Mutually Yours, December 2018 This issue includes articles on: Communication from the AFM C-Suite An overview of new developments from AFM Our newest Associate Member News from our Members Events and training Colleague Loyalty - there is a silver bullet! Situation semi-vacant?
Communication from the AFM C-Suite Welcome to the latest edition of Mutually Yours. Reflecting on the success of this year's annual conference in October, it seems very clear to me that the theme of the event, 'The Loyal Company', has become even more relevant in the last few weeks. The concept of 'The Loyal Company' starts with the expectation that before customers, employees and other stakeholders might reasonably be expected to build a long-term relationship with a company, that organisation needs to demonstrate, through its culture and behaviours, that it is 'doing the right thing'. Loyalty to customers, to employees, or to the local community, is an important prerequisite to loyalty in return. Amongst the signs that 'The Loyal Company' is becoming an increasingly relevant concept is the news from the Financial Conduct Authority that it is undertaking a review into fair pricing in financial services, with a particular focus on general insurance. FCA has announced, in particular, a market study into home and motor insurance, focusing on issues like whether insurers unfairly take advantage of some customers by charging different rates, or whether existing customers pay too much for cover compared to new customers. These are primary examples of whether loyalty to an insurer backfires if the insurer exploits the opportunity to charge more. Then there are the announcements from a wide range of UK based and international bodies on the increasing importance for insurers, and other financial services organisations, to take account of issues like sustainability and climate control. For example, a few days ago, the European insurance regulator, EIOPA set out proposals to amend Solvency 2 and IDD rules, to require insurers to consider the potential impact of long-term investment decisions on sustainability, and to take account of their policyholders preferences with regard to environmental, social and governance factors. This follows rapidly in the wake of PRA and FCA papers on risk management of climate control.
And finally- for now- the government announced in November that the NHS would become more focused on 'prevention is better than cure', recognising that on average, whilst people are living longer, 20% of our lives will be spent in poor health. That change in emphasis will take some time to become apparent in the NHS, but it is already something that is very evident in AFM members, with regular announcements from members on how they are delivering more value to customers and more benefits to members, to help them to lead healthier lives. Those are all very recent and valuable examples of how 'The Loyal Company' has increasing relevance. We've set up a page on the AFM website with more examples and background on the issue. Martin Shaw, Chief Executive, Association of Financial Mutuals An overview of new developments from AFM AFM Members' Staff Survey 2018 Members will recall that over the summer we issued an employee survey. We received over 600 responses and these provide valuable and robust evidence of the way our members develop their business and culture. The survey repeated an exercise in 2016, and complemented a board survey earlier in the year. You can read the report here. In addition, we have prepared individualised reports for each organisation that provided 15 or more responses, which are being issued via e-mail to Chief Executives. Calimere Point Risk Advisory, who provide technical support to AFM on the survey report have confirmed they would be happy to provide further analysis if required. If you have any questions on the survey, contact martin@financialmutuals.org. AFM Corporate Governance work In October, during the AFM conference, we launched a consultation into a new corporate governance code for AFM members. The consultation period has now closed and we have reviewed all the feedback received.
Members were broadly supportive of the approach being taken, and welcomed the greater flexibility and proportionality in the proposed approach. Some respondents queried whether it was appropriate to benchmark with principles established for privately owned companies, rather than listed companies, and some highlighted the risk of oversimplification. We will be issuing the final revised Code later in December, with a summary of the feedback received and an explanation of changes made in light of those responses. We are also reviewing other governance material, in light of changes to the Code, and the implementation of the full Senior Managers & Certification Regime (SM&CR). This includes our NED toolkit and overview of the duties of directors. With SM&CR coming into effect on 10 December, AFM and Hanover Search are hosting a roundtable on 6 December where the Prudential Regulatory Authority will give an overview of how the regime will work. AFM appoints Carr Consulting and Communications to support our PR work AFM has appointed Carr Consulting and Communications as its new PR partner. From 1 January, the agency will be working with AFM and members to develop a new PR strategy and to maximise opportunities for promoting the sector through press releases and comments. With a number of AFM members as clients, and with wide awareness of their work across the insurance sector, this is an ideal and exciting partnership for AFM and its members. We look forward to introducing Kevin and partners to members at events through the year. AFM joins the European mutuals trade body AMICE The AFM Board agreed in October to apply to join the European trade body AMICE (Association of Mutual Insurers and Insurance Co-operatives in Europe). The AMICE Board in turn approved AFM as members, and we look forward to working with colleagues across Europe. Across Europe, mutuals have a market share in insurance of around 30% and a collective premium income of nearly 400 billion. AMICE's prime purpose is to ensure that the voice of the mutual and cooperative insurance sector in Europe is heard and that the interests of its members are taken into account in securing a level playing field for all insurers in Europe, regardless of their legal form.
Our newest Associate Member The Eversheds Sutherland Insurance Group is a multi-disciplinary team. In addition to lawyers with experience in insurance, our team includes compliance consultants and former employees of the financial regulators. We act for a number of mutual, Friendly Societies and life and generals insurers and can advise in relation to the full spectrum of legal and regulatory issues within the insurance industry, including compliance, distribution, transactional and disputes. We understand the parameters within which Mutuals and Friendly Societies must operate, whether they are insurers, distributors or providers of discretionary benefits, and we also have particular expertise in advising upon health cash plans and in healthcare trusts.
News from our Members Benenden Health teams up with York Cares and City of York Council to 'adopt' a playpark BHSF explores the pros and cons of homeworking British Friendly signs up to the HM Treasury's Women in Finance Charter Health Shield joins forces with Aberdeen Football Club to provide health and wellbeing initiatives Medicash unveils plans to donate more than 700K to charity Shepherds Friendly amongst finalists for the 2018 UK and Europe Employee Engagement Awards Unity Mutual offers a new Lifetime Investment ISA In other news: Only 1 in 71 adults has Income Protection. The Mail Online reveals why this number should increase, with reference to a case study from an AFM member.
Events and Training The AFM bi-monthly Events and Training Bulletin: We are busy populating a 2019 calendar of AFM events and training for members, and we'll be keeping you updated on these through our newsletter, as well as through our new regular bimonthly bulletin. You can also visit the AFM Events and Training page for an overview and further information about all our activities. We are always keen to hear your suggestions for further training and events, so please let us know how we can help. Senior Insurance Managers Regime Seminar - 6 December - The Dome Room, 1 Cornhill, London EC3V 3ND Hosted by Hanover Search and presented by Nick Dexter, Senior Advisor PRA, this roundtable will explore the implementation of SM&CR and experiences of progress with deposit-takers, with a particular focus on developing risk and governance frameworks within the expanded Senior Managers Regime. Event leaflet
To book your place, please email tamasin@financialmutuals.org Save the date The next AFM CEO Forums will be held on 28 and 31 January 2019; further details to follow in the AFM Events and Training Bulletin. Leadership and Management Training Accelerate leadership training/stepping Up management training in association with Origos Accredited qualifications in Coaching and Mentoring/Leadership and Management in partnership with BHSF Other events You may also be interested in the following events from our key working partners: ILAG is running a seminar on Transforming Culture in Financial Services on 29 January 2019 COVER are now taking registrations for their new Mental Health Forum, to be held on 5 March 2019 in London Colleague Loyalty - there is a silver bullet! Wellbeing pioneers, Agile Human, reflect on how to build loyalty and retain talent...
There s a seismic shift we re seeing in the workplace and it s having a disruptive impact on many businesses. The new generation workforce just doesn t appear to have a problem with leaving their employers after what many have traditionally felt is a relatively short time in role. What was once viewed as job hopping is now seen as experience building. Moving around is a smarter way of developing life and commercial skills. Speaking with a number of business owners and HR leaders, they re sharing with us that a high proportion of new hires are leaving after just 12 to 18 months and it s creating some real challenges, especially for those that are relatively small outfits. One or two people leaving from a small team amplifies the loss. Building loyalty can take time, so, how can you accelerate this process for new hires and hold on to your talent for longer? Get these right and see the difference it makes. Read more... Situation semi-vacant? Active supporters of AFM will know that for many years we have retained a register of NED candidates. We know the CVs on this list are regularly reviewed by Members, in the early stages of NED recruitment. You can see the current candidates on the AFM website, here. We would also like to explore setting up a list of candidates for interim positions. The challenging environment in which we operate, coupled with the need to ensure the right skills are in place all the time, means that there is increasing demand from Members for interim managers to fill short-term positions. If you or anyone you know would be interested in adding your CV to a list of candidates for interim roles, please contact us. Contact us
Please get in touch: We are always interested in hearing your views on Mutually Yours, and receiving any appropriate articles you may wish to contribute. For this, or any other information about AFM and its activities, please contact: Martin Shaw: martin@financialmutuals.org / 07887547195 Tamasin Larocque-Fathers: tamasin@financialmutuals.org / 07741 656605 Season's Greetings from the AFM!