The Voice of Insurance

Ep150 London: Creative when we need it to be, with John Sutton and Jonathan Tritton of Acrisure London Wholesale

Today’s guests are brokers - a London Market wholesale veteran and a rising star executive. John Sutton (CEO) and Jonathan Tritton (SVP) work together at Acrisure London Wholesale (ALW). The business does exactly what is says on the tin – it’s fast growing retail broker Acrisure’s London Wholesale operationIt’s almost five years since ALW was formed and for the incredibly acquisitive Acrisure group, it’s a rarity because it is a business that has so far done all of its growth organically. This is a really lively discussion and one that I think shows this business and the market where it operates in a very positive light. ALW is finding ways of serving its huge and growing retail, and now wholesale, network with product designed and built in London. It’s doing this through a combination of old school savvy and expertise and a youthful nimbleness and technological awareness that is refreshing to see.What’s more as the market has hardened across the board and already hard-to-place covers are becoming even harder to place this duo are adamant that the London Market is standing up and being counted and is rediscovering much of its old creativity and entrepreneurial spirit. NOTES One abbreviation. PV stands for  Political Violence.LINKSWe thank our naming sponsor AdvantageGo:https://www.advantagego.com/And our advertiser Bolton Associates:https://www.bolton-associates.co.uk/

Ep149 Adrian Cox CEO Beazley: High Risk & High Reward

I’m delighted to say that todays’ guest is a returning visitor and he returns very much the insurance executive of the moment. Adrian Cox is the CEO of Beazley which since we last spoke has cemented its reputation as the most dynamic and pioneering of the London-headquartered global specialty insurers and reinsurers. Late in 2022 Beazley raised fresh capital to deploy into the hard reinsurance market. It did this in an environment when almost nobody else could get financing away. And just as we were about to do the recording the firm announced it had placed the first ever Cyber cat bond. So perhaps understandably Adrian was absolutely buzzing in this episode. The firm’s core markets have all reset and Beazley’s positions within them look extremely attractive In this crackling podcast we cover the market resets in property reinsurance, specialty and cyber classes and where Beazley fits in with them, as well as the ongoing ESG transition, the prospects for rising tech efficiencies in insurance and the emergence of new ways of working in the post-pandemic world. LINKSWe thank our naming sponsor AdvantageGo:https://www.advantagego.com/And our advertiser Bolton Associates:https://www.bolton-associates.co.uk/

Ep148 Reinsurance Reset 2023 with David Priebe, James Vickers & David Flandro

Today’s podcast carries on where we left off after the State of the Reinsurance Market Special Episode which was released after Monte Carlo.We already knew this renewal was going to be difficult, but the subsequent intervention of Hurricane Ian stiffened reinsurers’ resolve further.The result was a bruising and often frustrating encounter. You should already know the headline numbers by now:Dedicated reinsurance capital shrank by the most since the global financial crisis of 2008 Global property catastrophe pricing was up 37% - the largest 1.1 increase since 1992And there was a 50% increase in retro pricing, which means this highest echelon of reinsurance is now 165 percent more expensive than in 2017The aim of this podcast is to put all of this into historical context, ask the big questions about who the winners and losers were and to examine what the change means for the 2023 outlook and the long-term strategic direction of the market and those who invest in it.To help me I have representatives from three of the top four reinsurance broking groups. David Priebe is Chairman of Guy Carpenter and brings experience and a global market view that few can match, although James Vickers Chairman of Gallagher Re International should certainly feel he is a peer.Finally David Flandro Head of Analytics at Howden brings his unique research-focused mind to bear and to give us a bigger macro take on what has been happening.A quick note. You must read Gallagher Re and Howden’s respective 1.1 reports as an essential accompaniment to this podcast. Both are hugely informative and insightful and are wholly complementary to each other Links to both are below.This was a bit more work than usual but I really enjoyed my three interviews and the subsequent time spent blending this highly accomplished trio’s thoughts together. I think it brings the renewals to life and will be useful for anyone wanting to navigate the re-set markets of 2023ABBREVIATIONS IRR: Invested Rate of returnEVA: Economic Value AddedD&F: Direct and FacultativeNOTES:David Flandro acknowledged the work of principal Howden 1.1 report author, Head of Research, Julian Alovisi.LINKSThe Howden report is called The Great Realignment:https://www.howdengroup.com/news-and-insights/the-great-realignment-2023The Gallagher Re report is called Market Turns:https://www.ajg.com/gallagherre/news-and-insights/2023/january/gallagher-re-first-view-market-turns/We thank our naming sponsor AdvantageGo:https://www.advantagego.com/And our advertiser Bolton Associates:https://www.bolton-associates.co.uk/

Ep147 Alastair Swift Head of CRB Global Lines WTW: The open-scissor market

Todays’ guest is a highly experienced broker. And since right now is a market absolutely made for brokers of his calibre and experience, in this podcast Alastair Swift and I get stuck straight into the reality of the global specialty insurance market and the ultra-hard reinsurance market.Alastair is Head of Corporate, Risk & Broking Global Lines of Business at WTW and is CEO of Willis Limited, so has a view of the state of play in London that is hard to match.Listen on and you’ll hear:How net lines and greater syndication are the order of the day as insurers’ outwards reinsurance renewals stallWhy the market is like an open pair of scissors – up where there are aggregation, and therefore reinsurance-related, issues and down where there aren’t.You’ll learn why clients have had enough, and alternatives such as captives and parametric solutions are booming.How the cyber market has stabilised and is ready to continue its exceptional growth.And why some insurers may choose to increase market share by absorbing higher reinsurance costs themselves and not passing them on. Alastair’s been on the show before and it shows through in his confidence and the concise way he answers all the questions I throw at himSo listen on for an intensely concentrated description of the state of the market today, right from the eye of the storm, with someone completely on top of their brief.LINKSWe thank our naming sponsor AdvantageGo:https://www.advantagego.com/

Ep146 Alex Blanco CEO Vantage Insurance: Seeking the intellectually curious and mentally ambidextrous

Today’s guest is Alex Blanco, CEO of Vantage Insurance. Alex has been dealt a rare hand in the insurance world, because he has had the chance to build something from scratch with no legacy. What would you do if you could start a specialist insurance business from a clean piece of paper, and in a pretty favourable insurance market environment?  What lines would you start with? How would you use technology? Would you stick to the E&S market or would you add admitted capabilities? How would you approach alternative distribution such as MGAs?Would you go international?These are the core questions at the heart of this podcast and Alex puts his multi-decade executive experience to providing the answers. Alex is a great guest and this is a really robust and far-reaching conversation. I can highly recommend a listen.LINKSWe thank our naming sponsor AdvantageGo:https://www.advantagego.com/

Ep145 Adrian Jones Partner HSCM Ventures: We need to reconsider the word Insurtech

Today’s guest is one of the smartest people in the insurance sector and I am really lucky to have been able to spend time talking to him fairly regularly over the course of the last few years. I first got to know him just as the whole insurtech movement started to really take shape in around 2016 to 2017 and ever since that time he’s always been open and honest about the way he appraised the new wave of technological investment sweeping through the industry. He never lost his critical faculties and never got caught up in the hype that defined part of that era. But that doesn’t mean he’s a sceptic either – he’s actually quite a rare animal – an enthusiastic but realistic adopter and promoter of better ways of doing the business of insurance.Today’s episode is one I am really pleased with because it does the job of a podcast properly. Over the years I have had many enlightening conversations with Adrian just like the one you are about to hear. But up until now I had never recorded one. So prepare yourself for a masterclass in what the smart money thinks about the state of insurtech. Embedded insurance, insurtech bubbles – whether they existed and whether they have now burst – how the hard reinsurance market will affect start-ups and even the very logic of the phrase insurtech itself are all addressed in the discussion. I’ll wager you’ll get more benefit from listening to Adrian for 45 minutes than you will from attending any 3-day Insurtech conference.LINKSWe thank our naming sponsor AdvantageGo:https://www.advantagego.com/
TRANSCRIPThttps://www.thevoiceofinsurance.com/post/ep145-adrian-jones-transcript--------The views expressed are the views of Adrian Jones as of the date hereof. Hudson Structured Capital Management Ltd. (“HSCM”) undertakes no responsibility to advise you of any changes. Neither the podcast nor any of the information contained herein constitutes an offer to sell, or a solicitation of an offer to buy, any security or instrument in or to participate in any trading strategy or investment vehicle. Past performance is not indicative of future results. There can be no assurance that any objectives can be achieved or are realistic in any given market condition. This podcast may contain forward-looking statements; such statements are subject to various risks and uncertainties. Forward-looking statements reflect our views as of such date with respect to possible future events. Actual results could differ – perhaps materially – from those in the forward-looking statements. The HSCM Public InsurTech Index (HPIX) tracks the price movements of a portfolio of common equity securities listed in the last 10 years by companies operating in the United States insurance sector with novel business models differentiated by technology. The HPIX components, currently 22 companies, describe themselves as having novel business models differentiated by technology. The Index components also meet certain criteria, defined in the Index Guideline (available at Solactive.com), concerning minimum size, length of public listing, geography, and certain other aspects of the business model. The chart illustrates the price movements of HPIX starting with an initial value of 100 on the first trading day of 2020.Solactive AG (“Solactive”) is the licensor of HSCM Public InsurTech Index (the “Index”). The financial instruments that are based on the Index are not sponsored, endorsed, promoted or sold by Solactive in any way and Solactive makes no  express or implied representation, guarantee or assurance with regard to: (a) the advisability in investing in the financial instruments; (b) the quality, accuracy and/or completeness of the Index; and/or (c) the results obtained or to be obtained by any person or entity from the use of the Index. Solactive does not guarantee the accuracy and/or the completeness of the Index and shall not have any liability for any errors or omissions with respect thereto. Notwithstanding Solactive’s obligations to its licensees, Solactive reserves the right to change the methods of calculation or publication with respect to the Index and Solactive shall not be liable for any miscalculation of or any incorrect, delayed or interrupted publication with respect to the Index. Solactive shall not be liable for any damages, including, without limitation, any loss of profits or business, or any special, incidental, punitive, indirect or consequential damages suffered or incurred as a result of the use (or inability to use) of the Index.For more information about HSCM, including risks and other disclosures, please refer to www.hscm.com.

Ep144 Talbir Bains Group CEO Volante Global: I’d rather lose doing the right thing than win doing the wrong thing

I think Talbir Bains is one of the most single-minded and driven people I have ever had on the show. He is also moving incredibly quickly. Since the last time I spoke to him back in 2020 his Volante Global business has grown premium substantially, found new ownership as part of the Acrisure Group and launched a Syndicate at Lloyd’s. I just had to get him back to make sure we kept up with all the things that have happened in the last 24 months.And I am really glad I did, because despite the apparent whirlwind surrounding him and his fast-growing business, it is Talbir’s rock-solid convictions that permeate every minute of this podcast. Volante is a business with a focus on underwriting profit that is bordering on obsession and five minutes with Talbir can leave you in no doubt that this company’s uncompromising philosophy and culture originates directly from him.Talbir has also been through a life-changing personal experience since we last met and that only heightened the intensity of talking to him face to face once moreI can’t help thinking we could all learn an awful lot not just from listening to what Talbir has to say, but by studying precisely what he has done to position Volante as an underwriting business that is so consistently highly rated and respected by its peers and stakeholders.Of course, living and breathing underwriting discipline is far easier said than done, so listen on and see if you can get some of Talbir’s passion and belief to rub off onto you. LINKSWe thank our naming sponsor AdvantageGo:https://www.advantagego.com/We also thank this Episode’s advertising supporter Oxbow Partnershttps://oxbowpartners.com

Ep143 Chris Cheatham Bold Penguin: Build out now because digital’s definitely working

Today’s guest is one of the original poster children of the Insurtech movement and has been applying technology to solve insurance problems since long before the phrase insurtech was coined. Back when the first insurtech conferences were getting started he was a highly sought-after speaker. If you listen today you’ll soon understand why. Chris Cheatham founded RiskGenius in 2012 and in 2020 that business was absorbed by fellow insurtech and online exchange Bold Penguin Very soon afterwards the enlarged Bold Penguin became part of the American Family Insurance group. Chris’s story is one of entrepreneurship and a path into insurtech maturity. Unlike many in the first wave and many of the speakers at those early conferences, neither RiskGenius nor Bold Penguin made any claim to be insurance disruptors intent on revolution and disintermediation. Instead these businesses were industry partners, looking to remove friction and pain points, largely for existing insurance entities. As the tech funding climate cools it is their model that is the one gaining traction and adoption from some of the most traditional elements in the insurance value chain.Today’s discussion is really valuable because it mirrors the growing maturity of the insurtech scene and shines lots of light on where things are heading in the short, medium and long term. Chris has been on a remarkable journey – and from this encounter I feel he’s just getting started. No matter where you are sitting in the insurance value chain I think the next half hour will be a very valuable investment of your time.NOTES: Chris mentioned a cool electronic paper tablet called a reMarkable. It does indeed look really cool – any remaining paper junkies should have a look: https://remarkable.comLINKSWe thank our naming sponsor AdvantageGo:https://www.advantagego.com/We also thank this Episode’s advertising supporter Oxbow Partnershttps://oxbowpartners.com

Ep142 Luke Tanzer CEO RiverStone International: Freeing live underwriters to work the hardening market

Today we have a live market where reinsurance capacity has dried up and investors are utterly fatigued or are openly on strike, and so every dollar of spare capital feels twice as valuable as it did last yearBut at the same time we have a highly sophisticated legacy market that is well capitalised and, because of its relatively solid recent track record, has access to more funding if it needs it. Also legacy infrastructure is probably better equipped to handle anything the live market can throw at it than at any time in its history. Surely in today’s market every live dollar than can be freed up to write new business at tomorrow’s better prices, will be freed up?Now is clearly a great time to be talking to today’s guest. Luke Tanzer is CEO of RiverStone International, a business at the heart of the Lloyd’s and UK company legacy market. RiverStone has a new owner, fresh capital and focus and ambitious international expansion plans.Luke is one of the most engaging members of the legacy community and if you haven’t met him before, I think you’ll find him incredibly insightful and refreshing. And if you still have any outdated ideas about what run-off is in the 2020s, a few minutes in Luke’s company will set you straight.Given what is happening in the live market, Luke and his peers’ profiles are very likely to be raised a notch or two in the next couple of years as excess demand seeks out his capital and expertise, so get ahead of everyone else and listen on.NOTESA couple of unexplained abbreviations.RITC is reinsurance to close, a key part of the Lloyd’s three-year accounting process.DD is of course due diligence.LINKSWe thank our naming sponsor AdvantageGo:https://www.advantagego.com/We also thank this Episode’s advertising supporter Oxbow Partnershttps://oxbowpartners.com

Ep141 Building a bigger welcome mat: Matthew Moore and Caroline Wagstaff of the LMG

Normally I have C-suite guests on the programme who are working for companies with tens, hundreds and sometimes low thousands of employees. They generally write between the tens, hundreds of millions or single-digit billions in annual gross premiums.But today’s guests are working on behalf of a marketplace that directly employs 47,000 people and many more offshore.It writes well over a hundred billion dollars in gross premiums and that is a number set to rise sharply as the market continues to harden. This is because together CEO Caroline Wagstaff, and Chairman Matthew Moore, run the London Market Group, the LMG. The LMG is the London Market’s trade body bringing together Lloyd’s and its constituent underwriting businesses, the London company market and the brokers to represent the whole London insurance and reinsurance Market to the outside world and to lobby on its behalf.London is facing a demographic squeeze where its stock of over 50-year-olds exceeds its number of those under the age of thirty.In this lively episode Matthew and Caroline recount the nature of this problem and, more importantly, articulate the plan they have formulated to address it. We also talk about the prospects for the UK regulator to have to take the market’s competitive position into consideration when making and implementing new rules as key financial services reform legislation makes its way through the UK Parliament.The agenda includes the prospect of the UK seeking to develop a ‘red carpet’ welcome to rival that of more nimble and proactive jurisdictions such as Bermuda and Singapore. The continuing iterations of ongoing work to further the London Market brand under the London Makes it Possible banner are another topic of discussion.Matthew and Caroline are passionate and really engaging speakers and this episode will give you a great sense of where the market’s collective marketing and lobbying efforts are being channelled both now and in coming years.LINKSWe thank our naming sponsor AdvantageGo:https://www.advantagego.com/We also thank this Episode’s advertising supporter Oxbow Partnershttps://oxbowpartners.com