ILC ARTICLE

ILC Breakfast News – Wednesday 8 December 2021

7th December 2021

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A business argument for going green 

The argument that going green is a more expensive way of operating is not as unequivocal as it once was.   

Apart from rising financial penalties for failing to meet ever-stricter environmental targets and the obvious cost benefits of reducing energy usage, it is also true that real savings, both economic and to the environment, can be made by taking inefficiencies out of the process by working differently.  

Angela Kelly, Client Operational Director, Sedgwick, speaking at the I Love Claims Home & Property Claims Conference held at the CBS Arena, Coventry on 11 November, honed-in on just one area where improvements can be made – water leakage. 

Automation the key to resilient claims management

Greater automation is the only way insurers will be able to manage a surge in claims brought about by a catastrophic event, but to make best use of this technology mindsets will need to change. 

Brian Ford, Management Consultant and Software Reseller at SLVRCLD, believes technology advances have left the sector behind, which means the opportunity is there for forward-thinking organisations to steal a march on their rivals. 

Speaking during a panel debate at the I Love Claims Home & Property Claims Conference, held at the CBS Arena, Coventry on 11 November, he said, “It’s easy to get automation into a business, but it’s not happening as fast as it could because the mindset and culture is not there. 

Belgravia Group leaders set up new firm 

A new insurance and financial advisory firm has been set up by leaders of the Belgravia Group. J3 Advisory has been established by James Mole, Jack Bristow and Johnny Leadsom. It will bring together the property insurance and debt advisory markets with the intention of making it quicker and more effective for developers to access both.  

J3 will focus on new-build warranty insurance, conversion warranties, commercial latent defects, social housing warranties, retrospective warranties, receivership warranties and self-build warranties. Financially, it will advise on bridging loans, development finance, buy-to-let portfolio lending and care and nursing home finance. 

Howden continues UK focus

International insurance broker Howden has acquired Ross Insurance Group as part of its strategy of developing its UK expertise. Ross Insurance Group focuses on financial and construction risks, and manages the global programmes for clients across a range of sectors such as financial services, technology, construction, property management and vehicle leasing.  

The announcement follows Howden’s acquisition of Aston Lark, a full-service broker in the UK, in October.  

AssuredPartners announces latest acquisition 

Fast-growing UK and US insurance agency AssuredPartners has acquired PSP Group (PSP). The deal will complete early next year, subject to regulatory approval, with PSP’s 80-strong team remaining under the leadership of CEO Bob Parkins.  

PSP provides commercial and private insurance in the south west of England and reports annual revenues of $6.5m. The deal follows recent AssuredPartners acquisitions in Birmingham, Chester and Scotland.

Motor

BGL and Covea partner on direct proposition 

BGL Insurance and Covéa have formed an exclusive long-term ‘joint venture’ to bring a new direct insurance proposition to market next year. 

The collaboration will bring together the very best skills from both sides, specifically Covéa’s underwriting and claims management expertise, alongside BGL’s pricing, customer service, digital distribution and tech capabilities.  The agreement builds upon Covéa and BGL’s existing strong relationship, with the insurer acting as a key panel member for several of BGL’s motor insurance brands.

e2e names new chief 

Jim Loughran has been named as Neil Joslin’s successor at the head of e2e Total Loss Vehicle Management (e2e). Neil is stepping down after four years with the business. 

Jim brings 30 years’ experience to e2e, with a strong track record in effecting business transformation and servicing customers within technology-led organisations and blue chip brands including BT, Disney, ING Bank, QBE Insurance and Rolls Royce Aerospace.

Allianz announces Uber partnership 

Allianz Partners will provide coverage to Uber and Uber Eats drivers and couriers in 23 European countries.  

Effective from 1 January, the support includes compensation payment for loss of income, paid sick leave for up to 15 days, maternity and paternity payments, and inconvenience compensations for court attendance.  

Ageas backs insurtech start-up

Ageas has agreed to join GoShorty’s panel of motor insurers. GoShorty is a specialist short-term vehicle insurance provider covering both cars and vans, and also offers specialist products for learner drivers.  

Ageas, one of the UK’s largest car insurers with an award-winning green parts repair programme, joins a panel already including LV=, Mulsanne, KGM, and First Underwriting. 

Minster Law enhances presence in bike sector

Minster Law has signed a six-year deal to provide personal injury claims services to specialist bike broker BeMoto. Founded in 2015, BeMoto now services over 30,000 motorbike policies. 

Minster Law says the deal will enhance its position in the motorbike market following the recent announcement of a five-year deal extension with fellow bike broker Principal Insurance.

Study highlights EV savings 

A new study by Geotab and Enterprise Fleet Management has identified the substantial savings to fleet who go electric.  

The study of 91,252 vehicles found that 13% could feasibly be replaced by electric vehicles, with potential savings of $33m and 194,000 tons of CO2 emissions over four years. It also found that up to 45% could be electrified when more EV pickups are manufactured, with potential four-year savings of $167m and 1.3 million tons of emissions. 

ClaimsTech 

Optics look good for Volvo

Volvo Cars’ commitment to vehicle safety has continued with investment through its Cars Tech Fund in the optical and imaging technology start-up Spectralics. Spectralics creates state-of-the-art imaging and optical infrastructure spanning materials, hardware and software. 

One of its innovations is the multi-layered thin combiner (MLTC), a new type of film that is applicable to see-through surfaces. The technology could overlay a car’s windshield or windows, creating a heads-up display of virtual objects superimposed over the real-world environment.  

Kettle investment to benefit reinsurance sector

US-based reinsurance start-up Kettle has secured $25m of Series A funding. Kettle uses deep learning to offer better protection to people from the growing risks associated with climate change. The investment was led by Acrew Capital, with participation from Homebrew, True Ventures, Anthemis, Valor, DCVC, and LowerCarbon Capital. 

The reinsurance industry has seen a 68% fall in returns on equity following a three-fold increase in environmental catastrophes over the past 15 years.

RSA cloud migration continues at pace

RSA Insurance is accelerating its digital transformation with a new collaboration with Kyndryl, one of the world’s largest IT infrastructure services providers. Kyndryl will support RSA’s large-scale data migration to the cloud. The project, which has so far seen 85,000 gigabytes of information moved to the cloud, is intended to make RSA more resilient and efficient and has already resulted in 30% improvement in automated data processing.

Zywave completes ClarionDoor acquisition

Insurtech Zywave has acquired US-based ClarionDoor to enhance its digital solutions. Zywave is an industry-leader in configure, price, quote technology for insurers and brokers, and will leverage ClarionDoor’s digital distribution solution for carriers and MGAs to consolidate its position in the market.

LV and Hiscox make Fintech Pledge

LV= General Insurance and Hiscox have become the latest insurers to commit to the Fintech Pledge. Set up by Tech Nation and endorsed by HM Treasury, the Pledge allows organisations to demonstrate their commitment to transparent digital innovation for the benefit of customers while also promoting partnerships between traditional insurers and tech start-ups. 

To date more than 20 leading companies have signed up, including Admiral, Aviva, Brit, eSure, Lloyd’s, Munich Re Digital Partners and Swiss Re. 

Market News

Davies acquires Sionic

Davies has acquired Sionic, the international consulting and technology firm serving the insurance, banking, and wider highly regulated markets. 

Headquartered in London, UK, Sionic specialises in technology transformation and digitalisation, international regulatory compliance, and risk management 

Sionic will join Davies’ Consulting & Technology practice headed by CEO Mark Grocott.  Sionic CEO, Craig Sher, will continue to lead the day-to-day operations and will join Davies’ Executive Leadership Team, with the wider team continuing in their roles within Davies. 

MS Amlin creates sustainability role 

Lloyd’s global specialty (re)insurer MS Amlin Underwriting has emphasised its focus on sustainability by appointing Amir Sethu to the newly-created role of Head of Sustainability and ESG. Reporting to Martyn Rodden, Director of Strategy and Transformation, he will be responsible for bringing together a range of ongoing and new sustainability initiatives under the ESG framework.

Businesses giving climate change the cold shoulder

Aviva’s second Risk Insights Report found that companies are still not taking climate change seriously enough. The report asked 1,251 UK business leaders what key risks they faced and found that climate change, including natural catastrophes and extreme weather, ranked just 14^th. 

Staggeringly, 40% admitted to knowing nothing or next to nothing about environmental, social and governance (ESG) issues. Just over a third (34%) claimed to be well informed, while less than one in 10 (eight per cent) cited the environment as their number one priority.  

Rising Star Interview

This week we catch up with James Krogh, Senior Claims Handler, Davies Group who tells us about his role; how he got to where he is today; and what he feels are the challenges that lie ahead for the sector.