John – We started, we started, sorry I started this blog with a little group of friends about a year ago and to start off the New Year 2010 we thought we’d do a little video blog as a one off, see how it goes and if its popular I think we’ll run it again, but this is the first sort of video blog we have done and we hope you like it.

What were your highlights of 2009?

Janice – One was being asked to dress as a mermaid, one of John’s wonderful ideas, which was Janice should dress as a mermaid for the key partner conference.

John interrupts – sorry Janice we are doing highlights

*Janice laughs and slaps John’s hand*

*Clip of Janice as a mermaid*

Janice – so yeah, one of them was being asked to be a mermaid.

John interrupts – that was – it was very funny

Janice – the highlight…Key Partner Conference and 110 Conference were great highlights for me, I just think they, in the toughest of years with our brokers they highlighted the strengths of the relationships are still there and that those relationships are still working for us and that we have come through some really tough times together and those relationships are stronger than ever.

John – Highlight has to be the re-brand obviously we re-branded and if anybody, if anybody watching this blog doesn’t know…we’re Aviva and we changed our name from Norwich Union, well shame on you really! Shame on the audience, if you’re watching audience, shame on you!  And actually I think, you can sense that the whole of the UK population knows we’re Aviva and Norwich Union is packed into the history of insurance companies.

What was the funniest moment of 2009?

Janice – Mine was the ‘Gingergate episode’ at the 110 conference that was my funniest moment of all the things and all the videos.

John – I do remember that actually…gingergate!

Janice – and that actually…(laughs) Gingergate!

*Clip of Gingergate episode from 110 Conference*

What are your biggest hopes for 2010?

John – My biggest hope for 2010 is that Aviva recovers from my departure

*Janice laughs*

John – and can carry on being the thrusting successful organisation that it has become in the last year since it was re-branded. That’s definitely my hope for 2010.

Janice – My biggest hope for 2010 is that the optimism I feel now, the first week in January, sort of comes to fruition, not just for Aviva but actually for generally in the world outside and the economy and that we start to see some real traction and improvement, because that effects lots of peoples lives and I love this time of year its actually a time of optimism, part of the year where you can be optimistic around the rest of the year so that’s what I’m hoping for and obviously that we recover from Johns departure.

*Janice laughs*

John – because yours was a really serious hope wasn’t it – really quite deep and profound about optimism and world recovery! Mine was a little glib comment about…

Janice interrupts – that’s because I’m staying and you’re going!

John – true true true true.

What can brokers expect from Aviva in 2010?

Janice – it won’t be quite so colourful with John not around but I think pretty much brokers can expect that the most important thing is our relationship and that will just continue, there’s no doubt that 2009 was a tough year, 2010 might be tough as well, but we are in it together and that’s what they will see in 2010. I don’t see that changing I see, more of you know, the same working together to get through the tough times and hopefully that’s what they’ll say they have seen this year.

Janice, what will you miss the most and least about John?

Janice – What I’ll miss most is that fact that he makes me laugh so much when bad days are bad can always have 5 minutes therapy and always make me laugh.

John interrupts – and you have had lots of bad days!

Janice – what I’ll miss least. What will I miss least?

John Interrupts – there isn’t anything can we cut this out!? There won’t be anything to say!

*Janice laughs*

John – I do annoy her when I chase her up on stuff – she hates being chased up..so whoevers..Yeah..She hates being chased up on stuff..”so how you doing with that”?  ”ill tell you when I tell you!!!”..

Janice – mmm I do yeah..its email traffic generation aswell – you generate a lot of traffic…laughs….thanks I don’t sound like that!?

John – no no – a bit deeper!

*Janice Laughs*

John, What will you miss the most about Janice?

John – About Janice? …..*Long pause*

3 hours later

*longer pause…Janice laughs*

John – I think I’ll definitely miss the friendship actually because whilst we work together, I don’t think, we don’t work together as, I tend to be like that anyway but I can be like that more with Janice than anybody else, we tend not to work, although she’s effectively in my team or whatever or as I was the Sales and Marketing… its not like that – it is just as the blog says – its Janice and John

…and what will you miss about the broker world?

John – I’ll miss the gossip and in the insurance world in the broker world I love (as I was new to it in 2006) love the little bits of gossip and you get Insurance Times ringing me up or Post Mag ringing me up for some off the record gossip or I ring them and give them off the record gossip or the press office and individual brokers ring me up and say “have you heard about this?. What about that? What do you think?” I like that stuff…

Janice interrupts – yeah probably more in the broker world than any other world.

John – I do like to. Oh its fantastic in the broker world – its all about personality and individuals so there is always some little tittle tattle thing going on (Janice laughs and agrees) either at me or Janice or Igal or David or Towergate or small broker, big broker or all those things – I’ll miss that..I’ll miss that definitely.

Any New Year’s resolutions?

Janice – No I never make new years resolutions

John interrupts– really don’t you? Why not, need to give you some!

Janice – No never I just find them so repetitive…

John – Hello..I mean look at your appraisal – you have loads of things to be doing!

*Janice laughs*

John – I would always make one or two and they I would always..if I make one I do it otherwise what’s the point? And my central resolution this year is simply make the most of the opportunity in front of me because, I’ve never not worked and I’m not going to work I’m going to write and fish and ‘stuff’ yeah..so just make the most of it – don’t sit in front of the telly watching the Jeremy Kyle show because that is such a waste of a life and I’ll be really angry with myself if that’s what I do…

Anything else you would like to add?

John – yes I think that this is the last time that I’m going to be doing a blog anymore, I wont be doing the next video blog and I think it’s the apt time to handover the legacy…laughs..the apt time to say the baton has changed from me to Janice

*John hands Janice a notebook…*

Janice – Thank you *laughs*

John – There’s nothing in it!

Janice – I know! I’m used to that

John – There’s no wise words of wisdom

Janice – I wasn’t expecting any!

John – It just says in there its bloody hard work! So good luck

Janice – Thanks – So that’s it for now – this is the last time that John and I will be doing the first and last video blog together and if you have got any questions/comments – you liked it/hated it – then you know drop us a line or give us a call.

John – I liked it actually, I liked it..

Janice – you liked what?

John – I liked it, thought it was very good

Janice – right. *laughs*

John – that’s my comment! *laughs*

Janice – thanks…forever he has to get the last word!

John – Cheerio…bye bye *laughs*

Janice – Bye *laughs*

Take you back 4 weeks…

“Kitson leaves to go fishing” – screamed the papers. (Ok it was shouted, ok whispered and well a few papers- well ok Insurance ones).

“You’re not going fishing are you…that’s a lie…it must be”…came the email traffic.

“You’ll be back anyway…You’ll miss the cut and thrust…if not the money…!”

“Were you sacked? that’s the rumour…”

So 4 weeks ago…I was inundated…

“No one just packs it in.  Not at your level”…

“I don’t believe that guff  ’spending more time with your family’…that’s a smokescreen”…

“Sorry you’re going…so what other job have you got lined up?”…

Yawn says I…cynicism rules said I…I don’t do talk and no action (well that’s what I like to think). So it’s true. Riverbank here I come. And hey…headlines get written; stories get spun…so you have to repeat, repeat, repeat.

And then cynicism comes again…

“Surely you’re not surprised at the cynicism John.” 

“Ok so Insurance Times were nice about you… no wonder the money Aviva spent with them…”

“How did you manage to carry favour with the Editor of Professional Broking so well!…Oh you did an Aviva special. That must have done it…”

(Cheers …)

Cynicism rules…and 2 weeks later…

“So John, you’ve got out of the kitchen…any career tips coz I can’t stand my job.” (not an Aviva person I hasten to add)…

And then they flooded in…

“I want to leave…how do I plan for it?”

“I moan about everything here but don’t ever do anything about it…got a tip?”

“Can I come and hold your rods?”

“Got any advice because I’m jealous”

“Give me some homilies please…I need a change”

“Give me a bag of clichés to help”…

Well I have a sack load of clichés…trouble is they are what they are; clichés…individually easy to say, but difficult to get meaning from and then only a grain of truth…maybe collectively a small bag of grain…

But after 2 weeks, I had been inundated with questions/looks of distrust/pleas for advice/clichés…

…here today gone tomorrow…you only have one life…work to live…money makes the world go round…don’t be the wealthy guy in the graveyard…the grass is rarely greener just a different shade of yellow…a headline today is fish and chip paper tomorrow…when the going gets tough…life’s what you make it…

Of course the fish and chip paper line is so true…

So fast forward 4 weeks…

“Mayer leaves for America. Hodges comes to the fore”, screams the papers.

The questions to me quickly shift from cynicism; to advice; to…

“Have you got Marks telephone number?”

“Would Mark mind if I emailed him…and have you got his email address?”

“Haven’t you gone yet John?”

“So what will you miss in ‘Brokerland’, John?”

“Don’t you mean who?” I said.

“OK, who…?”

“If I take you back to 2006…me…new boy on the block…suspicion reigned…I’m a know nothing…deals/commission/consolidators/i-market/all a bit new to me …

I get an e-mail from an old friend of mine … Helen Davies (Nee Dilnott) – Hi John, I’m now working for Jelf, blah blah blah … can we meet up and I’ll bring my CEO, Alex … blah …”

“Alex who?” I said.

“Anyway … I did. We met…me…Helen…Gary….Gina and he who must be obeyed “Alex”…I then met Chris (Jelf)…the main man, top honcho, chairman, best ever salesman, nicest guy ever…and the rest is history…Presented at two of their conferences (one in a sort of football stadium inside a hotel…weird!); the business has grown dramatically for them and for us…and I hold up Alex as a guy, a relationship, which has been my most personal success…In terms of not only can we talk about anything – no holds barred…good and bad…but also in terms of the numbers, etc…I even went to a Hereford vs. Hartlepool game (Hereford are my original boyhood team -see last week’s blog) and I was guest of honour at the behest of Gina and Alex … (guest of honour included a sausage roll and a cushion on my rusty seat)…

So when you talk about ‘who’…Alex/Jelf/the team spring straight into my brain…

“And …?”

“Well, do you know what…not sure I should say, but when I took the ‘Brokerland’ job in 05/06, I hadn’t really heard of Peter Cullum…and I got a message through the grapevine that he was annoyed I’d not called him…Hmmm, I thought, who is this guy…

“I rang him later (in my time!) and had a chat…hmmm, I thought…hmmm…

“Next thing, it transpired he was a Norwich City fan…played for them in reserves or as a schoolboy…he knew all about them…upside down, back to front…you name it.  A genuine, passionate fan…like me.

“I’m not really his sort, I don’t reckon…I thought…Not really…I’m a bit odd/left field for him…and not steeped in GI like him…but in my second or third meeting with him he gave me some advice (not repeated here)…great advice…genuine advice…and subsequently we’ve been in love with Towergate/out of love with Towergate/best friends/worst of friends… I’ve presented to his MDs in Portugal…been in heated discussions about ‘you name it, we’ve discussed it’…seen Norwich City nearly bought by him/relegated…and look what he’s achieved…what a “who” to have met and dealt with.”

“And is that your two ‘who’s’?”

“No … there’s so many more …”

… To be continued …

Well, how does the Chief Risk Officer of Aviva get to be writing a column out of John Kitson’s blog?  Surfing the net one day, I stumbled accidentally upon Insurance Times and couldn’t miss reading John’s blog.  What were my reactions?  Shock, horror, followed by praise and admiration and then eventually … disappointment … once I discovered that the blog about “my holiday with my hubby” had been written by our own Janice Deacon.  Misguidedly, I thought it merited an e-mail to John and anyway here I am.

So what exactly does the CRO of Aviva do?  My job is to make sure that we have an adequate framework for identifying our risks, and taking appropriate actions to limit the impact of them on our customers and shareholders.  For the last 9 months, the focus has been substantially on the immediate risks that we face on our balance sheet.  We need to be sure that we invest our assets wisely, don’t invest in securities that we don’t understand and don’t invest in assets that won’t give us an appropriate return relative to the risk that we carry.  We also reduce our risk by reinsuring parts of our business, but we need to assess the reinsurance companies that we do business with and check that they really are reducing our risk profile and not simply adding to it!

Despite the uncertainties of the economic outlook, and the prospect of rising unemployment until 2010, we are beginning to see some stability returning to financial markets.  At Aviva, our messages about our strong capital position are now being understood.  Our re-confirmed AA rating from Standard and Poors has helped to confirm our strength.  I think the message is finally getting through that insurers aren’t like banks – not least because we have very strong liquidity positions based on receiving customers’ premiums before we pay out on claims.

As CRO, I also have to keep one eye on the horizon and think what are the new risks that we could face in the future.  This could cover risks from climate change, regulatory change and also new risks as we increase the footprint of our business in the Asia region.  One of the biggest items on my agenda at present is Solvency II.  You may have seen how after years of discussion, a European Solvency II insurance directive has finally been agreed.  Three years until implementation in 2012 sounds like a long period of time, but there is a vast amount of work to be done across the regulators and the industry as we move to modern risk-based supervision of insurance businesses.  In terms of the Solvency II landscape, we are at a crossroads.

The original Solvency II rules were drafted during a relatively benign period for markets. But the financial crisis, particularly its effects on corporate bonds, has exposed a weak spot for annuity providers. From a UK perspective, the challenge now is to show regulators in other countries that this is a problem that is heading in their direction, especially in those countries with mature demographics.

I think there will also be a number of changes that customers and intermediaries will see.  Solvency II is likely to accelerate the trend towards risk-based pricing, changing the prices for many customers and putting the spotlight on the need for improved risk prevention measures.

It also wouldn’t be surprising if we see more companies begin to move to branch based business models within the European Union, making use of existing legislative freedoms, and potentially securing some capital benefits under the Solvency II regime.  Finally, it is just not all about financial and regulatory risk.  With the re-branding now successfully behind us in the UK, but with work on-going in Poland and Ireland, we are very aware of the importance of reputational risk management across our business.  Our brand is now one of the most valuable financial services brands in the world.  With a constant focus on the quality of our customer position we believe that we can continue to grow this brand value.

Success in business and in life is often about learning from experience.  That is why Aviva is one of the World’s biggest and best insurance groups, providing millions of customers with prosperity and peace of mind. My learning is that I must be more focused in future when surfing the internet for Solvency II information and spend less time reading John’s blog!  Anyway thanks for the opportunity.

Jim Webber (Chief Risk Officer of Aviva)