Discretionary motor commissions, an arty insurer, insuring love and a new climate protest group targeting the industry. What has the insurance sector been up to this month? You heard it here first…
FCA puts brakes on motor finance scandal
Since the FCA launched its inquiry into discretionary motor commissions following a barrage of complaints in January 2024, consumer champion Martin Lewis has introduced his own reclaim tool and guide. Discretionary commissions were banned in 2021, however Lewis believes many customers could still be owed compensation.
Sheldon Mills, executive director of consumers and competition at the FCA, said in January 2024 that should “widespread misconduct” be found around these commissions, then the regulator “will act to make sure people are compensated in an orderly, consistent and efficient way”.
Arty Axa
Fine art insurer Axa XL renewed its partnership with London’s Royal Academy of Arts in February 2024, announcing the Axa Art Prize UK 2024.
The prize will award £10,000 to an outstanding piece of figurative art from the Royal Academy’s summer exhibition, which runs between 18 June and 18 August 2024.
Sean McGovern, chief executive for UK and Lloyd’s at Axa XL, said: “This partnership aims to champion UK-based artistic talent and strengthen our business relationships through our shared value of preserving cultural heritage.”
Paint it red
Climate protest group, Shut the System targeted insurers in London on 29 February 2024, splattering fake blood across Tokio Marine Holdings, AIG and Zurich’s offices.
This followed average air temperatures exceeding 1.5C of warming on a daily basis from the second half of 2023, breaching the Paris Agreement. The group said that if its concerns were not addressed it “would be back”.
Love insurance
Following Valentine’s Day in February, the Insurance Museum highlighted the 1919 film Love Insurance. This tells the story of nobleman Alan Harrowby, who takes out an insurance policy with Lloyd’s on his upcoming marriage.
Over the years, Lloyd’s has seen different forms of love insurance. For example, production company Paramount Pictures took out a love insurance policy for actress Patricia Morison in the 1940s in case she found a husband while filming. The policy covered Morison being unable to pursue her profession due to matrimonial entanglements.
The Speculator
At the end of February 2024, Belgium-based insurer Ageas revealed that it was considering buying Direct Line Group (DLG).
Ageas said “it firmly believes that the combination of Ageas’ and Direct Line’s UK businesses will be beneficial” for shareholders.
However, DLG knocked back the bid, describing the possible £3.09bn offer as ”highly opportunistic”, “uncertain” and “unattractive”.
With these discussions still being in the very early stages, there is no saying that Ageas won’t win out in the end, despite DLG’s initial stance. What could this deal mean for the market, however?
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Writer of the monthly TechTalk section of the magazine and backchat. When not writing can be found doing yoga, at some kind of dance workshop, singing, globetrotting, or baking – not in any specific order.View full Profile
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