The Hodges approach

Flick through the pages of Insurance Times this week and you’ll see the familiar face of Mark Hodges at the helm of Aviva. Hodges has emerged as the ultimate pragmatist and even before he’s negotiated a deal.

It’s amazing how spirits have lifted amongst the senior ranks in the broking market and some of the most hardened consolidators are talking in glowing terms about ‘the Hodges approach’ and even before they have met him. It could be argued that Igal Mayer lost a personal PR war that he was never going to recover from. It was one that was fuelled by those he out-negotiated or didn’t (whatever way you look at it).

But it’s important too to be objective. Mayer did drink late into the night with local brokers at an Aviva conference in Dublin and acquired a certain element of good will. And he did woo too an element of the local broking crowd at an Aviva conference in Barcelona at the back end of 2009. But it was the most powerful and vocal senior players of the broking market who sang a negative tune to which others signed up to.

And it was reinforced by the Aviva numbers and a very public fall in premium. However, remember also that Hodges sat on the same executive committee as Mayer that agreed the overall distribution strategy. It’s just that the tactics deployed by Hodges would have been and will be different. Hodges will dip into negotiations when he needs to, and probably be reluctant to get involved in the rough and tumble of day to day spats.

He has a more measured approach than Mayer, but can also be tough when he wants to be. And spare a thought too for David McMillan and Janice Deakin. McMillan is the General Insurance chief executive and the lead person for this market and it will be Deakin who has to re-engage on relationships that had previously turned sour. But Deakin will and can do it. And, as an operations and people person, McMillan will do it too.

However what is telling, is how this set of events has highlighted how important the ‘people’ element of this market really has to be. You can be tough, you can be angry, but ultimately in a tightly regulated market place there is always a choice. Key players want risk to be diversified, tickets to be shared, nearly everyone can be made to feel happy. But unless the business relationship is a fair, nice and pleasant experience, powerful forces will vote with their feet and leave you high and dry, and no matter how big you think you are.

To read a full interview with Aviva's new chief executive, click: Mark Hodges.