Industry has a friend in Cameron

For years the insurance industry has had its work cut out when trying to make its voice heard in government. But there appears to be some light at the end of the tunnel.

Today we reported comments made by Conservative MP Jonathan Evans about Prime Minister David Cameron’s interest in the sector. Evans claims that Cameron is “starting to understand the importance” of the insurance industry more than ever before. In fact, the PM is even “warming” to the industry, according to Evans.

When was the last time you heard this said about a political leader?

However, if true, the timing could not be better for insurers and brokers. With the disbandment of the FSA and the new regulatory regime set to be introduced, coupled with the ongoing implementation of Solvency II, the industry will benefit from having support from the government at this time.

But what does David Cameron really knows about insurance? sceptics will ask. Well in 2012 he has learnt quite a bit.

He was joined by industry leaders at a Downing Street insurance summit in February on the rising cost of motor insurance, and he has appeared at Lloyd’s, where he gave a ringing endorsement of the market’s 2025 strategy. This is one relationship the industry will not want to lose.

Feeling the strain

Giles boss Brendan McManus was today speaking in response to the consolidator’s annual results, in which turnover and revenue have increased but the broker’s after-tax loss remained flat at £37.4m (2010: £37.1m).

He’s admitted that the company will be taking a cautious approach to acquisitions, rather than splashing the cash at every opportunity. This will be the case for many consolidators, who have felt the strain for paying over-the-top prices for brokers in the last five years.