FEATURES Brokers – when it comes to risk management do they practice what they preach?
Writer: Martin Friel Contact Details: mjfriel1999@yahoo.com
Deadline: 13 August, 2024 As a sector insurance is constantly banging the drum for risk management. Either as a service add-on or a means to make sure a business is adequately insured, brokers are very much part of this drive. But whilst broker might strive to raise the profile of risk management and mitigation, this article intends to discover what intermediaries are doing themselves to protect and ready their own businesses for all eventualities; especially ones that could be either reputationally or financial damaging – or both. For instance, in response to the Covid-19 epidemic the FCA reviewed a sample of brokers in relation to wind-down planning arrangements and formal wind-down plans. It found most firms had both in place. However, some of these had not been updated for a while and it observed “mixed results” in terms of firms consistently demonstrating good practices. https://www.fca.org.uk/publications/multi-firm-reviews/assessing-liquidity-orderly-wind-down-good-poor-practices-general-insurance-brokers Have brokers heeded this advice? Have things improved? How much of a priority are these? Beyond this the article will examine a number of other areas such as whether brokers have key person insurance, and management continuity plans? It will also look at what brokers are doing in important areas such as continuity planning to supply chain management; data security to revising contracts, to make sure they are as future-proofed as possible. Finally, the piece will throw a spotlight on what plans brokers have for communication with staff/clients/insurers/regulator in the event of an incident? And seek input on what other areas should be a focus for brokers in making sure their firm is as ready as can be for any scenario. Claims – are brokers confident in their insurer/MGA partners - and TPAs - to deliver at the moment of truth?
Writer: Sian Barton Contact details: sianelizabarton@gmail.com
Deadline: 6 September, 2024 The recent Managing General Agents’ Association conference brought claims under the microscope in a number of sessions. Firstly Lisa Sturley, head of department of market interventions, insurance at the Financial Conduct Authority, warned insurance firms about outsourcing claims to third parties. She noted that when outsourcing was done badly, the regulator had seen long delays and unhappy customers and firms losing sight of the end customer experience, adding: “This often results in inadequate oversight and firms abdicating responsibility.” https://www.insuranceage.co.uk/insight/7955160/fca-head-warns-firms-about-abdicating-responsibility-by-outsourcing-claims Meanwhile, Phil Barton of Partners& stated an MGA “has to own its claims proposition”; and Mark McIlquam, president of UK retail at Acrisure added: “If the claims experience of someone using an MGA is inferior to using an insurer then there is going to be a problem. It’s important that MGAs are massively on the ball from a management perspective.” https://www.insuranceage.co.uk/insight/7955163/mga-has-to-own-its-claims-proposition-partners-boss Taking these views on board, this Insurance Age feature seeks to get an insight as to the current state-of-play in terms of how brokers see the claims service being offered by insurers and MGAs. And whether there is much difference between the two in terms of overall service. It will ask what does good look like, and how information and communication is being handled by everyone involved in managing and remediating a claim. The article will assess how much input brokers have in the selection of TPAs and whether the FCA’s “abdicating responsibility” comment holds true. It will also investigate whether brokers have seen changes in terms of the reporting of the first notification of loss (FNOL). MGA Direct Commercial for one recently noted that contrary to best practice for FNOL procedures, only a quarter (28%) of commercial motor brokers are asking policyholders to report and make a claim from the roadside. https://www.insuranceage.co.uk/commercial/7955109/brokers-lacking-when-it-comes-to-commercial-motor-fnol-best-practice Are insurers and MGAs offering brokers greater guidance on FNOL, and how does this differ depending on who they are working for / by class of business? High Net Worth – is it really high noon for MGAs in upmarket personal property?
Writer: Ed Murray Contact details: edwardmurray@blueyonder.co.uk
Deadline: 13 September, 2024 In July Munich Re put GrovesJohnWestrup, its high-net-worth managing general agent, into run-off. The business had only entered the private client market in 2020. https://www.insuranceage.co.uk/insight/7955128/munich-re-mga-put-into-run-off GrovesJohnWestrup is just the latest in a long line of market shifts through run-off or acquisition in recent years. In May 2023 Allianz put mid and high net worth specialist Home & Legacy into run-off, affecting about 50 people; whilst Aviva acquired Azur Underwriting’s high net worth personal lines business in the UK and Ireland in August 2022. https://www.insuranceage.co.uk/insight/7952935/allianz-to-close-home-legacy https://www.insuranceage.co.uk/insight/7950261/aviva-strikes-azur-hnw-deal-after-exclusive-talks There has also been further movement with the likes of Ardonagh Advisory completing a deal to acquire high-net-worth MGA Renovation Underwriting. https://www.insuranceage.co.uk/broker/7953614/ardonagh-completes-deal-for-hnw-broker-and-mgahe On the flip slide brokers have also seen BSpoke recruiting former Home & Legacy expert Adrian Ewington as managing director of Bspoke Private Clients, to ramp up that business; but overall the needle seems to be pointing to diminishing returns for MGAs in the HNW and mid-net worth sector. https://www.insuranceage.co.uk/insight/7955116/bspoke-ramps-up-in-hnw-with-multiple-ex-hl-appointments With these developments in mind Insurance Age seeks to analyse if the MGA model is seen as the best way to deliver products and services to HNW customers; does the tide need turning and what could be done to generate a renaissance wave for MGAs in this space? It will seek views from brokers on what they want from a good HNW insurance provider in 2024 and whether they are receiving what they require; if not, where do the biggest gaps lie? Finally, the article will ask brokers about the overall HNW opportunity; and whether it is still the preserve of specialists – or if it is moving more into the mainstream space; and whether this is another reason that it is becoming a greater focus for insurers – including composites – and less appealing to MGAs. | 