On 23 January, the Future Professional Indemnity Forum of the IUA invited three industry experts to discuss the practicalities of operating in a hard market.
On 23 January, the Future Professional Indemnity Forum of the IUA invited three industry experts to discuss the practicalities of operating in a hard market. John Taylor - Head of Specialty at Antares, Mike Perry - Partner at JLT and Phil Foley - Director of Foley Specialities answered an array of questions in front of an audience of future leaders in the professional indemnity market.
Ed Anderson, who welcomed the audience with a recap of past hard markets, and Charlotte Gregory, who moderated the panel, provide a round-up of some key take away points.
The psychology of operating in a hard market represents a major change for junior underwriters, particularly as many will have only operated in a soft market to date. It is rarely in any underwriters’ DNA to walk away from a risk, but in hard markets the big picture needs to be seen. This approach can be difficult when ‘in the trenches’ writing risk by risk, but underwriters should not lose sight of wider underwriting strategy.
Detailed portfolio reviews should be undertaken with management to ensure a clear approach. The continued growth of MI since the last hard market has the potential to significantly impact how this anticipated hard market will play out. The market may only see rises in certain areas; even within lines of business. Historically, rate changes would be applied very bluntly across the board. Brokers and policyholders will expect more detail and data to justify proposed changes to terms.
In past traditional cycles, hard markets have been much shorter than soft markets. There is much to be said for ‘going ugly early’.
Underwriting and broking expertise increases in hard markets. Underwriters can question things more and not be afraid to, for fear a broker might show the risk elsewhere. Hard markets aren’t just about price and underwriters need the skills to look at other factors, especially the scope of cover provided, the removal of extensions, levels of deductibles and limits. More flexibility is required and brokers too need to sharpen their skills. Hard markets force them to work harder with clients to present the risk most effectively.
Early and effective communication is key. Risks will take longer to place and brokers need the earliest possible communication so that they can help their clients. It greatly assists brokers to understand the reasons behind underwriting decisions and underwriters shouldn’t be afraid to give them. If rates are unsustainable then they should not be shy about explaining that: to remain in business, at some point an underwriting profit is necessary.
Underwriters in a hard market need to be confident, consistent and credible. Mentoring can really help. Maintaining relationships with brokers and their clients is critical and communication again lies at the heart of that.
This article is the second in a series to help firms take a practical approach to complying with the ‘cross-cutting rules’ within the new ‘Consumer Duty’ (CD) framework. The article summarises what it seems the Financial Conduct Authority (FCA) is seeking to achieve from the applicable rules (section 2 below) and potential complications arising from legal considerations (section 3).
Claims arising from interest-only mortgages have been farmed in volume. Many such claims to date have sought to drive a narrative that interest-only mortgages are an inherently toxic product and brokers were negligent simply for suggesting them. Taylor is a helpful recalibration, focussing instead on what the monies raised by the mortgage product were being used for and whether the client understood the inherent risks.
This article is the first in a series aimed to help firms get to grips on a practical basis with the ‘cross-cutting rules’ within the new ‘Consumer Duty’ framework.
Browne Jacobson’s corporate finance lawyers have advised leading private equity investor, Rcapital Partners LLP (Rcapital) on its majority stake acquisition of managing general agents (MGAs), UK General Insurance Ltd (UKG) and Precision Partnership Limited (PPL) alongside Montague Investment Group LLP who are taking a minority stake.
Bridget Tatham, a specialist defendant insurance lawyer at Browne Jacobson has been honoured at this year’s Birmingham Black Lawyer (BBL) Excellence Awards, having been named Lawyer of the Year. Bridget was also shortlisted for BBL’s Diversity Champion 2022.
On 10 June 2022 the Court of Appeal upheld an anti-suit injunction granted in favour of insurers by Mr Justice Jacobs in September 2021 restraining proceedings from being brought in Canada and enforcing the exclusive English jurisdiction clause in excess liability policies.
Browne Jacobson has announced its financial results for 2021-22 with revenues up 11 per cent year-on-year to £94m, up from £85m. It marks the 13th consecutive year of growth with a 59 per cent increase in revenues since 2015 (£59m).
As the Grenfell Inquiry continues, how have the Phase 1 recommendations changed the fire safety and building safety landscape?
Here we look at the potential concerns the legislation could have for lenders and the impact it may have on documenting secured funding agreements.
As has been widely reported this week, some 3,000 UK workers are taking part in a six month trial to assess the viability of a four-day working week without any reduction in their normal pay.
A lawyer and a HR business partner from law firm Browne Jacobson have been announced as winners of the WeAreTheCity’s Rising Stars Awards 2022.
A brief introduction for clients for the Damages Claims Portal.
In anticipation of the adoption of the Building Safety Bill, our specialist compliance and regulatory team will give an overview of the measures proposed in the Bill.
With the fast pace of legal and regulatory changes, Browne Jacobson is launching its ‘In-house for intermediaries’ service for brokers and MGAs.
From 6 April 2022, right to work checks on all migrant or settled prospective employees must be online and checks on British or Irish nationals will be manual (free) or digital (charged for).
The Presidents of the Employment Tribunals England and Wales and Scotland have issued a new road map for 2022-23, providing an update on the resourcing challenges faced by employment tribunals and the steps put in place to address these.
This webinar looks at the three key themes in the decision, and is aimed at sports & social clubs (including safeguarding officers).
Insurance law firm Browne Jacobson has won the Inclusion & Diversity Award at the National Insurance Awards 2022. The National Insurance Awards are judged by an independent panel of experts and celebrate excellence in the sector by highlighting the very best in general insurance provision and management.
In Nissan v Passi, the High Court recently considered the issue of an employee retaining confidential documents belonging to his former employer in the context of the employer’s application for an injunction seeking the return of such documents from the employee.
The Government’s much-publicised ‘levelling-up’ programme brings with it a number of changes and challenges for property professionals which, without careful preparation, could see a steep rise in allegations and claims for professional negligence.
Browne Jacobson’s Manchester based banking and private equity lawyers have advised OakNorth Bank on its loan facility to Apprentify Limited, a leading provider of digital marketing and tech apprenticeships for the North.
A recent Court of Appeal judgment has provided some useful and much-needed clarity on the interpretation and application of aggregation clauses in insurance contracts.
As a developing area, key stakeholders in this space such as insurers, and technology and software developers looking to become ASDEs or NUIC operators, should keep a keen eye on whether the Government proceeds with introducing new legislation in line with the report’s recommendations.
In our review of key trends from 2021 and key trends to watch for 2022, we share insights that will enable you to navigate challenges, and make the most of the opportunities across various sectors and lines of business.
National law firm Browne Jacobson has been named again as one of EM Lawshare’s (EMLS) legal partners after successfully bidding to support them in their core legal work.
Browne Jacobson’s national corporate tech lawyers have advised specialist insurtech business Laka on its $12m series A investment round. The cash injection will allow Laka to expand its operations across Europe and support its new retail partners based in Belgium, France and Germany.
The High Court has considered the application of the Human Right Act to local authorities in cases where they are carrying out their statutory child protection functions after dismissing the latest ‘failure to remove’ claim against two local authorities.
Following the Supreme Court decision in CN & GN -v- Poole Borough Council  and other subsequent cases, it is now established law that the mere fact that various steps are taken by local authorities in the discharge of its child protection functions is not enough to give rise to an assumption of responsibility.
Browne Jacobson’s specialist government and infrastructure team have advised Canford Renewable Energy Ltd on the delivery of its Dorset Green H2 facility.
Browne Jacobson partners Mark Blois and Tim Johnson have been named amongst some of the country’s most innovative and creative lawyers after featuring in The Lawyer’s ‘Hot 100’ listing for 2022.
Payment systems across Europe are under increased pressure to mitigate fraud risks and defend against persistent attacks from enablers using ever more sophisticated and malicious viruses and malware.
The Financial Conduct Authority has highlighted that non-financial misconduct, which of itself constitutes a breach of principles and rules, has the potential to be an indicator or driver of wider conduct risk – behaviour within firms influences the behaviour of those firms towards customers and other third parties.
COP 26 is the global United Nations climate change Summit, which will take place in Scotland in November. It comes at a time when climate change, and how to reduce greenhouse gas emissions, is at the top of the political agenda.
This report focuses on key issues in the financial services and insurance markets such as environmental, social and governance sustainability and responsibility.
Catch up with our Broker Insight on-demand video. With many intermediaries looking to buy, sell or seek external investment, we explored the elements of a successful M&A transaction.
When the EU and UK introduced more rigorous financial regulation in the 2010s, they addressed potential risk at banks before turning to insurance. Rule changes following Brexit may occur in the opposite order as the UK is mulling ways to relax the prudential framework for insurers established by the Solvency II Directive.
The ‘Everyone’s Invited’ movement has over 9,000 testimonies on its website and, whilst it has recently taken the step to anonymise everything on the platform, a number of schools have been named.