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Japanese restaurant chain operator Skylark has closed 120 outlets in northeastern Japan following an outbreak of dysentery, media reports said Wednesday.   

Skylark on Wednesday suspend operations at the 120 “Gusto” outlets, mostly in the Tohoku region, which was hit by the March 11 earthquake and tsunami, the Nikkei daily said.

The move came after 15 people in four northeastern prefectures, including Fukushima and Miyagi, were diagnosed as having bacterial dysentery, of whom, 14 had dined at “Gusto,” local media reports said.

Skylark officials could not be immediately reached for confirmation.

Health ministry official Ayumu Ishimaru confirmed the outbreak of infectious disease involving the Skylark restaurant chain but said the ministry has yet to be informed in detail.

Tokyo, Aug 31, 2011 (AFP)

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Aviva’s recent Family Finances Report shows families are worried about the cost of living as inflation still rises. Even if income and savings are falling as debt increases, Aviva’s research shows that families are not protecting themselves against the unexpected.

Falling income and savings:

While families saw annual inflation increase dramatically on essentials such as food (+6.4%) and fuel and lighting (+7.45%), their actual monthly income fell by 2% from £2,062 (May 2011) to £2,018 (Aug 2011). This appears to be partially as a result of a decline in women’s monthly income, which fell by 8% from £1,935 (May 2011) to £1,777 (Aug 2011).

The typical UK family has just £982 (Aug 2011) in savings, down 16% from £1,163 (May 2011). However, while average savings have fallen, this might be due to the fact that the smaller relative savings pots of some new savers have brought down the overall average. Since the start of the year, the number of non-savers has fallen from 40% (Jan 2011) to 37% (May 2011) to 36% (Aug 2011). The typical amount saved each month is £34 (Aug 2011) which is up slightly from May (£32).

Unsecured borrowing remains static but overall debt increases:

The typical UK family now has debts of £79,816 (mortgage and unsecured borrowing) which is higher than the January 2011 figure of £73,690. This increase is due to additional mortgage borrowing as unsecured debt actually fell very slightly from £5,360 (Jan 2011) to £5,353 (Aug 2011).

The average family with unsecured debt spends 9% of its income on repayments, but total borrowing has only fallen by £7 since January 2011. This appears to show that living with a certain level of debt has become normal and while people do make repayments, they continue to borrow at the same time.

Families increasingly worried:

With high inflation levels, falling incomes and an uncertain economy, families are more worried than ever about the cost of living rising over the next six months (64% – Aug 2011 vs. 57% – Jan 2011). The more financially vulnerable single parent families are most worried about potential increases (67%). Loss or changes to benefits (21% – Aug 2011) are a concern to one in five people, with those who are most reliant on this type of income – single parents – most worried (45%). Divorced/separated/widowed families (31%) also saw this as a cause of anxiety.

Lack of protection:

In keeping with the increased worries around the cost of living, families are feeling increasingly financially unprotected. Now only 5% feel completely protected (7% – Jan 2011) and 49% feel under / unprotected (43% – Jan 2011). This shift highlights the precarious state of many families’ finances and the peace of mind that could be provided by the purchase of protection products such as life insurance, critical illness cover and income protection.

Louise Colley, head of protection for Aviva comments:

“Faced with rising costs and largely static salaries, UK families are more worried than ever about their finances. However, we have seen some positive signs that people are looking to change their financial behaviour for the better. For example, almost half of all families now acknowledge they are under-protected, which suggests at least a growing awareness of the need to protect their families. It’s also reassuring to see that some people who had previously not saved have started to put money away – albeit small amounts.

“However, while people are improving their attitudes to finances, many families – especially single income families – are very vulnerable to a loss of income.  We therefore urge people to turn this awareness into action and seriously consider some form of protection which can offer peace of mind against the unexpected.”

Source : Aviva

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The UK companies that have mis-sold payment protection insurance have paid out an estimated GBP 215 million during the first half of the year according to the FSA.

In May and June alone, GBP 102 million was paid out after U.K. banks dropped a legal fight to delay or change the terms of PPI repayments, which are being made after the industry conceded that customers for years had frequently bought insurance they didn’t understand or that wasn’t suitable for their needs.
“The treatment of PPI complainants has left an indelible stain on the financial industry’s record,” Margaret Cole, interim managing director of the FSA’s conduct business unit, said. “By releasing these figures we’re providing a useful measure of firms’ progress that can be tracked on an ongoing basis.”

The FSA said that 16 companies, representing 92% of PPI complaints received in the first half, had paid out GBP 215 million in redress. The remaining 8% of complaints are applicable to around 400 other companies.

“We remain committed to ensuring that where consumers were mis-sold PPI they will receive the appropriate redress from firms, and we are monitoring firms’ progress to ensure this is done properly,” Cole said. “Where we find that this not to be the case, we are not afraid to take tough action.”

The sale of PPI policies to cover customers payments on mortgages and credit cards and personal loans was a booming, multi billion-pound business for the U.K. banking industry in the 2000s but tapered off in the past few years as regulatory authorities started to crack down on how some of the policies were marketed. The FSA implemented new rules last year that were contested by banks until their step-down over the issue in May.

As a result, U.K. banks Barclays PLC (BCS), HSBC Holdings PLC (HBC), Lloyds Banking Group PLC (LYG) and Royal Bank of Scotland PLC (RBS) took more than GBP5 billion of provisions in their first half results to cover PPI compensation.

London, August 30, 2011, (Dow Jones)

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Axa Private Equity annoounced it has it bought a majority stake in a portfolio of private-equity fund investments from Germany’s HSH Nordbank AG.

Financial details of the transaction were not disclosed.

The deal values HSH Nordbank’s whole portfolio at EUR620 million across 47 funds. The portfolio being bought by Axa comprises investments in 18 European mid-cap and large funds with a total EUR478 million in original commitments.

The deal highlights the ongoing boom in the sale of private-equity interests in the secondary market, as banks continue to sell assets which, under tough new rules, are costly for them to hold.

Axa Private Equity has been particularly active in the market, having made several acquisitions over the last year. These include the purchase of $1.7 billion private-equity assets from Citigroup Inc. (C), $1.9 billion in private-equity funds from Bank of America Corp. (BAC) and most recently a $740 million private-equity portfolio from Barclays PLC (BCS).

The trend is set to continue over the next two years with an estimated $40 billion-$50 billion of bank assets coming to market, said Vincent Gombault, managing director funds of funds, at AXA Private Equity.

“Banks are looking to offload their private-equity portfolios and pricing is more acceptable,” he said.

“And after banks have offloaded their portfolios, pension funds will be the next round of sellers. Their portfolios are not distressed, but very often pension funds have very small teams and it is difficult to expect them to manage around 200 relationships with individual private-equity firms, and some will look to rationalise their portfolios accordingly,” he added.

Paris, August 30, 2011, (Dow Jones)

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With the IFB’s analytical software, 128 million insurance records were analysed to identify and produce the league table of regional hotspots for ‘crash for cash activity’.   

For the sixth consecutive quarter, Birmingham remains in hotspot number one.

‘Crash for cash’ takes different forms and includes the deliberate targeting by criminals of innocent motorists. Such practices are distasteful, can be distressing for motorists and are criminal acts.

Working in partnership with insurers and compensators, the IFB is actively engaged with Police forces and regulators, in respect of intelligence sharing arrangements and joint operations concerning ‘crash for cash’.

The IFB has 29 live organised insurance fraud operations with 17 different Police forces, focused on fraud valued at approximately £59.5 million, with new operations currently being formed. Many of these operations involve crash for cash activities.

Operations have to date resulted in over 486 arrests, 119 criminal convictions and sentences including over 91 years imprisonment, for trials that have concluded so far. Activity to liquidate the assets of insurance fraudsters is also taking place.

Glen Marr, Director of the IFB comments:

“We use our powerful analytical software to interrogate a significant level of industry data, which includes that relating to insurance claims. This provides the insurance industry with unique capability to identify insurance fraudsters, link parties together, to include professionals that are assisting this criminal activity, and ultimately disrupt their illegal activities”.

“Experience has demonstrated that it requires a sustained collective industry effort to reduce the incidence of this type of fraud, and that is precisely what is in place.

“Insurers have invested heavily in reducing insurance fraud, to include ‘crash for cash’.

This investment is also being supported by consumers, who intolerant of insurance fraud and the criminals associated with such, are taking a stand by reporting suspicions to their own insurers and to the industry fraud Cheatline managed by the IFB.

“It is estimated that undetected insurance fraud costs the industry up to £2billion a year, adding, on average, an extra £44 a year to the insurance bill for every UK policyholder. Consumers should not be subsidising the actions of criminals and the industry is committed to rooting out fraudsters.

 “For anyone with suspicions or knowledge regarding any type of insurance fraud, particularly concerning those organising or encouraging fraud, information can be shared in strictest confidence and anonymously, if necessary, with the IFB through the Cheatline.

 

Source : IFB

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Chief Executive Officers of insurance companies are selecting insurance experienced independent directors and expanding their role as Independent Directors. Independent Directors are called upon to find new growth opportunities for the insurance company. Acquiring another insurance company, acquiring another insurance product line, purchasing a managing general agency or a wholesale broker helps the CEO grow his insurer.

Independent Directors may be appointed by the private equity firm/asset manager/institutional investor when they acquire 8.3% of the stock of the insurance company. The equity insurance stock analyst usually has no operational insurance experience and must rely on models to formulate buy or hold or sell recommendations.

Expanding the role of an Independent Director may include:

– Evaluating potential acquisition opportunities

– Visiting Standard & Poor’s, Moody’s, Fitch, and A.M. Best Company regarding the financial rating of the insurance company

– Negotiating the Fronting Agreement for the Captive Insurance Company

– Negotiating with the Executive Recruiter on the selection of a CEO for the perpetuation plan

– Evaluating the selection of an insurance and reinsurance litigation attorney

– Visiting a retail insurance broker

– Evaluating asset management company

– Selecting the independent auditor of firms such as Price Waterhouse, DeLoitte, KPMG, Ernst & Young, and BDO accountants

– Evaluating the performance of the reinsurance broker

– Critiquing the actuarial report

– Selecting another director

Chief Executives are expanding the role of the Director.

Written by Andrew Barile, MBA, CPCU / abarile@abarileconsult.com

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Hurricane Irene made first landfall around 1130 UTC, Saturday, August 27, coming onshore west of Cape Lookout, North Carolina, 50 miles west of Cape Hatteras and 120 miles south of Norfolk, Virginia. Maximum sustained winds were 85 mph, equivalent to a Category 1 status, hitting the shore weaker than previously forecast. Irene moved north across North Carolina, deviating slightly east as it passed over the Delaware and Maryland coast.

Irene made a second landfall near Little Egg Inlet on the New Jersey coast, 10 miles east-southeast of Atlantic City, New Jersey, and 100 miles south-southwest of New York City, at 1040 UTC, Sunday August 28. Maximum sustained winds were 75mph, equivalent to low category 1 status, indicating that Irene had continued its slow weakening trend, and was a bit weaker at landfall than had been forecast. Irene continued to move north-northeast as it passed over New York City, New York and western Connecticut, Massachusetts, and New Hampshire.

Irene became a post tropical storm as it passed over the U.S. and Canadian border, and as of 0900 UTC, Monday August 29, Irene was located about 50 miles north of Berlin, New Hampshire and 150 miles south of Quebec City, Quebec moving north-northwest at 28 mph. Irene has maximum sustained winds of 50 mph with gale force winds extending 365 miles from the center with higher gusts possible along the coast, south and east of the storm. Tropical storm warnings along the New Brunswick storm are set to expire this morning. Post-tropical storm Irene is expected to continue to track northeast over Canada today, passing over Newfoundland and moving into the Labrador Sea by Tuesday morning, local time.

Hurricane Irene’s damage is likely to be characterized more by the amount of inland flooding, storm surge, and treefall than by direct wind damage and flooding is still an ongoing concern for many states in the northeast. Irene’s most damaging winds spared areas of coastal Virginia, Maryland, and New Jersey, but her large windfield spread tropical storm force winds as far inland as Washington, Baltimore, Richmond, and into Central Pennsylvania.

The most common impact from winds was treefall, with thousands of uprooted and downed trees from North Carolina, up the Mid-Atlantic, and throughout the Northeast. Additionally, there have been several reports of strewn debris, siding and roofing materials blown off houses, and damage to automobiles. Among the hardest hit areas were Chesapeake Bay and the Outer Banks of North Carolina where Irene initially made landfall.

Source : RMS Press Release

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The September 11 terror strikes left American psychiatrists a lasting legacy of unexpected size: thousands of people living and struggling with post-traumatic stress disorder, 10 years on.   

An eye-opening example of the PTSD on view in New York’s daily life a decade after the attacks: last Tuesday, when a relatively rare earthquake was felt up much of the US east coast including in New York City, locals spontaneously evacuated high-rises here, pouring into the streets in distress.

“The first thing to come to their minds was ‘Oh, my God, is there another bombing, what’s going on?'” said Dr. Jacob Ham, who leads the program for Healing Emotions and Achieving Resilience to Traumatic Stress at Beth Israel Medical Center and St. Lukes Roosevelt Hospital Center.

In fact, “a lot of people were having PTSD reactions without understanding it. They were having a physical response, they were panicking more than the (real) situation might make them, to react in this way,” he explained.

PTSD is an anxiety disorder that can follow a psychologically traumatizing experience, sometimes immediately but at times months later. It is considered a full PTSD case when anxiety lasts longer than a month; a shorter case would be deemed acute stress disorder. The mental health definition of PTSD also notes that the patient’s fear is felt as present, even when the victim is not physically or psychologically threatened.

With a decade of fighting in Iraq and Afghanistan, PTSD has skyrocketed among the US military ranks. It can happen to victims of violent crime or domestic abuse, but PTSD also  can be common in the aftermath of a major terror attack such as 9/11.

The pathology as it is described now was developed in 1978 by Charles Figley in a book about Vietnam war veterans plagued by their traumatic experiences at war.

New York’s health department has just started a third study to look into the physical and mental health of the more than 70,000 people directly exposed to the 9/11 attacks.

“Only now has sufficient time passed to begin investigating potential late emerging and long-term health effects associated with (World Trade Center) exposure,” explained Health Commissioner Dr. Thomas Farley.

“Responses to the third survey will provide researchers with health updates that can help guide clinical services in the future.”

According to official New York city figures, at least 10,000 firefighters, police officers and civilians exposed to the terror strikes have experienced PTSD, the most common psychiatric disorder stemming from the 9/11 attacks.

New York Health Department projections based on those figures are that some 61,000 of the 409,000 people who were in the area at the time of the attacks probably experienced PTSD in the first six years after 9/11.

For Roxane Cohen Silver, an expert on PTSD at the University of California, “the attacks of 9/11 did far more than destroy buildings and kill thousands of innocent people. They interrupted routine patterns and tugged our social fabric” in the United States, she said.

“Even those individuals who did not know anyone who died that day have been touched by the tragedy. We are different now… We sometimes gaze askance at young men carrying backpacks on public transportation,” she added.

Beth Faitelewicz, a nurse at Beth Israel hospital for the past 25 years, lives, with her husband and daughters, close to the site of the attacks in New York. She says that her husband has suffered PTSD, which has put strain on her.

“I never went for help. I should go, maybe, but I never went. I try to deal with things on a daily basis. I’ve got to be strong, I’m the mommy,” she told  AFP.    “But if one person in the family is affected, we are all affected.”

New York, Aug 28, 2011 (AFP)

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Travel insurer Columbus Direct has announced the expansion of its range low cost travel products into the German market.

The range of travel insurance products will now be available for purchase through the Columbus Direct German website, and includes Cancellation and Curtailment insurance, Complete Travel Cover and AuPair Travel Insurance for aupair trips for the duration of up to one year.

This latest undertaking is part of Columbus Direct’s continuing growth strategy, which has so far seen the company offer insurance products in 50 countries.

Commenting on the expansion, David Evans, Managing Director of Collinson Insurance Group, said: “We want to replicate the success Columbus Direct has seen in many countries by expanding our offering of technology driven products which put the customer first.

 “Our experience and research on the German market have shown consumer habits for purchasing travel insurance tend to be much more traditional than those in the UK; with many individuals buying travel insurance from their travel agent. Thus, we believe that insurance products which are flexible, cost effective, can be accessed through an on-line portal and which are sold directly to the consumer could generate a lot of demand in this market.”

 “With this expansion, Columbus Direct has brought its offering to Germany to cater to this demand.  This move reinforces our commitment to our customers in the European region.”

David Evans adds: “Our strategy is to capture consumer interest through ease of access and flexibility of the cover. Customers can tailor the cover to their specific needs and benefit from the easy-to-understand policy guidelines.”

Source : Columbus Direct

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Since the start of the credit crisis four years ago, European RMBS performance has held up well in the core European countries. However, in the peripheral EU states the strain of sovereign credit issues and macro economic deterioration is beginning to show. Increasing mortgage arrears and house price declines have not yet run their course and the outlook for the sector is not uniform across the region. The division of the continent is, nonetheless, not that black and white and a number of grey areas in European RMBS remain.

With this in mind Fitch Ratings cordially invites you to their annual European RMBS conference on Tuesday 13 September, where senior members of Fitch Ratings RMBS team will be exploring the differences between European RMBS markets.

The East Wintergarden, 43 Bank Street, Canary Wharf London E14 5NX UK

Featured Topics

– Cross-country ratings’ performance drivers;

– House price expectations;

– Loan modifications;

– Credit losses;

– Rating methodology changes;

– Interest rate sensitivity;

– New issuance and deal structures;

– Outlook for 2012.

Speakers

– Andrew Currie, Managing Director

– Gregg Kohansky, Managing Director

– Marjan van der Weijden, Managing Director

– Gioia Dominedo, Senior Director

– Sanja Paic, Associate Director

– Atanasios Mitropoulos, Senior Director

– Michele Cuneo, Senior Director

 Contact : Rachel Cros / +44 20 35 30 1700 / londonevents@fitchratings.com

Click to view the Agenda,

Click here to Register.

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Tropical Storm Don, the fourth named storm of the Atlantic hurricane season, has made landfall near Baffin Bay, Texas according to modelling firm AIR Worldwide.

Dry air and shear tore the storm apart such that its winds—tropical storm-strength as Don approached the Texas coast—weakened to roughly 35 miles per hour as the storm crossed ashore. As of 10 PM CDT Friday night, just after landfall, all tropical storm watches and warnings for Texas were discontinued.

On Friday afternoon, before the storm touched down, Rio Grande Valley—at Texas’s southernmost tip—began experiencing precipitation from Don’s outer rain bands. “Earlier in the week, as Don moved relatively quickly across the southern Gulf of Mexico towards Texas, it changed little in intensity, inhibited by the area of moderate vertical wind shear through which it was passing,” said Dr. Tim Doggett, principal scientist at AIR Worldwide. “Though it tracked near several areas where offshore oil production is conducted, it avoided the largest concentrations of production platforms, which lie south of New Orleans. Hence, no damage to offshore rigs was reported from Don in the Gulf.”

According to the 4 am (CDT) National Hurricane Center (NHC) Public Advisory on Saturday, Tropical Depression Don had maximum sustained winds of 30 mph and was about 85 miles west of Corpus Christi, moving west-northwest at 14 mph—a quick pace that will mitigate flooding.

While forecasters initially thought Don could bring as much as seven inches of precipitation to parts of rain-starved, Texas, rainfall will only be one to two inches in most areas, and three inches in isolated locations—certainly not enough to make a dent in the state’s severe drought. Parts of northern Mexico may experience rain as well. The region where Don made landfall, 40 miles south of Corpus Christi, Texas, is sparsely populated. Following landfall, there have been few reports of damage.

Due to the sparse population of the landfall region and Don’s relatively weak winds, significant insured losses are not expected from this event.

Source : AIR Worldwide

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A voluntary swap of privately held Greek bonds as part of the debt-laden country’s bailout will be successful and help it return to bond markets by early 2014 at the latest, a key official said on Saturday.

“I see no reason why it (Greece) should not return to markets in 18-30 months,” said Charles Dallara, managing director of the Institute of International Finance (IIF), a global bank association, in an interview with Greek newspaper Kathimerini.

Greece’s private sector creditors will take a 21 percent loss on their bond holdings as part of a 37 billion euro contribution to a rescue plan for the debt-stricken country, agreed at a euro zone summit earlier this month.

Under the plan, banks and insurance companies are invited to voluntarily swap their Greek government bonds for longer maturity paper at lower interest rates.

Bank lobby IIF, which is helping coordinate talks on the bond exchange which started in Athens this week, has estimated that about 90 percent of all private holders of Greek debt maturing by 2020 will take part in the scheme.

“I am certain that the (90 percent) target can be achieved, if everyone does their work and cooperates harmoniously,” Dallara told Kathimerini.

Dallara dismissed analysts’ concerns that Greece’s latest bailout package offers respite but will ultimately fail to make the country’s debt sustainable.

“I disagree,” he said. “In my view, this is a very strong package for debt sustainability.”

Dallara also predicted that Greek banks, the biggest holders of the country’s debt, will not have to be nationalised or bought out by rivals to cope with losses they would incur under the bond swap.

“In our view, and based on the results of stress tests, most Greek banks can manage the losses resulting from this agreement without a need for large capital increases,” Dallara said.

Source : Reuters           

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Shares in Asian insurance giant AIA touched a record high in Hong Kong Friday as the firm said net profit in the first six months of its fiscal year rose by a quarter.   

The stock, which was listed in the teeming financial hub following a monster $20.5 billion share sale last year, hit HK$29 ($3.72) in early trade before closing at HK$28.65, up 3.43 per cent on the day. That close was about 46 per cent above AIA’s HK$19.68 initial public offering price.

On Friday, the firm reported a $1.31 billion net profit in the six months to May 31, a 24 per cent year on year increase, while it said the value of its new business rose 32 per cent to $399 million.

“AIA’s strong performance across all of our key financial performance measures demonstrates the excellent progress we have made in executing our growth strategy,” said Mark Tucker, the firm’s chief executive.

“There is much more to come,” he added.

The rosy results come after AIA said earlier this year that its net profit in 2010 rose 54 per cent over 2009 to $2.7 billion. AIA raised $20.5 billion in October, marking the world’s third-biggest initial public offering at the time.    Some of the cash was earmarked for helping its then parent, troubled US insurer American International Group, pay off a $182 billion US government bailout it received at the height of the global financial crisis.

Once the world’s largest insurer, AIG received the massive government cash injection as it teetered on the brink of collapse in 2008 and threatened to take down a number of large banks with it.

AIG was forced to look at floating its Asian unit in Hong Kong after the collapse of a proposed $35.5 billion sale to British insurer Prudential.

Hong Kong, July 29, 2011 (AFP)

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Since 9/11, a number of terrorist plots, including those planned by right-wing extremists, have been interdicted in the western democracies. In particular, infiltration of extremist fascist groups by the western intelligence services has been successful in preventing any right-wing macro-terror plot, such as a possible repeat of the 1995 Oklahoma bombing. A continuing concern to the FBI is the lone offender: ‘a single individual driven to hateful attacks based on a particular set of beliefs without a larger group’s knowledge or support.’ The FBI believes that most U.S. domestic attacks are carried out by lone offenders to promote their own grievances and agendas.

Even in western countries with the most effective and well-resourced counter-terrorism services, catching lone wolf terrorists is difficult and haphazard. With a minimal social network of plotters, the chance may only be one in four. Accordingly in February 2010, CIA director Leon Panetta reckoned the lone wolf strategy to be the main terrorist threat to the U.S. homeland.

“In a small outlying peaceful country such as Norway, where the authorities ranked the terrorist threat as low, and dismissed right-wing extremism as not a serious threat, there would only have been a very slim chance of stopping a lone wolf terrorist through intelligence gathering,” said Dr. Gordon Woo, catastrophist at RMS.

Capability of Lone Wolf Attacks

If a lone wolf manages to evade detection by the intelligence services, the amount of harm he could cause depends crucially on the level of target security. As a nation priding itself as an open society, the level of urban security has been kept purposely low in Norway. In contrast with Downing Street or the White House, the Norwegian Prime Minister’s office was publicly accessible with minimal ID and no baggage checks. A plan to construct barriers protecting the central complex of government buildings was due to be implemented in a few months’ time, after a decade of post 9/11 procrastination.

A tragic price for such societal openness was paid on Friday, 22 July 2011, when a major terrorist attack was mounted against the ruling Labour party of Norway by a right-wing extremist Islamophobe Anders Behring Breivik. A self-confessed lone wolf, it is possible he may have had a limited degree of plot assistance.

“The large scale of Breivik’s successful attack was made possible by the general lack of terrorism risk awareness of a country without any notable terrorism experience within its own borders,” continued Dr. Woo. “The Norwegian government tolerated outspoken anti-American diatribes of mullah Krekar, head of Ansar-al-Islam, who claimed he was an insurance policy against Islamist attacks in Norway. Additionally, few rather minor Jihadi incidents have occurred, such as the firing of gunshots in the Oslo synagogue in 2006; the arrest in 2008 of Somalis for terrorist fundraising on behalf of Al Shabab; and the arrest in 2010 of three Norwegian residents with Al Qaeda links.”

Preparations for an attack could be conducted patiently by an ethnic Norwegian without interference or obstruction from the authorities, or tip-offs from vigilant fellow citizens. Rather like the American lone wolf Unabomber, the educated Breivik wrote his own lengthy rambling political manifesto, which shows that very careful thought and systematic scheduling went into the meticulous planning of his entire operation. The bomb attack in Oslo drew in police resources, which facilitated his subsequent assault on the Labour party youth summer camp on the island of Utoeya. Dressed as a policeman, he was able to shoot more of the defenceless teenagers. The most cunning terrorists are the most dangerous.

For a home-grown right-wing terrorist intent on perpetrating a spectacular domestic attack, Norway was an ideal safe haven, as Afghanistan was for Al Qaeda before 9/11. Thus there were no constraints or ID checks against the procurement of 6 tons of artificial fertilizer from an agricultural supply company. Half of this quantity was found at Breivek’s farm. Allowing for some proper agricultural usage, and some for bomb testing, he might have packed as much as two tons into the delivery van that was parked close to the energy ministry.

In the more terror-prone USA or the principal countries of western Europe, it would require a group of conspirators to acquire several tons of fertilizer, without attracting the attention of security services or the suspicion of vigilant citizens. In 2004, five terrorists were caught in the U.K. stockpiling a ton of fertilizer and planning bombing raids. Both the quantity of fertilizer purchased for supposedly garden purposes, and the prolonged duration of its storage, raised public alarm.

Lessons for the Future

One of RMS’ longstanding terrorist expert advisers, Dr. Magnus Ranstorp, has pointed out in the wake of the Oslo attacks that counter-terrorism intelligence services across Europe are rightly concerned about the lone wolf. European security services will now be trying to glean as much information as possible from their Norwegian counterparts.

In seeking to draw lessons from Oslo on the capability of lone wolves, account needs to be taken of the much tougher counter-terrorism environment in those western democracies, such as U.S., U.K., France and Germany, which have already experienced violent terrorist threats, and responded accordingly by strengthening defensive measures.

A copycat lone wolf attack in the larger western countries would not thus have the same latitude and opportunity to perpetrate a similar amount of carnage and destruction.  However, for European countries with low terrorism threat perception, such as Finland, Austria, and Switzerland, lax counter-terrorism security may permit right-wing extremists to launch spectacular terrorist attacks.

Source : RMS

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Aon announced quarterly profit as its acquisition of Hewitt Associates paid off, but the world’s largest insurance broker said it still expects soft insurance pricing to continue.

High unemployment and stiff competition made it hard for insurers to raise premiums, hurting insurance brokers like Aon, Marsh & McLennan and Willis Group that depend on commissions for much of their revenue.

As insurers have faced high levels of losses over the last year, analysts expect them to increase premiums, benefiting insurance brokers like Aon. But the company is not optimistic.

“Despite industry loss expense in the first half, we believe excess capacity globally will continue to drive soft pricing, albeit at a more modest rate of decline,” Aon Chief Executive Greg Case said on a conference call.

Aon’s views on soft insurance come in sharp contrast to what has been said by virtually every major insurer to report results so far this season.

Sandler O’Neill analyst Paul Newsome said the disconnect between the brokers and insurance companies relates to the difference between renewal pricing and new insurance pricing.

The fall in the operating margin for Aon’s brokerage unit also disappointed investors, but analysts expect the margin to expand in the future.

“We should see stronger margins in the back half of the year as organic growth continues,” Stifel analyst Meyer Shields told Reuters.

For the second quarter, the adjusted operating margin from the brokerage operations fell to 19.6 percent from 21 percent a year ago.

Second-quarter net income attributable to common shareholders rose to $258 million, or 75 cents a share, from $153 million, or 54 cents a share, in the year-ago period.

Excluding items, earnings from continuing operations were 83 cents a share.

Analysts, on average, expected the company to earn 82 cents a share, according to Thomson Reuters I/B/E/S.

Total revenue rose 48 percent to $2.8 billion. HR solutions revenue more than tripled to $1.09 billion.

Aon Corp last year spent $4.9 billion to buy Hewitt Associates Inc in an aggressive bid to leapfrog arch rival Marsh and McLennan and create the world’s largest human resource services company.

Shares of the Chicago-based company were down 3 percent at $47.98 in morning trade on Friday on the New York Stock Exch

Source : Reuters 

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According to catastrophe modeling firm AIR Worldwide, Tropical Storm Don is moving across the southern Gulf of Mexico toward the Texas coast near Corpus Christi, where it is expected to make landfall sometime late Friday or early Saturday. The storm will pass near several areas where offshore oil production is conducted, and several petroleum companies have begun evacuating support workers. A tropical storm warning is in effect for the Texas coast from Port Mansfield north to San Luis Pass.

Tropical Storm Don officially became a tropical storm yesterday afternoon at 5:00 pm (EDT), when a Hurricane Hunter aircraft discovered that the winds of “Tropical Depression 4” had reached 39 mph, strong enough for the tropical storm designation. “Tropical Storm Don is passing through an area of low-to-moderate vertical wind shear, and a region in which the air is also relatively moist,” explained Dr. Tim Doggett, principal scientist at AIR Worldwide. “Given the storm’s relatively small size—its storm-force winds extend outward up to 60 miles—it should maintain its tropical storm status, and, in fact, some slow intensification is anticipated.”

According to the 11:00 am (EDT) National Hurricane Center (NHC) Public Advisory, Tropical Storm Don is about 480 miles east-southeast of Brownsville and 520 miles east-southeast of Corpus Christi, moving at near 14 mph toward the west-northwest. “Following a northward shift in its movement this morning, current NHC projections estimate Don will make landfall less than 50 miles north of Corpus Christi—however, the NHC cone of uncertainty extends over 210 miles of coastline,” added Dr. Doggett. While its maximum winds at present are 45 mph with higher gusts, Don is expected to increase in intensity over the next 36 hours to perhaps as much as 60 mph before making landfall, just short of becoming a Category 1 hurricane on the Saffir-Simpson Hurricane Wind Scale.

Tropical Storm Don already has forced several offshore energy operators to evacuate support workers as a precautionary measure. Royal Dutch Shell has evacuated about 70 non-essential personnel from production and drilling operations in the extreme southwest oil-producing region of the Gulf and from the western Gulf, where Apache Corp and Anadarko Petroleum Corp also are evacuating workers. BHP Billiton and BP Plc are evacuating support workers from central Gulf platforms. As of Thursday morning, no production has been shut, and Tropical Storm Don’s size and intensity suggest that it should not damage any platforms or bring harm to remaining workers. Don’s path will avoid the largest concentrations of production platforms, which lie south of New Orleans.

The NHC forecasts tropical storm conditions to begin within the warning area by late Friday or Friday night. The storm should produce total rainfall accumulations of three to five inches to rain-starved Texas, from the central Texas coast westward into south central Texas. Isolated areas could receive as much as seven inches. Additionally, a modest storm surge of one to two feet can be expected, mainly along the immediate coast near and to the northeast of where the center makes landfall. This area also will be accompanied by large and damaging waves. According to AIR, these conditions are not at this time expected to produce significant insured loss to the region.

Source : AIR Worldwide

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Allianz has been named the highest-ranking financial services company in the latest Best Global Green Brands.

The insurer was 21st on the list published by Interbrand, one of the world’s leading brand rating companies, rising 46 places from its 2010 ranking.

The report assesses brands by consumer perception of green activities and a demonstration of envi-ronmental performance. The evaluation is based on publicly available information and data with performance measured across the sector’s governance, stakeholder engagement, operations, supply chain, transportation and logistics as well as products and services.

Commenting on the report, Richard Foulerton, CSR Manager for Allianz UK, said:

“This year’s ranking clearly shows the progress that the Allianz Group has made in integrating sustainability into all areas of its business. In the UK, we have made significant strides in demonstrating our green credentials. In the last five years we have reduced our CO2 emissions by 39% per employee, introduced several sustainable claims initiatives, increased our climate-focused investment portfolio and continued our support of corporate charities and staff volunteering programmes.”

He adds: “Allianz UK is also a founding member of ClimateWise, a collaborative insurance initiative which aims to respond to the risks and opportunities of climate change, chaired by our CEO Andrew Torrance. All of these activities have helped to increase public perception of our green performance and are enabling us to achieve our goal of being a trusted partner for all our stakeholders.”

Source : Allianz

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Scottish Life has welcomed the recent paper “Delivering value to middle Britain”, published by the Finance & Technology Research Centre (F&TRC), for stimulating discussion about the future of pension advice for those who fall outside the high net worth bracket.

Lorna Blyth, Investment Marketing Manager at Scottish Life, said:

“The F&TRC paper should be praised for raising the issue of providing pensions advice to the mass affluent1 at a time when many commentators suggest advisers should disengage from the sector.  While acknowledging that advisers will often want to continue providing a service to individuals who are not “high net worth”, the paper raises a number of important points about the economic realities of delivering that advice.  These include the requirement for ongoing reviews as well as investment solutions and support activity.

“To keep advisers’ costs – and therefore client charges — as low as possible, the most obvious solution for the “mass affluent” is a guided investment approach with automatic rebalancing.  This significantly cuts the adviser’s costs and also provides a consistent asset allocation approach with consequent compliance benefits.  This model can be delivered to the client by using either a platform or a life office.  However, as the F&TRC paper points out, use of a platform places more demanding obligations on the adviser, because of the requirement for due diligence and suitability templates which have no direct equivalent if a life office is selected.”

At present, there is no easy way for IFAs to compare the cost of using a platform with the cost of using a life office.  However, Scottish Life has developed a calculator which enables us to provide advisers with an indicative cost comparison between our Pension Portfolio and their choice of platform.

Lorna Blyth added:

“Scottish Life is not suggesting that switching pensions onto a platform is wrong.  But we strongly believe that it’s certainly not always the best choice for the client, in terms of costs versus investment returns.  Stimulating the debate, about how advisers can ensure they are delivering the most cost-effective solution to each individual client, can only be a good thing for the market as a whole.”

Source : Scottish Life

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Figures from the Association of British Insurers show that detected insurance frauds have more than doubled in the last five years.

The figures highlight that in 2010:

– Insurers uncovered 133,000 fraudulent insurance claims – 2,500 every week – up 9% on 2009. The value of these claims was £919 million, also up 9% on the previous year. Over the last five years both the number and overall value of insurance frauds detected have risen by over 100%.

– The most common frauds involved home insurance with 66,000 bogus or exaggerated claims detected, followed by dishonest motor insurance frauds with 40,000 frauds uncovered. Motor frauds were the most costly, totalling £466 million.

– The value of savings from detected frauds represented 5% of all claims, compared to 4% on 2009

Cheats uncovered by insurers include:

– A claim for back injuries apparently sustained from a fall while working in a nightclub was rejected when Facebook images showed the claimant performing gymnastics, and training for a charity run.

– A woman’s claim for facial injuries she said resulted from a falling toilet roll holder in a fast food outlet was rejected when it was shown that the holder would have had to have fallen upwards to cause the injury claimed.

– A man claimed for a ‘lost’ engagement ring. His ex partner said that she was never given a ring as they had never been engaged. On the same day the man said he had suddenly found the ring.

– A claim by a woman for the loss of a £2,000 watch after a night out was rejected when the photograph she provided of her allegedly wearing the watch turned out to be that of a friend.

– A claim for injury said to be caused by falling over a wall was rejected when it was proved that there was no wall at the scene of the alleged incident.

It is estimated that insurance fraud costs £2billion a year, adding, on average, an extra £44 a year to the insurance bill for every UK policyholder.

Nick Starling, the ABI’s Director of General Insurance and Health, said: “Insurers are working harder than ever to protect honest customers against fraud.

The savings made by weeding out fraudulent claims would otherwise end up being paid for by honest policyholders through higher premiums.

“Fraudsters continually look for new ways to con insurers, so we are upping our game. Early next year we will be setting up a national Insurance Fraud Register, which will contain details of all known insurance cheats. And at the same time the first ever national police insurance fraud investigation unit will begin its operations, making it harder than ever to commit insurance fraud.”

Glen Marr, Director, Insurance Fraud Bureau comments: “Fraudsters will increasingly find the insurance industry a hostile environment. The IFB is committed to supporting insurer efforts to systematically root out and tackle fraudsters. At the IFB we have access to a significant volume of industry data, use sophisticated and powerful analytical software, work in partnership with insurers, law enforcement and regulators, and have no shortage of reports being received from consumers of their knowledge or suspicions of those concerned with defrauding the industry, through our Cheatline facility.

“We would urge anyone with information on any type of insurance fraud to support industry efforts to root out the fraudsters, by calling the IFB free and confidential Cheatline on 0800 3282550 or by using our online reporting facility at www.insurancefraudbureau.org/report. Reports to Cheatline can be completely anonymous if necessary. It’s important to underline that some of those concerned with insurance fraud, are also involved in criminal activities where there is harm to local communities”.

Source : ABI

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Swiftcover.com recent research shows almost a quarter of Brits will not take summer holidays due to financial pressure, mounting workloads and fear of being made redundant.

The research, conducted as part of swiftcover.com’s quarterly Life Index – which rates the nation’s feelings across all aspects of life – also found that of those who would be taking a holiday this year, many would be likely to have to work during their time off: five million said that they will check their emails daily, while 1.5 million will have to carry out work duties while on holiday. Moreover, 1.25 million UK holiday makers will make “regular” calls to their office, and 1.3 million chose a destination that would allow them to work from holiday.

Asked why they will forgo their holiday, the majority (66 per cent) cited financial pressures as being the main reason, while more than half a million (580,000) said that they were worried about job security and wanted to commit more time to work. Meanwhile, 550,000 of those who would not be taking a holiday blamed the threat of redundancy, and said that they needed to be seen to be working in the office.

Amanda Edwards, senior marketing manager at swiftcover.com commented: “The country is still gripped with concern by economic conditions so Brits are understandably worried about the impact having a holiday may have on their jobs. According to our research, not only are huge numbers of people sacrificing their holidays to fend off the threat of job loss, but those going away for a break are having to report back to the office on work while away.”

Those aged 45 to 54 years old are most likely to sacrifice their holiday this year, with 41 per cent missing out; compared to 28 per cent of 16 to 24 year olds and nearly a third (32 per cent) of 25 to 34 year olds. However, savvy 25 to 34 year olds are four times more likely to choose a destination that allows them to work while on holiday than older travellers, enabling them to work while on holiday and avoid having to stay in the office.

Edwards concluded: “Summer holidays are a chance to relax and recuperate after a period of hard work, and the benefits of taking time off are well-documented. Brits working full time are entitled to at least 28 days of paid leave, and using the time off to relax or travel will broaden your horizons, open your eyes to new things and allow you to return to work feeling more productive and focused.”

Source : Swiftcover.com