Daily briefing: Monday

RSA has had one of most stable management teams of the major UK commercial insurers for some time now – a fact that may be reflected in its consistent results, increasing popularity with brokers and winning of the coveted Insurance Times General Insurer of the Year Award 2010. So it was ripe for change, which came this morning with the announcement that commercial managing director Paul Donaldson is moving to a group role, heading up broker relations worldwide, to be replaced by John Hancock.

Stepping up to the plate

Donaldson and UK chief executive Adrian Brown were a strong team, so Hancock has big boots to fill. He has been with RSA for 21 years but has spent much of that time out of the UK, most recently as chief executive of RSA’s business in Asia and the Middle East. As RSA looks to expand its presence in the highly competitive SME market – traditionally dominated by rivals such as Aviva – earning the trust of a wide range of brokers must be priority number one. And let’s not forget, he’ll be going head to head with some well-established figures that are hardwired in to the market, such as AXA’s Amanda Blanc, Allianz’s Chris Hanks and Aviva’s Janice Deakin. Donaldson could hold his own among these peers – can Hancock say likewise?

Bureaucratic barriers

Meanwhile, Donaldson has himself a brand new role and a seat on the group executive committee. He’ll be heading up major broker relationships worldwide, as RSA responds to changes in how those brokers are run. Aon, Marsh and Willis all have some sort of global placement system in place, as do big-ticket corporate insurers such as XL and ACE, so there is clear logic to RSA’s move. The danger lies with the inevitable bureaucracy of a global organisation and impenetrability of its individual fiefdoms. However, Donaldson has strong support from UK boss Adrian Brown and the other CEOs, as well as a seat on the board. He’s not likely to empire-build, and is widely known and respected within the business. All these elements will be crucial to his success – and fellow insurers will be watching closely.

Aviva scouts for highest bidder

Aviva’s sale of RAC continues to excite the market, with Insurance Times’ latest revelation that former AXA and AA boss Mark Wood has been linked with private equity bidders. As we revealed last week, listed broker Brightside has also thrown its hat in the ring. The big question now, as interest spreads, is how far can Aviva push the price tag?

Ellen Bennett is editor-in-chief, Insurance Times.