The summer is upon us and although we expected a quietening down we have two more FCA consultation papers! Scroll down for more!
MGAA Conference 2017
On the 4th July, we held our annual conference at the Grange Tower Bridge Hotel with over 630 registered attendees! The venue accommodated our market leading capacity exchange with over 50 insurers and suppliers displaying their bespoke offerings specifically designed for MGAs.
Our Chairman, Charles Manchester, and Roger Bickmore from our Principal Partner, Tokio Marine Kiln, kicked things off! The “Evolution and Revolution” theme featured two debates during the day and concluded with a superb keynote speech by Stephen Catlin.
okio Marine Kiln
“Portfolio underwriting – the future of the specialist insurance industry”.
This was the message from Roger Bickmore when he opened the Capacity Exchange on 4th July. Read more here.
Calling all MGAs – ArgoGlobal
Chris Lee-Smith, Gobal Head of Alternative Distribution, Argo Group writes:
Data and Insurtech were key themes at this year’s MGAA conference. Read more here .
Insurance law firms launch formal network delivering expertise across four continents. Read BLM’s press release here.
Ensurance UK Ltd
Ince & Co. LLP
Should MGAs view the case against N. Brown as a signal that storm clouds are ahead for “add-on” products?
By Associate Member Duncan MintyHow likely is it that the mis-selling of a General Insurance “add-on” reported by fashion retailer N. Brown is a one-off? Read more here.
FCA consultation papers
Insurance Distribution Directive – CP17/23
FCA has now issued their second paper on the IDD and the consultation closes on the 20th October 2017. FCA expected to review the responses and issue a policy statement in December 2017. For more, click here.Senior Managers & Certification Regime (SMCR) – CP17/26
FCA has issued their consultation paper extending the SMCR, which focuses upon individual accountability.From the initial review, whilst this will not have a major impact upon MGAs it does affect their business operations and members should review this in conjunction with their individual business models. Responses are required by the 3rd November 2017. Please note this consultation purely focuses upon the “What” and a second consultation paper issued later in 2017 will focus around “How” such a regime is implemented.We will be sending out detail of how to respond to FCA and the MGAA shortly.For details regarding this consultation, click here
FCA Live and Local – New dates set!The first set of events for general insurance firms will begin in September including a Q&A round table with a panel of FCA and industry representatives.
FCA are also planning two presentations at their offices in the autumn – one aimed at retail insurers and another at Lloyd’s and London Market firms.
For firms who have a retail investment element, FCA have released the October dates.
All details, including registration links, can be found on their Live & Local webpage.
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Department for Transport – Vnuk
Following our submission on the motor case Vnuk, Department for Transport have issued their technical consultation on motor insurance. This document looks at the responses from the insurance market as a summary of such responses. The UK government will be issuing their response to this consultation paper in due course, which will set out their proposal for a way forward.
The MGAA will continue to monitor this proposal and feed back to member’s relevant details.To view this document in its entirety click here.The European Commission has also issued a paper titled “REFIT review of the motor insurance Directive” which also looks at the Vnuk case.To access this document click here.
UK government makes it illegal to charge credit card fees from 2018
Nearly £500 million collected through card charges in 2010 alone!
The UK government has said it will be illegal to charge customers a fee to use their credit cards in the UK from next year. The news will come as a blow to businesses up and down the country who charge small fees for customers using a credit or debit card and payment services like PayPal. The government announced that all fees, some as high as 20% which are only supposed to reflect the cost of processing payments, will be banned in the UK from January 2018 according to the Financial Times.“Rip-off charges have no place in a modern Britain and that’s why card charging in Britain is about to come to an end,” Stephen Barclay, economic secretary to the Treasury, said. “These small charges can really add up and this change will mean shoppers across the country have that bit of extra cash to spend on the things that matter to them,” he added. The new government rules aim to tackle surcharging by government agencies and local councils, including the Driver and Vehicle Licensing Agency. Critics claim banning the surcharges will only encourage businesses to increase their prices to compensate for their losses.We recommend MGAs remind their broking partners of this change in the law to ensure they do not fall foul of this legislation.
Lloyd’s Coverholder Reporting StandardsChanges have been made to the materials and they are available here. Please note that no new requirements have been added.
PLACING PLATFORM LIMITED [PPL]
Facilities and improved functionality/usability are targeted to go live on PPL in mid-September. This will deliver improved workflow/performance and introduce onto the platform phase 1 of carrier integration. Firms will be able to send information from PPL to the TOM’s Structured Data Capture.Contact: Caroline Wagstaff/Luther Pendragon on Tel: 020 7618 9158 for any queries.
Mathew Rutter has issued a review on insurance outsourcing. To read his informative thoughts click here.
Paul Dix, Head of Insurance Strategy at CGI has asked where MGAs fit in with regard to Digital Transformation in UK General Insurance. He speculates that a lot of attention has been drawn to the digital developments that are being undertaken by insurers in the direct marketplace, but whilst direct is an important market, transformation of the indirect channel is also deserving of more attention. According to the latest ABI data, 48% of motor insurance premiums and 76% of home insurance premiums are purchased via intermediaries (excluding aggregator web sites). To read of Paul’s thoughts click here.
In May 2017, the London Market Group and the Boston Consulting Group published an update to their influential 2014 report concerning the significance and role of the London insurance market, both globally and domestically. The London Matters Report 2017 focuses on developments between 2013-2015 in Lloyd’s and company market business and makes specific relevance to MGAs. To read more click here.
Leadership and strong direction are the key to building cyber resilience, with the boardroom being the command centre for any effective cyber strategy. Peter Wainman and Edward Hadcock set out ten ways corporate leaders can pre-empt and manage the ever-increasing scale and complexity of cyber risks. Click here for more details.
American law firm, Resnick & Louis have announced five new attorneys joining the firm. Resnick & Louis operate in Arizona, California, Colorado, Florida, Nevada, New Mexico, South Carolina, Utah and Texas.
Information about “on-boarding” with Flood RE can be found here. This eligibility document is focused towards Compliance Officers or Head of Property (Residential). Please forward questions to the Service Desk.
Pool Re has issued their incident report “Three Attacks in Three Months – Westminster, Manchester and London Bridge”. To read this informative paper click here.
Teenage Cancer Trust
Congratulations to the team at Tokio Millennium Re who raised a whopping £13,500 by shaving their heads all in aid of Teenage Cancer Trust. Ed Gooda seen here passing over the cheque to Will Smith at TMR’s office in 20 Fenchurch Street. If you would like to help TMR’s next venture contact Tom Jackson Head of Underwriting.
Prudential 100 Mile Bike Ride
André Ford ,Group Chief Underwriting Officer at Nexus Underwriting Limited is raising money for Motor Neurone Disease and invites members to support him on his 100 mile trip. To find our more and to sponsor André click here.
John Needham, PKF Littlejohn, also undertook the 100 mile challenge to raise money for Alzheimer’s Society. To find out more and support his cause please visit here.