News


illis and Miller have revealed details of their much anticipated deal to merge


some operations. But they have also stressed that, despite talks being at an advanced stage, there is no certainty that a deal will happen. The companies are exploring the possibility


TUESDAY 21.10.14


Willis-Miller reveal wholesale merger plans W


of combining their wholesale units to form a new London wholesale specialist broker that would operate under the Miller brand. Separately, Miller’s treaty reinsurance and


retail-orientated brokerage activities could transfer to Willis. Willis would become a partner and have a


majority interest in the newly created wholesale unit, to be called Miller Insurance Services. Partners of Miller would also retain a significant partnership interest, the companies said. “The proposals under discussion would


confirm Miller as a leading London specialist wholesaler, allowing Willis and Miller to


Dominic Casserley and Graham Clarke


“The proposals under discussion would confirm Miller as a leading London specialist wholesaler, allowing Willis and Miller to draw on each other’s professional strengths.”


Communication: the heart of a relationship G


ood communication remains essential to a successful relationship with clients,


Charlotte Cross, reinsurance underwriter at Kiln, told Baden-Baden Today. She also stresses the value of long-term relationships with traditional players. “Communication continues to be at the


heart of any relationship; we have to take the time to understand each other’s businesses,” she said. “We underwrite the company philosophy and the individuals within it.” She added: “At Kiln we underwrite the client,


so fostering strong, long-term relationships with them is key as it helps us to understand what keeps them awake at night and to determine the cover that is appropriate for them. These relationships evolve over time as our clients step up to meet new and differing challenges.” She


added that an increased use of


modelling within the industry has also changed the dynamic between buyers and sellers of risk transfer products. Kiln, which is soon to be rebranded Tokio Marine Kiln, manages this by communicating with clients more often during the year. “In today’s market, our ability to suggest


other programme options is limited to the point of renewal. With the rise of modelling, clients


appear to come into the market with very fixed ideas as to how they want their protection structured,” Cross said. “We therefore try to ensure we make clients


aware of any different structures they might want to consider throughout the year, rather than solely discussing them at the point of placement.” She said some clients are looking at


reinsurance product as a more collateralised offering. While for some lines of business this might be appropriate, she believes that for catastrophe business it would appear to be slightly misaligned with the protection Kiln is selling. “In territories where there has not been


a loss for a few years we are often presented with the earned premium position of the programme. These charts highlight the benefit of choosing to stay with a reinsurer in the long term,” she said. “With long term relationships, when that


loss happens there is a financial base from which to assess the pricing going forward. If you are moving insurance companies every few years the money you are paying for the protection will never work in that way.” She also stresses the importance of scale in the industry today, with more stringent


6 | BADEN-BADEN TODAY | DAY 2: Tuesday October 21 2014 the Charlotte Cross


regulation meaning that bigger insurers are better equipped to cope. “With the rise of regulation you could say


that companies have to be of a certain scale to justify the financial burden that this level of consumer protection necessitates,” Cross said. “The old days of companies managing their


business purely by best practice and managing the risks appropriate to their specific entity are gone. “In today’s compliance world if it is not


written down then it didn’t happen. There is a cost associated with this and companies have to be of a certain size to be able to operate profitably.” n


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draw on each other’s professional strengths, and further demonstrates Willis’ deep commitment


to London and the London


insurance market,” said Dominic Casserley, CEO of Willis Group. Graham Clarke, CEO of Miller, said: “The


proposed transaction will give Miller access to Willis’ global reach and scale, its industry and product capabilities, and outstanding client support operations, while maintaining the Miller brand and ethos. “It will also enable both firms to serve their


clients more effectively through improved access to the breadth of their services, markets, and analytical capabilities. This transaction will accelerate our growth strategy and enhance our current platform.” Neither company’s executives in Baden-


Baden would comment further on the proposed transaction. n


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