Weekly briefing: 10-16 June - Aviva's best of frenemies

Philippe Maso’s return to the market has been widely anticipated over the past couple of months, since he finally reached a settlement with former employer AXA. Wild rumours about his plans abounded in the bars of Manchester during last month’s Biba conference, but no one had the true story, as it transpired today. Contrary to popular expectation, Maso will not be staying in the UK, but returning to his homeland as chief executive of Aviva France.

It’s a great job for Maso, and two fingers up to AXA from Aviva. The appointment was Aviva Europe boss Igal Mayer’s – and the two men have history. Maso and Mayer were on friendly terms when they ran the rival insurers’ UK businesses towards the end of the last decade. They were both closely identified with efforts to drive down consolidators’ commissions and limit the number of MGAs in the market. Eventually, both paid the price of their hardline strategy, with Mayer departing Aviva in October 2009 and Maso leaving AXA nearly a year to the day later. Mayer made a surprise return to the UK, taking Aviva’s top European post in January – and now, five months later, he has appointed his old rival and friend to a key position.

The European intermediary market operates differently to that of the UK, with many more tied agencies (Aviva France has 875). When AXA bought the broking businesses that now make up Bluefin, many observers suspected it to be moving towards a European model of distribution – although that has not transpired.

Maso didn’t have the easiest tenure at AXA, but was widely respected. It’s a shame his comeback is happening on the other side of the Channel, but this may be more of an ‘au revoir’ than a ‘farewell’ to the UK market. Perhaps one day the Mayer-Maso double-act could return to these shores to run the country’s biggest insurer as group boss and UK boss? Now that would be a story.

Bodily injury here to stay

The rise in bodily injury claims is a fact of life that insurers have learned to deal with. IAG is anticipating a further 15% claims inflation this year, and is pricing accordingly, as we report this week. The Australian insurer has reiterated its commitment to the UK market following a torrid time, and set out a course to return to profit in 2012. This has included 20% rate hikes – double digits that are likely to be reflected across the market for the second year running.

NIG gets a bruising

NIG is still feeling the pain of bodily injury, despite exiting the personal lines market, we revealed this week. The insurer posted a loss of £78.8m in 2010; £8.4m of that was in its commercial book, which had been in profit to the tune of £12.7m the year before. Chief executive Jon Greenwood attributed the loss to bodily injury claims on NIG’s commercial motor book, as well as last year’s adverse weather events.

Regulatory spotlight turns to the aggregators

Brokers may be excused a sense of Schadenfreude with the news that the FSA plans to crack down on aggregators. The regulator has turned its attention to price comparison websites at last, issuing tough new guidance to ensure they don’t mislead consumers. The rules could force consolidation at the smaller end of the market, suggests David Blackman.