focus is
enormously pleasing as it shows the hard work being put into this area,
each and every day, is bearing fruit.”
On the 9th
January 2015 members attended a market briefing at the Old Library,
Lloyd’s to hear Ethics specialist Duncan Minty. Members can listen to
the Pod Cast which is available on the MGAA website.
attracted approximately 130 registrations and was chaired by our Conduct
& Ethics Committee Chairman, Charles Earle.
Copies of Ethics for Small Firms e-book can be downloaded free of charge here.
in the FATCA submission can find out the current up to date information
from the Grant Thornton website or by emailing their FATCA email address
FATCA@uk.gt.com. Alternatively if you wish to discuss the matter please contact Ian Woodruff who authored our previous notation.
Members will recall that on the 13th
October Terry Renouf, BLM Legal Services, hosted a market briefing with
regard to the Insurance Bill which will affect all commercial services.
There are three
stages in the Commons to get through but the hard work has all been done
by David Hertzell as Law Commissioner. BLM have an update, BLM on Insurance Billwhich covers the present position save for Commons First Reading. It is expected to go through quickly and without change.
Lloyd’s have issued a bulletin - Notification of 2015 charges, contributions, subscriptions and payment dates.
Lloyd’s International Sanctions Guidance:
Compliance, Delegated Authorities and Claims To provide the Market with
guidance on developing appropriate and risk based systems and controls
to comply with international sanctions covering the Compliance,
Delegated Authorities and Claims Handling business areas.
have offered MGAA members a discount to their Innovation and Disruption
Conference 2015. To receive the special discounted rate of £295+VAT
(original price £499+VAT) members need to register here and enter code VIP200.
Guests will need
to pay immediately via credit card to secure a place. The link to the
event website which provides more information on speakers, topics and
sponsors can be found here.
The MGAA were
pleased to see that our colleague David Hertzell, the former Law
Commissioner for Commercial and Common Law, has joined Associate members
David has been the
leading force on the implementation of commercial insurance contract
reform. He will work with BLM to inform, educate and prepare customers
in advance of the implementation of the Insurance Act, which is expected
to receive Parliamentary approval in Spring 2015.
David is President of the British Insurance Law Association; and Chair of the CII Professional Standards Board.
He also sits as a member of the AIRMIC Board; and on the Audit and Risk Committee of the Judicial Appointments Committee.
For further details about David’s appointment click here.
A new law which
brings hope to defendants fighting fraudulent claims has been passed in
Parliament. The Criminal Justice and Courts Bill contains a provision
which requires courts to dismiss the whole of the claimant’s claim if it
is satisfied that the claimant has been ‘fundamentally dishonest’. For
further detail click here.
Managing Director, and Jane Comerford, General Manager, have been
speaking at a number of venues around the country.
Dates for 2015
have been agreed for talks in conjunction with local CII at Exeter,
Cheltenham, Maidstone and Liverpool. For further details or to join
Peter and Jane please contact Peter Staddon.
For those of you who missed our October compliance newsletter you can access it here.
Our compliance consultant, CMS, have updated our compliance calendar which can be accessed here.
The Ombudsman has issued the following newsletters
Number 122 issued on the 9th December 2014
Number 123 issued on the 27th January 2015
The IUA have issued their December newsletter which looks at a number of influences affecting the London market.
The Information Commissioner has issued the following newsletters
PKF Litlejohn are running a breakfast seminar on the changes to UK GAAP,
at their offices on Thursday 5 February 2015.
UK GAAP will be
replaced this year and the new set of rules will form a single standard
called Financial Reporting Standard 102 (FRS 102). This seminar will
focus on helping members to understand the key differences between
current UK GAAP and FRS102 and how they could affect your business.
Further details on the event and registration can be found here.
The MGAA MBC are
always looking to enhance member’s knowledge and understanding of the
insurance market. Working with a number of interested parties we are
proud to offer members the following
MGAA Learning & Development Programme - 18th March 2015
with Lloyd’s Global Development Centre, the MGAA is pleased to announce a
new initiative to recognise young talent in the MGA sector.
We are offering
member employees the opportunity to take part in a programme of learning
and development to enhance their skills. This will enable them to
better understand the Lloyd’s insurance market and how it operates and
This initiative is
entirely funded by the MGAA/Lloyd’s partnership and will be free of
charge for a young professional working in your business/ organisation.
For further details please contact Teresa Atouguia.
Many of our regional members have expressed a wish to visit Lloyd’s to undertake a tour. For further details please contact Teresa Atouguia.
Welcome to the New Year; 2015 certainly looks like it will be challenging. For insurers, and MGAs the implementation of Flood Re will change how we underwrite flood risk forever. Location data can help with the unique property identifier being included in Flood Re, insurers using AddressBase will not only be able to accurately locate the properties they are underwriting, but also match addresses in Flood Re faster. For further details click here.
To register to attend Ordnance Survey’s Financial Services Forum, 11/02/15, Southampton, please click here.
about future roadmaps, insight into the changes going on at Ordnance
Survey and learn about the power of geospatial data, plus catch up with
peers and colleagues across the industry, please click here.
Survey’s Financial Services LinkedIn Group to network with colleagues
and peers across the industry. Take a first look at whitepapers and
receive invites to events and conferences in this group set up for
anyone interested in location data within financial services in Great
Events & Training Committee are in the process of building a bespoke
MGA skills programme. To ensure that we can keep the costs to a minimum
it would assist us if you would provide details of your requirements.
These could be in relation to any insurance technical matters as well as
soft skills. We are planning to run these courses nationally should
there be sufficient demand.
To ensure that we
maintain the highest standard of training we are using the services of
an industry specialist associated with the CII. Please send your
comments and requirements to Peter Staddon.
Millstream Underwriting Ltd
Opus Underwriting Limited
Modus Underwriting Ltd
Pardus Underwriting Limited
Catlin Insurance Company (UK) Ltd
Partner Re- Wholesale