Supporting The Leeds South and East Foodbank
13-Jan-25
Responding to a plea for assistance from our friends in the insurance community, the Team at Aston Charles leaped into action and volunteered to help collect much needed supplies for the Leeds South and East Foodbank. The Insurance Institute of Leeds and Emerging Insurance Professionals (Leeds Institute) set off to Tesco in Garforth to collect financial and food donations from passing shoppers. Between them, the team filled 22 crates (and counting!) and raised over £100 for the Trussell Trust, who distribute food to needy local families. For more information or to support the Leeds South and East Food bank, please visit https://leedssouthandeast.foodbank.org.uk...
Will New Vehicle Risk Ratings Disadvantage Electric Fleets?
20-Nov-24
Will New Vehicle Risk Ratings Disadvantage Electric Fleets? Recent decades have seen a global push towards net zero and sustainability, with lots of large companies looking for ways in which they can become more environmentally friendly. More recently, many businesses that own vehicles have started building up fleets of electric vehicles, with a view to reducing their carbon outputs. However, a recent update in the way that insurance is categorised may have an impact on decisions around new EV purchases, with some concern that there might be an increase in costs. But is this really an issue? What are the new Vehicle Risk Ratings? In 2024 the car insurance industry, led by Thatcham Research, announced a new system for categorising insurance ratings, with the former Insurance Groups Ratings Scheme being replaced by a new Vehicle Risks Ratings (VRRs) System. The idea of the new system is that a car purchaser will be able get a clear picture of the cost of insurance prior to making a purchase. Under the new system, a car’s ranking may change after purchase has been made, leading to the insurance category of a vehicle changing over time. The VRR system will assess cars over five key elements; performance, damageability, repairability, safety and security.[i] Each of these five assessments will be given a score between 1 and 99. [ii] This is almost double the score of the current Insurance Groups Ratings Scheme (which is from 1 – 50). Will this increase the insurance for Electric Vehicles? Some commentators on the new model have pointed out that the new “repairability” aspect of VRR will disproportionately affect Electric Vehicles. The repairability category has the highest weighting for insurers, so this is really key. [iii] The assessment of repairability will take into account the ease and expense with which a vehicle can be repaired; with electric vehicles likely to take a hard hit in this area, due to a variety of factors, including the current ...
Carbon insurance: What is it, and why does it matter?
20-Nov-24
Carbon insurance: What is it, and why does it matter? Over recent decades, most corporations have become increasingly aware - and concerned about - their responsibility towards the planet. Since at least the 1990’s, there has been a strong push globally towards sustainability, averting climate change and achieving “net zero” carbon emissions. However, for many businesses, the releasing of some level of carbon during their operations is inevitable. In response to this problem, a new market has emerged, known as carbon offsetting. The insurance industry has not been far behind, offering a “carbon insurance” to support this emerging sector. This new type of insurance has a number of challenges but is vital to the carbon offsetting model. What is carbon offsetting, and what are carbon credits? Finding ways to reduce and offset emissions is not a brand-new concept. Ways to stop climate change were discussed at the 1992 Earth Summit (from which the United Nations Framework Convention for Climate Change was born in 1994). The UNFCCC is now ratified by 198 Countries.[i] The Paris Agreement of 2015 was an international treaty focused on stopping climate change. It has further led to countries developing targets and regulations. [ii] In addition to legislation mandating that companies limit or offset any carbon that they produce, consumers are voting with their feet and are increasingly supporting businesses that are conscious of their environmental impact. All this creates a situation in which businesses are both constrained to reduce and offset carbon emissions (through “compliance”) and are also often voluntarily going above and beyond even what legislation forces them to do (through “voluntary” offsets). Often, regulations will mandate a “cap” on the amount of carbon that a company can produce. This can then create a situation in which companies trade carbon credits between themselves. Companies who are under their cap may sell carbon credits to companies that go ...
The Insurance Institute of Leeds: Embracing Risk – Living Life Without Limits
20-Nov-24
The Insurance Institute of Leeds: Embracing Risk – Living Life Without Limits The Aston Charles Team were delighted to be invited by our friends at The Insurance Institute of Leeds to attend their most recent event. Hosted at the Carriage Works in Leeds City Centre, the event was delivered by the former Royal Marine Commando, Covert Operations Leader and successful entrepreneur turned public speaker, Mike Bates. Pitching to a roomful of insurance professionals, it was truly fascinating to hear how Mike (who is being increasingly referred to in the press as ‘The Real Life James Bond’) has experience of handling a vast amount of complex risks, including things such as Combat Tours of Afghanistan, Anti-Terror undercover work, and rowing solo across the Atlantic Ocean! This gave us all an insight into: Appreciation of risk and how to adapt attitudes towards risk. How to boost mental resilience – business and personal. How to adapt to difficult situations and think more clearly. Understanding how to unlock your personal potential. Mike’s hour-long talk flew by in what seemed like no time at all, and we were all in agreement that Mike is a highly entertaining, thought-provoking and inspirational speaker. Speaking to fellow attendees after the event, it was obvious that everyone really enjoyed the talk and took a lot away that they could use in their personal and professional lives....
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....
The Insurance Industry: Reacting to a Disrupted Market
16-Apr-24
The Insurance Industry: Reacting to a Disrupted Market As the insurance sector surveys the landscape for 2024 and beyond, there are a number of changes in sight. New technology, extreme events and changing cultures are all shifting the way Property and Casualty insurance needs to operate. Some of these new factors create opportunities, while others create risks; many offer both. Responding to market disruption is nothing new for P&C insurance. While the specific factors may be unprecedented, the insurance sector has always been at the forefront of predicting and responding to new risks. In this article we will look at some of the key elements that are changing (or are set to change) the industry within the next few years. Artificial Intelligence It is impossible to discuss disruptive markets without talking about AI. Artificial Intelligence has been on the scene for a few years now, but as it continues to develop, it brings about innovation and opportunity, while also creating risk, uncertainty, and potential problems. Almost all industries need to adapt to a world where AI is commonplace. AI offers massive opportunity to the insurance industry. It can reduce risk, increase speed and refine processes across the board. AI can interact with clients in a more supportive way than ever, meeting their requirements and even anticipating their needs in a way that has not been possible before. At the same time, lots of clients struggle with the impersonal nature of AI – although this is improving all the time, as it becomes more adept at mimicking human emotional responses. Of course, there are dangers that come with computer learned behaviours. One recognised risk is that AI is vulnerable to using data to inadvertently create an illegal or unethical bias – for example, a bias against a protected group. This could result in fines and legal sanctioning, as well as a significant loss of trust in the methods being used by the industry. As this is already a recognised risk, ...
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, ...
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