Romero Claims Service Nominated for 2 National Awards

Romero Insurance Brokers have been shortlisted in the Commercial Broker of the Year and Broker of the Year catergories.  Our ongoing investment into our claims service and the team behind it has once again been acknowledged by the Insurance Industry.
Managing Director Simon Mabb commented “Innovative ideas to provide the best assistance our clients when they need it most sets us apart from the competition.  Whilst many other brokers are selling out to the large internationals and consolidators who concentrate on the bottom line, we are focusing all our efforts on providing a market leading service.
Our claims team work tirelessly on behalf of our clients and we are thrilled to be recognised as a true market leader.”
The result will be announced in special ceremony on London in July.

20 Years of Treating Customers Exceptionally!

Think back 20 years to 1997…  Hong Kong transferred to Chinese rule, Celine Dion topped the album chart, Pete Sampras won Wimbledon and Romero Insurance Brokers was born.
Justin Romero-Trigo had a vision to create one of the leading insurance brokers in the UK providing Insurance and Risk Management Solutions across a wide number of industry sectors.  20 years later what has been achieved?
From 2 staff in a small office in Horsforth to one of UK’s largest truly Independent Insurance Brokers now.  Employing over 150 staff working from 4 offices and handling close to £100 million in premiums annually.
Not many businesses can say they still have their first customers with them 20 years later but we have worked hard to understand our client’s needs and pride ourselves on delivering a market leading service that exceeds our client’s expectations whilst delivering the most competitive premiums.
This philosophy has served us well and we will continue to Treat our Customers Exceptionally working closely with our clients and insurer partners to ensure our next 20 years are just as successful.
The last 20 years Romero Clients have faced many different risks such as Cyber Attacks & Corporate Manslaughter.
What will we be insuring in the next 20 years?  Driverless cars, Jet Pack Flight and Fly Boards…

Romero in the final for Chartered Insurance Broker of the year!

Romero Insurance Brokers has been shortlisted for a prestigious industry award.
Selected by a judging panel that consists of eleven industry experts, Romero Insurance Brokers has made the final of the UK Broker Awards for Chartered Insurance Broker of the year.
Managing Director Simon Mabb commented “We are delighted to be in the running for Chartered Broker of the year, as one of the first Brokers to achieve Chartered Status in our area, we pride ourselves on our professionalism.  Our continued growth and success is the result of hard work and doing our very best for our client’s so we are thrilled to have our efforts acknowledged.”
The winners will be announced at the UK Broker Awards Ceremony on Friday 16th September at The Brewery, London.

Romero Risk Management enhance their offering to clients!

Following the introduction of the new Sentencing Guidelines in February this year Romero Group have launched a comprehensive Risk Management Service Line to meet the needs of our clients for compliance, civil defence and brand protection.
From Cyber Risks to Claims Defensibility Studies, Romero Risk Management can deliver a full range of services to assist our clients assess and manage risk effectively.  All services are delivered by our team of qualified professionals complemented by our bespoke e-learning website www.romeroelearning.co.uk which offers flexible, cost effective training solutions.
Risk Director Jane Dronsfield commented “It has never been more expensive to offend than it is today, it is essential that all companies manage risk down to the lowest possible level.  Romero Risk Management now offer a complete range of services from full consultancy to e-learning that can tailored to our clients requirements.”
For further information please visit www.romeroriskmanagement.co.uk, email risk@romeroinsurance.co.uk or call 0113 281 8110.

Romero Director’s Service acknowledged with a Certificate of Appreciation at the Royal Aero Club Awards!

Martin Mansley has been presented with a Certificate of Appreciation by HRH Prince Andrew, Duke of York.
Martin has worked in capacity as insurance broker to the British Parachute Association (BPA) for six years and they were so impressed with Martin they followed him to Romero Sports and Leisure 3 years ago.  Due to Martin’s  expertise of Sports and Leisure Insurance Sector he has saved the BPA over £2,000,000 in premiums over the last 6 years using only quality ‘first class’ insurers.
Martin and Romero Sports & Leisure have introduced and supported a wide range of initiative’s to manage risk which has improved the safety record of the BPA substantially.
Romero Chairman Justin Romero commented “Martin is one of the leading lights in the Sports and Leisure Insurance Sector, his professionalism, innovation and sheer will to provide the best for his clients has got him where is today.  We are all proud of Martin’s achievements and I am certain he will receive many more accolades!”

IMPORTANT LEGISLATION CHANGES THAT WILL AFFECT YOUR INSURANCE ARRANGEMENTS

INSURANCE ACT 2015
In February last year the Insurance Act 2015 received Royal Assent and will become effective from August 12, 2016. The Act will change the UK’s commercial insurance law. The current regime, underpinned by the Marine Insurance Act 1906, will continue to apply to policies incepted or renewed for a period of 18 months but thereafter the 2015 Act will apply, by default, to commercial (‘non-consumer’) insurance policies.
The simple guide below has been developed by Romero Insurance Brokers to provide a concise update of what these changes will mean to you.
The Act Deals with
  • Duty of Fair presentation
  • Knowledge of the Insured & Insurer
  • Remedies for breach of duty of fair presentation
  • Warranties
  • Remedies for Fraudulent Claims
Duty of fair presentation
  • What is a ‘fair presentation’?
    Disclosure made in a manner that would be reasonably clear and accessible to a prudent insurer. Representations of facts must be ‘substantially correct’ and representations of expectations or belief must be made in good faith. The requirement that disclosure be reasonably accessible to insurers is intended to prevent the practice of ‘data dumping’ i.e. swamping insurers with data without highlighting the key aspects.
 Knowledge of Insured and Insurer
  • What disclosure needs to be made to insurers?
    An insured will need to disclose either (a) every material circumstance the insured knows or ought to know or (b) sufficient information to put a prudent insurer on notice that the insurer needs to make further enquiries for the purpose of revealing those material circumstances.
  • What are ‘material circumstances’?
    Any circumstances (including information held by or communications made to insureds) that would influence the judgment of a prudent insurer in determining whether to take the risk and, if so, on what terms. These include special or unusual facts about the risk, any particular concerns which led the insured to seek cover and ‘… anything which those concerned with the class of insurance and field of activity in question would generally understand as being something that should be dealt with in a fair presentation of the risks of the type in question’. The Law Commission’s vision in drafting the Act was that insurers, brokers and policyholder bodies should ‘work together to develop guidance and protocols setting out what a standard presentation of the risk should include in particular circumstances’. This is a challenge for the risk community to address over the next 8 months.
  • If only material circumstances that are known or ought to be known by the insured have to be disclosed, whose knowledge at the insured is relevant?
    To be disclosable, material circumstances either have to be known or ought to be known by:
    a) the insured’s senior management, i.e. individuals who play significant roles in the making of decisions about how the insured’s activities are to be managed or organised; or
    b) individuals who participate on behalf of the insured in the process of procuring the insurance (including brokers and other agents).
Remedies for breach of duty of fair presentation
  • Can clients/policyholders adopt a ‘don’t ask don’t tell’ approach to internal investigations of material circumstances ahead of placement?
    No. Material circumstances which are ‘suspected’, or which would have been known if the relevant individual had not deliberately refrained from confirming them or enquiring about them, will have to be disclosed.
  • How extensive a search must insureds make for material circumstances?
    Insureds have to make a ‘reasonable search’ of the information available to them, including information held by their agents or others who will be covered by the insurance. Any material circumstances that a ‘reasonable search’ would have revealed are disclosable.
  • What if the duty of fair presentation is breached?
    a) If the breach was either deliberate or reckless, the insurer can avoid the contract (i.e. treat the contract as if it never existed), keep the premium and refuse to pay all claims.
    b) If the breach was not deliberate or reckless, the remedy depends on what the underwriter would have done if a fair presentation had been made. If the insurer:
    i. would not have entered the contract at all…
    …it can return the premium, avoid the contract and refuse all claims.
    ii. would have entered the contract on different terms…
    …the contract is treated as if those different terms applied.
    iii. would have charged higher premium…
    … the insurer can proportionately reduce the amount it pays on a claim.
Warranties
  • Will warranties still exist?
    Yes, but it will be harder to create them, they will be more limited in scope and the effect of a breach of warranty will be softened.
  • Why will it be harder to create a warranty?
    Clauses in proposal forms that turn an insured’s representations into warranties (so-called ‘basis of contract’ clauses) will no longer have any effect. Proposal forms and wordings will need to be revised to take this into account.
  • Why will they be more limited in scope?
    Breaches of warranty that are irrelevant to the loss that occurs will no longer discharge insurers from liability – one of the key issues insureds have with the existing law. If the insured can show that failure to comply with any term in the contract (including warranties) could not have increased the risk of the loss which actually occurred in the circumstances in which it occurred, insurers will no longer be able to rely on the breach to exclude, limit or discharge its liability.
  • What are the changes to the remedy for breach of warranty?
    A breach of warranty will discharge the insurer from liability for losses occurring, or attributable to something happening, after the breach occurs. It will not discharge the insurer from liability for anything that happens before the breach – or after the breach has been remedied.
  • So an insured can now remedy a breach of warranty?
    Yes. If the breach of warranty is remedied before the loss occurs, the insurer cannot rely on it.
  • What counts as ‘remedying’ the breach?
    If the warranty requires something to be done by a certain time, or a condition to be fulfilled, or something to be the case (e.g. installing a certain sprinkler system in case of fire) then a breach of that warranty is ‘remedied’ if the risk to which the warranty relates becomes essentially the same as the risk originally contemplated by the parties (e.g. installing a comparable sprinkler system). For other warranties, a breach is deemed to be remedied simply if the insured ceases to be in breach of the warranty.
Remedies for fraudulent claims
  • What will change?
    Insurers will be entitled (on notice) to treat the contract as having been terminated from the date of the fraudulent act and need not return any premiums paid under the contract. Of course, insurers will still not be liable for any fraudulent claim and will be able to recover any payments made to the insured in respect of fraudulent claims.
  • What about valid claims made before the fraud?
    These will be unaffected – which clarifies some potential confusion arising from the case law.
Contracting Out
For non-consumer insurance, the provisions of the Act are intended to provide default rules. However, parties are free to agree contract terms which are less favourable than those in the Act, provided that the insurer satisfies two transparency requirements. This ability to contract out is not true of consumer insurance contracts. An insurer will not be able to use a contractual term to put a consumer in a worse position that they would be in under the terms of the Act.
  • What are the transparency requirements for contracting out?
Where insurers do intend to opt out (and hence include a “disadvantages term” they must take sufficient steps:
  1. To draw it to the insured’s attention before the contract is entered into, and
  2. The disadvantages term must be “clear and unambiguous as to its effect”.
What is sufficient to meet the above two requirements will depend on the characteristics of the insured and the circumstances of the transaction (where and how is the contract made).
  • What cannot be contracted out?
The contracting-out provisions will not apply to settlement agreements or the prohibition in respect of basis of the contract clauses.
In many respects the new Act codifies existing case law rather than effecting wholesale revisions to the status quo, although some changes – such as the new law on warranties – will be significant. The Act will, however, take time to bed in and there are bound to be test cases in years to come about what some of the new provisions mean.
For further information please speak to your usual Romero contact or for new customers, please contact Richard Nicholson or Robin Kinkead on 0113 281 8110.

Romero enhance their offering for Global Clients

Romero Insurance Brokers are now a member of Trust Risk Control Group – a Global Network of Insurance Brokers.
Managing Director Simon Mabb commented “Being a member of Trust Risk Control Group gives Romero Insurance Brokers access to all their 115 members active in over 85 countries Worldwide with relationships in a further 80 countries.  The Network has over 10,000 employees across the Globe giving Romero’s the resources and expertise to ensure our clients receive the right protection and the best service possible wherever they are operating around the world.”
For further information please see the Division section of our website or visit www.trustriskcontrol.com

Insurance Premium Tax to rise from November 1st

Announced in the July budget, The Government are increasing the standard rate from 6% to 9.5%
Chancellor George Osbourne announced that the standard rate of Insurance Premium Tax will increase from 6% to 9.5%.  This is the first increase since 4th January 2011 and takes effect on 1st November 2015.
Insurance Premium Tax is levied on all types of insurance risks located in the UK unless they are specifically exempt, such as life insurance and other long term insurance, commercial ships and aircraft and commercial goods in international transit.

Romero Market Leading Service Acknowledged!

Romero Insurance Brokers has been shortlisted for two prestigious industry awards.
Selected by a judging panel that consists of eleven industry experts, Romero Insurance Brokers has made the final of the UK Broker Awards for both Chartered Insurance Broker of the year and Commercial Insurance Broker of the year.
Managing Director Simon Mabb commented “We are delighted to be in the running for these two awards, as a Chartered Insurance Broker, we pride ourselves on our professionalism.  Our continued growth and success is the result of hard work and doing our very best for our client’s and it is wonderful to have our efforts acknowledged.”
The winners will be announced at the UK Broker Awards Ceremony on Friday 25th September at The Brewery, London.

Romero Sports and Leisure launch new Safety Innovation Award.

Romero Sports and Leisure and The British Parachute Association have launched a safety innovation award to improve safety in the sport of Parachuting.
Entries are invited for safety initiatives that may be physical or psychological, managerial or mechanical, ergonomic or educational – any kind of initiative that improves safety in sport of parachuting. The challenge is to impress the judging panel, which will comprise experts in sport parachuting safety, occupational safety and risk management.
Entry to this annual competition is open to BPA members as individuals or groups, BPA Affiliated Parachute Training Organisations and BPA Registered Display Teams.  The winner will be the proud custodian of the BPA Romero Safety Innovation Trophy for a year, and will also receive a cash prize of £5,000 kindly donated by Romero Sports & Leisure, insurance broker to the BPA as part of their risk management activities in the sport of Parachuting.
For further information, please visit www.bpa.org.uk