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Global business processor Xchanging has invested in a major upgrade of the mainframe platform at the heart of the London market Bureau.

The IBM z114 machine purchased is the very latest mainframe available from IBM and the London market is the first place in the world the model has been brought into service.

The new mainframe improves storage capacity, backup and speed of Bureau operations. The proactive step also improves processing capacity to provide for increased volumes of transactions.

The upgrade has been undertaken by Xchanging as part of its commitment to deliver high quality, high availability services to the London Insurance Market. Implementation took place over the weekend of the 10th and 11th of December. This was achieved without incident and services resumed as normal on Monday morning.

Max Pell, managing director, UK Insurance Sector said: “The existing Bureau was based on ageing technology so Xchanging has made a substantial investment to secure the latest and best solution available for the market. Xchanging has worked closely with IBM to future proof the Bureau and provide lasting benefit to the market.”

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Let property specialist PropertyRisks is heading west to strengthen its agency network with the appointment of Sally Breeze as a business development executive.  Based in Wales, Sally’s brief is to build agency partnerships in Wales and the South West.

Sally, whose business career began in public relations, made the transition into the financial sector becoming a Lloyds of London broker with the Willis Group, where she specialised in large multi-national property packages.  A move back to her native Wales saw her joining brokers Marsh and then insurer Allianz to handle business development before joining the Electrical Contractors’ Insurance Company in 2006.

Having focused its principal sales efforts in the south and south east of England while investing in infrastructure and IT capabilities, PropertyRisks has now embarked on a full-scale nationwide sales drive.  The appointment of Sally to head up business development in Wales and the South West represents a key element in the company’s growth strategy.

Commenting on her role, Sally says:  “The let-property environment is so dynamic at the moment that it is a fantastic market to be working in.  It is so important that agents are able to offer a full service to their landlords and tenants, including risk management advice and access to insurance protection and with PropertyRisks there is the opportunity to develop the added-value agent partnerships that have formed its business model.  The business development role is all about building meaningful business relationships and dealing with people, which is something I enjoy.”

Head of PropertyRisks, Nigel Atkinson, says:  “Sally has a wide range of expertise to bring to the role, not least excellent interpersonal skills which is very important for the type of relationship we aim to build with our agents.  We have built our proposition on the fact that we become the referencing and insurance arm of our clients so it is important that our business development team is able to build a total rapport with the agents we work with.”

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Just a short stroll from Holyrood Park lies Dick Place, Scotland’s most expensive residential street ­with an average price of £1,506,000, according to latest research from Bank of Scotland.

As the political and financial capital of Scotland it is not surprising that thirteen of the twenty most expensive streets are in Edinburgh. Some of the other priciest addresses in the capital are Ann Street with an average property price of £1,188,000, Kinellan Road (£992,000) and Spylaw Bank Road (£984,000). [See Table 1]

Seven of Edinburgh’s top addresses are in the EH3 and EH4 postal districts, including the New Town area and the West End which contains the financial district.

After Dick Place, the two most expensive streets in Scotland lie on the west side of Aberdeen city; Rubislaw Den South (£1,430,000) and Rubislaw Den North (£1,190,000).

Glasgow’s most expensive streets are Burnside Road (£974,000) and Bowmore Crescent (£908,000). Both are south of the city.

Outside Scotland’s three major cities the most expensive homes are on Queens Crescent in Auchterarder (£1,188,000). Set in Perthshire it is within striking distance of the West Coast as well as the world famous Gleneagles Golf Course.

Nitesh Patel, economist at the Bank of Scotland, commented:

“Scotland’s most expensive residential streets are concentrated around the three leading cities of Edinburgh, Glasgow and Aberdeen. The majority are located in the capital around the New Town and the West End, in close proximity to the Scottish Parliament and the financial district. “

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According to recent research by uSwitch.com, less than half of Brits (47%) are feeling confident about the new year and what it holds for them – just 3% are feeling very confident :

– No reason to celebrate: nearly four in ten people (39%) will be financially worse off next year – for over a quarter of people (27%) things will remain tough in 2012

– Disappearing act: almost half (49%) will see their disposable income reduce – a further one in ten (10%) will see it disappear completely in 2012

– Long list of woes: more than three quarters of consumers (76%) are worried about the rising cost of living while 63% are concerned about household bills – half (50%) feel less financially well off than before

– Last of the big spenders: the main priorities for consumers in 2012 will be saving money (45%) and clearing debt (42%)

Consumers are expecting a tough 2012 as the reality of another year of price hikes, pay freezes and austerity measures bites deep. Less than half of Brits (47%) are feeling confident about what the new year holds for them personally, and they aren’t expecting things to be any better for the country – just 15% feel confident about the UK’s outlook.

After seeing the cost of living soar this year, over a quarter (27%) feel that things will remain tough in 2012 – a further four in ten (39%) face the new year knowing that they will be financially worse off[2]. Almost half (49%) will see their disposable income reduce – 17% say it will be cut dramatically. A further 13% will have no disposable income for another year while one in ten (10%) will see their disposable income disappear completely in 2012.

With a long list of concerns, there will be little to celebrate on 31st December for many consumers. More than three quarters (76%) are worried about the rising cost of living, while almost two thirds (63%) are concerned about household bills. The financial squeeze of the last year has taken its toll with half of consumers (50%) feeling less financially well off than before.

People are also worried about the unknown as they head into the New Year. Almost a quarter are worried about the uncertainty over interest rates (24%) while job security is a worry for 25% and 23% are concerned about their current level of debt.

With consumers already struggling to make ends meet, it’s likely 2012 will be a very frugal year as consumers prioritise clearing debt (42%) and saving money (45%). Few will be splashing the cash next year on big ticket items such as a car (5%) or a house (6%). Less than three in ten (29%) are putting a holiday at the top of their list for the next year. And in a further show of lack of confidence, just 2% of people will be looking to borrow more against their home to improve it.

Michael Ossei, personal finance expert at uSwitch.com, says: “2012 looks set to be another difficult year with consumers already geared up to cut back, curtail spending and try to clear outstanding debt. Instead of the fresh start many were hoping for, 1st January may just signal the start of yet another tough and frugal year.

“With disposable income being squeezed, the New Year is a great time to get household finances in order to try to start the next year in the best financial shape possible. Taking control of your budget, stripping down living costs and making sure you’re not paying too much for your household bills will free up more disposable income and potentially allow you to save for the future too.”

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Over 15 million Brits worry about their finances every single day, more than other issues such as health, jobs and relationships, according to research from MoneySupermarket.com.

The comparison site revealed of those who feel stress on a daily basis, a quarter (23 per cent) say their future financial situation is the main cause, followed by health (22 per cent) and current personal finances (21 per cent). A smaller number were stressed about their job (20 per cent) and relationship with their partner or family (8 and 6 per cent respectively).

A separate poll of nearly 10,000 respondents also found the main impact on consumers personal finances in 2011 was high petrol prices (42 per cent), followed by rising bills (21 per cent) and debts (17 per cent).

Kevin Mountford, Head of Banking at MoneySupermarket, said: “It’s not surprising that people blame financial anxiety as a top cause of stress given the difficult economic environment and the rising cost of living, and we can expect next year’s outlook to be just as tough, if not tougher. If you are in a position where you are worrying about your finances you should do everything possible to try and relieve this – there are ways to take control of your finances and reduce the worry they can cause.”

Increased stress expected in 2012

The research also asked Brits whether they think their financial stresses will increase in 2012, and an overwhelming 76 per cent believe it will – the majority blaming the rising cost of living as a key factor in making their stress worse. Seven per cent think a squeeze on their benefits next year would cause an increase in their financial stress, while six per cent are worried about mortgage repayments if the Bank of England Base Rate increases next year.

Taking control of your finances

Overall, nearly half of Brits (46 per cent) think they could take better care of their finances, but over a third (35 per cent) of these don’t know how they could save more money. Nearly one in three (29 per cent) simply can’t be bothered spending the time to research the best options, and 18 per cent blame lack of time as a factor stopping them taking control and sorting out their finances. A further 18 per cent do not understand their finances or know what the best options are for their needs. When asked how long it took before they got bored or frustrated with their finances, 16 per cent said it was within the first ten minutes.

Kevin Mountford, continued: “Taking time out to review your finances and switching to a better product for your needs really could make all the difference and provide a welcome boost to your finances in the New Year. And it’s really much simpler and quicker than you think.

“For those who are worried about their finances, it is vital to tackle the issue head on.  Although apathy, lack of time and knowledge are some of the reasons for not taking control of the situation, it really is worthwhile sitting down and seeing where savings can be made.  Using a comparison site such as MoneySupermarket to research and shop around to help switch to a better deal can make significant savings, without a change of lifestyle. By checking what deal you are currently being offered and comparing it to other products, it can help put some money back into your pocket, giving you a head start for the New Year. If you are in a position where you don’t know where to turn, then seek help from one of the free debt advice charities, who may be able to help.”

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New research on behalf of car insurance experts at Confused.com has revealed that 51% of drivers do not know the legal alcohol limit. Confused.com also found that 31% of drivers are unaware that other factors such as weight, stress levels, gender, whether you have eaten recently and age means alcohol can affect individuals differently.

Tragically, 250 people were killed and 1,230 were seriously injured on British roads in 2010 by drivers over the drink drive limit. The truth is, 51% of drivers don’t know what the UK legal drink drive limit equates to in terms of alcoholic beverage and quantity.

Rebecca Clough, Head of Campaigns and Communication at alcohol education charity Drinkaware, says: “Even small amounts of alcohol can affect your ability to drive. So the only safe advice is to avoid drinking if you are driving. If you are planning to drink when you go out, make alternative arrangements like choosing a ‘designated driver’ from your group of friends, plan your journey home by public transport or use a licensed taxi. For the facts about alcohol and driving, visit drinkaware.co.uk”

In fact 13% of people have admitted to feeling tipsy when driving and 20% of people would be willing to chance drink driving.

Shockingly 44% of people know someone who has been caught drink driving. 5% of drivers polled have themselves been caught drink driving and men have been caught more frequently than women.

In addition to the devastating consequences drink driving can have, Confused.com has revealed that a conviction adds up to 42% on a car insurance premium in the first year. Over five years it could cost an extra £ £948.86 in premiums.

Gareth Kloet, Head of Car Insurance says “My advice is to not drink at all if driving. Without taking into account the devastating toll paid in terms of injury, death, a driving ban or prison time, a drink-driving offence can cause a driver’s premium to increase or prevent them from being able to obtain insurance at all. There is no fool proof way of drinking and staying under the limit. The drink driving limit could be deemed as a myth because alcohol affects everyone very differently.”

“If you do decide to drink and drive you are risking your life as well as others. Research shows that even very small amounts of alcohol significantly increase reaction times and therefore your risk of crashing [3]. Take the safe option and either not drink or leave the car at home.”

Confused.com is reminding drivers a conviction for drink driving also means:

– The cost of your car insurance will increase significantly

– If you drive for work, your employer will see your conviction when you have to produce your licence

– You may have trouble getting permission to travel into countries like the USA.

Source : Confused.com

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The majority of towns and cities across Scotland are affordable for first-time buyers, according to the latest Bank of Scotland First-Time Buyer Review.

The average house price paid by a first-time buyer in November 2011 was affordable for someone on average earnings – based on the ratio of the average house price to earnings being below the long-term average of 4.0 – in 77% of all local authority districts (LADs) in Scotland. This compares with just 31% at the peak of the housing market in 2007.

Nonetheless the number of FTBs continues to decline…

Notwithstanding better affordability, Bank of Scotland estimates that there were around 17,000 first-time buyers in Scotland in 2011; the lowest annual total since 1976, 4% lower than in 2010 and less than half the recent peak of 39,100 in 2006.

…with the average deposit at £22,396

Much of the fall in the number of FTBs in recent years can be explained by the need to put down a bigger deposit. The average FTB deposit in the first eleven months of 2011 was £22,396.  Whilst this was 9% (£2,120) lower than in 2010 (£24,516), it compares with £12,794 in 2007.  As a proportion of the purchase price, the average deposit has increased from 10% in 2007 to 21% in 2011.

South Ayrshire is the most affordable area in Scotland and the UK for a FTB

South Ayrshire is the most affordable LAD in Scotland with an average property price that is just over two and a half times (2.65) gross average annual earnings, followed by Renfrewshire (2.88) and North Ayrshire (2.94). Seven of the ten most affordable LADs for a FTB across the UK are in Scotland with South Ayrshire the most affordable area in the UK as well as Scotland.

Scotland is the sixth most affordable UK region for FTBs

The proportion of affordable Scottish LADs is the sixth highest among the twelve UK regions and is also close to double the UK average (44%). The North East of England is the only UK region where all LADs are affordable for FTBs. In contrast, London is the only region with no affordable areas. 

Over a fifth more FTBs will be required to pay stamp duty in 2012

An estimated 99% of FTBs in Scotland were exempt from paying stamp duty in 2011. Nearly a quarter of FTBs did not pay any stamp duty as a consequence of the temporary increase in the starting threshold for FTBs from £125,000 to £250,000. On this basis, 23% more FTBs – and 24% in total – will be required to pay stamp duty once this concession for those trying to getting onto the property ladder for the first time ends in March 2012.

Nitesh Patel, housing economist at Bank of Scotland, commented:

“Housing affordability for those looking to get onto the property ladder for the first time has improved significantly over recent years, largely as a consequence of the decline in house prices since 2007. As a result, more than three-quarters of towns and cities across Scotland are affordable for first-time buyers compared with less than one-third at the peak of the housing market in 2007. Seven of the ten most affordable areas for first-time buyers across the UK are in Scotland.

“Nevertheless, conditions for potential first-time buyers remain tough, as highlighted by the low numbers of people buying their first property. Difficulties raising the necessary deposit and concerns over the economic climate are preventing many from entering the market.”

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Major Japanese insurer Tokio Marine Holdings said Wednesday it will buy US-based Delphi Financial Group for $2.66 million in a bid to expand its global reach.   

Tokio Marine said the deal should increase its profit and operations, after having already purchased insurers in key markets including the United States, Britain, India, China and Brazil.    The purchase will further diversify income for the Japanese firm, which will generate 46 percent of its sales from foreign markets with Delphi as a subsidiary.

The company hopes to complete the deal in the April-June quarter of 2012, pending regulatory approval.

Tokyo, Dec 21, 2011 (AFP)

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The government’s plan to introduce employment tribunal fees reveals a lack of consultation on access to justice.

Proposals announced by the Ministry of Justice (MoJ) to charge individuals fees of up to £2000 or more to bring employment tribunal cases will not achieve a reduction in tribunal hearings but will increase claims costs for legal expenses insurers according to Arc Legal Assistance (Arc Legal) who is calling on the government to rethink its approach.

The MoJ has heralded its proposals to charge a fee to individuals to use the tribunal service as a way of reducing the cost burden on taxpayers and to relieve the pressure on businesses facing unnecessary claims.  However, as the majority of these cases are being funded by before the event legal expenses or trade unions, Arc Legal says such a move will be ineffective and is at odds with the government’s support for legal expenses provision to improve access to justice.

Commenting on the plan Richard Finan, Director of Arc Legal, said: “The move shows a lack of joined up thinking by government. While encouraging the use of low cost add-on Before the Event Legal Expenses as a viable alternative to funding access to justice, they are now looking to bring in plans that will increase costs for the insurers underwriting these products.”

“Our solicitor panel already undertakes a rigorous assessment of the prospects of success of these cases and as a result we are already actively policing employment tribunal claims to prevent unnecessary cases reaching tribunal hearings. Legislation, such as the pending increase in the qualification period for unfair dismissal claims, is a more effective tool to prevent abuse of the tribunal system.”

“It will be incumbent on insurers to look at ways to reduce the impact of such a fee on the cost of cover. This could be through changes in cover or exclusions rather than increase in premiums and as such may limit rather than improve access to justice.”

Source : ARC Legal Assistance

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AEGIS London, the UK-based subsidiary of AEGIS (Associated Electric & Gas Insurance Services Limited), has appointed Michael Onslow to its board as a Non-Executive Director.

Michael Onslow has had a long career in the energy sector and the broader insurance industry, starting out as an energy underwriter at Sturge Holding (Lloyd’s Syndicate 206) before moving on to London & Edinburgh Insurance Company, also to underwrite energy risks. In 2000 he jointly started Houston Casualty Company – London Branch, soon becoming Head of Underwriting. Michael was also Syndicate Underwriter of HCC Syndicates 4040/4141 and at his retirement in 2011 held the positions of Director / Chief Underwriting Officer of HCC International Insurance Company with overall responsibility for underwriting, reinsurance, claims and aggregations across the company.

Commenting on Michael Onslow’s appointment, Stuart Davies, Managing Director of AEGIS London, said: “Michael has earned huge respect from the market for his expertise in the energy sector while he also brings a wealth of experience and advice across the broad spectrum of classes that we now underwrite at AEGIS London. His reputation as an astute purchaser of reinsurance will be an additional asset to us.

“Our ability to attract such a high calibre of talent onto our board says a great deal about the successful evolution of AEGIS London into a profitable, well regarded insurance operation and I look forward to working with Michael as we continue to grow and shape the business.”

Source : AEGIS London

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AXA announces the closure of the Denplan sale to Simplyhealth Group for GBP115 million on a debt free cash free basis.

After a pre-disposal exceptional dividend of £30m (ca. Euro 35m) and a capital release of £6m (ca. Euro 7m) total cash proceeds to AXA are £151m (ca. Euro 179m).  AXA acquired Denplan, as part of the Guardian Royal Exchange acquisition in 1999, and over the years, has developed the business into the leading provider of dental payment plans, with an unparalleled client base and distribution network.

In 2010, following the sale of the traditional life and pensions business, AXA refocused its UK operations in four core areas – personal and commercial insurance, wealth management and healthcare, all of which are demonstrating strong progress. AXA’s strategy for its healthcare business will in future focus on private medical insurance and associated medical services to individuals and businesses. To enhance this offering, AXA expects to complete the acquisition of Health-on-Line during the first quarter of 2012, providing additional distribution of private medical insurance propositions to individuals, small and medium sized businesses.

Commenting on the transaction, Paul Evans, Group CEO of AXA UK and Ireland said:

 “The sale of Denplan allows us to focus our resources on the ongoing development of our extremely successful private healthcare business. We anticipate AXA PPP healthcare will be significantly strengthened by the expected acquisition of Health-on-Line.”

Source : AXA

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Late last week, winter storm Joachim developed over the Atlantic and became a severe extratropical cyclone over Western Europe. With a central pressure that reached as low as 963.8 mb and wind gusts exceeding 150 km/h, the storm’s strength was akin to that of a weak hurricane. Joachim’s warm front carried warm and moist air into Europe, causing heavy rain and snow in combination with high winds. The storm caused power outages and travel disruption in France, Germany, and Switzerland.

 “On the evening of the 15th, the storm entered the English Channel and traveled quickly between the UK and France. As with most cyclones in the northern hemisphere, Joachim’s strongest winds were on the south, or right-hand, side of the track, meaning damage in the UK was very limited,” said Dr. Gerhard Zuba, senior principal scientist at AIR Worldwide. “ France experienced strong winds over much of the country. Twenty-four hour rainfall accumulations exceeded 50 mm in some regions, according to Météo-France.”

Joachim caused widespread power outages in northern and western France, with some 300,000 households losing electricity. Coastal flooding was reported in several coastal departments, including Gironde, Charente-Maritime, Vendee, Loire-Atlantique, Morbihan, and Finistère.

Dr. Zuba continued, “The region affected by Joachim is similar to that of winter storm Xynthia in 2010, although Joachim’s wind speeds are generally lower, Xynthia’s arrival along France’s central Atlantic coast coincided with high tide, causing violent waves that overtopped sea walls and washed away roads and houses. Wind damage from Xynthia was not the primary source of losses to property. Likewise, at Joachim’s recorded wind speeds, wind damage to well-constructed buildings is likely to be nonstructural in nature, typically restricted to roofs and windows, or caused by toppled trees.”

There have been no reports of substantial damage to property, and AIR does not currently expect significant insured losses from winter storm Joachim.

According to AIR, the center of the storm moved into Belgium and then Germany on the morning of the 16th, bringing gale-force winds and heavy precipitation to wide swaths of northwestern Europe. In the mountains of Switzerland and Austria, Joachim brought welcome snowfall to Alpine resorts after an unseasonably dry start to the ski season. Recorded wind gusts in Switzerland exceeded 170 km/h in some mountainous regions.

Source : AIR Worldwide

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Bollington Insurance Brokers has announced the launch of a graduate and school leaver training scheme, aimed at ambitious individuals interested in embarking on a career in insurance.  

This follows the success of three long-standing employees, who have recently achieved the advanced ACII accreditation through the Bollington Academy.

In recognition of their achievement Kelly Nadin, Simon Ryan and Joanna Taylor were recently presented with awards at the Bollington Annual Communications Day by former England and British Lions Rugby player Dean Richards (photo available on request).

The Bollington Academy was launched as a training and development framework, covering technical insurance and management development to ensure internal talent could match the requirements of the fast growing business.

Having successfully trained over 100 employees through the CII programme over the last three years, Bollington has expanded the Bollington Academy to provide a full training scheme, offering technical insurance training and hands-on experience within the business.

Bollington chairman, Paul Moors commented: “Both Bob Gratton, our underwriting director, and I benefited greatly from the former Sun Alliance Professional Trainee scheme when we commenced our careers. We now want to attract young people from school and from university into the industry through our Grow Our Own initiative which we have implemented. The best of our young people go on to complete premier qualifications such as the ACII to become the new generation of managers and experts in our businesses.”

The Training scheme will also be promoted at schools, colleges and universities.

Source : Bollington

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Lloyds Spending Power Report 9 for November 2011 :

– Spending power growth dropped to its lowest level this year in November, due to a combination of weak income growth and increases in the cost of essential items.

– Discretionary spending power growth, before inflation, slowed to 1.3% in November. This was the weakest growth in eleven months and the largest monthly fall since the series started (June ’10).

– The fall in spending power was driven by a sharp fall in income growth and rising spending on essentials. Incomes grew by only 1.9% in the year to November, while spending on essentials rose by 3.9% in the same period.

– This means consumers have the equivalent of around £20 less available per month for discretionary spending, as in real terms spending power has contracted by 1.8%, after inflation.

– The fall came despite consumers cutting back on essentials – either by trading down or by reducing the quantity bought.

– Consumer negativity around the country’s financial and employment situation grew, with the number believing these are not at all good at its highest level since the survey began (Nov ’10).

– Unsurprisingly, almost two fifths of consumers are looking to cut back on their spending this Christmas. A quarter will be relying on savings to fund their spending, and over a third will be turning to credit cards.

Discretionary spending power shrinks just before Christmas

The squeeze on consumers worsened just one month before Christmas, as discretionary spending power growth slowed to 1.3% in November, down from 3.2% in October, according to the latest Lloyds TSB Spending Power Report. This latest fall leaves consumers with around £20 a month less for their discretionary spending.

The sharp contraction in spending power is the result of weak income growth coupled with the rising cost of essentials. Income growth slowed dramatically this month, growing by 1.9% compared with 3.3% in October, well below current levels of inflation. The rising cost of essentials was also a factor, but with increases in spending on essentials remaining below their rate of inflation, it is clear that consumers are trying to limit the impact of inflation on their finances.

Source : Lloyds TSB

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The first Lloyds TSB Homemovers Review tracks conditions for those already in the housing market.

The housing affordability measure for second steppers – those people still living in their first home but looking to take their next step up the property ladder – is calculated as the average price for a typical second stepper home adjusted for the equity position from their current home as a ratio of average earnings.

The calculation is based on a single income and is, therefore, conservative. The review is based on data from the Halifax house price database, the Council of Mortgage Lenders, the Office for National Statistics and the Bank of England.

Home affordability for second steppers – those people still living in their first home but looking to take their next step up the property ladder – is at its least favourable level for over a quarter of a century, according to the new Lloyds TSB Homemovers Review.

The Lloyds TSB second stepper housing affordability measure – calculated as the average price of a typical second stepper home1 less their current equity position2 as a ratio of average earnings – stood at 5.2 times gross annual average earnings in October 2011; the highest ratio since records began in 1987. This ratio has nearly doubled over the past decade from 3.0 in 2001 and is significantly above the long-run average of 3.3.

Decline in second stepper affordability driven by falling house prices…
The deterioration in affordability for second steppers over recent years has been driven by the decline in their level of equity as a consequence of the drop in house prices since 2007. The average price paid by a first-time buyer (FTB) has fallen by 23% since the peak of the market in 20073.

…leading to a £10,000 equity shortfall
Lloyds TSB research4 found that first-time buyers intend to stay in their first home for an average of four years. On this basis, many potential second steppers in 2011 would have bought their first home at the peak of the market on 2007. These homeowners are, on average, estimated to be in a negative equity position of almost £10,000 (£9,9025).

Second stepper affordability now less favourable than for FTBs
As a result of the decline in house prices since 2007, the home affordability ratio for second steppers (5.2) is now less favourable than for those entering the housing market for the first time (4.1). This is in marked contrast to the situation at the peak of the housing market in 2007 when home affordability for second steppers (4.1) was much more favourable than for FTBs (5.7).

South East is the least affordable area for second steppers
The South East is the least affordable UK region for second steppers with an affordability ratio of 7.1, followed by London (6.8). The West Midlands (4.1) and East Midlands (4.2) are the most affordable locations for those in their first home looking to take their next step on the property ladder.

Suren Thiru, housing economist at Lloyds TSB, commented:
“The deterioration in home affordability over the past few years among those looking to take their second step on the property ladder has been significant. This reflects the impact of the decline in house prices since 2007 on the amount of equity those who bought for the first time at the peak of the market have in their homes. As a result, many are faced with a very tough challenge to make their next move on the property ladder.
“The issue of second stepper affordability is a key one in trying get the housing market moving again with the current difficulties in this segment of the market restricting the supply of starter properties for first time buyers as well as preventing many of those who need to move from doing so.”

Source : Lloyds TSB

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Simon Douglas, director of AA Insurance, has welcomed the Department for Transport’s proposed abolition of the need for a paper or electronic motor insurance certificate (announced on Thursday 15 December).

The AA suggested In the Government’s Road Transport ‘Red Tape Challenge’* the requirement for a certificate was amongst the ‘bureaucratic and arcane legislation’ that could be abolished.  The Government has also proposed overhaul of the SORN (or Statutory Off road Notification) for vehicles not on the public highway.

Insurance certificates:

“I’m delighted that the Government has taken notice of public submissions that should make life easier for motorists.  Abolishing paper or electronic certificate will cut administration costs and red tape for drivers and businesses,” Mr Douglas says.

 “An insurance certificate is simply paper evidence that a vehicle is insured and, in practice, it’s rarely needed.  Proof of cover is held by the national Motor Insurance Database (MID) which car owners, the Police and other authorities can readily access.”

Existence of a certificate doesn’t prove that a car is insured, as many people who have attempted to defraud their insurer by cancelling direct debit payments have found to their cost: police ignore the certificate and instead check with the MID and the insurer to confirm cover is in place. Similarly, a forged certificate is also worthless.

However, Mr. Douglas says that there may still be occasions when a certificate is useful, for example when driving outside the UK.  “Proof of cover should be provided by the insurer when required,” he added.

Statutory Off Road Notification (SORN):

AA Insurance also welcomed revision of SORN regulations.  Under new Continuous Insurance Enforcement legislation, every vehicle must be either insured or registered with the DVLA as being off the road.  At present, the SORN, which is free, must be renewed annually.

“This is nonsense for those who, for example, are restoring a car over the long term or live overseas for most of the time and have a vehicle laid up.  I’m glad to see that the SORN will in future be continuous until such time as the car is once again used on the public highway.”

Source : The AA

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Businesses can no longer afford to view IT as a back-office function if they want to achieve maximum return on deals, according to Ernst & Young’s new survey IT as a driver of M&A success.

The study reveals that executives too often place inadequate focus on IT leading to value erosion or even deal failure. In particular, IT is brought in too late or not adequately considered as part of strategic rationale of a deal.

Instead businesses need to view IT as an enabler rather than a cost center to reap the full rewards from their transaction activity, including capturing synergies.

This survey – conducted by mergermarket on behalf of Ernst & Young – examined the views of 220 senior corporate and private equity executives in Europe who were involved in an M&A transaction in the past year (I thought it was over the past 2 or 5 years?). Respondents were asked about where IT fits into the transaction process – including due diligence, pre-deal planning, integration or carve-out processes.

Respondents’ feedback highlighted a direct link between IT issues and cost synergies. More specifically, respondents suggested that IT integration and carve-out processes are often costlier and more complicated than expected.

 “IT is changing how companies carry out their business, how they deliver goods and how they provide services,” says Tony Qui, Partner and leader for IT transaction services at Ernst & Young

LLP. “The biggest issues we see relate to overall information management. This is where companies will see the highest impact on users.”

Findings:

Only 50% of respondents said they typically involve IT in the transaction process compared to almost 80% for finance.

Almost half of respondents (47%) admitted that more detailed due diligence could have prevented value erosion and one in five respondents acknowledged that IT is one of the most challenging factors to deal with in the post-transaction stage.

Other key highlights from the survey include:

– 62% of corporate and 78% of PE respondents say they did not put a significant emphasis on IT as part of their approach to transactions.

– 51% of respondents said their time estimates for IT transactions were either too conservative or too generous.  49% of respondents said the same thing for cost estimates

– 53% of corporate and 60% of PE respondents say they are likely to enlist third-party support post-transaction.

Source : Merger Market

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The Hilton Birmingham Metropole: back in 2006 this was the meeting point for six legal expenses insurance experts and a senior representative from ARAG HQ in Germany. More importantly it was the venue where the decision to launch ARAG in the UK was made.

Headed up by Tony Buss, the six experts now make up the management team at ARAG UK and they officially started operations in the latter half of 2006. Along the way a number of acquisitions were made, including ULR (Knebworth) in 2007 and ATE Ltd and Capita Assistance in 2009.

Fast-forward to today and ARAG is on track to exceed £35 million in premium income by the end of 2011, they are trading with over 1000 brokers and solicitors, have more than 50 staff and an impressive number of policies in the marketplace:

– Over 1.5 million motorists

– 500,000 households

– 100,000 businesses

– 500,000 emergency product customers

– Over 25,000 After-the-Event policies

Alongside these impressive figures ARAG has always been committed to providing quality products and services, this is reflected by the range of achievements and accolades awarded to ARAG by the industry, including:

– ‘Best Legal Expenses Insurance Provider’ Insurance 360 Report

– ‘ATE Insurance Provider of the Year’ 2009 Personal Injury Awards

– ‘ATE Insurance Provider of the Year’ shortlisted 2011 Personal Injury Awards

 -‘Most Innovative use of Software by an Insurer’ and ‘Outstanding Team of the Year’ 2010 Claims Technology Awards

The product range at ARAG has also grown significantly, developed over the past five years through innovation and demand in the market in the key areas of commercial, landlords, family, ATE and assistance. The most recent launches were Divorce Legal Solutions and Pre-nuptial Legal Solutions, both the first of their kind in the UK.

So what do the next five years hold for ARAG? There are exciting plans for a rebranding project in 2012, opportunities will be realised in expanding the commercial side of the ATE business and the launch of the improved QuickQuote system will make life much easier for BTE customers.

While there is one blip on the horizon, namely the Jackson reforms in the LASPO Bill, ARAG will continue to oppose the changes and fight for accident victims. Despite this however it is fair to say that ARAG is looking forward to the next five years and the opportunities and challenges that will surely accompany them.

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The Co-operative Banking group’s CEO and a group of colleagues have launched a charity record in aid of Mencap. With Nirvana, TOWIE and even The Wombles tipped as contenders to challenge the X-Factor for the Christmas number one spot, the band, Angel Square, with Peter Marks on drums, has released a track to raise money for young people with a learning disability.

The eight piece outfit features staff from across The Co-operative including food, finance and the head office legal department.

Joining Peter Marks in the band and recording their version of the Take That hit ‘Greatest Day’ are; Trevor Ashworth, Director of food retail logistics, on keys; Lee Braddock who is responsible for the Food Supply Chain, on bass, Eivind Brown in IS and planning on rhythm guitar and, Dan Zambas from the finance department who plays lead guitar and snyths.

In addition, vocals are provided by Kat Harper who works in food media and communications, Caroline McCann from the Group’s legal department and, Dan Harley, a category merchandiser within the food division who is the band’s musical director and lead vocalist.

The song is available for download and proceeds will raise money for The Co-operative’s charity of the year Mencap and its sister charity ENABLE Scotland to develop ‘Inspire Me’ – a programme designed to give up to 20,000 young people with a learning disability opportunities to change their futures.

Peter, whose day job is running The Co-operative Group – the UK’s largest mutual business with more than 6 million members – has given up spare time to rehearse and, as well as launching the single, the band will tonight play a live gig in the heart of Manchester.

Angel Square, which is also the address of the Group’s new head office in Manchester, will play a full set including hits by Maroon 5, The Black Eyed Peas and The Rolling Stones, to a sell-out crowd at the city’s Band on the Wall venue.

Keen drummer Peter Marks, said: “I was once quoted as saying that if I wasn’t at The Co-operative, the only other job I would be interested in would be drumming for The Rolling Stones!

“I knew that the idea of a band formed entirely from co-operative colleagues had the potential to support our charity of the year. Given the great talent I see day in and day out in our business, I believed that we could form a really good band, but even my own high expectations have been surpassed by the talent in Angel Square.

“Throughout 2011, our fantastic staff, members and customers have raised more than £4.5 million for Mencap and ENABLE Scotland – money that is already having a tremendous and positive impact and offers an opportunity to transform the lives for a generation of young people with a learning disability.

“At a time when the co-operative business model is very much in fashion, the United Nations has proclaimed 2012 to be the International Year of Co-operatives and there are approaching one billion members of co-operatives worldwide …maybe, just maybe, we could give X-Factor a run for its money!”

Laura Gammage, Corporate Development Manager at Mencap, says “We have been overwhelmed by the support shown by everyone in The Co-operative Group and are delighted that this charity single will be raising even more money for Mencap and ENABLE Scotland to help support young people with a learning disability.”

The single was recorded at Manchester’s School of Sound Recording (SSR) in November and released for digital download by legendary record label Revolver who, in their 30 year history have worked with a diverse array of artists including fellow Mancunian band The Stone Roses.

The song is available for download from Friday, 9 December, from iTunes and all good digital music stores priced 79p.

Source : The Co-operative Banking Group

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Overcrowded hotels, unsuitable transportation, marauding soldiers, a pregnant backpacker going into labour: we might think that Christmas travel chaos is a relatively new phenomenon, but a brief analysis of the Nativity Story reveals that all the signs were there 2,000 years ago.  Just as the three kings journeyed across the Middle East bearing expensive gifts, so millions of Britons set off to visit loved ones in present-packed cars or fly abroad in search of festive sunshine making Christmas one of the busiest travel times of the year.

With so many travellers heading for their trains, planes and automobiles, travel insurance specialist Columbus Direct is offering Britons a seasonal reminder to check their travel insurance and make sure any shopping trips, Christmas getaways and winter sports activities are covered.

Travel delays can also be a major problem during Christmas and New Year: Columbus Direct recorded over 1,000 travel delay claims in January 2011 due to unexpectedly harsh weather conditions and wide-spread snow in the UK which shut airports including Heathrow. During the Easter holiday break in April 2010, Columbus Direct recorded almost 4,000 claims due to the volcanic ash cloud that halted flights across Europe.

Greg Lawson, spokesperson for Columbus Direct said: “The past couple of years have really demonstrated the sheer power and unpredictability of Mother Nature at this time of year. Having your travel plans cancelled or delayed is upsetting enough, but if you don’t have the right type of insurance cover, your money won’t be making the return journey to you!”

Based on the Nativity Story, the Columbus Direct travel insurance team offer these six tips…

Travelling with valuables

While today it’s more likely to be iPods, tablet PCs and games consoles, rather than gold, frankincense and myrrh, many people travel across the Christmas period taking gifts with them.

Your policy should cover the loss and theft of, and damage to, valuables although there is often a limit of £200-£300 so you need to check that this will cover what you’re taking on your travels.

Mix up at the hotel

There was no room at the inn for Mary and Joseph and there may be none for you. In the event of a being stuck with no accommodation, it is important to note that the holiday company used to make the booking, or the hotel themselves, would be liable to find you alternative accommodation. Travel insurance policies would not cover this.

Civil unrest

Mary and Joseph were travelling as part of a census to pay taxes. Just as they had to be careful of any conflicts in the area with Roman guards or marauding peasants, modern day travellers need to be vigilant when holidaying abroad.

In the event of civil unrest while travelling, we recommend you contact the Foreign and Commonwealth Office (FCO). In fact we recommend that holiday makers always check with FCO before travelling as they provide checklists, country information, Embassy details, passport and visa requirements and more.  For more information, please visit the FCO website: http://www.fco.gov.uk/en/travel-and-living-abroad/travel-advice-by-country/

Emergency medical assistance

As the story goes, Mary gave birth while travelling to Bethlehem. Today the majority of insurance companies will only provide limited cover up to about 7 months of any pregnancy. Generally, travelling overseas after 30 weeks carries a higher risk of a both premature birth and complications of pregnancy and needs to be considered carefully with advice from a medical consultant.

If you are travelling by air, it is also important to check with the carrier to see what their rules specify regarding a safe travel timeframe for pregnant women – don’t assume it’s the same for all as it varies from airline to airline.

It is essential to have a policy that covers you for emergency medical expenses while holidaying overseas, in case of sustaining unexpected injury or illness. Your policy should cover you for both emergency in-patient and out-patient treatment, which includes treatment costs, consultations and even emergency dental treatment. However, you are recommended to take out the European Health Insurance Card (EHIC) although this only covers state-provided treatment and not private clinics or repatriation costs.

If it becomes medically necessary to repatriate you back to your home country, then this should be covered too.  Should you require emergency medical treatment or repatriation, Columbus policies provide you with access to a 24-hour multilingual staffed medical emergency company.

Strange goings on in the sky

The three wise men navigated their way to Bethlehem guided by an unusually bright star where they discovered Mary, Joseph and baby Jesus. These days we experience other atmospheric acts of God such as volcanic ash, hurricanes and fog.

It is important to check your travel policy as most will not cover ‘acts of god’. Having covered customers in the 2009/10 Iceland volcano incidents, Columbus Direct continues to offer cover for Travel Delay, Abandonment and Missed Departure as a result of volcanic ash.

Visiting foreign cities

Shepherds came from all over the land to visit baby Jesus and deliver gifts. With Christmas markets across Europe open, thousands of Brits will travel to cities such as Bruges, Munich and Prague in the annual quest for fabulous Christmas gifts. Most policies cover a limited amount of money for items bought abroad. If you are spending big bucks on your Christmas shopping and bringing your gifts back, make sure your policy has cover for loss, damage and theft of baggage.

It should also provide you an allowance to purchase essential items in the event that your baggage is delayed for a certain period of time.

As with all good stories, past and present, we wish you a safe and happy ending to your travels this Christmas!

Source : Columbus Direct

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