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    Insurance companies in China collected CNY1.022 trillion in premiums between January and November, up 11.65% from a year earlier, the state-run Xinhua News Agency reported Thursday, citing the China Insurance Regulatory Commission.

    This year will be the first that China’s insurance premiums have surpassed CNY1 trillion, the report said.

    The insurers’ return on investment in the January-November period totaled CNY195.4 billion. The average return on investment ratio among the firms was 5.91% for the period, the report said.

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    In news sure to bring a bit of Christmas cheer, the UK’s combined defined contribution (DC) pension savings have rebounded by over £103bn (or more than 25%) since this time last year, according to Aon Consulting.

    The total value of DC assets stood at nearly £505 billion at the end of November, up £16 billion compared to the end of last month. Aon’s monthly DC Pension Tracker measures the total asset value of UK workers’ DC pension accounts.

    It also tracks the income in retirement of individuals at different ages who contribute 10% of a £25,000 salary to a DC arrangement and have an existing fund (valued as at September 2007) of £15,000 for age 30 and £150,000 for ages 55 and above.

    Richard Strachan, senior consultant at Aon Consulting commented: “It’s been another rollercoaster twelve months for UK workers. The nation has seen its combined savings fluctuate from a year-low of £344bn during March to a high of £518bn during October.

    “Additionally, not only have insurance companies cut annuity rates, but ongoing fluctuations within their rates have added further confusion for the average worker trying to decide when to retire.

    “A 65 year old looking to retire can now expect to receive an annual income of approximately £8,920, which is more than 20% higher than the £7,275 they would have received in November 2008.

    “If the same pensioner had retired in February, though, they would have received an annual income of just £6,460.  Such fluctuations continue to demonstrate the uncertainty facing British workers, leading to understandable apprehension.

    “With this unprecedented volatility, it is no wonder that people feel their decisions about retirement are like throwing a dart at a map. Aon’s research* shows that in the majority of companies in the UK, more than 80% of workers automatically enrol in the default fund recommended by their employer and yet only 11%** of companies have seriously looked at the makeup of their DC scheme during the recession so far.  At this point in time, sponsoring employers should be making every effort to help staff to review their existing provisions.”

    Note:

    *About the 2009 Aon Benefits and Trends Survey:  The 2009 Aon Benefits and Trends Survey polled 650 companies across 13 sectors on their DC pensions, health and risk benefits and flexible benefits

    **An Aon Consulting survey of 70 pension scheme sponsors and trustees carried out in November 2009

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      Aviva announces the appointment of Gary Price as marketing director of its UK business. Gary will be responsible for customer insight, strategy, brand, sponsorship, communications and corporate responsibility across the UK’s life and general insurance businesses.

      The creation of this new role follows the recent announcement of a new UK organisational structure and senior management team, designed to bring the life and general insurance businesses closer together for the benefit of Aviva’s 20 million customers in the UK. The position reports to Cathryn Riley, who was appointed UK commercial director in November.

      Gary was most recently responsible for the reattribution of the inherited estate* at Aviva, which saw £470 million paid out to customers of its with profits funds. Gary joined Aviva in 2005 as director of customer experience for the UK’s life business and subsequently worked on the rebrand. He previously worked for Egg for five years in roles including customer services director and CIO and prior to that spent 20 years at HSBC gaining experience across areas including branch banking, operations, call centres and internet.

      Cathryn Riley, commercial director of Aviva’s UK business, said: “Gary will play a pivotal role in bringing a common approach to our customers, brand and communications. His customer insight and leadership skills will be a great asset as we take the UK business to the next level.”

      * The inherited estate is part of a with profits fund. It’s the amount over and above that which is required to meet realistic liabilities.

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        Cadbury said on Wednesday it had insured 500 million pounds of pension liabilities in a deal allowing it to keep control of the scheme’s assets.

        Cadbury, fighting off a hostile takeover bid from U.S. food group rival Kraft, sealed the insurance deal covering British pension obligations with Pension Insurance Corporation (PIC).

        PIC takes a premium in order to insure against the possibility that scheme members will live longer than expected. The deal is part of a wider strategy to tackle pension fund risks, a Cadbury spokesman said.

        The spokesman said the deal had been decided upon independently of the company and was not connected to Kraft’s takeover bid. “The company had no influence over the timing of the announcement as this is a Trustees matter.”

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          The US House of Representatives, tackling sky-high unemployment on the cusp of an election year, will vote Wednesday on a new jobs bill, Democratic House Speaker Nancy Pelosi said Tuesday.

          “It’s a bill that creates jobs, that meets the needs of those who are unemployed and puts us on a path to prosperity,” she said at a press conference with other Democratic House leaders.

          The package will include infrastructure projects and aid to states to help them avoid layoffs of critical public-sector workers including police, teachers and emergency workers, at a price tag of about 75 billion dollars.

          Pelosi said the House would use leftover funds from a titanic financial sector bailout package to pay for the new legislation, which comes ten months after US President Barack Obama signed a nearly 800-billion-dollar economic stimulus bill into law.

          The legislation will include six-month extensions of unemployment benefits due to run out soon and of a stopgap health insurance program — a key initiative given that most US workers are covered through their employer.

          Pelosi urged the Senate to act quickly after the House, where the sizeable Democratic House majority means the measure is nearly certain to pass, in order to make it possible for Obama to sign it into law before the president’s annual State of the Union speech, typically in late January.

          Earlier this month, official figures showed the unemployment rate fell in November to 10.0 percent from 10.2 percent, suggesting that problems in the job market had peaked.

          But Democrats worry about the impact of joblessness on their prospects in the November 2010 mid-term elections.

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            US banking group Wells Fargo is to buy Prudential Financial’s stake in a joint brokerage venture — Wells Fargo Advisors — for 4.5 billion dollars in cash by year’s end.

            Wells Fargo made the announcement Tuesday, a day after it agreed that it would repay the US Treasury Department 25 billion dollars in public money it received at the peak of the financial crisis here.

            “Wells Fargo will acquire Prudential’s interest on or before December 31, 2009,” the two groups said in a joint statement.

            Prudential Financial announced a year ago its plans to sell its stake in the brokerage venture.

            “The purchase price for Prudential’s interest is based upon an agreement between the parties on the value of Wells Fargo Advisors (then known as Wachovia Securities) on January 1, 2008, prior to the contribution of the retail securities businesses of A.G. Edwards & Sons,” the statement added.

            Prudential Chairman and CEO John Strangfeld said the company was “pleased to have reached an all-cash agreement with Wells Fargo for the settlement of our interest in the Wachovia Securities joint venture.”

            “The settlement will substantially enhance our capital position and financial flexibility going forward,” he added.

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              Net worldwide premium income of the UK insurance sector fell 18 per cent in 2008 to £215.3bn according to new research today from International Financial Services London (IFSL), the independent organisation promoting UK financial services worldwide. IFSL’s report Insurance 2009 states that insurance premiums will remain subdued in 2009 with a recovery likely to begin in 2010.

              The shrinkage of premiums written in 2008 was due to a fall in long-term premiums which typically account for around 80 per cent of insurance business in the UK. As the economy slowed, demand for long-term cover fell placing downward pressure on premium rates. According to IFSL’s report, the insurance industry is exposed to the economic downturn on the assets side through a fall in investment returns and on the liabilities side through rising claims. So far the extent of losses on both sides has been limited and most insurance companies have enough capital to absorb losses.

              UK long-term insurance premiums declined by nearly a quarter in 2008 to £168.1bn. Occupational pensions premiums saw the biggest decline, followed by life insurance. New long-term premium income in the first nine months of 2009 is down 35 per cent on the same period in 2008. General insurance premiums on the other hand increased by 8 per cent during 2008 to £47.2bn mainly a result of an increase in business from overseas.

              Gross premiums on the London Market were conservatively estimated at £24.7bn in 2008, up 13 per cent on the previous year. The one-quarter fall in marine P&I Clubs premiums during the year was more than offset by an increase in insurance companies’ and Lloyd’s premium income. Lloyd’s generated 63 per cent of London Market premiums with the company market accounting for a third and P&I Clubs the remainder. London is a key centre for international insurance and reinsurance, particularly for marine and aviation business and reinsurance.

              The insurance sector makes an important contribution to the UK economy. It accounts for 1.6 per cent of GDP and provides employment for 325,000 people including 50,000 in the London Market. Insurance net exports increased 48 per cent in 2008 to a record £8.0bn. Funds under management of UK insurance companies totalled £1.5 trillion, almost double those of any other European country.

              Marko Maslakovic, IFSL’s Senior Economist said: “The economic slowdown has shown that the UK insurance sector is sufficiently capitalised. Insurance companies have minor exposure to mortgage-related assets and losses on insurance coverage have been limited to specialised lines of business. The insurance sector has acted as a stabilising factor at a time of considerable volatility in the broader financial markets”.

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              The Law Commission and the Scottish Law Commission today publish a joint Report recommending clarification of the law about the information which a consumer should tell an insurer when taking out a policy.

              The joint Report includes draft legislation to replace the current law which is more than 100 years old and was designed for ship owners insuring large vessels rather than today’s consumer insurance market.

              Under that statute, insurers can refuse to pay out if a policyholder failed to disclose any relevant information, even if the consumer answered all questions that were asked honestly and reasonably.

              The draft Bill appended to the Report will clarify a raft of existing rules and guidance employed by insurers, the Financial Services Authority and the Financial Ombudsman Service.

              Under the recommendations:

              • Insurers must ask questions about any matter which they wish to know in order to assess the risk being insured.
              • Consumers who take reasonable care to answer insurers’ questions fully and accurately can expect to have any subsequent claims paid in full. It is only if they answer questions dishonestly or recklessly that insurers are permitted to refuse all claims and retain any premium.
              • If a consumer makes a careless mistake when answering a question, he or she might still be entitled to have some of the claim paid; a consumer’s entitlement is dependent on what the insurer would have done had it known the true facts at the time the policy was taken out.

              The Commissions’ recommendations follow a detailed consultation exercise which found widespread support for the proposed changes from major insurers, insurance brokers and lawyers as well as consumer groups.

              David Hertzell, the Law Commissioner who is leading the project at the Law Commission for England and Wales, said: “Our reforms would improve consumer protection, increase consumer confidence and enhance the reputation of the insurance industry. They have the backing of consumer groups and the insurance industry.”

              Professor Hector MacQueen, the Commissioner leading the project at the Scottish Law Commission, said              : “Although the majority of insurers already follow industry best practice, our recommendations will require the minority to follow suit as well. We think that the clarification of the rights and duties of insurer and insured alike will reduce the number of claims which are rejected unfairly.”

              The Association of British Insurers, whose members provide around 90% of domestic insurance services, has confirmed that it does not oppose reform.

              Nick Starling, Director of General Insurance and Health at the Association of British Insurers, said              : “We are pleased that the Law Commissions’ proposals to reform the law are very similar to recent codes and best practice which ensure that customers are treated fairly.”

              At Prime Minister’s questions on 11 November 2009, Jim Dobbin MP raised an issue related to the current law. The Prime Minister acknowledged that it was an area in which a change in the law was obviously required.

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              Brit Insurance today announces the appointment of Anna Pearce as Downstream Energy and Utilities Underwriter in its Marine & Energy team. She takes up her position immediately and reports to Andrew Pembroke.

              Anna joins Brit Insurance after seven years with JLT (formerly Agnew Higgins), where she began her insurance career as a broker and progressed to Account Executive and new business producer. She specialised in the structuring and placing of Power/Utility (and associated terrorism) accounts with an emphasis on North American and Canadian business. In her new role, she will focus on strengthening Brit Insurance’s power and utilities book of business.

              Andrew Pembroke, Energy Class Underwriter at Brit Insurance, commented: “Anna has excellent credentials in power and utilities. Her experience and enthusiasm will make her a great asset to our energy team as we increase our market presence in this area.”

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              As the Copenhagen summit continues this week, the head of a campaign to get Britons to cut their carbon emissions insists we can all make a difference in the fight against climate change.

              A research from Swiss Re, the international reinsurer shows that the total cost to society of natural catastrophes and man-made disasters in 2009 was USD 52 billion.

              This highlights the relationship between the insurance and reinsurance industry and the weather and climate change issues.

              10:10 aims to encourage individuals, companies and institutions to reduce their carbon footprints by 10 percent during 2010.

              Campaign founder Franny Armstrong says the idea is simple: those signing up must commit to “seriously trying” to cut their emissions by taking “immediate and  effective” action.

              “It’s not just about hitting targets, it’s all about starting on a journey, and once we get started on that journey, people will see the benefits,” she said.

              For individuals it might mean walking to work instead of taking the car, turning down the thermostat or cutting down on wasted food — small changes that can have a  big effect on the climate and save us money.

              The 10 percent target cut is in line with what scientists say we need over the next 18 months.

              Armstrong acknowledged how easy it is to feel powerless in the face of a huge problem like climate change, but she said, “for most people the 10:10 goal is achievable.”

              Over the next year, the campaign hopes to lead Britain on its first steps to becoming a zero-carbon society.

              “One of the best things is that everyone can take part, from kids at school, to parents in the workplace,” Armstrong said.

              “As more people come on board, we hope they will inspire others by example,” she added.

              Since the campaign launched on September 1, the idea has been catching on fast.

              More than 20,000 people have so far signed up as well as 1,000 schools, 100 councils and 2,000 businesses such as T-mobile, the Hay Festival and Royal Mail.

              Last month, Stoke-on-Trent became the very first city to take the 10:10 pledge.

              10:10 has picked up support from politicians including the entire cabinet, the Conservative opposition shadow cabinet and the Liberal Democrat party’s frontbench.

              Climate Change Secretary Ed Miliband is currently working to get all 423 councils in England and Wales on board.

              The movement has also gained momentum overseas with participating groups now signed up from 27 countries across Europe, the United States and Australia.

              10:10 hopes to have built up enough numbers to strengthen the Miliband’s resolve to commit the UK to big emissions cuts when at the UN talks in Copenhagen.

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              Friends Provident, the financial services company recently acquired by Resolution, has detailed the opportunities being part of a larger group creates for customers, distributors and new products in both the UK and internationally.

              In a video interview on http://www.cantos.com, CEO Trevor Matthews talks about how Friends Provident will continue with its “fix UK, build international” strategy under the Friends Provident name whilst also acting as a catalyst for consolidation in the open book market.

              “This is all about putting together active, open, vigorous writing of new business companies,” he said.

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              Standard & Poor’s Ratings Services said today that it affirmed its ‘A+’ long-term counterparty credit and insurer financial strength ratings on Dublin-based Wagram Insurance Co. Ltd. (Wagram). The outlook is stable.

              Wagram is the wholly owned, Dublin-based captive subsidiary of electric utility company Electricite de France S.A. (EDF; A+/Stable/A-1), and qualifies as a captive insurer under Standard & Poor’s rating criteria.

              As such, we rate Wagram at a level commensurate with the ratings on its parent.

              Wagram is regarded as an integral part of EDF’s risk management strategy. It is the sole captive insurer of the EDF group, and solely writes business emanating from the group. Wagram was established in 2004 in order to offer insurance cover worldwide to EDF companies. In turn, Wagram remains wholly reliant on EDF for the preservation of its competitive position and financial flexibility. Hence, Wagram’s fortunes are inextricably linked to those of EDF.

              The stable outlook on Wagram reflects the stable outlook on its parent.

              The ratings and outlook on the parent will determine those on Wagram for as long as Wagram continues to qualify as a captive insurer under Standard & Poor’s rating criteria.

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              Travelers Insurance plans to open its first office in Scotland in January 2010, the company announced today.

              The office will be located in Glasgow and will initially consist of a team of underwriting, risk management and business development staff to service the Scottish market. Travelers’ range of regionally-traded property and casualty insurance products will be available through this office to a variety of industries and professions including solicitors, architects, accountants and chartered surveyors.

              Mike Bridge, Assistant General Manager, Sales and Distribution for Travelers commented: “We are pleased to be opening a Scottish regional office to more closely service our Scottish brokers and policyholders. With this new regional presence, Travelers will be better positioned to provide our breadth and depth of insurance coverages in Scotland.”

              Travelers is currently finalising the recruitment of the team.

              Previously, Travelers supported Scottish policyholders and brokers through its existing regional offices. The company currently has offices in London, Redhill, Manchester, Birmingham, Leeds and Dublin.

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              Property owners should carry out risk management measures to protect their buildings from serious damage brought on by winter weather, says Aviva.

              With some firms closing between Christmas and New Year, water damage from burst or frozen pipes may not be detected until business resumes after the New Year, leaving the problem to escalate further.

              The number of commercial claims for frozen pipes and water leaks increase by around 20% between December and February, with claims costs rising by about a quarter (27%) more than average¹ to approx £3,100 in January. With the Met office² predicting colder spells of weather this winter, businesses need to take steps to protect their property.

              Paul Redington, property claims manager for Aviva, said: “Water damage claims tend to peak during the first two weeks of January and this could be as owners return to their premises following the festive break. However, losses don’t just occur during the Christmas break.  Any long period of closure can mean water damage can escalate where the leak remains undetected whether it is during holiday periods or even during the night or at weekends.

              “With around 300 gallons of water passing through a pipe in just 10 minutes³ the results can lead to substantial damage.

              “Companies closing down for Christmas should take some simple precautions ahead of any potential cold snap, to prevent expensive damage occurring. The damage and cost to a business as a result of water escape can be just as devastating as that of a fire or flood. A quick daily visit to premises to check all is well is the best approach. This small investment in time can save weeks of business interruption.

              “Although more sophisticated drying techniques are now supplementing the traditional methods, water can penetrate deep into the fabric of a building and the drying process must be done correctly and by competent contractors. Brokers and insurers should advise and assist in getting professional remediation contractors on site quickly.

              “To avoid the problem of water escape from the outset, plumbing systems must be up to standard. During the construction phase of any new build and during maintenance work, systems need to be properly tested and commissioned before going live and plumbers must be competent.

              “Brokers should also make sure that customers carry out regular checks and servicing of all water and plumbing systems. Automatic cut off and isolation systems should be considered in some circumstances.

              “If a business were to suffer an escape of water, being prepared can greatly limit the costs and any down-time. Having a business continuity plan in place is key to minimising the effects and getting the business up and running again as quickly as possible.

              “Sums insured must also be accurate, whilst opting for adequate business interruption cover incorporating not just the potential effect on profits, but also alternative accommodation costs or the loss of rent for a property owner whilst the property is dried out.

              “Brokers play a vital role in ensuring that businesses are fully aware of the risks and are prepared for the worst.”

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              The law says you must have motor insurance to drive. Some policies cover the replacement or repair of your vehicle, depending on the circumstances of an accident.

              You can choose from three levels of cover:

              • third party – this is the minimum legal requirement and covers you if you injure a third party (such as innocent bystanders, passengers or property), but does not cover damage to your vehicle;
              • third party, fire and theft – covers third-party injuries and liabilities, and also fire and theft to your vehicle, but not accidental damage to your vehicle; or
              • comprehensive – covers thirdparty injuries and liabilities, as well as fire, theft and accidental damage to your vehicle.

              You pay a premium depending on various factors including the make of car, engine size, your age, your sex and where you live. The higher the excess you are willing to pay, the lower your premium will be. You’ll also tend to get lower premiums if you park your car somewhere secure (in a garage overnight, for example) or if you have a clean driving licence.

              Depending on your claims history, the insurance company may offer you a no-claims discount. Some companies allow you to pay a sum to guarantee this discount.

              Bear in mind you are paying to keep the no-claims discount and not to keep your premiums at a certain level – they may still rise, for example due to a general increase in prices.

              If you use a comparison website, check the level of cover you are being offered, as the cheapest policy is not always the best.

              Check – don’t forget that motor insurance does not cover you for breakdowns – you will need to take out separate breakdown cover if you want this.


              See also :

              Cheap Car Insurance – 7 Tips To Reduce Your Car Insurance Costs

              What to do if involved in an accident with an uninsured driver ?

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              This covers the loss of or damage to the contents of your home. It includes items within your home as well as items you take outside, for example cameras, jewellery and laptops.

              Most policies will cover you against theft and fire, and give you the option to insure against accidental damage.

              You’ll need to let the insurers know of any high-value items you want covered such as expensive jewellery or camera equipment.

              Insurers may require proof of purchase or valuation certificates, so keep these safe and take photographs of the items. If they refuse cover altogether, contact an insurance broker, who will be able to find you a specialist insurer.

              Your cover may be affected or cancelled if you leave your home empty for a period of time (often as little as 30 days), or if you rent it out.

              If you rent your property through a registered social landlord such as a housing association, they may offer an ‘insurance-with-rent’ scheme. This is where you can pay for your contents insurance at the same time as your rent. Ask your landlord if they provide a scheme like this.

              Check – many insurers will offer discounts if you have a burglar alarm and/or window locks, or if you’re a member of a Neighbourhood Watch scheme.

              See also :

              What a contents insurance covers ?

              Save money by buying separate home insurance and contents insurance

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              AXA announces that a revised joint offer (the “Proposal”) was communicated by AMP and AXA to the AXA Asia Pacific Holdings (“AXA APH”) committee of independent directors on December 11, 2009.

              Further to this Proposal, the increased price offered by AXA and AMP to AXA APH’s minority shareholders is A$6.221 per share, providing a 53 per cent premium over AXA APH’s closing share price of A$4.08 on 5 November 2009. This represents a 16 per cent improvement on the original proposal of November 6, 2009.

              AXA APH’s minority shareholders are being offered A$1.92 per share in cash and 0.6896 AMP shares for each AXA APH share. The cash component has been increased by A$0.54 per share, with AMP contributing an additional A$0.10 per share and AXA contributing an additional A$0.44 per share.

              Consequently, 31 per cent1 of the consideration will be in cash, and the cash consideration is now fixed in A$, thus removing any foreign exchange uncertainty for AXA APH’s minority shareholders.

              AXA APH’s shareholders will receive AXA APH’s 2009 final dividend of up to 9.25 cents per share, subject to AXA APH having an appropriate level of capital reserves.

              The Proposal has been designed to address all significant matters raised by the AXA APH committee of independent directors in their review of the original proposal. The revised offer price is declared best and final by both AMP and AXA. The Proposal will remain available to AXA APH until December 21, 2009.

              Impacts for AXA

              Should the transaction proceed, AMP would buy AXA’s shares in AXA APH for A$6.9bn in cash and AXA would acquire from AMP 100% of AXA APH’s Asian operations for A$9.1bn in cash, with the objective of increasing its exposure to high growth markets. Net cash consideration paid by AXA would be A$2.2bn (or Euro 1.4bn), corresponding to the difference between (i) the value of 100% of AXA APH’s Asian operations, and (ii) the value of 54% of AXA APH.

              As part of the transaction, AXA APH would reimburse the A$0.7bn (or ca. Euro 0.4bn) internal loan granted to it by AXA SA and AXA would subscribe A$0.6bn (or ca. Euro 0.4bn) of lower Tier 2 subordinated debt to be issued by AMP.

              Under its new terms, the transaction would have the following impacts2 on AXA:

              • accretive on earnings per share in 2010,
              • -3 pts on Solvency I, which was slightly above 140%3 at September 30, 2009,
              • +3 pts on debt gearing4, which was 31% at June 30, 2009.

              Subject to AXA APH having an appropriate level of capital reserves, AXA would receive in 2010 a dividend for the 2009 accounting year of up to A$103 million (or Euro 64 million).

              Next steps

              The Proposal is conditional on execution of legally binding documentation and satisfactory due diligence to be completed by close of business on December 21, 2009. Should AXA APH’s committee of independent directors not recommend the Proposal, by that time, the Proposal will lapse.

              Should the transaction proceed, it will also be contingent upon its approval by AXA APH’s minority shareholders through a scheme of arrangement and the obtaining of customary regulatory approvals. These approvals are expected to occur during the second quarter of 2010.

              Note:
              (1) Based on A$6.24 per AMP share, being the Volume Weighted Average Price (VWAP) of AMP shares traded on the Australian Securities Exchange since the original proposal was announced on 9 November 2009
              (2) Do not take into account AXA’s share capital increase completed on December 4, 2009
              (3) Assuming no unrealized capital gains on the Fixed Income portfolio. This estimate has not been reviewed nor approved by AXA’s French insurance supervisor “Autorité de Contrôle des Assurances et des Mutuelles”.
              (4) (Net financing debt +perpetual subordinated debt) divided by (gross shareholders’ equity, excluding FV recorded in shareholders’ equity + net financing debt)

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              Germany’s finance minister Friday welcomed as a “positive signal” an agreement between some of the country’s top banks to adhere to a code of self-regulation on bonuses similar to G20 recommendations.

              Wolfgang Schaeuble said it was a “positive signal that the biggest German credit institutes and insurers have committed themselves in a statement, voluntarily to stick to the new standards for sustainable remuneration.”

              Schaeuble added that the measures “would cover the period before legal steps are put in place,” expected in 2010.

              Berlin plans to alter its legislation for credit institutes and oversight laws on insurance firms early in 2010, Schaeuble said, without offering more details.

              The minister’s statement came after the head of Germany’s biggest bank, Deutsche Bank’s Josef Ackermann, said that eight large German banks and the three biggest insurance firms would sign up to an accord of self-regulation.

              Ackermann said the agreement would be in line with guidelines on bonuses and salaries drawn up by the G20.

              Under the self-regulation agreement, bonuses would be “more strongly linked to the sustainable success of the bank and take the risks of the bank business better into account,” Ackermann said.

              Alongside Deutsche Bank, other major banks such as Commerzbank and Hypo Vereinsbank have signed up to the accord, as well as Allianz, the country’s largest insurance company.

              On Wednesday, Britain announced it would levy a one-off tax of 50 percent on bonuses over 25,000 pounds (41,000 dollars).

              A source said Thursday a similar measure targeting top bonuses paid to French bank employees would be introduced early in 2010.

              Schaeuble said such measures were necessary to keep the industry in check.

              “Compensation systems based on short-term success of the firm were among the causes of the global financial and economic crisis,” he said.

              “False incentives induced uncontrollably high risks — with fatal economic consequences.”

              However, speaking in Brussels at an EU summit, German Chancellor Angela Merkel said her country’s constitution meant it would be impossible for her to copy London and Paris and slap a one-off tax on bankers’ bonuses.

              Merkel said she had no choice but to rule out the idea, warning: “I cannot ride roughshod over the constitution,” in reference to clauses stating that taxes cannot be raised on individual portions of income.

              She said she favoured “guarantees to prevent taxpayers once more being asked to dip into their pockets when banks are going through a crisis,” and

              added: “That’s where a cross-border financial transaction tax comes in.”

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              Europe on Friday urged the IMF to introduce a “social” tax on banks, insurers and markets to repay taxpayers’ support during lean years with a slice of boom-time profits.

              Leaders of the European Union backed a fresh call by British Prime Minister Gordon Brown, supported by French President Nicolas Sarkozy, for the International Monetary Fund (IMF) to examine a global so-called ‘Tobin’ tax.

              The 27 member states said that an “economic and social contract” needs renewing “between financial institutions and the society they serve…ensuring that the public benefits in good times and is protected from risk.

              “The European Council encourages the IMF to consider the full range of options including insurance fees, resolution funds, contingent capital arrangements and a global financial transaction levy in its review.”

              While the language of a two-day EU summit’s draft conclusions erred on the side of caution, the inclusion of the idea — which has been kicking about since the 1970s — represents alignment between Europe’s three core powers.

              German Chancellor Angela Merkel already sought support from fellow EU leaders in September for such a proposal to be taken to a summit of the Group of 20 countries in Pittsburgh, although they refused to back her then.

              But Brown, who trails in polls ahead of a general election next year, sees an “urgent need” for a new deal between banks and society and fleshed out a range of ideas in an article penned with French President Nicolas sarkozy, aimed at American policymakers.

              A transactions tax would form part of a long-term global compact that “ensures the benefits of good economic times flow not just to bankers but to the people they serve,” they wrote in the Wall Street Journal on Thursday.

              Nobel laureate James Tobin first proposed his levy as a means of reducing speculation in global markets, and British finance secretary Alistair Darling said in November it would allow banks to contribute to world “wellbeing.”

              However, the Robin Hood-style idea received no encouragement then from the United States, whose Treasury Secretary Tim Geithner said curtly: “No, that’s not something that we’re prepared to support.”

              The G20 has already asked the IMF to study the feasability of such a measure, but the latter’s head, Frenchman Dominique Strauss-Kahn, warns that it would be “very difficult” to implement, “in fact it is impossible.”

              Due to give its report next April, the IMF sees a “better” solution — a tax which would “curb risk-taking in the financial sector” and make bankers “take fewer risks because it will cost them more, while at the same time creating a reserve fund which could be used in a crisis.”

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              DUAL Corporate Risks, a leading specialist directors & officers and professional indemnity underwriting agency for mid-market companies, has appointed Jenny Martin as its new Underwriting Director.

              With over 20 years’ experience in the insurance industry, Jenny Martin has established a first class reputation in the development of professional risks in the London Market and will assume overall responsibility for the underwriting strategy and direction of DUAL in the UK market.

              Commenting on her appointment, Russell Kilpatrick, Executive Chairman of DUAL Corporate Risks, said: “We are delighted to welcome Jenny on board. She’s highly respected within the industry and brings a huge amount of experience and good will to the DUAL team. Her appointment will bring an additional level of expertise and a strategic focus to our product range.”

              He added: “With the recent opening of our office in Dublin and the appointment of Jenny, we are now extremely well placed to take advantage of the opportunities in the professional risks market in 2010 and beyond.”

              Jenny Martin was previously a class underwriter for professional indemnity at Brit and also the company’s international legal and professional underwriting divisional director. Prior to joining Brit in 2000 she was with Norwich Union as a UK professional indemnity underwriting manager.

              She will be based in DUAL Corporate Risks’ Leadenhall Street headquarters.

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