Tuesday, November 26, 2024
Home Authors Posts by Barbara karouski

Barbara karouski

Profile photo of Barbara karouski
1629 POSTS 0 COMMENTS

0 1

Spain threatened Wednesday to sue Hamburg for  damages after the German city pointed to Spanish cucumbers as the source of a  fatal outbreak of enterohamorrhagic E. coli.

Hamburg health authorities admitted Tuesday that tests on two suspect  Spanish cucumbers showed they did not carry the bacteria strain that has  killed 15 people in Germany and one in Sweden.

“We do not rule out taking action against the authorities who called into  question the quality of our prouducts,” Deputy Prime Minister Alfredo Perez  Rubalcaba told Spanish radio Cadena Ser.

“We may take action against the authorities, in this case Hamburg,” the  minister said.

Spain’s vegetable and fruit exporters estimate damages of more than 200  million euros ($290 million) a week as importers across Europe stop buying  Spanish produce because of the scare.

Madrid has demanded European Union compensation for Spain and other  producer countries hit by the crisis.

“The bacteria is not in Spain,” Rubalcaba said.

“Once the truth is re-established, what we need to do is repair the  damages, which are not small: we have lost a lot of money and a lot of our  image,” the minister said.

Authorities in the northern German city of Hamburg say they are still  searching for the source of the outbreak.

The two Spanish cucumbers tested so far came up positive for  enterohamorrhagic E. coli (EHEC) but not the strain responsible for the huge  outbreak, they said.

Madrid, June 1, 2011 (AFP)

0 0

The use of cell phones and other wireless  communication devices are “possibly carcinogenic to humans”, the World Health  Organisation’s (WHO) cancer research agency said Tuesday.

The radio frequency electromagnetic fields generated by such devices are  possibly cancer-causing “based on an increased risk for glioma, a malignant  type of brain cancer,” the International Agency for Research on Cancer (IARC)  said in a statement.

A group of 31 experts meeting in Lyon, France over the past days “reached  this classification based on its review of the human evidence coming from  epidemiological studies,” said Jonathan Samet, president of the work group.

Paris, May 31, 2011 (AFP)

0 0

Fitch Ratings has affirmed Germany-based insurers ERGO Lebensversicherung AG’s (ERGO Life) and DKV Deutsche Krankenversicherung AG’s (DKV) Insurer Financial Strength (IFS) ratings at ‘AA-‘.

The agency has simultaneously affirmed Vorsorge Lebensversicherung AG’s (Vorsorge) and Europaeische Reiseversicherung AG’s (ERV) IFS ratings at ‘A+’. The Outlooks on all the ratings are Stable.

ERGO Life, DKV, Vorsorge and ERV are operating insurance companies and 100% subsidiaries of the holding company, ERGO Versicherungsgruppe AG. Fitch has also affirmed ERGO’s Long-term Issuer Default Rating (IDR) at ‘A+’ with a Stable Outlook.

The rating actions follow the agency’s affirmation of Munich Re’s IFS rating at ‘AA-‘ (see “Fitch Affirms Munich Re IFS at ‘AA-‘; Outlook Stable”, dated 10 May 2011 on www.fitchratings.com). Munich Re is ERGO’s 100% shareholder.

ERGO’s ratings reflect its core status within Munich Re’s operations. ERGO Life and DKV are viewed by Fitch as core to ERGO in terms of their size and strategic importance. Vorsorge and ERV are viewed by Fitch as important to ERGO as defined within Fitch’s group rating methodology.

Key rating drivers for all ratings are the strategic importance of the companies within the Munich Re group and the fact that any change of Munich Re’s rating would result in a change of ERGO’s and its subsidiaries’ ratings.

ERGO is the primary insurance group of Munich Re. At end-2010, ERGO had total assets of EUR139.3bn (2009: EUR135.5bn) and reported net income of EUR355.2m (2009: EUR172.7m). The significant increase in net income was mainly due to an improved investment result. Gross written premiums (GWPs) increased to EUR18.5bn (2009: EUR17.5bn) in 2010. In non-life insurance, ERGO reported an increased net combined ratio of 97.0% (2009: 93.5%) in 2010. German life insurance GWPs were EUR5.0bn (2009: EUR4.9bn) in 2010.

Source : Fitch Press Release

0 0

Travel advice has been updated concerning Portugal this Monday to warn against the risk of violent attacks after a tourist was killed in a suspected gang attack.

Ian Haggath, 50, from the Dunston area of Gateshead, was beaten up in the Portuguese town of Faro two weeks ago and died from his injuries on Wednesday.

The Foreign Office in London said it was providing consular assistance and warned Britons of the possibility of attacks.

“We are concerned about the possibility of violent attacks and take this matter very seriously,” it said in a statement.

“We have updated our travel advice to warn against the possibility of violent attacks and are in contact with the police and local authorities.”

London, May 30, 2011 (AFP)

0 0

Germany on Monday called crisis talks amid  warnings that an outbreak of a highly virulent strain of bacteria found on  imported cucumbers is spreading after already killing 11 people.

More than two weeks after the food poisoning outbreak was first reported in  the north of the country, the number of confirmed or suspected cases has  reached 1,200, according to media reports.

There was no immediate official confirmation of the figure, but the  Stockholm-based European Centre for Disease Prevention and Control has  described the outbreak of potentially deadly strain of E. coli as “one of the  largest worldwide and the largest ever reported in Germany”.    Authorities warned against eating raw vegetables after traces of the  bacteria were found on organic cucumbers from Spain last week. But confusion  reigned on the source of the outbreak.

Enterohaemorrhagic E. coli (EHEC) can result in full-blown haemolytic  uraemic syndrome (HUS), a disease that causes bloody diarrhoea and serious  liver damage and which can result in death.

“Normally we see about 1,000 cases per year, but we’ve now had some 1,200  cases in just 10 days,” Jan Galle, director of the Luedenscheid clinic in  western Germany, told ZDF public television.

“And we know that this time the EHEC strain is especially virulent and  resistant, and has led to a very high number of HUS” cases, he added.    The Robert Koch Institute (RKI), Germany’s national disease institute,  warned people not to eat raw cucumbers, tomatoes and lettuce, especially in  northern Germany where the outbreak began.

It reported 329 confirmed HUS cases nationwide and three confirmed deaths.    But regional authorities, who have been quicker to report deaths linked to  HUS, put the toll at 11 after a 91-year-old woman in the western city of  Paderborn died Sunday.

Ten of the dead were women and 10 of the victims lived in northern Germany.    Consumer Affairs Minister Ilse Aigner was holding an emergency meeting  Monday afternoon with Health Minister Daniel Bahr and regional state  representatives to discuss the outbreak, her ministry announced.

The outbreak has also affected several other European countries, including  Britain, Denmark, Sweden and the Netherlands, though most cases appeared to  involve people who had travelled from Germany, the Stockholm centre said.    RKI president Reinhard Burger said the source of the contamination had not  yet been clearly identified.

But his organisation said last week that a study had shown that all those  affected had eaten significantly above-average amounts of tomatoes, lettuce  and cucumbers.

“At the moment, we can’t reliably say what the actual source of  contamination is,” Burger said.

Many German supermarkets and shops removed all Spanish-grown vegetables  from their shelves and Belgium also announced it was blocking cucumber imports  from Spain.

Opinions on whether the disease can be passed from person to person  differed.

“We know the EHEC can also be propagated by contact between people,” Galle  said, without providing details.

But Ansgar Lohse, from the Eppendorf University Clinic in Hamburg, where  most cases are being treated, said “we’re not yet sure there is such a risk”.

Rolf Stahl, a neurologist at the clinic, told a news conference Monday that  58 patients with HUS were currently being treated there.

“About a third have lost all kidney functions” and have had to be put on  dialysis, he added.

Doctors at the clinic said they were experimenting with a new type of  monoclonal antibodies’ drug, Eculizumab, which, while not officially approved,  had been administered to 11 patients in a bid to save their lives.

Twenty-one of the HUS patients in the Eppendorf clinic were children, aged  between 18 months and 16 years.

The clinic said the number of patients being admitted was dropping, but  warned of possible new cases as the period of incubation for the bacteria  could be as long as a week.

Berlin, May 30, 2011 (AFP)

0 0

At least 12 people have died in Germany from a  highly virulent strain of bacteria found on imported cucumbers, authorities  said Monday.

The latest reported death was that of an 87-year-old woman from the Parchim  area in northeastern Germany who was admitted to hospital on Wednesday, a  spokeswoman for the Rostock regional health authority said.

She died on Saturday.

Eleven of the 12 dead were women and all but one came from northern Germany.

Several hundred people are being treated in hospitals for  enterohaemorrhagic E. coli (EHEC) which can result in full-blown haemolytic  uraemic syndrome (HUS), a disease that causes bloody diarrhoea and serious  liver damage and which can result in death.

Berlin, May 30, 2011 (AFP)

0 0

Building cars in Germany has been the leading industry since the 19th century. It has been focusing on the development of high performance combustion engines and now has to face the new era of electrical vehicles.

The car industry, the mainstay of Germany’s economic prosperity, employs 750,000 people and is raking in profits by exporting its luxury limousines around the world.

So far, so good. But German makers have been so mesmerised by the quest to perfect the combustion engine that they are lagging behind rivals from other nations in developing and marketing electrical vehicles, which are generally acknowledged to hold the key to the future of the industry. Angela Merkel, the German chancellor, has just unveiled plans to promote the development of electric cars in Germany and the establishment of a mass market for them – but the measures are not bold enough to put Germany in the lead.

Germany is trailing the US, France and Japan in the market for electrically-powered vehicles, according to the Electric Vehicle Index, which has been compiled since last year by the business consultancy Mckinsey and the German business magazine WirtschaftsWoche.

None of the country’s top car makers is mass-producing electric cars yet. Only a few thousand such vehicles are on German roads at present, most of them as part of experimental projects. The first German-designed electric car will not enter mass production until next year with a battery-powered version of Daimler’s Smart car. BMW and VW plan to follow in 2013.

Competitors have made much faster progress. Japan’s Toyota has been selling the Prius, a hybrid electric and combustion engine vehicle, since 1997, and France’s Renault plans to launch electric cars this year. The US, France and China have launched major subsidy programmes for the new technology. In France, the state subsidises purchases with a grant of €5,000 per car.

Mrs Merkel said her government would double state support for research to €2 billion and offer tax breaks and other incentives to those who buy electric cars.

The aim is to have at least 1 million such vehicles on German roads by 2020, and 6 million by 2030.

“Our goal is to turn Germany into the leading supplier and the leading market,” Mrs Merkel told a news conference. The industry itself has pledged to invest €17bn in developing electric cars in the next three to four years.

But the target of 1 million vehicles by 2020 is not especially ambitious, given the current total of 42 million cars in Germany. And the perks being offered by the government are also modest compared with subsidies in other countries.

The government said it would exempt electric vehicles from car tax, reduce insurance premiums, allow the cars to be driven in bus lanes and grant them convenient parking spaces in inner cities. But it has refused a key demand from the manufacturers for a direct purchase subsidy of the kind being offered in France and other countries.

It is a valid argument that the development of the electric car market should largely be left to market forces. After all, German car makers have billions of euros at their disposal to fund research themselves.

But in a country famous for the absence of speed restrictions on its motorways, and where motorists are still captivated by the powerful purr of the cylinders under their bonnets, it will take a lot more than free access to bus lanes and a few euros less tax to wean people off the combustion engine.

A stronger financial incentive is needed to get the market going. Electric vehicles are still significantly more expensive than conventional ones, and their performance and range fall well short. A sizeable purchase grant would have helped give the German electric car market the boost it badly needs. Germany’s rivals will be gratified by Mrs Merkel’s lack of ambition in this regard.

Without a strong domestic market for electric cars, German manufacturers will have difficulty developing and making vehicles that are globally competitive. If other nations are offering purchase grants, Germany should follow suit.

Mrs Merkel’s reticence is difficult to understand given the solid state of Germany’s public finances and the fact that she presided over a similar grant in 2009, when the German government introduced a €2,500 payment on the purchase of new small cars to help the struggling car industry during the global economic crisis.

Given the importance of the industry to Germany, it is surprising that Berlin is not taking more forceful action to assist the growth of electric vehicles. The days of conventional vehicle technology are numbered. If Germany is not careful, the outlook for its most renowned industry will start to darken.

Source : The National

0 0

Commercial underwriting specialist Evolution Underwriting has appointed Ian Allard to the role of underwriting assistant based in the company’s Maidstone Office.

Allard has joined the company as the first of Evolution’s Insurance Professional Trainee intake.

Commenting on the appointment Paul Upton, CEO of Evolution Underwriting said: “We have embarked on a strategy of growing our own people to deal with the challenges presented by the UK commercial market. That way we can ensure that the standards of professionalism on which we built our business can be maintained for the future.

“We need people who can be taught to understand the science of underwriting and who can, from the start of their careers, focus on the absolute requirement for profitability and consistency in our approach. I am delighted to welcome Ian to the team and I am sure he will have a great career with us.”

Source : Evolution

0 0

Worries grew in Germany about  infections caused by a strain of the E. coli bacterium after authorities  reported the death of an 83-year-old and a “very unusual” number of cases.

The health ministry in the northern state of Lower Saxony said that an  autopsy was being carried out on the woman who died Saturday after suffering  from bloody diarrhoea for a week.

The woman was confirmed to have been infected with enterohaemorrhagic E.  coli (EHEC), but tests were being carried out to see if this led to her death,  the ministry said in a statement.

The Robert Koch Institute (RKI), the national disease-control and  prevention agency, said that over the past two weeks more than 80 cases of  potentially fatal haemolytic uraemic syndrome (HUS), caused by EHEC, have been  recorded.

“The number of serious cases in such a short time period is very unusual,  and the age groups affected is also untypical,” the RKI said in a statement.

Currently it is mostly adults, in most cases women, who have been affected,  whereas previous outbreaks have been in children, the RKI said. The majority  of the cases are in northern Germany so far.

In 2010, for example, there were 65 cases of HUS, of which only six were  aged 18 years or over. There were two fatalities.

According to the World Health Organization’s website, HUS is characterised  by acute renal failure and blood problems, with a fatality rate of between  three and five percent. It can also cause seizures, strokes and coma.

Around 10 percent of patients infected with EHEC could develop HUS, the WHO  said. Every year there are around 1,000 suspected EHEC infections in Germany,  the RKI said.

It added that the source of the EHEC outbreak had not yet been identified  and advised people to heat food and observe proper standards of hygiene.

Berlin, May 24, 2011 (AFP)

0 0

Commercial lines underwriting specialist Arista Insurance has appointed Stephen Robinson as development underwriter for the East Anglia region.

Stephen brings 27 years experience to the role and his appointment is in line with Arista’s strategy of placing underwriters in close proximity to brokers. The East Anglia insurance market has until now been served from Arista’s St Albans office. Stephen’s full time presence in the region will enhance broker support levels and drive new business opportunities.

Based in Ipswich, Stephen will write all classes of business and is a specialist in property and liability.  Prior to Arista Stephen worked for First Assist as underwriting manager and before that Axa, Ipswich branch, as area underwriting manager.

Charles Earle said: “We are very pleased to announce the arrival of someone of Stephen’s extensive experience to Arista.  His local knowledge and understanding of the market make him the ideal person to take responsibility for the development of Arista’s business in East Anglia.  He is obviously very well liked and respected locally, which means he is also ideally placed to cultivate key broker relationships while providing excellent levels of support to them supported by Arista’s modern systems. Ultimately Stephen’s appointment will give us greater focus and penetration among selected independent brokers in the region.”

Source : Arista

0 0

Tropical Storm Risk (TSR), which provides real-time mapping and prediction of tropical cyclone windfields worldwide and is co-sponsored by Aon Benfield, today releases its pre-season outlook to coincide with the start of the 2011 Atlantic hurricane season. The outlook anticipates Atlantic basin and U.S. landfalling hurricane activity being 25% above the long-term (1950-2010) norm.

TSR, part of Aon Benfield Research’s academic and industry collaboration, maintains its April forecast for a moderately active hurricane season. The pre-season outlook includes:

– A 55% probability of an above-normal Atlantic hurricane season; a 29% probability of a near-normal season, and only a 16% chance of a below-normal season.

-14 tropical storms including eight hurricanes and four intense hurricanes. This compares to long-term norms of 11, six and three respectively.

For U.S. landfalling activity, TSR forecasts:

– A 59% probability of above-normal U.S. landfalling hurricane activity; a 26% likelihood of a near-normal season, and only a 15% chance of a below-normal season.

– Four tropical storm strikes on the U.S., including two hurricanes. This compares to long-term norms of three and 1.5 respectively.

Three main climate factors will determine the level of hurricane activity in the Atlantic basin. Occurring in August and September, these are the speed of trade winds over the tropical North Atlantic, sea temperatures in the tropical North Atlantic, and the sign and strength of El Niño Southern Oscillation. U.S. landfalling hurricane activity is influenced by July tropospheric wind patterns over the North Atlantic and U.S, and by the level of hurricane activity occurring at sea.

Professor Mark Saunders at Tropical Storm Risk, said: “At present all main climate indicators point to the 2011 hurricane season being above-norm but less active for basin activity than 2010, and more active for U.S. landfalling activity than 2010. If a major hurricane does not strike the U.S. in 2011 it will be the first occasion going back to at least 1900 where six consecutive years have passed without such an event.”

TSR’s next hurricane forecast will be issued on 6 June. Professor Mark Saunders will also be revealing new technology to help (re)insurers manage real-time hurricane risks at an expose of valuable data for insurance and reinsurance in the Lloyd’s Old Library on the 1 June (hosted by the Lighthill Risk Network).

Source : Aon Benfield

0 0

The World Health Organisation on Monday held a  stormy discussion on the future of smallpox virus samples, which Russia and  the United States are seeking to preserve while others want them destroyed.

The question surrounding the destruction of the last official stocks of the  deadly virus held by US and Russian laboratories has been recurring at the WHO  since 1986.    Washington and Moscow want the viruses kept for scientific reasons, saying  that it is necessary to continue research on their vaccines in order to  prevent any resurgence of the transmissible disease which was eradicated in  1979.

They fear in particular that countries may have secretly kept the virus to  be used as a biological weapon.

In a draft resolution put forward Monday to the 193 WHO member states,  Russia and the US once again sought to conserve the samples, and wanted to  begin discussing a possible date for their destruction only in five years.

Many countries want them destroyed immediately however and, amid the  discord, the WHO decided to create a working group to work towards a  compromise draft.

The debate will continue on Tuesday, a WHO spokeswoman said, ahead of a  eventual vote on the resolution.

“Nothing is to be expected tonight on smallpox,” said Fadela Chaib.

“The informal working group resumed its work at 17:30 pm (1530GMT). They  will work for a couple of hours in a private session.

“They will then report back to the Committee A tomorrow morning.”

The Russian envoy said during Monday’s discussion: “We feel that we do not  have sufficient guarantees on the efficiency and the preparation of the  vaccines.”

“Destruction will be irreversible,” he added, noting that it is necessary  to be “doubly prudent on a question that concerns security of all humanity.”

“After the research, we can determine a date,” he added.    The European Union, Canada, Israel, Monaco, Colombia and China were among  countries that supported the move.

However, some 20 countries, including north African states, Iran, Thailand,  Zimbabwe and Malaysia, were strongly against the resolution, saying that  immediate destruction of the virus must be imposed.

“There is no longer scientific justification to keep these viruses,” said a  Malaysian diplomat.

“It’s been 30 years since we agreed to keep the stocks,” noted an Iranian  envoy. “It is about time to fix a definitive date” to eradicate them.

Aid groups also spoke out against retaining the virus.    Edward Hammond, an adviser to Third World Network, said smallpox was “a  question of national security for the US and Russia, hidden behind a health  mask.”

Geneva, May 23, 2011 (AFP)

0 0

Lloyd’s managing agent Whittington Capital Management Limited announced that it is sponsoring the launch of a new Lloyd’s syndicate – Syndicate 1945 will be supported by Sirius International Insurance Corporation, the Swedish reinsurer that is a member of the White Mountains Insurance Group, Ltd.

The Lloyd’s Franchise Board has approved in principle the establishment of the syndicate.  Whittington and Sirius are working with Lloyd’s through the last stage of the new entrant application process with a view to securing approval to commence underwriting business incepting on or after 1 July 2011.

The Syndicate plans an initial stamp capacity of £66 million, writing insurance and reinsurance in the accident and health and contingency lines transferred from the London branch office.  Its active underwriter will be Mike Dashfield who has headed the Sirius London branch since 1998.

Stephen Cane, chief executive officer of Whittington Capital Management, said: “We are delighted to be involved in the launch of Syndicate 1945 for Sirius.  We are sure the team will be a great asset to the market and look forward to supporting them in the future.”

White Mountains Re Ltd. President and CEO Allan Waters said, “We are pleased that  Lloyd’s Franchise Board has approved the formation of Sirius’ Syndicate 1945.  We appreciate Whittington’s expertise and guidance in the process so far and look forward to continuing the relationship as the Syndicate develops.

0 0

The new Continuous Insurance Enforcement regulation requires that car owners be insured or declare their vehicles off the road (SORN).

The Motor Insurers’ bureau launched a new TV advert, Stay Insured Stay Legal,  so motorists are aware of the new law requirements. Indeed it will be considered as an offence to posses a vehicle with out insurance or if a Statutory Off Road Notification (SORN) is not made.

This is a new regulation known as the Continuous Insurance Enforcement to prevent uninsured driving. In the long term this should help prevent further rise in motor insurance premiums if not help reduce them.

As of 20 June 2011 motorists will be affected by the new regulations. Enforcement can be done by simply comparing the Motor Insurance Database, managed by the Motor Insurers’ Bureau, and the DVLA database.

This TV campaign should raise public awareness on the government’s efforts to reduce uninsured driving. The TV campaign will raise awareness of the government’s crackdown on uninsured drivers, which will affect motorists from June 20th, making it is an offence to keep an uninsured vehicle, rather than just to drive when uninsured.

The new Stay Insured Stay Legal regulation in video :

 

0 1

Bob Atkinson, travel insurance expert at moneysupermarket.com comments on the volcanic eruption in Iceland:

Commenting on the volcanic eruption in Iceland, Bob Atkinson, travel insurance expert at moneysupermarket.com says:

“As news of the Icelandic volcano eruption hits, with it brings the same travel uncertainty as we experienced in April 2010. At this stage, it is business as usual except for flights to and from Iceland. For those who have booked a trip to Iceland, check with your tour operator or airline for the latest travel information.

“If you are travelling as part of an ATOL covered package, your tour operator will be able to advise on your total travel plans.  It is the responsibility of the tour operator to cover all costs should air space be disrupted.  Those travellers still in the UK are entitled to refunds or transfers, and for those stranded overseas will be kept in accommodation at the expense of the tour operator.

“If you have independent arrangements then you need to speak to your airline as well as hotel companies and any others you have bookings with to check your options for cancellation, refunds and changes. Check your travel insurance policy, look for natural disaster and weather related clauses and understand what is covered in the policy. This will cover for things such as loss of travel arrangements, cost of new travel arrangements and travel delay.

“Should airspace actually close, travellers are urged not to do anything without speaking to their airline or tour operator first, checking their website for further information.”

Source : Moneysupermarket.com

    0 0

    Another volcano eruption in Iceland, a repeat of last year’s major disruption to air traffic?  Even if the island shut its main airport, experts believe it is unlikely.

    The Grimsvotn volcano burst into life on Saturday in what experts said was a stronger eruption than its last outbreak in 2004. The plume from the volcano shot 20 km into the sky, forming a huge, bubbling mass which seeped above the clouds high over the North Atlantic island.

    Experts have said it will probably not cause the same kind of disruption as when Eyjafjallajokull erupted last April, grounding European airlines for days, as its eruptions tend to be smaller and the particles from it less likely to disperse so far into the atmosphere.

    Authorities halted flights then due to fears that dust and ash would get into aircraft engines and cause accidents after the cloud was blown into European air traffic lanes.

    “There is no reason to expect Grimsvotn’s current eruption to produce the volume of finely fragmented ash that caused such disruption during last year’s Eyjafjallajokull eruption,” said Open University Volcano Dynamics Group expert David Rothery.

    “There will be re-routing of some trans-atlantic flights, but I doubt that it will become necessary to close European airspace. The eruption is also expected to cause local flooding because of escape of meltwater,” he said.

    Europe’s air traffic control organisation said on Sunday: “There is currently no impact on European or trans-atlantic flights and the situation is expected to remain so for the next 24 hours.

    “Aircraft operators are constantly being kept informed of the evolving situation,” the Brussels-based organisation said.

    The Isavia civil aviation authority said it had decided to shut the island’s main airport, which is about 30 miles from capital city Reykjavik.

    “The ash distribution forecast over the next six hours shows that the ash from the volcano will spread over Iceland today, leading to the closure of most Icelandic airports as the day goes on,” it added in a statement.

    Isavia on Saturday imposed a flight ban of 120 nautical miles around the area.

    Grimsvotn lies under the Vatnajokull glacier in southeast Iceland, the largest glacier in Europe.

    When it last erupted in 2004 trans-atlantic flights had to be re-routed south of Iceland, but no airports were closed.

    Source : Reuters

    0 0

    Families are viewing auto-enrolment as a positive step towards bridging the pensions gap, according to research from the second Aviva Family Finances Report. Three quarters (74%) of family heads say they would be happy to contribute to a scheme if their contributions were matched by their employer.

    This comes in contrast to the fact that the majority of UK family heads (72%) do not currently contribute to a workplace pension, citing affordability as a major barrier. However, the report also suggests that almost all (96%) families do have some disposable income after essential purchases each month, which indicates affordability might not be the only obstacle.

    The findings were revealed in the second quarterly report from Aviva, which has been designed to better understand its customers, specifically the financial issues faced by the 84% of the UK who live as part of a family.

    The majority of UK family heads (72%) do not belong to a workplace pension scheme either through choice (20%), ineligibility (4%), a lack of knowledge (11%) or because their employer does not offer one (43%). For the one in five who choose not to belong, 40% say they simply can’t afford to (see below for further reasons).

    Reasons behind not belonging to an existing workplace pension scheme

    Reason Overall Full-time Part-time Men Women
    Can’t afford to 40% 35% 55% 31% 46%
    My company has not told me enough about it 16% 18% 15% 28% 10%
    Worried about return on investment 10% 13% 3% 6% 13%
    I have not got around to it 10% 12% 5% 9% 11%

    The age of auto-enrolment

    With the Government confirmation that auto-enrolment will be implemented from 2012, the report looked at people’s reactions to this. Just 15% of people would choose to opt out when auto-enrolled – with more men (17%) than women (14%) of this opinion.

    However, while there was much positive sentiment, the findings revealed that significant education needs to be done about the existence and benefits of the scheme. Indeed, 20% had no real thoughts on the issue and 12% were worried that auto-enrolment might not be right for them. Affordability continues to be a concern for families as 16% expressed concern as to how it might impact on their take-home pay.

    Relatively small contributions can add up

    When questioned about auto-enrolment, 74% of families said they would be happy to contribute some of their salary if this sum was matched by their employer. The most popular amount was 5% of annual salary (23% of respondents) followed by 2% and 3% of annual salary (10% and 3% of respondents respectively).

    A 5% contribution of the typical (median) UK salary of £25,879 could equate to a pension pot of £252,438 over a 44 year working life (taking into account matched employer contributions, inflation and investment growth). The current average annuity pot is less than £30,000 and this therefore suggests that auto-enrolment could be a significant step towards reducing the UK’s pensions crisis.

    Annual Pension Saving for Median UK Salary Earner (£25,879)

    % of salary contributed Contribution by employee 

    Total over 44 year working life (assuming matching employer contributions)
    Monthly Annual Total pension pot using Aviva’s pension calculator 

    (as of 9 May 2011)

    Monthly retirement income, including state pension*
    1% £22 £259 £51,716 £572
    2% £43 £517 £103,428 £773
    3% £65 £776 £155,140 £939
    4% £86 £1,035 £206,852 £1,104
    5% £108 £1,294 £258,564 £1,269
    6% £129 £1,553 £310,276 £1,435
    7% £151 £1,812 £361,988 £1,600

    *Using Aviva’s pension calculator assuming no tax-free cash is taken at retirement. Figures given are only estimates, fund values could be more or less than this, that fund values can go do as well and the value of a pension fund could be worth less than has been paid in.

    Paul Goodwin, head of pensions marketing, Aviva, said:

    “The UK is facing one of the largest pensions crises in Europe(3) so it is vital that we consider what can be done now to help customers plan their retirements for the future. As the Government has recognised by its planned auto-enrolment programme, workplace pensions have a significant role to play in meeting this challenge.

    “There is much work to be done though as only 28% of UK family heads are currently paying into a scheme. And while many people cite affordability as a reason for not joining, our research suggests that for many funds are available, but are often prioritised elsewhere.

    “A lack of understanding around pensions is also seriously hampering take-up rates, so for the long-term interests of families in the UK, all parties concerned – the government, product providers, employers and employees themselves – need to work hard to ensure that auto-enrolment is a success.”

    Source : Aviva

    0 2

    The prospects for economic growth in the UK are not as bad as some commentators would have us believe. Whilst growth has been disappointing in comparison with other economies, particularly in recent quarters where it seems to have stalled, it still bears comparison with other UK recessions. Economic recovery was not smooth following the recessions of either the early 80s or early 90s. Indeed the history of the 1991 recession shows a classic ‘two steps forward, one step back’ recovery with the level of GDP returning to its lows three quarters after hitting its nadir.

    Therefore the pause in growth witnessed since November 2010 is far from without historical precedent. Additionally, there is some doubt that growth since last summer has been as bad as numbers suggest; the construction industry GDP data in particular shows activity levels far below those that other indicators would suggest.

    What is also clear, however, is that whilst the speed of the recovery has been of a similar magnitude to the last two recoveries, it has been very poor relative to the decline in GDP running into the recession. The recovery in the early 90s may have been relatively slow, but the decline in growth from the previous peak was also slow (the economy declined by 2.5% in the 90s recession compared with more than 6% recently**). In the recent recession, the UK has also been poor in terms of international comparisons.

    Nigel Bradshaw, economist at LV= Asset Management said: “Both Germany and the US have experienced much stronger rebounds in growth with both economies now having recovered all their lost output. It seems likely that this is a result of the origin of this recession which arose from problems in financial markets. This hit the UK economy harder relative to others because of its high dependence on financial services.  In addition the fact that, in GDP terms at least, the financial services sector employs the most productive workers was detrimental to the UK. It also goes some way to explaining why unemployment has not risen to the extent that might have been expected.

    He added: “Looking forward the story has not changed. Growth will persist, albeit at sub-trend levels whilst the economy has to battle the headwinds of fiscal tightening and strong externally generated inflation.  These effectively act as a further tax on consumers, although the recent setback in commodity prices will be helpful if it persists.”

    Source : LV=

    0 5

    The Allstate Corporation announced that it has entered into a definitive agreement with White Mountains Insurance Group in which Allstate will purchase Esurance and Answer Financial for $700 million plus the tangible book value of the entities acquired at close. The total price is expected to be about $1 billion. The transaction is expected to close in the fall and is anticipated to be non-dilutive to Allstate’s earnings in the second full year of ownership.

    “Consumers today expect to have their specific needs met by their insurance companies. Our strategy is to focus on individual preferences and utilize different value propositions for distinct consumer segments,” said Thomas J. Wilson, Allstate’s president, chairman and chief executive officer. “Our Allstate agencies do an outstanding job of serving customers who want a local personal touch and prefer to purchase a branded product. Esurance will expand our ability to serve customers that are more self-directed but still prefer a branded product. Answer Financial will strengthen our offering to individuals who want to be offered a choice between insurance carriers and are brand-neutral. Allstate will be the only company serving all of these consumer segments with unique insurance offerings.

    “This transaction is also attractive for our shareholders. Association with Allstate will improve Esurance’s marketing effectiveness and it can leverage our world-class pricing and claim capabilities. This also offers us two additional sources of growth and an immediate increase in customer relationships,” Wilson continued.

    Esurance is the third-largest provider of online auto insurance quotes through an award-winning website, and combines best-in-class technology developed specifically for the needs of self-directed and brand-sensitive consumers with a 24/7 call center. It is also the third most-recognized brand for companies that sell personal auto insurance online. Over the past five years, Esurance has more than doubled policies in force and grown premiums on average 20 percent per year.

    Answer Financial serves self-directed consumers who seek a choice among insurance companies. Customers are given quote comparisons and assistance in choosing from 20 brand-name insurance companies.

    Source : Allstate Corporation

    0 1

    Michael Johnson, research fellow at the Centre for Policy Studies, joined Trevor Matthews CEO, Colin Williams director of corporate and Martin Palmer head of pensions marketing at Friends Life, for a thought leadership debate about pensions reform yesterday (18 May).

    Michael Johnson, who ran David Cameron’s Economic Competitiveness Policy Group and who wrote ‘Simplification is the key: stimulating and unlocking long-term saving’1, was guest speaker at the Friends Life Global Forum, a regular event hosted by Friends Life which brings together leading industry commentators, senior managers, employers and employee benefit consultants to discuss current challenges and new ideas from the industry.  At the Friends Life Global Forum, Michael Johnson presented his ideas about current pensions reforms and the requirements needed to meet the demands of an increasingly ageing population.

    On the issue of auto-enrolment, Michael Johnson argued that this alone will not be enough and that one of the key issues is how to get more people to save more from an earlier age, specifically ‘Generation Y’, the under-35 group.  Michael Johnson proposed that for this group, flexibility was key and that “not having a degree of controlled early access to pension funds is a mistake”. He suggested allowing early access limited to 25% of pension pot value, the rationale being that 25% is tax free at retirement anyway. This would therefore incentivise savings amongst Generation Y, and allow funds drawn out to be used perhaps with limits on fund usage.

    Michael Johnson also commented that he believed improvements were needed to NEST, which is flawed, not least because the charges are high in relation to prevailing market returns, for being mis-communicated as a pension rather than a savings product and for failing to include key groups such as the self-employed.

    Michael Johnson also suggested pensions should be more closely aligned with ISAs, which have a better ‘brand’ reputation amongst consumers.  This could include re-assessing the points at which tax relief on long term savings is received, as the significantly higher contributions made currently into ISAs demonstrates that many consumers (notably Generation Y) are not lured by upfront tax relief.

    Martin Palmer of Friends Life commented:

    “With the launch of corporate platforms employers will be able to offer greater choice of savings vehicles to employees. This variety and accessibility combined with a programme of financial education, will in our opinion help in the battle to promote the importance of long term saving as an essential consideration rather than as a box to be ticked.”

    Contributing a provider’s perspective to the discussion, Martin Palmer also explained that the role of the employer would be key in driving forward pension reform, and that it is essential the costs to business are considered alongside those of the tax benefits to individuals, with support for employers to save for and encourage employees.

    Martin Palmer also commented that it will be essential to get the launch of both auto-enrolment and NEST right and that Friends Life would provide as much support as possible to help employers and advisers adjust to the new environment.

    Source : Friends life