Marketing Evolution High-Value Service

April 2010 www.broking.co.uk

Marketing evolution Will investing in digital pay off? High-value service Brokers need to highlight their role in HNW

Heart of Oak

Bob Trott on a decade of growth oee,rmi ihycompetitive. prices, highly Our remain however, cover. not do policies many typical that protection of level offering high life, a in things finer the safeguard to designed are policies landlord and motor household, Legacy’s clients, & worth Home net high and mid your For life in things finer the For emd vial oayn te hnteitne eiin,ete nisoiia omo n erdcin The reproduction. any or form not original must its It in plc. it. either Holdings upon Allianz recipient, reply of intended should subsidiary else the owned wholly no-one than a and other is only anyone company use contracts. to insurance broker available 1DB. general insurance arranging made for GU1 and be intended on, Services Surrey, advising is Financial is Guildford, material Authority. business Services promotional Ladymead, permitted Financial This Our the 57 307523. by is office: number regulated register and Registered Authority Authorised Limited. No.3007252. England Services in Insurance Registered Legacy and Home 8370 893 0844 call or form application agency an download to become-a-broker at: website an our www.homeandlegacy.co.uk/brokers/ up visit set Simply is us. do with to agency need you all portal, online broker our via products these access To out? miss to afford you Can

ACPERHL1347 4.10 Contents April 2010

28 The PB Interview Cultivatingastronglegacy Andrew Tjaardstra talkstoOak Underwriting’s Bob Trott about a decade of high net worth business.

CONTACTS 05 News Analysis 22 Focus Editor – Andrew Tjaardstra MoJ reform in road accident PI claims and Promoting brokers online Tel: 020 7316 9316 responsestotheBudget. Darren Davidson explains how to develop [email protected] high-value digital marketing tools. Reporter – Emmanuel Kenning 11 Technology Tel: 020 7316 9653 Emmanuel Kenning looks at 26 Surviving the perfect storm? [email protected] developments in commercial lines e-trading. Personal motor claims come under the eye Acting production editor – Philip Bird Laurence Gunn 12 UK Broker Summit of ahead of Biba 2010. Group art editor – Nicky Brown AretrospectiveofthesecondannualUK 32 Market Watch Group editor-in-chief, insurance division Broker Summit by Emmanuel Kenning. Anthony Gould Kingsofthecastle [email protected] 14 Editor’s Comment and Viewpoint Emmanuel Kenning ﬁnds that brokers Sales manager – Oli Henry must talk up their value in high net worth. Tel: 020 7316 9071 [email protected] 16 Legal 34 Turning professional Head of key accounts – Sajeeda Merali Dan Preddy on what brokers might see Edward Murray examines what difference Tel: 020 7316 9765 [email protected] from the regulator this year. The Aldermanbury Declaration will make. Head of events – Simone Broadhurst Tel: 020 7316 9055 18 Management Clinic 36 On the Move [email protected] Peter Done examines working with family; Sales executive – Ian Ritchie tackles solvency requirements. Chris Finnegan 37 Statistics Tel: 020 7316 9632 20 Broking Success The top 20 UK commercial motor insurers. [email protected] Playingwithastraightbat Commercial director – Phil Davison Group production manager – Rajan Amin of Coversure’s Kennington 38 Policy Market Lorna Graham branch tells Emmanuel Kenning about Production controller – Matt Parle approaching the £1m GWP mark. Marketing manager – Ro Osborne 42 Competition and Puzzle Circulation manager – Sarah Smith Publisher – Alex Broad Tel: 020 7316 9382 [email protected] Group publishing director, COVER BOOK insurance division – Derek Peck Managing director, insurance division TheDASLittleBookofBusinessLaw–spring2010:Whose Rights Graham Harman are Right? If your book is missing or you require further copies, email [email protected] Subscriptions and enquiries Incisive Media, c/o WDIS Units 12–13 Cranleigh Gardens Industrial Estate, Southall, Middlesex UB1 2DB tel: 0845 155 1846 fax: 020 8606 7303 Reprints and e-prints enquiries to Alex Hall otherwise disposed of in a mutilated condition or in any [email protected] Sales and marketing manager unauthorised cover by way, or by trade, or annexed to Subscriptions: UK £95pa, The Reprint & Licensing Centre, 4 Ingate Place any publication or advertising matter without first obtaining Europe £100pa, Rest of World £130pa London, SW8 3NS written permission from the publisher. Incisive Financial ISSN: 1355 N/0519 Tel: 020 7501 1085 Publishing, does not accept responsibility for the loss or Published by Incisive Financial [email protected] damage to unsolicited photographs and manuscripts, and Publishing Limited [email protected] www.rl-centre.com product samples. The cost of returning such materials © Incisive Media Investments Incorporating Policy Market Limited 32-34 Broadwick Street, must be paid by the original sender. London, W1A 2HG Printing BGP, Biscester. No part of this publication may be Average net circulation reproduced, stored in a retrieval system or transmitted from 1 July 2008 to 30 June 2009 is 11,664 www.incisivemedia.com in any form or by any means without the prior written permission of the publisher or editor. This is considered Cover photography: a breach of copyright and action will be taken where this Fiona Compton occurs. This magazine must not be lent, sold, hired or

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DAS Legal Expenses Insurance Company Limited is authorised and regulated by the Financial Services Authority. News Analysis Personal injury RTA reforms set to launch Emmanuel Kenning investigates the changes designed to make personal injury claims from road trafﬁc accidents simpler, quicker and cheaper

ON 30 APRIL 2010, the Ministry that the majority of road traf- tors as possible. It is a stream- most cases of a rear-end shunt, of Justice’s long-awaited per- fic accident claims fall within lined electronic system, moving there’s no argument on liabil- sonal injury reforms for road its level. Claims are going to be away from paper that speeds up ity.” Hebburn urged brokers traffic accidents come into pushed through more quickly the process to make compen- to continue to give insurers as force. A new electronic portal and brokers should expect to be sation paid quicker, which is a much notification of a claim for the transfer of information kept informed by insurers.” good thing all round.” as possible: “If our first notice between solicitors and insur- Graeme Trudgill, technical of an accident is a claim com- ers, a fixed-cost structure and Noticeable effect and corporate affairs executive ing through an electronic portal tight deadlines could see claims According to Summers, on a at the British Insurance Brokers’ from a solicitor then it is too late – where liability is accepted day-to-day basis brokers will see Association, also urged brokers because our clock is running.” – agreed within 30 days. Justice little difference in their claims to educate their policyholders Hebburn cited drivers with minister Bridget Prentice com- handling processes but there to provide comprehensive and third-party only cover and commented: “This scheme will mean will be a positive effect. He said: detailed accounts of incidents mercial fleet as two areas where that everyone knows in advance “Claimants should benefit from at the outset and described the there can be a delay in notifica- what the costs will be and it will quicker settlements that, before 15-day deadline as “extremely tion. He added: “Once liability is be simpler and quicker to com- the reforms, were sometimes tight”. He added: “Brokers must admitted, it can’t be changed. If plete a claim.” unnecessarily delayed. This will encourage all their clients to a claim falls out of the process Antony Summers, personal reduce the burden on us and our report motor accidents imme- it cannot re-enter. Instead, you clients sales director at Jelf- uninsured loss recovery provid- diately. Early notification of negotiate as at present and you owned Clarke Roxburgh, said: ers to send numerous reminders accidents provides their insur- lose the time limits.” “These government-led reforms as to the claim position.” ers with the best opportunity In theory, the potential for are the most radical changes Paul Hurley, business devel- of managing costs if an injury cost savings could lead to a to the claims process…seen for opment and marketing direc- claim materialises. The aver- reduction in the rate of claims some years.” tor at Arag, confirmed that his age saving could be anything up inflation and Hebburn stressed: The reforms focus on claims company “is moving in the right to £1,800 for a claim under the “You cannot stick your head in worth between £1,000 and direction and that everything new process.” the sand on this. If insurers are £10,000 and, with up to 500,000 will be in place for the end of not ready then it will hit them individuals expected to be the month” but pointed out that Long-term backer financially.” affected, it is one that brokers “it is a wait-and-see situation Allianz is one insurer that has should be prepared for. Nick for legal insurers.” He agreed supported the proposals from McMahon, partner at London- that, while brokers may not be the outset. Roy Hebburn, divi- based law firm Reynolds Porter directly affected, they still have sional claims manager at the Chamberlain, said: “The scheme a key role to play. He said: “The insurer, explained: “If insurers won’t apply to catastrophic most important aspect is for are organised, they take advan- events or where liability is dis- brokers to get information as tage of the process and the puted but it is widely perceived quickly and efficiently to solici- cost of claims will reduce. In The new process Stage one: The claimant’s solicitor completes the claim notification form and sends it to the insurer, which may admit or deny liability within 15 working days. There is a £400 fixed fee at the end of the stage for the defending insurer. Stage two: Where liability is admitted, the claimant’s solicitor completes and sends a settlement pack to the insurer- compensator. The insurer-compensator has 15 working days to accept or a further 20 working days to negotiate through counter offers. There is an £800 fixed fee for the insurer attached to this stage. Medical evidence is gathered between stages one and two: there is no set time period because medical reports must reflect the claimant’s injuries and recovery. Stage three: This stage comes into effect only when the relevant parties cannot agree a settlement figure; the claim then proceeds to a quantum hearing. Fixed costs of £250 for a paper hearing or £500 for an oral hearing will be met and there is no time limit involved. Source: www.rtapiclaimsprocess.org.uk

April 2010 5 News Analysis Budget 2010

from so-called small and medium-sized enterprises, so A Budget for business? we’re pleased to see more cash available for lending and a cut in business rates will make their Emmanuel Kenning reviews the profession’s response to lives a little easier. As usual, of course, it looks like a case of the last Budget before the upcoming general election giving with one hand and taking away with another.” IT WAS TITLED “Budget 2010 sense. I take my hat off to the The mixed sentiment was – Securing the recovery”. The British Insurance Brokers’ seen in two polls released Conservatives described it as Association, the Institute of shortly after the Budget. A poll empty and lacking in vision Insurance Brokers and the of over 1,000 business leaders while the Liberal Democrats Association of British Insurers. by the Institute of Directors said that it was full of insub- It is a good example of all the found that 45% thought the stantial waffle. Now the dust industry pushing together: the Budget would damage the has begun to settle, what did changes suggested would have economy whereas 55% believed the broking community think been a logistical nightmare.” it to be neutral or positive. about the Budget’s proposed In a survey of its members, business measures? United the Forum of Private Business The most relevant news for Ellis’ was a sentiment sup- found that just 5% believe brokers came in the announce- ported by Ann Peel, head Alistair Darling’s proposals ment on insurance premium of technical services at the Darling: election looming will create an environment for tax legislation. The amend- Institute of Insurance: “There their businesses to develop. ment, in force from 24 March, is no doubt that, without our in gross domestic product for Perhaps most revealingly, means that administration and [combined] intervention, bro- the fourth quarter of 2009 to 70% of respondents said they arrangement fees charged by kers would have been forced to 0.4%, announced that legally expect a more realistic budget brokers for individually rated disclose their fees on personal binding commitments had to be delivered after the gen- products including conven- lines business to insurers. been signed by RBS and eral election. tional motor and household “In turn, the insurers would Lloyds to lend £94bn to busi- It was a point taken up by insurances should fall outside have had the extraordinary ness over the next year. the Centre for Economics and the IPT net. task of accounting for tax on Ellis welcomed the news but Business Research, which Grant Ellis, chairman professional fees over which admitted that he remains to stated that the Budget failed to at Broker Network, com- they had no control.” be convinced: “The sentiment address the fundamental ques- mented: “It has clarified and Graham Coates, chief trad- is right but they’ll continue to tion of how the record public narrowed the scope of IPT ing officer at Bluefin, thought pay lip service unless there is sector deficit will be brought and is a victory for common it was a fairly dull budget, a complete change in attitude. under control. Key Budget designed not to upset too many Whether they’ll actually start Ben Read, managing econo- measures for brokers people in the run up to the gen- to lend remains to be seen.” mist at Cebr, commented: “Our Capital Gains Tax Relief – 10% eral election. He was, however, forecasts suggest that at least a tax rate on the first £2m pleased by Alistair Darling’s Rates change further £35bn of spending cuts Lending – Lloyds to lend £44bn, announcement that the 10% Another element designed to and tax rises will need to be RBS £50bn band of capital gains tax relief support small businesses was found to meet the Chancellor’s Government prompt payment for entrepreneurs would be a temporary increase in the relatively modest aim of get- – 80% of all undisputed invoices increased from £1m to £2m. level of small business rate ting the deficit down to a still- paid within five days and suppliers Coates said: “The doubling relief in England. unsustainable four per cent of to ensure subcontractors paid of CGT relief for entrepreneurs The Chancellor announced GDP by 2014-15.” within 30 days could encourage more selling, that, from 1 October 2010, With good news on IPT and Small business rates – Full relief which is good news for brokers any eligible business occupy- mixed news for business, bro- for eligible small businesses in such as ourselves on the acqui- ing premises with a rateable kers could be forgiven for being premises with rateable value of up sition trail because it should value of up to £6,000 would indifferent to this year’s Budget. to £6,000 and tapering relief to make it easier to do the deals.” pay no business rates for one With a general election to be £12,000 Annual investment allowance During his speech, year with tapering relief to announced after the House – £100,000 for qualifying capital Chancellor Alistair Darling, £12,000. of Commons’ break, the next expenditure on plant and machinery who has since been cheered by Coates noted: “The vast budget will set the true agenda Source: HM Treasury an upwards revision of growth majority of our revenue comes for the next parliament.

6 www.broking.co.uk CELEBRATING 10 YEARS OF OAK UNDERWRITING PLC

Oak Underwriting would like to thank all its brokers and clients for their support over the past 10 years.

OAK OAK UNDERWRITING PLC For further details please contact Oak on T: 01608 648100 or E: [email protected] News Analysis Quinn Insurance

man Geoffrey Negus told PB: Quinn enters administration “If it is good enough for the Financial Services Authority Andrew Tjaardstra investigates the ramifications of the then it is good enough for us: we don’t vet providers. Irish insurer’s troubles for UK and Irish policyholders as “Our firms do not need to take well as other stakeholders immediate action because they will be covered until renewal. We have had a continued dia- QUINN INSURANCE can no out, following a phone call logue with the FSA and the Irish longer take on any business in from Quinn’s chairman Jim Financial Regulator.” He added the UK after Ireland’s watch- Quigley on 24 March, that it that the regulator, part of the dog, the Financial Regulator, had been underwriting guar- Law Society, had no preferred called in the administrators antees to shareholders for the broker or insurer and did not following allegations about wider Quinn Group of €448m, have the capability to go into the firm. The insurer will undermining significantly partnership with one. still be allowed to operate in the insurer’s balance sheet Neil Nimmo, executive chair- Ireland and its life arm has and meaning that liabilities man at Lockton Risk Solutions, not been affected. The firm exceeded assets. questioned if Quinn would have had been trying to shore up its Additionally, the regulator the capacity to pay claims that capital solvency throughout said that the insurer had not might take years to materialise 2009 but suitable plans never come up with a plan to restore when they weren’t taking money materialised. health to the business. The for new premiums. He also said The insurer fell into trou- Quinn Group owes €2.8bn that the market would harden ble after the regulator found to Anglo Irish Bank and the as a result of Quinn pulling out. news came at a poor time for Quinn:quittheboardin2008 the Irish economy, with AIB Frequent updates www.broking.co.uk poll and and Bank of Ireland seeking wrong” and said that its finan- Prime Professions has 1,600 sin- results – March 2010 to raise €10bn between them. ciers had been working “around gle-practitioner solicitors with Would a ban on referral Sean Quinn had built up a the clock” to meet its demands. Quinn. Director Richard Brown fees in personal injury 15% stake in Anglo Irish Bank The company also “entirely dis- said that clients were informed cases impact your revenues using money from Quinn agreed” with the regulator that of Quinn’s status at all times adversely? Insurance but this was almost its UK business is “currently and will wait for the regulators wiped out when it was taken unprofitable”. Quinn cited that for further advice. He said, like 50% over by the government. the group had given the Irish other brokers, that a security treasury over €1bn in tax since committee had met regularly to 40% Loans and fines starting in 1973. discuss Quinn’s status. Sean Quinn resigned from the Paul McCann and Michael Following Quinn’s decision board of Quinn Insurance in McAteer of Grant Thornton to withdraw from a Moody’s 30% October 2008 after being fined have been appointed joint pro- UK rating in July 2008, the €3.25m for failing to meet reg- visional administrators. The Royal Institute of Chartered ulatory requirements regard- insurer has 365,000 customers Surveyors dropped its approval 20% ing substantial loans from the – including many in construc- of the insurer. insurer to related companies tion – and over £200m gross As PB went to press, brokers 10% in order to buy shares in Anglo written premium in the UK, and clients alike were still wait- Irish Bank. Then, he described alongside 920,000 policyhold- ing for more guidance from the the insurer as “very profitable” ers in Ireland. respective Irish and UK regu- 0% and this time he has defended lators as the investigation into himself by writing to every Solicitors Quinn’s finances continued. A little member of the cabinet, com- Quinn has a large segment of The regulators will look into Not at all

Significantly plaining that the action was the UK solicitors’ professional the non-disclosure of loan guar- unnecessary and that 5,500 jobs indemnity market, insuring antees, incorrect calculation of April’s poll question: Will the solicitors’ PI market harden? had been endangered. many smaller solicitors, includ- solvency and reserves and the To vote in this month’s poll, go Quinn Insurance has ing more than 2,000 clients lack of systems and controls to www.broking.co.uk described the regulator’s and over £25m GWP. Solicitors that may have allowed these actions this time as “completely Regulation Authority spokes- events to take place.

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2010

SUPPORTING PARTNER Management Clinic Employing family

sight and it is not something you want played out at work. Nixing nepotism The main problem with family members working together, particularly where one is senior to another, is that I am the managing director of a broker staffed they might be treated differently due to mostly by family. We have some employees who are the family relationship. There is always the risk that they will be treated more not relatives, so how do I ensure that we have a fair leniently than they should be because workplace where all employees are treated equally? they are family or, conversely, are treated more harshly in order to overcompensate for any family relationship. WHEN THINKING of keeping things workplace suddenly becomes a difficult Family members can have difficulties in the family, always remember that place for all employees concerned. in adapting to a change in the dynamics employing family members is no different Leaving aside the potential for the of a relationship, with parents having from employing anyone else: you still workplace to become involved in a messy difficulty in treating their children as have to adhere to employment legislation relationship breakdown, there are less colleagues and adults. It can be very and treat them no differently from other apocalyptic difficulties that can occur. difficult for people to adapt to taking employees. There is a common misconception instructions from someone who they You do not want to be anywhere near that family members will pull together see as a junior, particularly if they can a situation in which a husband and but that is not always the case. Think remember what they were like when they wife work together and then the wife carefully before promoting family were five years old. sacks the husband’s secretary for having members to management because It can be just as hard for a family an affair with him. This can escalate placing one family member in a senior member to adapt to a position of if the husband reinstates her: the position over another, especially if responsibility over their relatives, they are siblings, can be troublesome. especially if it involves putting a sibling, Sibling rivalry is rarely a pretty parent or child through disciplinary or capability procedures. Family members are vulnerable to accusations that they have only gained or kept their position because they are family. Among non- related employees, there can be reluctance to raise issues of concern about the behaviour or performance of the owner’s family because of a belief that ranks will be closed to protect family members. One of the most overlooked problems can occur when there is a family holiday or event, such as a wedding, a time when a fair chunk of the workforce can be lost. Ensure you have sufficient staff numbers to make sure that your business continues to operate normally. Hiring family members can be a positive step for a company but it is a step that should be taken with your eyes wide open to the possible pitfalls along the way. Always remember not to show bias towards family members. Disgruntled staff can use bias as an example if they decide to take you to employment tribunal because they feel discriminated against.

Peter Done, managing director, Peninsula

18 www.broking.co.uk Management Clinic Solvency

position weaken, or that of any other company in a group of which they might be a part, as a result of prevailing economic conditions. The letter reminds firms of the need to demonstrate adequate resources at all times, not just twice a year when the Gabriel return is due. It also reminds firms that the threshold condition should be seen as a minimum and that firms should have adequate reserves to protect them against unforeseen future threats. For a small firm, for example, you would need to consider how you would deal with the loss of a substantial client, irrespective of how good your relationship is, as if his firm failed, your income would disappear. The letter also expresses the FSA’s concern over some firms’ weaknesses in client money procedures which in turn could lead, in the event of failure of that firm, to the trust status of the client account being challenged, and as a result, client money being at risk. The FSA urges firms to carry out a review of their solvency and you can be in no doubt that they will be looking closely at both this issue and client money procedures in the coming months, when engaging with firms. You can see the full text of the letter and the supporting information (only six pages in all) at the web address www.fsa.gov.uk/pubs/ceo/Dear_ceo_ltr.pdf. As with other compliance consultancies, Off the radar? we have spent considerable time in recent months ensuring that client money procedures are fully compliant and The FSA has issued another ‘Dear CEO’ letter to adhered to. bigger firms on solvency. As it hasn’t seen fit to As a controller of your firm, it is your responsibility to know. In the event of include my firm, presumably it doesn’t apply to us, something going wrong and you being as we must be ‘under their radar’? called to account by the FSA, it will be no defence to say that you relied on your book-keeper or even the firm’s auditors to ‘DREAM ON’, would be my first response. and the subject of the ‘Dear CEO’ keep you informed. May I respectfully remind you that the letter reflects concern expressed by the So my advice would be to carry out a FSA rules apply to all regulated firms, FSA following work they have done in review of your solvency position and of whatever their size. the sector. your client money arrangements. However, the FSA will take the view You will be aware of the threshold Your compliance officer (if you have that response should be proportionate, so condition (condition 4) which states that one) or your compliance consultant for example, your procedures manual will the firm has enough regulatory capital should be fully conversant with what be a slightly less weighty tome than Aon’s, with which to operate. action you need to take. for example. In the letter, the FSA asks firms to look The solvency issue which you mention at circumstances should their financial Ian Ritchie, director, RWA Group

April 2010 19 Broking Success Sponsored by Coversure (Kennington)

with everything they said and that they sent you to Swindon for training.” His decision was not, however, endorsed Playing by his father, who felt that the life industry had a bad reputation. Amin reveals the advice his dad gave when he started as a tied-agent in 1991: “He said to me ‘don’t with a ever sell a policy where if you go to a wedding and see someone you have sold to, you have to turn your back and look for a door to get out. Sell as if you are selling to straight me so that the person will walk to you and shake your hand’.”

First steps At the end of 1996, Amin joined bat Croydon-based RA Insurance Services to work as an independent financial adviser, a period he describes as “the best three years I’d ever had”. It was in August 2000, when a friend was made redundant during the closure of the AA’s high street offices, that Amin jumped at the chance to open his first Coversure franchise in Wimbledon. The partnership was not destined to last. He comments: “Unfortunately we fell apart. We didn’t share an ethos for the business so we parted company.” Despite the setback, Amin was determined to pursue a career as his own Emmanuel Kenning meets Rajan Amin, a golf boss. He selected Coversure again – a franchise group with 87 franchisees and loving cricket fan working in the shadow of the £65m of gross written premium. Brit Oval and a broker determined to break the To establish a franchise with the company currently costs £15,000 (see million pound barrier PB Jan-Feb 2010, pp.32-34), followed by a 10% charge on commission and fees OPENING HIS OFFICE in Kennington in property owners’ insurance, businesses a year, for which franchisees receive a 2003 was quite a challenge for Rajan Amin. and liability. The office now has 85% of broking-in-a-box package. For the first two years, he did not receive its business in the commercial arena, has Amin cites the agencies and support a wage. Amin comments: “It was only grown every year since opening bar one offered as the reasons for choosing this because my wife Hina was working and and has started 2010 very strongly. Amin route over starting up alone: “They give me we had another income to live off that we highlights: “In January and February this the authority, power and control to run my didn’t have to shut the office down.” year, compared to last year, we have grown own office. You don’t have an overbearing In his own words, Amin took a by 27%.” big brother.” He warns anyone thinking “scattergun approach” to building his Pursuing a career in financial services of taking the same steps to be prepared business initially, buying databases from only occurred to Amin in his mid- for plenty of hard work and to ask a key Yell, sending out 12,000 mail shots and twenties and he focused on assurance question of themselves: “You will have quoting on every type of insurance under rather than insurance at first. His control of your own destiny: is that the the sun. With disarming honesty, he parents owned a newsagent and a sort of life you want to lead? When we first admits: “I was foolish, I overestimated and regular customer recommended that he opened, I used to work until nine and I my business plan was way off target.” contact Allied Dunbar. Amin explains: used to come in on a Saturday.” With two full-time employees to pay, “I talked to the group director, an ex- While the office sits proudly on the high he quickly worked out that his business military captain; in fact, 75% of the team street, Amin says that it is less passing needed to specialise and settled on were ex-military. I was very impressed trade than repeat business and word-of-

20 www.broking.co.uk “We pay for the CII training but we also make The council runs a one-day course on the legal requirements of being a staff sign a declaration that if they fail then they landlord along with advice on treating will pay for a second test out of their own pocket tenants properly. Any landlord attending the council’s course (which it runs for 33 and take it within three months.” Rajan Amin, Coversure London boroughs) is entitled to a 15% discount on a landlord’s building insurance mouth recommendations that allow him to being predominantly commercial scheme underwritten by Towergate’s to access the opportunities within his lines based and has developed a bespoke underwriting arm – a Coversure exclusive local community and further afield. The technology system. Amin mentions this of Amin’s Kennington branch. Further office, which has retention rates of 80% improved insurer access as one reason that deals with other London councils have and above across all its operating areas, his plan to push into taxi insurance will be followed, including a rent guarantee focuses on cross-selling policies and is a success. The office has also added Polish product and buildings contents product. fast approaching a rate of two for each to the impressive roster of client languages Like all brokers, Amin prizes good client. He says: “We don’t sell on price only catered for – which also includes Sinhalese, administration and efficient service from and we make that clear from the word Tamil, Punjabi and Hindi – all of which insurers. For property owners’ cover, he go. If you want to be a successful local again helps in reaching the 200 taxi offices praises Policyfast – a sister company and community broker then you can’t turn in its marketing area. Coversure’s underwriting agency – as well away certain types of business just because Adverts in Asian Voice, free weekly Polish as Allianz and Fortis. On quotes, taking out you think ‘I don’t want to do it’. You’ve newspapers and StreetSkins – an idea policies, adjustments, renewals and claims, got to find ways of writing it rather than featured on Dragons’ Den for adverts to he says: “We don’t want to be chasing looking for ways of saying no.” be placed on roller shutters on shops at an insurer. If you can do it electronically Now well established, Amin is keen night – are also being tried in a concerted online then that is the sort of insurer we to push harder to reach his goal of marketing drive. want to deal with.” £1m premium income. A big help in Situated less than 500 metres from the achieving this aim is Coversure’s online Training Brit Oval, the former amateur medium-fast presence. For instance, a Google search on Investing in staff is integral to the broker: bowler is also now a golf devotee, although property owners’ insurance, one of Amin’s Amin organises this through the Chartered he concedes that hitting the ball straight franchise’s key areas, returns Coversure Insurance Institute and achieving his own remains a challenge. He says: “I just can’t on the first page; potential clients can then Certificate was a valuable learning curve in get enough of golf. I have been playing for source a quote online or find the contact understanding the importance of training four years and have a handicap of 24. It’s details of a local branch. and qualifications. He is eager for his staff completely under my skin.” Amin is also focusing on previously to have the same opportunity: “We pay Amin has also been a Rotarian for four unavailable business areas. Coversure for the CII training but we also make staff years and is currently president of the has switched from a personal lines focus sign a declaration that if they fail then they Balham chapter. He says: “It is purely will pay for a second test out of their own about wanting to give something back to Coversure (Kennington) pocket and take it within three months!” the community, about professionals getting The final piece in the jigsaw is new together and giving up their time for Director: Rajan Amin Established: 2003 product development: an ongoing process. people who are less fortunate.” The Rotary Number of staff: Four Working with Lambeth Council, Amin has, Society’s motto seems to fit this man, who Main line of business: Commercial for instance, created an accredited scheme lists honesty, integrity and openness as the Location: Kennington (London) that has secured more business with qualities that sum up the ethos of his office: GWP: £700,000 property owners. service above self. Photograph: Jane Wilson

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April 2010 21 Focus Digital marketing Promoting brokers online Many brokers are still reluctant to dip their toes in the digital waters to market themselves, yet a well-planned and executed strategy can be far more cost- effective than traditional methods, writes Darren Davidson

IT IS ALMOST impossible to switch capabilities of digital marketing and the route to market compared to the broad on the TV these days without being costs associated with it”. strokes of a large-scale brand campaign confronted by a rotund opera singer In a bid to build confidence and of the likes of the big aggregators. with a dodgy moustache belting out tackle this problem, Aviva launched a Perry Wilson, founder of InsureandGo, “GoCompare!” or a talking meerkat with website and online trading platform argues that the tendency to dismiss an a distinctly Russian accent wearing a for its brokers called Fast Trade. The internet-based marketing initiative in smoking jacket. idea behind the initiative is to provide favour of other methods of communicat- These eye-catching TV campaigns, brokers with an easy-to-follow means of ing with customers is principally due to backed by multi-million pound budgets, transacting business, searching product the company’s business model. are the preserve of brands with deep information and sourcing instant Wilson claims that 65% of pockets and access to the best creative documentation. InsureandGo’s business originates talent that the media has to offer. In addition to Fast Trade, Aviva also from web activity. This figure, though, Smaller brokers cannot compete when keeps brokers updated with the latest pales against the 75% of the company’s it comes to media spend, though company news and information through revenue that is generated from more the opportunity is there for smaller its corporate umbrella website. lucrative premiums business that are brands to raise their marketing profiles channelled through on a limited budget by embracing Feet dragging its call centre, the possibilities offered by online James Simpson, director at digital advertising. marketing specialists FWD Historically, the industry has been slow Digital, agrees with Gray: compared to other sectors in capitalising “Nobody can argue that this on the power of digital marketing; the industry has been slow to adopt sector has been over-reliant on local the latest marketing techniques, press advertising and direct marketing particularly when you compare through phone books. Just as these two insurers and brokers to fast-moving media channels have been decimated consumer goods. by the growth of the online platform, “It’s no secret many are reticent. the effectiveness of advertising on these Quite often it’s because there is no paper dinosaurs in isolation is being one dedicated to look after digital called into question. and managers are too busy to become The reluctance of some brokers to immersed in a discipline that requires integrate online communications into deep knowledge and specialised skills.” their marketing activities is identified by Simpson also argues there is a market one of the biggest market players as a perception that digital can be expensive, challenge that needs to be tackled. though it can offer advertisers a Donna Gray, digital marketing relatively cheap and cost-effective direct manager at Aviva, says that the rate of new media adoption “varies from broker to broker, though we are doing all we can “It’s no secret that many are reticent to support them in developing this form ...managers are too busy to become of communication”. In Gray’s view, the reluctance of immersed in a discipline that requires brokers to embrace the opportunities presented by the internet are the result deep knowledge and specialist skills.” of “a lack of understanding around the James Simpson, FWD Digital

22 www.broking.co.uk which is linked to heavy-artillery brand Dos and don’ts of digital marketing campaigns run on real world poster sites. DO – Use a broad combination of branded, generic and long-tail search terms in your campaign. Wilson says: “We focus heavily on Consumers prefer not to have to hunt long and hard for a brand’s new offering. If they can’t find what traditional markets because people they are looking for in a couple of clicks then it is most likely that they will give up. As such, your firm’s need to recognise the name through search engine optimisation is critical in shaping how consumers navigate the web. roadside posters and tube ads. This way, DO – Create landing pages with relevant information and intuitive, easy-to-navigate roadmaps. Visitors when they go online they recognise the to your site are more likely to stay on your site if they can find the information they want quickly and efficiently. A good user experience should be carried through to the point at which a consumer decides InsureandGo brand.” to purchase a product. He adds: “The problem with activity DO – Keep a close eye on the blogosphere, where word-of-mouth activity is constant and relentless. such as email bulletins is that, while it’s Whether you like it or not, consumers will talk about your brand online. Some of the commentary will so cheap to run a campaign involving be positive but a poor customer experience can result in a well of negative discussions that stay on the 10,000 mail outs, you don’t know what internet. Use blog search engines such as Technorati and Google blog search to keep on top of what you’re going to get back.” people are saying about your brand. Wilson says that the Southend-based DON’T – Hide additional costs or have hidden extras. This will have a negative impact on the firm regularly and consistently re- perception of your brand and could result in the consumer terminating their purchase or severing evaluates its marketing activity and that the relationship. Providing an honest user experience will breed positive sentiment and encourage a a “decent”, though unspecified, amount smooth transaction. is spent on pay-per-click, e-mail and DON’T – Have different information on comparison sites from your own branded site. Incorrect or banner ads across websites. conflicting information could result in the customer feeling misled and confused, so delivering a negative user experience. Keep your affiliates up to date with the latest offers and price information. Price drop He adds that media-buying firms are content in a hyper-fast environment that “from an online perspective, we believe seeing price deflation (defined in terms operates on a 24-7 basis. this market gets a better return on of the amount brands pay the media Elliott says: “The challenge for us is its marketing spend by developing buyer if the airtime or column inches to ask how best to integrate new media websites to accommodate e-mail leveraged have generated worthwhile marketing activities into the overall marketing programmes.” Millard says publicity and therefore good value) plan. We need to establish our marketing this on the basis that they can build in traditional media at the expense of objectives: it would be foolish to push simple mechanisms to capture personal digital, which is comparatively buoyant. into online activity and social media information and build valuable databases. “Outdoor advertising has come down activity without a plan. Big or small, brokers and insurers a lot in price so we’re taking advantage “Online activity can rapidly escalate of all sizes agree that database-driven of this and doing more branding work. out of control and to your detriment. e-mail shots help companies to leverage Digital is a good marketing tool but it’s The internet is a wild frontier – you and retain existing customers whether not the be-all and end-all,” Wilson says. need to control your messages, sites and they are partners or customers. Aviva’s Peter Elliott, head of discussion groups because you can easily Gray highlights: “E-mail marketing is a marketing at Bluefin, find yourself hijacked.” cost-effective method to communicate to suggests there is a He continues: “There’s no point brokers on a frequent basis. This method in tweeting for the sake of tweeting. enables us to tailor our approach so that Social media, for example, shouldn’t be we are able to differentiate between our entered into lightly; only with a clear brokers’ needs rather than swamp them plan, careful thought, due diligence and with unnecessary information.” planning.” Yet, despite reluctance among some Social media brokers to think of internet marketing The really exciting, boundary-pushing and advertising as anything other than marketing work is being done on tiny an afterthought or add-on, there are budgets in the nascent world of social psychological brokers and insurers of all sizes that media. Super-sized retail brands such as barrier at play use it as one of the main planks of their Starbucks, Burger King and Dell, as well that is holding some marketing strategies. as US president Barack Obama, have brokers back from Mike Millard, director of all blazed a trail for engaging with the engaging with internet Wedothewords – a company that public using social media. Meanwhile, marketing and advertising. specialises in helping independent the financial world has yet to come to That inertia is focused on the insurance brokers build and maintain terms with the likes of Facebook, Twitter sometimes anarchic nature of the relationships with their customers and LinkedIn. internet, a realm in which users can – is a great believer in co-ordinated Perth-based Business Insure is freely express opinions and repurpose e-mail campaigns. He argues that attempting to buck this foot-dragging

April 2010 23 Focus Digital marketing

trend, though, by harnessing the power Top 12 spenders on advertising in UK insurance of micro-blogging site Twitter (www. Year-on- twitter.com/businessinsure) to impart Internet Total cross-media year internet useful, informative advice to its followers Advertiser expenditure spend spending change on the site. (£) (£) (%) This subtle method of soft selling is winning the company plaudits for its Aviva* 3,900,000 2.01 52,500,000 innovative approach, as Simpson says: “The company is using Twitter well by www.confused.com 323,705 348.56 24,000,000 adding posts that do not have a sales www.gocompare.com 459,953 140.04 23,000,000 angle, provide niche subject matter and link to good sources of information www.comparethemarket.com 0 0 12,900,000 [elsewhere] on the internet.” Zurich 154,424 0 11,200,000 The company’s Twitter activity is Hiscox* 488,722 19.63 3,700,000 supported by a blog, which seeks to unpick industry jargon, explain Axa 47,186 –20.19 3,300,000 complicated policies and bust common Legal & General 1,400,000 –34.46 2,400,000 myths with short, punchy posts. As well Allianz 94,082 89.46 2,100,000 as carving out a reputation for being helpful and open, the Twitter account RSA 14,738 0 1,700,000 has attracted almost 800 followers: all AIG 31,000 –99.74 690,730 potential customers. Business Insure’s InsureandGo 25,112 737.9 629,337 Twitter followers represent a sizeable Source: The Nielsen Company (01 January 2009 – 31 December 2009) and growing database, which has *These brands show total spend, not just insurance brand spend been acquired through a free account that requires a minimal amount of elusive, time-poor target audience. The He comments: “Consumers are maintenance and interaction compared contact list is alerted through e-mail used to highly sophisticated websites to other, more time-intensive forms of and social media sites such as LinkedIn such as www.amazon.co.uk, so they communication. and Scribd. The same list is also used increasingly expect compelling content, As well as becoming involved in to target specific interests and issues and functionality experiences elsewhere. conversations with customers on Twitter, through online communities and forums Brokers in particular need to make brands such as Hiscox also run targeted hosted on these websites. a greater investment in their online advertising campaigns on other popular Bluefin’s Elliott says that the group presences. This is about having a great social networks such as LinkedIn, which is looking to emulate the example set site and then driving traffic by using can target potential customers based on by companies such as Business Insure SEO and banner adverts in addition to a series of specific and narrow search and QBE. The bulk of the company’s above-the-line advertising.” factors. advertising appears in regional press, Bluefin as a brand is just one year Hiscox is currently running a LinkedIn exhibitions and trade fairs. Bluefin is old, so the company is still focused campaign featuring multiple-purpose also a great believer in direct marketing on shaping its brand identity, yet it is units (a display box online which can be but is looking to shift the balance, with a already generating a corporate-focused used for adverts or interactive content) larger emphasis on direct e-mail activity social media policy: the company and subtle links at the top of members’ and social media. encourages employees to be active on profiles. Simpson says: “LinkedIn enables “You have to get the balance right these platforms as part of their new insurers and brokers to drill right down between paper and electronic activity. business drive and client relationship to their target audience by utilising There’s no risk with direct marketing handling. the wealth of information that the site if it’s handled professionally, though Elliott says: “We’re not active in social captures through members’ accounts.” the electronic alternative can be a media yet but we would certainly expect very powerful tool. Our spending on employees, especially at account director Stratified approach traditional marketing far outweighs level, to be on Facebook and LinkedIn: Business Insure and QBE are also digital but I think that will change,” they must think about their personal experimenting with new ideas in online Elliott says. online presences. media, targeting risk management. In Be warned, though. Before branching “We’re looking very closely at social this sector, risk managers in insured into social media, Elliott says that the media and what sort of presence we corporates are targeted with thought- first priority should be getting the basics should have; I haven’t seen any insurers leadership pieces (www.qbeeurope. of website design and search engine or brokers use blogs, videos or podcasts com/rm), a creative way to engage an optimisation right. successfully. It’s perhaps a reflection of

24 www.broking.co.uk “I’m not convinced by social media, insofar as interactions.” He continues: “The capital cost [ranges it actually works because the messaging is so from] negligible to zero but digital emotional as opposed to a call to action. It’s going marketing has a large element of staff commitment, both in the traditional to cost you more money...” marketing and communications function and across the business.” Perry Wilson, InsureandGo Sausmarez’s view is shared by Gray, who believes that “digital marketing our industry and tied in with the nature advantages of using social media are of and social media will become more of the product; it’s not high on the list of benefit to businesses of all sizes: “From our important and recognised ways to reach topics of conversation for most people.” research, it looks as though some smaller customers.” Yet, despite encouraging Philip de Sausmarez, head of new media brokers are using social media networks signs, not everyone is convinced. at QBE, says the group is just at the “very as a kind of customer relationship InsureandGo’s Wilson adopts a more beginning of exploiting social networks” management service. It’s a great idea suspicious outlook: “I’m not convinced but says that it already has accounts with because there is no need for IT technicians by social media, insofar as it actually many video-sharing websites, social book- or expensive consultants [to be involved].” works because the messaging is so marking tools and social networks such emotional as opposed to a call to action. as YouTube, LinkedIn, Twitter, Facebook, Future It’s going to cost you more money Slideshare, Delicious and Vimeo. He expects uptake to grow exponentially because it’s not quite there yet as a fully He says: “For us, it is too early to tell as more brokers dip their toes in the formed marketing product.” for certain but some of our technical risk water: “Any company that wishes to It is only a few early adopters in the management documents have been read manage its reputation needs to look at profession that are making headway by as many as 3,000 people on Scribd this subject seriously. Digital marketing with digital marketing at the moment. in a few months. These readers are, by is the key tool. In terms of cost, social Until industry online activity becomes definition, the kind of people we want media marketing should be another widespread, broking will lag behind name recognition among and it has cost part of the communications strategy, other UK business sectors that are us nothing but some staff time.” given that much of the investment is already reaping the rewards of these Sausmarez is confident that the repurposing existing materials and client largely untapped assets. www.comparethemeerkat.com and social media Car insurance and social media are not the and the similar-sounding website addresses were Facebook and nearly 36,000 followers tweeting most obvious bedfellows. Most people use easily confused. Comparethemarket.com needed at him on Twitter. social networks to reconnect with friends and to find a way to cut through the clutter and stand Cynics may question the value of this in terms keep up with the latest news from their social out from the crowd. of direct sales and label Aleksandr gimmicky, circles. Competitive car insurance quotes are In an attempt to inject some memorable yet there is no doubting that the activity has the last thing on someone’s mind as they log on personality into the brand, the website’s produced enormous positive sentiment and to Facebook. advertising agency, London-based VCCP, came up goodwill towards the brand for a relatively small Unlike traditional above-the-line forms of with www.comparethemeerkat.com, an altogether amount of expenditure. communication such as television and radio, different type of comparison site owned by Although spending on social media advertising social media cannot be bought in the traditional Aleksandr the Meerkat. is not measured in the UK, activity is cheap: it sense. Advertisers need to earn their place. A fully integrated campaign was launched with can cost tens of thousands of pounds if the work Instead of the hard sell, brands have to be fun television at its heart, yet the narrative really took is carried out by an outside agency or almost and engaging, or at least useful if they are not off in social media, where Aleksandr’s fans have nothing if handled in-house by the marketing cool, to earn a place on a Facebook member’s been able to keep up with what he’s getting up to department or communications teams. In short, list of fan pages or be among those they follow across Twitter, Facebook and YouTube. social media is highly effective if well executed on Twitter. The campaign has been a phenomenal and planned, which means that the entry barrier is Comparethemarket.com – the price success, transforming the business of www. low enough for a broker or insurer of any size to comparison site – changed all that. The company comparethemarket.com. In the first nine weeks begin experimenting in this nascent medium. faced a tough challenge: to encourage people of the campaign, quotes increased 80% and As Amelia Torode, head of strategy and to search them out by name. With only half the cost-per acquisition was reduced by 73%. innovation at VCCP, says: “Social media is not advertising spend of key competitors www. Spontaneous awareness almost tripled from 20% a replacement for a great creative idea or for a gocompare.com and www.confused.com, it to 59%. television commercial. Television adverts’ mass required something outstanding to achieve a Equally impressive is the brand’s social awareness-raising acts as a catalyst for social disproportionate level of awareness. media success given the nature of the media activity, though it’s on the likes of Twitter, It was no easy task. Few consumers business. At the time of writing, Aleksandr has YouTube and Facebook that, in my opinion, the differentiated between price comparison sites more than 703,000 fans interacting with him on real fun and conversations are occurring.”

April 2010 25 Biba preview Claims debate Surviving the perfect storm? Philip Bird comments on the progress of the personal motor market in light of the recession ahead of a debate at Biba 2010

WHEN ANNOUNCING our 2009 results, around 1.2 to 1.6 – an increase of around and we will shortly begin to see whether our chief executive officer François-Xavier 30% – and this has happened quickly over the much vaunted Ministry of Justice Boisseau talked about the private motor the last 18 to 24 months. It is bizarre to review will improve processes, speed up PI market being on the critical list and it is think that the average motorist is now settlements and help to reduce costs. really not difficult to see why. Although carrying 30% more passengers, so it is research suggests that claims have been therefore straightforward to determine the Jackson report on a downward path since peaking at 4.4 likely cause. In the longer term, there is also some million in 2006, then beginning to stabilise Credit hire costs also remain the bane industry support for the review by Lord during 2009, the headline numbers mask of insurers’ lives but the recent rate of Justice Jackson and, while ultimately we a number of important factors that are increase has possibly begun to ease might have to sign up to an agreement for costing the market dear. off. While these costs continue to be a higher awards, its recommendations to We are seeing continued growth in the significant challenge and form a high curb claims referrals are welcome. value of claims as injury inflation bites proportion of average claim expenses, Meanwhile, the tools available to help hard. We are also tackling rising incidence they are not contributing as significantly balance the books are probably rather of fraud, presumably driven by the impact and we now have greater control over our less sophisticated but nevertheless just as of the financial crisis and the recession. own damage losses, total loss claims and necessary. An unacceptable level of claims Yet the major concern must surround windscreen breakages. inflation is primarily responsible for the the increasing success of claims farming The industry seems to be getting to motor sector making an underwriting loss activities as these organisations continue to grips with the fraud epidemic that was in each of the years since 1995 and it must drive larger volumes of potential customers mentioned earlier. The last two years be tackled. The situation is unsustainable, into the waiting arms of a grateful legal have seen our claims teams detect an particularly as the recession has depleted profession. This has produced a spike in increasing volume of fraudulent claims company reserves. the number of smaller injury claims being both by number and value, although Not surprisingly, premium rates are received by insurers with whiplash often it is still difficult to establish if we are beginning to harden quickly and rise being the claimant’s weapon of choice. becoming more successful at detection steeply. For the immediate future, this In fact, according to Mintel, the average or if the numbers are continuing to grow particular patient remains on the critical personal injury claim grew by a staggering as a result of recessionary pressures. We list, even though we are finally beginning to £1,500 over the four years to 2008. believe that the recession is causing a good stem the bleeding. proportion of fraudulent notifications and Between the lines we are also now seeing a higher volume of Philip Bird, claims director, Groupama Insurances Although the number of claims might opportunistic fraud in motor lines. be levelling out as the industry improves Recent poor weather, aggressive claims Claims Wars! its handling practices, the number farming, the credit hire challenge, rising At this year’s Biba conference in London’s Excel, a seminar entitled ‘Claims wars! – the motor of claimants for each reported claim injury inflation and the impact of fraud session’ will take place on May 19 at 16:10 in is definitely on the up as our bucolic have all combined to create perfect storm stream 1. Motoring journalist Quentin Wilson will friends plough onwards to find ever- conditions for the motor market and we chair a panel featuring Patrick Smith, chairman more innovative ways to identify new can expect the road to recovery to be hard at the British Insurance Brokers’ Association opportunities to raise revenues. At and slow. Counter-fraud activities and and Swinton, Philip Bird, director of claims at Groupama, we have seen the number of investment in specialist training will make Groupama and David Sandhu, chief executive at

Photograph: Katrin Blumenschein average claimants for each case rise from a difference in reducing claims leakage Ai Claims Solutions.

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ob Trott was brought to Oak in Andrew Tjaardstra meets Bob Trott, managing November 2004 by late founder of Bthe business Tony Lumsden-Cook. director of high net worth specialist underwriting After being in control of the southern region of Chubb, Trott was attracted to Oak, based agency Oak Underwriting, which is celebrating its in the Cotswolds market town of Moreton- tenth anniversary this year and trading stronger in-Marsh, because he felt there was room for it to portray a brand image, and wanted than ever to have a larger role. Trott had to try and persuade brokers that Oak was a real himself appeared in the May 2000 edition the UK in 60 years, it achieved 22% growth player in high net worth, and this is in part of Professional Broking with an oak tree in household, with motor achieving even evidenced in his ethos that his staff should sapling launching Oak despite being just more. have an urgency and desire to do business. two years off retirement age (PB,May In part, Oak has beneﬁted from Hiscox’s Commenting on his former boss, 2000, p.24-25). Sadly, Lumsden-Cook died decision to go direct in the mid net worth Trott says: “He was gracious in not at the end of last year of throat cancer, a area. The move has not only left some prevaricating, and said from day one I true character in the industry. brokers questioning Hiscox’s future could act upon his position of MD, and in Over the last years Oak has evolved a intentions in high net worth, but has also February 2005, Tony said he was ‘going great deal but its core raison-d’être is still meant that sometimes the insurer has upstairs’. Part of my job was to elevate Oak very much providing high quality service been competing with its brokers for the into a grander arena.” to brokers and clients. same clients. Lumsden-Cook became a member of As other insurers have changed their Trott also believes another unnamed the Somerville board, which owns Oak, approach to strategies around how best to insurer’s service has become poor in the and was involved with the MGA until the reach clients, Oak has been consistent, and HNW area. In addition, Trott feels he has end of 2005, before severing ties with the philosophy appears to be paying off. been able to capitalise more than others Somerville, based in historic Buzzards Last year, despite the worst recession in on years of hard work courting brokers. Hall in Sudbury, Suffolk, in 2008. Undoubtedly, it is going to be a tough time Lumsden-Cook had originally set-up the “Part of my job was when choosing who should be invited to broker-only insurer with the backing of the Oak’s tenth anniversary evening to be held likes of Beazley Syndicate 623 and Tradex to elevate Oak to a in central London in April. in 2000, after leaving Cox. grander arena.” Oak will control around £30m of gross Trott says Lumsden-Cook’s wife came written premium altogether by the end of up with the name, and Lumsden-Cook Bob Trott, Oak Underwriting this year, this ﬁgure having trebled in the

28 www.broking.co.uk Photographs of Gary Humphreys by Fiona Compton The PB Interview Bob Trott

March 2010 29 The PB Interview Bob Trott “We are looking for brokers that respect affluent clients and want to past five years and represents well over 10,000 policies. The ambition is to become give them client contact and develop third in the HNW market place over the an understanding of their needs.” next three years, bringing in over £40m of premium, a long way from Lumsden- Bob Trott, Oak Underwriting Cook’s original first year target of £2m. However, it has not all been one-way traffic, as the 2007 floods had a dramatic impact on the industry’s loss ratios with Oak and high net worth accounts being no exception. The floods, hopefully no more than a 100 year event, have led to a rethink of which postcodes in the country are best to cover, and to therefore focus on the more profitable areas. He is also keen to drop clients who might be using his company’s insurance as a “maintenance product”, and is particularly focusing on trying to limit escape of water claims, such as from burst pipes, something he admits is very difficult to underwrite.

Protecting wealth The recession has had an impact with some clients looking to increase excesses and reduce sums insured, but he maintains the “more affluent person is determined to protect their wealth” and it has on the whole been “a particular niche where the economic gloom hasn’t shown Oak through the decade its face – certainly not at Oak”. 2009 Oak launches its new web quote facility and statement of fact for new policies. Oak is in an enviable position where 2008 Third satellite office opens in Bristol. it does not have to raise rates as it is Revamped website is launched. producing an underwriting profit. Change of carrier from Beazley to Brit. The managing general agent, which has 2007 Family motor fleet product is launched in association with Chaucer. its household and travel underwritten by Second satellite office opens in London. Brit and motor by Chaucer, has products 2006 First satellite office opens in Manchester. with strong Defaqto ratings, but also 2005 Appraisal service launched. covers risks such as guns, fine art and even Logo and literature are modernised to reflect the group’s rebranding. identity theft. “By definition you have to Moves to new head office in Chipping Norton. th have policy wordings as good as your well 10,000 policy written. 2004 Bob Trott joins. known competitors,” he says. 2003 The Somerville Group purchases Oak in November. It has joined the motor market since 2001 1,000th policy written. September 2007, and now Trott describes 2000 Opens for business on 1 April and moves to new offices in Moreton-in-Marsh. it as a “portfolio insurer”. Although its Oak Underwriting is founded on 1 January, based in Stow-on-the-Wold. preference is to cover all aspects of a high net worth individual’s possessions and requirements, it has a flexible approach. such as subsidence, non-standard homes clients who do not fit the narrow ‘tick box’ Trott says he is mindful of balancing the and overseas holiday homes, and also has underwriting criteria that the market is insurance requirements with the levels of a mid net worth product. Plum is now awash with.” service Oak can offer, however, with £1,250 looking to double new business and grow The broker base is large, partly because a rough guide to the minimum level of its agency base in 2010, with director Trott does not go around setting them premium he would want Oak to accept. David Whitaker saying: “There is naturally targets. A broker can place as little or as Oak works closely with sister group a lot of interest from brokers in being much business they like with them. He Plum which handles non-standard risks able to provide cover for existing and new says: “There are a huge variety of brokers

30 www.broking.co.uk There are around 750 brokers with Oak fundamentally believes that aggregators agencies, and Trott is serious when he are not giving customers what they want, says there are potentially 500 more in the and there is a trust problem. pipeline. He adds: “We are looking for the brokers that respect affluent clients Time and want to give them client contact and He is keen to get quotes back to brokers to develop an understanding of their within the same day. However, is this needs. Over the years there has been an necessarily a good thing when dealing with apprehension of cross-selling HNW to such high value goods? He says: “Each commercial products as they didn’t want quote is underwritten and we set our there to be a hiccup on the personal side. stall out to do this, although some of the However, this has totally changed and larger cases may take longer. Our method we are looking to pay claims and satisfy of receiving information via our website clients – not run away. Brokers who place speeds the process. The brokers who are managing directors’ insurances with Oak more successful in high net worth will visit can sleep at night.” clients, have expertise to make them feel Although the vast majority of Oak’s relaxed in their presence. If you spent a lot 42 staff are based in the Cotswolds, the of time creating your material wealth why company has created a regional structure wouldn’t you want to spend the time with with underwriters in Bristol, Manchester, a broker, as you do with an accountant or Leeds and Scotland arguing in the latter solicitor, to protect it?” local knowledge is particularly crucial. Oak was independent until it was Trott is seeing growth in the West Country, acquired by the Somerville Group in 2003, the north and Scotland – including which is majority owned by its founder recently a £22,000 premium case. Andrew Cross. Somerville sold its broking He is more likely to recruit from brokers division, Somerville Insurance Services, to rather than rival insurers, and is keen Lark (now 60% owned by Groupama) in to empower his underwriters with the December 2006. Therefore Oak has become authority to make decisions. “I enjoy an even more important part of the group seeing the relationship grow between the as a whole, and there are no plans to sell it. we deal with. Some are brokers with a broker and underwriter,” says Trott. “Our Trott clearly enjoys the cut and thrust 30% book of high net worth, while others underwriters haven’t been born with a of talking to brokers, and has no intention are one-man bands with a 100% book. silver spoon in their mouths, but they of hanging up his boots and anticipates Others will have 10 to 20 clients, and you understand the culture of high net worth.” being at Oak for the foreseeable future. will be surprised by the quality of risk Trott is also keen for brokers to start Somerville will be hoping that his forecast from the smaller broker.” identifying mid net worth clients who for similar growth this year, as achieved in He is looking for brokers willing to may need an upgrade in policy as their 2009, will be fulfilled. support the firm’s ethos, which prides sums insured grow and there is a facility • For more on high net worth, see Market itself on providing a quality service. through Plum to provide cover. He Watch, p.32-33

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April 2010 31 Market Watch High net worth

Emmanuel Kenning investigates what impact the recession has had on the high net worth market and what the future may hold

ON 3 FEBRUARY a man-size bronze sculpture sold for £65m at Sotheby’s in London. In just eight minutes the price for Alberto Giacometti’s L’Homme Qui Marche I (Walking Man I) rose from £12m to reach the highest amount ever paid for a piece of art. At that price it is fair to say the purchaser is more ultra high net worth than high net worth. However, the purchase reflects the findings of an earlier report on the HNW sector by Capgemini and Merrill Lynch Global Wealth Management. Their World Wealth Report 2009, showed the percentage Kings of the of passion investments made on art by HNW individuals rose from 20% in 2006 to in behaviours which may be recessionary 25% in 2008. driven. They are looking more closely at HNW ‘passion’ investments (in 2008) Hugh Champion, managing director of the premium but are not sacrificing the wholesale and direct at privately owned quality of cover. More clients are taking 30% Source: World Wealth Lloyd’s broker RFIB, notes: “For an investor bigger excesses to achieve a better price.” Report 2009, Capgemini and Merrill Lynch Global in art the high end is better. The Masters He feels these changes have led to more 25% have been impervious to the recession. research online but stresses there has been Wealth Management For people with a lot of money wondering no discernable switch to online purchasing. 20% where to invest it they get something they The head of the Allianz owned dedicated like to look at and it’s unique.” wholesale HNW broker adds: “Because of Despite the fact that the HNW sector the complexity of HNW it is not practical 15% has not been immune to the recession to deal online.” World Wealth Report 2009 – the showed 10% the number of HNW individuals in the Loyalty UK fell from 491,000 in 2007 to 362,000 in Champion advises such stability should be 5% 2008 – Champion believes that emotional reflected in developing a steady relationship attachment has been a powerful force with the insurer to match the one most with HNW individuals holding onto their HNW clients have with their broker. 0% paintings throughout. He says: “When He clarifies: “There is a lot of loyalty in Luxury collectibles (luxury automobiles, yachts, jets) people collect and buy for love they get this market. You have got a track record rid of those last. They also pass them on and it obviously gives you credibility with Art generation to generation.” the underwriter when you have a claim

With assets retained, and in some cases you’ll get more leeway.” Jewellery, gems, and watches increased, who is serving the insurance However Champion stresses this is not needs of this sector? Barry O’Neill, the same as complacency. The best brokers Other collectibles (wine, antiques, coins, memorabilia) managing director of Home & Legacy says: know their market and keep up to date

“The broker is still king in high net worth.” with the changing demands of insurers as Sports investments (teams, sailing, race horses) However, O’Neill believes there have well as clients. He adds: “There is more been changes over the past 12-18 months. awareness for protection such as alarms Miscellaneous (memberships, guns, musical instruments) He says: “There have been some changes connected to [police] stations and more

32 www.broking.co.uk Part of the reason for the ongoing longevity of broker dominance in “The broker remains the sector is undoubtedly due to the king. The last 18-24 complexity of clients’ needs but the human relationship element should not be months has amplified the overlooked. Nick Grazier, vice president, private client group at Chartis, explains: “It benefits of why – their is about understanding the quirks of the ability to help navigate HNW individual. They are all unique and there is no one-size fits all approach. Most the complexity of the clients see the broker as the insurer – it is a relationship that is fundamental.” market and provide Chartis believes many brokers in the support and guidance in commercial sector are keen to ring-fence their clients but may not feel they have the event of a loss.” all the expertise necessary. To help deliver Austyn Tusler, Hiscox the relationship it provides access to a range of additional functions. Grazier While not providing a HNW offering to a says: “We have a panel of networks that crucial commercial client could be seen as are not part of Chartis but are part of our foolhardy, Howard Lickens, chief executive business model. For example people who officer at Clear Insurance Management, ship fine art or restore it. We can find all says it is not just a defensive play, the sector this [for brokers] and the client doesn’t can also be part of a new business drive: “It have to worry.” is a stable, loyal business and can be a way castle Steve Smith, managing director at to get in and pick up commercial business.” Croydon-based SmithGreenfield, a David Sweeney, household and concentration from insurers on making specialist niche broker dealing with HNW commercial director, Sterling Insurance, sure you have such an alarm.” and mid net worth individuals, thinks also feels it is one more brokers should Defining high net worth is an imprecise that brokers often fall into the trap of consider offering. He argues: “The average art rather than a science. Capgemini’s expounding the quality of these insurance premium on a high net worth policy is akin and Merrill Lynch’s report defines HNW add-ons without blowing their own to an SME and retention rates are better.” individuals as “those having investable trumpet enough. He says: “Brokers need Along with the recession this year the assets of $1m or more, excluding primary to let people know what they do. They insurer has noted more impact from the residence, collectibles, consumables and communicate how good their product is weather. He says: “There have been more consumer durables”. Another report, but not necessarily how good their own wet perils such as floods and burst pipes Hiscox’s Wealth Review 2009, identified the service is.” in second homes due to cold weather and top 10% of people in the UK by income – 2.5 snow before Christmas.” million households – as wealthy with an Wholesale function So given the resilient nature of the average annual income of almost £93,000. Just as Chartis looks to support brokers sector, if not the pipes then where next for Austyn Tusler, head of art and private who have limited experience in the field so the sector? Sweeney says: “The market has client, Hiscox, backs up the idea that SmithGreenfield offers a wholesale func- hardened slightly but it has only gone up whatever the precise definition, the HNW tion. Smith says: “For a broker who can- a bit. This year will see the same sort of spectrum continues to be served best by not generate enough premium income and increases.” He cites a celebrated industry brokers. He says: “The broker absolutely doesn’t have the expertise using a wholesale axiom: “In commercial it goes up like a lift remains king. The last 18-24 months has function can protect commercial business and down like an escalator. In HNW it goes amplified the benefits of why they are – and stop it going to another broker.” up like an escalator.” their ability to help navigate the complexity One example of the expertise that Smith With pressure on brokers to keep of the market and provide support and cites has been a noticeable increase in clients happy, and opportunities almost as guidance in the event of a loss.” people investing in jewellery or precious precious as the property clients want to The insurer has similarly found there has metals during the recession. He continues: insure, tapping into “a hidden goldmine” as been an increasing scrutiny on premiums “Where clients might have invested in Sweeney describes could be time well spent during the recession. Tusler explains: property they now may be investing in for brokers in 2010. “Consumers are demanding value now gold. It brings a different balance for a • For an interview with Bob Trott, more than ever. Pension returns may have portfolio and different challenges. For managing director of specialist high been effected or they may work in property. instance insurers may exclude jewellery if net worth underwriting agency Oak, People are taking on a £1,000 policy excess.” it goes abroad.” see pages 28-31.

April 2010 33 Professionalism Turning professional

Edward Murray asks if the seemingly endless debate on professionalism has ﬁnally reached a conclusion

WAS THERE ever a time in the insurance what the industry stands for and the standards and how we can improve sector when practitioners did not bemoan professionalism it represents. them by more education, knowledge and the fact it was viewed as an industry This new standard comes under the training and out of that produce what will rather than a profession and that it grandly emblazoned banner of The be better outcomes for our customers.” always seemed to play second fiddle to its Aldermanbury Declaration, but just what banking, accounting and does this declaration seek, how will it be The big push legal peers? received and why will it make a difference But why the big push now? It seems that The debate on professionalism has to how both customers and potential the insurance market, which normally been kicked around the marketplace recruits view the world of insurance? pays out when people run into problems, for many years without much action. Will it be enough to reinvent the market has decided to take advantage of the However, it seems that there is now a and like a chrysalis transform it from an issues in the financial sector, particularly concerted effort to garner support around industry into a profession? the banking sector, and use them to give a professional standard and lay out exactly The Aldermanbury Declaration was succour to its own efforts to improve published at the both its substance and its image. beginning of March and Opportuinistic? Definitely. Effective? has given the insurance We’ll have to wait and see. ! "#" $#% & market until 2013 to sign The Insurance Profession Task Force '(" (%) !*!#! up to its edicts. It was the has looked to work with representatives result of six months of from every corner of the market and in ( ! (+ ,,, work by The Insurance producing a consistent set of standards Profession Task Force, in which customers and potential which was sponsored by recruits can take confidence, hopes it can the Chartered Insurance at last make a difference. ! " Institute and led by its The CII and its Insurance Profession president Barry Smith. Task Force make no bones about the The declaration timing behind the initiative and Smith seeks to create a sound comments: “It was the collective desire framework of measures to further understand how we could (see p.35) that will enable prove the standards on offer to the - .. - ! the market to prove its customer and improve the perception of " $ & ' . - willingness to embrace what we do. The catalyst was what has . . / . -0 , professionalism, deliver happened in the banking sector.” consistent and improved The important word here is . !"#$%&&'(!&)*+,-. 0 results for its customers ‘perception’. Time and again the 10 2 /00 /12 2343 and attract and retain the insurance sector has suffered at the hands very best people from the of a public that fails to recognise what it labour market. does as characteristically professional. Commenting on the Whether this is because of the $#" &3# % !' 56%"'&% #!5 declaration, Smith said: “I everyday nature of some insurances, #&)!& ,,, !"# think what we are looking the lack of penetration that Chartered - 3 !, &- 4566789, for here is clear direction status has so far managed to gain in the on how we can improve insurance sector or poor experiences

34 www.broking.co.uk The basic tenets of The Aldermanbury Declaration that customers have had, Commitment to excellence Broking standards remains to be seen. All firms should operate policies towards: customer Insurance intermediaries should ensure that at However, there is little service, ethical conduct, qualifications and continuing least half their operational management team is doubt that professionalism professional development that demonstrate their qualified to Advanced Diploma in Insurance (ACII). and insurance are not two commitment to the highest levels of standards and Other relevant technical qualifications should be words that tend to trip off the behaviour. These policies should be easily accessible to encouraged. average person’s tongue in quick their customers and staff. succession and the public has lost Underwriting standards trust in what insurance brokers, in Training and development Insurers should ensure that at least half the particular, have to offer. Employers should ensure that people in the people in the senior underwriting management This was made patently clear by profession participate in a formalised training and team are qualified to Advanced Diploma in YouGov research carried out last development programme. Such programmes should: Insurance (ACII), and all authorised underwriting year for the CII. It found that only • Lead, wherever relevant, to a professional agencies should ensure their lead underwriters 12% of those asked trusted their qualification are qualified to ACII level. Other relevant technical insurance broker, rising to 22% for • Underpin career development and increased qualifications should be encouraged. general insurance providers. professional standards Although investment banks and • Support the development of knowledge, skills and Claims standards investment providers fared worse expertise Insurers should ensure that at least half the people in than insurance brokers, it was the senior claims management team are qualified to galling for the insurance sector Professionalism within insurers Advanced Diploma in Insurance (ACII). Other relevant to see 40% of people still trusted Insurers should meet the criteria for corporate technical qualifications should be encouraged. their own bank. Not because it Chartered insurer status within relevant business is wrong for them to do so, but divisions, as a demonstration of their commitment Management standards because it has proved so hard for to excellence Insurers should ensure those people in key insurers and brokers to generate leadership and management positions, for example that same level of trust for Professionalism within brokers broker relationship managers and risk managers, are themselves. Insurance intermediaries should meet the criteria members of an appropriate professional body and A lack of trust is not the only for Chartered Insurance Broker status, as a hold relevant professional qualifications. factor preventing people from demonstration of their commitment to excellence, associating professionalism applying these principles to the core disciplines. with insurance. Eric Galbraith, chief executive of the British Insurance Brokers’ Association, says: “In the last 20 job and that The or 30 years there has Amanda Blanc, Aldermanbury Declaration should not be been an increase in commoditisation deputy chief group executive officer at seen as an overhaul of something that and automation and the idea of Towergate, comments: “We work in a doesn’t work. Instead she says: “I do not professionalism has faded.” very interesting and professional sector think that we fall down in general and When people understand and but we don’t seem to get that across and retention rates, for example, tend to regularly research and buy the likes of always have trouble attracting people.” be very good. However we are poor at travel, household and motor policies But if Aldermanbury gets businesses communicating our good results.” for themselves, the perception of those signed up to its measures, drives If Aldermanbury is to become anything that sell them is not as high as it is for qualifications, pushes membership of more than a marketing campaign around the practitioners in other financial and professional bodies and makes chartered professionalism and actually improve professional sectors. status a necessity for top tier operators, the standards within insurance and the However, by focusing on the then it should also help exemplify the perception of it from without, then firms standards, qualifications and ethics of insurance market as a place ambitious across the market need to sign up to it those that conduct insurance business, and motivated individuals can go to enjoy and pin their colours to its mast. Aldermanbury aims not just to improve a fulfilled, well-regarded and mapped out •PBand sister title Post have this year the perception at the moment, but to career. launched the Investing in the Profession continue to build it up as the years Blanc is keen to point out that the campaign. To see a video debate on The unfold by attracting better and more broking sector and the rest of the Aldermanbury Declaration,gotowww. capable people into the sector. insurance market, already does a good broking.co.uk/1596075.

April 2010 35 On the Move

BROKERS AND BRIT INSURANCE has appointed tasks is to streamline Garwyn’s INTERMEDIARIES Vivek Banga to the position of rapidly expanding claims MARSH has appointed UK distribution leader. He begins management. immediately and will report to Candice Sammeroff to Simon Cooter, director, UK drive the firm’s business JUBILEE has announced two market management and regional development in the UK operations. Banga has more senior appointments. From 1 commercial property and real than a decade of experience in May 2010, Clive Buesnel will estate sector. Ms Sammeroff UK insurance and joins Brit from join as group chief executive joins from MacRoberts NIG, where he was latterly head officer. Buesnel was one of the Solicitors in Glasgow, where of business development. He founding team of Xchanging, she was senior associate, previously spent two years at was managing director for the acting as both legal adviser Churchill Insurance as head of insurance sector operations and business development offshore business processing and (XIS and XCS), and in generator for the firm’s real has also worked for Ernst & Young 2006 formed Xchanging estate team. and Eagle Star. Broking Services (XBS). The appointment is subject to INSURERS AND in the new role of managing Steve Williams joins from Axa Lloyd’s and FSA approval. UNDERWRITERS director, retail. The new and has been appointed area Meanwhile, current CEO ACE UK has hired Victoria role reflects the increasing underwriting manager for Andreas Loucaides will become Keeble as environmental significance of Fortis UK’s the North West and Scotland. group development director. risk underwriter. In her new retail businesses to its multi- He will also cover NIG’s His remit will be to drive role, Keeble will underwrite distribution strategy and interests in Northern Ireland. business development across business within the London an ambition to grow these Cath Timberlake joins from the Jubilee Group, focusing environmental team. She brings businesses further. The role will Hiscox where she was North on new lines of business and a wealth of experience, having focus on leading Fortis UK’s of England area manager. Ms capital raising. underwritten environmental retail strategy. Timberlake will be underwriting business at AIG and Certa for manager for the North East, LOREGA has hired Jonathan seven years. Before moving KGM MOTOR INSURANCE and will be based in Leeds. Mainwaring as broker business into insurance she worked in has hired David Martin as fleet Martin Kerrison joins NIG from development manager for the environmental consultancy class underwriter. Martin joins Travelers where he was regional Southern region. Mainwaring with Laing and WS Atkins. from NIG where he was senior underwriting manager. joins from AXA where he motor underwriter. He will was marketing proposition CHUBB has created two oversee the performance and NMU has expanded its Belfast manager. As part of a six- managerial posts in its London development of KGM’s fleet office with the hire of Roy strong Lorega development office, to provide brokers with account in terms of profitability Cunningham, who boasts team, he will provide regional one senior contact in their and business volumes. 40 years’ marine insurance brokers with the support commercial dealings with the experience. His arrival required to build their books insurer. Andy Francis becomes MARKEL INTERNATIONAL completes NMU’s latest round of personal and commercial head of the commercial has taken on Daniel McCarthy of appointments, which also loss recovery business. insurance division. Francis as underwriter in its hull and saw Martin Jay and Rita Barker joined Chubb in 1995 and has war team, which is part of its join the London office and QUESTGATES has appointed held a number of roles within marine and energy division. Tracey Chalmers join the home John Freeman as counter fraud the organisation including McCarthy has more than ten counties underwriting team in director. Freeman joins from Birmingham branch manager years’ experience in marine Letchworth. Capita where he was director and UK and Ireland marketing insurance, most recently as of fraud for Teceris Claims manager. Ralf Rebetge has been marine hull underwriter at MISCELLANEOUS Services and formerly the appointed head of Chubb’s Allianz. His appointment GARWYN has appointed partner responsible for fraud in specialty insurance division, follows that of Tom Davies, Tracy Kenny in the new role of Teceris Corporate and complex which incorporates executive who joined the marine and policies and procedures officer. adjusting. He will be joined by protection and financial lines. energy division as a liability She will be based at Garwyn’s four other members of his team He was previously underwriting underwriter earlier this year. claims management unit in from Capita: Kay Hodgson manager of the financial Birmingham. Kenny joins ACFS (investigator); Dave institutions division. NIG has made three senior Garwyn following five years Baxter ACFS (investigator); underwriting appointments at DigiLog as business and Verity Astins (investigator), FORTIS has appointed Andy to spearhead a “major push” training manager. According to and Andrew Whittaker, head of Watson to its executive team for regional SME business. the company, one of her first specialist fraud training.

36 www.broking.co.uk Statistics Provided by

Top 20 UK commercial motor insurers

Gross Underwriting Combined Loss Rank Rank premiums AMB# Company name Rating Group name result* ratio ratio 2008 2007 written (£000s) (%) (%) (£000s) 1 1 86257 RSA A RSA 543,741 22,030 96.0 65.3 2 2 85250 Aviva UK A Aviva 443,231 50,953 77.8 35.5 3 3 87708 Zurich (UK Branch) A(1) Zurich 336,390 34,702 89.8 62.9 4 4 86373 Allianz A+ Allianz Societas Europaea 239,748 28,859 88.3 64.2 The National Farmers Union 5 5 85012 NFU Mutual NR–5 200,691 2,582 99.9 77.8 Mutual Insurance Society 6 6 85203 Axa NR–5 Axa 180,783 –29,368 117.4 83.5 7 7 86126 QBE A QBE 178,915 32,055 N/A N/A 8 8 87479 NIG NR–5 The Royal Bank of Scotland Group 116,604 –19,087 116.9 81.8 9 9 84154 Highway NR–5 Liverpool Victoria Friendly Society 73,626 –15,948 122.7 91.0 10 10 85047 Aviva International A Aviva 64,414 –2,035 93.6 42.4 11 N/A 87416 Chartis[A] NR–5 AIG 62,496 –25,398 846.0 214.1 12 12 86954 Brit A Brit Insurance Holdings 62,432 549 103.1 77.9 13 13 84116 Tradex NR–5 N/A 61,819 2,019 88.7 60.5 14 15 87434 Groupama NR–5 Groupama 51,644 –3,956 108.1 79.2 15 16 87872 HSBC NR–5 HSBC 41,951 –6,559 116.4 93.6 16 14 78186 CIS NR–5 Co-operative Group 33,974 –1,952 108.4 71.6 17 19 85363 Travelers A The Travelers Companies 30,509 –859 101.9 70.9 Groupe des Mutuelles du Mans 18 18 86488 MMA NR–5 24,784 –3,921 119.4 90.3 Assurances 19 21 87542 Provident NR–5 FIM Holdings 16,467 –1,657 111.5 85.2 20 17 87672 Cardrow[B] NR–3 Charles Taylor Consulting 15,229 –1,777 N/A 87.4

(1)The listed AM Best rating applies to Zurich Insurance Company, Switzerland (AMB# 85096). [A]GWP figure includes £17,927,000 in respect of consideration of the transfer of business from New Hampshire Insurance Company (UK Branch) (AMB# 87709) (“NH”); underwriting and ratios also include amounts in respect of consideration of the transfer. 2007 ranking is based on Chartis Insurance UK Limited’s (AIG UK between 03/12/2007and 1/12/2009 and Landmark Insurance before 03/12/2007) business only. NH was ranked 11 in 2007 for commercial motor insurance business lines. [B]Firm reported a negative NWP figure for commercial motor insurance business, distorting the combined ratio figure. *Underwriting result excludes investment income. Note: Some ratio figures are (N/A) not available because all of these companies’ commercial motor insurance business is accounted for on an underwriting year basis, for which earned premiums is not disclosed on the FSA return. Figures in above table are based on FSA returns of financial year 2008 for commercial motor insurance business lines (reporting category 220). Ratings as of 5 March, 2010.

Rating modifiers Modifier Descriptor Definition Not-rated categories u Under review Best’s Rating opinion of the company For companies not assigned a Best’s Rating the five categories are: is under review NR-1: Insufficient data NR-2: Insufficient size or operating experience s Syndicate Assigned to syndicates operating at Lloyd’s NR-3: Rating procedure inapplicable NR-4: Company request NR-5: Not formally followed

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This Insurance is a trading name of Thistle Insurance Services Limited. Thistle Insurance Services Limited is authorised and regulated by the Financial Services Authority, ﬁrm reference number 310419. Registered Office: 6 Crutched Friars, London, EC3N 2PH. Registered in England, company number 00338645. This Insurance is a registered Trade Mark Policy Market

How can a young offender ON GUARD SINCE 1989 avoid becoming an Retailers older offender? UK Facilities is able to place a wide range including:

� Clothing � Fast Food & Takeaway � Fish & Chip Shops � General Stores � Hairdressers (incl treatment treatment risk) risk) Join leaders from the insurance industry � Newsagents tohelpyoungpeopleovercomebarriers � Offices and get their lives working. � Off Licences � Restaurants/Cafes

For a quotation contact us NOW: Tel:For a quotation 01204 contact 394080 us NOW: fTel:01204 370232 01204e [email protected] 394080 f princes-trust.org.uk/insurance UK Underwriting f 01204 370232 e [email protected] UKf Underwriting UK FACILITIES PLC, BARNETT HOUSE, VIKING STREET, BOLTON BL3 2RR The Prince’s Trust is a registered charity, number 1079675, incorporated by Royal Charter. UK FACILITIES LTD, BARNETT HOUSE, VIKING STREET, BOLTON BL3 2RR

PROMOTIONAL ADVERTISING GIFTS

RIALTO CROSS CLIP P FOUNTAIN CROSS CENTURY II EMBLEMS PEN/BALLPEN MEDALIST CROSS CLASSIC 10 SET various shapes R Striking 2-tone metal CARAT ROLLED Your logo, your from only in up to 6 combination of GOLD BALLPEN £27.95 each colours add message on a Wide I polished chrome & OR PENCIL £2.75 each Range of Products 23 Karat gold plate. Individually (min. 25 pens) Boxed individually or boxed with Cross for Conferences, N plus (first time) as sets with Cross lifetime £95 tooling Meetings, lifetime guarantee. guarantee. Price T charge. Price includes laser includes laser Golf Days, E engraving your engraving your Fund Raising, message on the cap. message on the INDIVIDUALLY BOXED cap in area & Events, D PARKER 88 RIALTO BALLPEN Ballpen/pencil PARKER JOTTER BALLPENS from £25.95 ea. 35x5mm. Ladies Nights, Matt black or blue. Price includes ballpen or pencil Barrel in blue, black, white or red Laser Engraving on barrel with Rollball with stainless steel top. Price Award Ceremonies, from £32.95 each. from £38 each. W individual names possible if includes 1 colour print in area Give-Aways, & required. Supplied in luxury box. Fountain pen 35x22mm - from £2.30 each. I Price from £19.00 each. from £40.95 ea. 2nd colour print add 7p each. Souvenirs T NO HIDDEN EXTRAS! 2nd colour print FREE DESIGN SERVICE! H add 7p each Delivery of printed items usually within 14/21 days Just add ONE £35 charge Y and our Catalogue/Online prices fully include O To print on box and pens add £2 ea. designing printing/ U SUPPLIED IN LUXURY processing your message WATERMAN BLUE BOX as specified on your chosen R items & delivery UK for any BALMAIN REIMS WRITING SET SHEAFFER NO-NONSENSE Ballpen PARKER VECTOR ROLLBALL WATERMAN HEMISPHERE Ballpen number of different products Rollerball and ballpen set in Ballpen in white, navy blue, Blue, black, white, red or green Black ballpen with gold trim. ordered at the same time M Balmain Paris gift box. Price for black or yellow with black rubber barrels with chrome trim. Price Price includes laser engraving on - TALK TO US ABOUT laser engraving on both pens or grip. Supplied in suedette sleeve. includes print around the barrel the pen. Individual names if YOUR SPECIAL E on the silver label of box lid Price includes print in area in 1 colour in area 50x25mm required at no extra cost. REQUIREMENTS - - from £10.95 each. 40x30mm - from £1.50 each. - from £2.80 each. Price from £19.95 each. S Our catalogue of VIEW & BUY 1000s of other Gift Ideas S ONLINE will be rushed to you A EMC ADVERTISING GIFTS Tel: 0845 345 1064 on request. G Derwent House • 1064 High Road • Whetstone • London N20 0YY E Fax: 0845 345 1065 E-Mail: [email protected] Web: www.emcadgifts.co.uk RIALTO 11.07

April 2010 39 Policy Market

Alarm Companies Electrical Contractors Fire Extinguishing Gifts

Asbestos Removal Fleet To advertise call COURIER AND SUB–BROKING SPECIALISTS Exclusive Asbestos • VAN LIABILITY 020 7316 • GOODS IN TRANSIT Removers Scheme • EUROPEAN COVER AND BREAKDOWN • Exclusive Scheme • Financial Loss to 9632 • Quick Turnaround £500k inc. ALL RISKS CATERED FOR � • A Rated Security • £10m EL, PL and Motor � • Wide Wording Pollution Limits Fleet – Inc Haulage � All Commercial Haulage Insurance Speak to THE Asbestos Experts � Road Risks and Motor Trade � Buildings and Contents Inc Distressed T:01277 844 373 Events F:01277 844 399 Our Van Scheme; W: direct-ins.co.uk H asS eenB etterC hoice,

Authorised and Regulated by the Financial Services Authority and we now use When it comes to TRIDENT INSURANCE SERVICES LTD.

insuring events, you Visit us at www.trident-insurance.co.uk Immediate cover and fast response To advertise call can’t afford to do this… All sub-broking provided for Immediate facilities available 020 7316 9632 Event Assured is designed Call for details and a TOBA to be the best on the Frank Pace market, and is now the best on the web too. 0800 038 9000 Email: frank [email protected] Cleaning Contractors If you want HAULAGE INSURANCE the best cover, with quality MOTOR FLEET underwriters Ally Templeton and you want to DL 020 7816 1251 work with a team [email protected] of experienced Don’t forget insurance PROPERTY & LIABILITY professionals, the choice is clear: Richard Stiling to mention DL 020 7816 1269 [email protected] ‘Policy TRANSIT & CARGO Neil Woolner Market’ DL 020 7816 1220 Your event, our risk [email protected] ¥ +44(0)1376 330624 when For full information visit home: our website at www.rldavison.co.uk www.event-assured.com replying R.L.Davison & Co. Ltd., event insurance: Bury House, 31 Bury Street, www.event-insurance-online.com London, EC3A 5AH exhibitor insurance: to adverts Authorised and regulated by the Financial Services Authority. www.exhibitor-insurance-online.com

40 www.broking.co.uk Policy Market

Household Liablity Self Drive Hire Student Let

LIABILITY Civil Engineers, Groundworkers, Waste & Recycling Trades, Hauliers, High Risk Contractors, Employers Liability, Public & Products Liability, Excess Public & Products Liability, Excess Employers Liability Richard Stiling DL 020 7816 1269 [email protected] For full information visit our website at www.rldavison.co.uk R.L.Davison & Co. Ltd., Bury House, 31 Bury Street, London, EC3A 5AH Authorised and regulated by the Financial Services Authority. Don’t forget to Let Property Motor Fleet To advertise call mention 020 7316 9632 ‘Policy Market’ when replying Unoccupied Property to adverts

Security MOTOR FLEET HGVs, Vans, Cars, Buses & Coaches, Private Hire, Self-Drive Hire Ally Templeton DL 020 7816 1251 [email protected] Graeme Flynn DL 020 7816 1267 [email protected] UNOCCUPIED PROPERTY Schemes and facilities for Unoccupied Property, Commercial & Residential, Leisure and Entertainment Risks, For full information visit our website at www.rldavison.co.uk Nightclubs & Takeaways R.L.Davison & Co. Ltd., Martin Parker Bury House, 31 Bury Street, DL 020 7816 1311 To advertise London, EC3A 5AH [email protected] Authorised and regulated by the Financial Services Authority. Richard Stiling call DL 020 7816 1269 020 7316 [email protected]

For full information visit our website at 9632 To advertise call www.rldavison.co.uk R.L.Davison & Co. Ltd., 020 7316 9632 Bury House, 31 Bury Street, London, EC3A 5AH Authorised and regulated by the Financial Services Authority.

April 2010 41 Competition and Puzzle

WIN RACE DAY TICKETS 3 69 7 THIS MONTH’S www.broking.co.uk prize is no less than two tickets to our very own Insurance Race Day, held in conjunction with sister titles 4 7 86 Insurance Age, Post and Reinsurance at Kempton Park on 20 April. To be in with a chance of winning this fantastic prize, go to www.broking. 6 43 co.uk to answer this simple question: What role in government did Gordon Brown have before becoming Prime Minister? Entries must reach us no later 9 4 5 than 14 April 2010. Full terms and conditions are available at www.bro- 4 2 9 king.co.uk/competition. Last month’s winner of £50 of John Lewis vouchers is Jeremy 8 9 4 Andrew of SIB Group, who knew

that, following the Chancellor of 928 websudoku.com by Puzzle the Exchequer’s announcement, IPT on broker fees has been collect- 67 3 9 able since 9 December 2009. (Ed: the Budget has, of course, changed matters since.) 5 17 4

PB Week Highlights from our blog NEXT MONTH PB brings you the results of the first Sentiment Survey of On 24 March, Mark Cliff, managing On 3 March, Ian Ritchie, director at RWA 2010 sponsored by Groupama, director at Fortis, wrote: ‘Over the last Group, wrote: ‘A couple of unrelated items featuring your views on which few months, I have had the opportunity to of news caught my eye this week that gave me insurers have the best serv- meet brokers at the UK Broker Summit and concern for the future. ice and claims offerings. at Fortis’ broker forums around the UK. First was the observation from a specialist Meanwhile, our Market Watch Several themes emerged. There is a view mobile phone insurer that the incidence of focuses on developments that 2010 will be tougher new loss or damage claims jumps by about in the marine cargo sector than last year as clients 50% during the month that a new version of and off-site training comes start to feel the pinch in a the Apple iPhone is launched. Apparently, under the microscope in our difficult economy and face many phone owners can only go for so long Focus. Remember to keep uncertainty in the run up realising that they are a generation behind up to date with all the latest to the general election. That the latest must-have specification before they news at www.broking.co.uk doesn’t mean brokers don’t resort to extreme measures. No doubt and follow us on Twitter at see opportunities: far from they see it as a victimless crime, if they www.twitter.com/probroking. it. They see the need to see it as a crime at all. focus on organic growth Second was news that over 5,000 and getting closer to their GCSE entrants were caught cheating 8 7 2 9 4 6 1 3 5 customers. Sales and last year by accessing information from 9 1 4 8 3 5 2 7 6 marketing are high on the either a mobile phone or MP3 player agenda. taken into the exam room. Add to those the 3 5 6 2 1 7 9 8 4 They are also very disappointed at the ones that didn’t get caught and you probably 7 4 1 6 8 3 5 2 9 level of service provided by the market. It have a five-figure number. 6 3 5 7 9 2 8 4 1 is difficult for them to be lean and mean Two reflections on society today, which to when they are constantly chasing up quotes me indicate that it will be a long time before 2 9 8 1 5 4 7 6 3 or returning inaccurate documentation. In the anti-fraud departments of insurance 4 8 7 5 6 9 3 1 2 addition there is a feeling that technical companies are out of a job.’ 1 6 9 3 2 8 4 5 7 capability is being diluted in branch • Sign up to PB Week at signup.incisivemedia.com/insurance 5 2 3 4 7 1 6 9 8

networks.’ SOLUTION – MARCH 2010

42 www.broking.co.uk insuranceraceday.com

The ﬁnal furlong

The Insurance Race Day 2010 Kempton Park, 20 April

This unique hospitality event promises once We have designed all the packages to Companies who have already secured a again to bring together the entire insurance ensure they provide excellent value and so table at this year’s Race Day include: industry for a fantastic day of networking at that you can benefit from the opportunity LV=, Groupama, BGL Group, Axa the accessible Kempton Park racecourse. for social and business networking not only Assistance, IGI, Munters, New Line with your clients and colleagues, but with Insurance, Aspray, McKeowns, Fortis, There are only a few tables left, so make other insurance industry professionals. ISO, Arag, Avertis, Markerstudy, ROK, sure you don’t fall at the final hurdle and Anthony Alexandra... and more! book yours now. A variety of packages How to book are available to meet every need – from To find out more about how your sponsorship to private boxes and course- company could get involved with view tables. The Insurance Race Day 2010, contact Oliver Nevill on 020 7316 9405 or [email protected] To book contact Oliver Nevill on Hosted by: 020 7316 9405 or oliver.nevill@ incisivemedia.com