Industry leaders reflect on the year and give their 2015 predictions
Phil Bayles, Aviva chief sales officer
What was your insurance highlight of 2014?
Our best combined operating ratio (COR) for eight years and getting back to being on the top of our game and being recognised for that by our brokers through a whole host of awards, most notably the Insurance Times General Insurer of the Year.
What was the most surprising event?
The most surprising event was that the industry emerged with so much credit from the floods early in the year. It could have been a PR disaster, but I think we collectively stepped up and did the right thing for our customers in their time of need.
And the most predictable?
All the personal injury lawyers trying to find loopholes in the Jackson reforms or create new categories of bodily injury now that the opportunities to exploit whiplash have been reduced.
What will the big market issues be in 2015?
The on-going battle to stop fraud and excessive bodily injury claims and conduct risk around sales and advice activities.
Do you think rates will harden or soften in 2015?
Rates will continue to behave very differently in different parts of the market – we are more likely to see a bit of hardening in motor and casualty than property, in my opinion.
What’s your priority next year?
Building on the momentum we haver in the market through the efforts of our people and support of our brokers and continuing with our ‘Road to Reform’ agenda, saving UK consumers money by tackling the compensation culture.
Martin Milliner, LV= claims director
What was your insurance highlight of 2014?
The highlight for me would be the sheer volume of criminal convictions, arrests and trial wins in respect of insurance fraud. We are finally seeing the judiciary create a consequence for organised and ‘have a go’ fraudsters alike.
What was the most surprising event?
You can choose between the Competition and Markets Authority deciding to take no remedial action over the claims-related harms that it highlighted in its PMI enquiry – the phone was ringing and they should have answered it. Or maybe the alleged events that have reportedly unfolded at Quindell.
And the most predictable?
The most predictable would have to be that somehow the claimant legal market has survived the terrors of Laspo (Legal Aid, Sentencing and Punishment of Offenders Act 2012), with no effect on either claims volumes or revenues. And that the Aussies completed a 5-0 whitewash over England in the Ashes!
What will the big market issues be in 2015?
Can the industry speak as a united voice to get the Treasury/Ministry of Justice Task Force to deliver solutions that can make insurance fraud socially unacceptable, with the right deterrents and incentives for behavioural change?
Do you think rates will harden or soften next year?
Private car rates look like they will harden substantially in 2015, given claims inflation and poor investment returns. Most other general insurance lines of business look like they may lag behind and remain relatively soft.
What’s your priority next year?
My priorities for next year are the same as in every year: how do I help make LV= an even better place to work and how can we deliver the best possible service to our customers?
Ben Fletcher, Insurance Fraud Bureau director
What was your insurance highlight of 2014?
From a personal perspective it would be undertaking the Insurance Fraud Bureau (IFB) strategic review and consultation. The support from the wider industry and the consistency and clarity in what the industry wants delivered I find very encouraging.
From an industry perspective it would be launching the Insurance Fraud Register. This database is a significant achievement and important for the industry on several levels, because not only will it help better detect fraud, but it will also develop to become a very strong deterrent for the would-be fraudster.
What was the most surprising event?
The recent announcement that the government is to set up a task force for the industry looking at fraud. It will be interesting to see where that leads.
And the most predictable?
The industry identifying Operation Clapham – the first large-scale liability, cross-industry investigation – which demonstrated what many practitioners have been predicting for some time, that the gangs operating in motor are also working in other product lines too.
What will the big market issues be in 2015?
Regulation and industry initiatives are the big two. We have the Security Industry Association regulation of private investigators and the EU review of data protection, both of which have the potential to change how we work. There are then a whole host of industry initiatives, which have been started and have the potential to impact onthe fraud community, not least sharing data with claimant lawyers and the establishment of MedCo.
What’s your priority next year?
To make sure that we work with the industry to pull together a comprehensive set of business requirements for an expanded IFB that will be the foundation of our operations over the next five years and beyond.
Steve White, Biba chief executive
What was your insurance highlight of 2014?
The Biba Conference – a record number of attendees and broker delegates, great feedback from attendees, exhibitors and sponsors, excellent plenary and seminar sessions and just the best opportunity to catch up with so many members and business acquaintances.
What was the most surprising event?
The sharing economy was not on people’s radars at the start of 2014, and so its dramatic rise in profile would be my surprise of the year.
And the most predictable?
The level of general media interest in issues around flood insurance claims, bearing in mind that the Thames corridor was badly affected.
What will the big market issues be in 2015?
The big five issues are likely to be the trialogue process around the IMD revision and the likely finalising of the new text; The Davis Review of the FCA is now going to involve the Treasury Select Committee, so this will be a big story in early 2015; Flood Re and the Insurance Bill should both finalise in 2015; the general election is likely to have impacts upon brokers and their customers; and, finally, the remedies in the Competition and Markets Authority will need to be implemented, which will certainly be a big issue in large parts of the private car market.
Do you think rates will harden or soften next year?
There is still plenty of capacity around, so certain markets will remain soft while others will continue to harden a little.
What’s your priority next year?
Continuing to make Biba the best we can be by continuing to be demonstrably better at both sitting down and listening to our members and then standing up and speaking out on these issues.
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