thejournal.cii.co.

uk
August – September 2025

ABOVE AND
BEYOND
Jane Kielty on ambition, inclusion
and taking the profession
to the next level

Unrest assured Trust on track Ecosystem alert

As civil unrest escalates, is the CII collaboration shaping Rising ocean risks
insurance market ready? better consumer outcomes challenge insurers

01 Cover_AUG SEP 25_Cll The Journal.indd 1 13/08/2025 15:25

 Events
Save CII

the date
Hear from and engage with industry leaders,
Registrations
opening soon gain important insights on emerging trends and
network with other insurance professionals

Wednesday 1 October Central London

cii.co.uk/future
CII.Sept25_002.indd 2 11/08/2025 16:26
 AUGUST - SEPTEMBER 2025

C O N T E N TS
NEWS & OPINION
5 President’s View
Nicola Stacey on how the CII is
supporting members
20 32–34 Legal
Contractor cover: legal traps and
how to avoid them

35 Business Planning
Shaping the CII’s future: have your
6–13 News say on 2026
UK and international news from
the CII 36-37 Professional Standards
Progress update on the Road to
50 Opinion Consumer Trust
Why small wins matter in the
day-to-day
23 38 Commonwealth
Meet the team behind the
Commonwealth Insurance Forum
FEATURES
46–47 EDI

30
14–16 Interview Why gender balance matters to
Aon CEO Jane Kielty on her vision the future of insurance
for the business

17–19 Risk SECTOR SPECIAL

Catastrophic risk: how prepared
are insurers? 39 Claims Community
A message from the CII Claims 3
20–22 Health Community chair
Insurer role in helping people
return to work 40–41 Claims: Subsidence

23–25 Climate Change

Why marine insurers are critical in
35 How insurers are preparing for a
rise in subsidence claims

protecting our oceans 42–43 Claims: Fraud

Can AI help crack down on fraud?

44
26–27 Governance
CII joins the Insurance and
Financial Services APPG STUDY ROOM
28 Consumer 44–45 Professional
Public Trust Index results revealed Standards
Meet the Professional Standards

46
30–31 Professional Committee
Development
How the Professional Map can 49 Quiz
support your growth Q&A to test your knowledge

CONTACT US
The
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official
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magazineofof Chief Sian Fisher
Matthew Hill
CEO: executive:
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expressedby bycontributors
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thejournal.cii.co.uk / The Journal / August - September 2025

03 Contents_AUG SEP 25_Cll The Journal.indd 3 13/08/2025 14:10

 Annual
Annual
General
General
Meeting
We
We are
are
delighted
delighted to to

Meeting
2025
announce
announce that
the CII AGM
the
that
AGM2025

2021
2021 willplace
will take take as
place virtually
a hybrid meeting
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on3pm (BST)
Wednesday
on Wednesday
15 October.
30 June

The CII will

Following theonce again
success ofbe
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CII’s a hybrid
AGM this virtual
first fully year, welcoming
AGM in 2020, members
which online
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from matterthewhere in the
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30 June 2021. at the event, ensuring they
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October!
with joining
instructions from Lumi, our AGM
service provider.
We look forward to welcoming you
virtually once again in June!

www.cii.co.uk/agm

02_AGM ADVERT_April-May
CII.Sept25_004.indd 4 2021_Cll The Journal.indd 2 16/04/2021 16:27
11/08/2025 10:13
 PRESIDENT’S OPINION

EMPOWERING
THE PROFESSION
Nicola Stacey reflects on the recent CII Networking Conference,
where collaboration, learning and future plans took centre stage

I
am writing my latest LIFETIME LEARNING
article for The Journal fresh The CII is not just about passing
from attending the 2025 exams – it’s about supporting
Networking Conference, members throughout a lifetime of
held at Cameron House learning. So, it was encouraging to
on the banks of Loch hear about the outcome-focused
Lomond. Firstly – what a approach to career progression, and
spectacular venue – but also, what the simplification of the learning
an incredible opportunity to learn, framework through Professional
engage and connect. Pathways (formerly CII Futures).
It was a real joy to interact with Support for learners will also
so many representatives from local increase, with new content to help 5
institutes, community boards and, build commercial acumen and
for the first time, representatives behavioural skills, such as rapport-
from the Young Professionals Group. building with clients. Practice-
These volunteers deliver a packed and based research projects will also
valuable calendar of events every year play a key role in developing well-
for their peers, and it was inspiring to rounded professionals.
hear them share both their challenges You can also be assured that
and best practices. It was a privilege the CII remains committed to
to open the conference and personally improving the digital experience,
thank them for their dedicated and both in terms of technology and
tireless efforts in raising professional learning. Students will be better
standards across our profession. supported with tools that allow
The conference began with an them to connect with peers online
update from the CEO, who shared and ask tutors questions directly.
the work he’s been leading during
the past year. This included an open
BY UPHOLDING THE Finally, there is strong focus on
international strategy, with new
and honest Q&A session, where he
addressed some of the key challenges
HIGHEST PROFESSIONAL joint ventures being developed
to help spread professionalism
facing our profession – from climate
change to the impact of artificial
STANDARDS, WE CAN around the world.
So, I would encourage anyone
intelligence on junior roles.
We also heard about some of the
STRENGTHEN BOTH reading this to take a moment to
reflect on all that the CII offers
fantastic thought leadership activity
taking place, including roundtable
CONSUMER AND – and to consider the benefits
that continuous learning can
discussions on consumer duty and REGULATORY CONFIDENCE bring. By upholding the highest
vulnerability. There was significant professional standards, we can
IN OUR PROFESSION
ILLUSTRATION: MATTHEW BRAZIER

focus on attracting more young strengthen both consumer

people into the profession, along with and regulatory confidence in
plans to expand the New Generation our profession. ●
programme to include Personal
Finance Society members. Nicola Stacey is president of the CII

thejournal.cii.co.uk / The Journal / August - September 2025

05 President_AUG SEP 25_Cll The Journal.indd 5 13/08/2025 14:11

 NEWS

EVENTS

CII SHAPING THE FUTURE OF INSURANCE

CONFERENCE: SPEAKERS ANNOUNCED
Professor Richard Susskind OBE, Paul career planning and progression, with
O’Brien and Penny Jones are among a session on the CII Professional Map
those announced to speak at the 2025 led by Adam Harper, the CII’s director
CII Shaping the Future of Insurance of strategy, advocacy and professional
conference on 1 October in London. standards.
In a day exploring how artificial Registration for the conference is now
intelligence (AI) is reshaping the sector, open to both CII members and non-
keynote speaker Professor Susskind will members, who can expect cutting-edge
share his thoughts on ‘AI and the future keynotes, real-world AI applications and
of the insurance profession’. O’Brien honest conversations with some of the
from Davies Group will examine how AI profession’s most forward-thinking minds,
is improving claims – boosting speed, The conference will look at how AI is including leaders from Clear Group and
service and resolution – while Jones, changing day-to-day roles, future careers the CII’s own Community Board and New
responsible AI lead at Zurich, will speak and the wider profession – from ethics Generation programme.
on smarter underwriting and sharper and regulation to real-world applications.
decisions. Other sessions will cover the Sessions, panels and speakers will explore → For more information, visit: cii.co.uk/
essentials of AI regulation and what both the potential of AI and its human cii-events/shaping-the-future-of-
6 insurance professionals need to know. impact. Delegates can also learn about insurance

ANNUAL GENERAL MEETING

CHARTERED
INSURANCE
INSTITUTE
ANNOUNCES
2025 AGM
The CII has announced that its
annual general meeting (AGM) will
take place on 15 October 2025.
The CII will once again be
holding a hybrid AGM this year,
welcoming members both online
and in-person.
Members will receive correspondence
with further information and joining
instructions from the AGM service provider,
Civica in September.
SHUTTERSTOCK

→ Further information will also be available at:

www.cii.co.uk/agm

thejournal.cii.co.uk / The Journal / August - September 2025

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 NEWS

PROFESSIONAL DEVELOPMENT

FOUR IN FIVE INSURANCE

PROFESSIONALS OPPOSE FCA
CPD PROPOSAL
The CII has found significant opposition to said: “We believe that while the current
the Financial Conduct Authority’s (FCA) requirement leaves much to be desired,
proposal to remove the requirement for removing it without putting something
those working in the insurance profession better in its place sends the message
to undertake a minimum of 15 hours that personal development and skills in
training and development per annum. insurance don’t matter. We believe the
The CII asked its members for their FCA’s proposal runs counter not only to any
views following the FCA’s consultation sensible analysis of the key role of skills in
into simplifying insurance rules [CP25/12]. driving growth and competitiveness, but
The poll found that 80% of 582 respondents also to the core values of the insurance
believed the “public perception of the profession. Without a better alternative in
insurance profession will suffer” if the FCA place, it is our concern that this change
removes its 15-hour requirement. A similar would create a harmful skills gap, affecting
proportion (83%) agreed or strongly agreed the public, consumers and professionalism
that “undertaking continuing professional across our sector.” CII members strongly support maintenance
development (CPD) is essential for me to The CII has previously stated that its own of higher standards.
be viewed as a professional by my clients CPD requirement will remain, irrespective
or customers”. of the outcome of the FCA’s consultation. → To read the full CII response to the FCA’s 7
Matthew Hill, CEO of the CII group, This snapshot of member views shows that consultation, visit: bit.ly/4foxTps

APPOINTMENTS

EDWARD GRANT APPOINTED DISABILITY

AND ACCESS AMBASSADOR FOR INSURANCE
The Minister for Social Security and The ambassadors drive improvements people, helping to ensure businesses are
Disability, the Rt Hon Sir Stephen Timm in the accessibility and quality of services doing all they can to support disabled
MP, has announced the appointment and facilities in their sector for disabled customers. The ambassador roles
of nine new Disability and Access are voluntary posts, undertaken for a
Ambassadors to help ensure that maximum of three years and supported
businesses are doing all they can to by the Disability Unit (part of the Office
support their disabled customers for Equality and Opportunity).
and employees. Grant said: “I’m deeply honoured to
The CII is delighted that Eddie take up the role of Disability and Access
Grant, a longstanding member, will be Ambassador for Insurance – a sector
representing the insurance sector. that empowers people to navigate
Grant is a non-executive director of life’s uncertainties with confidence.
the Personal Finance Society, a past Both personally and professionally,
president and its longest-serving non- I’m acutely aware of the barriers many
executive board member. He is also a disabled people face. That awareness
board member of the European Financial drives my unwavering commitment
Planning Association and vice-president to championing meaningful, lasting
of the Insurance Institute of London. change across our profession.”

thejournal.cii.co.uk / The Journal / August - September 2025

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 NEWS

CHARTERED

INTRODUCING FIVE NEWLY

CHARTERED CORPORATE FIRMS
Five insurance and financial planning Nicola Stacey, president of the CII,
firms have achieved CII Chartered said: “I am honoured to award Chartered
status in the second quarter of 2025. status to these five firms and welcome
Chartered status is a symbol of technical them into our prestigious professional
competence and signifies a firm’s public community. They have joined us at a time
commitment to professional standards. where we are reflecting on our rules to
In receiving Chartered status, firms ensure Chartered status is not just a
declare their adherence to the CII mark of compliance but a strategic
Code of Ethics and commitment to asset for firms to enhance growth,
supporting initiatives that build public differentiate themselves and gain
trust, ongoing people development, recognition in a changing market.
a customer-centric approach and the In achieving this designation, they have
development of the profession. set themselves apart from other firms in
Firms that gained Chartered status in the eyes of their customers and clients,
April-June 2025 are: The Islands’ Insurance and we look forward to celebrating their
Brokers, Hepburns Insurance Brokers, achievements as they demonstrate
M.J. Touzel Insurance Brokers, Morgan professional excellence over the years
8 Williams & Co and M4 Financial Group. to come.”

R E G U L AT I O N

CII SETS OUT VISION FOR SHARING OF

VULNERABILITY DATA
The CII has outlined a vision for In a new report summarising a recent gap between the work currently being
transforming how vulnerability data roundtable held in May, titled Unlocking done on vulnerability within the sector,
is shared across the insurance and outcomes: Data sharing across the and tangible benefits to customers
personal finance distribution chain to distribution chain, the professional body who are experiencing vulnerability.
meet the Financial Conduct Authority’s calls for a shift from compliance-focused Data sharing was raised as a key
(FCA) requirements. approaches to outcome-driven data component in bridging this gap and
sharing, recognising the need for “common explored further at the roundtable,
standards and an ecosystem that promotes which consisted of participants from
sharing data to create customer value”. Allianz, Association of Financial Mutuals,
The approach represents a shift from AXA, Claims Guardians, MorganAsh,
penalties and incentives, demonstrating FWD and RSA Group, among others.
how firms can build stronger customer Matthew Hill, CEO of the CII group,
relationships and commercial value said: “Sharing vulnerability data across
through providing a more personalised firms has the potential to substantially
service, reducing the time and emotional improve the experience of customers in
distress associated with repeatedly vulnerable circumstances. We're making
disclosing vulnerable circumstances. this report available in an effort to drive
SHUTTERSTOCK

In its Managing Vulnerability in the vulnerability conversation forward and

Insurance Roundtable Summary report implement action that meets regulatory
published in April, the CII identified a requirements and customer needs.”

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 NEWS

INSURANCE MUSEUM

MARK HUXLEY SET

TO JOIN INSURANCE
MUSEUM AS TRUSTEE
M AT T H E W H I L L , C E O
The Insurance Museum (IM) is delighted to announce its intention
to welcome Mark Huxley, past master of the Worshipful Company
of Entrepreneurs, to its board of trustees, subject to formal
approval. Huxley brings a wealth of experience and a deep
BUSINESS
commitment to the insurance sector’s heritage, aligning perfectly
with the museum’s vision.
PLANNING
“We’re thrilled at the prospect of Mark joining us,” said Reg We are now more than halfway through 2025 and I am pleased
Brown, chairman of the IM. “His insight and passion for the sector to report that we are making good progress on the priorities in
will be a tremendous asset.” our business plan.
Commenting on the announcement, Huxley said: “I’ve long For example, we have completed much of the scoping
admired the museum’s mission to educate and inspire future work for our planned transformation of our learning and
generations of young talent to join the industry through telling qualifications offering, now known as ‘Professional Pathways’
the story of insurance. I am passionate about this too and look (previously referred to as ‘CII Futures’). We are currently taking
forward to playing a part in its continued development.” stock of the findings to determine next steps and will be able to
Formalities are expected to conclude shortly. share more later this autumn.
We have also welcomed significant feedback on our plans
→ To support the IM or learn more, visit insurance.museum or to evolve our requirements for awarding Corporate Chartered
follow the IM on LinkedIn. status. We are acutely aware of the need to balance our ambition 9
to build a professional movement and create greater strategic
value for firms, while recognising the investments that 700 firms
FIRE have already made to set themselves apart. We’re beginning
an assessment phase with about 50 firms to test our current
WOODGATE & CLARK thinking, and we continue to anticipate that we will transition to
our new approach during 2026.
PUTS OUT THATCHED In addition, I have previously spoken about our strategic
theme of excellent member experience. We want all our
ROOF FIRE WARNING members to be proud of the role they play in supporting
Woodgate & Clark, one of the UK’s leading loss adjusters with societal good and be able to shout it from the rooftops.
specialist expertise in heritage, is urging the insurance market We learned a lot from those who attended our Network
to be vigilant for thatched roof fires. Conference in Scotland in July and we’re now finalising
After a long period of dry, hot days, a fully dry thatch a new membership offering that I believe will be much more
is more likely to catch fire from small sparks. To mitigate inspirational. Again, we’ll have more to say later this year.
this risk, Woodgate & Clark would like to see homeowners There’s not enough space in this column to summarise
encouraged to dampen their roof if they can so that it isn’t progress on our other priorities, so I’ll invite you to also listen
bone dry and to consider specialist fire-retardant treatment. to The Journal Podcast where I provide a broader overview.
About 60,000 of the UK’s housing stock has thatched roofs That said, we’re now beginning to plan our business activities
and 75% of these are listed buildings. for 2026 and we would value your input. In this volume of
There are between 50 and The Journal, we invite you to complete a survey that will inform
80 serious fires each year our prioritisation exercise for next year and beyond. Please
at thatched properties. In do take this opportunity to shape our thinking. I believe it is
PORTRAIT ILLUSTRATION: MATTHEW BRAZIER

addition, fireworks and other fundamentally important that we are aligned on how we can
external sources contribute achieve our shared mission of building and maintaining trust
to 18% of thatched roof fires. in insurance and financial planning. The survey only takes a
Historic England carried few minutes to complete and I thank you in anticipation of
out a three-year research your engagement.
programme and offers
guidance on reducing risk.

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 I N T E R N AT I O N A L N E W S

DUBAI

WNS RECOGNISED WITH

CII ACCREDITATION FOR
E-LEARNING PLATFORM
Representatives of WNS Global The WNS Insurance Study
Services visited the CII offices in Repository e-learning platform covers
London in July. general insurance, life insurance
DUBAI
CII accreditation provides formal and the London Market. The CII has
recognition of high-quality learning, worked with WNS since 2010 – both
offering independent validation of a in the UK through its accreditation
CII MIDDLE programme’s transparency, quality
and professional development value.
team and via the Middle East office in
Dubai – to support CII membership
EAST TEAM and qualifications.
Victor Mascarenhas, Sheetal Iyer
WINS GAIP and Sunil Wadhwani visited the CII,
where Holly Porter, executive director
INSURETEK of markets and opportunities, and Gill
White, executive director of member

10 AWARD engagement and learning, presented

Mascarenhas, corporate vice
The CII’s Middle East office team was thrilled to president of operations (pictured left)
win the Educational & Training Initiative of the with the CII accreditation certificate
Year category at the recent Global Association for WNS’ Insurance Study Repository.
of Insurtech Professionals (GAIP) InsureTek
Middle East Golden Shield Excellence Awards,
OMAN
held in Dubai.
GAIP is a non-profit international
organisation, headquartered at the Dubai
International Financial Centre, with chapters
GOODWILL
planned for establishment worldwide.
It aims to foster collaboration, innovation AMBASSADOR
and knowledge exchange within the global
Insurtech profession. FOR OMAN
CII regional director, Gaenor Jones, along
with corporate development manager, Gary VISITS CII
Burns (pictured) collected the award on the
night from the organisation’s founder, Dr Aftab DUBAI OFFICE
Hasan. Jones commented: “Recognition on this
scale reaffirms the success of our collaborative Adil H Al Lawati, CII Goodwill Ambassador
work with stakeholders, partners and regulators for Oman and Group and Oman CEO of RMS
in the region. We are thrilled to receive praise Insurance Brokers, recently visited the CII’s
from such a prestigious entity that is driving Dubai office, where he was presented with a
best practice in the insurtech market. certificate of appreciation by Irina Ginns, CII
“It was also really encouraging to see regional operations support in the Middle East
that several of the other award winners (pictured right).
were corporates working closely with the Goodwill ambassadors volunteer their time to
CII, ensuring their employees attain CII support the CII’s international team, promoting
qualifications and follow our CPD pathways.” qualifications, professional standards and
helping to build public trust in insurance.

thejournal.cii.co.uk / The Journal / August - September 2025

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 I N T E R N AT I O N A L N E W S

CHINA

CHINA LIFE
INSURANCE
RECOGNISED l-r: Var Vichea,
Dr. Hor
Sovathana,

AS CII Kenny Siu, H.E.

Bou Chanphirou,

INTERNATIONAL
Thomas Yip,
Touch Mengleng

PROFESSIONAL CAMBODIA

PARTNER FIRM CII HONG KONG

CII Hong Kong was honoured to attend and
formally present the CII’s International Professional
VISIT TO
Partner Firm recognition to Hu Qun, vice-
president of China Life and general manager of the
CAMBODIA
company’s Hong Kong branch. The CII’s regional director for the Asia Pacific
The presentation took place during the official region, Kenny Siu, recently paid a courtesy
‘ENRICH’ event held at the China Life Centre in visit to Cambodia, where he met with the
Hung Hom. Developed in collaboration with a management team of the Insurance Regulator
range of partners, ENRICH aims to offer innovative of Cambodia, led by H.E. Bou Chanphirou. 11
and premium experiences to customers, with The meeting provided an opportunity
a focus on five core areas: retirement, health, to introduce the CII’s Professional Map
wealth, education and lifestyle. framework and to gain insights from H.E. Bou
l-r: Kenny Siu, Thomas Yip,
on talent trends and professional development
Elves Leung within Cambodia’s insurance market.

HONG KONG

FIRE MARK AUGMENTED

REALITY APP LAUNCHED
CII Hong Kong has partnered with Hong Kong
Hu Qun and Kenny Siu Shue Yan University to develop the InsureTech
Fire Mark AR Explorer, an augmented reality
mobile application.
The app allows users to overlay virtual Fire Marks
onto real-world backgrounds and take photos with
them, encouraging engagement and exploration.
Designed to promote greater understanding
of the historical development of insurance, the
app aims to expand its reach and engage a wider
audience – particularly younger generations.
This initiative marks one of the first innovative
uses of mixed-reality technology in Hong Kong to
Alpha Ho, Terrie Lau and Kenny Siu support insurance education through the cultural
significance of Fire Marks.

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 REGIONAL NEWS

HOW TO AVOID CLAIMS- THE LAW OF TORT STORYTELLING

9 10 11
RELATED COMPLAINTS → 12pm – 1pm FOR BUSINESS
→ 12pm – 1pm Insurance Institute → 12pm – 1pm
EVENTS

Insurance Institute of of Sheffield Insurance Institute

Bedford & Milton Keynes www.cii.co.uk/ of York
SEPTEMBER www.cii.co.uk/bedford SEPTEMBER sheffield SEPTEMBER www.cii.co.uk/york

CARDIFF

FROM YOUNG ACHIEVER TO INDUSTRY

LEADER: A HISTORIC DOUBLE FOR CII CARDIFF
The Insurance Institute of Cardiff is Young Achiever Award and earned a place
celebrating one of its own this year, as at Gallagher’s prestigious Presidents Club
Craig Winter receives the CII Professional event in Chicago, recognising the top 1% of
Excellence Award for 2025. producers globally.
Winter began his insurance career in This year, his enduring dedication was
1999, spending 10 years in personal lines recognised once again, as he received
before moving into commercial insurance – Cardiff CII’s Professional Excellence Award
a shift that marked the beginning of a new – a testament to the positive impact he
chapter. In 2014, he joined Gallagher, where continues to make at Gallagher and across
he now successfully leads the Wales-based the wider insurance profession.
new business team for small to medium- Alisha Edwards, president of Cardiff CII,
sized enterprises (SMEs). said: “Craig’s story is a perfect example of
He is known for his commitment to long-term dedication and career growth.
nurturing talent, mentoring team members He has become the first person to win
12 into managerial roles and fostering a culture a Young Achiever accolade, continue
of growth, opportunity and inclusion. His developing his career and then this year
passion for people development led him to win the Professional Excellence Award. His
create the Gallagher Wales Development journey highlights his commitment to his
Centre – a pioneering initiative focused on own career and to inspiring others. Craig
developing future leaders and building a deserves recognition for his success.”
strong pipeline for succession planning.
Winter’s career has been marked by → To find out more, visit:
excellence. In 2016, he won Cardiff CII’s www.cii.co.uk/cardiff

BRISTOL

PRESIDENT’S RECEPTION AWAITS

BRISTOL STAKEHOLDERS
The Insurance Institute of Bristol will “We’re delighted to be returning to the keeping the same format this year and
host its 2025 President’s Reception at the Observatory to thank our guests for their we’ll also be taking the opportunity to
city’s Clifton Observatory on Thursday ongoing support. It’s vital that the Bristol launch the Insurance Institute of Bristol
25 September. Institute continues to develop and improve Awards 2026, to raise awareness and
Following a successful reboot in 2024, the support we offer members, and we can encourage attendees to get involved.
the event will bring together leaders and do that best with the help and backing of We’re looking forward to enjoying
senior figures from the local insurance the region’s leaders and influencers. everyone’s company again in September.”
and financial services professions for an “Last year’s event was a great example
evening of relaxed networking at one of of successful networking – a bit of shop → For more information on the
Bristol’s most iconic venues. talk and plenty of catching up with Insurance Institute of Bristol, visit
Institute president Nigel Taylor said: laughter, stories and good food. We’re www.cii.co.uk/bristol.

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 REGIONAL NEWS

REINSURANCE – AN OVERVIEW FESTIVAL RISK MANAGEMENT VESPER HILL PRESENTS:

15 16 16
→ 12pm – 1pm CONFERENCE INUNDATED
Institute of Cheltenham & → 9am – 6pm → 5.30pm – 7pm
Gloucester Institute of Ipswich, Suffolk Insurance Institute
www.cii.co.uk/ & North Essex of Leeds
SEPTEMBER cheltenham-gloucester SEPTEMBER www.cii.co.uk/ipswich SEPTEMBER www.cii.co.uk/leeds

CHELMSFORD AND SOUTH ESSEX

APPRENTICES ARE ONBOARD IN

CHELMSFORD AND SOUTH ESSEX
The Insurance Institute will support their apprenticeship journey charity partner this year.
of Chelmsford and South with their employer, SEIB. “When their council placements are
Essex has launched an What Barnes and Baker learn from complete, they will be able to use their
onboarding programme for two local the council will contribute to their learning to organise and manage an event
young professionals, Teddy Barnes and off-the-job learning – a key part of the of their choosing, supported by council
Howard Baker. apprenticeship programme. members. The scheme is designed not
The idea grew from a conversation Row said: “Teddy and Howard’s first only to provide insight into what our
between institute president Aza Row and placement is with young professionals local council does, but also to equip the
CII career and talent lead, Laura Wharfe. leader Sam Saunders and in the next 10 apprentices with key professional skills
The purpose of the programme is to months they’ll spend time with Simon and networking opportunities.”
give new professionals an insight into the Brittain on career fairs, Caroline Martin in
work of a local council, exposing them to education and finally Tom Hill, our charity → To find out more, visit:
a range of roles and areas of focus that secretary, working with CLAPA, our www.cii.co.uk/chelmsford 13

BOURNEMOUTH

BOURNEMOUTH SETS
SAIL FOR LATE SUMMER
TROPICAL NETWORKING
The Insurance Institute of Institute president Jana Langdown
Bournemouth has pushed the said: “We have tried to think creatively
boat out for its latest social and for our social events – how can we
networking event – a tropical engage with early career individuals,
party cruise along the stunning more of our members and even
Jurassic coast. potential new members and we’ve had
The party begins on Friday a great response to the boat party.
12 September, departing from “My chosen charity Amelia’s Rainbow
Poole Quay with the promise provides grants for children with serious,
of the “best Dorset scenery chronic, life-limiting and terminal
combined with Caribbean flair”. conditions in Dorset, so as we cruise
Guests are encouraged to past Brownsea Island, Millionaire’s Row
embrace the “tropical summer at Sandbanks and the harbour’s hidden
vibes” dress code and throw gems, we’ll be in amazing company and
some shapes to the live doing our bit for a fantastic cause.”
onboard DJ – all in the name
of a good cause, the charity → To find out more, visit:
Amelia’s Rainbow. www.cii.co.uk/bournemouth

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 I N T E R V I E W – J A N E K I E LT Y

NEW
HEIGHTS
Jane Kielty’s high-flying ambitions
now focus on leading Aon into a new
era, built on client strategy, embracing
technology and putting people first.
Luke Holloway finds out more

J
ane Kielty once dreamed of including me. We try to keep things
soaring through the skies open and team-focused, while
as a fighter pilot, drawn by ensuring leaders are approachable.”
the challenge, leadership Kielty’s remit spans the UK, Ireland
14 and teamwork the role and South Africa – a grouping that
demanded. While the cockpit might seem unusual but makes sense.
wasn’t her ultimate calling, “There are real synergies, especially
she’s brought the same drive between South Africa and the
and determination to her career in London market. They place a lot of
insurance – with a focus on taking business here, we’re in the same
the profession to new heights. timezone and we all speak English.”
Kielty became CEO of Aon UK, South Africa also brings unique
Ireland and South Africa after more challenges. “It’s a distinct business
than 20 years progressing through with its own opportunities. I’ve got
the business – something she a fantastic team and strong local
acknowledges is increasingly rare. leadership. We’re all delivering
“It may seem unusual to younger the same strategy – just adapted
generations, or even in our profession for our markets – and there’s a lot
more broadly, where the war for talent we can learn from each other.”
is so strong,” she tells us. “But I’m
a loyal person and I’ve had fantastic FINDING A PATH
opportunities here to grow and Growing up in a working-class family
develop through many different roles.” in Manchester, Kielty’s ambitions
Her early years were client-focused, of becoming a fighter pilot were left
followed by office and regional grounded when she was unable to
management, before moving into meet the safety criteria. “At that time,
broader leadership. Today, she heads
not just general insurance but also
Aon’s retirement and investment, as
well as the health and benefits arms.
While the responsibility is huge BECOMING A CHARTERED BROKER
– representing 6,500 people and MEANS A HUGE AMOUNT TO ME.
making the right decisions for clients
– Kielty calls it a privilege and is I BELIEVE WE SHOULD SET THE
proud of Aon’s culture. “We’re low HIGHEST STANDARDS
on hierarchy – no one has an office,

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 I N T E R V I E W – J A N E K I E LT Y

the cockpit of a fighter jet just wasn’t

designed for someone like me,” she
says. “I was told my height and arm
length didn’t meet the requirements.
That was tough but I had to reset.”
She went on to study law at
the University of Manchester,
enjoying contract law and liability,
but faced barriers qualifying
as a solicitor or barrister.
A graduate careers fair introduced
her to insurance. “I found Marsh,
joined their graduate scheme
and honestly, I’ve never looked
back. I loved it from day one.”
Professional development has been
central to her career, especially CII
qualifications and Chartered status.
“Becoming a Chartered broker means
a huge amount to me. I believe we
should set the highest standards.
Everything I learnt during my CII
studies has helped me – with clients,
complex issues or strategy. That
technical grounding really matters.” 15
“My eldest daughter is doing
her CII exams now – I’ve told
her to stay focused and get them
completed because they will
benefit you for years to come.”

AON THE RIGHT TRACK

Aon’s strategy is built around a
‘3x3 Plan’ which focuses on three
major areas in three years. Now
in its second year, it’s shaped by
client needs and long-term goals.
The first area is ‘human capital
and risk capital’ – aiming to be the
first call for any people or risk issue.
“We probably have something – or
someone – who can help,” says Kielty.
The second is client leadership.
“It’s a mindset shift. We’ve worked
hard to break down silos so we
can show up differently. It’s about
starting with the client’s strategy
and acting as an adviser, not just
a supplier,” she says. This applies to
major firms and smaller ones alike.
The third is Aon Business
Services – the global engine room
for tech, data and operations.
“Centralising it means we can
mobilise tools fast and globally.”
Artificial intelligence (AI) is playing 5

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 I N T E R V I E W – J A N E K I E LT Y

a significant role. Broker Copilot has The second programme, Work areas such as claims, starting a
been implemented to help brokers Insights, brings around 1,000 school brokerage and, more recently, the
make better decisions by turning students a year into Aon offices for Consumer Duty. Kielty sees it as
negotiation data into insights. Other work experience. “London students, especially valuable for smaller firms
tools, like the Analyser Suite for for example, come from a really diverse which may not have easy access
climate, cyber, and directors and mix of backgrounds,” says Keilty. to wider industry benchmarks.
officers (D&O) risk, bring advanced “With more than half of our colleagues With her term with the committee
modelling into core client work. Kielty getting involved in welcoming them ending soon, she’s focused on
herself uses Aon GPT, the internal AI – which makes a big difference.” bringing in new voices and remains
assistant. “It’s changing how we work. The aim is to show young people confident in BIBA’s role. “They’re
It’s not about replacing people – it’s they belong. “Some would never apply making a real impact – lobbying
about making us more effective.” because they don’t feel comfortable government, advising on key issues
in a place like our Leadenhall Street and protecting brokers’ interests.”
OPENING DOORS office. But that’s the point – we don’t Asked about trends that will
Two initiatives of which Kielty is want them to have to fit in, we want shape the future of insurance,
most proud focus on bringing more them to feel they can be themselves.” Kielty summarises them as weather,
diverse talent into insurance. workforce, trade and technology.
The first, Step Up, welcomes small CHAMPIONING THE PROFESSION “The environment is huge –
cohorts into Aon offices – choosing In addition to her journey at Aon, especially climate change. It’s already
candidates who might not get through Kielty has served as deputy chair affecting clients globally, from
the door based on just their CV. of the British Insurance Brokers’ supply chain disruption to extreme
“We worked with job centres to reach Association (BIBA) and chair of weather and shifting regulations.
people not in work, education or the Insurance Broking Standards And the impact is wide-ranging –
training – from different socioeconomic Committee for many years. from raw material costs to changing
16 and cultural backgrounds.” “I’m proud to represent member risk exposure in certain regions.”
During eight weeks, participants brokers, many of whom are small Workforce, she says, “covers
gain experience, qualifications and firms. Larger firms have a duty to everything from talent shortages
soft skills. “Some have never even contribute,” she says. “We have to inclusion,” adding: “It’s about
been in an office. We run ‘suited a voice and we should use it.” your value proposition – health,
and booted’ sessions to help them The committee aims to define benefits, pensions and culture. People
settle in and feel confident.” good practice, bringing brokers issues are always on the agenda.”
About 75% of those so far have together to offer guidance and These, she says, are megatrends.
joined Aon in permanent roles. help the community understand “Raise them in any client meeting
“Some are still with us now. The rest what ‘good’ looks like. and they’ll have something to
left with something valuable.” Now part of BIBA, it covers key say. They’re universal.”
Kielty is especially optimistic
about technology. “I’d love to see our
profession truly embrace AI. Aon is
investing $1bn in digital tools to help
clients and investors understand risk.
The impact is already clear – and
in all honesty, it’s long overdue.
“We shouldn’t fear AI. It won’t
replace the roles we love. I see it
as a co-pilot – helping us deliver
more value. Our roles will evolve.
We’ll need stronger relationships,
deeper understanding and focus on
what adds real value,” says Kielty.
“All of this will make us able to
better serve our clients in a landscape
that is evolving fast, helping them face
risks now and in the future – and that
should be the goal of our profession.” ●

Luke Holloway is editor of The Journal

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 RISK

L
loyd’s has long warned
that the insurance
market must be
prepared to withstand
multiple catastrophe
events in any given year.
One way it does this is by
maintaining a set of mandatory
realistic disaster scenarios (RDS) to
stress test both individual syndicates
and the market as a whole.
These event scenarios are
reviewed regularly to ensure they
reflect material catastrophe risks.
Earlier this year, Lloyd’s updated its
guidance on strikes, riots and civil
commotions (SRCC), particularly in
the context of major disasters
such as earthquakes.

MODELLING SOLUTIONS
There are currently 20 compulsory
scenarios that managing agents
must complete for each syndicate.
While Lloyd’s doesn’t prescribe 17
how agents should calculate losses,
a growing number of market players
now offer modelling solutions to
help quantify potential exposures.
One such example is Synthetik,
which has applied its advanced
platform, srccQuantum, to the Lloyd’s
2025 Extreme Disaster Scenario (EDS).
This scenario explores the financial
impact of SRCC events triggered by
social reactions to an environmental

CHAOS
catastrophe – specifically,
a catastrophic earthquake along the
Cascadia Subduction Zone, followed
by immigration-related tensions.

COVER
The model examined two
types of SRCC activity:
● Organised demonstrations in
major North American cities,
with projected losses ranging
from $1.4bn (low intensity), to
With strikes, riots and civil unrest $9.5bn (very high intensity).
● Dispersed civil unrest in smaller
becoming increasingly frequent and towns and cities along the affected
West Coast, with estimated
gaps in cover become more apparent, losses from $2.7bn to more than

both insurers and clients face growing $11.2bn (very high intensity).

uncertainty over how these massive events

SHUTTERSTOCK

The analysis highlighted a key

shift: risks now tend to aggregate
are priced and paid. Liz Booth reports not by geography alone but via 5

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 RISK

contagion-like spread along economic, Meanwhile, Howden Re reports

symbolic and infrastructural pathways. a sharp rise in both the frequency INDUSTRY CHALLENGES
This has major implications for and severity of SRCC events globally,
risk modelling, which must evolve with insured SRCC losses outpacing Loss distribution complexity
beyond traditional spatial correlation terrorism losses since 2015. and impact: Increased net
retentions by carriers, combined
methods to reflect the interconnected Synthetik also warns that in
with a significant rise in smaller,
nature of modern unrest. high-intensity cases, total losses more attritional losses, can be the
One notable insight was the could reach tens of billions of dollars, difference between profit and loss for
exposure of second-tier and presenting serious accumulation this product line.
regional cities – areas historically risks. “Accumulation risk represents
seen as lower risk. The simulations a profound challenge for insurers and Pricing the unknown: The New
Caledonia protests – projected to
revealed significant vulnerabilities in risk managers,” the company says.
cause industry losses of $2bn
commercial, logistical and retail hubs Its models show how SRCC events (£1.5bn) – highlight how modern
located outside major urban centres. can cluster along symbolic and SRCC losses are highly
economic networks, increasing the unpredictable. But unpredictability
MAJOR FOCUS likelihood of simultaneous claims should not justify poor underwriting
SRCC has moved from a niche concern across different portfolios – a challenge or a lack of tailored solutions.
Insurers must revisit policy wordings
to a major focus within political to traditional diversification strategies.
and pricing strategies to better
violence risk management. As Swiss reflect these risks – not just within
Re noted: “It wasn’t long ago that UNDERSTANDING THE EXPOSURE the political violence and terrorism
no single SRCC event had exceeded Verisk, another major player in market but across all areas where
$1bn (£740m) in losses, with the most catastrophe modelling, has its own this cover is provided. Property
significant instance on record having SRCC-specific model for the US, portfolios, marine, cargo and specie
policies often include SRCC
been the Los Angeles riots in 1992.” designed to capture the escalating
elements, and frequently on a
18 Today, however, cumulative SRCC financial impact of civil unrest. non-affirmative or silent basis.
losses have surged to the point that the This model evaluates drivers such as This means the relevant peril is often
topic now commands serious board- social and economic trends, political neither priced, aggregated, nor
level attention across the industry. context and historical protest patterns, properly monitored.
Citing the Carnegie Endowment for helping insurers better understand A growing concern is the
increasing potential for disputed
International Peace’s Global Protest their exposure and strengthen
claims, where carriers argue that
Tracker, Swiss Re points out that more catastrophe risk frameworks. cover was not provided. Lengthy
than 132 countries have experienced Verisk reports that since 2010, litigation rarely delivers good
protests since 2017 – 23% of which SRCC events have caused more than outcomes for anyone other than the
lasted more than three months. $10bn (£7.4bn) of insured losses lawyers involved. Clients need clear
Synthetik’s simulation outcomes echo globally – compared to less than $1bn confirmation of cover and a proper
understanding of what they have
this, suggesting high potential for (£740m) for terrorism. In the past
purchased, rather than being left to
widespread aggregate property losses. six years alone, insurers have faced rely on silent cover.
five SRCC events each exceeding
$1bn in global losses, with about Industry-wide standards needed:
$3bn (£2.2bn) of those in the US. Establishing consistent market
“Unrest in the US has shown the standards across all business
lines – alongside agreed best
necessity for insurers to understand
practices – is essential to help
potential political risk hazards,” reinsurers underwrite these risks
says Sam Haynes, VP of data and more effectively.
analytics at Verisk Maplecroft.
“A one-in-1,000-year SRCC Source: Howdens

$1bn
event could result in losses ten
times greater than those from the
2020 protests. Tail events could
impact commercial and municipal
properties at ZIP code level, especially
in metropolitan areas,” he adds.
In the past six years, insurers have faced five
events of strikes, riots and civil commotion Shane Latchman, managing director
each exceeding $1bn in global losses, with of Verisk’s extreme event solutions
about $3bn of those in the US team in London, adds: “Our goal is
Source: Verisk to help insurers covering political

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 RISK

violence and terrorism to improve to riots in the UK and political unrest

their underwriting through better in Kenya and Bangladesh, the threat
insight. This means smarter pricing, FROM THE CANCELLATION OF TAYLOR of terrorism and global civil unrest is
stronger capital allocation and
more effective risk mitigation.”
SWIFT CONCERTS IN VIENNA TO RIOTS now a constant theme in reinsurance.
The political violence and terrorism
The reinsurance industry is IN THE UK AND POLITICAL UNREST IN landscape has changed. Our approach
having to grapple with an evolving KENYA AND BANGLADESH, THE THREAT to providing reinsurance must
threat landscape, one that now adapt, or we risk falling behind.”
includes civil unrest on
OF TERRORISM AND GLOBAL CIVIL In a world of rising discontent and
a scale that would once UNREST IS NOW A CONSTANT THEME shifting risks, the insurance industry’s
have been considered IN REINSURANCE models must evolve – because
extraordinary. As Howden yesterday’s assumptions won’t protect
SHUTTERSTOCK

bluntly puts it: “From against tomorrow’s threats. ●

the cancellation of Taylor
Swift concerts in Vienna Liz Booth is contributing editor of
The Journal

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 H E A LT H

HEALTH IS
WEALTH
Matt Riddell and Ron Wheatcroft ask: As economic
activity plummets, how can insurance help reverse that
trend by helping people get back to work?

I
n November 2024, the UK According to the review, there was
government appointed an increase of more than two million
Sir Charlie Mayfield to lead an people with a work-limiting condition
independent review to explore between 2015 and 2024. This growth
how to support UK workers rate is ten times the growth of the
with long-term illnesses or working-age population as a whole.
disabilities back into work and to help
20 them stay in work. COLLABORATION WILL BE VITAL
The review is investigating how the No single ‘silver bullet’ solution can
government and businesses can work address an issue of this scale. A set
together to support ill and disabled of solutions, with collaboration
people better, thereby boosting living between multiple stakeholders and the
standards and growing the economy. government, is needed.
The workplace-based products the One approach used across disability
insurance industry offers, such as insurance products to help guide
long-term disability income protection and coordinate recovery and the
and private medical insurance, should return-to-work process is vocational
be an integral part of the solution. rehabilitation, which is increasing
Reforms to the system are in use and popularity. Swiss Re
much needed. Nearly 800,000 believes it will be an integral part
more working-age people were of the workplace health strategy
economically inactive for health moving forward.
reasons in 2024 than in 2019 –
an increase of 40%. VOCATIONAL REHABILITATION is crucial. The longer someone is off,
At its heart, vocational rehabilitation the harder it is to return. After about
helps people with health conditions six months of absence, there’s only
stay in work or return to work after about a 50% chance of getting back
illness or injury. to their previous job. After a year, it
It’s a proactive approach grounded drops to roughly 20%. In other words,
NEARLY 800,000 MORE WORKING- in a simple truth: good work is good a short-term sickness can become a
AGE PEOPLE WERE ECONOMICALLY for health and most people absent
due to a health condition are keen
long-term absence if you wait too long.
That’s why vocational rehabilitation
INACTIVE FOR HEALTH REASONS IN to get back when it’s safe to do so. aims to act quickly to spot barriers and
ALICE MOLLON / IKON IMAGES

2024 THAN IN 2019 – AN INCREASE Instead of waiting for someone put support in place. Getting someone
to become ‘100% fit’, vocational back sooner is usually simpler, more
OF 40% rehabilitation focuses on what they successful and more cost-effective
can do and uses work itself as a tool than trying after many months. Even
in their recovery. Early intervention small, low-cost steps taken early can

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 H E A LT H

21

prevent someone from falling into employee and employer, develop plans
chronic absence. for a phased return and ease worries on
Vocational rehabilitation also both sides. For example, employees may
tackles the human factors behind be nervous about coping with work or
absence, not just the illness. Often, facing colleagues again, while managers
it’s not the medical condition alone might be unsure how to help without

£12
keeping someone off work, but overstepping. Vocational rehabilitation
psychosocial factors – fear of re-injury acts as a bridge, easing those anxieties.
or not coping, low confidence, health One of the key areas highlighted
anxieties, or pressures at home. If not in the Mayfield review was that fear
addressed, they can become bigger and miscommunication from both
obstacles than the health issue itself. employees and employers have the
Vocational rehabilitation potential to turn short-term sick leave Swiss Re’s internal analysis has found an
professionals help untangle these issues. into long-term absence. By getting approximate £12 saving for every £1 spent on rehab
They open communication between everyone on the same page and 5 Source: Swiss Re

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 H E A LT H

focusing on solutions, VR replaces fear at work doesn’t have to end a career

with confidence. – with the right support, it can be the
There’s no one-size-fits-all start of a journey back to a fulfilling
solution; VR plans are personalised working life.
to each person’s situation. It might CURRENTLY, 90% OF ALL INSURED
involve steps like medical treatment, CHALLENGES FOR SMALL LONG-TERM DISABILITY INCOME
counselling, altered duties, or health EMPLOYERS SCHEMES COVER FEWER THAN
coaching, depending on what’s needed Most UK employers are small
at each stage of recovery. Throughout, businesses. At the end of 2024, just 250 MEMBERS, WITH 48% COVERING
the focus stays on what the individual 8,250 out of 1.4 million businesses FEWER THAN 20 PEOPLE
can do and how to build on that with staff had 250 or more employees.
gradually. Good communication Smaller firms are less likely to have the
and coordination are essential, with resources available to larger firms to
everyone collaborating on a clear support the health of their workforces. to help when it's needed and when
return-to-work plan. This can mean that they are less able faced with a rare, unexpected and
The payoff for getting this right is to put proactive support in place, unbudgeted cost.
huge. The individual regains health and if indeed they are aware of the best Insurers have a big role to play for
income, the employer keeps a valued way to do so. Improved information smaller firms, as they can provide the
employee, more income tax revenue is services for smaller employers should additional services needed.
generated and insurers avoid prolonged be part of the solution, giving access Currently, 90% of all insured long-
claims. And it’s financially smart: term disability income schemes cover
Swiss Re’s internal analysis has found fewer than 250 members, with 48%
an approximate £12 saving for every covering fewer than 20 people. This
£1 spent on rehab. In short, helping is a valuable support to those smaller
22 people back to work pays off. That’s firms but barely scratches the surface
why many income protection insurers of the scale of the opportunity.
now include vocational rehabilitation Swiss Re’s Group Watch 2025 report
support with their policies – rather highlights the value both employers
than just paying claims, they help and employees see in having recourse
coordinate treatment and adjustments to support services in their benefits
to facilitate a safe return. It’s a shift package at a time when they most
from passively compensating illness to need them and when access to NHS
proactively supporting recovery. support may be severely delayed
Vocational rehabilitation is a human- or unavailable. Despite other cost
centred approach. It treats work as a increases such as higher employer
positive part of healing, not something National Insurance, there was no
to fear. It taps into the health benefits evidence of employers wishing to
of good work as part of recovery. remove these benefits. They are well
By focusing on ability, intervening regarded and used.
early and uniting everyone involved, it It has been encouraging to see the
improves return-to-work outcomes. insurance sector proactively engaged
The sooner support is offered and with the Mayfield review, both in
tailored to the person, the better the responding to the initial phase and
result for everyone. A health setback in the many one-to-one and
roundtable meetings which
Sir Charlie and his team
have been holding. ●
ALICE MOLLON / IKON IMAGES

Matt Riddell is a claims medical

specialist and Ron Wheatcroft is a
Chartered insurer and
technical manager,
both at Swiss Re

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 RISK

B
ig oil spills generally
make front-page
news. But there is
much more happening
across the ocean that
critically threatens
the health of our seas. Warming
waters, acidification and pollution are
seriously impairing ocean biodiversity.
About 71% of the Earth’s surface is
water-covered, with oceans holding
about 96.5% of it. “The oceans
are the primary regulator of the
climate and the life support system
for the entire planet. Humanity
cannot survive without a healthy
marine ecosystem,” says marine
biologist Dr Howard Dryden. 5

23

OCEANS
IN CRISIS
From warming seas to toxic shipping
waste and collapsing marine
biodiversity, Praveen Gupta reports
on the growing risks to oceans and
why marine insurers must act now
GETTY

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 RISK

24

While threats to maritime assets support – and ultimately, the people growth and decreased survival.
are scrutinised, the wellbeing of who depend on them. More than 90% Until recently, ocean acidification
the oceans and how those assets of the warming on Earth in the past had not crossed its planetary
impact them is often overlooked. 50 years has happened in the ocean, boundary. But a new study by
Like aviation, shipping is not covered according to NOAA. It is vital to limit Plymouth Marine Laboratory (PML),
by the Paris Agreement. Of all the shipping’s adverse impact before NOAA and Oregon State University
UN Sustainable Development Goals, we reach the point of no return. confirms that it now has.
SDG 14 – ‘Life Below Water’ – is the “It’s a ticking timebomb for
least funded. Insurers must step in. EVIL TWIN marine ecosystems and coastal
Warming also contributes to the The International Environment Forum economies,” says PML’s professor
thinning of ice shelves and sea ice, (IEF) calls ocean acidification the Steve Widdicombe, who is also
which affects Earth’s climate system, “evil twin” of the climate crisis. It co-chair of the Global Ocean
particularly the Atlantic Meridional occurs when the ocean absorbs carbon Acidification Observing Network.
Overturning Current (AMOC). dioxide, reducing the pH levels of
Marine ecosystems and human seawater. As pH drops, calcifying UNSUSTAINABLE BLUE ECONOMY
livelihoods are under threat. For species like corals, oysters and sea “Imagine six million tonnes of
instance, warm waters harm corals, butterflies struggle to maintain plastic entering the oceans annually
ISTOCK

along with the marine life they their shells, leading to slower and 20 million tonnes of partially

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 RISK

combusted carbon from the in The Conversation. “Governments portfolio by bank loan value.
shipping industry alone,” says Dr are currently deciding whether The Poseidon Principles for Marine
Dryden. “Carbon contains toxic to allow mining of the ocean floor Insurance – launched in December
heavy metals and hydrocarbons. It for metal ores and minerals.” 2021 – extend this framework
is as toxic as plastic and there are Disappointingly, the final to insurers’ hull and machinery
three to four times more of it.” declaration from the recent UN Ocean portfolios. But take-up remains
International shipping produces Conference (UNOC) in France fails limited. Is it too little, too late?
nearly a billion tonnes of CO2 to call for a precautionary approach Ship strikes are among the leading
emissions – 2% to 3% of the global or a ban on deep seabed mining. causes of human-induced whale
total. “This must be halved by Each UNOC ends with declarations. mortality, killing 20 times more
2050 to avoid dangerous climate Yet in the last eight years, plastic whales than whaling, according
change,” warns Tristan Smith pollution has surged, coral reefs have to SevenSeas Media. Underwater
of UCL Energy Institute. been bleached, whales have been noise from ships is also a significant
“We could survive climate change; harpooned, fish stocks have crashed threat, according to WWF.
we will not survive the loss of marine and sea temperatures have spiked. Global shipping traffic has increased
life and the ocean drifters that life on “We gather, we speak, we applaud, by 300% in the past two decades.
Earth depends on,” warns Dr Dryden. but the ocean keeps dying,” laments Vessels have grown larger and
Ships scrub flue gases and dump ocean campaigner Luke McMillan. faster. Today’s merchant fleet is the
the waste into the sea – often biggest contributor to underwater
unfiltered – creating pollution out POSEIDON PRINCIPLES background noise, which has doubled
of sight and reach. “Nearly every The Poseidon Principles offer a global each decade in the last 50 years.
vessel, from commercial vessels to framework for assessing and disclosing Cetacean conservationist
yachts, is releasing toxic metals into the climate alignment of financial Ed Goodall highlights new research
the sea,” says Dr Gordon Watson institutions’ shipping portfolios. in Nature Communications showing
of the University of Portsmouth. They aim to create a common how vital whales are to ocean 25
“Toxic metals from shipping are a baseline for measuring whether ecosystem health and resilience.
hidden threat to healthy seas and portfolios align with climate goals. Healthy ecosystems need their
nobody's really talking about it.” Currently, 35 institutions have full range of wild animals, at natural
He calls for legislation to signed up – covering more than baseline levels, to function optimally.
put shipping at the heart of 80% of the global ship finance “It’s one of our best tools to tackle
sustainable ocean policies. the climate crisis,” says Goodall.
If shipping were a country, it The fishing method of bottom
would be the sixth-largest CO2
OCEAN HEAT TRENDS (1993-2024) trawling is also hugely destructive,
emitter. “The world has focused on dragging heavy nets across the
Change in stored heat content in the upper
carbon but marine biodiversity also 2,000 meters (1.2 miles) of the ocean from seabed, indiscriminately catching
regulates the climate,” notes Dryden. 1993-2024. Darkest orange areas show where marine life and destroying
“The world has focused on carbon heat content increased by six or more watts per habitats, explains Greenpeace.
mitigation as the only solution for square meter. Some areas have lost heat (blue), Illegal, unreported and unregulated
climate change,” continues Dryden, but not enough to offset increases everywhere fishing is another major threat,
else. Changes in grey shaded areas were not
who recently published a discussion conducted in the shadows and
statistically significant, meaning small relative to
paper describing the factors that the range of natural variability. undermining ecosystems, food
control marine biodiversity and how stocks and fragile coastal economies.
it regulates planetary climate. Cutting off access to insurance is
Deep-sea mining is among the a key deterrent, according to the
most controversial threats to ocean Council on Foreign Relations.
health. Evidence shows it can cause “After almost 100 years on
long-lasting damage to fragile the planet,” reflects Sir David
ecosystems. One experimental site Attenborough, “I now understand
off the US East Coast, mined over the most important place on Earth
50 years ago, still shows little sign is not on land – but at sea.”
of recovery, according to the BBC. Can marine insurers live
“Seabed mining could become one up to this challenge? ●
of the defining environmental battles
of 2025,” says Myra Williamson, Praveen Gupta FCII
Source: NOAA Climate.gov, based on data from John Lyman
senior lecturer in law at Auckland is a Chartered insurer,
University of Technology, writing former MD and CEO

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 GOVERNANCE

I
n the past several months,
the All-Party Parliamentary y
Group (APPG) for Insurance e
and Financial Services has
hosted a series of sessions,
each exploring a key issue
shaping the future of the profession.n.
From regulation and growth to
skills, sustainability and artificial
intelligence (AI), these discussions
brought together policymakers,
industry leaders and experts.
The CII plays a central role
in these meetings – sourcing
speakers, briefing the committee
and drafting follow-up materials.

INSURANCE AND GROWTH

The inaugural meeting of the APPG
focused on the insurance sector’s
role in driving UK economic growth, h,
alongside regulatory challenges and d
skills development. Key themes
included maintaining the UK’s
26 competitiveness as a destination forr
insurance investment, the importance nce
of proportionate and effective
regulation, as well as the sector’s role
le
in promoting financial inclusion and d
consumer protection.
The discussion also explored the

SHAPING
need to foster financial education,
streamline regulatory processes and
address emerging risks such as climate
change and cyber threats, highlighting
the sector’s potential to support both

THE
economic resilience and innovation.

CAPTIVES
The second meeting explored the

FUTURE
UK’s potential to become a more
competitive domicile for captive
insurance. Captives – insurance
companies set up by firms to manage
their own risk – play a strategic role in
corporate risk management and offer
significant economic benefits. The All-Party Parliamentary Group
CII deputy president Callum Beaton
shared insights on the growing global for Insurance and Financial Services
demand for captives and the barriers
posed by the UK’s current regulatory
– supported by the CII – has become
framework, which treats captives like an important forum for shaping policy
commercial insurers. There was strong
support for proportionate regulation and practice. Molly Burchell reports
and the introduction of protected
cell companies to broaden access,
from the latest meetings
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 GOVERNANCE

programme, who brought fresh

perspectives and practical ideas to
the discussion. The London Market
The CII New group focused on the challenges
Generation Group
at the APPG for THERE WAS STRONG APPETITE FOR and opportunities of insuring
crypto assets, aiming to dispel
Insurance and
Financial Services REFORMING ENTRY PATHWAYS, misconceptions and show how the
STRENGTHENING THE TALENT PIPELINE sector can support innovation and
AND BUILDING INCLUSIVE SYSTEMS economic growth. Its members
are preparing for an event at
FOR LIFELONG LEARNING Lloyd’s of London on 1 October
to explore practical solutions and
promote greater diversity in the
cryptocurrency space.
climate resilience, data skills, AI, Turning to environmental concerns,
apprenticeships, neurodiversity, and the Claims group examined the
support for small to medium-sized significant waste generated through
enterprises (SMEs). There was strong insurance claims and the need to
appetite for reforming entry pathways, embed sustainability into claims
strengthening the talent pipeline handling. With new supply chain
and building inclusive systems for regulations on the horizon, the group’s
lifelong learning. The discussion also members are working to position
emphasised the importance of making insurance as an “eco career” that
roles more engaging and accessible to a aligns with the values of future talent.
broader range of people. Meanwhile, the Broking group is 27
developing a toolkit to help firms
ETHICS, TRUST, AND INNOVATION better support neurodivergent
A more recent APPG roundtable colleagues and clients. Its work
explored the use of AI in financial focuses on inclusive recruitment,
services, supporting a submission practical workplace adjustments
particularly for mid-sized firms. to the Treasury Select Committee’s and the importance of intersectional
The session highlighted the inquiry into AI. The session focused on inclusion, ensuring the profession
opportunity to attract both new consumer outcomes and the impact on is accessible, supportive and
and existing captives to the UK, vulnerable customers, with attendees future-ready.
with international comparisons from across insurance, data protection, Across all sessions and initiatives,
underscoring the need for reform. regulation and parliamentary services. a common thread emerged: the need
Participants called for timely Discussions covered AI’s benefits for thoughtful, inclusive and forward-
government action and regulatory and risks, governance and future looking policy. From unlocking the
commitment to unlock the regulation. Key topics included potential of captives to investing in
sector’s full potential. consumer experience, data protection, skills and navigating the ethical use
algorithmic bias, transparency and of AI, the CII remains committed
FUTURE-READY WORKFORCE the role of AI in staff development, to supporting the profession and
In partnership with the APPG for productivity and fraud prevention. policymakers alike. The contributions
Skills, Careers and Employment, The CII’s contributions, such as its of the New Gen groups – both in their
the third session examined the Digital Ethics Companion and research own projects and within the APPG –
skills landscape across insurance into gender bias, were highlighted underscore the importance of diverse
and financial services, set against as foundations for industry-wide perspectives in shaping a resilient and
the Labour government’s focus standards. Participants called for innovative future for insurance and
on skills as a driver of economic greater transparency, human oversight financial services.
growth. The session explored and practical guidance to help firms, To find out more about
how the sector can better attract, especially SMEs, navigate the evolving the APPG’s work or the New
retain and retrain talent, and how AI landscape. Generation programme, visit:
to ensure that both technical and www.cii.co.uk/newgen ●
behavioural competencies align NEW GEN VOICES
with evolving needs. The latest APPG session welcomed Molly Burchell is communications
Key themes included members of the CII’s New Generation executive of the CII

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 TRUST

Dr Matthew Connell examines the he

latest findings from the CII’s Public
blic
Trust Index and asks: is there light
ht at
the end of the tunnel on price walking?
alking?

REBUILDING TRUST
I
n 2021, the Financial Conduct widespread. During this time, consumers was continuing when prices went
Authority (FCA) introduced rules noticed their premiums went up up because of claims inflation.
to ensure that people who were significantly unless they shopped around.
renewing their home and motor Then, after 2021, consumers saw INSURER RESPONSE
insurance were treated in the same their premiums continue to rise. The CII’s Public Trust Index charts
way as new customers. This was not because of price walking, consumers’ perceptions of how
Yet four years later, we are still seeing the FCA stated, but because of huge insurers are responding to their
headlines like the one Which? published increases in the costs of claims. loyalty, in terms of the gap between
in July which said: “Taken for a ride? The story is the same for home their expectations about the
Sizeable reductions to car insurance insurance. The Association of British importance of the issue, and their
renewal quotes after haggling cast Insurers’ (ABI) House Rebuilding Cost rating of their insurer’s performance.
doubt on insurers offering fair value”. Index rose by 21% in the two years to The score is on a scale of +/- 20, with
28 And yet the FCA’s analysis of insurance 2024 and, in 2023 alone, the average a higher score showing a bigger gap,
pricing, published in August, said that its home insurance premium rose by 13%. which demands more attention.
findings provided “encouraging evidence However, more recently prices have It shows that after the
of reduced price differentials across stabilised. ABI figures show that the introduction of the FCA’s rules,
both the home and motor markets”. average cost of motor cover in the the expectation gap actually got
So, what has been happening in the last first quarter of 2025 was 7% lower worse – but that as prices have
four years to create such different headlines? than the same quarter in 2024. stabilised, it has started to narrow.
If we look at how the market has Similarly, the average cost of combined This improvement could be the
developed from the consumer’s point of building and contents home insurance beginning of the solution – but only
view, the picture starts to become clearer. in the second quarter of 2025 was only if insurers demonstrate to consumers
Up to 2021, the practice of charging £1 more than the same quarter of 2024. what they have shown to the FCA –
existing customers more than they To sum up, consumers got used to that price walking is a thing of the past.
would pay if they were a new customer seeing higher prices because of price For example, insurers could follow
– also known as ‘price walking’ – was walking and assumed the practice the lead of some insurance companies
and offer a reward for loyalty to all
their customers – not just the ones who
ring up and ask for a loyalty reward.
LOYALTY EXPECTATION GAP At the very least, insurers could turn
12 what they must do to comply with
11 the FCA’s rules on price walking into
10 an explicit customer guarantee – that
they will never charge customers
9
more at renewal than they would
8 pay if they were a new customer.
7 Insurers have a great chance to
mend the damage to trust that was
6
caused by price walking – but first,
5 they must make what they are doing
4 much clearer to consumers. ●
SHUTTERSTOCK

May Oct Feb May Sep Dec Apr Jul Dec Jul Dec May Sep Mar Aug Apr
19 19 20 20 20 20 21 21 21 22 22 23 23 24 24 25 Dr Matthew Connell is director of policy
and public affairs at the CII Group

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28 PTI_AUG SEP 25_Cll The Journal.indd 28 13/08/2025 14:24

 EVENTS

INNOVATION
AND IMPACT
Join the CII’s Shaping the Future of
Insurance conference for a day of
fresh thinking, bold ideas and
honest conversations – all focused on the don’t miss your chance to be part
future of insurance in an AI world of the conversation shaping what
comes next.

HOW TO BOOK

T
he CII’s high-energy, profession’s most forward-thinking To view the full programme
thought-provoking Shaping minds – including leaders from Clear and secure your place, visit:
the Future of Insurance Group, Zurich and the CII’s own www.cii.co.uk/future ● 29
conference is back in Community Boards.
the City of London on With extended networking breaks, a Simon Webster is membership marketing
Wednesday 1 October. buzzing exhibition space, and a drinks manager of the CII
This flagship event brings together the reception to close the day, this is far
full spectrum of the insurance profession more than just a CPD event – it’s where
PROGRAMME – AT A GLANCE
– from brokers and underwriters to claims the future of the profession comes
experts and compliance leaders – for one to life. ● CII CEO Opening Address:
unmissable day of learning, connection Innovation and Impact
and inspiration. A POWERFUL LINE-UP Matthew Hill, CEO – CII
This year’s focus: how artificial Keynote speaker Professor Richard ● Keynote: AI and the Future of
intelligence (AI) is reshaping the Susskind OBE will share his insights the Insurance Profession
profession and what it means for your role, on AI and the Future of the Insurance Professor Richard Susskind OBE
● Navigating AI Regulation: What
your career and the future of the sector. Profession, while award-winning
Insurance Professionals Need
From smarter underwriting and faster speaker and magician Ben Hanlin will to Know
claims to evolving regulation and ethics, explore The Human Edge: Building ● AI in Underwriting: Smarter
we’ll explore the power of innovation and Instant Connection in a Digital World. Risk, Sharper Decisions
the human impact it demands. Matthew Hill, CII CEO, says: “The ● AI in Claims: Speed, Service and
Expect cutting-edge keynotes, influence of AI can be seen across all Smarter Resolution
real-world AI applications, and open, aspects of the insurance profession, ● AI in Broking: From Data
to Decisions
honest conversations with some of the from how we assess risk to how we
● Shaping Our Future: Skills,
connect with customers. The CII Impact, and the Role of the CII
Shaping the Future of Insurance in an AI World
DIGITAL CONFERENCE Conference is an excellent opportunity ● The Human Edge: Building
for professionals at every level to Instant Connection in a
We expect in-person places to sell out quickly. understand what the impact of AI Digital World
The entire event will be filmed and released as a means in practice – and to help shape Ben Hanlin – award-winning
digital conference, ideal for those unable to speaker, known for transforming
a future where pioneering technology
attend on the day, and those living outside audience engagement with
London, including international members. goes hand in hand with standards, insights from his viral TV magic
Full details on how to access the digital professionalism and trust.” and pranks
conference will be available after 1 October. Whether you’re starting out,
stepping up or leading the way,

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 PROFESSIONAL DEVELOPMENT

MAPPING
CONFIDENCE
Abbie Mansfield reveals how using the Professional Map
has helped her to reflect, rebuild and refocus

I
n underwriting, especially many of the behaviours. Customer brokers, to be clear and confident
on a busy renewals team, focus stood out – everything I do when pushing back and to contribute
you’re constantly balancing revolves around balancing risk with more to team discussions.

PABLO BLASBERG / IKON IMAGES

risk, rating and relationships. relationships. I want to support the
You need to be fair but firm broker and their client but I also need
– supportive of the broker, to apply fair terms and protect the CHANGES SINCE USING THE MAP
but commercially minded. It’s not portfolio. That means understanding The Map has helped me realise I’ve
30 just about pricing correctly; it’s about the pressures on their side while still been undervaluing my own voice.
understanding the wider context of delivering a technically sound solution. Having seen both sides of the industry,
the decision: the client’s business,
the broker’s relationship with them Insight plays a part when I’m analysing
and the long-term profitability of the loss ratios, spotting trends, or making
portfolio. You want to support the decisions based on past performance
broker and client, but you also need to and future risk.
protect the portfolio and the company.
The Professional Map gave me the Drive to deliver shows up in how
structure I hadn’t realise I needed. I maintain momentum with a high-
When you’re focused on keeping volume workload, stay focused under
everything running – assessing risk, pressure and remain accountable
managing broker relationships, for results.
staying on top of deadlines – you don’t
always pause to think about your own Integrity is essential, especially when
development. Using the Map gave me I need to say no to a risk or stand by
that chance to reflect. a decision that protects the business,
I started out in marine cargo even if it’s not the easiest route.
underwriting, then moved into
broking to broaden my experience Curiosity has shaped much of my career
across different insurance classes. path. I moved from marine cargo into
That shift opened up new opportunities broking because I wanted to learn more
and gave me a wider view of the and gain exposure to other areas of
market – experience I’ve now brought insurance. That experience broadened
back into underwriting. my thinking and now I bring that
wider view back to underwriting.
BEHAVIOURS AND DEVELOPMENT
Looking through Band 2, I could see This also links to Impact: I’ve learned
how my approach already aligns with to adapt how I speak to different

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 PROFESSIONAL DEVELOPMENT

I bring a more rounded understanding I approach negotiations more knowledge, take on more complex
of what drives a renewal or placement thoughtfully now and I’m more risks and work towards completing my
– not just the technical side, but the confident standing by my decisions. Diploma. It’s also helped quieten some
broader context too. That’s given me Using the Map gave me clarity of the imposter syndrome that comes
the confidence to speak up and get on what I want to develop next. with stepping into new territory.
involved in conversations and projects I want to keep building my technical If you’ve moved roles or taken a
beyond my day-to-day cases. new direction in your career, the Map
It’s also helped me understand is a really valuable tool for reflection.
where my strengths lie. I’m confident It reminded me that I wasn’t starting
handling risk and data, and I’ve from scratch – I’ve already built
learned that I’m good at asking the experience that counts. Now I’ve got
right risk questions – opening up a clearer idea of what I want to build
discussions with brokers to explore on. It gave me space to recognise
flexibility, while being clear when what I’m doing well and where I can
terms can’t be changed and why. continue developing. It’s helped me
feel more confident in my role and
more intentional about the skills I want
to grow from here. ●

Abbie Mansfield is property and casualty

underwriter at Arch Insurance and
president of the Luton and Hertfordshire
Insurance Institute

31

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 LEGAL

YOU GOTTA HAVE

(MORE THAN)
FAITH
In the fourth of the ‘In good faith’ series of technical
articles for The Journal, Roger Flaxman examines
insurance pitfalls for contractors and subcontractors

Acting as expert to the courts, Flaxmans

also assists policyholders who have
experienced rejected claims. This
continuing series of articles highlights
32 some of the insurance principles that are
under scrutiny and how standards might
be improved to help build public trust.

W
hen
contractors’
insurances
fail to meet
a claim, the
knock-on
effect can have harmful and long-
lasting consequences for all concerned.
Experience shows that the
modern use of technology to capture
information about a policyholder can
lack the sophistication to gather the
full range of details required to make
a fair presentation of the risk.
There will be few things of less
interest to a typical contractor than
insurance but while a policyholder
ought to take responsibility for their
own insurance affairs, the insurance
industry can help them by making
clear at the time of sale what is the
important information that will be
relied on at the time of a claim.
One point of difficulty relates to
the difference between the needs of a
main contractor and a subcontractor.

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 LEGAL

Main contractors are usually large

institutions contracting with the
owner/developer; subcontractors
are engaged by the main
contractor, typically for labour
or for specialist skills, supplies
and services.
It is ordinary practice for
underwriters to require a
contractor to ensure that its
own subcontractors arrange and
maintain insurance of their own.
However, a policyholder contractor ● How many part-time PAYE
has very little actual control over employees do you have?
the conduct of a subcontractor. ● Do you have any other kind of 33
If the subcontractor fails to employee? If so, give details of their role
arrange insurance it may only be and method of employment.
discovered at the time of a claim,
meaning that the principal contractor This would establish whether
may lose its own insurance as a result. the proposer understands what is
Unless the requirement is specific Typically, the owner is a principal meant by employ/employment
in its detail, especially as to the and may be a director of their and may well raise the question of
amount of cover and suitability of own limited liability company. labour-only subcontractors (LOSC) –
insurer, the subcontractor can pay Alternatively, there may be more than which is a term insurers understand
lip service to its observance and one owner, practising in a formal but is not always understood by
buy insufficient insurance from partnership with each other; or the tradespeople or contractors.
any insurer at the cheapest price, owner may trade as a sole practitioner, These other employees may be
without any further responsibility. entirely without any corporate regarded by the proposer as ‘other kind
protection for their personal assets. of employee’, if they do not know and
KEY QUESTIONS A prudent underwriter would want understand the term LOSC. Once again,
An example of directing the insured’s to know which of these it is, because the clarity of the question will direct
mind to that of the underwriter it makes a difference in the event of the mind of the insured to the mind of
concerns the employment of people: a liability claim. the prudent insurer as intended by the
typically, employees under PAYE, The question might be framed Insurance Act 2015.
‘labour-only’ subcontractors and instead: ‘Do you trade as a sole Meanwhile, in the absence of such a
‘bona fide’ subcontractors (BFSC). practitioner, a limited liability market agreement, the meaning of each
The following questions arise company, a partnership, or a limited type of subcontractor requires careful
from cases that have been in dispute liability partnership?’ attention to ensure what the prudent
with insurers: That still does not answer the insurer has in mind and is consistent
● How many people are working in question of how many people are with the insured’s understanding.
the business? working in the business. The next
● What does ‘working in the business’ question might be: HOW MANY SUBCONTRACTORS?
mean? Does it mean being a principal, At the time of applying for insurance: The extent to which subcontractors of
owner, director, or does it include ● How many full-time PAYE employees each kind are used by the insured will
ISTOCK

employees of all kinds? do you have? affect the exposure to risk and, of 5

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 LEGAL

course, the numbers will vary from one time. Others may have to guess.
year to year and job to job. Why does this matter?
For example, the question
might be: ‘At the time of applying THE STATEMENT OF FACT
for insurance, do you employ If, for example, the policy is to be
labour-only subcontractors? If so, based on a statement of fact, which
how many?’ contains the statement ‘the number of
Typically, LOSCs are engaged people working in your business does
for an hourly, daily or weekly rate not exceed 10’ then if on any day of
and are therefore engaged under a the year there are more than 10 LOSCs
contract for services, as distinct from working for the insured, the policy
a contract of service. The question is technically invalid because it is a
above is an open question and does breach of the insured’s declaration
not put a timeframe on the answer. that there are not more than 10.
If, for example, the insured keeps a As with the proposal question, the
book of tried-and-trusted LOSCs, the statement does not qualify a timeframe
number of which is 76 at the time of for 10 people working in the business
proposing for insurance, that could and, therefore, it is an unsatisfactory
be the answer. However, the prudent and potentially dangerous statement Similarly, with BFSCs: ‘Do you
underwriter wants to measure how for the insured to accept. employ bona fide subcontractors? If
many LOSCs are at risk on any one day The statement ought to say, if it is so, how many? Do your payments to
of the policy year. The answer might intended, ‘no more than 10 LOSCs are bona fide subcontractors exceed 25%
be impossible to predict. engaged on any one day’ across all of your revenue?’ What is the prudent
Some insureds may keep locations. That might be too restricting insurer seeking to find out? A prudent
34 sophisticated accounting records for the insured and have to be insurer would know that but an error
that allow them to trace the number negotiated but it does create certainty in the question can have repercussions
of LOSCs on various sites at any of what the underwriter has in mind. in a court of law. Errors can be avoided
by using clearly worded questions.
Incidentally, the insured will engage
BFSCs, not employ them.

THE APPLICATION OF GOOD FAITH

The typical contractor/tradesman
insured is unaware of the technicalities
of insurance and of law concerning
responsibility for subcontractors.
Insurers are acutely aware of the
hazards that subcontracting brings
to the insured and can reasonably be
expected to ask questions that allow
them to assess the merits of the risk.
An insured should be aware how to
answer application/proposal questions.
What is the insurer reasonably seeking
to know? The fewer and the shorter
the questions asked of the insured/
proposer, the less importance will
be attributed to those questions by
the proposer. When, and if, a claim
arises it can become a costly, time-
consuming legal investigation at the
insured’s expense. ●

Roger Flaxman is executive chairman

ISTOCK

of Flaxmans

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 BUSINESS PLANNING

A
s we move into the
second half of 2025,
the time has come to
start thinking about
what we plan to
achieve in 2026.
Our business planning process has
evolved dramatically during the past
couple of years into a more strategic,
inclusive and impact-driven exercise.
The focus is no longer just on setting
goals – important as that is – but on
aligning every initiative with our
broader value framework and ensuring
that our finite resources are precisely
targeted towards achieving our mission.

BLUEPRINT FOR
At the heart of our planning cycle
is our public value model – a guiding
framework that ensures all our

PURPOSEFUL
activities contribute meaningfully
to advancing our member offer
and achieving our wider goals and
ambitions. This model, coupled with
the clear direction set out in our
Strategic Plan 2023-27, is again serving
as the foundation for our prioritisation
and decision-making this autumn.
PROGRESS 35

Importantly, we have no need to As planning begins for 2026,

start from scratch in this planning
phase. Rather, we will build on the
Chris Shadforth explains how the CII is
extensive groundwork laid this building on the groundwork of recent
year. That includes continuing our
work to reimagine our learning and years and why member input remains
qualifications framework through
our Professional Pathways priority;
key to shaping the future
finalising and transitioning to our
new Corporate Chartered status rules;
and completing our new, modern, increasing demand among regulators us your views on where we might
membership proposition. and other policymakers around the concentrate some of our efforts in
We also have more work to do to fully globe for our flavour of standards, 2026. Whether it’s about our future
weave the ‘golden thread’ that is our professionalism and trust. membership model or an idea for work
Professional Map through everything We recognise, however, that we do we might undertake to support the
we do, while further simplifying and not have a monopoly on great ideas. development of aspiring professionals,
standardising our processes and tech We are a membership body and we we want to hear from you. You can find
estate, reimagining workflows to be want to involve our members in our the survey through the QR code below.
more efficient and automated. planning process. As such, we will be Ultimately, ours is a shared goal,
asking our 51 local insurance institutes between the CII and its members,
THOUGHT LEADERS and 26 PFS regional committees for to build and maintain public trust.
We already have ideas for 2026, their input. We’ll be seeking feedback With your help, we look
and expanding our sector thought at and around our AGM in October. forward to setting the
STUART KINLOUGH / IKON IMAGES

leadership will be a key priority We’ll also be speaking with our stage for a purposeful
– enabling us to engage more 30 Goodwill Ambassadors across and productive 2026. ●
stakeholders and gain ever greater Asia, Africa, and the Middle
influence from our outputs. We also East for their thoughts. Chris Shadforth is
anticipate that our work will extend In addition, we would like to invite communications director of
further beyond the UK, as we meet the you to complete a short survey to give the CII Group

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 P R O F E S S I O N A L STA N D A R D S

THE ROAD TO
CONSUMER
TRUST
36

FCA Consumer
Duty Board
Roundtable: Reports:
Roundtable: Professional Good practice and
Consumer Duty Standards in the areas for
Board Reporting Consumer Duty Era improvement

The Road to
Consumer 2024 JUL SEP DEC
Trust
timeline

CII White Paper: Report:

Consumer Duty Professional
Board Reporting Standards in the
Consumer Duty Era

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 P R O F E S S I O N A L STA N D A R D S

One year into the Road to Consumer in the series: Consumer Duty Board
Reporting – A Year On. This gave us
Trust campaign, Adam Harper shares an opportunity to reflect on how

insights from roundtables on Consumer far firms have progressed in the last
year, where challenges remain, and
Duty, vulnerability and outcomes – to gather views from the collection of
representatives from across the sector,
and looks ahead to what’s next regulators and consumer advocates.
For both the July 2024 and July
2025 roundtables, we conducted a
survey to capture further insight and

I
t has been a year now since thought leadership activity. We’ve help shape future guidance. This gave
we held the first in our convened a further three roundtables in us a clearer view of where firms feel
ongoing series of roundtable September 2024, March 2025 and May they’ve made progress – particularly
events aligned with our Road 2025, covering: in terms of the data being used – as
to Consumer Trust campaign. ● Professional Standards in the well as how they’re adapting to
Back in July 2024, we kicked Consumer Duty Era the challenges of measuring and
the series off with a session focused on ● Managing Vulnerability in Insurance delivering outcomes.
the challenges firms face in preparing ● Unlocking Outcomes: Data Sharing We will be publishing a detailed
their first annual Consumer Duty Across the Distribution Chain view of the insights, along with the
Board report. This session led to the roundtable members’ interpretation
publication of the CII’s white paper: These sessions brought together of them, in our forthcoming report
Consumer Duty Board Reporting, which regulators, consumer advocates, from the session.
offered a series of recommended and sector leaders. We’ve produced Looking ahead, our next roundtable
actions firms should consider to summaries of the discussions and is already planned. On 24 September, 37
strengthen their first reports. continue to develop guidance we will be exploring AI and Vulnerable
Since then, the UK Financial Conduct and support resources based Customers, further building on the
Authority has published its own on the insight gathered. themes of the campaign.
review of firms’ inaugural submissions, As the timeline below shows, this We are welcoming feedback on the
highlighting examples of good practice has been a consistent and evolving campaign and the guidance resources
as well as areas for improvement – programme of work. we’ve published. Please visit:
much of which overlaps with the forms.office.com/e/cVsAvF5mhM●
recommendations in our white paper. FIRM PROGRESS
SHUTTERSTOCK

Since the first roundtable, we’ve Recognising all that has passed in the Adam Harper is executive director
remained committed to placing intervening year since our first event, of strategy, advocacy & professional
vulnerability at the centre of our in July we hosted the fifth roundtable standards at the CII

Roundtable:
Roundtable: Unlocking Roundtable:
Managing Outcomes: data Consumer Duty Roundtable:
Vulnerability in sharing across the Board Reporting - AI & Vulnerable
Insurance distrubution chain a year on Customers

2025 MAR APR MAY JUN JUL AUG SEP

FCA report: Report: Report: Report:

Firms' treatment Managing Unlocking Consumer Duty
of customers in Vulnerability Outcomes: data Board Reporting -
vulnerable in Insurance + sharing across the a year on
circumstances Webinar held distrubution chain
- review in May

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 P R O F E S S I O N A L STA N D A R D S

T
he Commonwealth professionals and expertise across all disparity of geography, legal systems
Insurance Forum (CIF) 56 Commonwealth countries – many and risks,” says Zulueta. “Issues in
was founded in 2019 to of which are small states or small, Canada will be very different to those
address a glaring gap: the developing island-nations, often facing in the Caribbean or Africa.”
absence of any coordinated severe exposure to natural disasters and Yet this diversity is also what makes
Commonwealth-wide climate-related risks. the Forum’s role so valuable. As he
initiative focused on insurance. “We work with all aspects of the puts it: “We act like an old-fashioned
The idea emerged from a conversation insurance market and the educational switchboard – our ability to connect is
between Francis de Zulueta and Robbie market to promote all aspects of insurance possibly one of our greatest attributes.”
Lyle – two insurance professionals with wherever we can,” Zulueta explains. The Forum cannot arrange insurance
more than four decades of experience Lyle’s own connection to the itself but it offers signposting and
in the London market – who were Commonwealth dates back to 1992, when guidance to those looking for
surprised to discover that insurance he was asked to help establish export support, from Lloyd’s brokers to
had been largely overlooked by the credit insurance programmes for South local coverholders.
Commonwealth Secretariat. Africa’s transitional government. “I was “There are 380 Lloyd’s brokers
“We went to the Commonwealth head fascinated by the Commonwealth,” he and more than 4,000 coverholders
office in London to discover what, if says. “In 2005, the World Bank asked worldwide,” Zulueta explains.
anything, the Commonwealth did about me to organise a pilot programme “Many are looking at areas like
insurance,” recalls Zulueta. “The answer of parametric trigger insurances for cyber or flood insurance, risks that
turned out to be nothing. So, we proposed small island states such as those in the are underwritten by experts with
forming an operation to promote all Caribbean and Pacific.” niche knowledge. If someone wants
aspects of insurance.” This experience fed directly into the to become a coverholder in an
That conversation laid the groundwork CIF’s work. One of the Forum’s early underserved region, that’s something
for the formation of the CIF. goals was to identify common challenges we can help them explore.”
38 The pair also approached the CII and, across these diverse nations. Despite wide
as a result, the CII became an accredited geographical and economic differences, MAKING AN IMPACT
member of the Commonwealth for the there are clear shared themes. As Zulueta Looking ahead, the Forum aims
first time since its founding in 1912 in puts it: “When we were drawing up to extend its reach by building a
the category of Professional and Civil the scope of the CIF, the list included broader network of partners and
Society Organisations. “It was a very sustainability, natural disaster risks, ambassadors while attracting new
natural fit,” Zulueta adds. “The CII and climate change, distribution strategies, sponsors and expanding its role as a
the Commonwealth, because of their good governance, youth engagement, trusted point of reference. “We’d love
antiquity, overlap quite significantly in IT, innovation, and connectivity with to see more engagement, from
terms of operations.” other professions.” insurers, professionals and even
But the size and diversity of the global businesses who see the value in
PROMOTING INSURANCE Commonwealth – home to 2.5 billion supporting this work,” says Zulueta.
At its core, the Forum is a network and people – also presents a key challenge. “The challenges are complex but
knowledge hub, connecting insurance “One of our major problems is the the opportunities to make a difference
across such a diverse group of nations
are immense.”

CONNECTING THE To listen to an episode of The Journal

Podcast featuring the CIF, visit:
SHUTTERSTOCK

thejournal.cii.co.uk/podcasts ●

COMMONWEALTH Luke Holloway is editor of The Journal

The founders of the Commonwealth

Insurance Forum explain how it
connects insurance expertise across
the 56 member nations – and the
challenges it’s tackling

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 CLAIMS COMMUNITY

EVOLVING
on key topics, including how to write
strong entries for market awards.
We are proud to be supporting
the CII and are looking forward to

PROFESSION
participating in the Shaping Futures
Conference in London on 1 October.
A personal highlight this quarter was
attending the CII Network Conference
in June at Cameron House, alongside
Richard Napoli provides an update on the the chairs of the Underwriting and
Broking Communities. I’m always
work of the CII Claims Community board as humbled by how many people
voluntarily give their time and energy
we enter the second half of the year to support our profession – those at the
conference represent just a fraction of
that wider community.

I
t’s July already – time really the CII’s final position, which urges the I took part in a breakout session
does fly! FCA to reconsider. focused on how the Community
As we move into the second Regardless of the outcome, we boards can better support and
half of the year, I’ve been should all continue to hold ourselves inform the CII’s mission to raise
reflecting on the sheer pace to higher standards. I take comfort professional standards and increase
and complexity of change in in knowing the CII shares this its influence. More on that soon.
the world. With global events like the view. At my organisation, we will
war in Ukraine, the advance of artificial continue to exceed the minimum CPD GET INVOLVED
intelligence (AI), extreme weather expectations – because we know that Finally, a reminder that the Claims 39
and political developments such as a better-informed team delivers better Community is your community. We
Trump’s campaign and proposed outcomes for clients. want to support you and that starts
voting-age changes, there’s more for with listening. Please do share your
us as insurance professionals to stay OUR COMMUNITY ideas, suggestions, or topics you’d
informed about than ever before. When not thinking about whitepapers, like us to cover. You can also join
One topic I’ve followed closely the Claims Community board has the conversation on the CII Claims
this year is the Financial Conduct been busy elsewhere. We’ve published Community LinkedIn page. ●
Authority’s (FCA) consultation content on claims fraud, the sunken
on simplifying insurance rules – gold of the SS Islander, AI in insurance, Richard Napoli is chair of the CII Claims
particularly the proposal to remove the and more. We’ve also hosted webinars Community board
requirement for insurance professionals
to complete a minimum of 15 hours of
training and continuing professional
development (CPD) annually.
As someone leading a claims
function, I feel strongly that this
would be a backward step. What sets
us apart is our knowledge, skill and
professionalism. It’s simply not possible
to deliver a competent service without
a strong, up-to-date understanding of
the field you operate in.
In a constantly evolving landscape,
our knowledge must evolve
too. Removing mandatory CPD
requirements risks weakening the
foundations of professional practice.
SHUTTERSTOCK

The Claims Community board was

invited to feed into the CII’s draft
response to the FCA and I fully support

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 CLAIMS - SUBSIDENCE

CRACKS IN
40
CONFIDENCE
After an unusually dry spring, insurers are bracing for
a fresh wave of subsidence claims. With early signs of a
surge already appearing, the months ahead could prove
testing for the claims sector. Liz Booth reports

A
fter the driest and reported that claims for subsidence such as Victorian terraced houses, are
warmest Spring relating to domestic properties rose by particularly vulnerable due to their
on record, it is no about 300% in volume and 350% in relatively shallow foundations.
surprise that property value, the highest quarterly rise since
insurers are on records began. CLAIMS EVENTS
high alert for rising The ABI added that in 2018, Previous surges in subsidence claims
subsidence claims. Sadly, it seems their commercial claims rose by more were seen in 1995, 2003, 2018 and
fears may be realised as, anecdotally, than 200%. While the value of many 2022. While each event had its own
insurers started to report a rise in claims for subsidence is modest, those characteristics, William Quibell, head
claims through the summer. involving underpinning often cost of claims at Aegis, says the overall
Claims are expected to peak in more than £100,000. pattern is familiar. “General domestic
September and October, so it is a case London and Southeast England form claims tend to come in first,” he says,
of wait-and-see, but if the most recent the primary region for subsidence “then more complex commercial
surges in claims are anything to go by, claims because of their clay-based claims follow later in the year.”
it could be a costly autumn. soils, which are subject to volume He warns that the dry conditions
SHUTTERSTOCK

For example, back in 2018, one of change. Trees intensify the problem earlier this year could signal more
the worst surges in recent times, the by dewatering clay soils through trouble ahead. “We had very little
Association of British Insurers (ABI) their root systems. Older properties, rain between February and April,”

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 CLAIMS - SUBSIDENCE

Dave Clare, operations director a little akin to planning permission.

at Structural Surveys, a QuestGates All of this, the pair agree, would
Company, adds that the situation has make life more complicated for
been made one step more complicated insureds and insurers trying to
by the Environment Act, which requires settle 2022 claims if 2025 proves to
the authority to notify those impacted – be another surge event. Added to
that, authorities have fewer trees
officers available and will be reluctant
to add these costs to their already
WHAT IS SUBSIDENCE? overstretched budgets. For example,
Geobear says that in 2018-19, the
Subsidence is when the ground
beneath a building sinks, pulling the government reported 2,674 cases
property’s foundations down with it. of solid wall repairs among its local
It usually occurs when the ground authority stock of 1.5 million homes,
loses moisture and shrinks. Reasons with 3,900 planned repairs for 2020.
for this include: If only half of these cases are
he explains. “That’s often a warning ● Prolonged dry spells that cause subsidence, at an average repair cost
soil to lose water
sign for subsidence and we’re already of £6,000, that equates to a £10m+
● Trees and shrubs, which can
starting to see those claims come in.” absorb significant volumes of annual subsidence repair bill. By
If the trend continues, it could be water from the soil. applying the government figures to
particularly difficult for those still the 2.5 million housing association
dealing with the aftermath of 2022. Less common are heave stock, annual subsidence repair costs
“Some of those claims will still be and landslip: could be anywhere between £20m
● Heave is an upward movement of
underway,” he says, “especially and £30m.
the ground supporting the building 41
where trees owned by the local
● Landslip is the movement of
authority are involved.” ground down an incline or slope, BETTER NEWS
When it comes to tree root-related trying to find a natural level. The good news is that, thanks to
claims, Quibell says the complexity lessons learned from past surges
depends on who owns the trees. “If the and advances in technology since
trees are on your own property, it’s 2022 – particularly in risk mapping –
usually more straightforward. If they’re insurers expect fewer, and possibly
on a neighbour’s land, it’s trickier – HOW IS IT CAUSED? less costly, claims this year.
but manageable. The most difficult Both Quibell and Clare stress that
cases involve trees owned by the local Subsidence can be caused by factors this is not a way of insurers “dodging”
authority. They typically want at least such as: claims, but rather a means of working
two to three years of monitoring before ● Soil type – clay soils in particular with insureds and build trust.
are vulnerable because they
they’ll take any action.” Finally, there has been a shift
shrink, crack and shift during hot,
dry weather, depending on their from insurers employing their own
water content. engineers to outsourcing this work,
● Trees and shrubs – where clay which actually enables claims to be
soils are present, vegetation can dealt with more quickly.
be an issue if they are close to
THERE HAS BEEN A SHIFT your foundations, as some species
As Structural Surveys’ Clare
explains: “We have structural
FROM INSURERS EMPLOYING absorb a lot more water, so dry
the soil out. engineers and surveyors onboard.
THEIR OWN ENGINEERS TO ● Local mining activity – old mines When there are fewer subsidence
claims we divert them onto other
OUTSOURCING THIS WORK, and former quarry or pit sites can
cause instability if the fill-in work and bring them back to
WHICH ACTUALLY ENABLES material collapses. insurance work as needed – insurers
● Leaking drains and water mains
CLAIMS TO BE DEALT WITH can wash away or soften soil.
don’t have that other work, so this is
a better way to ensure the skills are
MORE QUICKLY Sandy, gravely soils are the most
vulnerable to washing away. available when required.” ●

Source: ABI Liz Booth is contributing editor of

The Journal

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 CLAIMS – FRAUD

I
nsurance fraud is on the rise. deep fakes, cheap fakes and synthetic claims, with the most popular items
In September 2024, the Association media, which all make it alarmingly including mobile phones, TVs,
of British Insurers revealed that easy to manipulate photos, stage jewellery, laptops/tablets and watches.
more than £1bn of fraudulent accidents or create fake documents In addition, Aviva’s data revealed
claims had been detected in the that look authentic.” that commercial property fraud
last year, up 4% on 2022. Fraudulent activity extends across had rocketed, with an 89%
Insurers are taking significant steps to a range of personal and commercial increase. In particular, there was an
tackle the issue, including through the lines. Data released by Zurich UK in increase in the number of inflated
Insurance Fraud Charter, a voluntary March reveals that in the last year, claims for escape of water.
agreement between the government and the insurer found £94.79m worth of
the sector. Commenting on its launch, fraudulent claims. TACKLING FRAUD WITH AI
in October 2024, the Home Office said it Most of these (65%) were for minor The insurer also highlighted that
is designed to “identify loopholes in the slips and trips or more serious injuries, commercial motor insurance fraud had
insurance market, enhance collaboration totalling 1,996 claims worth £61.14m. risen by 14% and noted an increase
and criminal-justice outcomes, better Bogus motor claims were up too, by in ghost-brokered policies (where
understand the scale of the problem and 26%, totalling £14.3m, mostly related fraudsters sell invalid, non-existent
improve victim support”. to ‘crash for cash’ incidents. or fake policies). Aviva reports that
Karl Parr, claims technical and central In April, Aviva also reported it has invested in its counter-fraud
services director at AXA Insurance, and burgeoning fraud attempts. In 2024, it capabilities at the quote and application
non-executive director at the Insurance stopped more than 12,700 fraudulent stages, to help protect young drivers
Fraud Bureau, says: “In recent years, we’ve claims and blocked 98,000 fraudulent from ghost brokers online.
detected more fraudulent activity due to policy applications. It also noted a 14% Its other measures aimed at
the financial pressures people are facing increase in the number of claims it fraud-busting include a rolling
and the development of technology.” declined due to fraud. programme of awareness training,
42 He adds: “Fraud tactics are becoming The insurer says that exaggerated
more creative and accessible. Technology- or false claims for household items
driven fraud includes shallow fakes, now account for one in 10 fraudulent

THE RISING
COST OF
FRAUD With fraud on the rise and the use
of technology such as deep fakes
increasingly prevalent, Fiona Nicolson
discovers how insurers are fighting
back with tech of their own

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 CLAIMS – FRAUD

which delivered more than 3,300 says it’s not just fraudsters that are
hours of content to its claim handlers using cutting-edge tools to achieve
and suppliers during 2024. their goals: “Techniques are becoming
Commenting on NFU Mutual’s MACHINES CAN ONLY TAKE US SO FAR. more sophisticated but so is the
fraud training, David Phillips, technology we use for detection.”
claims validation technical manager
CLAIMS HANDLERS ARE SO IMPORTANT AI is enhancing customer experience,
at the firm, says: “Our claims FOR DECIDING THE RIGHT CASES TO as well as helping fend off fraudsters,
handlers are better trained and more
experienced than ever. They are able
INVESTIGATE AND REPUDIATE, USING says Katie Davies, Ageas UK director
of underwriting services and fraud:
to detect and respond to fraud very TECHNOLOGY TO HELP THEM MAKE “We have adopted AI-supported
SMARTER AND QUICKER DECISIONS
SHUTTERSTOCK

quickly, without compromising models to assist with the detection of

on the customer experience. misrepresented policy applications and
“Those working in counter- claims, as well as creating a frictionless
journey for genuine claims – leading
to quicker settlement times and freeing
up our claims experts to concentrate on
fraud teams now see their role the more complex and involved cases.”
as a great opportunity to test Phillips reports that NFU Mutual
themselves technically and also to is also applying AI: “We have begun
do something worthwhile, namely integrating AI and machine learning
protecting our customers.” into our counter-fraud strategy,
Technology, including AI, is at the including predictive-analytics
forefront of the war on fraud. Scott models, natural language processing,
Clayton, head of claims fraud at Zurich, network analysis and image forensics,”
he explains. 43
However, human skills remain
invaluable. “Maintaining consumer
trust is critical, so we ensure that
AI outputs are always reviewed by
experienced handlers and that decisions
are explainable,” he says. “Machines
can only take us so far. Claims handlers
are so important for deciding the right
cases to investigate and repudiate,
using technology to help them make
smarter and quicker decisions.”
Parr says that effective punishment of
the crime is crucial too: “Technological
innovation alone isn’t enough to
ensure we protect our customers.
Leniency in sentencing and a
reluctance to send convicted fraudsters
to prison may weaken deterrence.
Strengthening the legal response and
ensuring appropriate consequences are
vital components of a comprehensive
fraud-prevention strategy.”
Teamwork is vital, concludes Parr:
“Combating fraud today demands
cutting-edge technology and a
collaborative approach to stay one step
ahead of increasingly sophisticated
criminal activity.” ●

Fiona Nicolson is a freelance journalist

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 P R O F E S S I O N A L STA N D A R D S

A RAISING
t the heart of the
CII’s work is a
commitment to
professionalism
– built on both

THE BAR
technical competence
and strong ethical foundations. The
Professional Standards Committee
(PSC) plays a central role by supporting
the development and maintenance
of standards, overseeing the Code Three new members of the Professional
of Ethics, handling complaints
and disciplinary matters, as well Standards Committee explain why building
as shaping policy and continuing
professional development (CPD)
public trust remains central to the CII’s
that uphold public trust.
Earlier this year, three new members
mission and communication is key
joined the committee: Chris Cowton,
emeritus professor at the University to contribute to economic and social Naturally, conversations about
of Huddersfield and a leading good, but only if they’re actively professional standards happen during
academic in financial ethics; Diane maintaining and developing their very busy days. That’s why it’s so
Maxwell, independent consumer standards. The PSC plays a vital role in important the value of standards is
representative with experience across supporting the board and helping the understood, but also that they’re
pensions, financial services and CII do exactly that.” clear, achievable and workable within
44 public policy; and Neil Freshwater, For Maxwell, it was the consumer business frameworks.”
group integration director at Aviva, voice that motivated her to join. “As an Freshwater highlights the need for
bringing more than 30 years of independent consumer representative, alignment across the sector. “In the
international insurance expertise. it’s essential that the consumer last 15 to 20 years, I’ve worked
For all three, belief in the value of perspective is heard and understood. in large insurers where the CII’s
professional standards – and the CII’s When trust breaks down, we see objectives on professional standards
role in supporting them – was central underinsurance, financial vulnerability align closely with company values
to joining the PSC. and difficulties attracting talent. and behaviours. One question for
“When I joined the insurance Consumer trust really matters – it’s not me is how we ensure alignment
industry as a young actuarial trainee just a nice-to-have.” without duplication. I’d like to think
in 1990, the world was very different,” there’s some common ground.”
says Freshwater. “Back then, putting CHALLENGES AHEAD For Cowton, the challenge lies in the
the customer first felt like a distant idea. All three agree that while professional nature of the profession. “Trust is even
Now, I see people genuinely passionate standards are crucial, keeping them more important here. The products and
about doing the right thing for their front of mind in a fast-paced, complex services are often complex and people
customers – it’s become central to environment is a challenge. don’t necessarily want to spend time
what we do. That’s why promoting “Time and bandwidth are real educating themselves.
professional standards, ethics and issues,” says Maxwell. “Businesses
values really resonates with me.” have to navigate so much – geopolitical
Cowton echoes this from both an uncertainty, cybercrime, climate
academic and governance perspective. change, artificial intelligence (AI) –
“Professional bodies have real potential all amid a tough economic climate.

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 P R O F E S S I O N A L STA N D A R D S

“It’s what economists call when people need us, matters, but not if it leaves people
a ‘credence good’. We need we’re there. Sadly, there’s behind. I hope to bring a broad,
to ensure members are both still a widespread belief international, consumer-focused
competent and ethically that we’re there not to pay lens to the committee.”
aware and that we support claims. Yet everything I Finally, Cowton emphasises that
their development over see in executive meetings being a member of a professional
time,” he says. Chris Cowton is that our job is to pay body isn’t just about passing
Building public trust valid claims. So, trust and exams; it requires an ongoing
remains central to the perception – and making commitment to supporting the
CII’s mission and the new sure perception and reality profession, raising standards and
PSC members believe align – is really important.” building trust for its future.
communication is key. “I want to bring a perspective
Poor messaging, they say, AIMS AND ASPIRATIONS on developing the insurance
can erode confidence and Each member brings profession over time, in terms
understanding. Diane Maxwell a distinct lens to the of both technical competence
“I’m not sure the committee alongside a and values-based behaviour,”
sector is always great at shared sense of purpose. Cowton says. “It’s not something
communicating,” says So, what are they hoping you do just after passing exams.
Maxwell. “Sometimes to achieve for the CII, its A professional body is something
communications are opaque members and the public? you’re a member of, belong to, and
and hard to fathom. People Freshwater wants to help steer.”
disconnect, thinking: see the CII’s influence In a rapidly evolving profession,
‘I can’t understand this, this Neil Freshwater grow. “For me, it’s about maintaining high standards is more
isn’t for me.’ They tend not increasing the relevance, important than ever. With their
to ask questions because impact and prominence combined insight, experience and 45
they lose confidence. Then they don’t of the CII and, in particular, the commitment, the new committee
understand some decisions or what professional standards we all members are determined to shape
they’re buying. Great communication stand for.” a future where professionalism,
matters – and I don’t think it’s that Maxwell’s focus remains firmly trust and public confidence remain
hard. We need to lose much of the on the consumer. “One of my big central to everything the CII does.
jargon and remember that most people questions is: does our digitalisation For more information on the
don’t live and breathe this stuff.” serve the sector but also the customer? PSC, visit: www.cii.co.uk/about-
Freshwater agrees, pointing out Too often someone ends up stuck in us/professional-standards ●
it’s not just clarity but perception an automated phone system or buys
GETTY

too. “We need more proof points that the wrong product online. Innovation Luke Holloway is editor of The Journal

thejournal.cii.co.uk / The Journal / August - September 2025

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 EDI

T
he theme for this underused talent, accelerate
year’s International professional advancement and build
Day of the Girl Child, leadership teams that better reflect
‘Digital generation. Our the world we serve. The result is a THE INSURANCE SECTOR THRIVES
generation’, shines a stronger, fairer profession, where
spotlight on the need diverse thinking drives better
ON STRATEGIC THINKING, RISK
to ensure girls and women are not decisions, better outcomes and a MANAGEMENT, AND CLIENT-CENTRIC
left behind in a rapidly changing
digital world. For the insurance
more sustainable future for all. LEADERSHIP – ALL AREAS WHERE
profession, it’s a timely reminder of PREPARING TOMORROW’S WOMEN EXCEL
the importance of creating gender- LEADERS
balanced leadership for a stronger, Gender balance is no longer a ‘nice
more resilient sector. to have’ – it’s a strategic imperative.
At ISC Group, we exist to be a Companies with diverse leadership correlates with a 3.5-basis-point rise
catalyst for lasting cultural change teams consistently outperform in return on assets the following year.
across the global insurance profession. their peers in innovation, risk Furthermore, improving senior female
We help insurance organisations grow management and profitability. representation by five percentage
their female leadership pipeline – According to BlackRock’s Lifting points leads to a 3.6% drop in staff
driving cultural change, improving Financial Performance by Investing in turnover in year one and a further
retention and enhancing innovation. Women, published in November 2023, 4.6% drop in year two.
By championing greater leadership increasing female representation
opportunities for women, we unlock by just one percentage point

46

GENDER
BALANCE IN
THE DIGITAL
GENERATION Carmen Powell explains why
gender balance is the future
of insurance, in recognition
of the International Day of
the Girl Child 2025

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 EDI

The insurance sector thrives on making a difference in insurance, experienced leaders offer invaluable
strategic thinking, risk management while also welcoming young talent insight and expertise. By fostering
and client-centric leadership – all and supporting their development intergenerational learning, we
areas where women excel. Women from day one. enable all women to grow, share and
bring strong emotional intelligence, thrive together.
high levels of collaboration and a long- THE ROLE OF ISC GROUP As we mark the International
term view that builds trust, improves As the world’s largest independent Day of the Girl Child, we reaffirm
client retention and fosters inclusive business network for women in our commitment to changing the
team dynamics. insurance, ISC Group is helping the narrative for the next generation.
With the sector facing talent industry rise to this challenge. In a profession where digital
shortages, particularly at senior levels, We are building a stronger, transformation and complexity are
attracting more women not only helps fairer future by advancing women accelerating, gender-balanced and
fill the talent gap but also brings fresh into leadership and amplifying multigenerational leadership isn’t just
perspectives and fuels innovation. their voices in decision-making. the future – it’s essential now.
Equally important is inspiring and Through our network of more Let’s invest in women of every age,
supporting the next generation of than 10,000 members and over embrace our digital generation and
young women entering the profession. 100 corporate partners, we deliver secure a more resilient, profitable and
That’s why, at ISC, we are showcasing global programmes, cross-industry inclusive insurance sector for all. ●
successful female role models in collaborations and leadership
exciting insurance careers through our pathways that empower women to Carmen Powell is global CEO
project, Cool Careers. We hope this lead with confidence of ISC Group
will encourage more young women to and purpose.
consider a future in the sector. We’re not only helping women
This isn’t just about filling current access the digital age – we’re
gaps – it’s about laying the foundations championing every generation of 47
SHUTTERSTOCK

for a more balanced and forward- women working together. Younger

looking profession. We want to women bring digital-first knowledge
highlight the talented women already into the workplace, while

thejournal.cii.co.uk / The Journal / August - September 2025

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 R E G U L AT I O N

PREMIUM
PRESSURE

1
New FCA studies highlight
pricing, claims and premium
finance issues, while UK
Government consultations
target senior management
rules and the redress system

A
t the end of July, the UK Financial Conduct
Authority (FCA) published four studies on
48 retail insurance.

2
The first study analysed the factors
behind recent increases in motor
insurance premiums, concluding that
higher claims costs – particularly for vehicle and property
damage – were the main driver. Its recommendations
included reducing costs through stronger fraud prevention,
improved road safety, tackling car crime and cracking
down on uninsured driving.
The second study evaluated the FCA’s pricing reforms in
motor and home insurance. It found that ‘price walking’ –
the practice of gradually increasing premiums for existing Senior management and certification regime review –
customers compared with new customers – is decreasing, This regime governs the behaviour of senior managers
and that renewal customers are now getting a better deal. (e.g. CEOs, CFOs) and certified individuals such as
The third, a review of claims handling in home and travel financial advisers and mortgage brokers, but not
insurance, identified both good and poor practices. Two insurance brokers. The consultation is considering
main concerns were: ways to reduce the burden of the certification regime,
● a lack of clarity over when claims for storm damage including reviewing the number of roles within its scope.
should be paid.
● the use of cash settlements for vulnerable customers, FOS and redress review – Seen as vital to public trust,
who might benefit more from services procured directly the redress system ensures fair outcomes for customers
by insurers. and highlights emerging issues. The UK government
The fourth study was an interim update from the market proposes aligning Financial Ombudsman Service
study on premium finance in home and motor insurance, judgements more closely with FCA rules, improving the
which found a wide range of interest rates on monthly handling of ‘mass redress events’, and introducing a
premiums – from 0% to over 30%. The FCA will carry out 10-year limit for complaints on most products, excluding
further work to assess whether these rates are applied fairly longer-term products such as pensions, long-term
but will not introduce a price cap. investments and mortgages. ●
SHUTTERSTOCK

On 15 July, the Chancellor’s Mansion House Speech was

accompanied by a series of government consultations. Dr Matthew Connell is director of policy and public affairs
Key among these for insurance were: of CII Group

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Q&A
STUDY
ROOM

This set of questions, courtesy of online CII training package

Insurance Assess, will test your knowledge of relevant
learning topics. Answers are at the bottom

QUESTION 1 QUESTION 6 QUESTION 8

Which of these organisations regulates In which of these situations is a freight In the context of Financial Conduct
the motor fleet insurance profession? carrier liable for loss or damage? Authority rules, travel claims must
The Association of British Insurers Act of God be handled…
The Financial Conduct Authority Any consequences of war As soon as reasonably possible
The Financial Ombudsman Bureau Insufficiency of stowage Immediately
The Financial Services Authority Insufficiency of packing or Promptly and fairly
incorrect address Within five working days
QUESTION 2
Which organisations are ancillary QUESTION 7 QUESTION 9
insurance intermediaries (AIIs) aligned How long can bondholders withdraw How many complaints about income
with under the regulatory regime? 5% of their original investment before protection did the Financial Ombudsman
Authorised agents incurring an immediate tax liability? Service receive in 2023/24?
Connected travel insurance providers 1 year Less than 700
Insurance intermediaries 10 years Just over 1,500
Insurers 20 years Just under 5,000
25 years More than 9,000
QUESTION 3 49
Which of the following poses one of the QUESTION 10
biggest climate change threats to the The driving offence conviction code CU80
general insurance sector? relates to which type of offence?
Crop failure Driving while uninsured
Decreased global temperature Driving while using a mobile phone
Floods Driving without due care and attention
Sea levels rising Speeding

QUESTION 4
For a home emergency cover, how many
days after inception is cover excluded?
10 days
14 days
21 days
7 days

QUESTION 5
What is normally the basis of cover for
home buildings policies?
Reinstatement value
Reinstatement value if the item is less
than three years old
Reinstatement value less 10% YOUR SCORE »
Reinstatement value less wear and tear
1–3 POOR 7–8 VERY GOOD
4–6 GOOD 9-10 EXCELLENT

ANSWERS
value. properties from climate change.
claims promptly and fairly. are settled on a reinstatement presents the highest risk to
phone whilst driving. 8C Regulated firms must handle 5A The majority of buildings claims 3C Storm and flood damage
10B CU80 relates to using a mobile 7C 20 years. policies inception. with intermediaries.
income protection. the protection of the goods. for the first 14 days from the 2C All in-scope AIIs are aligned
SHUTTERSTOCK

9A 635 complaints were about 6C Insufficient stowage available for 4B Cover is typically excluded 1B The Financial Conduct Authority.

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 OPINION

ABRAHAM HOLDER

THE LITTLE WINS

Abraham Holder reflects on the importance of small milestones as
he finds his way in the insurance profession

T
he little wins moments, you stop just doing
are often the apprenticeship and start
overlooked in growing into the profession.
the day-to-day The exams, like IF2, test
grind but they your knowledge – but the
can be a vital everyday tasks test your
reminder that you’re capable growth. And those small
– naturally. achievements matter even
As someone who recently more when you’re new to
passed the IF2 exam and is the job. It’s a good feeling to
approaching a year in the realise you don’t have to know
insurance profession, I can everything – you can keep
say it’s been a real learning learning and applying that
curve. I remember the first knowledge in new ways.
50 time I had to explain what an
MTA was to a client. I worried PASSING ON THE PRAISE
I might overcomplicate it – but If you’re further along in
I gave it a go. To my surprise, your career, please don’t
they understood and I ended underestimate how powerful
the call with a win under my your encouragement or
belt. It was a small moment advice can be to a new
but one that stuck with me. colleague. The things that
Quiet, unassuming wins like seem obvious to you might be
that have built my confidence a breakthrough to someone
so that insurance can start to feel like else. You could be the person who
second nature. helps someone secure one of those
At the start of the year, I was still little wins – just like others have done
unsure of so much. Even discovering for me.
what IPT or MTA stood for felt like THESE LITTLE MOMENTS And if you’re just starting out: track
learning a foreign language. As an your wins.
apprentice, walking into a room full SHAPE HOW YOU PERFORM Write them down if that works for
of professionals could have been
overwhelming – especially when AND WHO YOU BECOME you, or start a page in your notes app.
Whether it’s nailing a phone call,
I didn’t yet understand most of the
initialisms or know what a ‘churn rate’ PROFESSIONALLY learning a new system, or getting
positive feedback from a colleague –
was. But I’ve been lucky to learn from it’s all progress.
mentors who took the time to explain Everyone completes their continuing
things clearly – sometimes through professional development but this is
stories, real-world examples, or just by different. These little moments shape
listening when I had questions. how you perform and who you become professionally.
These small actions from others gave me the kind of Personally, seeing them all in one place has helped me
ILLUSTRATION: MATTHEW BRAZIER

knowledge that sticks – and that builds into wins. stay focused on who I want to be.
Here’s the thing about little wins: they’re rarely So, acknowledge your little wins – and give a hand to
glamorous. It’s the first time you speak up in a meeting, someone who might need one today. ●
confidently explain a policy condition, or when someone
asks you a question and trusts your answer. In those Abraham Holder is apprentice client adviser at Partners&

thejournal.cii.co.uk / The Journal / August - September 2025

50 Blog_AUG SEP 25_Cll The Journal.indd 50 13/08/2025 14:34

 Introduction to Data
Science & AI for Insurance
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This introductory-level course provides an overview of data tools and technologies.
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The course is delivered by the Southampton Data Science Academy.

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