Tag Archives: policy

News

ERS invests in talent and technology in Swansea counter fraud team

ERS, the UK’s largest specialist motor insurer with a 75-year history, has announced plans to significantly strengthen its counter fraud team in its Swansea office by investing in both people and technology.

The move is designed to help the company get ahead in the changing nature of claims and has two objectives: to identify and prevent more instances of fraud – leading to lower premiums for customers – and to create new fraud prevention career opportunities in Swansea.

In January this year, Tom Cummings joined the group as Head of Counter Fraud, taking charge of ERS’ strategy for tackling policy and claims fraud. Since his arrival, the counter fraud team has grown by 25%, with further expansion planned. ERS has also made significant investments in technology, including exploring how artificial intelligence (AI) might be used to detect fraud and to streamline operations.

Investments are crucial, as rising levels of fraud is one of the biggest drivers of high motor insurance premiums. ERS’s zero-tolerance approach to insurance fraud and its methods of tackling fraud, help reduce costs for customers. Fraud is also becoming more complex, with the industry facing more cases involving “shallow fakes” (edited images to exaggerate damage) and “deep fakes” (AI generated images) designed to inflate repair costs.

Tom Cummings, Head of Counter Fraud, said:

“Fraud is changing rapidly because of technology. We need better strategies, better knowledge, and better tools to stay ahead. Using AI will play a part of that. Reducing fraud claims not only helps our business but also leads to fairer premiums for customers.”

The investment also supports job growth in Swansea bringing a career in counter fraud to the region.

ERS’s Swansea office, based in Crucible Park, employs nearly 500 professionals across various roles, including claims, underwriting, IT, governance, and compliance. Since expanding its Swansea presence in 2014, the company has become a major player in the financial sector in South Wales, offering high-skilled roles and career development opportunities.

Jodie Aucamp, Talent Resourcer at ERS, said:

“We’ve put a lot of effort into growing our Swansea office over the past few years because we’re committed to bringing in and nurturing local talent. We want to give people of all ages a chance to build exciting careers with us. Our latest investment in our counter fraud department is just another step in that direction.”

ERS is part of IQUW Group, one of the largest Managing Agencies at Lloyd’s of London, operating from Swansea, London, and Bermuda. The Group handles a diverse range of business from motor to property, energy and marine to reinsurance. Through this global network, ERS is committed to fostering talent and driving innovation in the industry.

If you’re interested in joining the team, you can check out the available roles and apply through the Careers page on the ERS website.

Finance and Banking, Investment, Investment News, News

Just 27% of UK investors have faith in Tory economic policy

A new survey of 721 UK-based retail investors has revealed their sentiments towards the Government, and how they are managing their portfolios in the current climate:

– Only 30% believe Jeremy Hunt is the right person to be Chancellor
– Even fewer (27%) have confidence in the Government’s economic policies
– 48% of investors are looking to easily tradable investments to counter economic turbulence

Only a quarter of UK retail investors have faith in Tory economic policy, with the majority concerned about slowing economic growth, new research commissioned by HYCM has found.

The online forex and CFD broker commissioned an independent survey of 721 UK-based investors, all of whom have investments in excess of £10,000, excluding the value of their savings, pensions and residential property.

It found that less than a third (30%) believe Jeremy Hunt is the right person to be chancellor.

Just 27% have confidence in the Conservative party’s economic policies, with only 22% believing the measures announced in the recent Autumn Statement will have a positive impact on their investments.

However, almost half (48%) think the Government is right to raise taxes and cut spending to tackle the budget deficit. Further, 58% said rising interest rates and inflation are their biggest concerns.

When asked about their investment activities over the past six months and their priorities when managing their portfolio, 48% said having investments they can quickly and easily trade or withdraw was important. Similar numbers (45%) are avoiding making long-term investment decisions due to continued political and economic uncertainty.

HYCM’s survey revealed that just 26% of UK retail investors are satisfied with their investment returns over the last six months. Despite market volatility, only a fifth (21%) have shifted their investment strategy to more traditionally stable assets, such as gold and bonds.

Looking ahead, 37% are more likely to diversify their investments in 2023 to ensure they can perform well in a range of potential scenarios.

Giles Coghlan, Chief Market Analyst, HYCM, said: “After a turbulent six months in UK politics, the financial markets have seen unprecedented levels of volatility. Three prime ministers, four chancellors, a disastrous mini-budget, and inflation still surging despite successive interest rate hikes – HYCM research shows UK investors are suffering a crisis of confidence in the Government.

“Interestingly, around four in five investors (79%) are not planning on decreasing their holdings in stocks and shares investments, despite the threat that raging inflation poses to their portfolios. If the UK has a deeper recession than is currently forecast, the wealth effect and the risk of a sharp capitulation in stock positions could inflict a significant amount of damage. With this in mind, at what point will those investors move away from stocks? Ironically, it could create the perfect conditions to buy when the panic selling begins.

“Although things have somewhat calmed since Hunt delivered his Autumn Statement, many investors would still benefit from exploring their options – whether this means looking to safe haven assets or diversifying their investments to boost their returns as the UK weathers a recession.”

—

About HYCM

HYCM is an online provider of forex and Contracts for Difference (CFDs) trading services for both retail and institutional traders. HYCM is regulated by the internationally recognized financial regulator FCA. HYCM is backed by the HYCM Capital Markets Group providing trading services since 1998. The Group via its relevant subsidiaries have representations in Hong Kong, United Kingdom, Dubai, and Cyprus.

High-Risk Investment Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. For more information, please refer to HYCM’s Risk Disclosure.

News, Research

Government COVID Response did not effectively support UK migrants, new study suggests

The Government’s response to curbing the spread of Covid-19 did not do enough to support the challenges or needs of migrants living in the UK, new research suggests.

The study, conducted by Professor Benedetta Cappellini at Durham University Business School, alongside colleagues Dorothy Ai-wan Yen on of Brunel Business School, Hsiao-Pei Yang of Coventry University and Suraksha Gupta of Newcastle University London, sought to better understand why migrants living in the UK experienced additional mental strains and anxieties during Covid-19 and the subsequent lockdown measures imposed by the Government, in order to help facilitate justice for overlooked parts of society.

Professor Cappellini said;

“The Government employed a variety of interventions to minimise the transmission and impact of Covid-19. These included communication campaigns through media, healthcare support, social distancing, national and regional lockdowns, and financial support schemes for businesses. Nevertheless, Covid-19 does not affect all groups of people equally. Our study shows that migrants struggle to cope more than non-migrants during global pandemics because of cultural barriers, reduced access to healthcare and welfare support, and limited social and often economic capital.”

Globally, the researchers say, policymakers have overlooked the challenges faced by international migrants in their host countries during the pandemic. However, the UK in particular received controversial global reviews and scrutiny due to the Government’s initial pandemic response and high death toll.

The researchers conducted 60 interviews with Chinese, Italian and Iranian migrants living in the UK. These nationalities were specifically chosen due to the high number of deaths within their countries at the time the study took place, and because of the stricter prevention measures enforced within their own borders, at a time before such restrictions came into place in the UK.

The interviewees were asked general questions about their personal backgrounds, professions and their motivations to move to the UK, as well as more exploratory questions designed to gauge their understanding of the lockdown and government measures both in their home countries and in the UK. Researchers also asked interviewees about their daily experiences of mandatory confinement and their different coping practices.

The results showed that, similarly to UK nationals, migrants adapted their living and working habits during the lockdown to best comply with government guidance and to stay safe. However, the research shows that, in the early stages of the pandemic, many migrants experienced unexpected and significant new worries if they adopted additional health and safety practices in line with the guidance distributed by their home countries that had not yet been advised or adopted by UK Government.

For example, interviewees expressed mask wearing to be a common source of worry in the early months of the pandemic. Migrants whose home countries were advocating mask use were eager to protect themselves from infection but remained wary of a negative or hostile public response.

Professor Cappellini says,

“At the time of the fieldwork, the UK Government was still advising against the benefits of wearing face masks to the general public, but participants offered counterarguments in favour of mask use, citing sources from their home countries, including newspaper articles and information received through networks of friends and family. Some were also actively involved in convincing sceptical British colleagues and friends via social media of the benefits of mask wearing. Nevertheless, many participants said they were at times reluctant to wear a mask so as not to seem different from UK friends and colleagues.”

According to the researchers, the unexpected and negative reactions migrant interviewees had received from those around them triggered additional emotional stress and anxieties. As a result, migrants were faced with adopting “multi-layered integrated coping strategies”, developing individual, household-based and community-based protective strategies, in order to stay safe and not provoke additional anxieties.

Families which encompassed mixed nationalities were placed under further strain when migrants’ families overseas implored their UK-based relatives to adopt more cautious behaviour such as mask wearing and social distancing, particularly when British members of the family chose not to do so.

Other concerns highlighted by the study was the limited effectiveness of Government messaging to penetrate some migrant communities where English was not a first language and, consequently, communities did not engage with British media or news and were unable to both fully follow lockdown rules or use support services.

Professor Cappellini says,

“Our paper illustrates how coping became paradoxical, because alongside the need to cope with the pandemic, migrants also had to cope with the hostile reactions that their initial coping strategies provoked from those around them. Migrants had to learn to cope with coping.”

By highlighting this concept, the researchers believe their study leads to several managerial implications for governments and policymakers to consider in the event of future pandemics or Covid-19 lockdowns, to best ensure public health, safety and wellbeing are protected. Action should be taken, they say, to support migrant families and communities and to promote societal understanding and inclusion.

Environment, News

2021: The Super Year for Sustainability and Climate Policy

Written by Gordon Mackay and Ivan Suarez

In the midst of lockdowns and economic collapse, 2020 was the year in which some of the world’s largest countries, businesses and investors set their sights on cutting carbon emissions, aiming towards net zero. In a broad group of countries including China, South Korea, Japan, the EU, Canada and South Africa, almost all types of company, tech giants and industrial heavyweights included, are instructed by policy to become greener and less polluting by 2050.

The Year Ahead

In terms of Paris Agreement commitments, 168 states must provide updated and strengthened National Climate Plans (NDCs) ahead of the United Nations’ 26th Climate Summit (COP) in November 2021. There is mounting international pressure for countries to move from the commitment stage to deliverables and practical solutions to reach ambitious, sometimes unrealistic, targets. Whether the focus is on halving emissions with the aim to limit the steady yearly increase in global temperature to below 1.5 degrees or slashing all atmospheric CO2 emissions by 2050, national governments are responsible for doing a lot more than incrementing targets and making public pledges.
Global climate policy and internationally agreed climate commitments will therefore take centre stage in 2021 as the UN convenes the world’s states in three treaty-binding conferences that will seek to legally compel countries to reduce their carbon emissions and promote biodiversity and ocean conservation.

The Gap Between Climate Ambition and Climate Action

While the pursuit of ambitious revised climate targets will occupy the lion’s share of international climate policymaking activity in 2021, expect national governments and policymakers, particularly in advanced economies, to start waking up to the urgent reality that climate ambition will need to be backed up by tangible climate policy action and that ground policy design and committee-based work will need to begin in earnest.

In classic policy design, the circular process from policy analysis to implementation and then feedback is widely known to be slow-moving and subject to many unexpected external influences. Unfortunately, in the emerging context of aggressively revised national carbon plans and the implementation of NDCs, governments and policymakers will not enjoy the luxury of trial and error. Ensuring that climate policies can be developed rapidly without sacrificing democratic oversight or policy vigour will require, at the very least, closer alignment between social partners (government, business and labour), if not specially adapted policy processes.

Governments can also accelerate their national policymaking efforts by activating multi-stakeholder consultations, utilising multilateral organisations of all types and sectors to identify adoptable best practices across a broad range of policy issues such as energy efficiency, procurement models, urban design and public services.

That said, state-centred climate governance in most national jurisdictions will remain weak, with no single country on track to meet 2030 emissions obligations and the necessary policy frameworks to deliver on 2050 net zero targets remaining little, if at all, addressed.

To drive home this overall lack of policy preparedness by governments, consider Sony’s response to Japan’s net zero announcement in September last year, when the company indicated it was considering shifting its manufacturing from Japan to overseas due to the country’s strict new rules on renewable energy and carbon emissions, warning that government policy pronouncements were not aligned with market realities and highlighting the scarcity and premium costs of renewable energy in Japan.

In light of this, expect a greater share of the climate leadership burden to fall to business in general and to tech companies in particular. Governments’ and policymakers’ expectations of large business and big tech to not only reduce their own industry-specific emissions but also to provide leadership and practical technological solutions to decarbonise the entire economy will only continue to grow.

Net Zero Is a Bet on the Tech Sector

In committing to net zero, governments are betting big on the tech sector to deliver rapid and sustained technological innovation capable of driving decarbonisation across the economy. The biggest obstacle to stronger business leadership and climate action, according to our client engagements, is the overall lack of policy direction and certainty from governments.

For businesses to take action means investing money in changing their entire business models, finding new technology to boost efficiency and adaptability or simply making sure they are informed and compliant – a series of long-term decisions that are entirely dependent on existing and future legislative and regulatory conditions.

If governments are to reap the rewards of their gamble, urgent clarity is required on how governments intend to use the legislative and regulatory instruments available to them to shape the market signals necessary for businesses to take transformative business decisions. Now is the time for enterprising business and tech companies to aid this process by engaging governments with firm proposals on the optimum mix of taxation, subsidies, loans, investments and grants that will support research and development, mobilise investment, support capital allocations, facilitate market access and drive consumer demand for green products and services.

In summary, 2021 will be a “super year” for climate policy, and while international policymakers will remain fixated on ambitious climate target- setting, national policymakers in advanced economies will begin the work of translating ambition into hard policy action. Climate governance will remain weak, and the challenge of acting within the tight deadlines required to stave off climate change will create opportunities for enterprising businesses and tech companies to engage with governments in developing the legislative and regulatory environments that will support the rapid and sustained technological innovation capable of driving decarbonisation and achieving net zero by 2050.

Recommendations

  • Both governments and tech companies must keep themselves updated on developments surrounding internationally agreed climate commitments, so they are prepared for the impact this may have on business.
  • Governments and tech companies will need to cooperate in order to manage the balancing act of meeting ambitious climate targets while maintaining flexibility and the smooth running of business operations.
  • Tech companies should focus on how they can leverage innovation and their resources to support the pursuit of environmental goals, while governments must work to facilitate market access for green products and services