Blog Articles

Insurance Specific Employee Health & Wellbeing Opportunity
01-Jul-24
Our exciting new collaboration – Insurance Specific Employee Health & Wellbeing Opportunity Employee health and wellbeing is a massively important subject, and it’s great to see so many of our insurance clients taking this so seriously. To us, it’s a bit  of a no-brainer; a happier, healthier team will lead to – Increased productivity Minimal lost hours to sickness Talent acquisition & staff retention A work force of high energy, company ambassadors that are engaged with your goals But where do you start? Not all firms have the time or budget to roll out their own inhouse programme, and let's face it - employee surveys may not be as honest if you know the person who is responsible for your pay review is going to be reading it! So, we’ve teamed up with the lovely Lisa Kempster, who may many of you know – she enjoyed a successful career as an insurance recruiter prior to setting up her own Health & Well being practice.  Lisa’s got over 15 years’ experience of partnering with insurance businesses so understands the challenges of the job, the industry, along with the importance of return on your investment. To top that off, Lisa is partnering as a Consultant with West Yorkshire Business Boost, so you may be able to claim back 50% of the cost of your programme, regardless of where you are based (broker clients – you’ll be glad to know she won’t be adding VAT to your invoice either)!...

Cryptocurrency: A Wealth of Opportunity for the Insurance Market
01-Jul-24
Cryptocurrency: A Wealth of Opportunity for the Insurance Market Since the development of Bitcoin in 2009, cryptocurrency has been an innovative new player in the financial sector; a groundbreaking way to own wealth outside of fiat currency. With the growth of cryptocurrency, there has come an array of new risks, as cyber criminals have become aware that exploitation of this new arena can be highly lucrative. It is estimated that in 2022, there were about $3.7 billion in crypto losses.[i] Inevitably, this kind of risk has presented both a challenge and an opportunity for the insurance market, as insurers have the chance to work alongside the cryptocurrency sector, offering risk mitigation and financial protection. An opportunity While cryptocurrency has grown in leaps and bounds over the past 15 years, it appears that, for the moment, the insurance sector is playing catch-up. In 2023, Evertas, a large Cryptocurrency insurer, estimated that a mere 2-3% of crypto assets were insured globally.[ii] Now is the opportunity for forward thinking insurance organisations to step up to the plate in this arena; offering value for money insurance policies and support with risk mitigation to the businesses making their money from cryptocurrency. What type of insurance? Different companies make money from cryptocurrency in different ways; from mining new coins, to storing keys for themselves or clients, or managing transactions. A good insurance broker will need to look at exactly what services the business provides and at what volume. They can then offer advice on the optimum insurance policy, to ensure that the business is not underinsured, and that they have access to a value-for-money policy that covers all the risks. This offering is likely to be across a number of kinds of insurance which could include the following: Cyber insurance One of the most obvious insurance requirements for a cryptocurrency business is insurance against cyber-attacks. Naturally, a wealth which is ...

Aston Charles Sponsors Insurance Institute of Leeds 134rd Annual Dinner
02-May-24
Aston Charles Sponsors Insurance Institute of Leeds 134rd Annual Dinner Once again, Aston Charles sponsored the Insurance Institute of Leeds Annual Dinner. For many, the ‘Annual Do’ is the highlight of the Yorkshire insurance community’s calendar, and this year certainly didn’t disappoint. In a slight change to the usual format, the formalities were unexpectedly paused by the armouries’ staff to make a surprise announcement – only to reveal they were actually the musical group ‘The Singing Waiters’ who launched into an array of dancing-floor filling party favourites and, perhaps most notably, a conga-dance around the Royal Armouries’ New Dock Hall featuring the cream of the Yorkshire insurance market! The team were joined by guests from UK Global (Part of The Howden Group), Willis Towers Watson, CNA Hardy and Schofield Insurance Brokers (Ethos Broking). The event was raising money for the Chartered Insurance Institute’s ‘The Insurance Charities’ as well as IIL’s President, Kate Edmondson’s chosen charity for the year, Sue Ryder Manorlands Hospice. The event’s other headline sponsors include Marsh, Liberty Speciality Markets, and the Bespoke Group....

Aston Charles hosts a charity insurance Darts evening
17-Apr-24
Aston Charles hosts a charity insurance community Darts evening, on behalf of Simon on the Streets. After the success of our previous charity nights for our friends and clients in the insurance industry, such as a Curling evening and a Go-Karting night, the team at Aston Charles had been thinking about organising another event for a couple of weeks. By chance, we were having a catch up in Leeds city centre, and bumped into a couple of our Broker friends who were attending a networking event for Simon on the Streets in the bar next door. We were promptly invited to join in the fun and meet attendees including, amongst others, Leo Jones-Rowe, who alongside the day job of being a Partner of Schofield Sweeney, is also Chair of Simon on the Streets. Always one to call out Richard’s procrastination, Annie and James were quick to suggest that we support Simon on the Streets for our next event and, and as many of our clients enjoy Darts (and not to mention the ‘Luke Littler Effect’!) we promptly decided to hire a floor of Flight Club on Park Row, Leeds. Fast-forward a couple of weeks, and we were delighted to host insurance professionals from across the UK at our event. The winner of the individual trophy was Craig Dinnewell of UK Global (Part of Howden Group), with silver and bronze medals going to Tom O’Connell (C&C Insurance Brokers) and Rhys Jones (also UK Global) respectively. This meant that UK Global also picked up the Team Trophy, winning a complementary round of Darts – kindly donated by the team at Flight Club Leeds.    As well as being joined by many of our insurance contacts, we were also joined by our friends from the legal sector such as DWF and, of course, Schofield Sweeney. Simon on the Streets is an independent charity offering emotional and practical support for homeless and vulnerable people to enable them to achieve their goals....

Insurance Costs Rising with Flood Risks: How Can Brokers Help?
16-Apr-24
Insurance Costs Rising with Flood Risks: How Can Brokers Help? 2023 recorded a record home insurance price increase. Consultants, Pearson Ham stated that the cost of building and contents cover went up by 40% from 2022 to 2023.[i] This is quite a blow for already financially stretched homeowners as they try to cope with the cost-of-living crisis. When people purchase insurance, they want to know that they are getting a product that is protecting them, while also being value for money. Doubtless, they will be questioning why there has been such a swift rise – especially for those individuals who have not made any claims. Insurance brokers are uniquely placed to help policy buyers understand what is happening in terms of their home insurance, while making sure that they have an insurance policy in place that meets their needs. Why the price rises? Price rises have been happening across all areas of insurance for a variety of reasons. One of the major causes of the price increase for building and contents insurance is down to the vast expenses associated with a rise in freak weather incidents over recent years. In the United Kingdom, this is often related to storms and flooding. Sadly, flooding has become a regular issue for homeowners in many parts of the UK. The Environment Agency put the number of homes at risk of flooding at 5.2 million in England alone.[ii] This number will be rising all the time. Average insurance claims in the aftermath of flooding are £48,551 for houses and £11,489 for contents. Following the storms of October and November 2023, a massive £352 million was paid out by insurers.[iii] These costs do, of course, have to be passed onto the policyholders to allow insurance to remain viable. Reassuring clients Lots of insurance customers are understandably anxious about the rises in home insurance costs, as well as rises in excess charges and worries about under insurance. What can brokers do to ease the concerns of their clients, while making sure ...

The MGA Model: Reliable or Redundant?
27-Feb-24
The MGA Model: Reliable or Redundant? Placing over 10% of the UK’s insurance premiums, Managing General Agents have become a fixture of insurance in this country. While MGAs enjoyed a number of years of expansion through recent decades, over the past three years, they have seen a small amount of decline. Some companies may be questioning whether use of MGAs is still a business model that works as we move forwards into 2024. Are there more opportunities for the future of MGAs, or is it time to move on and look at different models? What are MGA’s? MGAs are insurance agents, authorised by insurers to carry out a variety of roles such as underwriting and negotiating contracts on behalf of that insurer. They may also be involved in settling claims or appointing brokers. They work within parameters agreed with the insurer.[i] The partnership between insurers and MGAs can be a very beneficial one. MGAs tend to have specific strengths in their field of expertise, and they can offer insights into particular markets that large insurers may not be able to access as efficiently. Meanwhile, the large insurers can offer capital, flexibility and resources that maximise the insurance offerings for clients and the profitability of the programme. [ii] Is the model declining? Although it is acknowledged that there are lots of benefits to the MGA model, the past three years has seen their growth declining. Insurance DataLab revealed the preliminary findings of its 2022 MGA performance report exclusively in Insurance Times, rating the performance of MGAs based on their financial performance. It showed that while 2020 saw an average growth score of 53.8%, this decreased to 51.6% and 49.4% in 2021 and 2022 respectively. [iii] While this will be of concern to those investing in and managing the MGAs, at the same time it’s important to recognise that the past three years is not a neutral sample to analyse. The insurance industry has had a very challenging few years across the ...

The Risks and Rewards of Investing in Insurance
21-Nov-23
The Risks and Rewards of Investing in Insurance For a number of years, investing in the insurance sector was a (relatively speaking) safe bet in the stock market. While not paying huge dividends, investors tended to have confidence that their investments would grow; after all, insurance is entirely necessary for almost every business and individual, regardless of what is happening in the wider economy. However, in recent years, a number of factors have seen some drops in profits, making investors question whether insurance stocks still hold the same low risk benefits as they did before.* A guide to insurance wealth Insurance companies make their money in two ways. 1)      Insuring businesses and individuals for unforeseen events. The hope is that losses will not occur and then the insurance company will make a profit. This is the underwriting profit. 2)      Money that is paid in by policyholders is known as a float, and insurance companies invest this float until it is needed to pay a claim. This is most usually invested in low-risk stocks and bonds. [i] The risks Insurance companies face a double risk at the moment. Firstly, world events over recent years have created an unstable environment for Underwriters to assess. Property and Casualty insurance has had an unprecedented number of claims. Secondly, the current economic downturn has meant that investments have not been as profitable as hoped. Car insurance has probably been one of the worst hit sectors of the insurance industry. Since the end of the travel restrictions brought about by Covid, there have been an increased number of car accidents, pushing up the number of claims. At the same time, an increase in the cost of parts and labour means that cost per claim payout has been increasing. In 2022, the car insurance sector announced a net combined ratio (NCR) of 109.5% - the poorest figure in a decade. The NCR denotes the cost of claims as a percentage of ...

Can a Career in Insurance Appeal to the Next Generation of Our Workforce?
11-Sep-23
Can a Career in Insurance Appeal to the Next Generation of Our Workforce? Sadly, the insurance industry appears to have developed a reputation for being old fashioned, or boring. We asked a Generation Z child their opinion about working in the insurance industry. She said “it sounds like one of those jobs that I just associate with boredom. I picture falling asleep at a desk.” Where has this perspective come from? How can the insurance industry make themselves appealing and relevant to the workforce of the next generation? Do young people want to work in insurance? Our interviewee is not alone in her opinions as a young person. It appears that this attitude may persist through childhood into being a young adult, judging by the unfortunately low number of people in their 20s and 30s currently looking at insurance as a career. A study by ACORD showed that only 4% of millennials (born between 1981 – 1997) would think about working in the insurance sector. This is concerning, given that millennials are likely to be 75% of the UK workforce by 2025. [i] Of course, in 2023, as we look towards the future of insurance, we are not only talking about recruiting millennials, who are now aged 25 plus and may be already on a chosen career path. Now is the time to start appealing to Generation Z (born approx. 1997 – 2012) and then Generation Alpha (born 2013 onwards). A new generation Recruiting young people into careers in insurance is vital to the general insurance sector. Not only are they needed for future numbers, as previous generations look to retirement, but their ideas and skills are needed now. Generation Z are the first generation that grew up from childhood with social media as a normal way of communicating. They have seen huge growth of technology and a lot of political and economic upheaval. They lived formative years through the Covid epidemic, with all the complexities that brought. All this makes generation Z an adaptable, technologically-adept generation, ...

Can Insurance Companies Help Pave the Road for Vehicle Fleets to Go Electric?
24-Jul-23
Can Insurance Companies Help Pave the Road for Vehicle Fleets to Go Electric? As the UK strives towards net-zero carbon emissions, many large companies are recognising their own responsibilities in working towards that goal. As such, many nationwide organisations are changing their petrol and diesel vehicle fleets to battery electric vehicles. Organisations pledging to make their fleets fully electric by 2030 include Royal Mail, Tesco, BT and Scottish Power. They, in turn, are holding the government accountable for ensuring the transition can run smoothly, with the right infrastructure in place to allow the changeover process to be straightforward.[i] The Government has responded with a range of measures which include commitments to increasing the number of charging points, as well as various tax breaks and incentives, both to employers running electric vehicles, and to employees if they run an electric vehicle as a benefit in kind. Motor fleet insurance As companies start to purchase electric cars and vans, rather than petrol or diesel, one important consideration for them is the ease of insuring such vehicles. The commercial insurance sector has been quick to respond to the growing electric market but needs to continue to improve the insurance offering as the sector continues to grow. A large market In the UK now, the RAC estimates that there are around 712,000 zero emission electric vehicles in the UK. Throughout 2022, around 267,000 battery operated vehicles were registered, up from around 191,000 in 2021 and 108,000 in 2020.[ii] Covid, and other world events, slowed the distribution of electric vehicles at the beginning of the 2020s, but the market is now regaining momentum. As these figures increase, insurance companies should be responding. Underwriters will need to continue to assess the risks as more data about electric vehicles becomes available, while insurance brokers will be advising fleet owners and managers on the most suitable insurance and making ...

Are Your Flexible Working Policies in Line with Legislation?
07-Jul-23
Are Your Flexible Working Policies in Line with Legislation? In recent years, flexible working has started to become a normal part of office life. Historically, flexible working was most commonly utilised by mothers returning from maternity leave part-time – and they often felt themselves penalised in their promotion opportunities by a decision to reduce their hours. Now, any employee can request flexible working, which may be for a multitude of different reasons, and employers are understanding that these individuals can offer as much value to the company as their full-time, office-hours colleagues. Statistics show that flexible working practices have increased by a massive 566% in seven years; from 8.7% of advertised roles in 2016, to the 58% of businesses currently offering flexible working options in 2023.[i] More than ever before, people are able to rise to the top of their careers while following flexible working patterns. What is flexible working? Flexible working is anything outside of the traditional 9-til-5 office hours. It could include working part time hours, term time only hours, job sharing, working from home or various combinations of the above. Covid was a big catalyst in the increase of flexible working, with both employers and employees observing a number of advantages to working flexibly. It allows people with caring responsibilities, hobbies, or just wanting a healthy work-life balance to work hard and efficiently, while also remaining dedicated to responsibilities or priorities outside the workplace. The Employee Relations (Flexible Working) Bill The law legislating flexible working practices is somewhat outdated and was created well before flexible working became such a mainstream option for businesses and employees. A new bill is going through parliament to make the practice of accessing flexible working fairer and easier. All employers, including those in the general insurance sector, need to ensure that their own policies comply with the ...

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