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Fitch Ratings has affirmed Condor Lebensversicherung-AG’s (CL), Condor Allgemeine Versicherungs-AG’s (CA) and Optima Versicherungs-AG’s (OV) Insurer Financial Strength (IFS) ratings at ‘A+’. The agency has also affirmed Optima Pensionskasse AG’s (OP) IFS rating at ‘A-‘. The Outlook for all ratings is Stable. These companies form the Condor insurance group (Condor). Fitch has simultaneously withdrawn CA, OV and OP’s ratings as the ratings are no longer considered by Fitch to be relevant to the agency’s coverage.

The affirmation reflects the successful integration of Condor into R+V insurance group (R+V) following the latter’s acquisition of Condor. Fitch expects that Condor will play a key role in generating business via independent financial advisors (IFAs) for R+V. Condor derives its insurance business solely through IFAs, while R+V distributes its life products mainly through cooperative banks. Fitch currently views Condor as very important to R+V.

For life insurance, CL’s new business volume increased 18.5% to EUR454.2m in 2010, higher than the German market average. Fitch expects a further strong increase in new business volume in 2011. CL’s net investment return rate (4.4%) was in line with the German life insurance market average in 2010.

In non-life insurance, CA’s gross written premiums (GWP) increased by 5.7% to EUR97.5m in 2010 while the German non-life insurance market grew by 0.5%. The gross combined ratio increased to 102.0% from 94.9%. CA was hit by a single large claim in extensive coverage line and the harsh winter affected the home insurance line. Motor insurer OV’s GWP increased 1.4% to EUR24.7m. OV reported strong underwriting profitability despite Germany’s motor competition. OV had a gross combined ratio of 90.5% in 2010 while the motor market is expected to report a gross combined ratio higher than 105%.

Fitch views Condor’s capitalisation as strong. As part of Condor’s rating review, Fitch also assessed the credit quality of R+V. Under Fitch’s group rating methodology, Condor benefits from a one-notch uplift from its standalone credit profile. However, a change in CL’s strategic importance within R+V could result in a downgrade. Due to the relative size of CL within R+V, an upgrade of the rating is unlikely in the near term.

Wiesbaden-based R+V is one of the top ten insurance groups in Germany. R+V is a non-listed company 74%-owned by DZ Bank AG (‘A+’/Stable), Germany’s largest central bank of cooperatives. DZ Bank AG had total assets of EUR383.5bn at end-2010. R+V had GWP of EUR11.1bn in 2010 and total assets of EUR64.8bn at end-2010. CL reported GWP of EUR212.0m (2009: EUR236.1m) in 2010 and had total assets of EUR3.2bn (2009: EUR3.1bn) at end-2010.

Source : Fitch Ratings

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Risk Management Solutions announces a comprehensive upgrade to their Europe Windstorm Model, featuring significant advances to all aspects of windstorm modelling in the region. The model now offers complete, seamless coverage across 15 countries – including three new Eastern European countries, Poland, Slovakia and the Czech Republic – providing clients with a consistent view of risk and new insights into portfolio diversification opportunities.

Since the last model update in 2006, RMS has examined over two million individual claims, integrating lessons from damaging windstorms including Kyrill, Emma, Klaus, and Xynthia, to update building vulnerability for all lines of business in every country, providing deeper insight into windstorm damage across the region.

Recent improvements in computing technology have enabled greater complexity of modelling and precision of meteorological forecasting models. Using 100 times more computing power than was previously available, windstorm simulations have been determined using an advanced Global Climate Model, which generates physically realistic events. “To our knowledge, version 11.0 is the only example of such a comprehensive and realistic event set available in a commercial catastrophe model,” said Stefan Beine, senior director at RMS. “We used advanced modelling techniques to broaden the range of possible events that could occur and produce highly detailed storm footprints.”

As a result of the revisions, the model now also includes 135 historical storm reconstructions from the past 40 years, helping to provide a more comprehensive basis for validating historical loss estimates. Additionally, a new windstorm clustering methodology enables companies to assess the sensitivity of model results to multiple events in a given year, for example in years like 1990 and 1999 when a series of windstorms occurred. This methodology enhances companies’ understanding of tail risk and can better inform pricing for reinsurance treaties based on aggregate losses.

“The enhancements to our Europe windstorm model will ultimately empower companies to make more realistic capacity allocation and capital management decisions, as well as help to determine appropriate reinsurance structures and pricing,” said Ryan Ogaard, senior vice president of Model Solutions at RMS.

As a result of the changes and a more comprehensive event set – particularly high-frequency, low-severity events – RMS expects to see increases in the average annual loss in most regions, more closely matching historical experience. With the addition of small storms, which are not generally considered to be catastrophe events, the model now represents a more complete view of loss from the range of windstorms.  Individual portfolios will differ considerably depending on the region and line of business.  Tests by RMS on over 100 portfolios show a wide range of change impacts, both increasing and decreasing, across return periods.

“Europe windstorms are a complex phenomenon, and the region contains a diverse array of geographic features, building practices and market conditions. All of these factors combine to create a wide variety of model result impacts that are highly dependent on a company’s unique risk profile,” said Mr. Ogaard.

Source : RMS

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Aviva Europe announces that it has appointed Doug Brown as chief risk officer. Mr Brown will join Aviva Europe’s executive committee and will report to Aviva Europe chief executive Igal Mayer with a functional reporting line to Aviva plc chief risk officer Robin Spencer.

Prior to joining Aviva, Doug worked for MetLife International (previously Alico) since 2004, most recently as senior vice-president and global head of bancassurance. His previous roles with Alico include regional president, UK & Ireland and chief executive officer, UK branch.

He has also held senior roles with AIG Life of Canada, Gilliland Gold Young Consulting and began his career at The Great-West Life Assurance Company. As a graduate and Fellow of the Society of Actuaries and Canadian Institute of Actuaries, Doug brings with him significant experience in international insurance and will be a strong addition to our leadership teams.

Igal Mayer, chief executive of Aviva Europe said: “I’m delighted that Doug has agreed to join us as CRO of Aviva Europe. Doug brings significant experience in international insurance and will be a strong addition to our leadership team.”

Robin Spencer, chief risk officer of Aviva plc said: “Creating value from the risks we choose to take is central to Aviva’s continued success. Doug’s leadership and broad commercial skills are perfectly suited to supporting the delivery of this agenda in a Solvency II world.”

Source : Aviva

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The BGL Group announces a move into the life insurance market with the launch of a new level term life cover product.

Budget Life Insurance is the UK’s first ‘instant’ life insurance policy to be made available to customers buying general insurance and removes the need for buyers to go through a lengthy application process or undertake a medical examination. Underwritten by protection specialist Ageas Protect, the new cover is available to customers who purchase home or motor insurance from BGL’s in-house Budget brand.

With recent industry research indicating that over half of UK adults have no life cover, the new offering aims to provide instant and affordable cover for customers. The product is designed to make the buying process as simple and clear as possible – with a guaranteed acceptance policy via a quick ‘two click’ online purchase process with no underwriting questions. The cover is also available via the Budget contact centre. Budget Life Insurance runs independently from the customer’s home or motor cover and with prices from just £4.99* per month, is currently offered with the first three months’ cover free.

Andy Bord, Managing Director of Budget, commented: “As a business we are constantly looking for new opportunities to meet our customers’ needs. There is a worrying trend towards UK households being underinsured, so we have made our new offering as simple as possible so that it has wide appeal. The existing long and in-depth process of buying life insurance can often put consumers off. We know from our own research that some insurers can ask up to 600 questions before agreeing to cover an individual.”

Andy continued: “Life insurance is often just linked to a mortgage, however, people also need to think about their other commitments. This is the first ‘instant’ life product sold in this way on the market and its flexibility will ensure customers get the level of cover they require quickly.”

Martin Werth, Managing Director at Ageas Protect, added: “The launch of Budget Life Insurance is a significant step in our objective of bridging the protection gap and building consumer confidence, by removing unnecessary insurer complexity. Budget Life Insurance is very simple and easy to understand and, as an add-on to Budget’s general insurance, is accessible to a large number of consumers and can be purchased in minutes. We are confident this simple affordable cover will resonate with Budget customers. This latest collaboration further builds on Ageas UK’s already successful relationship with the BGL Group.”

Source : BGL Group

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New research shows Brits turn to credit once their cash runs low, and that is an average of 21 days after they’ve been paid each month.

Research from moneysupermarket.com reveals the monthly habits of consumers when it comes to using credit cards. A quarter of Brits, some 11 million people, are turning to their credit card as a fallback when they run out of funds in their current account. Of this group, whilst the average fallback day is 21 days after pay-day, one in ten (9 per cent) pull out the plastic less than 15 days after they have been paid, meaning they will be funding the remaining fortnight on their cards.

One in three (35 per cent) Brits use a credit card each month for everyday items, such as food, groceries and petrol, but say they are confident at repaying the amount they use the following month. A further third (32 per cent) say they use their credit card for big ticket items, such as holidays, which they say they may not be able to repay immediately.

Kevin Mountford, head of banking at moneysupermarket.com said: “With most of the population feeling the pinch at the moment, it’s no surprise to see so many people reliant on credit so early in the month. However, unless you plan this properly and know you’re able to pay off your balance, this can be a dangerous trap to fall into. If you’re the type of person who doesn’t pay off their card every month, you need to look at the steps you can take to reduce monthly expenditure before turning to credit products. Budgeting is crucial at the moment and people will be amazed at how much cash they can free up each month by simply sitting down and going through their finances.

“For those who simply cannot make ends meet without using a credit card, the important thing is to ensure they are borrowing in the cheapest way possible and not incurring any charges. Firstly they need to shop around and make sure they are on the best deal to suit their needs, and switch if necessary. A card offering an interest free period on purchases is a good solution, especially for larger items, but if you are using a card to tide you over until the end of the month, still try and pay it off when you get paid, otherwise the outstanding balance will soon escalate. Anyone taking out one of these products should set up a direct debit to pay back at least the minimum each month or they risk losing the promotional rate if they miss a payment.”

The research further revealed that the Welsh are the quickest to turn to credit, bringing out their cards, on average, ten days after pay day, whilst those in the East of England last the longest, holding off, on average, until 27 days after they’re been paid.

Men are also less likely to turn to credit in the first two weeks after being paid, with just six per cent whipping out their flexible friends compared to 13 per cent of women. However, men are more likely to use credit for big ticket items which they may not be able to repay immediately – 35 per cent flash the plastic each month compared to 29 per cent of their female counterparts.

Kevin Mountford continued: “Using a credit card for larger purchases can be a good way to budget, but anyone going down this road needs to ensure they are using an appropriate product and more importantly, are able pay back the balance. Again, a card that offers interest free purchases such a good option for anyone looking for some short-term financial flexibility. However, consumers using interest free products in this way need to create a repayment plan and stick to it as when left unattended, credit card debt has a habit of lingering and costing a packet over the long run.”

Source : Moneysupermarket.com

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A Eurobarometer survey show 4 out of 10 households buy an Internet, phone and TV service package from a single provider.

The survey also found that 65% of people limit their mobile phone calls because of cost and that calls over the Internet are becoming increasingly popular. The E-Communications Household Survey was carried out between 9 February and 8 March 2011 using a sample of 27,000 households that are representative of the EU population.

One in four respondents considered that their Internet download/upload speeds do not match the conditions of the contract they signed (a problem also identified in the Commission’s net neutrality Communication) and one in three said they have experienced connection breakdowns. New EU legislation applicable from 25th May 2011 requires service providers to give customers comprehensive and accurate information in advance – before they sign a contract – on minimum service quality levels including actual connection speeds and possible limits on Internet speeds. The Commission is currently investigating broadband speeds and other transparency and quality of service issues.

Neelie Kroes, European Commission Vice President for the Digital Agenda, said: “Consumers are telling us loud and clear that they are worried they are not getting the Internet speeds and quality of service they have been promised. National authorities must take appropriate measures to ensure that operators respect new EU rules requiring to them to be transparent on connection speeds and service quality. If this should not be sufficient, I would not hesitate to take further action in the form of more prescriptive guidance, or even legislation if it is needed.”

The survey also found that EU citizens are concerned about data privacy – 88% of respondents said they would like to be informed if their personal data collected by the telecom provider was lost, stolen or altered in any way. Under new EU rules applicable from 25th May 2011 telecoms operators and Internet service providers must take strong security measures to protect the names, email addresses and bank account information of their customers, along with data about every phone call and Internet session they engage in. The new rules also require operators, if security is breached and/or personal data is lost or stolen, to inform the data protection authorities and their customers without undue delay.

The survey also found the following:

– 98% of EU households have access to a telephone and an increasing proportion of households (now 89%) have access to a mobile phone. 62% have both fixed and mobile phones, while only 9% rely on a fixed line alone.

– 98% of EU households have television. The most popular means of TV reception is cable (35%) followed by digital terrestrial (30%, an increase of 7 percentage points since November-December 2009).

Bundles – packaged telecoms services

– 42% of households subscribe to a “bundled” service, while 61% of all Internet access and half of fixed telephony services are purchased as part of a bundle.

– 41% of households said the main advantage of these packages was the convenience of having a single service provider and a single invoice. 33% believed that a bundle is cheaper than paying for each service separately.

– However, 16% consider that bundles offer some services they do not need and another 10% raise concerns about the lack of transparency and clarity in relation to the cost and conditions of each service.

Switching services

– Six out of ten households say they have never considered switching to another service provider.

– 77% of households are ‘inertial’, that is they would never switch their bundle. 12% of households are “active switchers” and another 12% would like to switch but are hindered for one reason or another.

Among the obstacles to switching are the risk of a temporary loss of service, the risk of having to pay for more than one provider during the switching process and the lack of clarity about the steps required for switching.

Quality of services a major concern

In addition to the problems found with Internet connection speeds and connection breakdowns, one in four respondents reports difficulties in connecting to the mobile network and a similar proportion reports that mobile communications have been cut off whilst on a call.

Concerns about affordability of mobile and smartphone use

– 65% of respondents are now limiting their mobile calls due to concerns about the costs (up 4% since the last survey of November-December 2009)

– Half of those with Internet access on their smartphone limit their use due to worries about cost.

– Calling over the Internet for free or at a cheap rate, from a computer or a WiFi-connected device, is growing, with 28% of households with Internet access making this type of voice call, a 6% increase since the last survey.

Mobile only

27% of households only have access to the public telephone network from a mobile phone – a proportion which has increased in 17 Member States since the last survey and which reaches levels higher than 50% of households in five countries (the Czech Republic, Finland, Latvia, Lithuania and Slovakia).

What is the Commission doing?

The Commission has asked the Body of European Regulators for Electronic Communications (BEREC) to undertake a rigorous fact-finding exercise on barriers to changing operators, blocking or “throttling” Internet traffic (for example voice over Internet services), transparency and quality of service. The Commission will publish evidence from BEREC’s investigation by the end of 2011, including any instances of blocking or throttling certain types of traffic. If BEREC’s findings and other feedback indicate outstanding problems, the Commission will assess the need for more stringent measures.

The Commission is also conducting a study to compare advertised and actual Internet speeds. Data will be available at the end of 2011.

 

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European financial markets felt panic Tuesday July 12, as investors were worried the debt crisis would spread to Italy and Spain. Finance ministers only offered only vague new support measures which contributed to the panic.

Stocks, the euro and government bonds tumbled, with the yield on 10-year Italian bonds hitting 6.01 per cent — more than one percentage point higher than where it was just two weeks ago. The Spanish equivalent jumped to 6.28 per cent, up from 6.1 per cent at the open.

Higher yields indicate investors see the countries as increasingly risky to lend to, and make borrowing more expensive for the government, increasing its debt problems.

The Eurozone’s euro750 billion bailout fund has managed to temporarily rescue smaller Greece, Ireland and Portugal from such interest rate spirals. But Italy and Spain, the third- and fourth-largest economies in the Eurozone, are widely seen as too big to bail out should they run into serious trouble.

The euro lost 0.9 per cent, dropping to $1.3906, while stock markets throughout Europe traded lower. The Milan exchange’s main index lost 4.4 per cent while Madrid’s fell 3.2 per cent.

Late Monday night, Eurozone finance ministers came up with sketchy proposals to let the rescue fund buy back government bonds, and to reduce the interest rate and repayment periods for its loans. Those measures would take some heat off bailed-out countries, if implemented.

But details were lacking, and analysts at Commerzbank dismissed the proposal as a “tranquilizer” unlikely to calm market turmoil.

Ministers are still working on a second bailout package that would secure Greece from default through 2014, following a first bailout last year that failed to put the country back on its feet.

“A solution for the Greek debt problem needs to be found urgently,” the Commerzbank research note said. “Only in that case is there a chance that the debt crisis does not spread further.”

Eurozone ministers turned Tuesday to another part of their anti-crisis strategy, stress tests aimed at forcing weak banks to raise more capital. Strengthening banks is key because they are major holders of government bonds issued by the financially troubled countries, and a default or restructuring could deal a serious shock to a financial system still in recovery from the crisis that followed the collapse of U.S. investment bank Lehman Brothers in 2008.

“We will be discussing possible measures regarding the stress tests, and what we will have to do in case some of the banks would not succeed in this test, that is why these tests are being done,” said Luc Frieden, Luxembourg’s finance minister.

Asked if he thought some banks would fail the tests, he said, “I don’t know but I think if you do stress tests it’s to be prepared for all situations.”

A round of stress tests last year were considered too easy, papering over problems at Irish banks that later had to be bailed out.

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An exceptional accumulation of very severe natural catastrophes makes 2011 the highest-ever loss year on record, even after the first half-year. Already, the approx. US$ 265bn in economic losses up to the end of June easily exceeds the total figure for 2005, previously the costliest year to date (US$ 220bn for the year as a whole). Most of the losses were caused by the earthquake in Japan on 11 March.

Altogether, the loss amount was more than five times higher than the first-half average for the past ten years. The insured losses, around US$ 60bn, were also nearly five times greater than the average since 2001. First-half losses are generally lower than second-half losses, which are often affected by hurricanes in the North Atlantic and typhoons in the Northwest Pacific. The total number of loss-relevant natural events in the first six months of 2011 was 355, somewhat below the average for the previous ten years (390).

It is very rare for such an extreme accumulation of natural hazard events to be encountered as in the first half-year. Munich Re Board member Torsten Jeworrek: “The role of insurance in such a case is to bear these seldom catastrophe losses and, by so doing, assist with the rebuilding effort and the economic recovery of the region concerned. We were not surprised by any of the events when seen as single events, since they were within the range of what our risk models led us to expect. The accumulation of so many severe events of this type in such a short period is unusual, but is also considered in our scenario calculations. Thanks to our risk know-how and financial strength, we are able to exploit business opportunities that arise following the increased demand for risk transfer, which is often accompanied by a decreasing supply of capacity.”

Most of the losses were accounted for by the earthquake in Japan on 11 March, which caused an overall economic loss of US$ 210bn. The 9.0 magnitude earthquake, the strongest ever registered in Japan, is also the costliest natural catastrophe on record – even more expensive than Hurricane Katrina in 2005, which caused economic losses in the order of US$ 125bn. Nevertheless, the currently estimated US$ 30bn claims burden for the insurance industry will not attain the level of insured losses caused by Hurricane Katrina.

The Japanese quake was also the biggest catastrophe to occur in the first half of 2011 in human terms. At least 15,500 people lost their lives and thousands are still missing following the earthquake and the subsequent tsunami, which devastated entire cities along the northeast coast of Japan.

The quake on 11 March occurred under the sea to the east of Honshu, the main island, some 350 km northeast of the Tokyo conurbation, and was followed 35 minutes later by a similarly severe (7.9 magnitude) aftershock, which caused even greater losses in the Tokyo area than the main earthquake. Experts had expected a strong quake in Japan for some time, but involving some other location instead.

Anselm Smolka, Munich Re earthquake expert: “Major quakes always shift stresses in adjacent areas, making it more probable that a strong quake could occur under the sea to the east of Tokyo or a moderate-magnitude earthquake at a depth many kilometres directly under Tokyo in the coming years. Nevertheless, the probability of the most extreme scenario, a powerful quake south of Tokyo at the entrance to Tokyo Bay, is no greater than before.”

The severe earthquakes that shook the city of Christchurch, New Zealand, in February and in June (the third time since autumn 2010) are not connected with the Japanese quake. Economic losses from the 6.3 magnitude earthquake on 22 February in particular were very high, amounting to approx. US$ 20bn, of which more than US$ 10bn was insured. This was due to the fact that the ground motion was amplified by the reflection of seismic waves off an extinct volcano complex situated nearby. There was also widespread ground deformation. Moreover, buildings that had sustained damage in September 2010 were now completely destroyed by the tremors.

In terms of weather-related natural catastrophes, the southern and midwest US states were hit by several exceptionally severe series of tornadoes in April and May. The extreme series of severe weather events can largely be explained by the La Niña climate phenomenon. As part of this natural climate oscillation, atmospheric disturbances from the northwest recurrently move over the central states of the USA and meet humid warm air in more southerly and easterly regions. Under such conditions, extreme weather events are more probable than in other years. It is therefore no coincidence that the number of tornadoes registered in 2011 up to the end of June – approx. 1,600 – is virtually at a record level, i.e. only marginally below the current record year, 2008, which was also affected by La Niña.

Peter Höppe, head of Munich Re’s Geo Risks Research: “Overall the accumulation is nothing unusual in La Niña years. The statistical increase in the number of tornadoes over the course of time is mainly the result of better documentation.”

Most of the severe thunderstorm-related hazards are local events, which cause serious damage over a small area but are not comparable to events like severe hurricanes. However, the total loss amount from the tornado series is substantial. In the case of the two most severe series, which occurred at the end of April and in the third week of May, the overall economic losses amounted to approx. US$ 15bn, with insured losses an estimated US$ 10bn.

Also strongly influenced by the La Niña phenomenon, a number of extreme weather-related natural catastrophes hit the Austrialian continent in the first half of 2011 as well. Firstly, in Queensland in northeast Australia, where the area north of the city of Brisbane suffered widespread floods following the heaviest rainfall for decades. For the first time in state history, all three major rivers flooded simultaneously.

The first big flood occurred at the end of 2010 but the flooding continued well into January 2011. Brisbane itself was also severely hit although, contrary to what had been feared, the Brisbane River flood waters remained around a metre below the record level of 1974. Altogether, hundreds of thousands of homes and businesses were flooded and large open-pit mines had to be temporarily closed. The overall economic losses of the several events came to approx. US$ 7bn, of which US$ 2.5bn was insured.

Queensland also suffered its first Force 5 (maximum-strength) storm in nearly 100 years when Cyclone Yasi made landfall on 3 February, bringing wind speeds of over 280 km/h. Although smaller localities were primarily affected by the windstorm, the losses were substantial. The agricultural sector was badly hit, this being a region with large banana plantations. However, the major cities of Cairns and Townsville for the most part escaped significant damage. The overall economic losses amounted to around US$ 2bn, of which approximately half was insured.

“One factor that stood out was that this year saw the highest sea temperatures ever measured off the coast of Australia, which are contributors to these weather extremes. Although this is linked to La Niña, temperatures were higher than in previous La Niña years”, said Höppe.

Source :  Munich Re Press Release

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The Bank for International Settlements said sovereign debt crises are expected to widen to more countries, and public debts are more likely to be viewed as risky assets.

“Looking forward, sovereign risk concerns may affect a broad range of countries,” said the bank for central banks.

“In advanced economies, government debt levels are expected to rise over coming years, due to high fiscal deficits and rising pension and health care costs,” it added.

Emerging economies are not immune, as their vulnerability to external shocks and political instability could have occasional impact on their sovereign debt.

“Overall, risk premia on government debt will likely be higher and more volatile than in the past,” noted the BIS.

“In some countries, sovereign debt has already lost its risk-free status; in others, it may do so in the future,” it added.

The recent financial and economic crises have since given way to debt crises in smaller eurozone countries, such as Greece and Ireland, which have had to turn to international bailouts as borrowing from the market had become too costly.

In the United States, meanwhile, President Barack Obama is to convene crisis talks Monday in a bid to raise the $14.29 trillion US debt limit, so as to stave off a debt default.

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The Government is launching a consultation into employment services for disabled people and seeking views on the recommendations put forward by RADAR Chief Executive Liz Sayce.

The Government is also publishing its response to the Sayce Review, ‘Getting in, staying in and getting on’, which recommends that employment support should be focused on the individual and not the institution, so disabled people can access jobs across the economy – rather than in segregated employment.

The review also recommends improving and expanding Access to Work – which gives financial help for support workers, interpreters, equipment and other practical support to enable disabled people to get and keep jobs.

Overall, the available funding for specialist disability employment support currently helps around 65,000 disabled people each year.  However, there is potential to significantly increase the number of people who can be helped, so that the same level of funding could help nearly 100,000 people, according to Sayce.

RADAR Chief Executive Liz Sayce said:

“The work aspirations of disabled people have changed. People want the chance to work in every role from hairdressing to engineering, in every area of the economy. That is why I recommend support that goes with the person – by opening up the Access to Work programme so disabled people can have the same choice of jobs as everyone else and improving support to people with fluctuating conditions, those working in small businesses, and people seeking work experience and internships.

“There was a consensus amongst disability organisations that segregated employment is not the right model for the 21st Century. There is the potential to help around 35,000 more disabled people through the changes I am recommending, by spending the money we have more effectively and ensuring people who are most disadvantaged get more effective support.”

Responding to the Sayce Review and launching the consultation, Minister for Disabled People, said:

“We’ve been clear that the amount of money going into employment services for disabled people is being protected throughout this spending review period.  The Sayce Review put forward a number of recommendations about how this money could be better used, to support thousands more disabled people, giving them maximum choice and control over the services they receive.

“If implemented in full, the Sayce recommendations would have a significant impact on how support is delivered and so before taking decisions in these areas, we are seeking views through a public consultation and I would encourage everyone to get involved.”

Sayce would see Access to Work improved and expanded, using funding released from reform of Remploy and Residential Training and over time, moving towards a single specialist disability employment programme.

The specific recommendation to form a cross-government Ministerial group to oversee a new strategy for disability employment has already been accepted.

Access the consultation on the recommendations in Liz Sayce’s independent review “Getting in, staying in, and getting on” at: www.dwp.gov.uk/sayce-consultation

Disability organisations and disabled people have welcomed the Sayce recommendations:

Paul Farmer, Chief Executive at the mental health charity Mind, said:

“In particular we welcome the recommendation to make Access to Work more widely available. People with mental health problems are often excluded from traditional disability support systems, despite having one of the highest want to work rates of any disability group. Currently, only one per cent of the budget is spent on people with mental health problems, denying many people access to a valuable resource which could support them on their journey to gain and retain employment.”

Dr Rachel Perkins, Chair of Equality 2025, said:

“The system that has grown up historically is not equitable. It does little for people most likely to be out of work – people with mental health conditions, learning disabilities or autistic spectrum disorders – and it serves far more men than women. We need a system that supports individuals to get any job we choose: after all who wants to pack boxes just because you are disabled?”

Mark Goldring CBE, Chief Executive Mencap, said:

“We can do much more to help people with disabilities into work in a way that directly benefits them and the wider society. Less than 10% of people with a learning disability are currently employed but we know that most want to work. With modest help it is possible for many more people to work in open employment alongside their non disabled colleagues. This is the way that policy and practice should take us.”

Mike Adams, Chief Executive Essex Coalition of Disabled People, said:

“Putting support in the hands of disabled individuals will empower far more people to get on at work and to participate fully in society than happens now. And there is nothing more powerful than learning from what other disabled people have found most useful. Disabled people’s user-led organisations can have a major role in implementing the important recommendation on peer support.”

Source : DWP

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Aon Benfield reports that catastrophic losses in the first quarter and Solvency II are driving the need for insurers to boost their understanding of non-modelled perils. In response, the Aon Benfield UCL Hazard Centre is hosting a seminar entitled ‘Getting to grips with non-modelled perils’ on 20 July to focus on the hazard and vulnerability characteristics of tsunamis, volcanoes and landslides that insurers should know and consider when assessing their risks.

Tsunamis generated by the Japan and Chile earthquakes, plus the disruption caused by the Icelandic and Chilean volcanic eruptions, are recent illustrations of why insurers need to better understand how non-modelled perils could impact their portfolios. Estimates of risk must include how these perils contribute to insurance losses and how they link to modelled perils, such as earthquake and windstorm.

Paul Miller, head of International Catastrophe Management at Aon Benfield Analytics, said: “It’s crucial to understand what exactly catastrophe models do and do not model. In Japan, for instance, we have seen considerable losses from non-modelled sources, especially the tsunami and the knock-on implication affecting contingent business interruption. At Aon Benfield we work closely with insurers to identify and account for non-modelled perils, ensuring they have a more accurate view of their overall catastrophe risk.”

The Aon Benfield UCL Hazard Centre, a member of Aon Benfield Research’s academic and industry collaboration, is working with Aon Benfield to apply scientific and technical knowledge in model development and catastrophe management to create a more accurate picture of insurers’ overall catastrophe risk.

Dr Steve Edwards of the Aon Benfield UCL Hazard Centre, added: “The seminar is designed to highlight the important characteristics of the key non-modelled perils, which insurers should know and consider when assessing their risks. For example, around 80% of damaging tsunamis are produced by earthquakes, but other significant sources include volcanic eruptions, volcanic island collapses and submarine landslides. We are working closely with the insurance industry to understand what research and knowledge are needed – regarding both tsunami hazards and the vulnerability of insured assets – in order to produce useful and accurate tsunami catastrophe models.”

Source : Aon Benfield

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Aon Corporation has announced the appointment of Greg Besio, a senior executive of the firm since 2007, as Chief Human Resources Officer. Besio replaces Jeremy Farmer, Senior Vice President and Global Head of Human Resources, who will serve as a senior adviser to Besio as part of a previously planned retirement transition.

“The commitment to our 60,000 global colleagues and to developing our talent has never been greater,” said Greg Case, President and Chief Executive Officer of Aon. “Greg Besio has been an active and key participant in Aon’s most important strategic business priorities since joining our firm, and I am delighted that he will now lead our global HR function and drive our talent strategy.”

Since joining Aon, Besio has led a number of strategic initiatives and has served in various roles, including head of global strategy, chief information officer, and chief administrative officer, where both human resources and information technology reported to him. Most recently, as executive integration leader, Besio has led the integration of Aon-Hewitt, the leading human resources solutions firm. Prior to joining Aon, Besio led Motorola’s Mobile Device Business’ global team of 4,500 software developers, a role he assumed after leading Motorola’s corporate strategy team.

“Aon is dedicated to being the best in the world in developing talent, both for our clients and for our firm,” Besio said. “Aon has an unparalleled commitment to building for the future, and we understand the critical role our firm can play in the global economy by creating the right environment and best practices to develop, attract and retain the very best talent in our industry in order to serve our clients.”

Regarding Farmer’s transition, Case said, “On behalf of all Aon colleagues, I want to thank Jeremy for his tremendous dedication to our firm and for his leadership and guidance of our global HR team. Over the past eight years, Jeremy has helped lead our firm through many changes, including the mergers with Benfield and Hewitt Associates, as well as numerous market and regulatory changes. I appreciate very much his willingness to stay on as an adviser on HR issues to Greg Besio and our executive team.”

Source : Aon

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A British man weighing 22 stone (139  kilograms, 306 pounds) launched a court appeal Monday against a decision to  refuse him state-funded obesity surgery because he is not fat enough.

Tom Condliff, 62, says he needs stomach surgery to save his life, but the  state-run National Health Service refuses to fund a laparoscopic gastric  bypass operation.

The High Court refused to quash the decision in April, and Condliff took  his fight Monday to the Court of Appeal, in what is expected to be a two-day  hearing.

The former policeman became obese due to drugs he takes to treat long-term  diabetes. He takes 28 different drugs and uses breathing masks and inhalers.

In April, the court heard that his body mass index, at more than 40, was  below the threshold of 50 at which his local health authority in  Staffordshire, central England, would pay for surgery.

In that hearing, the judge said Condliff had tried non-surgical ways to  lose weight but had failed, adding that everyone agreed surgery was  “clinically appropriate” for him.

However, the judge ruled the NHS had not breached the article of the  European Convention on Human Rights under which Condliff had lodged his claim.

Britain has the highest obesity level in Europe, with 24.5 percent of  adults classed as obese, according to a study released in December by the  European Commission and the OECD. The European Union average is 14 percent.

London, July 11, 2011 (AFP)

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JLT Property Insurance has launched a new website that allows solicitors buy unoccupied property insurance n a more efficient way.

JLT is the endorsed insurance partner of the Law Society, and the two organisations have worked closely together to ensure the new JLT Property Insurance website gives solicitors the features they need to manage their insurance accounts on their clients’ behalf. Solicitors can log in securely to view policies, print documents and adjust property insurance on behalf of their clients through a customised account zone.

James Pickering of JLT Property Insurance said: “Our new website was developed with our clients firmly in mind and aims to make the solicitor’s job of buying property insurance easier. In addition it also helps the beneficiaries who are left to deal with an empty property and want peace of mind that the building is covered as quickly and painlessly as possible.”

Neil Skinner, Business Development Manager of the Law Society said: “It was important to us to offer more flexibility to our members in terms of how they access insurance services, and this new website does just that, empowering solicitors to buy their own insurance quickly and with less effort. This is invaluable to the busy solicitor where time is precious.

“The flexibility of the service is also a plus with solicitors, who are now able to make changes to the account immediately upon a client’s instruction.”

The site also provides educational content to enable solicitors to learn more about the insurance cover and how it could benefit their clients.

JLT Unoccupied Property Insurance provides buildings, contents, Property owners Liability and legal expenses insurance on empty and tenant occupied properties. Policy cover starts from just a three month period, with cover available immediately via the new website or by phone. The cover has no warranties, therefore there are no inspections or forms, or requirements for alarms or to drain down the water systems or switch off utilities. As standard, there is £2,500 of legal expenses cover for the removal of squatters.

Source : JLT Property Insurance

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In a report published today, Monday 11 July 2011, the Commons Business Innovation and Skills Committee says it has concerns over the Government’s ability to deliver on its strategy to support UK exports: a key part of the Government’s strategy to support the UK’s recovery from recession.

The Committee welcomes the direction of the new strategy, which has gone some way to address business concerns. It also contains some innovative policies and a clearer focus across Whitehall on trade promotion.

However, the Committee was unimpressed with the pace of the Department’s policy formation. In particular it was unimpressed with the delay in publishing the UKTI’s strategy for business support and the time taken to appoint both a Trade Minister and Chief Executive of UKTI.

The report voices the Committee’s concerns about the Government’s ability to deliver on the strategy given the reduction in funding available to the Department and its delivery organisations.  It highlights the risk of reductions to the UKTI’s budget, services and trade advisers. While it welcomes the Government’s ambition to make UKTI a more entrepreneurial organisation, the Committee remains unconvinced that it will be able to attract the right people from the private sector given these constraints.

The Report concludes that it is early days for a new trade strategy, a new Trade Minister and a new Chief Executive of UKTI. Given the funding constraints faced by UKTI successful delivery of the strategy represents a significant challenge. Its success can only be measured by positive outcomes for business and we will judge the Government’s strategy in that light.

Adrian Bailey, Chair of the Committee said:

“The Government has recognised the importance of UK businesses, especially SMEs, to sustaining the economic recovery. The Department and UKTI play a key role in supporting them as they move into overseas markets. They have delivered a good strategy, but we are not convinced that they have matched this with sufficient resources.

We all know that Departments have significant reductions to their budgets and BIS is no exception. However, we are not convinced that cutting the budget for business support is the right approach. If UKTI fails in its role as the key government support for business then the economy as a whole will suffer. This cannot be allowed to happen and the Government will need to convince us that it can deliver with less”.

Copies will be available to members of the press in the Parliamentary Press Gallery, and to witnesses at the Committee’s offices at 7 Millbank.

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Activity in Scotland’s private sector economy expanded at a solid pace, increasing slightly since May according to the latest Bank of Scotland PMI. However, with new business increasing only marginally for the second consecutive month, job creation stalled. Meanwhile, cost pressures eased further, in part leading to the weakest rise in output prices so far this year.

Private sector output expanded in June for the sixth month in succession. With growth of activity picking up in both the services and manufacturing sectors since May, the headline seasonally adjusted Bank of Scotland PMI climbed to 53.3 from 52.2 in May, and was also above the long-run series average.

Despite reporting the first fall in new business for six months, Scottish service providers continued to expand activity solidly and at a slightly faster pace than their goods-producing counterparts. Growth of output in the manufacturing sector was only moderate, but above the long-run series average nonetheless. A marginal rise in new orders in manufacturing offset the fall in new business reported by the service sector.

Lacklustre demand resulted in only a marginal rise in employment in June. Furthermore, with the exceptions of Northern Ireland, Wales, and Yorkshire & Humber – where headcounts either decreased or were unchanged – Scotland saw the slowest rate of job creation of all surveyed UK regions. Nevertheless, employment has now been rising for five months in a row.

Reflecting trends in new business received, staff numbers in the service sector fell slightly in June, but increased in the manufacturing sector, albeit only marginally. This expansion of capacity enabled goods producers to reduce levels of outstanding business at a relatively solid rate, and faster than Scotland’s service providers.

Input cost inflation cooled again in June, dipping to another low for the year so far. That said, growth of purchase prices in Scotland remained sharp and above the UK-wide average. According to anecdotal evidence, the key drivers of cost increases were fuel and utilities.

In line with slower cost growth, output price inflation eased further in the latest survey period. This primarily reflected only a modest increase in tariffs by service providers.

Donald MacRae, Chief Economist at Bank of Scotland, said: “June saw the sixth consecutive month of growth this year in the private sector of the Scottish economy with growth in both the manufacturing and services sectors.  However, marginal growth in new business and job creation suggest business is going through a “soft patch” with subdued growth in the second quarter of this year decelerating below that of quarter one.

“Input cost pressures are abating.  However growth of purchase prices remained sharp primarily due to cost increases for fuel and utilities. Trends in the service sector changed little since May, with activity in business services and travel, tourism & leisure expanding, while financial services contracted for a second month running. Growth in travel, tourism & leisure was the strongest since August 2007.”

Source : Bank of Scotland

 

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A recent report from the Insurance Information Institute (I.I.I.) shows homeowners in the US should take time to review their home insurance coverage, as Tropical Storm Arlene will come into life early this week.

Arlene, the first named storm of the 2011 Atlantic hurricane season, serves as a reminder for homeowners to be aware of any hurricane deductibles that may be incorporated into a homeowners insurance policy, the I.I.I. said.

Home insurance policies in many coastal states in the U.S. have deductibles that vary depending on the severity of the storm.

“Due to increased coastal development and greater hurricane risk, hurricane deductibles were created to help keep private sector property insurance coverage available and affordable by having the policyholder share more of the risk with their insurer,” Loretta Worters, vice president, I.I.I., said in a statement.

Hurricane deductibles differ from standard homeowners insurance deductibles in that they are a percentage of the insured value of the covered house. Deductibles for standard home insurance coverage, on the other hand, are typically static amounts (e.g. $500).

“It’s important for homeowners to read their insurance policy, understand what coverage they have and make sure to have funds set aside to cover the deductible so they can get back to normal should a disaster strike,” Worters said.

According to the I.I.I. the following states permit insurance companies to include hurricane deductibles in homeowners insurance policies: Alabama, Connecticut, Delaware, Florida, Georgia, Hawaii, Louisiana, Maine, Maryland, Massachusetts, Mississippi, New Jersey, New York, North Carolina, Rhode Island, South Carolina, Texas and Virginia.

Source : e-wisdom.com

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British Gas, owned by Centrica, is putting up its domestic gas and electricity bills from 18 August.

Gas bills will rise by an average of 18% and electricity bills by an average of 16%, costing an extra £190 a year for the average dual fuel customer.

The company blamed the rising wholesale cost of gas, which has gone up by 30% since last winter.

In June, Scottish Power announced it would raise the cost of gas by 19% and the cost of electricity by 10%.

British Gas Managing Director, Phil Bentley, said its bills were being driven higher by the fact that the company buys 50% of its gas on the international wholesale market.

“We are buying in a global energy market and have to pay the market rate,” he said.

“Rising wholesale costs is an issue facing all energy suppliers,” he added.

Centrica had already warned that it was likely to raise prices this year. In May, the company said its customers were not paying enough to reflect the increased cost of gas on the wholesale markets.

The latest rise in energy bills, which is likely to be followed by other big energy suppliers, comes after a round of increases last winter which saw British Gas put its charges up by 7% in December.

 

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Feedback from advisers and increasing demand for more investment and retirement options has prompted enhancements to the Secure Advantage range of variable annuities.

Important new features include lower minimum initial payments, a new range of index funds, and greater flexibility on qualifying ages.

Changes to the Secure Advantage range of Lifetime Income and Protected Capital Plans, which are provided by AXA Life Europe and distributed by AXA Wealth in the UK, are aligned to the recent Finance Act changes and offer IFAs and their clients a wider choice of remuneration options (including an ‘RDR-ready’ nil-commission charging structure).

Enhancements to the Secure Advantage Lifetime Income Plan:

– A new range of six index funds and four index asset allocation portfolios is now available in addition to the actively managed range

– Minimum investment age lowered from 55 to 45

– Minimum initial investment is lowered from £50,000 to £25,000

– Clients are able to invest up to 55% in equities whilst still maintaining a guaranteed minimum income for life

– Retirement Solution (personal pension) clients are able to defer crystallisation of their retirement benefits. This provides valuable flexibility for clients in the ‘pre-retirement’ phase, i.e. seven to 10 years before retirement.

Enhancements to the Secure Advantage Protected Capital Plan:

– Maximum investment age increased from 64 to 75

– Retirement Solution clients may now remain in the plan past the age of 75, following the removal of the requirement to convert to an annuity or ASP at age 75

– Minimum initial investment is lowered from £50,000 to £25,000

– Product options simplified to offer a single capital protection guarantee with upside potential and death benefit

– Retirement Solution clients have the option to crystallise their plan value during the guarantee period and take their pension commencement lump sum if they are over age 55.

Both product versions are available under three tax wrappers – Offshore Investment Plan, Personal Pension or Trustee Investment Plan.

David Thompson, Managing Director of AXA Wealth UK Distributors says: “Since we successfully launched Secure Advantage in late 2010 we have been evaluating what enhancements could be made to increase the appeal of the product. The active feedback we have been getting from the market is extremely positive so I am pleased we are able to bring to market these new features within the range.”

Simon Smallcombe, Head of UK Variable Annuity Sales for AXA, comments: “The response so far has been very strong and with these additional elements I am confident we can bring this exciting proposition to a whole new range of advisers and their clients in the UK.”

Source : AXA

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