December 19, 2018
Round-up of the weekly news and developments from the global (re)insurance market with stories from Marsh, Sompo, Hiscox and more.
Marsh unveils regional, specialty and placement leadership roles
Marsh has revealed a string of future leadership appointments for its specialty, regional and placement teams as parent company, Marsh & McLennan Companies (MMC) gears up for its acquisition of JLT.
The new leadership roles are to be divided among JLT and Marsh staff, with all appointments becoming effective once the transaction closes.
Within its newly established Marsh-JLT Specialty business, the broker outlined the appointments of specialty leaders on both a global and regional level.
On the global specialty leader side, Simon Harker, currently global aviation and space leader for Marsh, will become global head of aviation, while Richard Gurney, currently global head of construction for JLT, will assume the role of global head of construction.
Nick Robson, currently global head of credit, political and security risk for JLT, will become global head of credit specialty. Evan Freely, currently global credit specialty leader for Marsh, will become Deputy global head of credit specialty, reporting to Robson.
Andrew George, currently global industry specialty leader for Marsh, will become global head of energy & power, whilst Jim Pierce, currently global head of energy, power & mining for JLT, will assume the position of chairman of global energy & power.
Mark Wood, currently global head of financial lines for JLT, will become head of financial and professional lines (FINPRO) international. Devin Beresheim, currently US FINPRO practice head for Marsh, will become head of FINPRO US and Canada.
Marcus Baker, currently global marine leader for Marsh, has been appointed global head of marine.
Karen Beldy Torborg, currently Marsh’s global private equity and mergers and acquisitions (PEMA) and infrastructure leader, has been named global head of PEMA and infrastructure.
Meanwhile, regional specialty leaders include Paul Moody, currently Marsh UK & Ireland specialty leader, who will assume the role of head of Marsh-JLT Specialty for the UK & Ireland, whilst Roy White, currently chairman of UK Specialty for Marsh, will become UK & Ireland chairman.
Paul Knowles, currently CEO of UK, Europe and South Africa for JLT, will become head of Marsh-JLT Specialty in Continental Europe.
Dominic Samengo-Turner, currently CEO of Asia for JLT, has been named head of Marsh-JLT Specialty in Asia.
Pat Donnelly, currently CEO of the US for JLT Specialty, has been appointed head of Marsh-JLT Specialty for US and Canada.
Josh Roach, currently Marsh specialty leader for Pacific, will become head of Marsh-JLT Specialty for Pacific.
Peter Foley, currently Marsh retail placement & specialty Leader in Latin America, will become head of Marsh-JLT Specialty for Latin America, whilst Gaurav Bhatnagar, currently Marsh retail placement & specialty Leader in Middle East & Africa (MEA), will become Head of Marsh-JLT Specialty in MEA.
Global specialty leaders will report to Lucy Clarke, who as previously announced, has been named president of Marsh-JLT Specialty, with JLT Group CEO Dominic Burke assuming the role of chairman of the combined specialty unit in addition to becoming vice chairman of MMC.
Regional specialty leaders will report both to Clarke and their respective regional leader.
Turning to Marsh International, Adrian Girling, currently chairman UK, Europe and South Africa for JLT, will become chairman of UK & Ireland corporate and risk management for Marsh, reporting to Chris Lay who will remain as CEO of the UK & Ireland.
Siegmund Fahrig and Ricardo Brockmann will remain as CEO of Continental Europe and CEO of Latin America, respectively.
Nick Harris, CEO of Australia and New Zealand for JLT, has been appointed CEO of Pacific for Marsh. Scott Leney, currently Marsh Pacific CEO, will become CEO for Australia, reporting to Harris.
Meanwhile, Andre Louw, currently chairman of Australia and New Zealand for JLT, will become chairman of Pacific for Marsh.
Christos Adamantiadis will continue as CEO of MEA. Peregrine Towneley, currently CEO of MEA for JLT, will become chairman of Middle East for Marsh.
Robert Makhoul, currently MMC’s country corporate officer and chairman of Middle East for Marsh, will continue as MMC country corporate officer for the Middle East.
Marsh’s David Jacob and Alan Cheah will continue in their respective capacities of Asia CEO and Asia chairman. James Addington-Smith, currently Asia specialty leader for Marsh, will become CEO of ASEAN, a sub-region of Asia, reporting to Jacob.
All international regional leaders will report to Flavio Piccolomini, president of Marsh International.
Within Marsh US and Canada, Martin South, president of Marsh US and Canada, will continue to lead the region, whilst Sarah Robson will continue as chief executive of Canada, reporting to South.
As previously announced, Dean Klisura will become president of Marsh Global Placement, with regional placement leaders continuing in their current positions reporting to Klisura and to their respective regional leader.
Commenting on the news, John Doyle, president and CEO of Marsh said: “The combination of Marsh’s and JLT’s capabilities and colleagues is an exciting opportunity to deliver greater value to clients,
“These roles are being filled by experienced and talented leaders who will have a positive impact on our business.”
Charman to lead Sompo Holdings’ overseas insurance business
John Charman has been promoted to CEO of Sompo Holdings’ overseas insurance business as the group appointed Nigel Frudd as chief executive of Sompo international.
In his new role, which takes effect from 1 April 2019, Charman will be responsible for a segment that currently represents more than 27 percent of Sompo Holdings’ adjusted profit, employing around 9,000 people in 30 countries and regions and is projected to generate more than $10bn in gross premiums by 2020.
He will also join Sompo Holdings’ new global executive committee (Global ExCo), which will be established in April 2019 to provide expertise and input on group-wide strategic decisions.
Charman has served as chairman and CEO of Sompo International since joining the company in May 2013.
Charman will remain as executive chairman of Sompo International but will relinquish the CEO role to Nigel Frudd, who will take the helm of business on 1 January 2019.
Frudd will also become a member of the Global ExCo, in addition to being appointed to the new role of senior executive vice president and chairman of overseas M&A at Sompo Holdings.
Frudd joined Sompo as a non-executive director of Canopius upon its acquisition in 2014, taking on a full-time role with Sompo Holdings as managing executive officer of global M&A in 2015, during which time he led the acquisition of Endurance and later the sale of Canopius.
He subsequently joined Sompo International in March 2017 as chief strategy officer and a member of the board of directors, whilst also retaining his group-level managing executive officer role.
Concurrently, Sompo International has expanded its board of directors with the appointment of Katsuyuki Tajiri as an executive director, effective 1 January 2019.
Recai Dalas, currently CEO & director of Sompo Japan Sigorta serving the Turkish market, will be appointed as CEO of retail and chairman of retail executive committee at Sompo International.
The commercial property and casualty executive leaders currently reporting to Charman, along with Dalas in his capacity as CEO of retail, will now report directly to Frudd.
Kengo Sakurada, group CEO of Sompo Holdings, commented: “We are excited that these strategic management changes will enable Sompo International to reach the next level of growth, with a greater presence globally in both the commercial and retail insurance industry.
“At the same time, Sompo Holdings is also strengthening our corporate governance structure in order to promote diversity and globalization. One of the key elements is forming the Global ExCo and we are very pleased that John and Nigel will be coming on board as inaugural members.”
Charman added: “I am delighted to have the opportunity to work even more closely with my Sompo Holdings colleagues in Japan and to further the substantial progress we are making toward our shared vision of increasing the contribution of the overseas business. Nigel has played a strategic role in the creation and integration of Sompo International to date and I have every confidence in his ability to lead the expanded organization as we develop a unified platform for all commercial and retail business outside of Japan.
“Also, we now will have the opportunity to make a greater impact on Sompo Holdings’ future success as members of the Global ExCo, a singular arrangement among the major Japanese insurers.”
Frudd remarked: “We now have several very talented leaders with extensive experience and skills in the retail business joining Sompo International and they will drive profitable growth as we integrate Sompo Holdings’ overseas businesses. I am pleased to be appointed to the new Global ExCo with John as it further strengthens the relationship between Sompo International and Sompo Holdings and provides a platform for proactive global co-operation.”
Hiscox names Thaker as UK CEO
London-listed carrier Hiscox has named Bob Thaker as its new UK chief executive.
Thaker succeeds Steve Langan, who moved to the USA in 2018 as Hiscox USA CEO and remains the group’s chief marketing officer.
Thaker currently serves as CEO of Hiscox’s Asian direct-to-consumer personal lines insurance business, DirectAsia.
He will relocate back to the UK and begin his new role in March 2019, when he will become responsible for an 800-strong UK team and will be based out of Birmingham. He will report to Ben Walter, CEO of Hiscox Global Retail, who is responsible for Hiscox USA, Hiscox UK, Hiscox Europe and Hiscox Special Risks.
Thaker joined Hiscox in 2010, having joined as head of strategy before going on to serve as group chief risk officer. He then spent two years as head of claims for Hiscox UK and Europe, where he served on the UK leadership team. In 2014, he relocated to Asia to become COO of DirectAsia before taking the helm of the business at the start of 2015.
Commenting on Thaker’s appointment, Walter said: “Bob is a natural champion of the customer who will lead the UK team in its next phase of growth. We will benefit from Bob’s experience navigating intensely competitive markets and developing creative partnership opportunities.”
Thaker added: “I’m delighted to be returning to Hiscox UK and honoured to lead a great team which has consistently served customers superbly and created a strong market position over many years. I know from my time with the business a few years ago that we are fortunate to enjoy fabulous support from our broker partners for which we remain incredibly grateful. I look forward to working with the team and these terrific partners to build on these great foundations in the years ahead.”
Lloyd’s syndicates partner with insurtech Parsyl on marine cargo initiative
Lloyd’s and a group of six syndicates are spearheading a new initiative with supply chain data platform Parsyl that utilises Internet of Things (IoT) technology to improve marine cargo performance.
The new initiative offers crafted risk coverage for sensitive shipments that incorporate the use of Parsyl’s IoT quality assurance and risk management solution and is designed for products that require specialist transport and storage, such as temperature-controlled foods, biological pharmaceuticals and sensitive life science and high-tech products.
By agreeing to place Parsyl’s sensors on prescribed shipments, participants may benefit from expedited settlement and reduced claims costs, tailored deductibles, risk mitigation insights based on new data.
Parsyl was founded in 2017 and was one of ten companies selected to participate in Lloyd’s new innovation accelerator, Lloyd’s Lab.
The initiative was co-created by Parsyl and market syndicates Ascot, Antares, Beazley and CNA Hardy, all of whom lead a substantial portion of the global marine cargo business that is underwritten at Lloyd’s.
The initiative also has the support of AXA XL and QBE, two of the largest marine cargo syndicates at Lloyd’s.
Trevor Maynard, head of innovation at Lloyd’s, commented: “As a market, it is imperative that we embrace new technology solutions that can lower costs and improve risk selection,
“We created Lloyd’s Lab to pursue innovative, technology driven solutions like Parsyl that can address the unique and rapidly changing demands of the Lloyd’s market, and are proud to be announcing this initiative as an outcome of the program.”
Meanwhile, Ascot CEO Andrew Brooks added: “We know that our future success and that of our clients is driven by our ability to find new ways to improve the claims process and better manage risk. By partnering with Parsyl, we’re able to greatly enhance our offering with sophisticated and predictive data analytics.”
“By combining our modern approach to supply chain data analytics with the industry expertise of Lloyd’s and our syndicate partners, we’re able to offer an unprecedented approach to risk management,”said Ben Hubbard, co-founder and CEO of Parsyl.
“Together we can usher in a new age for the marine cargo industry that is not only better for insurers and their customers, but ultimately for people around the world who depend on crucial goods that are shipped every day.”
RFIB names Urquhart as head of property, energy & construction
RFIB has appointed Duncan Urquhart as head of property, energy and construction, effective immediately.
Urquhart joins the Lloyd's (re)insurance broker from Limehouse Agencies Limited, where he served as head of distribution. Urquhart brings over 30 years’ experience, beginning his insurance career in Melbourne, Australia at Sedgwick, before holding a series of senior insurance broking positions in London and Asia, including those at Marsh and Willis Towers Watson.
Urquhart commented: “I am extremely enthused to be joining RFIB at such an interesting time in the market, as an independent broker RFIB is extremely well positioned to take advantage of the changing market conditions. The firm has a strong culture and is committed to investment in people to provide growth and exceptional service to its global clients.”
His appointment follows that of Kevin Stratton, who was named managing director of RFIB's recently restructured specialty business last week, effective 1 January 2019.
LMG think tank to assess future workforce
The London Market Group (LMG) has launched a new think tank aimed at evaluating the new challenges faced by the future London market workforce and developing recommendations in response.
In a statement, LMG CEO Clare Lebecq said the Future Workforce Think Tank will look at the key trends and technology disrupters that will impact the shape of the future workforce.
“Leveraging expertise from market colleagues who are already assessing what the future might hold and digital experts, it will also analyse how the skills required will be affected and undertake a deep dive into the impact on core London market roles – as well as looking at the effects in the medium to long term,”she added.
The work of the Future Workforce think tank will be supported by KPMG.
Lebecq said: “In 2016, we undertook research to investigate the changing skills required for London to retain its pre-eminent position in the global insurance market as technology changes the way we all work. The results highlighted the fact that digital and technology developments are a key influencer on future skills, and London was not well prepared for the changes the future will require in these areas.
“We have completed a first phase of work to assess the impact of electronic placing on broking and underwriting skills, launching the Think Tank is the next stage.”
The LMG said that it is hoping to publish a full report in Spring 2019, which will articulate what actions the London Market should take to build a workforce that is fit for the future.
Argo appoints Harris as international operations head
Argo Group has appointed Matt Harris as group head of its international operations, effective 1 January.
He takes over from Jose Hernandez, who will become international operations chair and will be responsible for leading strategic initiatives across the company.
Both Harris and Hernandez will report to Argo CEO Mark Watson.
In his new role, Harris will lead the carrier’s international insurance operations, including the United Kingdom, Europe, Asia, the Middle East and Bermuda.
He joined Argo in 2017 and was previously responsible for a large portion of Argo’s international business, including Europe, Asia and the Middle East.
Prior to that, he held a number of senior roles at AIG, including leading its South East Asia country operations, CEO of AIG Malaysia Insurance and CEO of AIG New Zealand. Earlier in his career, Harris served as chief representative for Insurance Australia Group in Mumbai, India.
Marriott data breach losses could reach $600mn: AIR
Catastrophe risk modelling firm AIR Worldwide has estimated that direct cyber incident losses emanating from the recent Marriott data breach will range between $200mn to $600mn.
AIR said that its loss estimates are based on the assumption that 500 million records were stolen, as reported by Marriott.
The firm said that the range of loss estimates reflects the uncertainty about the data that was stolen, for example while credit card data was stolen, it was encrypted; however, the encryption key itself may have been stolen as well. It said that there is also additional uncertainty, as some of these records may be duplicates.
AIR’s loss estimates are based on an analysis performed using its cyber model and are subject to uncertainty and are not based on actual policy or loss data reported by Marriott.
AIR said that the net financial impact to Marriott will be partially mitigated by the cyber insurance and other liability insurance coverage the hotel group reportedly has, which are not accounted for in these estimated losses.
The firm said that its modelled loss estimates include first- and third-party losses directly related to the security breach, including notification costs, forensics, credit monitoring, replacement of credit cards, setting up a call center, and any liability covered under an affirmative cyber policy.
However, it highlighted that they do not include any fines that may be levied upon Marriott, including potential fines for violation of the GDPR, directors’ and officers’ and other non-cyber policy related claims, reputational loss, business interruption, decrease of stock price, nor the impact of any insurance coverages that Marriott may use to recover their losses.
“AIR’s new probabilistic security breach model shows that this type of event is not unprecedented, even though an event of this magnitude hasn’t previously happened to a hotel chain,” said Scott Stransky, assistant vice president and director of emerging risk modelling at AIR Worldwide.
“In fact, the largest recorded breach for a US -based hotel chain prior to this event was less than 1/50 the size in terms of the number of records stolen. There are more than 300 simulated events in our model that cause higher losses for US based hotels.”
In a statement on 30 November, Marriott revealed that on 8 September, it had discovered unauthorised access to its Starwood brand guest reservation database. During the investigation that followed, it learned that there had been unauthorised access to the Starwood network since 2014.
The hotel group believes that the database contains information on up to approximately 500 million guests. For around 327 million of affected guests, the information includes some combination of name, mailing address, phone number, email address, passport number, Starwood preferred guest account information, date of birth, gender, arrival and departure information, reservation date, and communication preferences.
Marriott also cautioned that, for some of these accounts, the information also included payment card numbers and payment card expiration dates. Whilst the payment card numbers were double-encrypted, Marriott said that it was unable to rule out the possibility that both the components required to decrypt them were stolen by the hackers.
Maher joins Axis’ London cyber team
Axis has appointed Markel’s Andrew Maher as a senior cyber underwriter.
In his new role, Maher will be based in London and report to Dan Trueman, Axis’ global head of cyber and technology.
He moves over from Markel, where he spent two years as a senior cyber underwriter. He began his career at Beazley, where he held several underwriting roles, including working within the carrier’s information security and Beazley Breach Response teams.
Commenting on his appointment, Trueman said: “Andy is a recognized expert in the cyber insurance market and has a strong reputation and key relationships with both brokers and clients,
“He is an important addition to our newly expanded global cyber and technology team and will help us to further enhance our reputation as one of the leading experts on cyber risk mitigation.”
Last month, Axis announced the creation of a unified global cyber and technology unit in a bid to leverage the full scope of its cyber and technology insurance capabilities, underwriting expertise and claims services.
As part of the restructure, Axis is merging its US cyber, technology, media and miscellaneous professional liability businesses into a single unified global cyber and technology unit, led by Trueman.