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Barbara karouski

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AGCS Solicitors’ Conference highlights key challenges facing the profession

Industry News

Aug 6, 2012

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Allianz Global Corporate & Specialty (AGCS) recently held its annual one-day conference at the British Museum for leading UK solicitors and their broker partners.

Many of the presentations at the event referenced the rate of consolidation occurring in the industry, with 41% of firms likely to be involved in a merger in the next 12 months. Among the factors fuelling M&A, the perceived threat to turnover was named as a primary driver in the need to be bigger. Other drivers include: recession, corporate failures, depressed property values, competitive pressures and for smaller firms PI premiums.

The Alternative Business Structure model (ABS), which removed existing restrictions on the ownership of law firms also featured heavily. ABS has given rise to entities such as the Co-operative Legal Services and Ian Peacock of Bond Pearce also cited the example of entrepreneur and television personality James Khan investing in a West Midlands firm to compete with the London heavyweights. He warned that the profession ignored ABS at its peril as it will change the way customer’s access legal services and pay for it.

Litigation was inevitably a topic of interest throughout and Angus Turner of Mills & Reeve cited social media as potential weapon against spurious litigants. One case, in which a girl apparently tried to claim for lost career earnings due to poor tuition from a university, was found to have written on Twitter “I don’t know why I am doing this course; I don’t even want to be a lawyer.”

David Cable, AGCS head of professional indemnity, rounded off by giving his outlook on what the profession could expect at renewal this year: “AGCS is very keen to renew any good quality firm but technical rating will apply. We will continue to underwrite each account on an individual basis and if a firm’s fees are up the premium will reflect this. However, ARP contributions will be reduced in light of the changes to the 2012/13 ARP.”

2011 cats trigger business interruption review at LMA

Industry News

Aug 6, 2012

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Last year’s major catastrophes have triggered a review by the Lloyd’s Market Association (LMA) of the way in which Contingent Business Interruption (CBI) cover is written in the Lloyd’s market.

CBI insurance reimburses the insured for lost profits and additional expenses which arise from an interruption of business at the premises of a supplier or customer. The review is examining the quality of data held by the market on contingent BI risks and how underwriters monitor their aggregations and exposures in this area.

A series of catastrophic events including the Japanese earthquake and tsunami, and flooding in Thailand have highlighted for Lloyd’s syndicates writing CBI the importance of properly understanding the complex supply chain elements inherent in their clients’ businesses.

As contemporary supply chain models tend to be based on ‘just in time’ methodologies – timing deliveries precisely when needed rather than stockpiling goods – the knock-on effects of disruption to suppliers’ businesses can be greater and more complex than in previous decades. Additionally, supply chains have grown increasingly global in nature, meaning that a catastrophe in one part of the world can affect businesses in many other regions.

Following the initial review, the LMA’s Worldwide Property Panel has drawn up a model Suppliers and Customers Questionnaire. The questionnaire, which is designed to provide a practical document focusing on key aspects of supply chain management, consists of 12 questions to be completed by existing and prospective insureds.

Neil Smith, head of underwriting for the LMA, said: “What we’re trying to do is help contingent BI insurers to understand their exposures better by producing a model questionnaire that clients can complete at the point of inception to ensure underwriters get the information they need.”

The model questionnaire has been published under reference LMA9020 and is available from the LMA website www.lmalloyds.com and from the Lloyd’s Wordings Repository.

AIR Worldwide : two storms take aim at China

International

Aug 5, 2012

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According to catastrophe modeling firm AIR Worldwide, Typhoon Saola, the ninth typhoon of the Northwest Pacific storm season, made its first landfall early Thursday morning local time in Hualien, Taiwan. The storm has since been downgraded to a tropical storm, with maximum 1-minute sustained wind speeds of 106 km/h (66 mph) and is poised to strike near the border between Fujian and Zhejiang province late Thursday night or early Friday morning, local time. As of the Japan Meteorological Agency’s 15:45 UTC advisory, Saola is located in the Taiwan Strait approximately 140 km northwest of Taipei and is moving northwest at 20 km/h. Its slow forward movement is contributing to severe rainfall accumulations across the affected region.

“Damage from Saola’s winds is expected to be minimal to well-constructed buildings in China,” said Dr. Peter Sousounis, senior principal atmospheric scientist at AIR Worldwide. “There may be instances of roof and wall cladding damage to poorly built structures, including masonry dwellings (which dominate China’s residential building stock) and non-engineered commercial structures. The main concern remains precipitation-induced flooding, as rainfall of up to 400 mm is forecast in coastal regions.”

In the Philippines, Saola (locally known as Typhoon Gener) brought torrential downpours earlier this week forcing 154,000 to evacuate their homes. The storm tracked slowly just north of the Taiwan after its brief landfall. The Central Weather Bureau in Taipei reported more than 800 mm of accumulated rainfall from Tuesday to the present at 35 stations in northern and central portions of Taiwan. The city of Taipei has reported about 355 mm of precipitation. Anticipating high water levels, administrators at Taiwan’s seven major reservoirs have released water to mitigate flooding.

Dr. Sousounis continued, “Saola has flooded homes, business, and vast expanses of farmland in Taiwan. Mudslides in mountainous regions have shut down roads, and high winds have toppled trees onto cars and buildings. Heavy rains are expected to continue into the night in Taiwan, easing by midday Friday.”

China’s Central Meteorological Administration has issued a red warning for typhoon, the first such warning for this year. After its projected landfall at tropical storm strength, Saola is expected to move into Jiangxi province.

Meanwhile, Typhoon Damrey has made landfall along China’s coast farther to the north than Saola. Damrey is the tenth typhoon of the season and hit northern Jiangsu province with maximum 1-minute sustained wind speeds of 150 km/h (93 mph, or a strong Category 1 hurricane on the Saffir-Simpson scale), according to the Japan Meteorological Agency’s 15:45 UTC advisory. It is moving to the west-northwest with a forward speed of 25 km/h.

Dr. Sousounis commented, “At this time of year, typhoons that form near where Damrey did typically make landfall in southern Japan or Korea. However, a strong blocking ridge of high pressure, along with the counter-clockwise pull from the larger Saola, has tracked Damrey farther to the south. The storm is not expected to affect Shanghai, China’s largest city, which is some 400 km (250 miles) to the south of Damrey’s forecast landfall location.”

According to AIR, the storm is expected to turn to the northwest into Shangdong province and approach Hebei province farther to the north, where it is expected to dissipate on Saturday. Because of Damrey’s compact size, effects of its rainfall are expected to be less severe than Tropical Storm Saola. Precipitation of up to 250 mm is forecast by the China Meteorological Administration. At its wind speeds at landfall, Damrey is expected to cause minor damage to roof and wall claddings and damage is expected to trees, utility poles, and signage. A red warning for typhoon is in effect.

Allianz : confirms 2012 outlook after solid second quarter

Financial News

Aug 5, 2012

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German insurance giant Allianz posted a solid second-quarter net profit, boosted partly by its life and health divisions, and confirmed its full-year outlook.

Net profit rose more than 23 per cent in April to June, to reach 1.3 billion euros ($1.6 billion), the company said adding that the same period a year earlier had been hit by writedowns on Greek sovereign debt.

Analysts polled by Dow Jones Newswires had pencilled in an average estimate for 2012 second-quarter net profit of 1.21 billion euros.

“Despite the challenging environment, we confirm our outlook of an operating profit for 2012 of 8.2 billion euros, plus or minus 0.5 billion euros,” chief executive Michael Diekmann said in a written statement. Operating profit for the second quarter grew 2.8 per cent to 2.4 billion euros on 2.5 per cent stronger revenues which came to 25.2 billion euros, the company said.

Both the life and health insurance and asset management divisions recorded growth in operating profit, offsetting a more than 16-percent drop in operating profit in the natural disasters activities compared to the second quarter of 2011.

The company said that its life and health insurance business in Italy and Spain had seen “strong revenue growth for the second quarter of 2012, despite the ongoing sovereign debt crisis in Europe.”

Berlin, Aug 3, 2012 (AFP)

AIR Worldwide : two storms take aim at China

International

Aug 2, 2012

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BIBA and Gleaming Wholesale launch new Cleaning Contractors scheme

Industry News

Aug 2, 2012

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The British Insurance Brokers’ Association (BIBA) has appointed Gleaming Wholesale, as the exclusive provider of its new Cleaning Contactors scheme which provides enhanced cover and commission for BIBA members and interest free instalments.

The scheme underwritten by Hiscox Insurance includes specialist cover such as damage to property, treatment risks, loss of customer’s keys and failure to secure premises.

Steve Foulsham, BIBA’s Head of Technical Services, said: “We are delighted to be able to offer our members a comprehensive and flexible scheme which will cater for a wide range of occupations, delivered via an online facility.”

Martin Holden, Director of Gleaming Wholesale, said: “We are absolutely delighted to work in partnership with BIBA and to be able to bring this innovative product exclusively to BIBA members.

“We pride ourselves in the professionalism and quality of our service and feel that this will fit perfectly with BIBA members’ needs when it comes to placing cleaning contractors liability insurance for their clients.

“Our website and method of delivery is something we are extremely proud of as we feel it delivers something that is quite unique in this field and will support the new business and retention demands placed on brokers in the current business environment.

“Reducing the administration burden by making use of the internet and secure IT systems plus having the broking expertise and solid insurer behind it means the BIBA Cleaning Scheme is truly something that can be of great value to any BIBA member and we look forward to working with them in the future.”

The scheme provides many features and benefits including:

– 0% interest free instalments

– Continual policy cover, no renewal process

– No proposal forms to complete

– No declarations to chase

– Low minimum premiums from just £190.40

– Immediate turnaround of all quotes

– Electronic delivery of all policy documents

– Excellent levels of commission

– No minimum commitment levels

– Cover available for buildings and contents

– Cover available for tools and machinery

– Combined liability or PL only cover available

RMS : innovates for the Expanded VITA Mortality Bond

Industry News

Aug 1, 2012

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Risk Management Solutions (RMS) today announced that it has conducted the expert risk analysis for Swiss Re Ltd’s sixth issuance of the mortality-linked catastrophe bond, VITA V. The transaction has increased significantly from its initial target of $100 million up to $275 million in only two weeks.

Vita V Series 2012-1 provides Swiss Re Ltd with multi-year extreme mortality protection through the capital markets, with two tranches: one covering catastrophic increases in death rates in Canada and Australia; and the other covering Canada, Australia, and the U.S.

“We are extremely pleased to continue to be involved in the VITA Series and to support the expansion of excess mortality in the ILS market,” said Dr. Molly Sullivan, Senior Director of Model Development at RMS LifeRisks. “We are committed to providing the most robust risk quantification possible, and this issuance expands geographically to cover Australia and incorporates a country and gender-specific stochastic longevity model to better quantify baseline mortality trend and uncertainty.”

In addition to adding Australia to the modeling, this was the first bond to link together the RMS longevity risk model with RMS excess mortality risk models, to provide a holistic view of the risk using science- based modeling. Previous versions of VITA used conventional statistical methods for projecting baseline mortality, but the VITA V adoption of the RMS longevity model enables causes of future mortality improvements to be fully explored in the trend risk assessment. The RMS suite of LifeRisks models for excess mortality risk includes pandemic influenza, emerging infectious disease, terrorism, and natural catastrophe. These models simulate highly realistic scenarios in a fully probabilistic framework to assess the risk of a high mortality event in each country.

RMS also conducted the expert analysis for the previous issuance of VITA in August 2011. The VITA IV series of notes provided Swiss Re Ltd with five years of protection against all extreme mortality in the U.S., U.K, Canada, and Germany, including from infectious disease, terrorism, and earthquake casualty.

Mike East to be next Chairman of LMA’s Claims Committee

Social

Aug 1, 2012

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Mike East, Head of Operations and Claims of Canopius Managing Agents Limited, is to be the new chair of the Lloyd’s Market Association’s (LMA) Claims Committee.

He will replace Jeremy Pinchin, who has chaired the committee since May 2009 and is taking up the position of CEO of Hiscox Bermuda and Group Claims Director.

East has been a member of LMA’s Claims Committee since his election by the market’s claims community in January 2010. He takes over the role of chair with immediate effect.

Commenting on his appointment, East said: “It’s a great honour to take up the role of chair of the LMA’s Claims Committee. Under the chairmanship of Jeremy Pinchin, the committee has been a real force for change and I’m committed to continue this good work.

“As the representative body of the Lloyd’s claims community, our aim is to work collaboratively with the Corporation of Lloyd’s and the broking community to drive excellent performance and continue to increase the profile of claims within our industry. I’m looking forward to working with the committee to achieve this end.”

Although the market’s Claims Transformation Programme is currently the committee’s highest priority, the Claims Committee also oversees other LMA claims activity including the ECF2 and static claims initiatives.

Tim Willcock, the LMA’s Head of Claims said: “I’m extremely pleased that someone as passionate about claims as Mike is willing to take up this role and is committed to leading the Lloyd’s claims community through this next period of change.”

The LMA’s Claims Committee currently has nine elected members and seven ex officio members.

Liberty Mutual Insurance’s commercial clients get free access to risk management service

Communication

Jul 30, 2012

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Policyholders of Liberty Mutual Insurance (LMI), the commercial lines division of Liberty Mutual Insurance Europe Limited (LMIE) and part of Liberty Mutual Insurance Group, will be given free access to an online risk management website, Risk Reduce.

Risk Reduce provides risk management advice and tools such as survey reports, loss lessons, an accident book and the ability to provide online risk improvement feedback to the LMI team. It also provides access to detailed risk engineering information such as procedures, business continuity and training. Risk Reduce will be made available to LMI’s new and existing commercial combined, commercial property and casualty clients.

LMI began to develop Risk Reduce in late 2010 and, following a programme of rigorous testing, commenced the roll-out to clients in May 2012.

LMI’s senior risk manager Stuart Kenyon said: “The Initial feedback from clients who are now using Risk Reduce has been very positive, so we are accelerating the roll-out programme. It is our aim to give all existing LMI commercial combined and commercial property clients access by the end of 2012.”

“Risk Reduce enables the sharing of best practice risk engineering knowledge for all clients, irrespective of whether we have completed a site survey. Having discussed with a number of LMI brokers and clients, the conclusion was that this type of online tool was the most effective way to deliver best practice risk engineering advice and knowledge. Risk Reduce has been developed based upon learnings from historical loss events and utilising the LMI commercial risk engineering team’s extensive industrial and insurance knowledge and experience.”

“LMI plans to continue the development of Risk Reduce and further content will continue to be added over time. No additional fees will be charged for the use of the system.”

LMI was launched in March 2011, representing LMIE’s first major push into the UK’s commercial mid-to-large SME market. The move saw a major expansion of LMIE’s network of regional offices with new offices in Birmingham and Leeds. LMIE also has offices in London, Bristol, Cheltenham and Manchester.

European Commission temporarily approves aid to Alpha Bank, EFG Eurobank, Piraeus Bank and National Bank of Greece

Industry News

Jul 29, 2012

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The European Commission has temporarily approved, under EU state aid rules, a bridge recapitalisation provided by the Hellenic Financial Stability Fund (HFSF) in favour of Alpha Bank, EFG Eurobank, Piraeus Bank and National Bank of Greece, for reasons of financial stability.

At the same time, the Commission has opened four in-depth investigations to examine whether the measure is in line with its rules on state aid for banks during the crisis. The opening of an in-depth investigation is common for large amounts of state aid granted through atypical instruments. It gives interested third parties an occasion to submit comments on the measures and increases legal certainty for the beneficiaries. It does not prejudge in any way the outcome of the investigation.

Commission Vice President in charge of competition policy Joaquín Almunia said: “Greek banks are currently operating under extreme conditions. Their participation in the Greek Government bond exchange and the deep recession have weakened their capital. The bridge recapitalisation by the HFSF ensures the stability of the Greek banking system”.

In April 2012, the HFSF committed to participate in the planned share capital increases of Alpha Bank, EFG Eurobank, Piraeus Bank and National Bank of Greece. On 28 May, the HFSF, in line with this commitment, granted the banks a bridge recapitalisation to cover the period until their final recapitalisation is implemented. More precisely, the HFSF deposited in the banks European Financial Stability Fund (EFSF) floating notes with maturities of six and ten years. The total amount received by the four banks is €18 billion. These deposits count as equity.

Greek banks have participated in the Greek Government bonds exchange, known as private sector involvement (PSI). The debt exchange resulted in very significant losses, depleting the capital base of the banks. The bridge recapitalisations have restored the banks’ capital ratios to a level that allows their functioning on the market and access to euro-system operations. The measure aims to help the banks to comply with the national regulatory capital requirements of 8%. They constitute state aid because the banks would not have been able to raise the capital on the financial markets.

Background

The four banks in question represent around three quarters of the Greek banking sector and have an important role in financing the real economy. Therefore, the Commission concluded that the measure was necessary to preserve financial stability in the Greek banking sector, in line with Article 107(3)(b) of the Treaty on the functioning of the European Union (TFEU). The Commission has approved the measure for six months or, if within that period, the Greek authorities submit a complete notification of the conversion of the bridge recapitalisation into a final recapitalisation, until the Commission reaches a final decision on this notification.

All four banks have benefited of state capital injections, guarantees and bond loans granted under the support measures put in place by Greece following the financial crisis and initially approved by the Commission on 19 November 2008 (see IP/08/1742). The capital injections took the form of preference shares and represented around 2% of each bank’s risk weighted assets.

Since the Greek banks were expected to face substantial capital shortfalls as a result of the private sector involvement and the continuing recession, the Memorandum of Economic and Financial Policies of the Second Adjustment Programme for Greece between the Greek Government, the European Union, the International Monetary Fund and the European Central Bank of 11 March 2012 has made available funds for the banks’ recapitalisation.

The (final) recapitalisation of the Greek banking sector has to be carried out in order for banks to comply with a 9% Core Tier 1 ratio by September 2012 and 10% by June 2013 as provided in the Memorandum.

EIOPA latest report on the Role of Insurance Guarantee Schemes in the Winding-Up Procedures of Insolvent Undertakings

Industry News

Jul 25, 2012

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The European Insurance and Occupational Pensions Authority (EIOPA) has published its Report on the Role of Insurance Guarantee Schemes in the Winding-Up Procedures of Insolvent Undertakings in the EU/EEA.

The aim of the report is to summarize the results of a survey on the role of IGSs in the winding-up procedures of insolvent undertakings across the EU/EEA in which 24 members participated.

Findings from this report highlight the lack of harmonization in areas such as:

– Which authority takes a decision to intervene in case an insurance undertaking becomes insolvent

– The ability to provide for portfolio transfer

– A lack of pre-warning systems when an insurance undertaking experiences difficulties

– The role of the supervisory authority when an insurance undertaking becomes insolvent.

The findings also highlight that policyholders can be at risk of inconsistent treatment across Member States and little or no insurance cover due to the lack of a harmonized approach to IGSs across the EU/EEA.

The text of this report can be viewed under the following link on EIOPA website: https://eiopa.europa.eu/fileadmin/tx_dam/files/publications/reports/Report_on_the_Role_of_Insurance_Guarantee_Schemes_in_the_Winding-Up_Procedures_of_Insolvent_Undertakings_in_the_EU-EEA.pdf

AIR Worldwide : expands suite of catastrophe models for Australia

International

Jul 25, 2012

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Catastrophe risk modeling firm AIR Worldwide (AIR) has expanded its suite of catastrophe models for Australia with the release of the industry’s first probabilistic bushfire model and updated tropical cyclone and earthquake models.

“AIR’s current suite of Australia models represents the results of a multi-year research effort aimed at serving the evolving risk management needs of the worldwide and Australian insurance industries,” said Dr. Jayanta Guin, senior vice president of research and modeling at AIR Worldwide. “The events of 2011 — including the Queensland floods, Cyclone Yasi, and the bushfires near Perth — and the Victoria earthquake in May 2012 demonstrate Australia’s exposure to multiple perils. The AIR models for Australia provide a realistic and comprehensive view of catastrophe risk in this region.”

The AIR Bushfire Model for Australia — the newest addition to the suite — captures the effects of bushfires on insured properties in the Australian mainland and Tasmania. To determine the occurrence and severity of wildfires, the model considers fire ignition frequency and location, available fuels (vegetation), weather (seasonal conditions and wind characteristics), topography (the ground surface features that can affect winds), and fire suppression efforts. The model has also been through an extensive peer review.

“Bushfires in Australia are the natural product of the continent-wide aridity, frequent periods of drought, high temperatures, parched vegetation, and the recurrent strong, steady winds that are characteristic of the country,” said Dr. Guin. “Many populated areas in Australia have conditions that are ideal for feeding fires, and Australia has suffered significant losses from such events — including the 2009 Black Saturday bushfires, which caused insured losses of more than AUD $1.3 billion.”

The AIR Bushfire Model for Australia generates demonstrably realistic scenarios of loss. It filters the roughly 10,000 continent-wide ignitions that occur in Australia every year down to the dozen or so that are likely to cause property loss — in line with the historical average. It includes a large and robust event set of simulated fires in the locations where they are most likely to occur and explicitly models the tendency of fires to occur in clusters. In addition, the model accounts for the seasonality of bushfires in Australia by region. To provide accurate vulnerability assessment, the model supports a wide range of construction types commonly found in Australia.

AIR also made significant updates to all components of its tropical cyclone and earthquake models for Australia. In addition to a wide range of enhancements to the hazard components, both models now account for regional differences in construction practices, as well as building code evolution and enforcement. Both models also support property and business interruption losses to complex industrial facilities.

The AIR Tropical Cyclone Model for Australia estimates losses separately for wind, storm surge, and precipitation-induced flooding. Other highlights include:

– a new 10,000-year stochastic catalog containing more than 116,000 simulated storms ranging from tropical low to Category 5 on Australia’s Bureau of Meteorology intensity scale

– a new, dynamic flood module for capturing precipitation-induced flooding

– a new storm surge module for capturing sea level rise along the coast caused by onshore winds of a cyclone

– new high resolution (1 km) land use/land cover data (near the coast) to estimate the local roughness of, and turbulence generated by, land and water surfaces

– updated damage functions that support a greatly expanded set of construction types, occupancy classes and lines of business, including pleasure boats and yachts (The damage functions have been validated based on loss experience data and findings from recent AIR post-disaster surveys.)

Highlights of the updated AIR Earthquake Model for Australia include:

– a new, optimized 10,000-year catalog that incorporates the latest science and research on the earthquake hazard in Australia, including a novel approach for utilizing information on neotectonic faulting to estimate earthquake risk in this seismically stable region.

– a new liquefaction module covering major urban areas that have high liquefaction potential

– a new nationwide high-resolution (1 km) soil classification map (0.5 km in regions of higher exposure) to better account for the potential amplification and attenuation of seismic waves caused by soil type

– Australia-specific ground motion prediction equations that assess the regional differences in seismic risk

The AIR Bushfire, Tropical Cyclone, and Earthquake models for Australia are currently available in Version 14.0 of the CLASIC/2 and CATRADER catastrophe risk management systems.

RMS comments on the Beijing Floods

International

Jul 25, 2012

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On Saturday, July 21, a powerful storm system with intense rainfall and widespread thunderstorms brought flash flooding and landslides across the Beijing area of China. According to the China Meteorological Agency, the average rainfall received across Beijing in the 24 hour period from on Saturday was 170mm (6.7in) – which is close to the average rainfall for the month of July in the Chinese capital. The worst affected area was the Fangshan district in the southwest of Beijing which received 460mm (18.1in) of rainfall – the highest rainfall accumulation recorded in Fangshan. The eastern district of Pinggu was also particularly affected by this event, receiving 100mm (4in) of rain in just one hour on Saturday.

Across Beijing, over 60,000 people were evacuated from their homes, of which over 20,000 were evacuated in the Fangshan district. Emerging reports indicate widespread residential flooding in Fangshan, though the insurance penetration in the region affected is very low. In the city centre numerous roads were submerged by up to 1 m of water. Over 500 flights were cancelled at the Beijing Capital International Airport, with some 80,000 travelers left stranded at the airport. Officials are reporting 37 fatalities (predominantly from drowning); though expect this figure to rise. According to the Beijing Municipal Government, the rain, flooding and landslides have caused damage of at least $1.6 billion (10 billion yuan).

According to the China Meteorological Agency further rain is forecast to impact Beijing over the next 5 days – though is not forecast to be as heavy as the rainfall received on Saturday with storm warnings extending over much of eastern and northeast China.

U.S. : severe drought leads USDA to make more land available for grazing and haying

International

Jul 23, 2012

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The Obama administration opened up protected US land to help farmers and ranchers hit by severe drought Monday, and encouraged crop insurance companies to forgo charging interest for a month.

The US Department of Agriculture said the new measures for major conservation programs were aimed at helping “livestock producers as the most wide-spread drought in seven decades intensifies in the United States.”

“Beginning today, USDA will open opportunities for haying and grazing on lands enrolled in conservation programs while providing additional financial and technical assistance to help landowners through this drought,” Agriculture Secretary Tom Vilsack said in a statement.

“President (Barack) Obama and I are committed to getting help to producers as soon as possible and sustaining the success of America’s rural communities through these difficult times,” he said. The measures add flexibility to three voluntary programs designed to protect the environment.

Additional acres in the Conservation Reserve Program will be made available to farmers and ranchers for haying or grazing, as the most widespread drought in seven decades has substantially reduced forage for livestock, the USDA said. The lands made available are classified as “abnormally dry” and do not include sensitive lands such as wetlands and rare habitats.

Other areas opened up were in programs dealing with water conservation and wetlands reserves.

Under the Federal Crop Insurance Program, the USDA said it “will encourage crop insurance companies to voluntarily forego charging interest on unpaid crop insurance premiums for an extra 30 days, to November 1, 2012, for spring crops.”

In turn for the help to struggling farmers and ranchers, the USDA said, it will not require the crop insurance companies to pay uncollected producer premiums until one month later. It recently reduced the interest rate for emergency loans to 2.25 per cent, from 3.75 per cent.

Since the year began, disaster areas have been declared in 29 of the nation’s 50 states, making farmers there eligible for low-interest federal loans, the USDA said.

Washington, July 23, 2012 (AFP)

Israel / social justice protests : man sets self on fire days after burns victim dies

International

Jul 22, 2012

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A wheelchair-bound Israeli was in serious condition on Sunday after setting himself on fire just hours before the funeral of a man who had set himself alight during a social justice protest on July 14.

“A man in a wheelchair set himself on fire at a bus stop near Yehud” near Tel Aviv, police spokesman Micky Rosenfeld told AFP. “Passers-by put out the flames. The man, in his late forties, was in serious condition, he was taken to the Sheba hospital in Tel HaShomer,” he said.

“From what we know, he set himself on fire,” Rosenfeld said, indicating that an investigation was under way.

Sunday’s apparent self-immolation, carried out by a man who is reportedly a disabled Israeli army veteran, took place just hours before the funeral of Moshe Silman.

Silman died on Friday, six days after setting himself ablaze at a Tel Aviv social justice demonstration. In a letter he read out before setting himself alight, he accused the Israeli establishment of “taking from the poor and giving to the rich.”

He also wrote that despite being incapable of working due to a stroke, a housing ministry committee did not find him eligible for public housing benefits. Over a thousand Israelis held vigils for Silman in Tel Aviv and other Israeli cities on Saturday night.

“Tonight, we are all Moshe Silman,” they chanted at the site where he doused himself with kerosene and set himself on fire. Many participants carried candles, an AFP correspondent said.

“By marching we honour the memory of all victims of economic duress and the anti-social policy of the Israeli government” headed by Prime Minister Benjamin Netanyahu, the organisers said in a statement. Silman’s self-immolation set off a wave of similar incidents, with Sunday’s incident marking the fifth such attempt, press reports said.

Sunday’s victim sustained the worst injuries since Silman, with the man sustaining burns over 80 per cent of his body.

Jerusalem July 22, 2012 (AFP)

EIOPA / OPSG : publishes its feedback statement on the European Commission White Paper “An Agenda for Adequate, Safe and Sustainable Pensions”

Industry News

Jul 20, 2012

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The Occupational Pensions Stakeholder Group (OPSG) of EIOPA published its Feedback Statement on the European Commission White Paper “An Agenda for Adequate, Safe and Sustainable Pensions” that looks at how the EU and the Member States can work to tackle the major challenges that confront our pension systems.

In its Statement the OPSG commented on the European Commission’s analysis and initiatives and provided recommendations on such issues as structure of pension systems, development of pillar 2 pensions, reporting on pension systems by Member States, flexibility of the pension systems and the need for mobility, information to members related to the three pillar pensions, protection of pensions and good practices.

OPSG recommended that regulation of pensions be balanced between citizen’s rights and economic needs underlining efficiency as a critical factor for the development of adequate, safe and sustainable and regulation to and flexibility of the pension schemes etc.

The Feedback Statement is part of the OPSG’s own initiative work. It was prepared by a specially formed sub-group led by Mr. Klaus STRUWE (beneficiaries group) who had to align and balance different opinions expressed during the preparation process.

On 17 July 2012 Chris VERHAEGEN, Chair of the OPSG, sent the Feedback Statement to EIOPA Chairman, to the European Commission and to the European Parliament. The text of the Feedback Statement can be viewed under the following link on EIOPA website (Link: https://eiopa.europa.eu/fileadmin/tx_dam/files/Stakeholder_groups/opinions-feedback/EIOPA-OPSG-12-06_Feedback_Statement_on_EC_White_Paper_on_Pensions.pdf ).

Appointment : Tim Ablett is new ECIC/ECIS Chairman

Social

Jul 19, 2012

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Electrical Contractors’ Insurance Holdings (parent company of ECIC, the Electrical Contractors’ Insurance Company and ECIS, the Electrical Contractors Insurance Services business) has announced the appointment of Tim Ablett to the role of Chairman at ECIH and its subsidiaries Electrical Contractors Insurance Company (ECIC) and Electrical Contractors Insurance Services (ECIS).

Tim has spent over 30 years within senior roles in the insurance market, including Director of Personal Lines at RSA, Managing Director of Groupama UK and CEO of FirstAssist. Since 2006 Tim has fulfilled a variety of Non-Executive Director roles within the insurance industry, including at EuropAssistance, Hastings Insurance Services, InterHannover, Garwyn Group and Equity Insurance Group. He is also currently the Chairman of Age UK Enterprises and Master of the Worshipful Company of Insurers, and is a Fellow of the Chartered Institute of Accountants, where he is on the Non Executive Director Committee.

Roger Brown, Managing Director for ECIH, commented: “The ECIH Group of businesses have experienced significant growth over the past few years particularly following the attainment by ECIC of an A.M.Best A(-) Rating in 2010. We are delighted with Tim’s appointment as he brings a wealth of knowledge and experience that will be invaluable to the business in the years ahead”.

Tim added he is very pleased to be joining the ECIH group at this exciting stage of its development and is keen to assist the very able Executive team to grow and expand its affinity propositions both to the ECA but also to the open market.

The AmTrust Group has completed the acquisition of Dore & Associates Holdings

Industry News

Jul 19, 2012

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The AmTrust Group has completed the acquisition of Dore & Associates Holdings Ltd (DAHL) on the 6^th July.

DAHL was created in January 2011 as the employer company of the staff of Syndicate 2526 following the novation from Alterra at Lloyd’s to Asta Managing Agency Ltd (formerly Whittington), the leading Lloyd’s third party syndicate manager.

The transaction is intended to provide the founders of DAHL and AmTrust with the opportunity and resource to develop the Syndicate and related management infrastructure to be in a sufficient position, subject to FSA and Lloyds approval, to migrate to their own Managing Agency in due course.

Andy Dore (Chairman of DAHL and Active Underwriter Syndicate 2526) commented:

“I am delighted that AmTrust have taken this opportunity to share in our ambitions to achieve a turnkey Lloyds Managing Agency. This transaction gives us the opportunity to develop Syndicate 2526 with a greater certainty of future financial support, expertise and introduce potential further diversification to the Syndicate portfolio”.

Max Caviet (Chief Executive of AmTrust’s European Operation commented:

“We are excited to have the DAHL organisation join AmTrust and look forward to working with DAHL and Asta, subject to Lloyds approval, to help grow and diversify the Syndicate portfolio.”

Stephen Cane (Chief Executive of Asta) commented: “This is a positive development for Andy Dore and Syndicate 2526 and we look forward to working with both AmTrust and Andy in the growth of the syndicate and the development of the managing agency.”

Deloitte : home insurers’ underwriting profits increase

Industry News

Jul 18, 2012

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Figures compiled by Deloitte show that 2011 was the fourth consecutive year when home insurance premiums either met or exceeded the cost of claims and expenses.

Home insurers in 2011 posted a net combined ratio of 89%, which means the combined cost of claims and expenses was £89 for every £100 of net earned premium. This is a significant improvement on 2010 when the net combined ratio was 99%. In 2007, the last year to experience widespread flooding, the net combined ratio was 120%.

James Rakow, insurance partner at Deloitte, said: “At an industry level, the size of the home insurance market remains stable with annual premiums worth about £6.5bn, and 2011 was the fourth consecutive year when premiums met or exceeded claims and expenses. Profitability improved in 2011 because it was a relatively benign year for weather-related losses compared to 2010, when the insurance industry was hit hard by the extremely cold weather that Britain experienced in the December.

“The cost of claims arising from the floods that have swept across the country over the past few weeks will be the greatest since the 2007 flood losses, and will make insurers, reinsurers and other agencies look again at their flood models to check how well they predict the cost of flood claims. The full costs of the claims from this summer’s floods have yet to be assessed but previous experience has shown that widescale flooding can have a significant impact on the level of claims borne by insurance companies. In 2007 this pushed them into losses for their home insurance accounts.”

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