Guy Carpenter launches Risk Benchmarks report

Guy Carpenter has published its first Industry Risk Benchmarks report for insurers, which provides risk benchmarks for loss ratios and reserves, by line of business, for coefficient of variation (standard deviation/mean), correlation and cycles.

The benchmarks are based on a database of industry information that includes the reported financial results of hundreds of insurance companies over a thirty-year period.

They can be used to assess the risk parameters used in insurers’ economic capital models.

Developed in conjunction with Risk Lighthouse, the report is available upon request to clients of Guy Carpenter only.

The reinsurance specialist’s head of global advisory, Don Mango, comments: “We developed the risk benchmarks as a timely tool to help insurers in their economic capital
modelling, with detailed explanations on what they mean and how they can be used.”

Lark acquires Cadogan Hanover Park

Lark Group is acquiring the Surrey-based Cadogan Hanover Park business from Barbon Insurance.

On completion of the transaction, Lark, which provides insurance broking services to a cross-section of corporate and personal clients, will see its annual revenues rise to around £23 million and employ around 280 staff across six offices in London and the South East.

The firm’s chief executive, Graham Lark, describes Cadogan as a “top quality broking business and an ideal fit with our strategic objective to become one of the leading independent brokers in the South East”.

All Cadogan management and staff will be joining Lark following the acquisition and will continue working from their office in Croydon.

ARAG launches divorce products

ARAG is launching two new divorce products to the market, following a successful trial run with solicitors Mishcon de Reya and Prolegal.

Pre-nuptial Legal Solutions and Divorce Legal Solutions are aimed at law firms preparing nuptial agreements and provide legal expenses cover from the date of a marriage or civil partnership.

Sold alongside nuptial agreements, both policies cover costs arising from a legal challenge to the nuptial agreement, while Divorce Legal Solutions extends to include the cost of divorce proceedings.

According to the After The Event specialist, the need for nuptial insurance products has been highlighted by the Law Commission giving consideration a statutory framework for pre-nuptial agreements.

This combined with the restriction on legal aid for most divorce cases and proposed reforms to civil litigation, means that the popularity of nuptial agreements is likely to grow.

ARAG managing director, Tony Buss, comments: “While some may see the very idea of ‘divorce insurance’ as unromantic, the realities of modern life and the government’s legal aid and costs reforms will make it harder for ordinary people to access justice before the courts, meaning this is the right time to launch such a product.”

Guy Carpenter condenses management structure

Guy Carpenter has announced a number of changes to its global management structure, as follows:

Chris McKeown has been appointed vice chairman and will in future focus on implementing key strategic initiatives (including capital creation), having previously served as president and chief executive officer of the group’s North American broking operations.

In addition, the firm’s US regions have been reduced from three territories to two and Peter Chandler has been named US Eastern region leader, while Pat Denzer becomes Western region leader.

Both will report to Alex Moczarski, Guy Carpenter’s president and chief executive officer.

Terry Russell, formerly the firm’s US Mid-America region leader, will instead focus on the development of global agriculture, surety and medical malpractice business, reporting to Andrew Marcell, chief executive officer of global practices and head of placement strategy.

Commenting on the changes, Mr Moczarski says: “These appointments condense existing management tiers, thus allowing us to offer more efficient service to our clients.”

He adds: “Our newly aligned structure will enable us to deliver increasingly differentiated solutions that continue to distinguish Guy Carpenter as our clients’ most trusted strategic advisor.”

Crawford UK makes leadership changes

Crawford & Company has made leadership changes in the UK, at its Europe Middle East and Africa/Asia Pacific (EMEA/AP) and global markets operations, in a move aimed at strengthening its relationships with both insurers and brokers.

Greg Gladwell has been appointed chief executive officer UK and Ireland, having joined Crawford in June 2010 from Aviva.

His insurer background should help the group align more closely to its clients and develop mutually beneficial opportunities.

Benedict Burke will be moving from his role as chief executive officer UK and Ireland to join the global markets team, as senior vice president.

He will be responsible for developing key client relationships and assisting with the development of Crawford Global Technical Services SM throughout EMEA/AP.

Clive Nicholls will take up a new role as senior vice president client services for EMEA/AP and will be assisting in business development in addition to his role working with Crawford’s global markets clients.

In other Crawford news, the claims management group recently acquired the Appian Business Process Management (BPM) Suite in a move that should radically alter the way it develops software applications.

The Suite was first introduced to Crawford during development efforts for repairNet, the firm’s managed repair service in the UK.

It can increase efficiency by using a business rules engine to automate processes and also enables better collaboration among employees and clients through an intuitive social media “feed” interface.