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Princeton Financial Systems, providing accounting, compliance and reporting solutions to the investment industry, has introduced enhancements to its DVS Publisher Suite that have improved the overall user experience and added functionalities for diagrams with a variable number of data series as well as for layout tables. Princeton Financial Systems’ DVS Publisher Suite 3.4 enables clients to meet all the internal and external reporting requirements for the fund industry by automating and controlling the entire reporting process from data supply and quality testing to production and distribution of boardroom-quality reports.

“At a time when fund composition is becoming more diverse and complex, our clients are facing increased pressure to provide a greater level of transparency in their reporting,” explained Holger Sachs, Head of Development for DVS from Princeton Financial Systems. “We continue to make enhancements to our DVS Publisher Suite with our clients’ day to day challenges in mind. Increased customization and flexibility enables reports to be as unique as our clients.”

The overall user experience has been improved with the implementation of several enhancements that makes day-to-day report activities easier:

– More thorough information for any ValCalc error messages that occur during a report generation or preview;

– Improved report loading speed with minimized memory consumption. The system also provides detailed feedback about the status of report generation and the ability to cancel at any time while still saving the already created reports. The status reports allow system administrators to quickly identify any performance problems;

– Ability to multi-select and format several table cells at the same time;

Also, the latest version includes several enhancements regarding DVS Publisher Suite’s layout table functionality, such as:

–  Ability to have multiple output rows for one detailed data row;

– Ability to alter the settings for cell height and styles on multiple levels, improved control over page break hints regarding orphan/widow control;

Additional functionality has also been added to allow users more flexibility in creating line charts with multiple data series including:

– A variable number of data series can be calculated at runtime;

– Enables users to create, for example, performance comparisons in a fund group;

Additionally, the PDF functionality was enhanced to include:

– Ability to refer to certain pages or page areas in a report (also in Word 2007);

– Support PDF/A report formats;

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The British Insurance Brokers’ Association (BIBA) has launched a Find a BIBA Broker mobile application (app) for iPhones and iPads to help customers locate BIBA members and promote general insurance brokers.

Customers can use the app to search for BIBA members by town, postcode or their current location. They can then either call or email brokers directly or retrieve directions via Google maps.

The new app is an extension of BIBA’s existing online search and Find a Broker helpline which collectively receive more than 400,000 enquiries every year.  These have increased from 220,000 in 2008 because of BIBA’s active campaign to raise the profile of members with national media, consumer and business organisations.

Eric Galbraith, BIBA Chief Executive, said: “With the new signposting government agreement recognising our service as a suitable solution to help customers, we expect enquiries to increase further. It is therefore essential that members ensure that their information held is up to date.”

The app can be downloaded from the App Store on Apple iTunes by searching insurance, insurance broker, BIBA, British Insurance Brokers Association, find a broker or BIBA search. An Android mobile version will follow and BIBA’s existing Find a Broker service can be accessed at www.biba.org.uk or on 0870 950 1790.

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Swiss Re Ltd. secures USD 400 million in natural catastrophe coverage through a newly-formed issuer Mythen Ltd., a flexible programme that allows Swiss Re to cede wind risks in both the United States and Europe to the capital markets. The new programme is the latest in a series of catastrophe bonds that Swiss Re has issued since 1997 and a demonstration of Swiss Re’s commitment to transferring natural catastrophe risk to capital markets.

Mythen Ltd. is an addition to Swiss Re’s existing catastrophe bond programmes which will enable the company to issue multiple bonds over an extended time-frame in a flexible, transparent and efficient way.

Martin Bisping, Head Non-life Risk Transformation at Swiss Re, says: “The transformation of re/insurance risks into an investor-friendly asset class continues to be a cornerstone of our hedging strategy for peak natural catastrophe risks. In order to grant us full flexibility to pursue this approach in the future, and to provide investors with bonds that have innovative and diversifying features, we have created the new Mythen programme as a follow-on to our long-standing Successor programme.”

The Mythen programme, named after the location of Swiss Re’s Zurich headquarters on Mythenquai, will replace the Successor X programme, through which the company received USD 2.4 billion in protection against natural catastrophe events between 2006 and 2012.

Swiss Re sponsored three tranches of notes in the first transaction through the Cayman Islands-registered vehicle Mythen Ltd, obtaining a total of USD 400 million in protection over three years against US hurricanes and European windstorm. Mythen’s innovative structure covers first and second event multi-peril losses.

Matthias Weber, Swiss Re’s Group Chief Underwriting Officer, says:  “Last year was the second most active year ever in terms of insured natural catastrophe losses. This highlights the need for re/insurers to effectively manage their peak exposures and ensure capacity is available. With almost 15 years of expertise in the field of insurance-linked securities, Swiss Re continues to pioneer new catastrophe bond solutions, both for its own book and for clients.”

 Class  Notional amount  Rating  Covered event
 A  USD 50 mln  Ba3 (sf)  US Hurricane (1st event)
 E  USD 100 mln  Ba3 (sf)  US Hurricane (2nd and subsequent)
 H  USD 250 mln  B2 (sf)  Multi-peril (European windstorm/ two US Hurricanes)

The Mythen notes were sold in a private placement pursuant to Rule 144A of the U.S. Securities Act of 1933, as amended, (the “Securities Act”) and have not been, and will not be, registered under the Securities Act or any state securities laws; they may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws.

 

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Spending on DIY has declined to its lowest level in over 15 years amid the continued squeeze on household finances and a subdued housing market, according to research by Lloyds TSB.

Households spent a total of £7.8 billion on DIY in 2011 – equivalent to around £300 per household; the lowest total since records began in 1996 and almost half of the £15.5 billion spent at the peak in 2004. There was a fall of 17% in real terms (i.e. after allowing for inflation) from the total of £9.4 billion spent in 2010.

Significant declines in spending on both DIY tools and materials in 2011

Between 2010 and 2011, real expenditure on tools and equipment for home improvements – ranging from plumbing tools to the garden trimmer – declined by almost a fifth (-19%) from £3.8 billion in 2010 to £3.1 billion in 2011. This is slightly more negative than the 16% (£5.6 billion to £4.7 billion) drop in spending on DIY materials such as paint and plaster.

Overall home maintenance spending down a tenth

Total spending on home maintenance (i.e. DIY and tradesmen’s services) fell by 10% to £14.8bn in 2011 from £16.4bn in 2010. In contrast to the significant fall in DIY spending, expenditure on tradesmen’s services rose by 1% in real terms over the past year from £6.97bn to £7.04bn.

Home maintenance spending has fallen sharply since 2001

Despite the small rise last year, there has been a steady decline in spending on  tradesmen’s services in the past 10 years, which have fallen 40% overall since 2001. Over the same period, real household spending on DIY fell by just over a third (-34%).

The past ten years has been very much a period of two highly differing halves. Between 2001 and 2007, spending on DIY increased by almost a fifth (18%) as the housing market boomed. This was particularly reflected in an 82% rise in spending on tools. Since the peak of the housing market in 2007, the decline in real DIY spending has been dramatic, falling by 44% in real terms.

Households spent 10% more on DIY than on tradesmen in 2011. This is in contrast to a decade ago when homeowners were spending slightly more (1%) on hiring tradesmen than on DIY.

Suren Thiru, Lloyds TSB Housing Economist, commented:

“Consumers have been experiencing the biggest squeeze on their discretionary income for over a year. Couple that with a very subdued housing market, and it is unsurprising that so many are cutting back on home improvements. With economic conditions expected to remain challenging, the current squeeze on spending on both DIY and tradesmen is likely to continue for some time yet.”

Table 1: Real Household Spending on Home Maintenance*, 2001-2011

 

Materials – £bn

Tools – £bn

Total DIY Spending – £bn

Spending on Trades Services – £bn

Total Spending on Home Maintenance (DIY plus Trade Services)  £bn

Ratio of DIY Spending to Spending on Trades Services

2001

8.8

2.9

11.7

11.8

23.5

0.99

2002

9.3

3.5

12.8

11.1

23.8

1.15

2003

9.8

4.2

14.0

10.2

24.2

1.37

2004

11.2

4.2

15.5

9.5

25.0

1.63

2005

10.5

4.5

15.0

9.1

24.2

1.65

2006

9.3

4.9

14.2

9.4

23.6

1.52

2007

8.5

5.3

13.8

8.6

22.4

1.61

2008

8.1

4.7

12.8

7.7

20.5

1.66

2009

6.7

3.8

10.5

7.3

17.8

1.43

2010

5.6

3.8

9.4

6.97

16.4

1.35

2011

4.7

3.1

7.8

7.04

14.8

1.10

% Change 2010-2011

-16%

-19%

-17%

1%

-10%

–

% Change 2001-2011

-47%

6%

-34%

-40%

-37%

–

Sources: Lloyds TSB calculations, ONS

*Household spending figures have been adjusted to allow for inflation by applying the relevant consumer price index.

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On the 3rd of May, French Minister for Culture and Communication Frédéric Mitterrand announced the acquisition by the French State, for the Louvre Museum, of the Pietà with Saint John and Two Angels attributed to Jean Malouel, thanks to AXA’s patronage.

The Pietà with Saint John and Two Angels, probably painted between 1405 and 1410, is exceptional due to its pictorial quality, delicate style and emotional power.

Born in the Duchy of Guelders around 1370-1375, Jean Malouel is one of the most renowned “French primitives”, having spent most of his career in France.

Until now, only two paintings had been attributed to Jean Malouel: the Large Round Pietà, in the collections of the Louvre Museum since 1864, and the impressive Virgin and Child with Angels, acquired in 1987 by the Gemäldegalerie in Berlin.

The AXA Group’s contribution to safeguarding French cultural heritage has amounted to 48.3 million Euros over the last nine years. AXA has enriched public collections with various masterpieces, including the Denial of Saint Peter by Louis or Antoine Le Nain (Louvre Museum), a magnificent Dogon statue (Quai Branly Museum), Nicolas Poussin’s Flight into Egypt (Lyon Museum of Fine Arts) or the earthenware from the Château de Polisy (National Museum of the Renaissance).

The AXA Group, through its AXA Art subsidiary1, is a leading global art insurance specialist, which has been providing for more than 50 years a unique mix of financial and art market expertise to private and institutional art collectors, museums and temporary exhibitions. AXA Art is committed to preserving art treasures, and supports projects aimed at developing new techniques for restoring and conserving important works of art.

“AXA’s commitment to protecting and transmitting cultural heritage is a natural extension of our business as an insurer, which involves not only protecting the individuals over the long term, but also developing their accumulated wealth. Our cultural and heritage philanthropy actions are closely linked to our corporate responsibility. We are again very proud and happy to participate to the acquisition of a national treasure exposed at the Louvre Museum, benefiting to the million visitors of this museum”, said Henri de Castries, Chairman and CEO of AXA.

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Standard & Poor’s Ratings Services raised its long-term counterparty credit and insurer financial strength ratings on Swiss Life’s core operating companies to ‘A-‘ from ‘BBB+’. The long-term counterparty credit ratings on Swiss Life Holding to ‘BBB’ from ‘BBB-‘ has also been raised. The outlooks are stable.

Standard & Poor’s report :

The upgrade of Swiss Life reflects our opinion that Swiss Life has managed to rebuild its financial profile to strong levels, in line with its business profile.

The group has also managed to maintain its capital adequacy according to our criteria in very difficult market conditions, and we expect it to continue to do so in 2012 and 2013. Against our initial base-case assumption, government rates in Switzerland and Germany deteriorated further in 2011. Nonetheless, Swiss Life’s bottom-line profitability in 2011 was in line with our expectations because its efforts to improve cost and risk results continued to bear fruit. Prospective profitability, as measured by market-consistent embedded value (MCEV)-based new business margins, was below our initial expectation, mostly because of lower interest rates. We consider that this was offset by the improved operational efficiency.

We see Swiss Life’s strong capitalization and strong competitive position, particularly in its domestic market, as strengths to the ratings. These positive factors are partly offset by the company’s only good operating performance and its focus on European life insurance markets, which we view as challenging.

The stable outlook reflects our expectation that Swiss Life will continue to improve its operating performance, in terms of both profit from operations and new business margins. It is also based on our expectation that Swiss Life will maintain its strong capitalization and its strong competitive position.

We would consider a negative rating action if Swiss Life failed to meet the following measures in 2012 or 2013:
• Counteract unfavorable investment conditions by further improving margin management and by reducing interest rate dependence, reflected in increasing risk and cost results and in profit from operations and new business margins similar to those stated above;
• Maintain a healthy spread of about 100 basis points between net investment yield and average guaranteed rates, as well as a weighted-average duration mismatch of below 1;
• Conserve group capital adequacy according to our model at least at strong levels, and maintain a healthy regulatory solvency position (including that under the Swiss Solvency Test (SST) regime), both helped by a conservative asset allocation;
• Maintain the proportion of traditional products below 30% of new business production;
• Leverage financial advisory company AWD Holding AG (not rated) to attain at least stable EBIT margins of above 10% and to moderately increase its new business contribution further.
• Keep group fixed charge coverage higher than 5x and a financial leverage ratio lower than 30%.

Based on our criteria and the information currently available to us, we see no potential for a positive rating action in the next two years.

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Cloud computing specialist, iSaaS Technology, has launched a new biometric identification iPhone application for medical experts, to help diminish fraudulent activity during the personal injury claims process. 

The pioneering Corex application – which can be used on an iPhone, iPod or iPad – records biometric evidence, in the form of a photograph taken by the medical expert when examining the claimant.  It then automatically appends the photograph to the medical report, embedded with the date, time and GPS stamps, through cloud synchronisation.

Development of the new application is a major step forward in meeting the challenges set down by the Transport Select Committee’s recommendations for tackling fraud in whiplash and personal injury claims.  According to new figures released by the Association of British Insurers (ABI), the thriving whiplash industry is pushing up the cost of the average motor insurance policy by 20%.  Capturing and recording an image of the claimant during the medical examination process will have a significant impact on the number of fraudulent and over-exaggerated claims.

iSaaS chief technology officer, Dr. David Pearce, explains:  “Until now, doctors have had to accept credit card or photo ID driving licences as proof of identity – which they don’t often have the time or facility to photocopy to keep a permanent record.  These currently accepted forms of proof of identity can also be easily manipulated for fraudulent purposes.”

During a six month proof of concept, insurers that received reports incorporating the new biometric identification of claimants attending a medical interview confirmed that they valued them as robust evidence of proof of identity.  Insurance expert Martin Ward from Green Circle Consulting commented: “We have questioned whether some claimants are

defrauding the system by sending stand-ins to the medical interview in order to try and make fraudulent or over-exaggerated claims.  Now that medical experts can capture photographic evidence of the individual being assessed via the Corex iPhone application, such cases will be exposed and act as a future deterrent to fraudsters”.

Medical experts have equally welcomed the innovation.  Dr Fotiadis, a medico-legal expert in London explained:  “The new iPhone application takes me five seconds to use for each claimant and gives me a simple and reliable method of establishing the identification of the claimant and recording it in my report.  It has already identified a case of incorrect identity.”

Claimant lawyers see this as a positive step in improving the accuracy of medical evidence and welcome the opportunity to cross check the photograph in the medical report with the photo ID they hold on file, supporting SRA compliance and money laundering regulations.  Kieran Magee a Partner at Gorman Hamilton Solicitors said:  “I am in favour of this application and can see it as a great practical tool to assist us in combating fraud. If the claimant refuses to have their photograph taken by the medical expert, I would have to question why? This would lead us to further scrutinise the case – and could result  in us ceasing to act for that particular client.  This will protect honest policy holders from the impact of fraudulent claims”.

The new iPhone app is a free accessory to the Corex Report writing Software. Corex, which has been providing reports since 2004, is based on a template which allows the medical expert to express his or her own words at each and every part of the reporting process.

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Two in five (40 per cent) people planning to retire this year would be happy to work past 65 if they had the chance, according to new research from Prudential.

Prudential’s Class of 2012 study, which looks at the finances and expectations of those planning to retire this year, shows that 48 per cent of men and 32 per cent of women would be happy to continue working past the standard retirement age.

The main motivation for more than two thirds (68 per cent) of this year’s retirees who want to stay in the workforce past 65, is a desire to remain physically healthy and mentally active, while 39 per cent do not like the idea of retiring and just staying at home. More than half (54 per cent) claim that they enjoy working.

However, despite wanting to stay in work, only 13 per would choose to continue to work full-time with their current employer. Nearly half (49 per cent) of those retirees who want to work past 65 years old would prefer to work part-time, either with their current employer or in a new role, in order to strike a better work life balance.

More than one in 10 (11 per cent) of entrepreneurial retirees would consider starting their own business after the age of 65 or earn money from a hobby in order to keep working. Five per cent would work as charity volunteers.

Recent ONS figures show that average retirement ages are rising, with men now retiring at an average age of 64.6, compared with 63.8 in 2004, and women working until 62.3 years compared with 61.2 previously.

Vince Smith-Hughes, retirement expert at Prudential, said:  “There is a new retirement reality taking shape across the UK, with thousands of people actively choosing to work past the traditional retirement age.

“The fact  that so many of this year’s retirees would keep working on a part-time basis is a strong indication that, for many, working is as much about staying young at heart as it is about funding retirement.

“Gradual retirement is an increasing trend among pensioners, whether this means remaining in the same job on a flexible basis or even setting up their own business! Those retiring at 65 will face an average of nineteen years in retirement which makes the financial and social benefits of working for longer an even bigger draw for a new generation of industrious retirees.”

Around the country, those planning to retire this year from the East of England were the most keen to stay part of the workforce with 54 per cent saying that they would choose to work past 65 if they had the option. Half (49 per cent) of Londoners and 45 per cent of people in the South East would also like to continue to work.

However, just 29 per cent of Scots planning on retiring this year would be happy to work past 65 if given the choice, along with 30 per cent of retirees in Wales and in Yorkshire and Humberside, and only 21 per cent of those in the North East.

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While the insurance industry and the Government continue to discuss Britain’s whiplash compensation culture, the AA says it’s now time for the talking to stop and time for reforms to be put in place.

On Wednesday 02 May, Transport Secretary Justine Greening MP and Justice Secretary Kenneth Clarke MP will unveil whiplash injury reforms at a second insurance summit in Whitehall (the first, hosted by the Prime Minister, was at 10 Downing Street in February).

Over the past two years, claims for whiplash injury have contributed to the biggest car insurance premium increases ever recorded by the AA’s benchmark British Insurance Premium Index.  In 2010, the fast-rising premiums recorded by the AA Index prompted a Transport Committee enquiry into car insurance.

Over the two years ending 31st March, the average Shoparound quote for a comprehensive policy rose by nearly 50%.

Simon Douglas, director of AA Insurance, says that there has now been enough talking and hopes that the Summit is the last talking shop.

“I hope that Wednesday’s announcement will see a tight timescale applied to reform of the civil litigation which at present, encourages people to make a claim regardless of how serious their injury is or even if they have not suffered injury at all.  Importantly, we need reforms that clamp down on cold-call claims management and personally injury firms who have contributed to the growth of claims.

“The present dysfunctional system has also spawned a fraudulent multi-million pound ‘cash for crash’ industry.

“Whiplash injury claims cost insurers over £2 billion** last year.  That adds around £90 to the cost of a typical car insurance policy.”

Mr Douglas said that he was disappointed in the slow rate of progress shown in the Transport Committee’s latest report, published in April.

“But I acknowledge that a lot of momentum has built up,” he says.  “Reform can’t come soon enough. It is wrong that injury claims are rising while the number of accidents on Britain’s roads is falling.”

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The Lloyd’s Market Association’s claims team has been named as Claims Team of the Year by the International Association of Claims Professionals (IACP).

This is the first time that the IACP has presented awards and they were made at its 15th annual London conference, held at Lloyd’s last week.

According to IACP, the award recognised the LMA claims team’s role in successfully supporting the Lloyd’s claims community through a period of intense and sustained change and for raising the profile of claims in the London market. The team’s co-ordination of the market’s efforts include ECF- the electronic claims files initiative, and the Claims Transformation Project.

Tim Willcock, head of claims at the LMA, said: “We’re thrilled that our work has been recognised by our peers in this way. It’s been something of a challenging time for the market’s claims professionals over the last few years so I’m delighted that the team’s hard work and dedication has been acknowledged.”

Founded in 1970, the IACP is an insurance industry professional association which provides a global forum for claim professionals to network with their peers, enhance their knowledge while freely exchanging views and ideas. Each year, the organisation holds events in London, New York and a number of other US and European cities.

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Cornish Mutual has used Transactor Global Solutions Limited (TGSL) to provide a new policy administration system to help guide its Members through the insurance buying process.

The Transactor system is an integral part of a major investment by the South West rural insurer Cornish Mutual in a new IT infrastructure.

Ian Blakesley, Chief Technology Officer, TGSL said, “We have a good working relationship with Cornish Mutual and have a sound understanding of their requirements. This new policy administration system is based on very up to date technology, enabling the insurer to be able to offer their Members greater flexibility in the services provided.”

Peter Beaumont, Finance Director at Cornish Mutual said, “As well as ticking all the boxes, TGSL understood our mutual business model and have proved to be very cost-effective. Insurance is a fast-moving industry and we needed to be more responsive and remain ahead of the game when it comes to meeting the changing needs of our Members. It is really exciting to see the opportunities opening up to us to improve the quality of a service we are already very proud of.”

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British insurer Aviva on Monday said chief executive Andrew Moss had bowed to shareholder pressure and waived a pay rise that would have taken his salary above £1 million ($1.6 million, 1.2 million euros). 

Moss was last month awarded a 4.6 per cent increase on his annual salary of £960,000 but Aviva said in a statement that he had decided to decline the hike.

“The (remuneration) committee has accepted Mr Moss’s decision not to accept the salary increase granted to him in 2012,” said Aviva, Britain’s second biggest insurer after Prudential.

The move came after investor group Pensions Investment Research Consultants (Pirc) had called on Aviva shareholders to vote against the group’s executive pay report at an annual general meeting this Thursday.

Just last week, British bank Barclays revealed that almost one third of its shareholders had chosen not to back its annual executive pay awards amid controversy over chief executive Bob Diamond’s huge wage package.  Barclays on Friday said that 32 per cent of shareholders had either voted against or withheld support for the bank’s 2011 remuneration report.

London, April 30, 2012 (AFP)

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The Chartered Insurance Institute (CII) has launched a new insurance competency framework that is available to employers and employees free from the CII website.

The new framework has been developed following extensive consultation with employers and employees.  It enables businesses and individuals across the sector to determine the competencies required by individuals to fulfil roles within their organisation effectively.

The framework has been designed to help meet regulatory compliance requirements by ensuring insurance practitioners attain, and maintain, the required level of competence for the tasks they perform.

Tamsin Mills, director of accreditation services, said:  “All firms within the insurance sector can use the framework, regardless of their area of speciality or location.  The framework is structured around competencies rather than specific job roles, so it allows for the wide variations that exist in job roles from company to company. This means employers can select the competencies that are relevant to their particular circumstances and requirements, and build a specific competency profile for each job role within their organisation.”

“We will continue to develop the framework and the next stage will see the CII’s products and services mapped against the framework. This will allow employers and employees see how our services can be used to meet specific competencies. This is scheduled for introduction in 2013.

To view the framework visit: www.cii.co.uk/competency  Any technical questions regarding the Framework should be directed to accreditation@cii.co.uk .

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Business Bermuda, an organisation working with Bermuda-resident companies and government to develop and promote Bermuda internationally as the jurisdiction of choice, led a business delegation to Paris to represent Bermuda’s fund industry at the annual EuroHedge Summit, 24 – 26 of April. Business Bermuda sponsored a panel session at the major hedge fund event which attracted over 800 international industry leaders who joined to assess the global outlook for the hedge fund industry.

Moderator Greg Wojciechowski, President and Chief Executive Officer of the Bermuda Stock Exchange (“BSX”) was joined by Peter Hughes, Group Managing Director of Apex Fund Services and Director of Emerging Asset Management Ltd, Brian Clavin, Partner at KPMG, Hilmi Unver, Partner at Notz Stucki and Richard Kobler, International Business Development at SMN Investment Services, to discuss “Onshore and Offshore: How Will the Hedge Fund Industry Evolve?” on the panel session.

At the session, the panellists considered the impact of the Alternative Investment Fund Manager’s Directive (“AIFMD”) and the issues facing the industry over the next five years.  With an audience of over 200 attendees, the panel discussed the changing role of offshore jurisdictions, such as Bermuda, in an increasing wave of global regulation and their increasingly important role in the international hedge fund industry.

Brian Clavin, Partner at KPMG, said:

“Despite the ever increasing regulatory wave coming from the EU and US, there is still a strong future for the offshore as well as onshore alternative investment markets.”

The panel proceeded to examine the future of the offshore industry, noting that as the global emphasis shifts towards greater transparency and tighter regulation, which has prompted managers to look at redomiciliation.

Peter Hughes, Group Managing Director of Apex Fund Services and Director of Emerging Asset Management Ltd, added:

 “The global fund industry needs to widen its focus from Europe and the European investor base and shift its gaze to growth markets such as China, India, Sub-Saharan Africa as well as the Islamic Financial markets across the Middle East, Africa and Southeast Asia, which are creating opportunities for Bermuda, as well as the traditional onshore markets.”

Greg Wojciechowski, President and Chief Executive Officer of the BSX, concluded:

“I am grateful to the panellists who joined me this morning in Paris to explore and discuss the future of the alternative investment industry against the backdrop of current global economic and regional regulatory uncertainty. The panel reached the conclusion that despite this uncertainty, well-regulated and respected offshore centres, such as Bermuda, will continue to grow in importance given the anticipated economic growth in other regions of the world.”

At the event, Business Bermuda hosted a booth where conference attendees were able to meet Bermuda’s trade delegation which included Greg Wojciechowski, Peter Hughes as well as Cheryl Packwood, CEO of Business Bermuda, Kieran Loughran, Director at Conyers Dill & Pearman and Belaid Jheengoor, Director at PricewaterhouseCoopers.

Belaid Jheengoor, Director at PricewaterhouseCoopers, commented:

 “I am pleased to note that investors and managers have been approaching the Bermuda booth with significant inquiries about the Bermuda insurance linked fund structures.”

Cheryl Packwood, Chief Executive Officer of Business Bermuda, added:

 “This conference marks the end of an enormously successful trade mission for Business Bermuda to China and Europe where delegates met with government officials and business leaders. Our discussions with conference attendees have emphasised that there is a place in the future for the offshore industry,  and today we heard that Bermuda, as one of the world’s leading offshore financial jurisdictions, is certainly set to increase its role within the global funds industry.”

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Equity Red Star’s home insurance division has forged a partnership with loss adjuster Cunningham Lindsey UK for the next three years to enhance Equity’s service offering to align with key broking partners.

Cunningham Lindsey will now operate a dedicated Equity Claims-branded team from its Cardiff service centre. The new Cunningham Lindsey team partnership operates with Equity’s own Swansea-based property claims team.

Under the new arrangement, Cunningham Lindsey provides claims notifications, handling and management to the point of settlement. In addition, Cunningham Lindsey acts as Equity Red Star’s field loss adjuster for all non-subsidence claims requiring physical inspection.

Peter Gallagher, Claims Director of Equity Red Star said: “This partnership with Cunningham Lindsey is a major boost to our service proposition and will give brokers a lot of confidence in our operation. We’re aiming for faster notifications, faster settlement and all-round improvements to our property claims handling.

 “By working with Cunningham Lindsey we also gain access to a much more extensive supply chain of contractors and replacement goods providers. The relationship builds plenty of capacity into our claims management so that we’ll be better prepared to handle major adverse weather events like flooding or extreme cold.”

Phil McNeilage, CEO, Cunningham Lindsey UK, commented: “We are delighted to have been chosen by Equity Red Star to partner with them in this important strategic relationship. We look forward to working with Equity Red Star and their brokers to provide a market-leading claims service to their customers.”

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People claiming whiplash injuries should not be entitled to compensation unless there is objective evidence that they have suffered injury. This is one of several radical reforms which the ABI today said needs to be considered to reduce the UK’s whiplash epidemic and bring down the costs of motor insurance. Britain’s thriving whiplash industry is now pushing up the cost of the average motor insurance policy by a staggering 20%.

Despite a fall in the number of car crashes, whiplash claims have risen by a third in the last three years. Every year 570,000 people claim for whiplash injuries – enough to fill the London Olympic Stadium seven times over. Last year these claims cost insurers over £2 billion, adding an extra £90 a year to the average annual motor premium of £440.

Speaking at an international whiplash conference in Bristol today, James Dalton, ABI’s Head of Motor and Liability said:

“If whiplash was an Olympic sport, the UK would be gold medallists. The fact that whiplash is virtually impossible to disprove means that for too many it has become the fraud of choice, often aided and abetted by ambulance-chasing lawyers and claims management firms”.

Outlining ideas for radical reform, James Dalton added:

“The crackdown on our whiplash epidemic has started with the Government’s reform of civil litigation which will reduce the scope for ‘have a go’ claims. But we also need to consider radical action if we are to get a grip on whiplash, such as:

– A system where whiplash claimants receive no compensation for alleged pain and suffering (general damages) unless there is objective medical evidence of injury.

– Capping or reducing the level of damages for whiplash claims.

– Having a panel of independent doctors to assess whiplash claims, rather than the claimants GP.

– Greater use of bio-mechanical evidence that might enable the introduction of a speed threshold under which there would be a presumption that whiplash has not occurred.

“Only by thinking big and bold can we reduce the whiplash problem and the costs of motor insurance.”

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In-force group risk premiums rose by 2.9% in 2011, reversing the negative trend of the past two years according to Group Watch 2012 report, which Swiss Re releases today. In-force sums assured across all product lines increased and there was growth in key areas, most noticeably “flex” and voluntary cover. The report, which also analyses views on key issues from all major product providers and intermediary firms, highlights changing employer roles, regulatory changes and the implementation of auto-enrolment as influencing factors on the sector in 2012 and 2013.

Positive Premium Growth in 2011

Swiss Re’s Group Watch 2012 report has returned a mostly positive view of the group risk market with the key finding that the negative trend of the past two years in group risk premiums has been reversed. 2011 saw premium growth of 2.9% compared to a fall of 7.7% in 2009 and 1.8% in 2010.

“It is good to see market growth again after two very difficult years of continuing financial pressures on businesses,” says the report’s author, Technical Manager, Ron Wheatcroft. “However, the group risk market continues to be tough with pressures on employers to control or reduce their costs.”

All three main product areas surveyed, death benefits, long-term disability and critical illness premiums rose in 2011. Critical illness premiums grew 9.4%; premiums for death benefits were up 4.1%; and, long-term disability saw a marginal growth of 0.1%.

Shifting role of employers

The report highlights the gradual shift in the role of employers and the impact this change is having on members purchasing additional cover. The data show that premiums for long-term disability income “flex” benefits increased by 42.3%. “Flex” or voluntary cover is now 10% of total in-force premiums.

Wheatcroft says: “the growth of ‘flex’ and voluntary cover may be an indicator of a gradual change in the role of the employer from benefit provider to facilitator as businesses seek ways of sharing costs and providing greater employee choice.”

Auto-enrolment as opportunity

Looking to the likely issues and opportunities for 2012 and 2013, one big challenge for group risk will be the consequences of the beginning, for larger employers, of auto-enrolment into qualifying pension schemes.
Russell Higginbotham, Swiss Re’s UK CEO, says: “With auto-enrolment we may see some existing risk schemes grow as employees who are not currently pension scheme members are enrolled. This will have varying effects on scheme costs depending on the additional take up of pension provision. It is imperative that we make the implementation of this change as simple as possible for employers and employees alike.”

Growth in the sector is a positive sign that group risk cover is continuing to play an effective role in addressing the Life Assurance and Income Protection Gaps. The report found that group life schemes currently provide 40% of all insured death benefits in-force in the UK, while group long-term disability income schemes have increased their share from 70% to 75% of all insured cover since 2002.

“As the welfare state withdraws from universal provision, the importance of the ongoing role of the private sector in protection cannot be over-estimated” says Higginbotham. “A robust group risk sector is therefore indispensable, and the growth we are seeing is an encouraging sign for the future.”

In-force premiums for the three product lines for 2009 to 2011:

  Product Type

 2009

2010

2011
  Death benefits

£897,285,169

£918,635,231

£956,074,087
  Long-term disability income

£567,971,284

£517,385,394

£517,995,843
  Critical Illness

£48,393,386

£50,252,281

£55,002,102

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1st Central has significantly ramped up its fight against insurance fraud, to include the formation of a new   29 member strong, cross-business counter fraud team. The dedicated team has been established over the past three months under the management of Glen Marr, who joined 1st Central in December 2011 as Director of Fraud.

Committed to protecting honest policyholders, 1st Central has also embraced the opportunity to work alongside the industry to tackle fraud, and already successfully referred a number of cases to the Insurance Fraud Enforcement Department (IFED), who it is working closely with. Recognising the value of a collaborative industry fraud strategy, the company is seconding its newest recruit to the fraud team to the Insurance Fraud Bureau (IFB) for up to six months. Luke Brennand, will begin his secondment with the IFB in May, undertaking a wide variety of roles including research, analysis and operational development.  1st Central is also represented on the newly formed IFB Technical Board.

Glen Marr, Director of Fraud at 1st Central comments: “We are passionate about driving down the cost of motor insurance for our honest policyholders, and our zero tolerance of fraud supports this business goal.   We’ve moved swiftly on a number of fronts over the past three months to robustly tackle application and claims fraud, and our fraud prevention and detection strategy incorporates industry collaboration.  We look forward to Luke’s secondment and working very closely with the IFB”.

Phil Bird, IFB Director, concludes: “At the heart of the industry’s fight against organised insurance fraud, the IFB welcomes opportunities to exchange knowledge, skills and experience with our partners. The IFB has provided a number of secondment opportunities and continues to host tailored training workshops, as requested by our customers.

“1st Central’s six month secondment will see Luke immersed in everything from handling incoming fraud intelligence to developing live Police operations. We look forward to welcoming Luke to our team in May.”

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Liberty International Underwriters Europe (LIU Europe), part of Liberty Mutual Insurance Group, has appointed Brenda Whelan as senior underwriter – crisis management.

Brenda will underwrite a full range of crisis management covers, including kidnap and ransom, product recall and contaminated products.

Brenda brings 14 years’ experience to her new position having held liability underwriting as well as crisis management roles in the London insurance market and in Ireland. She will be based in LIU’s London head office with immediate effect, reporting directly to Julie Ross, vice president for crisis management.

Commenting on Brenda’s appointment, Sean Rocks, CEO for LIU Europe, said:

 “Crisis management has been a solid growth area for LIU over the last four years and continues to attract a lot of interest. This business is written in London but can come in from across our European offices and UK regions as well as the US.

 “Brenda’s experience in liability underwriting and crisis management complement our team’s existing strengths. We’re very pleased to have her as part of the team.”

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After discussion with the Treasury, the Equalities Office and the Association of British Insurers (ABI), BIBA has recently agreed that, from April 6th 2012, their members and those of the ABI are now obliged to refer any travel or motor insurance customer that they are unable to insure due to their age, to a provider that can insure them or to a dedicated signposting service.

While clearly an advantage to older customers who have complained for many months at the poor availability of motor and travel insurance, this agreement also helps the insurance market as a whole.  Insurers will be able to retain the ability to price on risk by age while insurance brokers and intermediaries can promote their value to their peers and their customers by acting as a referral point.

BIBA already operates their Find a Broker scheme and this will now be a formal signposting service although it is likely that providers of insurance to the older age groups will no doubt be looking to market their services directly to the big players.

From a risk perspective, insurers will no doubt be watching with interest, and possibly trepidation, to see whether their retail schemes see a sudden spike in sales to the elderly, referred by more risk-averse providers. At that point, there may be a need for some speedy risk management and possible re-alignment of target market.

However, many insurance providers are reliant upon a consistent mix of risk to support their pricing models, and cross-subsidisation by age means that any change in the age risk needs to be monitored. The aggregator market has shown that greater segmentation by age, in particular in younger age groups, reduces premiums and that the supply of product to older customers may reduce wherever insurers have the choice to participate. Ironically, enforced signposting and commissionable referral may reduce off-the-shelf availability and further drive older customers to more specialist providers and possibly higher premiums.

As part of the Collinson Insurance Group, we have a number of travel insurance brands, including InsureforAll, Club Direct and Columbus Direct, that cover customers of any age looking for single trip insurance. Our belief is that, wherever possible, customers should be given the choice to take out the cover they need but at the right price for the risk.

Greg Lawson, Head of Retail at Columbus Direct

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