Biba unveils conference speakers lineup

The British Insurance Brokers' Association has announced its conference speakers for this year's event in London's ExCeL centre on 19 and 20 May. Joe Plumeri, chairman and chief executive at Willis and BBC world affairs editor John Simpson will speak on Wednesday 19 May. On Thursday morning, veteran broadcaster Jonathan Dimbleby will chair a debate on the challenges of the next decade with: Robert Brown, chief executive at Aon; Peter Cullum, executive chairman of the Towergate Partnership; Phillip Hodson, chief executive at Oval; Sandy Scott, director general at the Chartered Insurance Institute and Richard Ward, chief executive at Lloyd's. Actress and activist Joanna Lumley will close the conference.

Regulator's clampdown

Meanwhile, the Financial Services Authority has written to brokers regarding client money after it found poor management oversight and control in this area, including a lack of establishment of trust status for segregated accounts, unclear arrangements for segregating and diversifying clients' money and incomplete records, accounts and reconciliations (see this month's Management Clinic, p.17 and Editor's Comment, p.14).

The regulator's move comes after it banned Stephen Allen, a former director of failed broker Fabien Risk Services, from holding any management role in the UK financial services industry or role that requires FSA approval. In 2007, co-directors Shane Garvey and Lee Goddard had already been banned after the withdrawal of client funds in order to keep the firm going. Allen, who had no knowledge of this, accepted that he had neglected his duties and had failed as a director. FRS went into liquidation in the fourth quarter of 2005 (PB, October 2007, p.10).

The FSA has also fined Leslie Lugsden and John Hargreaves, partners at Derbyshire-based Sett Valley Insurance Services, £10,500 each for not recording sufficient information about customers' personal and financial circumstances and failing to communicate to clients in a clear, fair and not misleading way.

On the insurer side, Markerstudy has completed the acquisition of fellow Gibraltar-based insurer Zenith, with the aim of reducing its struggling motor book from £140m to £100m of premium. There are likely to be job losses at Zenith's Haywards Heath office, though no details have yet been finalised. The move follows QBE and HSBC Insurance both pulling out of personal motor lines last year and Zurich stating that it wants to increase rates by 20% on top of recent price rises. Research commissioned by white-labeling and branded concierge specialist WhiteConcierge and carried out by Professor Merlin Stone at Oxford Brookes University has estimated that, over the past two years, 15m people have switched their motor insurer, making it the worst affected sector for losing customers.

Fraud

According to the National Fraud Authority, insurance fraud in the general insurance market cost the UK economy £2.08bn in 2008. Fraud costs the financial services sector £3.8bn a year out of a total of £9.3bn in the private sector.

So far, as a result of flooding in Cumbria in December 2009, the Association of British Insurers has seen 36,000 storm and damage claims at a total cost of £206m, with over 60% of the money resulting from business damage.

Bluefin has signed WNS Assistance to handle all claims management for its personal lines motor business.

• This year's Insurance Raceday, a fantastic networking opportunity, will be held on 20 April at Kempton Park. For sponsorship and table opportunities, including the chance to see your logo displayed in national newspapers, call Oli Henry on 020 7316 9071 or e-mail oli.henry@incisivemedia.com.