Recently the Assembly Finance Committee, following a recommendation from the Consumer Council, agreed to set up an inquiry into the high cost of insurance in Northern Ireland.

Joleen Cunningham from the Consumer Council told the finance committee that the establishment of the new Department of Justice could have an impact on lowering the cost of insurance in Northern Ireland. Ms Cunningham further added that Car insurance costs 80% more in Northern Ireland – an average of £282 extra than in Britain.

The Consumer Council said that NI households pay an average of £278 more for all their insurance than in the rest of the UK.

We then had Mitchel McLaughlin MLA accusing the Insurance Industry of “playing fast and loose” with NI consumers and said there was a lack of competition.

Mr McLaughlin then added the comment “all insurance companies were dealing with a small number of clearing houses in Northern Ireland”

On the other hand The Financial Regulator stopped a major player in the Insurance Market in Northern Ireland from trading because they are too cheap and have lost money in the last 2 years. They were allowed to go back underwriting Private Car only after increasing their rates by a minimum of 20%.

They have been told they cannot go back into other lines of business until they stop underwriting Loss leaders. Press reports said that they needed to increase commercial rates by 3000%. I take that with a large pinch of salt but think it is nearer 100%.

So who is right? Lets look at THE FACTS

“All insurance companies were dealing with a small number of clearing houses in Northern Ireland”

Mitchel, a small point, Banks use clearing Houses not insurance companies. If you are talking about Insurance Brokers there are 124 Registered Insurance Brokers and Agents resident in Northern Ireland and several more based in GB (Lloyds and London Market) and RoI who offer facilities in Northern Ireland.

“Lack of competition.”

If the rates the Consumer Council say are charged in Northern Ireland “an average of £282 extra than in Britain,” you could not get office space in Belfast with all the Insurance Companies trading in the UK setting up shop. After all we are only an hour from London, use the same currency and speak the same language – or roughly the same language

I am no supporter of Aggregator sites but I took the opportunity to go on GoCompare.com. For both Household and Motor Insurance I was given no less than 21 alternative quotes. I changed the address getting quotes for the same risk in London, Manchester, Edinburgh and Glasgow – and where the cheapest area was – yes Northern Ireland. Try the site – but don’t tell the people in GB they will only want to move here and push house prices up. The Consumer Council are busy enough without that problem.

It makes you wonder if Ms`s Gildernew and Foster joining the Quinn protest in Enniskillen was less to do with saving jobs and more to do with keeping cheap and loss-making insurance – who cares if an Insurance Company goes bust.

Jack McIlduff
MD
Europa General Underwriters (NI) Ltd
(An RSA Group Company)
Contact telephone number: 028 90320190

The content of this article is provided for information purposes only and does not constitute professional or other advice.

3rd May our teams will run and walk the Belfast Marathon 2010 for the Cystic Fibrosis Trust. With your help, we are hoping to raise as much money as possible so that the Trust can fund the research need to find effective treatments for this life threatening inherited disease.

Please give generously, as many as 5 babies are born with this disease every week in the UK. It’s a charity that’s very close to our hearts and we would appeal to all our friends and family to support them.

Click here to donate to this great cause

We will all be familiar with this saying but for Jack McIlduff it has become part of who he is. As a young lad Jack would work with his bookmaker father at the races. At the end of a busy day Jack would look at the receipts and say to his father that they had a good day! His father would point to the money bag and say ‘its not a good day until it is in the bag!’ The lesson….business is not business without profit

This early lesson in managing profit and cash has been the compass for a career which took Jack from Belfast to London where he learned his trade at Lloyds and back home to establish a multimillion pound business in the insurance industry. Now MD of Europa General, Jack has agreed to share his thoughts on profit, cashflow and the importance of knowing your business.

Followed by…….

The Golden Rules of Insurance

Following Jack’s presentation Europa General will set out some of the ‘golden rules’ for businesses to consider when putting their insurance in place. It is a very practical approach to making sure you have the proper protection in place and a must for those who find this aspect of business both daunting and expensive.

Date: 13th May 2010
Time: 6.00pm – 7.45pm
Venue: Park Inn Hotel, Clarence St (Just off Bedford St), Belfast

Space is limited so early booking is advised and registration is essential. To register email info@mln.org.uk

It was a great chance for all staff to reflect on the company’s history both globally and in Ireland. A reminder of the strength of the business and an opportunity in today’s uncertain economic climate to look forward with confidence to what we know will be a very bright future.

Since the creation of the Sun Fire Office in London in Seventeen Ten, our company has been on an interesting journey – a very proud journey – supporting businesses and people as they planned for the future, and helping to secure that future by providing essential insurance protection. We have kept businesses and people moving across the centuries and we have touched the lives of literally millions of policy holders.

The celebrations commenced simultaneously in RSA offices in Galway and Dublin and also, depending on time zones, across the globe.

The staff in Europa had a great day of celebration and here’s to another 300 years!!!

The best guide I found was in the Q&A article in the Irish Times which I reproduce in part here.

What happened in the High Court today?  The Financial Regulator made and was granted an application to have joint provisional administrators appointed to Quinn Healthcare and Quinn Direct, which offers motor, home and business policies.

Is this move significant?  Very. Quinn Insurance is the second-biggest insurer operating in the Irish market. It has 19 per cent of the motor insurance market, 3 per cent of the property insurance market and 13 per cent of the public liability market. Quinn Healthcare has in the region of 400,000 customers and the companies employ almost 2,800 people in Ireland and the UK.

How has Quinn Insurance responded?  It described the court action as “deeply disappointing in the context of the continued profitability of the group which is currently in excess of €20 million per month” and expressed the belief that the issues could have been resolved “to the benefit of all in a relatively short space of time”. It stressed that its business outside of Quinn Healthcare and Quinn Direct, including its life assurance arm, were unaffected.

If Quinn Insurance is so profitable, why was the administration order sought?  Counsel for the regulator told the High Court the company had “significantly breached” its solvency ratios. It heard that subsidiaries of Quinn Insurance had made guarantees in relation to the group’s assets which reduced the amount of cover for policyholders’ liabilities and was told that its assets were reduced by €448 million.

The court was also told that the group had gone from having assets over liabilities of some €200 million to an excess of liabilities of more than €200 million.

Should customers be worried?  No. The most important thing people who have policies with the affected elements of this company should bear in mind is that they continue to be covered.

Both Quinn Healthcare and Quinn Direct remain open for business and the Financial Regulator has stressed that consumers will be able to renew policies, take out new business and expect pay outs on all “valid claims” in the normal way.

Can consumers who have paid premiums in advance get refunds if they leave the company before the policy term ends?  No, when an insurance company enters administration, its customers do not have a legitimate reason to break the terms of their contract. The company continues to honour its side of the bargain by continuing to offer cover so there is no legally valid reason to break the agreement. Consumers who are still concerned should contact their broker.

What happens next?  In the very short term, probably very little. The administration process can be a long one. There are three scenarios which could come to pass: the company could come out of administration as a profitable, independent company and continue to trade as it has done in the past; it could come out of administration and be sold to a rival operator who would assume any of its losses or it could remain in administration ahead of a long winding-up process.

What about Quinn’s business and Northern Ireland?  In a separate development, the Financial Regulator has directed Quinn Insurance to cease taking on new business in the UK to prevent the company “suffering further financial losses from its currently unprofitable UK business”.

The Administrator has now written to all Policyholders in Northern Ireland telling them that their policy will be honoured until expiry but they will not be offered Renewal. This is the best advice; you do not need to do anything until renewal.

Be wary of some Insurers and Brokers who are offering Rollover cover immediately. There is no benefit to you as you will be paying a premium up to renewal on cover you already have with Quinn.

Talk to a Professional advisor and prepare your Portfoilio for submission to the market at next renewal.

Jack McIlduff
MD
Europa General Underwriters (NI) Ltd 
(An RSA Group Company)
Contact telephone number: 028 90320190

The content of this article is provided for information purposes only and does not constitute professional or other advice.

The Press have concentrated on the Banks, Investment Houses, Hedge Funds. We have read reports about the great and good in the Financial markets reporting disastrous results. We have seen footage of staff from Lehmans leaving their offices with no jobs – just a box of memories. Many household names have bitten the dust. Governments have bailed out their banking systems and indeed now some governments need bailed out themselves!!

One sector of the Financial market has been quiet – Insurance. Despite all the gloom the Insurance Companies seem to have ridden out the storm without rate increases. That is all about to change. Over the coming months Insurance Companies will be reporting their 2009 results. Without exception they will not be good. Traditionally Insurers accepted marginal profits but mostly losses on their Underwriting however they made up for it by achieving good Investment results on their Reserves.

Hands up anyone who knows anyone who made reasonable investment returns in 2009.

Therein lies the problem. Despite some efforts by some Insurers to introduce underwriting discipline to the market, competition and a desire to retain market share has resulted in underwriting losses and in many cases under-performing investments.

So what does it mean to use rate increases. Insurance rates increased substantially from 2001 to 2005. Insurance companies built up their reserves during this period waiting for the next 9/11. It did not come. From 2005 they reduced rates to attract more business and retain market share. Underwriting losses were supported by the release of unused reserves. 2008 saw an unprecedented use of reserves. The pot is now empty and the only way to survive is to increase rates. How far have they fallen – Motor Insurance rates in Northern Ireland for example are now at 1997 levels. This level is not sustainable.

January and February renewals have already seen rate increases and we will see these rises continue in 2010 across most classes by 15%-20%.

Now is the time to look at your Insurance programme and consider measures to contain these increases. Higher Excesses, Risk Management or even a programme of self-insurance will help contain these costs.

Don`t wait until renewal time. Engage with your Broker and Insurer. Act now and discuss ways of having your risk looked at as an individual business and not just rated as one in a herd.

Sorry for the bad news but remember:-

Don’t shoot the messenger.

Jack McIlduff
MD
Europa General Underwriters (NI) Ltd
(An RSA Group Company)
Contact Telephone Number: (028) 90320190

The content of this article is provided for information purposes only and does not constitute professional or other advice.

MLN – or the Management & Leadership Network – is a business initiative offering free support and resources to managers and leaders in Northern Ireland. Existing and new members will have free access to best practice resources and up-to-date local expert guidance in key business issues through regular e-zines, supported by the MLN website;  www.mln.org.uk.

Jack McIlduff, MD at Europa General said, “As MLN’s Insurance champion we totally support the aims of MLN to build a stronger economy through more capable management and we look forward to playing our role as a champion firm. ” 

Brian Ambrose, Chief Executive of George Best Belfast City Airport is one of MLN’s ‘ambassadors’.  He said: “My fellow ambassadors and I recognise the value MLN can deliver for owners and managers. It is great to see the champion firms taking the initiative and a great encouragement for the future. Together, we have a deep understanding of the real pressures facing businesses along with a desire to provide real solutions.”

Managers, owners and directors within the public, private and voluntary sectors can register with MLN for free on http://www.mln.org.uk/register.asp

Why does insurance fall into this unfortunate trio when it is designed to protect balance sheet against loss of your property or claims arising from your legal liability to others? You pay a premium and your Insurer pays the losses – nothing could be more equitable. Your CFO can sleep easy at night knowing that the Balance sheet is protected, at least from these risks.

So…, where does it all go wrong?  Claims.

You are happy transferring risk to the Insurer, but when a claim occurs you get stressed. If it is loss or damage to your property, the claim is not being settled quickly enough or at a value you consider accurate.

Real stress usually creeps in when a claim is made by a Third party or employee, especially when the Insurer plans to settle the claim or holds a substantial reserve on the claim, when you are adamant that you are not a fault. The first knowledge you have of this is when Renewal comes around and claims experience is produced by the Insurer.

This all leads to conflict.  When Renewal comes around, the Parties are at war. Usually caught in between, is your Insurance Broker who tries to bring the parties together. They are torn between the desire to satisfy the client’s needs and recognition of the wording in the Insurance Policy.

Some time ago, BT had an advert running in which that great actor Bob Hoskins says, “it`s good to talk”.

Talk to your Insurer on a regular basis during the year – quarterly is good for low claims frequency. Have them produce a claims review with planned action and rationale. Get to know each other better. Insurers would much prefer to build a long lasting relationship with a policyholder – it gives them a chance to know and understand your business and work together with you, to reduce risks going forward.

Insurers are more than happy to engage with their Policyholders, after all, there are only two names on the contract: You and Your Insurer.

It`s good to talk, but better to understand.

End the war today.

Jack McIlduff
MD
Europa General Underwriters (NI) Ltd
(An RSA Group Company)
Contact telephone number: 028 90320190

The content of this article is provided for information purposes only and does not constitute professional or other advice.

Wendy Cree of Europa General (centre) with the Hawarden duo of Amanda Leeman & Heather Rose

Hawarden is a quaint, three all-weather court club tucked in behind Knock Fire Station in Clonlee Drive. The club is family-centred and famous for its welcoming atmosphere but it can still produce the goods when it comes to providing quality competitors. Current Ulster representatives include Gareth McGreavy (Senior), Megan McGreavy (Junior Ulster and Irish rep) and Steven Marshall (Junior Ulster). Junior Veteran Ulster players include Amanda Leeman, Steven Leeman and Wendy Cree (Junior Veteran Irish rep).

Semi-finals

The first semi-final of the Over 35 men’s doubles was contested by the first time partnership of Steven Leeman (Hawarden) & Godfrey Gaston (Ballymena), against local rivals Roy Wilson & Greg O’Rawe (Windsor). The other semi-final in this section was between John Maguire (Irvinestown) & Andy Moore (Omagh), against Jim Watt & Paddy Taylor (Larne).

Amanda Lee of Hawarden

Hawarden duo of Amanda Leeman & Heather Rose contested the first Over 35 semi-final against the newly formed partnership of Fiona Ludlow (last year’s winner from Ballynafeigh) & Julie Maguire (Belfast Boat Club). The other semi-final in this section saw Bangor ladies Jenny Lyall & Cathy Law take on Gilnahirk player Julie May Noteman & Larne’s Kathy McCandless.

Russell Connell of Hawarden took part in the first men’s Over 50s semi-final alongside Malcolm McKibbin from Belfast Boat Club. Their opponents were the long-term partnership of Fred McNabb and Dennis Cairns from Whitehead.

The first semi-final of the ladies Over 50s was contested by Letty Lucas (Downshire) & Liz Thompson (Belfast Boat Club), against Irene Hewitt (Belfast Boat Club) & Eileen Morrison (Ballynafeigh). Lurgan ladies Donna Gilpin & Cherry Kirkpatrick faced Muriel King (Civil Service) & Rosemary Edgeworth (Bangor) in the other.

Finals

Gents finalists at Hawarden

Over 35 Men’s Doubles – Steven Leeman & Godfrey Gaston v Jim Watt & Paddy Taylor

This match was the tightest of all finals with Jim Watt and Paddy Taylor taking the first set 7-5 with only one break in serve. This was the wakeup call that Steven Leeman and Godfrey Gaston needed who then raced through the second set taking it 6-0 and taking the match to a championship tie break. Steven and Godfrey raced to a lead in the tie break and with some devastating net play and passing shots, eventually running out 10-4 winners.

Over 35 Ladies’ Doubles – Kathy McCandless & Julie May Noteman v Amanda Leeman & Heather Rose

This match provided some good tennis from both teams with some great attacking play. The local pairing of Amanda and Heather, being used to the court surface and each other’s play, ran out winners with a score of 6-3, 6-2.

Over 50s finalists at Hawarden

Over 50 Men’s Doubles – Malcolm McKibbin & Russell Connell v Stephen Cutherbertson & Jimmy McCutcheon

First on court after lunch, Malcolm and Russell’s volleying was just too strong for the opponents who put up a great fight. Special mention must go to Malcolm McKibbin for his successful ‘Federer shot’ in an important rally. Malcolm and Russell won the match in a comfortable scoreline of 6-2, 6-2.

Over 50 Ladies Doubles – Liz Thompson & Letty Lucas v Donna Giplin & Cherry Kirkpatrick

This match provided some long rallies and lobbing at the net, however the experience of the long-term partnership of Liz and Letty was the dominating factor and they won in a convincing scoreline of 6-1, 6-1.

Following the presentation of prizes, the tennis committee thanked sponsor Europa General for their support again this year. A massive thank you and presentation was made to Wendy Cree, the tournament director, for all her hard work and efforts in overseeing the tournament and thanks were also directed to all the helpers from Hawarden Tennis Club who were great throughout the week. Finally a thank you was made to all the competitors for supporting the tournament again this year.

The President of Tennis Ireland, Mrs Letty Lucas (who won the Over 50 ladies section) made a short speech and thanked all the players and Hawarden Tennis Club for hosting the successful tournament.

With a change in date from October in 2008 to June in 2009 the organisers were hoping to get good weather to facilitate a great day of socialising and competition.

We were fortunate to have a good day with some showers mixed in but this all added to what turned out to be a fantastic event.

Well supported by our brokers and suppliers we went for a two tee start to ensure we got everyone out on time and also back in for the dinner and drinks afterwards and helped by the members of Belvoir we were able to do this.

With Tee off fast approaching it was easy to tell the difference between the pros and the amateurs – the pros were on the putting green warming up whilst the amateurs were in the club house enjoying a cup of tea and a bacon butty – well you need the energy before 18 holes!!

With nine teams competing for the overall team prize it was John Mac Manus (Willis Ltd), Gareth Morgan (Curran Connolly) and Gerry Traynor (Europa General) who emerged victorious and walked away with a Callaway Diablo Hybrid Wood to show for their efforts.

But with prizes for 1st, 2nd & 3rd placed teams as well as best Front and Back nines, Nearest the Pin and Longest Drive awards, there were few people who didn’t pick up a prize.

The day was once again well supported by the assistant pro’s who competed in there individual tournament as well as part of their team and it is always useful when they can give some hints and tips to the amateurs throughout their rounds. This year Peter McClelland came out on top representing his club – Portadown.

With a great meal in the clubhouse after and enjoying the great views out over the course it was a fitting end to a great day.

Each year we look to improve and grow the event and this year was no exception. We now look forward to 2010 with anticipation.