The Kill Bill
Latest reforms to the Government’s plan to introduce a new offence of corporate killing in a bid to tighten the laws surrounding people killed through safety failures have been welcomed by unions and employers.
First drafts of the Bill published in a report last year were heavily criticised by MPs, who feared it may let some big firms off the hook and create perverse incentives to treat health and safety issues less seriously.
Companies can already be prosecuted for manslaughter, but the Corporate Manslaughter Bill aims to make it easier to prosecute companies and other organisations where gross negligence leads to death. It will replace the need to find a “controlling mind” – a person who knew all the facts and was grossly negligent in failing to act, which has been a key difficulty in past prosecutions – with a focus on the overall management of activities.
The Government is now looking for ways of broadening the basis for liability within an organisation.
News in brief
Hiscox tops BIBA survey results
The BIBA 2005 survey results reveal service levels among insurers have improved since they were last measured in 2002. Of the 13 companies surveyed, Hiscox performed well in its offering of: competitive premiums; flexibility of underwriting; products which meet customer needs; speed of claims settlement and its long term commitment to the broker market.
Traditionalists or innovators?
Market analysis by the Chartered Institute of Insurance shows a widening split in the broker sector between ‘traditionalists’ and ‘innovators’. The report says new brokers will be more professional, focus on value, use technology as an enabler and take on the role as business continuity advisers, rather than mere insurance providers selling on price. Do you agree? Email hiscoxnews@hiscox.com
People on the move at Hiscox
The Art and Private Client Divison has a number of team changes. James Standen has joined from Marsh to head up the 506 product. Emma Bennett from Maidenhead and Claire Tweed from Birmingham are now part of the London office, while Chris Parker has moved from London to join the Colchester team. Richard Horricks and Simon Griffin have joined Hiscox Bristol. Sebastian Pryke has joined the Risk Surveying and Valuation team from Lyon and Turnbull.
INScribe – what’s new?
Hiscox signed up its 100th broker to INScribe in March and is now processing over 320 quotes a week, saving significant time for brokers and clients. The INScribe system will continue to be improved over the new few years during the step-by-step rollout. If you have any feedback, please let us know.
Dear Editor
I write in response to the questions posed in the winter 2005 issue of Hiscox News: do brokers have a unique selling point? Is it of value to customers? Can brokers offer impartial advice when commission rates vary?
I believe without a doubt that professional insurance brokers have always had a unique selling point. I also believe it is unrealistic to expect corporate or personal insurance buyers with more sophisticated needs, to have the in-depth knowledge of the insurance market required to make an informed decision with regard to policy covers, pricing and claims handling. These are the disciplines provided so expertly by the broker.
It is clear that the direct market has been very successful in the professional insurance sector, but it is unable to offer impartial advice regarding a proposer’s exposure to risk and will not necessarily handle subsequent claims in the best interest of
the insured.
The broker’s involvement is therefore extremely valuable in assessing the client’s exposure to risk and thereafter, offering the best insurance solution backed by underwriters with a proven record of claims service excellence. As with every aspect of life, the broker’s customers will so often experience grey areas of the business when underwriters exhibit the intransigence of ‘Scrooge’, and it is in these circumstances that the professional broker can make a dramatic difference.
Brokers have always operated in a market where commission rates vary, going back to the days of the tariff and non-tariff underwriters. While the level of commission is desperately important, it should not influence the professional broker when deciding which insurance provider is best for any particular risk. We cannot forget that the alternative may well be the loss of a valuable client.
Yours faithfully
Bob Rotheram, P W Creamer & Company
• The Editor says: Perhaps the big question is, do consumers understand this and value it? Bob wins a handheld Sony Playstation