AGERS “LOOKS” to the future, on its XIX Day of Expectations for the Renewal of Insurance Programmes for 2014.
On the 14th of November, in Madrid, AGERS united once again for the XIX Day of Expectations for the Renewal of Insurance Programmes, with great success. More than 300 people were in attendance, among them Insurers, Brokers, Experts, Intermediaries, Consultants, Independent Experts, Politicians, Public Institutions and a strong presence of Risk Managers.
Those taking part in the opening ceremony of the XIX Day of Expectations for the Renewal of Insurance Programmes for 2014 were Fernando Pablo Moreno, Deputy Director General of Inspection for the General Directorate of Insurance and Pension Funds (DGSFP), along with Miguel Ángel Zarandona, President of AGERS and Risk Manager for El Corte Inglés, Juan Carlos López Porcel, Vice-President I of AGERS and Risk and Insurance Director for ARCELORMITTAL Spain, Alfredo Zorzo, Vice-President II of AGERS and Head of Insurance for ORANGE, and Gonzalo Iturmendi, Lawyer, Secretary General of AGERS and Director of Bufete G. Iturmendi and Associates.
The Deputy Director General of Inspection underlined the meeting’s importance by reviewing the roadmap of the main actions implemented during 2013 by the Spanish Insurance Supervisory, such as the regulatory framework for insurance in Spain and the European implications. He also commented on the process of adaptation to Solvency II and its current state after being picked up in 2012. The sector continues to suffer recession, and although there was a slight life insurance premium rise during the first quarter (Q1), this was short-lived. “Life” maintains a good level of premiums, but “non-life” has fallen by 2.3%. He also commented on the insurance mediation reform, the future insurance contract law and the revision of the rates of compensation for bodily damage caused by road accidents.
The first session was delivered by Cristina Garmendia, President of Genetrix and Minister for Science and Innovation (2008-2011), and presented by Juan Arsuaga, Managing Director of Lloyd’s, who was accompanied by the President of AGERS
Miguel Ángel Zarandona (Corte Inglés). Ms.Garmendia shared her inspiring vision with the attendees and emphasised that Spain’s main challenge, along with the rest of Europe, is to use innovation as the driving force behind our lives.
The moderator for the Global Market Panel, Ignacio del Corral, Head of Insurable Risks for Santander Bank, gave way after his presentation to Peter McClean, Director of Financial Services Ratings for Standard & Poor’s, who affirmed that despite losses of $77 billion, Reinsurers have published healthy results in 2012.
Eugenia Gamo, Senior Property Underwriter for Munich Re, continued by stressing that insuring the supply chain can be complex due to differing requirements, and concentrating on the industry’s “mega-whys” would possibly have a greater impact. Ruth Duque, Partner at DAC Beachcroft, closed the discussion, amongst other things, with a review of the diverse regulatory projects currently in motion: Solvency II, IMD II, Traffic Accident Rates and LCS Reform (centred on the ceasing of the current project).
After the break, where participants were heavily engaged in “Networking”, the Property Damage Panel commenced. José Pedro Gutiérrez, Head of Property Underwriting for Allianz Global Corporate & Speciality, gave a presentation on Risk Management Techniques in relation to the client’s supply chain,
continuing the theme of the previous speaker.
Alfonso Manrique, Deputy Director of Valuation for the Insurance Compensation Committee (C.C.S.), gave a summary of both the latest meteorological events that have affected the C.C.S., such as atypical cyclonic storms and the resulting loss of profit, and the latest developments in the supply field.
John Chapman, Head of International Projects for March.JLT, spoke about construction insurance and its requirements. He placed particular emphasis on the importance of this product for the large construction firms in Spain, contractual options, renewal expectations and the continuation of a soft market with lots of capacity and new competitors. Juan Miguel García Mediavilla, Corporate Insurance at CEPSA, was responsible for the moderation of the panel.
As a novelty on the day, the President of the Association, Miguel Ángel Zarandona (Corte Inglés), offered an excellent review of the new challenges facing AGERS and introduced AGERS 2.0 – not as a brand or logo, but as a new philosophy for the Association. He continued by explaining the progress of the “AGERS Risk Management Community” to the audience, guided by Alfredo Zorzo, Vice-President II of AGERS (ORANGE), and gave a demonstration of AGERS’ programme of work in the Cyber Risks field, a topical issue in the current environment. Next, Juan Carlos López Porcel, Vice-President I of AGERS, (ARCELORMITTAL Spain), provided an animated and original display of AGERS’ focus on International Programmes.
The Panel concluded with a speech by Julien Bedhouche, Head of EU Matters at FERMA, who signalled that its presence in European institutions is amongst his current objectives, collaborating with them in areas such as Solvency II, the concerning triple threat of environmental responsibility, offshore oil activities and the nuclear sector, the insuring of natural and human caused disasters and collective claims. The stand out methods of such collaborative working with EU
Institutions includes the development of courses and seminars, talks and position papers etc.
During her section, Isabel Martínez Torre-Enciso, board member of both AGERS and FERMA, explained the “FERMA Risk Managers Benchmarking Survey 2014” project to the audience. The objective of what is the seventh edition of the survey is to “CARRY OUT A BENCHMARK OF RISK MANAGEMENT PRACTICE IN EUROPE” across three new areas: professional vision, the
European risk map and the insurance sector.
The Civil Liability Panel was moderated by Jesús Merino, Head of Risk Management and Insurance at GESTAMP. Participating in the panel were Diego López, Director of the Development of Corporate Business for Civil Liability at WILLIS Iberia and Javier Ybarra, Insurance Underwriting Manager, XL Group.
Diego López referred to general civil liability insurance by describing the behaviour of the area during the last year, characterised by a fall in claim rates, excessive market capacity, specialised insurance solutions and how competitiveness in the mediation of this insurance type causes a reduction in economic conditions. Javier Ybarra centred his presentation on professional civil liability insurance and venture capital administrator and executive insurance, underlining the major litigation in these risks and ever-increasing international growth, with many insurance companies coming together to provide ample and continually assessed products in the face of such risks. It is expected
that the regulation of the National Stock Market Commission’s Corporate Governance will have an impact on the liability risks of administrators and executives once it receives approval in 2014.
Esperanza Pereira, Head of the Risk Management and Insurance Department for AENA, moderated the Transport Panel where Lourdes Aguanell, Marine Account Manager at EURAPCO, gave a speech on the challenge facing Transport Insurance and how the industry is adapting during these times, paying special attention to the effect of catastrophic claims on this area. Paola Serrano, Director of Aviation and Space at MAPFRE Global Risks, concluded the panel by showing good results in the
aviation sector, caused by a strong performance in claims and a large market capacity, resulting in a Soft Market at present.
During the final panel, exploring the subject of Special Risks, José María Segón, National Director of AON Credit, outlined the credit situation in Spain and a need for the GDP to grow by at least 3.5% per year in order to generate employment. He also reviewed the financial statement, the closure of businesses and how all of this impacts the insurance industry.
Closing the panel was María José Cruz, Head of M&A Subscription at AIG Iberia, who commented on the existence of two types of companies in Spain and Europe: those that divest and those that are looking to invest. These instances of buy-outs and joint ventures of businesses, named Mergers and Acquisitions (M&A), carry specific insurance requirements in order to cover the risks that arise due to such activities. María José gave an excellent summary on this insurance type,
which offers the option to transfer risks between both the selling entity and the acquiring firm.