Five executives tells Insurance Times what’s on their wish list
With 2013 almost over and Christmas day looming, we take a look at what the industry’s executives are looking to find tucked away under the Christmas tree and hanging in their stockings.
Apart from a shiny new copy of Insurance Times to get them in the festive mood our execs also have a few business presents on their list for Santa. Let’s just hope they avoided being on that naughty list …
Peter Blanc, Oval Group chief executive
What’s your top priority for the first six months of 2014?
Keeping clients happy is always top of the list and hopefully, flowing on from that, we’ll exceed our budgets as well. I would like to see us make further inroads into our e-trading push at the bottom end of the premium scale and continue to win some great high profile business at the top end. Our middle market business is our bread and butter and I have every confidence that our team will continue to grow that too. I don’t want much, do I?
If you could ask David Cameron to do one thing for UK GI next year, what would it be?
The Ministry of Justice reforms, in my view, just haven’t gone far enough to reverse the UK’s horrendous claims culture. Our clients just cannot understand how the most minor of rear-end shunts can result in thousands of pounds worth of personal injury claims when quite clearly no one has been injured. I would like to see a move to a minimum speed threshold below which it is deemed impossible to claim for personal injury. The Germans make it work, so why can’t we?
Do you think rates will harden or soften next year?
I am going to go for harden, but tempered by the knowledge that dual pricing is with us and is likely to remain with us.
What do you think will be the biggest emerging risk in 2014?
The Law Commission changes on disclosure will require a big shake-up in underwriting and broking that, to my mind, is long overdue. It’s an opportunity for professional insurers and brokers to really stand out from the crowd and we should be embracing that opportunity.
How much consolidation do you think we’ll see next year?
The drivers for consolidation remain significant. In the insurer space there is too much capacity and brokers are still looking at the demographic time bomb that Peter Cullum spotted earlier than everyone else. Lots more consolidation would be my prediction!
If you could ask for one business present from Santa what would it be?
I’d rather like insurance broking to be viewed as the fantastic career opportunity that it is – but my perfect Christmas present would be a guarantee that no claims are repudiated on Oval business in 2014!
David Stevens, Admiral group chief operating officer
What’s your top priority for the first six months of 2014?
As the dust settles after the April LASPO reforms, one of our top priorities will be to try and get some clarity on how they’ve changed things. Are claims cost down a little or a lot? Forever or only for a while?
If you could ask David Cameron to do one thing for UK GI next year, what would it be?
An end to insurance premium tax on car insurance – one of the most regressive taxes there is, hitting younger drivers in rougher parts of the country hardest.
Do you think rates will harden or soften next year?
One of the two. Or possibly both – one after the other.
What do you think will be the biggest emerging risk in 2014?
The biggest risk in 2014 is political – the risk that the imminence of an election and the heightened sensitivity to the cost of regular bills leads to ill-considered interventions and manifesto commitments. The fact that the industry has so evidently delivered on the price cuts that the government hoped for from its recent reforms should hopefully help us argue our corner.
How much consolidation do you think we’ll see next year?
Having never been a buyer or seller of companies, I wouldn’t say we’re close enough to the M&A market to comment knowledgeably.
If you could ask for one business present from Santa what would it be?
The regulator insisting that car insurance quotes on price comparison sites are listed in insurer alphabetical order in the interests of avoiding an excessive focus by consumers on the price alone.
Simon McGinn - Allianz general manager of commercial
What’s your top priority for the first six months of 2014?
To ensure that our trading team is very visible in support of our objective to increase trading activity particularly in the property/casualty and SME segments for both new business and renewals. So brokers can look forward to seeing more Allianz people in their offices and more quotation activity in these segments during the months ahead.
If you could ask David Cameron to do one thing for UK GI next year, what would it be?
I would ask the Prime Minister if he could ask the Law Commission looking at insurance contracts to deliver a set of reforms that are clear, concise and have very clear benefits for the customer. In this way, the market can give its full support and make the necessary changes with a clear understanding of what is required.
Do you think rates will harden or soften next year?
It will be a flat market with pockets of extreme competiveness. In short, I am not expecting any great change from what we have seen in 2013. I would add that rates must go up in 2014 to at least cover claims inflation, but that is a bare minimum level of increase.
What do you think will be the biggest emerging risk in 2014?
There is a real danger that a benign 2013 in terms of large weather and fire claims, will cause some commercial insurers to behave in an aggressive manner and cut rates to unsustainable levels. I have to believe that insurers who publically say they value professionalism, stability and prudent underwriting will not behave in such a shortsighted manner.
How much consolidation do you think we’ll see next year?
I believe there will be a lot of consolidation which will make for a challenging year ahead. When the smoke finally clears, Allianz will work with whatever broker market structure emerges. But, if you ask me what I hope we end up with, my answer would be a strong, vibrant and independent broker market, because I genuinely believe that ultimately, this is the best outcome for the customer.
If you could ask for one business present from Santa what would it be?
I’d like a sub 95% combined operating ratio and 5% growth. That’s not asking too much, is it?
David Beardsworth, Absolute Partnership managing director
What’s your top priority for the first six months of 2014?
Keep the momentum going after a whirlwind few months – I feel like a football manager who didn’t want the half-time whistle to go!
If you could ask David Cameron to do one thing for UK GI next year, what would it be?
Follow through on plans to regulate private investigators and increase sentences for fraudsters – stealing is not suddenly ok because it ‘only’ affects insurers and policyholders.
Do you think rates will harden or soften next year?
The insurance world is fast moving, innovative, highly competitive and the days of market cycles seem to be over – I doubt many rates will go up without a major catastrophe.
What do you think will be the biggest emerging risk in 2014?
Absolute is seeing a lot of interest from insurers in investigating the rise in industrial disease claims. It is an old risk but taking on a new significance.
How much consolidation do you think we’ll see next year?
It is still a fragmented broker and insurer market so I wouldn’t be surprised to see a few medium or large companies merging.
If you could ask for one business present from Santa what would it be?
Plenty more fun in 2014, although some extra hours in the day would be nice.
Jacqueline McNamee, AIG executive director, commercial lines UK
What’s your top priority for the first six months of 2014?
To make sure that my underwriting teams remain highly motivated. They achieved a lot in 2013 and they are the key to succeeding with our stretching ambitions in the London Market, the UK domestic market and portfolio underwriting.
If you could ask David Cameron to do one thing for UK GI next year, what would it be?
Continue to support and promote, on the international stage, the extraordinary capabilities of the UK insurance market – the London Market in particular.
Do you think rates will harden or soften next year?
I only wish I had a reliable crystal ball. At AIG we don’t think in those terms. Our planning takes account of conditions specific to each of the many markets we supply. Having said that, capacity issues within the industry is the principal driver of overall rate movement. Should one or two big players rein back then who knows; there may be opportunities for those, like AIG, that have the capacity and ambition for growth.
What do you think will be the biggest emerging risk in 2014?
It’s not a specific risk but I think the consequences of any tapering of quantitative easing in the US could have a fundamental impact in many economies and markets around the world.
How much consolidation do you think we’ll see next year?
It could be an interesting year, but I know that what’s important to brokers and clients is which carriers they can rely on and who has the capability to meet their needs over the longer term.
If you could ask for one business present from Santa what would it be?
A reliable crystal ball.
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