Costa Concordia tips balancein wreck-removal debate

Dress Down Friday

Xchanging puts 42more roles atrisk of redundancy

Professionals tee off forInsurance Charity Golf Day p6

Credit Suisse promotesfinancial literacy p6

Power behind the throne:CMC’s Nick Stammers p6-7

China amongmarkets of concernfor trade credit insurers

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p4-5

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MARKETNEWS,DATAANDINSIGHTALLDAY,EVERYDAY FRIDAY15AUGUST2014

ISSUE4,169

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NEWSwww.insuranceday.com| Friday 15 August 2014

Marketnews,dataandinsightallday,everydayInsuranceDay istheworld’sonlydailynewspaperfortheinternationalinsuranceandreinsuranceandriskindustries.ItsprimaryfocusisontheLondonmarketandwhataffectsit,concentratingonthekeyareasofcatastrophe,propertyandmarine,aviationandtransportation.It isavailableinprint,PDF,mobileandonlineversionsandisreadbymorethan10,000peopleinmorethan70countriesworldwide.

Firstpublishedin1995,InsuranceDayhasbecomethefavouritepublicationfortheLondonmarket,whichreliesonitsmixofnews,analysisanddatatokeepintouchwiththisfast-movingandvitallyimportantsector.Itsexperiencedandhighlyskilledinsurancewritersarewellknownandrespectedinthemarketandtheirinsightisbothcompellingandvaluable.

InsuranceDayalsoproducesanumberofmust-attendannualeventstocomplementitsdailyoutput.TheLondonandBermudasummitsareexclusivenetworkingconferencesforseniorexecutives;meanwhile, theLondonMarketAwardsrecogniseandcelebratetheverybestintheindustry.ThenewInsuranceTechnologyCongressprovidesauniquefocusonhowITishelpingtotransformtheLondonmarket.

FormoredetailonInsuranceDayandhowtosubscribeorattenditsevents,gotosubscribe.insuranceday.com

Insurance Day, Christchurch Court, 10-15 Newgate Street,London EC1A 7HD

Editor: Michael Faulkner+44 (0)20 7017 7084michael.faulkner@informa.com

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ISSN 1461-5541. Registered as a newspaper at the Post Office.Published in London by Informa UK Ltd, Mortimer House, 37/41Mortimer Street, London, W1T 3JH

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No part of this publication may be reproduced, stored in aretrieval system, or transmitted in any form or by any meanselectronic, mechanical, photographic, recorded or otherwisewithout the written permission of the publisher of Insurance Day.

Enter the TechnologyInitiative of theYearAward

T echnology plays a vital role inthe efficient operation of theinsurance market. This awardrecognises the company mak-

ing the most innovative use of technologyin designing, developing and deliveringan industry-leading solution that has asignificant business value.

The award may be for a system devel-oped in-house or purchased, a businessprocess outsourcing solution or a combi-nation of these elements.

The winner of the Technology Initia-tive of the Year Award will have demon-strated innovation and a measurableimprovement and strengthening of theoverall operation of the organisation.

The initiative will have definite com-mercial results directly attributable tothe initiative, such as cost savings,improved product speed to market,improved services levels, increased reve-nue and profit.It should also have had apositive impact on the organisation’s

industry standing in relation to techno-logical innovation and leadership.

Now in its 13th year, the Insurance DayLondon Market Awards is firmly estab-lished as a vital fixture in the insuranceindustry’s calendar. And this year’s willbe the biggest yet with a record 15 tro-phies up for grabs.

This year’s awards will be held at theprestigious Lancaster hotel in London onThursday, December 4.

Insurance Day welcomes entries fromcompanies or individuals operating inthe London market. Where appropriate,entries in more than one category areencouraged. Individual companies canenter themselves.

Nominations may also come fromother companies or individuals who feela particular company or person shouldbe considered.

The response to our call for entries forthe awards has been growing each yearand we anticipate strong competitionagain for 2014.

The deadline for entries is August 29 –and entering online could not be easier(see below). Further information on theawards and categories can be found atwww.insurancedayawards.com.

Michael FaulknerEditor

Rollofhonour2013 – Xchanging X-Presso app2012 – Xchanging ECF2 initiative2011 – The BMS Group iPad initiative2010 – The Exchange

Criteria fortheawardInnovation − Describe this initiative, both in terms of the solution as well as its usewithin the business;Process − Describe how this initiative redefined the business process, improvedthe process and strengthened the overall operations of the organisation;Business value − Describe the specific results, return on investment and businessvalueoftheinitiativeincludingcostsavings,speedtothemarket, improvedserviceslevels, increasedrevenueandprofit thataredirectlyattributedtothisinitiative;andIndustry impact − Describe how this initiative has affected the organisation’sindustry standing relative to technology, innovation and leadership.

EasytoenterEntering could not be easier. Using thecriteria for the award, nominees shouldexplain in 750 words or fewer why thecompany should win.

The qualifying period for all cate-gories is from January 2013 untilAugust 2014.

Entries should be submitted online atwww.insurancedayawards.com

Sponsoredby

Reinsurers not slashing prices tomaintainmarket share – S&PGlobal reinsurers are not slashing pricesbelow economic levels to maintain mar-ket share despite fierce competition,according to rating agency Standard &Poor’s, writes Michael Faulkner.

While competition in the sector isheating up, with an influx of newcapacity fuelling softening rates, globalreinsurers are seeking other ways tomitigate the effect on their businesses,the rating agency said in a report pub-lished today.

Reinsurers were seeking more profit-able markets, or tweaking their invest-ment strategies toward riskier assets toincrease investment returns. Some of the

stronger, more diversified reinsurerswere also slightly reducing their expo-sure to property catastrophe businesswhere prices have fallen materially.

Smaller firms were also teaming upand forming consortia to gain scale.

“In general, we have not yet seenmaterial signs they have succumbed tothe temptation to use inadequatepricing to retain market share,” the S&Panalysts said.

The rating agency warned tough com-petition and weakened pricingincreased the potential for earnings vol-atility and reinsurers’ ability to maintainfinancial strength.

The trend for large cedants to optimisetheir reinsurance spending by purchas-ing reinsurance at a group level, ratherthan at the operating unit level, appearedto be accelerating, S&P said.

“This approach streamlines reinsur-ance programs and reduces an insurer’sneed to use a large number of reinsurersfor protection. As a result, smaller andless diversified reinsurers, especiallycatastrophe-concentrated players, willfeel pressure on their market positions,”the analysts said. “We could reflect theseweaker competitive positions, greaterindustry risk and potentially lower earn-ings in our ratings.”

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NEWSwww.insuranceday.com| Friday 15 August 2014

China among markets ofconcern for tradecredit insurers

C hina is one of the mostchallenging markets forcredit insurers as bankstighten finance, while

Latin America is also being closelywatched, the new president of theInternationalCredit InsuranceandSurety Association (Icisa) haswarned.

Speaking to Insurance Day,Andreas Tesch, a member of themanagement board of creditinsurer Atradius, said his objec-tives during his term as presidencycentred on finding new opportuni-ties forcreditandsuretymarkets togrow, with developing insurancemarkets at the forefront of thisobjective. However, he acknow-

ledged a number of these marketsstill presented challenges.

“There are some markets ofconcern. There have been nocatastrophes as yet in any geo-graphic market but there aresome fairly risky areas. There aresome problems from a politicalrisk perspective and some aredriven by sanctions imposed byvarious national governments.Due to the political situation,there will be some markets whereour members will be off coverright now,” he said.

Markets of concern include Rus-sia and the former Commonwealthof Independent States. “As insur-ers, sanctions are important for usto respect. Sanctions will have animpact on the stability of somecountries in that area,” Tesch said.

“We’ve also seen some chal-lenges in China recently. Owing tothe tightening of finance by some

banks, Chinese companies arestruggling for liquidity.

“We are closely following thesituation in Latin America, forcountries such as Argentina andalsoBrazil.Wedoseesomedeterio-ration in the Brazilian market weare following closely,” he said.

He said one of the key challengesduring his presidency will be find-ing opportunities for credit andsurety insurers to grow. “Whileevery individual organisation islooking for opportunities, the asso-ciation can also play a role. Thereare initiatives in place with localplatforms to provide credit insur-ance,” he said.

“We are an international organi-sation and our recent applicationsand membership additions havecome from the Americas, Asia andto some extent the reinsurancemarket. There is still growth in Asiaand the Middle East and there will

be a need to find new customer seg-ments,” Tesch said.

“Developing new customer seg-ments is one of the key prioritiesunder my presidency. One of theissues is how we can better pene-trate SMEs [small and medium-sized enterprises]. Almost all ourmembers are struggling to pene-trate the SME market.”

From a regulatory perspective,Tesch said the key concern amongmembers remains Solvency II,adding Icisa is playing a prominentrole in lobbying on this issue.“We also see other regulators – inAustralia and South Africa, forexample – copying the concepts ofSolvency II.

“While there is a certain degreeof knowledge on life and propertyinsurance among regulatory bod-ies, credit insurance is a niche. Soweliketoidentifytherightcontactson a European level, educating

Scott VincentEditor, news services

“Developing newcustomer segments isone of the key prioritiesunder my presidency. Oneof the issues is how wecan better penetrateSMEs. Almost all ourmembers are struggling topenetrate the SME market”

Andreas TeschIcisa

Xchanging puts 42moreroles at risk of redundancyXchanginghasstartedaconsultationprocess with 42 employees whoseroles are at risk as part of the finalstage of the gradual termination ofits partial monopoly on delegatedclaimsprocessingintheLloyd’smar-ket,writesSophieRoberts.

The company said the consulta-tion process for the 42 employeeswill conclude in October.

Xchanging has already made anumber of roles redundant thisyear, including roughly one-thirdof the energy and marine team.

The latest roles under threat arein the aviation, professional andfinance teams, as well as the bind-ers and reinsurance teams.

Xchanging reported a 24% fall inrevenues during the first half of theyear, while profit fell 7% to £26.4m($44m) for the six-month period.

This year has seen Xchangingannounce two notable acquisitions– Total Objects and AgencyportEurope – which are expected toprovide a marginal contribution toprofitability in the second half.

McMellin to head Catlin’sLondon hub as Sinfield departsNick Sinfield, chief executive ofCatlin’sLondonbusiness, is leavingthe group, writes Alexis Burris.

He will be succeeded by AndrewMcMellin, chief executive ofgroup’s US underwriting hub atpresent, during the first half of2015, Catlin Group said.

Catlin’s chief operating officer,PaulJardine,willactasinterimchiefexecutive of the London hub untilMcMellintakesuptheposition.

Catlin chief executive, StephenCatlin, said: “[McMellin], who is akey member of the group’s man-agement team, has done a superbjob of managing the profitable

growth of our US-based operationsover the past two years and willcontinue in this role for severalmonths to assure a smooth transi-tion. He will then be responsiblefor all activities carried out by ourLondon-based operations, whichproduced more than $2.4bn ingross premiums written in 2013.”

McMellin will remain a memberof the Catlin Group executive com-mittee. He joined Catlin as a classunderwriter in London for non-marine liability in 1999 and hasserved as the New York-based chiefexecutive of the company’s US hubsince September 2012.

24%Drop inXchanging’srevenues duringfirst half of 2014

them about our product. At thesame time, we are facing thechallenge of not having a trulyEuropean operation to regulatoryactivities in the region. WhileEiopa develops the concepts,implementation is down to differ-ing regulators on a country-by-country basis.”

Among Icisa members in 2013,Tesch said the loss ratio has deteri-orated slightly but is still good.“Most carriers are still deliveringprofits,” he said.

During 2013, insured exposureamong Icisa’s trade credit mem-bers was up 2.7% to €1.97trn($3.28trn), while premium for therisk was down 4% to €5.89bn.Claims were down 2.5% to €2.88bn.

For surety members, insuredexposure was down 2.4% to€262bn, with premiums up 10.7%to €2.33trn. Surety claims were up27% to €1.18bn.

Costa Concordia tips balancein wreck-removal debate

T he Costa Concordia disas-ter, which involved a hullloss of roughly $500mand a liability loss of at

least $1.5bn, has proved to be thelargest single marine loss in his-tory. As ships are getting larger allthe time, salvage operations arebecoming ever-more complex andexpensive. In the recent past, inter-ventions by the government andother authorities have developedinto the main cost drivers of wreck-removal expenditure. This posesan increasing challenge to insurersand their reinsurers.

A large loss scenario like CostaConcordia did not really come as asurprise to those who understandthe risks of marine insurance.What was unexpected, however,was the exploding protection andindemnity (P&I) liabilities.

Before Costa Concordia, nobody

anticipated costs for the removal ofa wreck would ever exceed $1bnbut as a result of the increasingcomplexity of wreck removal andsalvage operations, the P&I indus-try has seen an alarming rise incosts in recent years. This trendhas clearly been confirmed sincethe grounding of container vesselMV Rena off the coast of New Zea-land in 2011.

According to a survey by theInternational Salvage Union, thecost of salvaging and removingwrecks increased fivefold between2005and2012,while thenumberofincidents declined.

Escalating costsOf course the size of the shipsplays a major role in this develop-ment. Ocean-going vessels haveevolved immensely, becominglarger all the time. While the firstgeneration of containershipsaccommodated up to 800 standardcontainers, the most modernvessels can carry some 18,400TEU – more than 20 times asmany containers.

Cruise lines are constantly push-ing the boundaries to attract tour-ists to their ships. In the early1990s, the largestoceanlinerswereon average 70,000 gross tonnes andmeasured roughly 270 m in length,carrying around 2,500 passengersand 900 crew. Here too, vesselsizes have tripled in terms of theircapacity in gross register tonnes,with Oasis of the Seas leading thefield at 225,282 gt and an overalllength of 362 m, with around 5,500passengers and more than 2,000crew on board.

The economic advantages oflarge passenger ships or freightersmay be unbeatable, but when dis-tressed or following an accident,these vessels often prove a majorheadache for rescue and recoveryteams. Heavy equipment, such asbarges, floating cranes and specialships to pump out the oil, is neededto salvage or remove a wreckseveral hundred metres long andcorrespondingly cumbersome.Just the rental costs for the giganticfloating cranes needed to salvagethe cargo from large container

ships can quickly run into millionsof dollars.

Not uncommonly, floatingcranes with the required hoistingcapacity are not available near thescene of the accident. Such cranescould possibly be booked on along-term basis from offshorecompanies or purchased out ofexisting contracts. However, trans-portation to the scene of the acci-dent can take weeks or evenmonths. This drives up the salvagecosts, as the bill rises with eachtransfer day that passes.

Government interventionButthemost importantcostdriversof wreck-removal expenditure inthe recent past have been govern-ment and other authority interven-tions. In keeping with society’sgreater general awareness of envi-ronmental issues, authorities willtoday understandably insistwrecks be removed with as littleimpact on the surrounding area aspossible, a process that is usuallymore difficult and therefore takesconsiderably longer. However, we

BeforeCostaConcordia,nobodyanticipatedcostsfortheremovalofawreckwouldeverexceed$1bn

Tugboats towthewreckofCostaConcordiatowardsGenoa’sharbour:theoperationtorightandremovethe

wreckfordisposalhasbecomethelargestsinglemarineloss inhistory

© 2014 Antonio Calanni/AP

Graphic: Costa Concordia removal method

1) Holdback system and stabilisation

A tieback chain preventsthe wreck from slidingas forces are applied

Dieter BergMunich Re

are increasingly seeing cases inwhich the local authorities – underpolitical pressure and the spotlightofpublicscrutiny–ordermeasuresto be taken that hamper efficientwreck removal. Although there arecertainly also cases in which theauthorities strive for a pragmaticsolution and push for rapidremoval of the wreck, globallyspeaking these are the exceptionrather than the rule.

More often than not, the deci-sions are politically motivated andlack proportionality. Economicanalyses of the costs and benefitsare no longer performed. In fact,the exceptionally large liabilityinsurance cover of $3bn mighttrigger expectations in therelevant stakeholders, resulting inoperational requirements thatare disproportionate to the bene-fits achieved.

The fundamental question iswhether these almost incalculableand soaring costs can continue tobe insured with such exorbitantlimits. Escalating wreck-removalcosts have been on our radar as a

distinct risk of change for sometime now. Over the past year, wehave made specific proposals con-cerning their future insurability tothe marine markets, both withregard to the structure of reinsur-ance and the P&I insurers’ proce-dure towards coastal states.

Wreck-removal costs mustremain insurable in the future;but we need a balance betweenthe interests of the primaryinsurers, reinsurers and ship-owners, and a high level of trans-parency between the parties.Every wreck can be salvaged intheory, but not every salvageoperation and not every salvagetechnique is economically viable.Costs and benefits must alwaysbe weighed up and the coastalstate, shipowner and its P&Iinsurer must ensure adherenceto the principle of proportional-ity – provided, of course, the sal-vage operation is ecologicallycompatible.n

Dieter Berg is senior executivemanager, marine at Munich Re

2) Underwater support

Fifteen refloatingcaissons are welded onthe left side of the wreck

3) Parbuckling or rotation

It takes a couple ofdays as movement isconstantly monitored

4) Refloating

Air inside the caissonsaids the ship to float

Source: theparbucklingproject.com

Table: Top 20 wreck cases for combined cost of salvage, Scopic and wreck removal, 2002 to 2012

Year P&I club Vessel ROW/Scopic($)

2002 Gard Tricolor 54,742,493

2003 West of England CP Valour 44,553,142

2004 UK Hyundai No 105 57,664,127

2004 Swedish Selendang Ayu 148,118,187

2005 Japan Twin Star 33,751,367

2006 West of England Ocean Victory 52,155,913

2006 Swedish Rokia Delmas 73,284,457

2006 Japan Giant Step 38,887,613

2006 American California 44,066,473

2006 London MSC Napoli 135,301,307

2007 Swedish New Flame 177,372,321

2007 West of England Sea Diamond 57,983,161

2007 Japan Eastern Bright 58,513,442

2008 America Fedra 66,162,281

2010 UK Jolly Amaranto 43,517,545

2010 Standard MSC Chitra 102,474,886

2011 Swedish B Oceania 55,080,527

2011 Swedish MV Rena 243,972,652

2011 Standard Costa Concordia 561,636,615

2012 Gard Bareli 54,327,008

Total ROW/Scopic 2,103,565,517

Source: International GroupFigures correct as at Feb 20, 2013

As a result of theincreasing complexity of wreck-removal andsalvage operations, theP&I industry has seen an alarming rise in costsin recent years

TheremainsofMVRenaoffAstrolabeBeach,NewZealand:RenaandCostaConcordiaarepartofatrendofspirallingP&Icosts

Maritime New Zealand

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INSIGHTwww.insuranceday.com| Friday 15 August 2014 5www.insuranceday.com| Friday 15 August 2014

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DRESSDOWNFRIDAYwww.insuranceday.com| Friday 15 August 2014

What is yourfavourite...

Sport/sporting team? Sport: tennis.Team: England cricket team.Car? AC Cobra 427 (Mark III).Meal?I’mmarriedtoaSpaniard,soIhavetosaytapas(properSpanishtapas,thatis).Book? Open, Andre Agassi. A startlinglyhonest and well-written sportsautobiography.Film? Star Wars.Music? I’ve recently discovered TheWar on Drugs.Holiday destination? South of France.

yet it takes an inordinate amountof time to address them, if at all.

If you did not work in theindustry, what job would youlike to do?Professional tennis player. Thatsaid, as I get older the job of cricketpundit is pretty appealing – follow-ing the sun all year round withother ex-players and engaging in acoupleofhoursofbanterontheair-waves every other week.

What do you see as the biggestchallenge facing the industry?Regulation is a huge challenge.While most are agreed the regula-tors are doing a vital job, thenumber of regulators and volumeofregulationsputhugepressureonthe industry. Combine this with thevast quantities of data insurerscapture, consume, analyse andneed to use effectively to satisfythe regulators and there is a realdanger the two will become un-manageable. Regulation and datashould be seen as a “business as

usual” activity, not become a cot-tage industry and a distractionfrom the core business.

How do you let your hair down?Playing sport, mainly tennis thesedays, when time allows, though I’moftenfollowingthesportingendeav-oursofmynine-year-oldson.

If you could be anywhere in theworld right now, where wouldyou be?I’m off to Lot et Garonne in south-west France next week and lookingforwardtoit.

What life lesson would you passon to others?You create your own opportunitiesin life; it is up to you to make themost of them.

Where do you want to be in 10years’ time?I would like CMC Insurance to havemaximiseditspotentialandbehelp-ing the market address the chal-lengesitwillbefacingin2024.n

“I’m off to Lot et Garonne insouth-west France next weekand looking forward to it”

NickStammersCo-founderandcommercialdirector,CMCInsurance

Power behind the throneWho are you and what do you do?I am Nick Stammers. I co-foundedand run CMC Insurance, whichdelivers complex programmes inregulatory,riskandfinancedataforthe global insurance/reinsurancemarket. I am responsible for strate-gic and commercial development,which includes evolving and pro-moting our business and serviceswith internal and external stake-holders,bothexistingandnew.

How did you end up in yourcurrent role?My partners have a very successfulbusiness delivering regulatory andrisk data programmes into invest-ment banks.

Over lunch one day, we starteddiscussing the applicability ofsuch services to the insurance/reinsurance market and agreedthere was a growing demand forgenuine specialists in risk and reg-ulatory data. I had spent severalyears with an insurance servicesprovider and felt the time was rightto set up a new venture, which weduly did.

What has been the mostmemorable moment of yourtime in the industry?I have to say opening the shopdoors for CMC Insurance. A tre-mendous amount of time, workand planning goes into starting anew business and the moment itswitches from concept to reality ishugely exciting. The launchattracted significant interest and, ifI am allowed to be a little vain, itwas incredibly satisfying to see thecompany’s name in the insurancepapers – including on the frontpage of Insurance Day.

What is the worst job you haveever had?Stacking shelves at a supermarketwasn’t a great deal of fun. Startingat 6 am didn’t sit particularly wellwith a lazy student who wouldnormally be contemplating at leastanother six hours in bed.

What is the best deal youhave done?It may sound obvious, but the dealto make CMC Insurance happen. Toget to the point where we had astructure and agreement all of thestakeholders were happy with wasextremely rewarding on both apersonal and professional level.

Who has had the biggestinfluence on your career?I wouldn’t say there has been anyone person. A combination offamily and friends, backing me to

Industryprofessionals teeoff for InsuranceCharity Golf Day

T he 25th annual Insur-ance Charity Golf Daybrought 120 playersfrom across the insur-

ance market to raise money forCancer Research UK. The eventwas held at the iconic Stoke-by-Nayland Golf Resort by City of Lon-don Friends’ of Cancer ResearchUK and partnered by insurancesoftware firm Total Objects.

The event has raised more than£250,000 ($417,067) for the charityover the past quarter of a century.Thisyear’seventincluded120play-ers fromtheinsurancemarketwhocompeted for the individual andteam prizes.

In this year’s event on August 8,

Lloyd’s Broker Cooper Gay onceagain claimed the team award,for a third consecutive year, withan aggregate score of 54.7 andDavid Brooke-Durrant from JLTTowers Re was the first recipientof the Kevin Collins MemorialTrophy scoring 40 points in theStableford Challenge.

As part of the 25th anniversary,the event concluded with perform-ances from the Twister Aerobaticteam. This year’s event made fund-raisingmoreaccessibletothosenotparticipating in the tournamentevents by introducing the “TotalObjects Just Giving Giveaway”whereby a minimum £10 donationensures entry into a prize draw,with prizes including a ski holidayto Austria and an executive box fora Premier League match.

Those interested in enteringcan do so at www.justgiving.com/TotalObjectsCharityGolfDay/.n

Alexis BurrisReporter

Community

trust my instincts, a couple ofchief executives who have givenme opportunities and guidance aswell as colleagues who have sup-ported me.

If you could change one thingabout the industry, what wouldit be?An ability to make much faster(informed) decisions. While youwould expect a supplier to saythis, I believe it is applicable atboth an organisational and indus-try level.

We often hear about and dis-cuss industry issues such as regu-lation, technology and talent and

Lloyd’sbranch ofRBL to takepart inWWIremembrancebike ride

Members of the Lloyd’s branch ofthe Royal British Legion (RBL) willtake place in a bike ride to remem-ber the first shots fired in the FirstWorld War 100 years ago, writesAlexisBurris.

Theridewill takeplaceonAugust18andwillcover260milesfromtheCity of London to Mons, Belgium.Participants will be raising moneyfor the RBL and honouring thosewhodiedinthewar.

The team had raised more than£4,600 ($7,672) as of August 14 andare seeking donations throughtheir Just Giving page: www.just-giving.com/royal-british-legion.n

Credit Suissepromotesfinancialliteracy foryoung womenThe Credit Suisse Global Educa-tion Initiative has announced itwill be partnering with organisa-tions Aflatoun and Plan Inter-national to promote financialliteracy in girls and youngwomen, writes Alexis Burris.

The partnership will help fundprogrammes to educate on theimportance of achieving financialstability through saving.

Credit Suisse’s Global EducationInitiative was founded in 2008 andsupports selected internationaldevelopment organisations toimprove the education opportuni-ties for thousands of school-agechildren and young peoplethrough locally relevant pro-grammes across the regions inwhich Credit Suisse operates.n

260 Miles thebike ridewill cover

7www.insuranceday.com| Friday 15 August 2014

What is yourfavourite...

Sport/sporting team? Sport: tennis.Team: England cricket team.Car? AC Cobra 427 (Mark III).Meal?I’mmarriedtoaSpaniard,soIhavetosaytapas(properSpanishtapas,thatis).Book? Open, Andre Agassi. A startlinglyhonest and well-written sportsautobiography.Film? Star Wars.Music? I’ve recently discovered TheWar on Drugs.Holiday destination? South of France.

yet it takes an inordinate amountof time to address them, if at all.

If you did not work in theindustry, what job would youlike to do?Professional tennis player. Thatsaid, as I get older the job of cricketpundit is pretty appealing – follow-ing the sun all year round withother ex-players and engaging in acoupleofhoursofbanterontheair-waves every other week.

What do you see as the biggestchallenge facing the industry?Regulation is a huge challenge.While most are agreed the regula-tors are doing a vital job, thenumber of regulators and volumeofregulationsputhugepressureonthe industry. Combine this with thevast quantities of data insurerscapture, consume, analyse andneed to use effectively to satisfythe regulators and there is a realdanger the two will become un-manageable. Regulation and datashould be seen as a “business as

usual” activity, not become a cot-tage industry and a distractionfrom the core business.

How do you let your hair down?Playing sport, mainly tennis thesedays, when time allows, though I’moftenfollowingthesportingendeav-oursofmynine-year-oldson.

If you could be anywhere in theworld right now, where wouldyou be?I’m off to Lot et Garonne in south-west France next week and lookingforwardtoit.

What life lesson would you passon to others?You create your own opportunitiesin life; it is up to you to make themost of them.

Where do you want to be in 10years’ time?I would like CMC Insurance to havemaximiseditspotentialandbehelp-ing the market address the chal-lengesitwillbefacingin2024.n

“I’m off to Lot et Garonne insouth-west France next weekand looking forward to it”

NickStammersCo-founderandcommercialdirector,CMCInsurance

Power behind the throneWho are you and what do you do?I am Nick Stammers. I co-foundedand run CMC Insurance, whichdelivers complex programmes inregulatory,riskandfinancedataforthe global insurance/reinsurancemarket. I am responsible for strate-gic and commercial development,which includes evolving and pro-moting our business and serviceswith internal and external stake-holders,bothexistingandnew.

How did you end up in yourcurrent role?My partners have a very successfulbusiness delivering regulatory andrisk data programmes into invest-ment banks.

Over lunch one day, we starteddiscussing the applicability ofsuch services to the insurance/reinsurance market and agreedthere was a growing demand forgenuine specialists in risk and reg-ulatory data. I had spent severalyears with an insurance servicesprovider and felt the time was rightto set up a new venture, which weduly did.

What has been the mostmemorable moment of yourtime in the industry?I have to say opening the shopdoors for CMC Insurance. A tre-mendous amount of time, workand planning goes into starting anew business and the moment itswitches from concept to reality ishugely exciting. The launchattracted significant interest and, ifI am allowed to be a little vain, itwas incredibly satisfying to see thecompany’s name in the insurancepapers – including on the frontpage of Insurance Day.

What is the worst job you haveever had?Stacking shelves at a supermarketwasn’t a great deal of fun. Startingat 6 am didn’t sit particularly wellwith a lazy student who wouldnormally be contemplating at leastanother six hours in bed.

What is the best deal youhave done?It may sound obvious, but the dealto make CMC Insurance happen. Toget to the point where we had astructure and agreement all of thestakeholders were happy with wasextremely rewarding on both apersonal and professional level.

Who has had the biggestinfluence on your career?I wouldn’t say there has been anyone person. A combination offamily and friends, backing me to

Industryprofessionals teeoff for InsuranceCharity Golf Day

T he 25th annual Insur-ance Charity Golf Daybrought 120 playersfrom across the insur-

ance market to raise money forCancer Research UK. The eventwas held at the iconic Stoke-by-Nayland Golf Resort by City of Lon-don Friends’ of Cancer ResearchUK and partnered by insurancesoftware firm Total Objects.

The event has raised more than£250,000 ($417,067) for the charityover the past quarter of a century.Thisyear’seventincluded120play-ers fromtheinsurancemarketwhocompeted for the individual andteam prizes.

In this year’s event on August 8,

Lloyd’s Broker Cooper Gay onceagain claimed the team award,for a third consecutive year, withan aggregate score of 54.7 andDavid Brooke-Durrant from JLTTowers Re was the first recipientof the Kevin Collins MemorialTrophy scoring 40 points in theStableford Challenge.

As part of the 25th anniversary,the event concluded with perform-ances from the Twister Aerobaticteam. This year’s event made fund-raisingmoreaccessibletothosenotparticipating in the tournamentevents by introducing the “TotalObjects Just Giving Giveaway”whereby a minimum £10 donationensures entry into a prize draw,with prizes including a ski holidayto Austria and an executive box fora Premier League match.

Those interested in enteringcan do so at www.justgiving.com/TotalObjectsCharityGolfDay/.n

Alexis BurrisReporter

Community

trust my instincts, a couple ofchief executives who have givenme opportunities and guidance aswell as colleagues who have sup-ported me.

If you could change one thingabout the industry, what wouldit be?An ability to make much faster(informed) decisions. While youwould expect a supplier to saythis, I believe it is applicable atboth an organisational and indus-try level.

We often hear about and dis-cuss industry issues such as regu-lation, technology and talent and

Lloyd’sbranch ofRBL to takepart inWWIremembrancebike ride

Members of the Lloyd’s branch ofthe Royal British Legion (RBL) willtake place in a bike ride to remem-ber the first shots fired in the FirstWorld War 100 years ago, writesAlexisBurris.

Theridewill takeplaceonAugust18andwillcover260milesfromtheCity of London to Mons, Belgium.Participants will be raising moneyfor the RBL and honouring thosewhodiedinthewar.

The team had raised more than£4,600 ($7,672) as of August 14 andare seeking donations throughtheir Just Giving page: www.just-giving.com/royal-british-legion.n

Credit Suissepromotesfinancialliteracy foryoung womenThe Credit Suisse Global Educa-tion Initiative has announced itwill be partnering with organisa-tions Aflatoun and Plan Inter-national to promote financialliteracy in girls and youngwomen, writes Alexis Burris.

The partnership will help fundprogrammes to educate on theimportance of achieving financialstability through saving.

Credit Suisse’s Global EducationInitiative was founded in 2008 andsupports selected internationaldevelopment organisations toimprove the education opportuni-ties for thousands of school-agechildren and young peoplethrough locally relevant pro-grammes across the regions inwhich Credit Suisse operates.n

260 Miles thebike ridewill cover

8 www.insuranceday.com| Friday 15 August 2014

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