Post magazine - 25 July 2013

Of the nine international insurers included in the ‘too big to fail' list, UK-domiciled firms Aviva and Prudential will be subject to increased scrutiny by the Prudential Regulation Authority.

In other news, brokers are risking high fines by continuing sales of opt-out add-ons due to fears switching to an opt-in system could see sales drop by up to 70%; Aviva has rejected suggestions a cost-saving agenda was behind its recent comprehensive loss adjuster panel review, insisting instead the move represents the wishes of brokers; and The fight against ghost brokers received a boost this week when it was confirmed classified advertising website Gumtree had removed all personal insurance-related advertising categories from its site.

Elsewhere, Paul Skinner, Chubb Insurance explains how clean technology firms could find themselves in a mess if they fail to secure adequate insurance cover in the first of two View from the Tops, while, Arista Insurance CEO Charles Earle looks at the relationship between managing general agents, insurance customers and capacity providers.

In this week's interview, Post's Carolina Parra-Serrano catches up with CFC Underwriting founder and MD David Walsh, who explains why, after spending 14-years building the successful MGA from a dotcom start-up, he now sees the global market as his canvas.

This issue also carries the concluding instalment of the Claims In Series. With the industry split over the ethics of subrogation, Sam Barrett asks if intervention from the Competition Commission will resolve the issue once and for all, or if bilateral agreements between insurers will provide the solution; while Sara Costantini, CRIF Decision Solutions director explains why, when it comes to subrogation, bilateral agreements and a better use of technology can help insurers operate more efficiently.

While motor insurance has long been the loss leader in personal lines, the cracks are now beginning to show in the profitability of the household insurance market. Annie Makoff investigates if the sector is set to crumble or if its foundations are solid enough to see it through; and with continued uncertainty surrounding Solvency II, Carolina Parra-Serrano asks if more firms could be tempted to follow the lead of Randell & Quilter and split their tax and regulatory domiciles.

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