David Carr, London Regional Manager of Hays Insurance & Financial Services, answers your questions about the London Market Reforms and the impact on insurance jobs.
What are the London Market Reforms?
This is a programme aimed at identifying the inefficiencies in the London insurance market to develop solutions that will increase firms’ competitiveness in the Global insurance market.
The goal of the Market Reform Group is to ensure that London remains the market of choice for insurance risks.
How will brokers be affected?
The effect will be fourfold. It will: 1) act as a deterrent for inefficient processes; 2) increase customer expectations and improve the level of service offered; 3) stimulate competition from other markets and 4) increase broker efficiency, thereby adding to business volume.
Any changes to broking jobs in London/rest of the UK?
Brokers will have to adhere to the guidelines that have been set in place ie administering of slips leading to less ‘ad hoc’ business. The increased formality will bring about efficiency gains for the market.
How will it affect recruitment in the insurance market?
Brokers will need to have experience in the field and be adept at following these working practices.
Will this impact the number and type of broking jobs?
Individuals armed with this knowledge will be in high demand to begin with but over time the effect will be reduced as more and more take on board the new guidelines.
A similar scenario befell regulatory and compliance jobs when the FSA took control of the insurance market and regulated the processes.
What do I need to do to make myself more employable?
Keep up to date with all necessary changes and make sure you have a full understanding of the processes.
Will London brokers benefit, financially or otherwise?
It will improve processes and thereby increase revenue streams. Initial start-up or set-up costs will have to be accounted for and staff may need retraining.
Will this result in an influx of insurance professionals to London?
A number of technical departments are based out of London. Relocation is not necessary, as the process will be fully automated.
How will it affect the image of the insurance profession?
By increasing professionalism and efficiency, this can only bring benefits to the insurance brand.