Journal 2014
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The London Journal 2014 it’s harder to find affordable advice >> SUBJECT clients come first TITLE TO GO HERE rising to the challenge The million dollar round table London – where ensure technology and difference is valued relationships work in harmony inside this issue Graham Clarke President 3 IIL – bigger & better: membership has grown Insurance Institute of London 40% in the past five years.Allison Potts, Institute Secretary, explains what’s been going on 4 Don’t forget the client: we must work with regulators to ensure that this principle is not lost, cautions Graham Clarke, CEO, Miller Insurance Services 5 Too much management, not enough risk: Welcome Stephen Riley, Executive Director, Global Aerospace argues for better risk management he objectives of the Insurance Institute of London are ‘to 6 The big interview I: Rising to the challenge T – Young member Andy James, Assistant raise the levels of professional knowledge of those working in Underwriter, Catlin interviews IIL member Inga Beale, CEO, Lloyd’s insurance and financial services in London and to assist our 8 Why leaders need mentors: Chris Beer, CEO, members in their career development’. Merrycks, explains 9 Never let up: is the advice of Chairman of the Financial Ombudsman Service Sir Nick These objectives are achieved I have been very encouraged by Montagu on why it makes business sense to be through a wide range of the support shown when raising diverse activities, which include a this topic in our industry and I 10 Working towards inclusion: IIL Diversity Champion Erik Johnson assesses the comprehensive lecture series, particularly wish to record my challenges in making the London Market diverse this annual journal, research thanks to everyone who spoke and inclusive 12 FAME: Ken Crerar, President and CEO of the studies, educational visits and and wrote on this topic. Council of Insurance Agents, discusses what an extensive professional and the UK could learn from the US social networking programme – Every year approximately 500 13 The Lloyd’s Market Association: Ben Baker, Head of the LMA Academy, describes its each activity carefully designed volunteers contribute their approach to technical education by members for members to expertise to create the London 14 Hot topics – leading members consider what enhance their professionalism. Institute’s lecture programme the future might hold for their business sectors 17 The value of relationships in the digital age: and they donate well over 2,300 Jonathan Mudd, PI Underwriter, Brit says we London is the largest of all the hours of their time on a pro bono must work to ensure technology and relationships sit in harmony local institutes. It strives to ensure basis. Their contributions have 18 Inspiration and aspiration in Lime Street: new that London maintains the highest been enjoyed by over 10,000 graduate Ronnie Tyler, Broker, Willis tells us standards of qualifications and attendees and a further 2,000 about his first year in the business professionalism and nurtures the who downloaded the podcasts. 19 Effective non-executive directors: Rolf Tolle examines the vital role NEDs play in the long-term talent of the future. I would like to thank everyone success of a company who participated. I hope you 20 UK exit from the EU? Lloyd’s Chief Risk Officer & General Counsel Sean McGovern It was with this in mind when I have enjoyed the Institute’s investigates the implications of withdrawal for the took office in September 2013 programme of events and UK insurance industry I chose ‘the importance of activities. Please remember, this 22 The growing power of IAIS: Alastair Evans, Head of Government Policy and Affairs, Lloyd’s mentoring’ as my theme. This is your Institute and if there is describes how IAIS is shaping regulation has been addressed in both the more we can do to support you, 24 Cyber Liability: Dr Ina Ebert, expert on liability and insurance law, Munich Re, Institute’s lecture programme and we would welcome your ideas. describes why it’s here to stay and growing in this edition of the London Journal. importance 26 The big interview II: Former PFS President Robert Reid interviews IIL member Caroline Banks, the first woman outside North America to be installed as President of the Million Dollar Round Table 28 RDR – the story so far: Lord Deben, Chairman, Association of Professional Financial Advisers explains why it’s now harder for to find affordable financial advice 29 Pensions 101: more than 1,700 British people Insurance Institute of London, The Insurance Hall, Editor: Roger Jordan | Design: Laban Brown reach age 65 every day – Kim North, Head 20 Aldermanbury, London EC2V 7HY of Marketing, Syndaxi Chartered Financial The London Journal is the official magazine of the Planners, explains why the demand for 020 7600 1343 | www.iilondon.co.uk Insurance Institute of London. Views expressed by professional financial advice will increase contributors are not necessarily those of the IIL or the Officers: editorial team. The IIL will accept no responsibility for 30 The curse of short-termism: Keith Robertson, any loss occasioned to any person acting or refraining MD, Armstrong Financial, says markets now President: Graham Clarke President-elect: Stephen Riley from action as a result of the material included in this resemble an arena filled with bookies fighting to Deputy President-elect: Dominic Christian publication. The London Journal is online at make money off each other Treasurer: Jonathan Clark ACII www.iilondon.co.uk/publications 31 IIL programme preview Immediate Past President: Barnabas Hurst-Bannister ACII Institute Secretary: Allison Potts ISSN 2045-1636 | © Insurance Institute of London 2 | The London Journal 2014 Allison Potts Secretary Insurance Institute of London Insurance Institute of London – bigger and better I n the 2013–14 season we commissioned 74 lectures, 18 educational visits and five major networking events. Bigger membership Continuing professional CPD for young members Over the past five years membership development In addition to its ever popular of the Insurance Institute of London The London Institute generates networking event, our Young has grown by 40% and now stands at tremendously valuable CPD Members Committee hosted two well over 21,100 members. In the past opportunities, not only for London seminars specifically designed to year membership grew by 8.25%, and members, but also for all members of appeal to their age group. ‘Cyber notwithstanding the concerns about the CII Group around the world. Insurance – it’s going #viral!’ included the impact of changes following the The quality of our lecture programme a commentary from Sir Edward retail distribution review, the Personal is recognised by its CII CPD Garnier MP, QC a former Solicitor Finance section of our membership Accreditation status. General, and ‘Third party capital – the also grew, by 3%. In all, 4,097 new This year members benefited from end of insurance as we know it?’ was members joined us during the year, important lectures given by the Deputy addressed by Professor Alan Punter, many from firms that have achieved Head of the Prudential Regulatory Visiting Professor in Risk Financing, Chartered status. With 38% of our Authority; the Director of Supervision Cass Business School. If you missed members aged under 35, we are a of the Financial Conduct Authority any of our lectures, you can download thriving Institute. and the Chairman of the European podcasts and CPD certificates from Insurance and Occupational Pensions the CII Knowledge Services site. Strategy for success Authority. The strategic challenges Diversity In view of this rapid growth, the London faced by the reinsurance market Institute’s Council decided to conduct were a key theme with highly popular In the 2012-13 season, we appointed a strategic review to ensure that: lectures by the Managing Principal, our first volunteer Diversity Champion, Nephila Capital; the Chief Economist, Erik Johnson, ACII. The role of the • the growing membership is Munich Re and the CEO, Renaissance Diversity Champion is to work with represented at all levels; Re. Tackling UK flood risk and the the London Institute and the London • our continuing professional growth in cyber attacks were two of Region of the PFS to uncover barriers development services meet the hottest topics of the session with to diversity and to work on solutions. members’ needs; important presentations by the ABI on A diversity and inclusion plan was the creation of Flood Re and the rising • governance is conducted in line with approved by the London Council tide of cyber attacks was illustrated by best practice; during the year which includes Kennedys. Greg Case, the President direct reports to Council; improving • communications are efficient; and and CEO, Aon plc, rounded off the information on the Institute’s website; session by discussing the importance • our networking events continue to working with other interested bodies to of London, Lloyd’s and risk advisers in be successful. host lectures and events; to investigate today’s global economy. the creation of an IIL committee to A Strategy Review Working Party drive London’s further work and CPD for PFS members too was established, led by the Institute’s contribute an article to this journal. Honorary Treasurer and which Reflecting the interests of the growing Erik is standing down from this role comprised members from a variety number of PFS members, IIL hosted at the end of the session and the of backgrounds – both general eight financial services lectures and Officers record their thanks to him for insurance and financial services – and forged closer links with the PFS his ground-breaking work. The Officers representing a range of ages and London Region and plans are in hand also thank those members who have experience. to co-host a course on critical thinking kindly volunteered to take on these Improvements suggested by that and a seminar on the implications duties.