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Xchanging has announced its strategic partnership with Legal Solutions Group (LSG). The deal enables delivery of a unique, integrated, end to end Expert management processing solution for Xchanging’s Lloyd’s, London and international insurance market customers. The solution encompasses online expert instruction, e-billing, automated invoice validation, budget management, fee agreement & settlement together with comprehensive data reporting and delivery of critical management information.

The integrated service, which will initially be available to all Lloyd’s and London Market customers, enables full control over Expert spend and will provide the customer with the confidence that they are being billed accurately for services procured from Experts (both legal and non legal). The enhanced service will complement Xchanging’s existing Fees Direct agreement & settlement service.

Commenting on the partnership Rob Myers, Director Business Processing Services said: “Xchanging welcomes the opportunity to partner with LSG to offer an enhanced version of our successful Fees Direct service. Having the opportunity to further develop this product means Xchanging can now offer the most comprehensive service available to Lloyd’s syndicates and London companies in the area of expert management and fee collection. This deal reinforces Xchanging’s commitment to continuous improvement and innovation of services supplied to our insurance customers, enabling them to reduce their Expert spend and manage fees more efficiently.

Gary R Markham, Chief Executive of Legal Solutions Group said: “As a key partner to Lloyd’s and the London market, Xchanging has the relationships in place to help bring this enhanced benefit to the wider market and we are delighted to be partnering with them on this initiative.”

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New customers of AA’s telematic or black box ‘pay how you drive’ insurance are to be offered free Drive Smart tuition, thanks to a new initiative by the AA’s Charitable Trust.

Users of the AA’s new Drivesafe insurance, which was launched in March 2012, are already demonstrating that they are safer drivers than average, as the first of them are receiving refunds for the high driving standard they are recording.

However, the system shows that many drivers take a while to get used to the concept of thinking about their driving style in relation to road conditions ahead, while a few show little or no improvement in their driving standard at all.

Simon Douglas, director of AA Insurance, says that the AA Charitable Trust is committed to improving road safety.

“Offering Drive Smart tuition will help new drivers using AA Drivesafe to start driving in a way that will improve their safety, and the safety of other road users, from the word go.  The tuition is provided by the AA Driving School and funded by the Trust.

“If they can immediately demonstrate an improving standard of driving they are significantly reducing the risk of having a crash.  They also stand to be rewarded with a decent refund, bringing down the premiums that they pay.

“The best new drivers could see their first year’s premium halved, taking into account both their no-claim and good driving bonus.”

The initiative comes at a time when premiums for young drivers have been rising steeply because of the frequency and cost of claims suffered particularly by young men.  Car accidents are, by far, the biggest single cause of death and serious injury to teenagers.

“It’s vital that we do all we can to bring down this toll,” Mr Douglas points out.

“Good driving education is a fundamental part of that and I believe that the combination of Drive Smart tuition with the continuous monitoring of driving standards, that can be followed by users of AA Drivesafe on their home computer or smartphone, will quickly help them to become responsible, proficient and considerate drivers.”

Mr Douglas points out that good driving isn’t gender-specific.

 “All young drivers can improve the way they drive.  Telematic insurance systems are gender-neutral and that will be important after 21st December this year.  After that, insurers will no longer be able to calculate premiums based on the gender of their customers, thanks to a European Court of Justice ruling.”

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Changes in the costs regime and processes for handling Employers Liability (EL) and Public Liability (PL) claims need to be an important focus for MGAs ahead of their implementation in 2013.

Speaking at the Managing General Agents’ Association (MGAA) London market briefing earlier this week, Alistair Kinley, policy development partner at Berrymans Lace Mawer LLP, highlighted a range of developments and changes in the EL and PL claims area, and urged MGAs to consider their implications as a strategic importance.

Kinley said: “The Jackson review of costs will bite, from April 2013, and will change the costs paid in “no win, no fee” claims”. Under the reforms, defendants’ insurers will no longer pay for success fees and for legal costs insurance. The flip-side of these changes is that awards for general damages may rise – by ten percent – and that successful defendants will generally no longer recover costs from losing claimants under a system known as qualified one-way costs shifting. MGAs and insurers will need to understand the balance of impacts across their claims portfolio.”

In addition, Kinley explained that these changes were likely to coincide with proposals to introduce a streamlined process for handling moderate value EL and PL claims, highlighting the Government’s commitment to extending the present scheme for motor injury cases under £10,000 to EL and PL cases up to £25,000.

Kinley commented: “This could represent a further opportunity to address disproportionate legal costs in these claims, but compensators will need to review their claims notification and liability decision making processes to ensure they can comply with what are likely to be quite tight timescales for admitting liability and making offers to claimants.”

Chairing the briefing, Reg Brown, Chairman of the MGAA, said: “The potential impact of these changes emphasises the need for MGAs to ensure they understand, and as importantly, respond to the challenges ahead. The implications for not taking action could undermine the fundamental role MGAs play in protecting their capacity provider, and hence the hard earned reputation this market has achieved for innovation and service.”

The briefing, held at the Lloyd’s Library, provided MGAA members with a ‘snapshot’ of EL and PL claims trends, themes and practical advice and top product liability topics, over the past 12 months.  Speakers touched on subjects including important coverage issues, non-injury related PL claims and highlighted legal developments, in particular the current key legal position, such as The Jackson Reforms, extending the road traffic scheme to EL and PL, and the consultation about discount rates.

This was the first presentation by Berrymans Lace Mawer LLP, a Supplier Member of the MGAA. The firm also announced the launch of its MGAA dedicated website client area (www.blm-law.com).

Officially launched on 1 September 2011, the MGAA is currently supported by 44 full members underwriting in excess of £1.30 bn of GWP, 16 insurer members and and 19 supplier members.

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Insurance industry title holder Legal & General will set out to defend its trophy in the Standard Chartered Great City Race on Thursday 12 July after entering a strong team to compete in the 5K corporate running challenge. The company will face tough opposition though with 38 other insurance businesses set to line up alongside it on the start line.  

Legal & General has been a consistent performer in the race having previously won the team and individual titles. Lloyd’s and Marsh have both increased the number of runners in their teams from last year and will be amongst the other insurance companies expected to challenge Legal & General for the industry title.

The Standard Chartered Great City Race is firmly established as the City’s premier corporate running challenge, selling out in record time again this year with 6,800 runners representing over 350 companies set to pace round London’s Square Mile. Other industry sectors taking part in the race include legal, banking, accountancy and the media.

While the industry titles will be hotly contested, all runners are also being encouraged to help raise vital funds for the race’s official beneficiary, Seeing is Believing, a global initiative that tackles avoidable blindness. There are 285 million blind people in the world, yet amazingly 80% of all cases could have been prevented.

Every entry will support Seeing is Believing with £5 from each runner’s entry being donated to the initiative which aims to raise $100 million by 2020. Standard Chartered Bank has also pledged to match all donations pound-for-pound, therefore doubling the impact.

Richard Holmes, Standard Chartered Bank CEO Europe said: “The Standard Chartered Great City Race is a wonderful event which brings together companies from all over London’s Square Mile.

“The competitive side of the race is always fierce but the fun team environment and the ability to make a positive impact on the lives of others helps make this event one of the key dates in the City calendar.”

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A report from Deloitte highlights how insurers are preparing for the introduction of Solvency II by changing their approach to calculating capital adequacy requirements. Conducted by the Economist Intelligence Unit, the latest edition of the annual Deloitte Solvency II survey of insurers found that:

– More than half (51%) of respondents plan to change their approach to calculating regulatory capital, and of those, 60% have increased the sophistication of their approach;

– Of those who are changing their approach, 37% are switching from a partial internal model to a full internal model and 23% have moved away from the standard formula approach;

– However, 40% of those changing their approach have chosen a simpler method, with 10% moving from a full internal to a partial internal model, 13% moving from a partial internal model to the standard formula and 17% from full to standard.

– Insurers use risk models to calculate capital adequacy requirements, and under the Solvency II rules – scheduled to be implemented in January 2014 – insurers can adopt an internal model (full or partial) or standard formula. Internal models may be more expensive than the standard formula to implement and run, but they can give insurers a clearer picture of their risk and reduce their capital requirements.

Last year’s survey found that half of respondents had decided on a full internal model to calculate capital adequacy requirements, 30% a partial internal model and 20% standard formula.

Rick Lester, lead Solvency II partner at Deloitte, said:

“Solvency II forces insurers to analyse the risks they run across their business and determine the level of capital they need to hold. Risk models lie at the heart of the rules and enable insurers to calculate capital requirements in line with the level of risk they are taking.

“Insurers use internal models if they believe they are a better reflection of their risk profile than standard models. There is a cost to adopting them, but there are also potential benefits because they can give a better understanding of risk, which should enable better business decisions and may ultimately lead to lower capital requirements.”

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Further evidence of the need to reform the UK compensation culture comes today with an ABI-commissioned survey showing that three in four people have received an unsolicited text or phone call from a claims management company offering them the chance to claim compensation, even though the overwhelming majority had no grounds to claim compensation.

The results of the ABI-commissioned survey of over 2,600 adults highlights that:

– Over three-quarters of people (78%) have been contacted by a Claims Management Company (CMC) asking if they had been involved in an accident or been mis-sold payment protection insurance. In London, the figure rose to 82%.
– Nine in ten people (92%) who received such a message from a CMC said it was not relevant to them.
– There is strong support for a crackdown on CMCs, with three in four people backing a ban on unsolicited messages as a way of reducing the epidemic of fraudulent whiplash claims.

James Dalton, the ABI’s Head of Motor and Liability, said: “Unsolicited contact from claims management firms is a symptom of our dysfunctional compensation system, which encourages frivolous, exaggerated and even invented claims, especially for personal injury. The real losers are honest policyholders who end up paying the price through higher insurance premiums. Our survey results show widespread public support for our calls to tackle this nuisance, as part of wide ranging reforms to the compensation system, so that genuine claimants are the only ones who receive pay outs.”

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Specialist motor insurer Equity Red Star has launched a new product to provide a solution for family run businesses and small enterprises operating fleets with 2 to 10 cars and/or commercial vehicles.  This new mini fleet product will complement the existing Fleetsure product range and has been launched in response to a growing number of enquiries from this sector.

Branded as SME Protect, this mini-fleet product has been specially designed to cover fleets of 2–10 cars and commercial vehicles and has its own dedicated wording and rating.  This is a brand new offering from Equity Red Star and enables them to provide a fleet solution for firms with just 2 vehicles upwards.

At the same time, Equity Red Star is revamping its long-established Fleetsure policy wording, catering for fleet operators with 10 vehicles or more.  This product has the flexibility to cover a variety of vehicle types from cars to light vans, large commercial vehicles, minibuses and coaches.

According to the company, the new Fleetsure product has been developed to provide a wider policy wording as standard making it easier to use and more streamlined.   With minimal need for additional endorsements under the new policy, there is greater clarity of cover for customers.

The policy also includes additional and more straight-forward advice on what to do in the event of a claim. This is designed to encourage quicker reporting of incidents enabling Equity to handle these efficiently and effectively.

Commenting on SME Protect, Mark Bacon, Active Underwriter at Equity Red Star, said: “As a small business owner you will have the ability to insure all your vehicles under one policy which gives the benefit of blanket certificates, one overall fleet rated premium and wider policy cover.”

The products will be underwritten by Equity’s dedicated fleet specialists operating from seven regional offices in Birmingham, Brentwood, Bristol, Glasgow, Leeds, London Market and Manchester.

Key benefits of both the revamped Fleetsure policy and new SME Protect policy include:

– Cover for damage to third party property of £20m for cars and £5m for all other vehicles

– New for old cover on cars and vans up to 3.5 tonnes

– Cover for loss of keys and replacement locks

– Medical expenses limit of £500

– Personal belongings limit of £250

– Driver personal accident benefits of £10,000

– Legal costs including Corporate Manslaughter Defence £1,000,000

Supporting both these products are:

– A dedicated claims teams in Swansea and Brentwood

– Soon to be launched fleet manager packs and vehicle insurance packs which provide details of and help with managing the claims process

– The Equitrack Telematics products featuring black box technology and in vehicle camera systems.

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Casualty & General Insurance Company (Europe), the Gibraltar-based specialist in liability cover which opened offices in London last month, has rebranded as CGICE.

The decision to rebrand was heavily influenced by brokers, who have been abbreviating the company’s name to CG-ice.

The rebrand, unveiled on Monday, sees a complete overhaul of the company’s website and all its branded materials. As part of the process, CGICE has also taken the opportunity to revamp its back office IT system, simplifying the quotation process for brokers.

Danny Gibson, CEO of CGICE said: “As so many brokers were calling us CGICE – and that’s also our website domain – it seemed sensible to use that as our trading name. If it works for brokers, then it works for us.”

CGICE was founded in 2003 by former-Lloyd’s underwriter Danny Gibson. Since then the company has grown steadily and profitably, writing business in both UK and French markets. The company focuses on providing liability cover for all industries including high hazard–high risk professions along with tailor-made solutions for scheme business.

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According to catastrophe modeling firm AIR Worldwide, Hurricane Carlotta came onshore Friday night as a Category 1 storm near the Oaxacan town of Puerto Escondido (est. pop. 26,000 in 2010), about 200 miles southeast of Acapulco. According to the National Hurricane Center (NHC), maximum sustained winds were 90 mph at landfall. Given the currently available information, AIR does not expect significant insured losses from Carlotta, the third named storm of the Pacific hurricane season.

“Carlotta was a relatively small hurricane at landfall, with hurricane force winds extending less than 30 miles from the eye,” said Dr. Tim Doggett, principal scientist at AIR Worldwide. “As a result, damaging winds affected only a small portion of the coast.”

During the day on Friday, Carlotta had intensified into a powerful Category 2 hurricane as it moved toward southern Mexico, causing authorities to open emergency shelters and hotel owners to gather up outdoor furniture and other potential sources of flying debris in preparation for the storm.

Reports from Puerto Escondido indicate that trees and billboards were blown down and windows that had not been boarded up were shattered by debris.

According to AIR, the light metal roofs of some commercial buildings were peeled off and more serious structural damage occurred to some informally-built homes. It is estimated that as many as 50% of residential structures are constructed without a building permit; these, however, are also unlikely to be insured.

Dr. Doggett continued, “Once over land, Carlotta’s winds quickly dissipated. By 8:00 am PDT (1500 UTC) on Saturday, the NHC had downgraded Carlotta to a tropical depression. However, heavy rains continue to soak the region. Furthermore, because of weak steering currents, the remnants of Carlotta lingered in the same general area, which amplified the threat of flood and landslides.”

“As of Saturday night, total rainfall amounts of 6 to 9 inches had been reported, with higher amounts likely to have occurred in areas of higher terrain. With additional rainfall that is expected to occur through the weekend, the threat of life-threatening flash floods and landslides will continue. Fortunately, Carlotta impacted a relatively sparsely populated region.”

The storm passed north of Mexico’s largest oil refinery—the 330,000 barrel-per-day facility at Salina Cruz installation—which remained open. No damage has been reported in the resort city of Acapulco.

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Fitch Ratings has affirmed OJSC Rossiya Insurance Company’s (Rossiya) Insurer Financial Strength (IFS) at ‘B-‘ and National IFS ratings at ‘BB-(rus)’ and removed them from Rating Watch Negative (RWN). The Outlook for both ratings is Negative.

The rating actions follow the decision by the Federal Service for Financial Markets (FSFM) to restore Rossiya’s compulsory motor third-party liability (MTPL) insurance licence on 13 June 2012, which was suspended on 6 June 2012. The reason for the suspension was Rossiya’s failure to fulfil one of FSFM’s prescriptions in a timely manner.

The Negative Outlook reflects the agency’s concerns over Rossiya’s liquidity, future financial flexibility and ability to meet its claims obligations, and increased financial and reputational risk following the licence suspension. In Fitch’s view, while Rossiya could overcome the negative effects on its business franchise from the license suspension in the short term, the agency is concerned about the medium-term negative implications for Rossiya’s ability to write new business premiums and fund claims payments.

In addition, Fitch notes that Rossiya remains significantly dependent on support from its shareholder and considers that this episode may have intensified risks relating to the commitment of the shareholder to support Rossiya.

The ratings would be downgraded if Fitch believes the risk of an interruption to Rossiya’s payments has materially increased. This could occur if low volumes of new business premiums were written or support from the shareholder was reduced.

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Nordic insurers will need to make bigger adjustments to their investment portfolios because of the likely requirements of Solvency II, Fitch Ratings says. Equities, which will attract a higher capital charge than short-dated high-grade fixed-income securities, make up 25%-40% of Nordic insurers’ portfolios compared with a European average of 8%.

We have already seen many European insurance companies reducing equity exposure, largely as a result of the financial crisis but also in anticipation of Solvency II. This could have a positive effect on corporate bond issuers – insurance companies represent a major source of demand in the Nordic regions.

Life insurance products with guaranteed returns, which account for two-thirds of life insurance premiums in the Nordic countries, face high capital charges under Solvency II. We do not expect supply to disappear, but we do think that companies will need to adjust to maintain shareholders’ returns – tightly controlling costs and merging to exploit economies of scale.

The effects will not be dramatic in the short term. We think that Nordic insurers are adequately capitalised to meet the more stringent requirements, and we expect any changes in asset allocations or business practices to happen gradually – Solvency II is not expected to come into effect until 2014, with the changes then being phased in to smooth the transition.

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Building on a successful relationship that has already spanned over five-and-a-half-years, Equity Insurance Partnerships (EIP) is pleased to announce the extension of its affinity insurance partnership with first direct, the banking brand which is a member of HSBC Group.

The long-term extension sees EIP continue as the bank’s exclusive provider of motor insurance for its 1.2m customers, administering branded sales and service through its affinity contact centre and online quote and buy channels.

first direct’s CEO, Mark Mullen commented:

 “Over the course of our relationship EIP has demonstrated the level of service that first direct demands for its customers, producing customer satisfaction scores in excess of our incredibly challenging internal benchmarks.” He added: “Their dedicated affinity focus combined with market expertise, in-house insurer capability and compelling customer marketing propositions has delivered significant organic growth of the motor book. We are delighted to be extending our partnership.”

Charles Offord, EIP Managing Director, said this extension was a significant endorsement of EIP’s work as first direct are such a well respected brand, not just in financial services, but in UK commerce: “first direct is an incredible company. They are a multi-award winning business, with customer-centricity in their DNA. They continually raise the bar in service provision and customer experience, so to be in partnership with them means our ethos of customer service has to be spot on. We are hugely proud to be associated with them.”

He added that the extension highlights EIP’s strategy of affinity growth in a number of business sectors: “This partnership complements our existing affinity relationships across motor manufacturing and in financial services – demonstrating EIP’s credentials as an adaptable, agile and diverse affinity solutions provider.”

The contract extension continues EIP’s strong track record of successfully retaining key affinities following the recent renewal of deals with Triumph and Nissan, adding to a partnership portfolio already including Santander, Renault, Honda, Mazda and Silverstone.

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Stronger market returns and continued retirement savings behaviours by employees over the past few years have helped U.S. workers make progress in closing the gap between the amount of money they need to meet their financial needs in retirement and what they are on track to accumulate, according to two new research reports by Aon Hewitt, the global human resource solutions business of Aon.

When factoring in inflation and postretirement medical costs, Aon Hewitt projects employees will need 11 times their final pay in retirement resources, such as company-provided plans and personal savings, to meet their needs in retirement beyond Social Security. Aon Hewitt’s analysis, The Real Deal: 2012 Retirement Income Adequacy at Large Companies, which examined the projected retirement levels of more than 2.2 million employees at 78 large U.S. companies (1), reveals that, on average, full-career contributing employees are on track to accumulate 8.8 times their final pay, leaving a shortfall of 2.2 times pay. This is a slight improvement over 2010 when the shortfall was 2.4 times pay. Employees who rely solely on a defined contribution plan to fund their retirement are making similar progress, reducing their shortfall from 4.3 times pay in 2010 to 3.8 times pay.

According to Aon Hewitt, two main factors contributed to closing the gap: continued savings by employees and strong return on assets. Aon Hewitt’s 2012 Universe Benchmarks report, which analyses the saving and investing habits of more than 3.6 million U.S. employees, shows 76 per cent participated in a defined contribution plan during 2011. While flat recently, this rate remains at a record-high.  Participation among younger workers increased by two percentage points since 2009 to 54 per cent of eligible workers.  In addition, the median annualized participant rate of return from 2009 through 2011 was a substantial 12 per cent.

However, Aon Hewitt’s research shows room for improvement. The average before-tax contribution rate remains nearly unchanged, at 7.2 per cent of pay. As a result, less than 30 per cent of full-career employees are currently “on track” to achieve adequate retirement income. Passive employee behaviour also is at an all-time high, with just 15 per cent of participants initiating a trade in 2011, down from 20 per cent in 2008 and prior years.

“It is encouraging to see that the continued efforts by employers and employees to increase retirement income security may be paying off,” explains Rob Reiskytl, leader of Retirement Plan Strategy and Design at Aon Hewitt. “To further improve results, employers should design their 401(k) plans in a way that harnesses inertia, such as matching at higher rates of savings and combining automatic enrolment with automatic contribution escalation for all employees. Ideal solutions will improve outcomes with little or no increase in employer cost.”

Among factors influencing retirement income adequacy, Aon Hewitt’s research revealed that, not surprisingly employee savings rates have the largest impact. For example, if not covered by a pension plan, an employee who begins saving at age 25 and targets 11 times pay at retirement needs a combined employer and employee contribution rate of 12 per cent to 18 per cent of pay each year (15 per cent on average) to build up adequate retirement income by age 65. This combined contribution rate increases if the employee does not start saving until later in life.

Aon Hewitt’s analysis shows the number of full-career contributors who can retire with sufficient retirement assets increases from 29 per cent to 46 per cent if they increase retirement contributions by as little as 1 per cent each year for five years. For an employee making $40,000 a year, this 1 per cent increase in contribution rates roughly equates to giving up purchasing one cup of coffee a day for a year.

Using Automation to its Full Potential
Aon Hewitt’s research shows that automation tools can have a dramatic impact on saving and investing behaviours. The participation rate among those subject to automatic enrolment is 83 per cent—18 percentage points higher than those employees who are not defaulted. The research shows employers that offer automatic enrolment have 15 per cent more employees on track to meet their needs in retirement than employers that do not offer automatic enrolment. Similarly, 53 per cent of employees who are enrolled in automatic contribution escalation programs are expected to meet their financial needs in retirement, compared to just 26 per cent of those who are not.

While automation has played a strong role in helping employees’ saving behaviours, Aon Hewitt’s research shows it also can be potentially detrimental if it is not leveraged effectively. Employees who are automatically enrolled in their defined contribution plan have an average savings rate of 6.7 per cent, which is a full percentage point below those not subject to automatic enrolment. Additionally, these workers are much more likely to miss out on employer matching contributions. Thirty-nine per cent of automatic enrolees save below the match threshold versus just 25 per cent of other savers.

“Automatically enrolling employees at a higher rate of pay and combining this with automatic contribution escalation can provide a strong foundation for adequate future retirement income,” Patti Balthazor Bjork, Aon Hewitt’s director of Retirement Research.  “Employers also should strongly consider sweeping in eligible non-participants periodically. Other alternatives include quick-enrolment tools and using education and communication opportunities to influence savings levels and highlight the availability of automatic escalation.”

Offering Investment Advisory Services
Aon Hewitt’s analysis shows that strong investment returns can have a positive influence on retirement income adequacy levels. A one per cent difference in average returns over a career and retirement period can result in a two-times-pay difference in retirement resources.

“Employers cannot influence market returns, but they can leverage their scale to reduce investment fees, which can have an impact on employees’ savings over time,” noted Reiskytl. “In addition, more employers are offering an array of investment advisory services like investment advice, managed accounts and pre-mixed portfolios. These tools can improve the diversification and efficiency of participants’ portfolios and help workers invest more effectively with very little effort.”

Aon Hewitt’s research shows that when available, 63 per cent of participants allocate to a premixed portfolio, up from 51 per cent in 2009. Among those who use a premixed portfolio, the average person held 65 per cent of their balance in premixed funds in 2011, up from 56 per cent in 2009.

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Electrical Contractors’ Insurance Company Ltd (ECIC) has opened a new office in Scotland to build on partnerships with brokers and trade associations.

Headed by ECIC’s UK sales manager Sharon Miller, ECIC’s office is located in the Walled Gardens in Penicuik Midlothian, which is a hub for Scottish trade associations.

Other organisations at the same location are the Scottish Electrical Contractors’ Association (SELECT) and the Building and Engineering Services Association Scotland (B&ES).

ECIC provides insurance to members of SELECT as part of an exclusive affinity partnership agreed in March 2011.

The new office, which opened officially in February, enables ECIC to improve contact with Scottish insurance brokers and expand its reputation and profile. Sharon Miller will also be telling brokers and clients about ECIC’s new services including insurance products for an increasing range of contractors and trades people, beyond its core business of electrical contracting firms.

Sharon has more than 25 years’ experience in the Scottish insurance and broker market and is originally from Edinburgh.

Sharon Miller said: “Trust and proximity to clients and brokers are extremely important anywhere, but they are particularly valued in Scotland where contractors have a unique risk profile. Whether they are heating, electrical or roofing contractors, or involved in the painting and decorating trade, contractors have to be flexible, meet high standards and can find themselves travelling long distances between contracts.

“ECIC is owned by a trade association, which makes us focused squarely on contractors in the most people-orientated way possible. This suits Scotland’s market very well.”

In addition to enhancing broker and client relationships through SELECT, the new office brings ECIC closer to other trade associations including the Building and Engineering Services Association Scotland (B&ES), the Electrical Safety Council and the Scottish Electrical Charitable Training Trust (SECTT), which are all located at the same complex at the Bush Estate in Penicuik, Midlothian.

Roger Brown, managing director of ECIC, said: “Sharon Miller is an exceptional ambassador for the company with an excellent understanding of brokers, contractors and their needs in risk and insurance.

“There are ambitious targets for developing ECIC’s brand in Scotland, mainly in partnership with trade associations, so I’m excited that ECIC can enjoy an even closer dialogue with our friends at SELECT, SECTT the B&ES and the Electrical Safety Council.

“It’s a difficult time for contractors across the board, but several significant infrastructure projects in Scotland can be expected to enhance their opportunities. We have developed market-leading products that allow contractors to protect their interests and which are easy to understand and accessible to trades people of all sizes.”

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The European Insurance and Occupational Pensions Authority (EIOPA) published today its biannual report on the financial stability for the insurance and institutions for occupational retirement provision (IORPs) sectors in the European Economic Area (EEA).

The Report states that the majority of insurance companies are well capitalized according to the current regulation (Solvency I). This conclusion is based on the analysis of 20 largest European insurance groups:  by the end of 2011 they were on average capitalized at 200% of required levels. However, their capitalization and profitability are facing now a slightly decreasing trend.

The Report highlights that the insurance sector remains vulnerable to a possible long-lasting low interest rate environment, though the sector would be capable to cope with this challenge for some time. But this situation might look different in case of renewed turmoil, a failure of governments to stabilize their fiscal situations or a disruptive unwinding of currency risk. While the first order effects of such events seem to be limited and are likely to hit only local insurers, the second order effects might hit bigger European insurers.

Despite a number of severe catastrophic events, the European reinsurance market remained relatively stable and solidly capitalized by the end of 2011. In the beginning of 2012 a modest increase in rates has been observed, which can be partly explained by the absence of major loss events in Europe and North America.

In the IORPs sector a trend towards defined contribution schemes continues. At the same time there is a grave evolution in the funding positions of IORPs, especially for such countries where defined benefit schemes are already very widespread. In those countries, most notably the UK and the Netherlands, recovery programmes are run by the respective regulators.

With regard to macroeconomic developments, the Financial Stability Report concludes that the political and economic climate continues to weigh on growth prospects in Europe. Uncertainty over the euro area government debt level and political situation in some EU countries continues to influence markets even after the recently made strong policy responses.

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VFM Services warns insurers to be on the alert over the next couple of months, as it expects fraudulent claims for televisions to rise significantly over the summer period.

Historical data from the firm reveals that in the run up to the last World Cup in 2010, claims for TVs rose by almost a quarter (23%) compared to the three previous months. Of all the TV claims received by VFM during this period, four in ten (39%) claims were not settled or the customer walked away after being challenged by VFM’s conversation management process.

This saved the insurance industry over £165,000 in three months alone, just from those customers trying to fraudulently claim for a new TV.

VFM experts believe that the figure will be the same, if not higher this summer, with the Euro 2012 championship, the Olympics and Paralympics all taking place. It predicts that of all the TV claims it receives in this period; its conversation management technique will highlight almost half as fraudulent, and therefore will not be paid out.

Steve Jackson, Director of Operations at VFM comments: “We saw a marked increase in the overall level of claims for TVs in the run up to the last World Cup, and we believe the level will peak ahead of the Euro 2012 and the Olympics this year.

“We warn insurers to be extra vigilant when settling claims for televisions and other portable media devices as  by their constantly evolving nature, people want to have the latest upgraded model to enjoy. Our experience tells us there are claimants out there who will see if they can get away with defrauding their insurance company to get themselves a bigger and better TV for the summer.”

Damage to TVs and laptops remain among the top items people claim for on their household insurance policies, with TVs being one of the most popular that VFM sees referred to its conversation management process.

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XL Group’s insurance operations has announced that its Political Risk and Trade Credit (PRTC) business has received approval from Lloyd’s to write Political Risk and Trade Credit risks using the Lloyd’s platform via XL Group’s Lloyd’s Syndicate # 1209. XL Group also announced the expansion of its PRTC team with the addition of Mark Houghton as Vice President and Senior Underwriter at its Asia hub in Singapore.

According to Richard Maxwell, XL Group’s global head and chief underwriting officer for PRTC, “As businesses look for new growth opportunities in all parts of the world, we’re looking to support their strategies to ensure that their plans and profitability are not hindered by political unrest, default of payment, embargoes, governmental expropriation, or other situations beyond their control. The ability to write our risks on the Lloyd’s platform expands our existing global underwriting capability and now allows us to serve clients from more than 200 countries across the world. We are delighted to give our clients more flexibility and choice in terms of where to place their risks while relying on the knowledge and experience of our expert underwriting teams.”

Commenting on Mark Houghton’s appointment Mr. Maxwell added, “We aim to become a leading provider of political risk and trade credit services worldwide. To do so we have cultivated a knowledgeable team of professionals such as Mark, who brings 13 years of international banking and trade credit risk management experience specifically in Australasia.  With our underwriting teams working closely together out of New York, London and now Singapore – and with the ability to write Political Risk and Trade Credit on the Lloyd’s platform, we are well situated to address our clients’ needs in all corners of the global marketplace.”

Mark joins XL Group from Standard Chartered Bank in Singapore where he was Director of Trade Credit Insurance Placements. His experience extends across a broad range of product disciplines including origination and relationship management, project finance, trade finance and securitization while previously having held management positions at Sumitomo Mitsui Banking Corporation and National Australia Bank.

Joe Blenkinsopp, Deputy Global Head of the PRTC unit based in London, will assume the role of PRTC Class Underwriter of XL Group’s Lloyd’s Syndicate # 1209 at Lloyd’s of London, managed by XL London Market Ltd.

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Edinburgh is battling a deadly outbreak of Legionnaires’ disease, with the number of confirmed and suspected cases now standing at 51, Scotland’s health minister said Thursday. 

Officials are still trying to track down the source of Scotland’s worst outbreak since the 1980s, which has hit the southwest of the capital, killing a 56-year-old man.

The number of confirmed cases has risen to 24, while a further 27 people are suspected to have the illness, Scottish Health Secretary Nicola Sturgeon told the parliament in Edinburgh.

Of the total 51 people, 14 are being treated in intensive care. Sturgeon warned that more cases are likely to emerge in the coming days.

“Across Europe, outbreaks are not uncommon, with dozens of outbreaks per annum and thousands of cases,” she told lawmakers.

“However, outbreaks of the size we are currently seeing here in Edinburgh are rare in Scotland — the last time we had an outbreak of this scale was, I understand, in the 1980s in Glasgow.”

The disease, caused by the bacteria Legionella, leads to a severe form of pneumonia, which can be fatal.

It is contracted through inhalation of contaminated water droplets and is not known to be transmitted from person to person.

After an initial case came to light a week ago, a second was confirmed on Saturday, and two more on Sunday.

Most outdoor outbreaks of Legionnaires’ are linked to industrial cooling towers, and Sturgeon said action was taken on Sunday and Monday to treat these.

Cooling towers at four sites in the area were “shock dosed” with chemicals to treat bacterial growth, she said.

“The key message within southwest Edinburgh is that the risk to public health is low,” she added.

London, June 7, 2012 (AFP)

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Three-quarters of smartphones in use in the UK are not programmed with a security password – that’s the finding of www.gadget-cover.com, mobile phone and electronic gadget insurance provider.

Gadget-Cover asked 600 customers whether they locked their phone with a password, and the vast majority said no – meaning personal details, banking passwords and other sensitive information and content such as photos could be viewed or snatched.

“Around 10% of people will keep banking or financial passwords on their phones, but around a quarter also store ‘racey’ photos of themselves or their partners on their phones,” said Carmi Korine of www.gadget-cover.com.

“Our research indicates that something like 65% of people finding a lost mobile phone will try to access photos, about a third will try to access banking information – but around half of all mobile phones lost will find their way back to their owners.

“We asked a cross-section of people why they didn’t use a password, and those who didn’t programme a security password gave reasons varying from ‘they didn’t know how’, to ‘what if somebody wanted to try to return the phone but it was locked?’

“Many said that they used their phones so frequently that it was a nuisance having to type in a password every few minutes – but we’d urge people to think very carefully about what they have stored on their phones, whether frequently visited banking sites or racey pictures of themselves or friends, and how they’d feel if that information fell into the hands of one of the 65% of people who try to access information on phones found in cabs, on busses or tables in bars and cafes….”

Gadget-Cover is part of Supercover Insurance, insurer of mobile phones and high-intrinsic-value consumer electronics. Launched in 1995, the company offers theft, loss and damage insurance, as well as up to 3GB gadget content backup, for laptops, PCs, satellite navigation equipment, MP3 players including iPods, and other such communication, storage and gaming equipment.

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Friends Life, the parent company of Friends Provident International, has announced the appointment of James Lai-Hing Tan as General Manager, Asia & Middle East, reporting directly to John van der Wielen, CEO International at Friends Life. Mr Tan will be based in the Hong Kong branch of Friends Provident International and will be responsible for its activities throughout Asia and Middle East.

John van der Wielen, CEO International at Friends Life commented: “This appointment reflects the desire of Friends Life to more closely align the structure of the International Division with our core markets, which is central to our future strategy. Mr Tan speaks three languages, and has worked in several different countries around the world reflecting the diverse geographic make-up of our business.”

James Tan, General Manager, Asia & Middle East at Friends Life commented: “I am excited about joining such a strong team. I am looking forward to using my experience in the insurance and banking industry across the region, to further the business’s development in pursuit of its strategic goals across its core markets.”

Mr Tan, originally from Singapore, has a Master’s Degree in Actuarial Science from Georgia State University and an MBA from the University of California and the National University of Singapore. He has 18 years’ experience in the insurance and banking industry and has worked in the US, Singapore and Hong Kong including seven years as Global Head of Bancassurance at Standard Chartered. His most recent role was as Group Head for AIA’s partner distribution business based in Hong Kong. He speaks English, Mandarin and Cantonese.

The International business of Friends Life Group operates from eight offices across the globe and has over 1,100 employees. It comprises all the non-UK business operations of the Friends Life Group. These include the Luxembourg-based Lombard International Assurance and Friends Provident International that have operations in Luxembourg, Germany, United Arab Emirates, Singapore and Hong Kong.