Welcome to our June 2015 newsletter. Members have suggested topics and ideas on how to improve our newsletter. We are always keen to receive constructive comments.
~The Editorial Board~
We extend a warm welcome to the following new members.
Horizon (UW) Limited; Prosure Solutions Ltd, Hiscox MGA, Imperium Insurance Management Ltd, Andeva Underwriting Agency.
Asta Underwriting Management Ltd
Mills & Reeve LLP
MGAA 1 DAY CONFERENCE
The MGAA will be holding their first one day conference on Wednesday 1 July 2015 at the America Square Conference Centre. This Conference and Capacity Exchange are free to all members.
The conference combines a Capacity Exchange which we have held for the past 3 years. The Capacity Exchange will run throughout the day starting at 11am. A programme of panel discussions, workshops and briefings will also take place during the day. This event gives members the chance to network with each other and explore opportunities to do business together.
The Agenda for the day and speaker information can be found on the Conference pages of our website. Places are limited so if you would like to attend please register as soon as possible. To book your place please either book online or email Teresa Atouguia
This year the MGAA went to BIBA in Manchester and were joined by 6 of our smaller members. Both days were extremely busy with foot fall from members and prospective members, Brokers looking for access to markets and insurers and services providers.
The members on our stand agreed that exhibiting in this fashion highlighted the professionalism of our sector and that we were in Manchester and open for business.
Here are a few comments from the participants on the MGAA stand
“I felt the MGAA stand was a great success and, hopefully, the start of even greater things in the years to come. I feel it helped put the MGAA on the BIBA map and bringing members together onto one stand provided the buzz needed to ensure it remained busy throughout, benefitting everyone.”
“Many thanks once again for asking me to join you at BIBA. I though the event was a great success for the MGAA and very much enjoyed being part of ‘the team’”
“I just wanted to say a massive thank you for making my first BIBA event one I won’t forget. I thoroughly enjoyed myself and had a fantastic time networking and discussing lots of new opportunities. The stand worked well and we had introductions from brokers expressing an interest in becoming an MGA. Which was a lead we may not have come across if it wasn’t for the MGAA. It was totally worthwhile and I didn’t feel we had any conflict with any other MGAs on the stand. I felt like we were one big family on the stand and was slightly sad to be leaving Manchester after a productive few days.”
We would like to welcome Imperium Insurance Management Ltd to the MGAA. Imperium won the Year Free Membership business card draw that took place at BIBA 2015.
If you might be interested in being on the MGAA stand in 2016 please contact Peter Staddon.
THE HUMBLE BEGINNINGS –
Reg Brown, Chairman of MGAA -– “We’re up and running!”
In the last Article I concluded with a description of the suppliers’ meeting on 26th January 2011 after which the steering committee felt confident enough to invite members to join the Association. All three member categories had given us the green light, but would we get critical mass once we asked for money?
By now the work of the steering committee was beginning to gather pace. We had a website, courtesy Brian Russell of APC Underwriting. We had a constitution, courtesy David Coupe, then of Clyde & Co, now of EC3Legal. We had a home, courtesy Dave Matcham and the International Underwriting Association. Charles Earle of Arista had drafted a Code of Conduct and Ethics. The Press were kept informed courtesy of Ian Barrett of Concise PR.
I managed to persuade Jane Comerford who I had known for many years and who just happened to be on the lookout for something to do on a part time basis. Jane became our first paid contractor, and later, employee. Until then, everything was pro bono. Her work in driving up the membership was crucial. Click here for more.
Following our April newsletter I can confirm that Jane Comerford is continuing to improve work on enhancements to our website. Launched in March the new website will enhance the search engine facility to enable members to access documents, and insurance brokers to locate MGAs who are able to underwrite their customers business. Consequently we will be calling you shortly to obtain the relevant details to enable us to collect and update the important information to aid brokers’ enquiries.
Lloyd’s have recently issued a number of Market Bulletins which are directed at MGAs and delegated authority
Code of Practice – Delegated Underwriting Y4881
Electronic Settlement Advices – Change for Re-assign Settlement reports – Y4890
Counter-Terrorism and Security Act 2015 – Amendments to the Terrorism Act 2000 – Y4895
Data Reporting Requirements for Delegated Underwriting Business – Y4898
DELEGATED AUTHORITY EXAM P 66
Members will be aware that the MGAA are involved in this CII examination. P66 is designed to develop the skills of the new underwriter in all aspects of their career. For more details click here.
MGAA – ON THE ROAD
Peter Staddon, Managing Director, and Jane Comerford, General Manager, have been speaking at a number of venues around the country.
The programme continues with the next talk due in Liverpool on the 9th June, 2015. For further details or to join Peter and Jane please contact Peter Staddon.
For those of you who missed our last compliance newsletter this can be viewed here.
Our compliance consultant, CMS, has updated our regulatory calendar which can be accessed here.
FINANCIAL OMBUDSMAN NEWS
The Ombudsman has issued their annual 2015/2016 review. A copy of this newsletter can be seen here.
The IUA have issued their May newsletter which looks at the insurance act 2015 and a number of other factors which influences the London market. Click here for the newsletter.
INFORMATION COMMISSIONER NEWSLETTER 2015
The Information Commissioner has issued their May newsletter which can be downloaded here.
Associate members PKF Littlejohn have issued an update on the VAT position post the March Budget. They also explore recent European Court of Justice position on a number of important cases. You can read more here.
MOVING INSURANCE TEAMS
Earlier this year the Association’s Conduct and Ethics Committee reviewed the position regarding teams of insurance personnel moving from one insurance business to another. There are obviously employment contract issues involved, therefore we asked our legal advisors EC3/Legal to write a paper addressing some of the issues around this problem. To read this article, click here.
LLOYD’S MEET THE MARKET - BIRMINGHAM
Lloyd’s is delighted to invite you and your colleagues to their regional ‘Meet the Market’ event which will take place on Wednesday 7th October 2015 at the Hilton Metropole in Birmingham.
Please register here.
FCA – THEMATIC REVIEW ON SME CLAIMS
Members will recall that FCA visited the MGAA in June 2014 to discuss how MGAs handle SME claims. This was part of the FCA’s process in scoping out a thematic review prior to their findings being taken to the FCA board for approval.
On Friday 22nd May 2015 the FCA held a seminar, hosted by Simon Green - Head of General Insurance & Protection, where they detailed their findings and identified potential failings highlighted by the thematic review. This analysis was based around 200 claimants and the FCA used the services of a loss adjuster in a “deep dive” into a select number of claims files to establish some of the identified failings.
The FCA carried out this review as they “wanted to understand the extent to which claims from SMEs who are less likely to be sophisticated customers and who often exhibit similar knowledge and experience to that of retail consumers, were handled promptly and fairly. We also wanted to understand the role that different firms played in the handling of claims, particularly given the prevalence of outsourcing of claims by insurers.”
The FCA consulted 25 firms, including 5 MGAs, and as part of this review interviewed senior managers and claims handlers. Due to the potential size of this review the FCA restricted their investigation to first party claimants where the claim was settled for in excess of £ 5,000. This review excluded motor, liability and indemnity policy claims and related to claims which occurred in the previous two years. For further details click here.
MGAA MARKET BRIEFING
We continued our market briefings with Cyber risks by HSB engineering.
Members can listen to the Podcasts which are available on the MGAA website. Watching these podcasts qualify for one hour CII CPD.
LEARNING AND DEVELOPMENT
The MGAA is committed to educating our young members to provide understanding and knowledge about our sector. Working with Lloyd’s, we held our first learning and development session where 24 of our younger members spent a day in Lloyd’s understanding their processes, delegated authority, claims and emerging risks. This included spending time on the “underwriting box” to better understand the underwriters’ activities.
OUR CHARITY FOCUS
Members will recall our work with the Insurance Charities and we are pleased to confirm that their latest newsletter is now available which features details of recent and upcoming events for Insurance Charities Awareness Week and the golf day.
THE INSURANCE CHARITIES NEEDS YOU
Many thousands of individuals and families in the insurance world have been helped by the industry’s charity over the past hundred years but there are still many thousands of people who do not know it exists.
During Insurance Charities Awareness Week, The Insurance Charities looks to work with companies and individuals to ensure that those they are in contact with, know of the help which could be available in times of difficulty. Support may be needed to purchase an essential piece of equipment for a child with challenging special needs or to finance therapy which is not available on the NHS. Equally, help may be needed during a period of temporary unemployment or a longer time of absence from work due to ill health. Whatever the circumstances, where the individual or a dependent relative has a significant period of time in insurance, The Insurance Charities is keen to see if help can be given.
Over the last couple of years the Charity has begun to establish partnerships with other organisations which have specialist knowledge of and tools to assist where depression, stroke and autism add to families’ concerns. This year it will be consolidating these partnerships and adding others including one to help with dementia and Alzheimer’s disease.
Many individuals apply to the Charity only after many years of financial and personal distress. If they had known about the Charity earlier, some of that distress may have been avoided. You can help by ensuring that your organisation is signed up to Insurance Charities Awareness Week (22-26 June) as well as take a table at the Charity’s luncheon at the RAC Pall Mall which brings ICAW to a close on 26 June. Please contact firstname.lastname@example.org to be a part of what is going on in June as well as in the longer term. More details of the lunch can be found here.
Jane is planning to abseil in aid of Street Child, a worthwhile charity that is supporting Ebola orphans in Sierra Leone and Liberia. She has been involved with this charity for the past 3 years as a regular supporter and is impressed with the work that they are doing. This may not seem much but I am told she is terrified of heights and this is therefore a huge personal challenge. Learn more about Street Child.
Jane has committed to helping them to raise additional funds to help the children orphaned by Ebola. If you feel like supporting Jane and her daughter, Victoria, the link to their fundraising page is here.
Charles is the Chairman of the Associations’ Conduct & Ethics Committee. What you may not know is that Charles is doing his bit for a worthy cause and is seeking help with fund raising.
On 23rd May Charles, together with his dodgy knees, walked from London to Brighton in support of Parkinson’s Nurses UK. This was a magnificent 100km or 60 miles plus in a continuous effort of 20 hours or more.
You can still support Charles going to www.punkwalk.co.uk – click on the Donate tab and find his name, please give what you can or visit https://www.justgiving.com/Charles-Earle.
Members are able to access Cover.net’s monthly newsletter. You will have the ability to adapt to regulatory change becoming more and more critical to all levels within the Insurance Market, one of the UK's leading MGAs tells Cover.Net how their systems are helping them fulfil their compliance needs and meet their regulatory requirements.
You can sign up for their quarterly newsletter here.
PTARMIGAN UNDERWRITING SELECTS WILDNET'S MGA PROFESSIONAL!
Ptarmigan Underwriting Agency, a specialist MGA writing Cyber business, has chosen Wildnet's MGA Professional solution for their online policy administration system.
Ptarmigan is part of the Lucas Fettes Group and is a specialist MGA writing Cyber/Technology insurance on behalf of certain Lloyd’s Syndicates and other company markets. Near the end of 2014, Ptarmigan undertook a comprehensive market review of systems available to MGAs which resulted in Wildnet being selected to be their strategic software partner.
Ptarmigan are now live and writing business on the MGA Professional platform. For the full press release click here.
ORDNANCE SURVEY DISCUSSES ISSUES AFFECTING THE INSURANCE INDUSTRY IN 2015
Many issues such as flooding, terrorism and fraud have emerged from the insurance industry so far this year. Colin Fennelly, a Business Development Manager at OS discusses some of the risks to your business and how we can help you to manage some of these risks that your business may be facing during 2015.
Xuber are looking forward to sponsoring the Managing General Agents’ Association Inaugural Conference at the America Square Conference Centre on the 1st July. MGA’s face a very specific set of challenges: They hunt niches, and are by their very nature typically entrepreneurial. Many MGA’s are undergoing the evolution of businesses from small start-ups to operating companies of scale, this is not a trivial journey. For some MGA’s this is complicated by a strategy to share costs and operate within a common platform.
Once established, understanding, analysing and processing the data held within the business becomes crucial to driving growth. The business must also be agile enough to respond to market opportunities and stay competitive.
To address these pressures IT is fundamental, and at the heart of efficiency and competitive advantage. But frustratingly it’s often the core system that stands between you and your business goals.
The "Foundation for Growth" session from Xuber will examine the issues your business faces and provide insights into navigating the way forward. Whether you are a new venture or an established MGA, please join us at 15.00 pm at our "Foundation for Growth" presentation in the Fleet Suite. We would look forward to showing you the system, and to discussing aspects of your business and potential challenges with one of our solutions experts.