Modern Insurance Magazine Issue 61

ASSOCIATIONS ASSEMBLE
Sue Brown
Title: Chair
Association: Motor Accident Solicitors Society
(MASS)
Good Corporate
Governance
There’s a developing theme within the
justice sector that is worrying. It concerns
some of the basic principles of good
corporate governance that had supposedly
been universally accepted. Regrettably,
at least two of these principles are being
challenged: transparency in the decisionmaking
process, and consultation in a
timely fashion.
Too many important decisions are being made in an
opaque manner, leading to distrust and cynicism,
unbalanced decision making, and potentially serious
consequences for those in the legal sector – not to
mention the claimants they represent. Technical but
important changes to rules are being developed by a
few individuals within a supposed formal framework.
For instance, some standard directions for dealing
with credit hire have been published without any
transparency about who precisely drafted the changes,
and which organisation they represent. It is suggested
that decisions are being signed off outside the Civil
Procedure Rule Committee, which is composed of lay
members from across the sector. Instead, some internal
committees are often ‘fluid’ in terms of membership,
but it has long been an important principle within
the sector that both claimants and defendants are
represented in order to strike a balance, and smooth
implementation when an agreement is reached.
Consultation exercises are no longer as robust as
they were only a few years ago in terms of length
and role, but at the very least, they should be timely.
This facilitates scrutiny and allows sufficient time for
implementation by stakeholders. Too often, complex
rule changes are being published at the last possible
moment, or final versions of draft rules are being
published late, such as the rules on fixed recoverable
costs.
These may seem like trivial gripes, but important
principles around fairness remains, ensuring a level
playing field for claimants, defendants, lawyers and
insurers that impact
ordinary people
when they come
into force. These are
principles that need
protection.
Anthony Hughes
Title: Chairman & CEO
Association: Credit Hire Organisation (CHO)
Steady Progress
with Social
Mobility
As culture wars rage in UK media and
politics, and certain politicians want to take
us back to the 1950’s, the business sector is
making steady progress to improve Social
Mobility and create a diverse workforce.
Diversification is vital. According to recent reports,
the recruiting challenge in the insurance sector is at a
thirteen year high - with roles in technology, actuarial
and analytics the toughest to fill. Average attrition
in the industry is in the high teens. Post-pandemic,
new technology enables firms - including credit hire
companies - to hire people on a WFH basis, ideal for
working parents, students, and others who may have
previously been off limits for 9-5 jobs. These incentives
all take strides towards Social Mobility.
Moreover, data analytics atomises society. Sweeping
citizens into broad socio-economic groups is so last
year. Consumers buying specialist bike insurance, for
example, would prefer to deal with people who really
know biking, rather than an agent who cares little
about the difference between a bobber and a tourer.
These days, customers will also self-categorise into
ever smaller communities, a phenomenon undoubtedly
catalysed by social media.
Evidence shows that diverse businesses do
better. In 2018, McKinsey published a report that
found companies in the top 2 percentile for diversity
on their executive teams were 15% more likely to
deliver above-average profits. Many other research
studies underline how diverse businesses are also more
innovative, and thus, more successful.
If corporates wish to thrive in the future,
affirmative action to improve
Social Mobility is a must.
It may very well be the
difference between
success and failure, for
entire industries as well as
individual businesses.
MODERN INSURANCE | 35