London, 08 July, 2019:
Leading independent consultancy and service provider Pro Global Holdings Limited (‘Pro’) today announces the launch of its unique Cyber Audit Practice, developed to support the insurance industry’s response to cyber risk.
The increasing sophistication of cyber criminals, frequency of major cyber attacks and the greater regulatory emphasis on data protection can make it challenging for insurers to understand their underwriting exposure when pricing cyber risks.
Headed by Pro Global Global Head of Infosec Richard Robertson, and launched in partnership with cyber and information security services experts Cyber Security Associates (CSA), Pro’s Cyber Audit Practice will utilise CSA’s Security Intelligence and Operations. This provides 24/7 automated technical monitoring and extended office working hours for access to cyber analysts.
Further Cyber Audit Practice services include:
Pro Global Global Head of Infosec Richard Robertson said, “Cyber risks are frequent, severe and systemic – a trio of significant and evolving challenges for the insurance industry to respond to.
Through the launch of our Cyber Risk Practice, we are directly addressing demand for more comprehensive audit services, and firmly believe that through implementation of a ‘no stone unturned’ approach combining current best practices with mitigating controls, insurers can reduce exposure to both major incidents and minor cyber crime.
I’m delighted to partner with David and the expert CSA team for this initiative. From supporting a greater understanding of underwriting evolving cyber risks, to strategies for protecting policyholders from a cyber breach, we provide deep insight and solutions that go above and beyond the general audit snapshot of a business’ cyber security that are currently used.
Pro’s Cyber Audit Practice is truly unique. As well as partnering with CSA to provide 24/7 monitoring of a business’ systems to identify potential attacks, we have (re)insurance SMEs and cyber security experts who can work collaboratively with insurers to provide the only shared knowledge solution by a UK company.”
CSA Director David Woodfine said, “Through significant experience with the changing nature of cyber threat I’ve seen that those businesses that are proactive in tackling and reducing cyber risk stand the best chance of mitigating the chance of an effective breach, and of the damage should a breach occur.
But cyber security risks are constantly evolving, making it easy for a business to fall behind. Without an awareness of the technology necessary to protect against cyber attack and protect a businesses’ digital footprint, there is increased risk to the business.
On top of this, the implementation of GDPR means it is even more important to ensure data is correctly stored, handled and protected. Effective management of a business’ cyber exposure can reduce reputational harm risk and minimise potential for financial sanctions.
The biggest vulnerability for a business is poor education, training and preparation. I am delighted to be working with the innovative team at Pro Global to offer what I believe is the most comprehensive cyber audit solution available.”
For more information please visit: https://www.pro-global.com/uk/what-we-do/cyber.
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Pro is a leading international consultancy and service provider that focuses on delivering flexible outsourcing solutions for live and run-off business, operational consultancy and audit services exclusively to the global insurance industry.
Founded in 1993, Pro has some 160 clients spanning the global insurance market, including insurers, reinsurers, brokers, lawyers and corporate investors.
The company has over 500 employees around the world, with recent geographic expansion in Germany and North America. Pro has offices in London, York, Cologne, Zurich, and Buenos Aires, all supported by regional delivery centres, enabling Pro to act for clients across multiple markets, cultures and territories.
For more information, please visit: www.pro-global.com
Richard has 20 years experience in information security, including as a security consultant to the national bank of Ukraine, and Cyber Defence Operations for Fidelity International. He is a specialist in implementing and managing leading IT security technologies into security operation centres as well as designing cyber strategies for global corporations and governments. With this combination of technical knowledge and strategic planning Richard is able to meet the highest requirements for information asset protection.
Currently Richard is the Pro Global Head of Information Security, responsible for the multinational InfoSec and business continuity plan. Skilled in incident management and response, threat intelligence, vulnerability management and regulatory compliance, Richard can not only protect against a breach, but provide insight in the points of access.
CSA specialises in the provision of cyber security services and assessments, helping clients understand their potential exposure to cyber threats and providing capabilities to mitigate cyber risk. In addition to providing cyber services and solutions for businesses, CSA is active in undertaking intelligence assessments to better understand emerging threats and vulnerabilities.
CSA provides the cyber security network and intelligence monitoring services for a global FTSE 100 company, covering 20,000 devices in 10 countries. In addition, CSA provides desk-top cyber exercises, email phishing campaigns and advice and guidance on cyber security technologies and capabilities.
David’s experience was built around his operational military service where he developed and managed the expansion of the MOD’s cyber defence unit. Since founding CSA, David now consults into large organisations advising on their cyber health and ability to respond to cyber incidents. Such sectors include the Nuclear Industry, Maritime and Shipping, Defence Suppliers and Financial Companies.
Roddy Langley
Lysander PR Limited
roddy@lysanderpr.com
07740 633 296
Helen Wright
Lysander PR Limited
helen@lysanderpr.com
07842 729 579
Hot of heels of Pro’s recent announcement of its acquisition of VibeMM, Artur Niemczewski, CEO of Pro Global and Danny Maleary CEO of VibeMM discuss how MGAs will define the future of insurance in this co-authored article.
The march of the managing general agents (MGAs) is going strong – so strong, it is now one of the fastest growing sectors within insurance.
With their innovative approaches to underwriting and distribution, geographical reach and technology-first mindset, is it any wonder that MGAs are at the top of almost all strategic agendas as carriers and other risk capital partners look to grow into areas they previously thought were unattainable?
This is something Pro has known to be true for some time and the recent acquisition of MGA incubator platform Vibe MGA Management (“VibeMM”) is testimony to the joint belief the MGA business model will be at the forefront of what insurance will look like in the future.
The deal is complimentary for both parties for several reasons, but we are focussed on accelerating growth for our clients by being in a stronger, better position to offer a broader range of services to this area of the market.
Our scope as a combined entity has now catapulted our MGA offering from primarily front end business structure services (VibeMM) to complete cradle to grave fulfillment (Pro), as well as broadening the scope geographically with the simultaneous launch in the US.
These are exciting times.
Entrepreneurialism is in the DNA of MGA businesses and for us, it is our shared ambition to leverage this directly through our MGA to Order initiative.
As well as being able to service entrepreneurs who want to set up a new business and are searching for capacity, the MGA to Order model allows us to complement this and work with both existing and new carrier clients from global specialty re/insurers, to help build MGAs to fit their specific strategic initiatives.
This is where we can come in. In a world where it is rarely the case where one size can fit all, we believe this to be a valuable service which, in addition to providing clients with a whole new strategic outlook, can also help them look at opportunities on a global basis they might not have previously been able to see, or have access to.
Against a backdrop of soft rates and declining premium, the strategy has to be about looking for profitability in other areas and we believe the MGA business model to be the answer to a lot of our client needs.
Product innovation in this space is also an attractive element of MGA businesses. A lot of the new start-up MGAs that we see are linked to new risks, especially around technology. We believe there are many great opportunities for carriers and brokers to break into new areas, broaden distribution options, geographic presence and/or market segment in a specific class through the MGA structure.
Working with an MGA can also enable a more traditional business test out new technology for either underwriting or distribution purposes before it is rolled out more widely.
A successful MGA is one that is redefining what insurance is really about for the customer – making that customer journey more efficient and relevant.
If managed correctly, the MGA model can be embraced in so many different ways and will define a whole range of success stories. In the long standing tradition of the London insurance market, MGAs look for reasons to underwrite a particular class or line of business rather than not underwrite it, and the newly formed Pro MGA Solutions Ltd combines complementary skills and experience that allow capital to be brought to bear speedily and efficiently.
On 20th September 2017, we explored a topic close to my heart and close to the minds of many reinsurance executives: How could culture and the way we do business evolve over the next twenty years?
This topic was ambitious, involving a high number of moving parts and largely unknown interconnections between them. However, the evening was a marked success on three dimensions:
After two hours of intense discussion, it was clear we certainly didn’t have enough time to cover every topic on our agenda; nonetheless, four key themes did emerge from our discussion:
As we identified these four trends, we discussed how they could be applied to employee behaviors. We looked at some characteristics and leadership styles that would be required when working in this future state.
The final thought was an acceptance of the unknown. Even though a large amount of these predictions may not happen, we still need to be prepared for new and unique developments that may appear unexpectedly. Change is happening faster than ever before, and as industry leaders, we must be prepared to respond at the right time and in the right way.
I’d like to thank everyone for their contribution, and we can certainly all agree that changing corporate culture takes time. I’m glad we are already starting to think about this topic and we’re looking forward to how our industry develops over the years ahead.
If you’d like to understand how Pro could help you on your Change journey, please contact Inken.Schaeppi@pro-global.com
Pro recently attended the AIRROC New Jersey Networking and Commutations Forum to present our thoughts about the deals and best practices for managing UK Employers Liability.
The panel consisted of: Richard Lawson, Global Head of Client Engagement at Pro, Ian Harvey, Head of Claims Strategy at Pro; and Joe Froehlich, Partner at Locke Lord, LLP.
We trialled the new Lloyd’s audit scope across 25 binders, placed through 5 entities, and found it to be far more focused on the risks of transaction business via Binding Authorities.
Lloyd’s Coverholders vary widely around the world. From multinational brokers servicing a wide range of classes, to small firms offering specialist coverage. All must pass a rigorous audit and compliance process to retain their coveted ‘Coverholder at Lloyd’s’ status. But up until recently, this process has tended to be something of a one-size-fits-all approach, until now….
Making London more attractive for Coverholders and taking a more ‘risk based’ approach is at the heart of a new Lloyd’s Audit Scope.
Intended to replace the 2014 V2 Coverholder Audit Scope, this new system has been over a year in the planning, having been piloted in 2017. It’s a big step change and due for roll-out in early 2018.
The earlier Audit Scope was essentially a question set – 288 to be precise – that did not change year-on-year and were not all necessarily relevant for each Coverholder’s business. Many considered this approach to not only be repetitive, but also onerous; whilst Managing Agents did not necessarily gain the information needed to manage their delegated underwriting, as evidenced by an increase in supplementary information being submitted.
The German life insurance market is heavily under pressure in terms of profitability, but this represents a great opportunity to provide finality to portfolios by using run-off as a strategic tool, Robert Buchberger, managing director at Pro Germany, told Baden-Baden Today.
Against the pressure of lower interest rates and the challenges of not having the staff to handle all the open claims, these insurers are brought into a situation where they are sitting on reserves and just can’t release them, Buchberger explained.
“In this area we are able to support insurers in releasing reserves by helping them do portfolio analysis,” he said.
“Our approach is to try to find negotiation solutions with claimants to help bring finality to some of the claims.”
Fitch Ratings forecast in July 2018 that run-off specialists will manage more than half of closed life business in Germany by 2022, compared with about 25 percent currently.
The ratings agency suggested German life insurers are starting to find the costs of managing shrinking portfolios an increasing burden. It has become more capital-intensive due to low investment yields and higher capital requirements under Solvency IL
Along with life and health, Pro Germany is also looking to grow in liability lines such as general liability, bodily injury, and particularly medical malpractice, another area where Buchberger is seeing more run-off in Germany.
“The biggest medical malpractice runoff in Germany had almost €400 million in reserves. We expect to see more run-off, perhaps not of this size, but in more specialist areas such as medical malpractice.”
Buchberger explained that Pro is not focusing just on run-off but is also looking to offer more support to primary insurers’ claims departments under pressure, and that it is also in a position to offer its claims platform to new market entrants.
London, Thursday 25th April, 2019:
Leading independent consultancy and service provider Pro Global Holdings Limited (‘Pro’) is delighted to announce its launch into the distribution services sector in the UK and the US through the acquisition of an MGA incubator platform Vibe MGA Management (‘VibeMM’) in London, UK, and through the formation of Pro MGA Solutions Inc, based in York, PA, USA.
Part of the Vibe Group of companies, VibeMM will be rebranded Pro MGA Solutions Ltd. This new venture will bring together the skills and experience of the two businesses, creating an exciting and unique opportunity for entrepreneurs and insurers to work closer together and establish modern distribution channels for insurance products in new classes and geographies.
VibeMM was launched in 2017 and the team has successfully provided an entrepreneurial environment for ambitious underwriters and launched five innovative classes of business, including Cyber and New Technology, over the last 18 months.
The strategic acquisition of VibeMM and smooth transition into Pro MGA Solutions Ltd is aligned with Pro’s mission of delivering client-led services and solutions to help the international insurance and reinsurance companies improve business performance.
It also supports Pro’s “MGAs to Order” initiative, with a vision to evolve the traditional underwriter-driven MGA creation journey. The goal is to support insurers and capital providers that want to access new markets, as well as new forms of distribution, through a cost-effective MGA structure underwriting specific lines of business or markets.
Pro has formed Pro MGA Solutions Inc in the USA to further expand the international reach of the group, enabling Pro to support underwriters and carriers looking to create an MGA wherever they see an opportunity in this territory.
Artur Niemczewski, CEO of Pro, said:
“I am pleased to announce the acquisition of VibeMM. Its highly experienced team brings a wealth of specialist knowledge that will allow us to provide a valuable additional means of supporting our clients.”
He further added: “The MGA sector has developed rapidly in recent years, and VibeMM’s senior team has extensive experience of operating in this entrepreneurial and dynamic market, supported by a network of expert service providers.
The combination of their expert capabilities with Pro’s services, global reach and client-first philosophy will enhance VibeMM’s expertise in providing complete solutions for the development and operation of MGAs and continue to deliver the success they have enjoyed to date.
The simultaneous launch of Pro MGA Solutions in the USA and “MGA’s to order” further advances our strategy to broaden the ways in which we can support our clients’ ambitions. This significant milestone marks a critical next step in our business journey, an exciting and apt one following our 25th anniversary last year.”
Danny Maleary, CEO of VibeMM, said:
“Pro offers an excellent platform and expertise that will help accelerate the business’s development while enhancing Pro’s overall proposition to their customers. This is a great opportunity and we are very much looking forward to joining the Pro team.”
He further added: “After two very successful years at VibeMM we are all very excited with this move, which is a terrific fit with Pro and expands our proposition. Being a part of Pro, we can now offer a much broader scope of solutions and geographic coverage, including the US and Continental Europe, and we look forward to providing innovative solutions to entrepreneurs, carriers and investors.”
Joe England, CEO of Vibe Syndicate Management, said:
“We are very pleased to have secured this agreement with Pro, which is well placed to support the continued development of Vibe MGA Management. Pro is a trusted partner with which we will maintain a close working relationship.”
Terms of the transaction, which remains subject to regulatory approvals, are not disclosed.
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Pro is a leading international consultancy and service provider that focuses on delivering flexible outsourcing solutions for live and run-off business, operational consultancy and audit services exclusively to the global insurance industry.
Founded in 1993, Pro has some 160 clients spanning the global insurance market, including insurers, reinsurers, brokers, lawyers and corporate investors.
The company has over 500 employees around the world, with recent geographic expansion in Germany and North America. Pro has offices in London, Cologne, Zurich, New York and Buenos Aires, all supported by regional delivery centres, enabling Pro to act for clients across multiple markets, cultures and territories.
For more information, please visit: www.pro-global.com
Vibe Syndicate Management is a Lloyd’s managing agent, the principal business within a multinational non-life insurance and reinsurance group. Vibe manages Syndicate 5678 at Lloyd’s.
Syndicate 5678 was established in 2007 and became one of the leading providers of legacy solutions through Reinsurance to Close (RITC) of open years. Today, the Syndicate underwrites a broad range of insurance and reinsurance business, including Accident &Health, Financial Institutions, Professional Indemnity, Accident & Health Treaty, Casualty Treaty, Property Treaty, Credit, Surety, Political Risk & Terrorism, North American Specialty Programs and Property Direct & Facultative.
Roddy Langley
Lysander PR Limited
roddy@lysanderpr.com
07740 633 296
Helen Wright
Lysander PR Limited
helen@lysanderpr.com
07842 729 579
Pro US Holdings, the sole shareholder and immediate parent of ProTucket Insurance Company, the insurance carrier established in Rhode Island to provide run-off transfer solutions in the US, announced today that itcontributed$35 million of funding to ProTucket Insurance Company. The capital contribution was made possible by funds obtained from leading global reinsurer, Swiss Reinsurance Company Ltd.
A minimum capital requirement is needed for ProTucket to legally accept insurance portfolios from various states. Pro US Holdings provided the $35 million cash injection to meet these requirements, as well as to rapidly expand the licensing and reinsurance accreditation of ProTucket across all 50 states and the District of Columbia.
ProTucket intends to use a protected cell for each Insurance Business Transfer (IBT) in its pipeline. The creation of this new cell and its funding is a major step in allowing the first IBT in the US to take place.
In 2017, ProTucket became the first Rhode Island domestic insurer created to provide run-off portfolio transfer solutions under Rhode Island’s Voluntary Restructuring of Solvent Insurers Law. Rhode Island Regulation 68 allows insurers and reinsurers to cede run-off commercial books with court sanctioned finality in a similar fashion to a Part VII of the UK’s Financial Services and Markets Act.
“This marks another milestone in Pro Global’s leadership in establishing the IBT process as a standard mechanism in the US, similar to Part VII transfers in the UK,” said Artur Niemczewski, the Chief Executive Officer of Pro Global. “This process is gaining momentum in the US as up to $350 billion of run-off remains trapped in the balance sheets of US carriers. Pro is thrilled to be playing an important role in pioneering this process.”
“We are following closely the developments with IBT in the US,” said Eric Smith, President and CEO Swiss Re Americas. “We look forward to working with Pro to develop opportunities for our core clients as the IBT market gains a foothold in the US, providing new opportunities for capital management and increased capacity for expansion of insurance coverages.”
Mory Katz, CEO of ProTucket and Pro Global’s US Managing Director added, “ProTucket was the first company that was granted a license to implement Regulation 68.Our recent $35 million in funding is a testament to our commitment in pursuing IBT transactions and the benefits it brings to clients and the US insurance market.”
26 June, 2018. NEW YORK, USA:
Pro Global welcomes new amendments to Rhode Island’s Voluntary Restructuring of Solvent Insurers Law and the Rhode Island Protected Cell Companies Act that will now make run-off transactions easier to execute and will open the door to a $100 billion market in US transactions via books of legacy business.
On May 8, Pro testified in front of a House Committee to demonstrate the continued interest from business, industry bodies and insurance stakeholders for the Rhode Island statute. Pro highlighted how the legislation will provide opportunities to the industry, improve the efficiency of business and drive job creation in Rhode Island and across the state. Subsequently, House Bill 8163 was passed unanimously, 70-0, and is currently on its way to the Governor for signature – which when signed, will come into immediate effect.
Pro Global did not act alone, but was part of a strong team that supported the changes. The Rhode Island Department of Business Regulation (Insurance Division), the Property Casualty Insurers Association (PCI), the Providence Rhode Island office of international law firm Locke Lord, the Governor’s Chief of Staff Brett Smiley and Governor Raimondo all supported the effort.
“I’d like to thank Superintendent of Insurance, Elizabeth Dwyer, and everyone who worked so diligently to get these amendments passed,” said Mory Katz, Managing Director of US, at Pro Global. This bill has the potential to ignite economic development and bring hundreds of millions in capital to Rhode Island.”
Mr. Katz added: “The changes that have been passed will now strengthen the existing regulation by reducing potential ambiguities in how the law is applied.”
Rhode Island’s Voluntary Restructuring of Solvent Insurers Law will allow insurers and reinsurers to cede run-off commercial books with court-sanctioned finality in a similar fashion to a Part VII of the UK’s Financial Services and Markets Act in the UK.
Last year, Pro Global announced that ProTucket Insurance Company had become the first Rhode Island domestic insurer expressly created to provide run-off portfolio transfer solutions under Rhode Island’s Voluntary Restructuring of Solvent Insurers Law.
Mr. Katz said, “The changes to the legislation allow not only Rhode Island to be a leader in the market, but also positions Pro Global, via its ProTucket entity, to take a lead position in this potentially lucrative market.”
“The amendments to the Voluntary Restructuring of Solvent Insurers Law and Protected Cell Companies Act show there is a real willingness in government, not just business, to make the law work. There is a consensus that it’s good for the industry and good for the State.”
“This establishes Rhode Island as a center of excellence for the US run-off sector. Rhode Island is being talked about at conferences all over the country and dozens of large insurers have waited for these changes to be enacted. There will be job creation for all sorts of insurance professionals – actuaries, accountants and lawyers.”
“ProTucket expects to file the first Insurance Business Transfer plan within the next 12 months” Mr. Katz added.
Dear Friends,
This month we celebrate Pro’s 25th Anniversary and I would like to thank you all for your continuing support. This key milestone is an opportunity for me to look back at some of the remarkable achievements Pro has delivered to our clients, but it’s also a time to look ahead and reveal how Pro will continue to support our clients’ businesses in future.
The year was 1993, we didn’t have computers at our desks, mobile phones were the size of a brick and telex machines were the latest in technology!
There was turmoil in the world of insurance. Claims from long-term exposure to asbestos were starting to hurt and the impact of Hurricane Andrew was still being felt by many of the large carriers.
One of the major companies to fall was English and American Underwriting Agency Group (E&A). It went into run-off in 1993 and immediately a new company was formed to manage the legacy claims, this company was Pro.
Pro continued to run-off the E&A pools, but there was a sense that we could provide a similar service to other companies. In 1997 we started to manage the run-off for Willis Faber Underwriting Management (WFUM). To give a sense of scale, WFUM had $2 billion in inwards liabilities and $1 billion of reinsurance assets. The project was so complicated and we were so successful that it established Pro as the leader in run-off management. Indeed, we laid new ground in unwinding complex multi-party financial arrangements and in interactive relationships with policyholders.
The next stage in our development was to offer value-adding services to the live market, including outsourcing and consulting services. Our first live-market client was Faraday in 2005 and in fact they are still a client today.
A recent project the Pro team is most proud of is one of the largest EL and PL legacy outsourcing deals to date. In 2016, we were asked to process millions of complex legacy Employer’s and Public Liability policies on behalf of Aviva and its reinsurer Swiss Re. It was a challenge on a grand scale, migrating ten million policies and claims from an array of old systems, while opening a brand-new office filled with claims handlers and administration staff. The project went live in under 18 months and continues to deliver outstanding results for both of our clients.
By 2018 we have grown to over 500 employees around the world, but still try to maintain a very personal touch, living by the “Client First” principle. Much of this growth has come from a new venture in Germany and expansion in North America.
Our Cologne team was recently involved in a highly complex German medical malpractice portfolio, and, as far as we know, it’s the largest Continental European run-off project to date. In under three months we built a team of claims handlers with a deep understanding of medical malpractice and brought together several technicians to digitise and migrate over 4000 paper files into our new modern claims platform. Today, the team have consolidated and streamlined what was a highly complex paper-based process, while simultaneously improving portfolio performance and reducing costs.
Over in the United States, our client list has increased tenfold since we opened eight years ago. I’m pleased to see how Pro US has grown from a standing start of a single run-off client, to now include underwriting, outsourcing, consulting, and audit support services. A key client in the US recently underwent a large-scale merger, which resulted in duplicate financial processes, Pro combined its consulting and outsourcing expertise to successfully re-engineer the process and support it with Pro accountants. The result was dramatically reduced backlogs and improved turnaround times.
Our latest project will launch the next generation of Exposure Management technology to the market. Developed by leading experts in both catastrophe modelling and artificial intelligence, the service will plug into existing platforms, automating and removing current manual processes. This cutting-edge tool will rapidly deliver structured data for risk pricing, exposure management and loss modelling, directly to the underwriter’s desktop. It’s an example of Pro combining technical expertise and insurance know-how to help clients grow and become more profitable.
Last year, we were pleased to announce ProTucket Insurance Company had become the first Rhode Island domestic insurer to provide run-off portfolio transfer solutions. This ground-breaking move was made possible under new state legislation, Rhode Island’s Regulation 68, which enables portfolios to be transferred, in a similar fashion to a Part VII in the UK. Pro continues to work very hard to establish the process, but being first can often present complex challenges, and introducing a new concept, albeit proven in Europe, into a complex regulatory landscape takes time. We expect to be able to announce some exciting news shortly.
As we mark our 25th year in London and across the world, I would like to again thank you all for your support. Across our UK, US, German, Swiss and Latin American offices everyone is working hard towards our “Client First” strategy. The heart of our success has been the dedication to our clients, many who have been with us for decades and have contributed to our growth through referrals, the best form of endorsement we could ever ask for.
Here’s to another successful 25 years of working together.
Artur Niemczewski
CEO, Pro
