Biba and ABI confident despite losing insurance savvy politicians in cabinet reshuffle

Biba and the ABI have reacted coolly to the latest cabinet reshuffle, stressing they will work with whoever is in power.

The latest reshuffle, completed last week, included a number of changes that will affect the insurance industry.

The key changes were:

• In Defra, which is responsible for flooding, George Eustace was appointed to head the department. He takes over from Richard Benyon as the floods minister.
• Helen Grant’s replacement as the new justice minister in the Ministry of Justice (MoJ) is Shailesh Vara who, it is expected, will oversee the mesothelioma and whiplash consultations.
• At the Department for Work and Pensions, Mark Hoban, who comes from an insurance background, has been replaced by Esther Mcvey as the minister of state for employment. Before Hoban it was Chris Grayling. The division is responsible for the Compensation Recovery Unit which works with insurance companies to recover benefits paid out to stricken individuals.

Biba executive director Graeme Trudgill said although the changes would create a little uncertainty he did not see it causing any major problems, and it could be a good time to revisit an old issue with a new minister.

Trudgill added: “This is the most significant reshuffle we have seen for some time in areas relevant to the industry. But reshuffles are inevitable and you have to re-juggle things.

“You build up the relationship and new ones come in – it is a constant effort for Biba and ABI.”

At this year’s Biba conference in March, Mark Hoban signed the partnership agreement with chief executive Steve White on stage, aimed at improving work opportunities within the insurance sector.

Hoban said afterwards:  “It’s a credit to British businesses up and down the country that we now have a record number of people employed in the private sector and I am determined to do all I can to continue to support businesses to grow.”

However, Trudgill asserts the jobs deal agreement was signed between BIBA and DWP, not Mark Hoban.
 
He added: “He (Hoban) had a really healthy insight but anyone in his position is surrounded by civil servants who can fully help them and we don’t really have any negatives.”
 
While welcoming Javid’s promotion to financial secretary, Biba is also keen to work with Morgan.
 
Trudgill said: “We know Sajid, he knows brokers and gets our issues. He has been very involved and will absolutely be a relevant minister for brokers.
 
“It’s new ground for her (Nicky Morgan). We will obviously be keen to educate her in the issues of the membership.”
 
Meanwhile, MP Jonathan Evans, all-party parliamentary group chair for insurance and financial services, has also welcomed the appointment of Javid and Morgan, but has expressed disappointment that capable ministers such as Benyon and Hoban are no longer in their role.

He said: “It’s strange that someone of Hoban’s ability should leave the government, but Esther Mcvey has done very well. She is highly regarded and was very very clearly going to get a promotion within this government.”

He added that Benyon’s departure would not have “much” impact on the flood re scheme because the primary person responsible for driving the policy forward has been Oliver Letwin, the minister for government policy.

On the changes at the MoJ, Evans gave his approval on Vara’s appointment as he did not think that the whiplash agenda had been high on Grant’s table of priorities as the minister for victims and the courts.

“He (Vara) is a very much more experienced minister, somebody that comes with a distinct background in law and who I have a lot of hope is going to be a bit more focused on this agenda.”

The ABI said it did not comment on individual appointments and asserted that it is more concerned about policy and not the person.
 
Malcolm Tarling added: “We will simply deal with the ministers that take up the jobs.

“We appreciate that many new ministers, will have a steep learning curve to get on top of the jobs, but the hard work will continue.”