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    Lord Levene, Lloyd’s Chairman gave few days ago (September the 15th) a speech related to the insurance industry. The dinner took place in Sir Peter Westmacott’s residence in Paris. One year after Lehmann Brothers’bankruptcy, Lord Levene talks about the economic situation, the french insurance market and its predominant role in the UK industry.

    Please find below the full speech:

    Ambassador, Ladies and Gentleman,

    May I welcome all of you to our dinner this evening and thank most warmly HM Ambassador, Sir Peter Westmacott for allowing us to hold the dinner in his magnificent residence. There are many beautiful buildings in this city but I think you will agree that this is one of the finest.

    Peter, we are very fortunate, and most grateful.

    And could I also welcome my colleague in the House of Lords, Baroness Amos, who is shortly to take up her new post as High Commissioner in Canberra.

    It is a great pleasure to be back in Paris. When I spoke at this event last September we were at the start of what would become a truly unprecedented period in world history. Exactly a year today, Lehmann Brothers filed for bankruptcy. The following day, the US Government had to pledge 85 billion dollars to save the world’s largest insurer, AIG.

    Autumn 2008 was a season of shocks, when the unthinkable didn’t just become thinkable, it happened so often that it seemed to become normal.

    I would like to take the opportunity this evening to consider what the lasting effects of the crisis may be and what the future holds for financial services.

    So where is the economy now, a year on? Autumn is not traditionally the season for green shoots, and we should be cautious about predicting recovery prematurely. Despite some recent encouraging data – more so here in France than the UK – as the Governor of the Bank of France has remarked, the situation is still fragile[i].

    But one thing is clear. This economic crisis is different. The debate is not simply a question of whether we are out of recession and into recovery. Or how quickly we can get back to business. The past twelve months have built up a huge impetus for change. Discussions about financial regulation are not just happening in banks or finance ministries or tidied away in the business pages of newspapers. Regulation has become a front page story. People across Europe – and the US – want to ensure that the autumn of 2008 is never repeated. So unsurprisingly, governments and regulators have reacted.

    It remains to be seen whether, in fact, the recent series of G20 meetings will be as influential as the Bretton Woods meetings in the post war era – the last time the international community gave as much focus to global economic systems.

    A year on from the Lehmann’s collapse, despite a glut of views and punditry, we still lack a clear vision about the future of global financial services. In my mind, one thing is clear, this vision must tackle irresponsible risk taking and address the excessive reward culture that lost touch with reality. I know that the French government has taken a clear stance on the issue of renumeration[ii]. Perhaps one of the indicators of the extraordinary world that we are living in is that a former Chairman of the IMF is now a “pay Tsar” in the French banking system[iii].

    But it is crucial that regulators remember the importance of proportionality, commerciality and workability.

    Tackling bonuses is, in my view, essentially a side show. The crucial point is to ensure that risk taking is backed up by capital and careful analysis.

    This brings me to the insurance industry. There are a number of dangers for us, in the face of all this condemnation of the financial services sector. The first is that our regulation gets tangled up with the banking industry. Insurance is not banking and we need to be treated individually. A key difference is the way that the two sectors have managed risk in recent years. Insurance is all about preparing for and managing risk, not about taking uncalculated risks!

    A measured, conservative, attitude to risk runs throughout Lloyd’s. In the way we have managed our central reserves prudently and the way we resisted the temptation to insure complex financial products that we didn’t understand. So today, we are in good shape.

    Despite this, another danger, for all of us in the industry, is that risk becomes a dirty word. I am not suggesting that anyone in the financial services should become a risk junkie, but nor should we shy away from necessary and well judged risks. Risk is an essential part of any business. If Lloyds took no risks, planes would not get of the ground, trains would not run, offices would not be built and businesses would not function.

    Security is not the absence, but the management of risk. Insurers sell security when they buy risk. And without this exchange, there will be no growth, no innovation.

    The trick, as the Solvency II regulators are no doubt finding, is getting right the management and control of the risk. And backing it up with capital. Lloyd’s historic ability to do this means that we can face the future with a good degree of confidence.

    Confidence is something which, according to UK media sources, is booming in France. Over the Summer, I saw several articles on an old theme: Can Paris become the new London?

    This reminds me of another, possibly less known example of geographical rivalry: Can Sussex become the new Champagne? According to this thesis, the soil conditions and warming climate of southern England means that English sparkling wine can reasonably bid to rival Champagne.[iv]

    I am told that some of these wines have done extremely well in blind taste tests. And I do not doubt it. But I also know that any self-respecting Frenchman will tell me it takes more than the right soil or climate. The success of the great champagne houses is the culmination of hundreds of years of technical skill and knowledge of the customer.

    The City of London is in the same position. Over the centuries, we have weathered many economic storms and financial scandals and we have stayed at the top because we have adapted, to change, to circumstance, to competition. And we will do so again. Most of you here this evening are pragmatic business people. So you probably share my doubt that I will be using English wine to toast Paris as the world’s new financial capital.

    With this piece of neighbourhood rivalry out of the way, I can say how pleased I was to see encouraging signs that the French economy has moved into growth.[v]

    This is a piece of good news for Lloyd’s. France is one of our most important markets. My main aim this evening is to emphasize how much we value our ties with you here in France. We have had an office in Paris for over sixty years, but we do not want to be too Paris-centric. France has a number of important regional financial centres with, not just the global players, but also very experienced and well organised independent brokers. We want to develop stronger ties with the provinces.

    Lloyd’s can offer long experience of operating in France as well as experience – and access – to another 200 markets globally.

    We offer a high quality, bespoke and disciplined underwriting service. The many syndicates operating in the Lloyd’s market offer a great deal of diversity, but they share at least one thing: a secure capital base which allows us to maintain our reputation of always paying out on valid claims and a common A+ rating.

    Lloyd’s combines the old fashioned virtues of prudence and discipline with innovation and creativity. We concentrate on making every line we underwrite profitable.

    The Lloyd’s brand, in many ways, resembles the Paris brand. This is a city that has dominated European history – indeed it was the global financial centre in the 19th century. Everywhere you go, you see the past, but the past doesn’t dominate. Just up the road, there is the grande pyramide – there is the arc at La Defense and, in Beaubourg, the Pompidou centre.

    The Lloyd’s building of course has a family resemblance to the Pompidou centre. They share an architect. But all these Paris landmarks tell part of the story of the city – its determination not to rest on the laurels of the past, but to keep relevant, to keep surprising the visitor.

    And this is what we strive to do at Lloyd’s. Let me [join the Ambassador] in thanking you for coming this evening. Before we dine seems an appropriate time to assure you that Lloyd’s still has an appetite for innovation and for risk. But it is the appetite of a gourmet, not a gourmand.

    Bon Appetit!

    [i] Christian Noyer, 9 September, Europe 1 radio.

    [ii] Letter of Christine Lagarde to the Financial Times, 4 September.

    [iii] Economist “Ca fait malus” 27 August.

    [iv] Telegraph “Bollinger beware: here comes a Sussex Sparkler” 28 October 2006.

    [v] Credit Agricole Economic Research Department “France; a technical rebound or a sustainable recovery” 26 August.

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    Admiral specialise in providing low cost car insurance for younger drivers, people living in cities and those driving performance cars. If any of these apply to you, why not get a quote! You could even save up to 10% online.

    Who is Admiral?

    Admiral was launched in 1993, with the aim of offering lower premiums to more people. They don’t just provide insurance for people who are traditionally seen as safer drivers. They are interested in people who currently pay high premiums, that is, young drivers, performance car drivers, people who live in cities and often a combination of these!

    They have also started to explore foreign markets and have recently launched AdmiralDirekt.de – the German direct car insurance specialist.

    Admiral is the trading name of EUI Limited. Insurance is effected between EUI Limited and certain insurers as listed on your Certificate of Motor Insurance. Its registered number is 2686904 and its registered address is:

    Capital Tower
    Greyfriars Road
    Cardiff
    CF10 3AZ

    Motor insurance policies purchased on this website are underwritten by the insurance carriers listed on your Certificate of Motor Insurance.

    The subscribing insurers’ obligations under the contracts of insurance to which they subscribe are several and not joint and are solely limited to the extent of their individual subscriptions. The subscribing insurers are not responsible for the subscribing insurer who for any reason does not satisfy all or part of their obligations.

    Contact

    Sales number: 0800 118 1611

    Switchboard: 0871 882 8282

    Fax: 0871 822 8051

    Calls to 0871 numbers will be charged at 8p per minute from BT Landlines. Calls from mobiles and other networks may vary.

    www.admiral.com

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      80% of UK insurance executives surveyed by the ABI feel that if the Government fails to improve competitiveness, there will be a drop in the number of insurance firms based in the UK. Almost two-thirds of senior management are tempted to move abroad because of the current UK personal tax system. The findings come as the ABI publishes UK Competitiveness: the way forward for insurance, its blueprint to maintain competitiveness, outlining the challenges and opportunities for the UK.

      The paper comes at a time of change in global attitudes to tax havens, especially in North America. This has led to a challenge to the traditional homes of reinsurers, in locations such as Bermuda. There is, therefore, a specific opportunity for the UK to attract a much larger share of the wholesale and reinsurance market, which currently hosts only 10% of total global reinsurance capital, with no major reinsurance company based in the UK.

      The ABI’s proposals include:

      • Introducing a corporate tax exemption for those with branches abroad encourage companies to keep or set up their headquarters in the UK.
      • Reforming controlled foreign companies rules, to recognise the importance of capital to insurance and reinsurance businesses, by moving the bias away from returns from labour, and towards returns from capital.
      • Reducing corporation tax when the fiscal conditions allow it.  71% of chief executives and finance directors of leading insurers questioned felt that the UK current rate of corporation tax was uncompetitive. In 2007, insurers contributed nearly £10bn in tax revenues to the UK, paying the third highest corporation tax of any sector.  So maintaining low corporation tax rate will help ensure companies remain in the UK, contributing significant levels of tax.
      • Ensuring that any tax changes in response to Solvency II, result in a  stable and sustainable system and to not endanger UK competitiveness against other EU locations.
      • The need for the tax loss system to address the volatility of insurance results.
      • A call for a stable, predictable tax system – with only essential changes to be made, following early consultation.
      • The link between competitiveness and personal taxes needs to be recognised. The higher rate of income tax, and restriction of tax relief on the pension contributions of high earners, reduces the attractiveness of the UK as a place to work for company executives.

      Stephen Haddrill, the ABI’s Director General, said:

      “The recession cannot be allowed to mask the challenge, but also the opportunity, the UK faces over competitiveness.  Getting it right today could reap rich rewards tomorrow.

      “The UK cannot afford to wait for a return to economic health to act  Our proposals will make sure that we can build upon an already strong UK insurance industry – one that has come through this crisis in robust shape, and is a major international player.”

      The ABI’s paper builds on the Insurance Industry Working Group report in July 2009, commissioned by the Chancellor, which outlined the need to encourage capital flows into the UK by ensuring its competitive position in the global marketplace. The UK is currently the third largest insurance market in the world.

      The survey questioned 75 CEOs and FDs from ABI member companies and Lloyd’s of London

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        Brokers tasked with reducing costs for their SME clients can now take advantage of Optima Liability from Groupama Insurances. Launched in recognition of the challenging market conditions small and medium businesses are facing, Optima Liability provides the public and employer’s liability insurance that small and medium businesses need in order to operate, without them having to buy property insurance cover.

        Optima Liability is ideal for SMEs with minimal assets or where property and liability covers are split to provide more appropriate or more cost effective cover. The policy is targeted at manufacturers, distributors, retailers, offices, professionals, property owners and clubs and associations. Key features include public and products liability up to £5m limit of indemnity, employers’ liability £10m limit of indemnity and legal defence costs in defending claims admitted under the policy.

        Malcolm Smith, Commercial Lines Director comments; “This is a clear demonstration of our agility – we’ve listened to broker feedback and responded quickly to bring to market a product that has real cost benefits and is easy to sell. In difficult times, smaller SME’s more than most will be feeling the pinch, so providing a product that ensures they have legal liability insurance without additional cover they may not need gives them more cost control. Optima Liability is perfect for businesses that don’t fit neatly into a per capita Tradesman policy, particularly smaller manufacturers and distributors. In addition, brokers can obtain a quote quickly and easily by contacting our team of experienced underwriters, ensuring the best deal is achieved and the cover meets clients’ needs.”

        “We have worked hard to make our Optima products as simple and quick as possible for our brokers. This latest solution provides real business benefits for brokers operating in today’s highly competitive and challenging SME marketplace and demonstrates our continued commitment to providing innovative products to brokers and their customers.”

        Optima Liability – The Key Features

        • Public and Products Liability up to £5m limit of indemnity
        • Employers’ Liability £10m limit of indemnity
        • Legal Defence Costs in defending claims admitted under the policy
        • Costs and expenses in defending health and safety prosecutions
        • Indemnity to principal
        • Liability arising from damage to leased, hired or rental premises
        • Liability under the Defective Premises Act 1972
        • Contingent motor liability for employees’ business use of their cars

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          A report from the Economics of Climate Adaptation Working Group released today indicates that climate risks could cost nations up to 19% of their GDP by 2030, with developing countries most vulnerable. The report concludes, however, that cost effective adaptation measures already exist that can prevent between 40 and 68 percent of the expected economic loss with even higher levels of prevention possible in highly target geographies.

          The report, titled “Shaping Climate-Resilient Development”, offers a comprehensive and replicable methodology to determine the risks that climate change imposes on economies. It provides a set of tools for decision makers to adopt a tailored approach for estimating these costs based on local climate conditions, and for building more resilient economies. These tools do not include estimates or measures for emissions reduction, which would need to be examined separately.

          By determining a location’s total climate risk – calculated by combining existing climate risks, climate change and the value of future economic development – and using a cost-benefit analysis to create a list of location specific measures to adapt to the identified risk, the Working Group was able to evaluate current and potential costs of climate change and how to prevent them. The methodology was tested in localities within eight different countries (China, United States, Guyana, Mali, United Kingdom, Samoa, India, and Tanzania), which together represent a wide range of climate hazards, economic impacts, and development stages.

          The working group estimated expected economic loss for the eight different case study regions leveraging natural catastrophe risk modeling techniques assuming current GDP growth estimates, under three different climate change scenarios – today’s climate (assuming that there is no additional impact from climate change); moderate climate change (based on the average forecast of climate change for the particular hazard in the location studied); and high climate change (based on the outer range of the climate change considered possible by 2030). The methodology is applicable in any setting where society must consider risk. For example, in Florida the report estimates an annual expected loss of $33 billion from hurricanes – more than 10 percent of GDP – under a high climate change scenario.

          Overall findings from the eight case studies showed that easily identifiable and cost effective measures – such as improved drainage, sea barriers, and improved building regulations, among many others – could reduce potential economic losses from climate change for all regions. In fact, most could deliver economic benefits that far outweigh their costs – with adaptation measures that on average cost less than 50 percent of the economic loss avoided.

          In Maharashtra in India, researchers evaluated the loss associated with drought, which amounts to 30 percent of the state’s food and grain production – even without climate change. This loss would severely impact the 15 million small and marginal farmers. By 2030, a significant drought could lead to a countrywide agricultural loss of more than $7 billion, and impact the income of ten percent of the population. With droughts historically occurring every 25 years, extreme climate change could change that to once every eight years. The case study determined a number of measures that could protect crop production and farmers’ incomes in Maharashtra including expanded drip and sprinkler irrigation, drainage construction, improved soil techniques, and crop engineering. In fact, Maharashtra can eliminate much of its expected drought loss by 2030 through low-cost measures with benefits that often exceed their cost.

          The full report is available here

          About the Economics of Climate Adaptation (ECA) Working Group

          The ECA Working Group was formed in September 2008 under the initiating sponsorship of the Global Environment Facility in coordination with UNEP to develop a framework to assist in the design of climate-resilient economic development strategies.  Swiss Re, a leading global reinsurer, was a lead contributor to the research. McKinsey & Company, a global management consulting firm, drove the analytical execution and contributed to the fact base of the report. Sponsorship and key guidance was provided by ClimateWorks, an international network of foundations focused on achieving low-carbon development; the European Commission; the Rockefeller Foundation, which brought its deep experience of building climate resilience in developing countries; and Standard Chartered Bank, a global bank with a strong emerging market footprint.

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          The commercial sector continues to resist thesharp rate increases for Directors & Officers insurance seen in the financial institutions sector, with the average premium for commercial business falling fivepercent in the second quarter, according to a new survey from Willis Group Holdings(NYSE:WSH), the global insurance broker.

          The five percent reduction is for commercial clients with strong risk profiles, Willisnoted. Reductions are smaller for those more directly impacted by the financial downturn or with highly leveraged balance sheets, and some may even be seeingslight increases in premium. This compares with double-digit percentage premium increases levied on financial institutions during the second quarter, as the fallout from the credit crisis continues.

          Based on feedback from the London market, Willis expects the commercial sector will see continued small reductions over the next three months.

          The Willis D&O Index is produced quarterly by FINEX Global, Willis’ Financial, Executive Risk and Professional Liability business, and asks D&O insurers from Lloyd’s and the London market to comment on premium rates and coverage terms for the preceding three months, as well as make projections for the upcoming quarter.

          The Willis survey also found that the commercial market continues to benefit from significant capacity for business domiciled outside of the USA, with new entrants into the market providing significant excess competition. It also shows that the fallout from the banking crisis has yet to filter through into significant claims.

          Commenting on the findings of the survey, Julian Martin, Executive Director of Willis FINEX Global, said, “Owing to the economic downturn, we are experiencing an increased level of scrutiny and underwriting analysis, meaning that is essential for renewal negotiations to begin early in order to deliver timely renewals. Despite this, policy coverage remains broad and the wealth of information now being requested of clients should be given particular attention and the specifics thoroughly analyzed. When it comes to renewal business, we would urge that all forms of No Claims Declaration should be avoided.”

          In addition to the survey results, the latest Willis Index D&O newsletter features a commentary by Jane Hickman and Ben Rose of Hickman & Rose Solicitors on how directors and officers are under increased risk due to tougher action by prosecuting agencies against those deemed “fraudulent” or “reckless.” Hickman and Rose argue that this increasingly litigious climate makes it crucial for senior employees and directors to carry their own properly tailored D&O policy.

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            Tesco Personal Finance Plc (TPF) and Fortis (UK) Ltd (Fortis) have concluded their previously announced* discussions to form a new partnership providing motor and household insurance.

            The partnership will give Tesco responsibility for retail pricing, sales and marketing, customer service and new product development providing greater control of the insurance products sold under the Tesco brand. Fortis will use its considerable expertise to provide underwriting and claims management.

            Millions of UK motorists and householders will benefit as Tesco introduces better products, keener prices and the high levels of service they have come to expect from Tesco. More than 1500 new jobs will also be created in the UK as a result of the deal.

            The partnership also includes the creation of a new entity to underwite and manage claims. Known as Tesco Insurance Limited the new entity will be owned 49.9% by TPF and 50.1% by Fortis. It will start writing business towards the end of next year.

            Both parties intend to invest capital to support the development and growth of Tesco Insurance. The amount of capital invested will reflect both parties’ respective equity proportions and may change as the business develops. Initial investments are expected to be in the region of £100m (EUR 115 million) each.

            The partnership, which will initially run until at least 2015, covers certain TPF insurance products including car, van and household insurance. This area of TPF’s business currently involves over £500 million (EUR 573 million) in annualised Gross Written Premium.

            The deal will add another 1.5 million motor and household customers to Fortis UK’s existing customer base of around 7 million people. The number of cars insured by Fortis will increase to around 2.7 million making it the second largest car insurer in the UK.**

            Tesco Insurance Limited will be managed independently from Fortis UK’s other insurance businesses.

            *Announced on Thursday 25th June 2009. You can see the original press release by clicking here
            ** Based on EMB analysis of FSA returns published in 2008

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            At the start of the World Economic Forum’s Annual Meeting of the New Champions in Dalian, Zurich Financial Services Group is warning that environmental and health risks set Asia apart from other continents. These risks should be on the forefront of businesses and policy makers in Asia.

            The warning comes in Zurich’s Asia Risk Monitor, which analyzes the risks facing public and private sector organizations in the region. The report identifies resource scarcity and climate changes as key risks, while noting that each sub-region and each country face different problems in this area. In addition, health risks are a significant determinant of overall risk levels for a large number of Asian countries, with infectious diseases and pandemic risks being key factors.

            The Asia Risk Monitor also finds that economic risks are inversely linked to the level of economic development. That is why risk mitigation requires institution building within a framework of sound corporate governance. In parts of Asia the private sector in particular needs to be mindful of gaps in corporate governance, risks related to the lack of the rule of law and incomplete institutions governing goods and capital markets.

            Commenting on the report, Geoff Riddell, Chairman of Global Corporate and CEO of Asia-Pacific and Middle East at Zurich, said: “Individual Asian countries’ risk profiles are as diverse as their economies, and may not have as much common cause as simple geography implies. However, the financial crisis of 2008 has made everyone acutely aware of how interconnected global risks can proliferate quickly.”

            Mr Riddell concluded, “understanding and tackling the risks related to the environment and health is not something an individual business, industry or country can do on their own, and Asian countries should look for natural coalition partners within and outside the region and for effective public-private partnerships in order to combat shared risks.”

            The Asian Risk Monitor, written by Zurich’s Chief Economist Daniel Hofmann, uses Zurich’s proprietary quantitative analytical framework of the Global Risk Assessment Module (GLORAM). GLORAM allows for the analysis of more than 60 specific risks and their implications for 158 countries, with a particular emphasis on those risks that are relevant for corporations with global reach.

            The report can be downloaded here

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              Aviva USA, part of Aviva plc, the world’s fifth largest insurance group, today announced the appointment of Christopher J Littlefield, as chief executive officer, effective immediately. Aviva USA is a leading provider of fixed indexed annuity and life insurance products in the US.

              Littlefield has served as Aviva USA’s chief operating officer and led the company’s operational business units including insurance administration, information technology, marketing/brand, corporate affairs, the corporate program office, legal, compliance, and facilities. He will report to Thomas C Godlasky, CEO for Aviva North America, who leads both the US Life and Annuity and Canadian Property and Casualty businesses.

              “I am very proud to make this appointment and pleased that Chris will lead Aviva’s US Life and Annuity businesses. Chris’ overall talent, experience and passion for excellence made him the right person for this CEO position,” said Godlasky. “Since joining Aviva, Chris has displayed outstanding leadership and dedication.  He was a critical member of the team that managed the acquisition of AmerUs by Aviva plc in 2006 and ensured its smooth transition. In addition, he has helped guide Aviva North America’s Life and Annuity business to an industry leadership position during historically challenging market conditions. I’m confident that Chris will lead the US team to further success in serving our distribution partners and customers.”

              Chris Littlefield expressed enthusiasm about the appointment. “I’m very excited to have this opportunity. Aviva is a tremendous and growing company with great resources, particularly its employees, distribution partners and customers. I look forward to continuing to build upon our past successes and make Aviva USA’s Life and Annuity businesses the envy of the industry.”

              Littlefield joined AmerUs Group in January 2006 as executive vice president – general counsel and secretary. He was promoted to Aviva USA chief operating officer in February 2008.

              Prior to that, Littlefield was with The Dial Corporation in Scottsdale, Arizona, where he held a number of management positions since 1998, including senior vice president; general counsel and secretary. He also served as senior vice president and general manager of one of The Dial Corporation’s major business divisions. Before then, Littlefield was an attorney with Snell & Wilmer LLP, in Phoenix, Arizona.

              Littlefield graduated cum laude with a Bachelor of Science degree in business administration from the University of Arizona. He earned a juris doctor, with high distinction, from The University of Iowa. He is a member of the board of trustees of Hospice of Central Iowa Foundation. In his new role, he will continue to be based at the US operations headquarters in Des Moines, Iowa.

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              AXA Real Estate Investment Managers (AXA REIM), the Real Estate manager in Europe with € 39.5 billion of assets under management, today announced the appointment of Dennis G. Lopez as Global Chief Investment Officer.

              Heading up all AXA REIM Fund Management activities, Dennis will be responsible for the quality and consistency of investment services as well as the performances delivered to all AXA REIM clients. Dennis will report to Pierre Vaquier, Chief Executive Officer of AXA REIM, and will join the Management Board of the Company.

              Considering Dennis’ new role, Pierre Vaquier, said: “Dennis will coordinate the management of the complete range of AXA REIM funds, and will contribute to the expansion of AXA REIM activities, bringing his global view on business and key expertise for managing our clients’ portfolios with excellence”.

              With over 23 years spent in the investment industry, Dennis has extensive experience in investment banking and Real Estate investment management and a deep knowledge of the US, European, Indian and Russian markets; he has been involved with investors from Japan, the Middle East, US and Europe.

              Dennis, a London based American, is graduated from the University of California at Los Angeles with a MBA Finance & Accounting. Prior to joining AXA REIM, he was Chief Executive Officer, Sun Real Estate, operating in UK, Russia and India since 2008. Before, he was successively Global Head of Real Estate at Cambridge Place Investment Management (2005 – 2007) and had several assignments at JP Morgan including Managing Director and Head of European Real Estate (1998 – 2004).

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              Willis Re, the reinsurance broking arm of Willis Group Holdings (NYSE: WSH), the global insurance broker, won the 2009 Analyst / Research category at The Review Worldwide Reinsurance Awards held at the Dorchester Hotel in London last week.

              The award recognised the work of the Willis Research Network (WRN), the world’s largest collaboration between the scientific and insurance communities. The WRN sponsors research posts at more than 20 leading universities, including Princeton, Kyoto, Cambridge and Bologna, to further research into natural perils, climate change, the vulnerability of the built environment and related systems, extreme statistics, financial risk, law and liability, management and economics.

              The award cited the WRN for “the most consistent objective analytical work applied to the re/insurance industry.” The judging criteria include the highest quality analytical research of a company or market sector, and the best contribution to the intellectual base of the industry. The judges were particularly impressed by the WRN’s ethos of open and collaborative research, which encourages publication of all its core research in both academic and industry arenas.

              Commenting on the award, Rowan Douglas, Managing Director of Analytics for Willis Re and Chairman of the Willis Research Network, said, “What sets the WRN apart is the integration of leading scientists with the business community to develop practical and useful outputs. This is great public recognition for our academic members, clients and market partners, as well as for Willis Re colleagues worldwide. Our thanks to all of them for making the first three years of the WRN such a success. This award is further incentive for us to make even greater progress in the years ahead.”

              The Willis Research Network (WRN), funded by Willis Group Holdings, is the world’s largest partnership between academia and the insurance industry. Willis has teamed up with more than 20 leading institutions across a full range of research disciplines, from atmospheric science and climate statistics, to geography, hydrology and seismology, to evaluate the impacts on the environment via engineering, exposure analysis and Geographic Information Systems. Additional information can be found at www.willisresearchnetwork.com

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                Aon Corporation, the leading global provider of risk management services, today released its U.S. Quarterly Market Overview for Property, Casualty, and Directors’ and Officers’ Lines. The inaugural report was generated by Aon Analytics to identify and address trends in risk and insurance and to provide clients with data to support informed decision-making in risk management.

                “In this difficult economic climate, it has never been more critical to an organization’s overall health and performance to have an effective risk management program in place,” said Warren Mula, chairman of U.S. retail for Aon Risk Services. “With Aon’s unmatched resources to deliver fact-based insights, such as those found in this report, we are best-positioned to help our clients better manage risks, overcome challenges and capture opportunities.”

                Lambros Lambrou, head of Aon Analytics, added: “Aon has taken a unique approach to maximize our market insights from the largest available source of proprietary broker data. The U.S. Quarterly Market Overview complements the firm’s monthly reports in the ongoing effort to keep our clients abreast of ever-changing market and economic conditions as well as raise awareness of the practices of industry peers and competitors.”

                The U.S. Quarterly Market Overview is comprised of three main components – property, casualty and D&O. Highlights from each section follow:

                • Property: Following a tumultuous 2008, the property market experienced mild hardening during the first half of 2009 due to the global financial crisis and previous heavy property losses from natural catastrophe events. Property schedules with little or no natural catastrophic exposures remain competitive. Insureds should expect renewed competition and modest downward pressure on rates into 2010.
                • Casualty: The casualty market remains soft and competitive with low rate decreases resulting in lower premiums for many insureds. Primary automobile experienced an average increase of less than one percent in Q2 ’09, the first increase in rate on any casualty line in several years. Soft market conditions are expected to continue into 2010. Carriers will be challenged to sustain growth in the coming years due to competition and decreasing margins.
                • D&O: The economic turmoil has worked itself through the banks, insurance companies, investment management firms and hedge funds. In the financial institutions marketplace, rates are increasing significantly, capacity is shrinking and coverage terms are tightening. On the other hand, the market for all other sectors continues to be extremely competitive with rates trending down, ample capacity and the broadest terms and conditions seen in years. Exceptions seen in the commercial realm stem from industries rife with bankruptcies. Most insureds should expect to see continued stabilization of rates in the short term, while rates for financial institutions are expected to continue to increase.

                A major dislocation of markets, radical reduction in capacity, terrorism event or natural catastrophe may affect the forecasts.

                In addition to the above insight found in the U.S. Quarterly Market Overview, Aon’s financial services group recently issued its Quarterly D&O Pricing Index, which delves deeply into the trends seen year over year for this essential line of coverage. The analysis finds that pricing increased 4.07 percent in the second quarter as compared with the second quarter of 2008. Current rates in the S&P Financials sector (banks, diversified financial, insurance and real estate) are up 14.77 percent while all other S&P sectors (service, manufacturing, technology, etc.) were flat, marking the first time in more than three years that rates did not decrease. D&O policies are typically written for a 12-month period; thus, this year-over-year comparison is a close approximation of renewal pricing and results.

                “The delicate balance between the forces holding D&O prices down and the need for rate increases could soon shift in the favor of underwriters,” said Michael D. Rice, II, national practice leader of Aon’s financial services group. “Fortunately for Aon’s clients, pricing in the D&O marketplace continues to remain at soft levels.”

                Methodology: Aon Analytics 2009 U.S. Q2 Quarterly Market Overview

                This report on property, casualty, directors’ and officers’ lines is based on data from Aon proprietary databases such as the Aon Global Risk Insight Platform(SM). Results represent placement of commercial and large account information from thousands of U.S. companies. Aon GRIP(SM) is the world’s leading global repository of global risk and insurance placement information and provides fact-based insights into Aon’s global premium flow. Aon Analytics collected and tabulated the results, provided analysis and interpreted findings.

                To access the Aon Analytics 2009 U.S. Q2 Quarterly Market Overview for Property, Casualty, Directors’ and Officers’ Lines, click here

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                AXA Diagnostics Named Exclusive Distributor for Rosetta Genomics’ microRNA-based Assays in Italy

                – AXA Diagnostics will distribute Rosetta Genomics’ three recently launched miRview™ tests in Italy

                – By leveraging unique biomarkers called microRNAs, Rosetta’s miRview™ tests can offer patients and physicians new insights on cancer

                Rosetta Genomics, Ltd. (NASDAQ: ROSG), a leading developer of microRNA-based molecular diagnostics, and AXA Diagnostics, a privately owned company that markets specialized diagnostic tests, announced today the signing of an exclusive distribution agreement in Italy for Rosetta Genomics’ three currently available diagnostic tests. Under the terms of the agreement, AXA will market Rosetta Genomics’ miRview™ tests in Italy. Samples will be sent from Italy to Rosetta Genomics’ CLIA-laboratory in Philadelphia for analysis. The terms of the deal were not disclosed.

                “This latest distribution agreement with AXA Diagnostics marks Rosetta Genomics’ entry into Europe, and we are excited to have AXA as our first partner in this region,” noted Ronen Tamir, Chief Commercialization Officer at Rosetta Genomics. “We believe that there is significant need for our miRview™ tests in Italy, as well as worldwide, and that AXA is the right partner to bring these tests to cancer patients in Italy. As we have previously mentioned, we are continuously expanding our global distribution network, and believe that by the end of the year our tests will be available in other regions as well.”

                Silvio Furino, President of AXA Diagnostics, said, “We are excited about our new relationship with Rosetta Genomics. We expect that these novel molecular diagnostic tests will provide improved diagnoses for cancer patients in Italy and that physicians will now be able to provide personalized medicine and customized treatment. This new era of high-quality healthcare has the potential to make better medical outcomes possible.”

                The following tests will be distributed by AXA Diagnostics:

                – miRview™ mets – This test can accurately identify the primary tumor site in patients presenting with metastatic cancer, as well as in patients whose tumor has not been identified, and consequently been labeled Cancer of Unknown Primary (CUP). As metastases need to be treated according to their primary origin, accurate identification of the metastases’ primary origin can be critical for determining appropriate treatment. Current diagnostic methods to identify the origin of a metastasis include a wide range of costly, time consuming and at times inefficient tests. miRview™ mets offers physicians a fast, accurate and easy-to-interpret diagnosis of the predicted primary origin.

                – miRview™ squamous – Using a single microRNA, miRview™ squamous differentiates squamous from non-squamous, non-small cell lung cancer (NSCLC) patients. When administered targeted therapy, whether currently available or under development, patients with squamous cell carcinoma of the lung have demonstrated varying response patterns ranging from a high incidence of severe or fatal internal bleeding in the lungs to overall poor response to treatment. Current methods for differentiating squamous from non-squamous non-small cell lung cancer are not standardized, are difficult to reproduce and have low accuracy. miRview squamous produces a single score that indicates whether a sample is squamous or non-squamous NSCLC.

                – miRview™ meso – This test leverages microRNA’s high specificity as biomarkers to differentiate mesothelioma, a cancer connected to asbestos exposure, from other carcinomas in the lung. As mesothelioma patients require specific treatment regimens, an accurate diagnosis is critical. Currently, there is no single diagnostic test that is entirely conclusive for this differentiation. In addition, pathological diagnosis may suffer from significant inter-observer variability, and in the absence of a single specific and reliable marker mesothelioma can be difficult to identify from other cancers. miRview™ meso is a highly accurate test that may also assist physicians to rule out mesothelioma in patients diagnosed with adenocarcinoma in the lung who have been exposed to mesothelioma-related substances, primarily asbestos particles and heavy metals.

                About microRNAs

                MicroRNAs (miRNAs) are recently discovered, naturally occurring, small RNAs that act as master regulators and have the potential to form the basis for a new class of diagnostics and therapeutics. Since many diseases are caused by the abnormal activity of proteins, the ability to selectively regulate protein activity through microRNAs could provide the means to treat a wide range of human diseases. In addition, microRNAs have been shown to have different expression in various pathological conditions. As a result, these differences may provide for a novel diagnostic strategy for many diseases.

                About AXA Diagnostics

                AXA Diagnostics is a private company located in Pomezia, Italy that markets specialized diagnostic tests. AXA Diagnostics sells over 300 diagnostic products on a direct basis in Italy and through a network of distributors in Europe. AXA Diagnostics has obtained certification for the management of its quality system according to the requirements of UNI EN ISO 13485:2004. More information on AXA Diagnostics is available at www.axadiagnostics.com.

                About Rosetta Genomics

                Rosetta Genomics (Nasdaq: ROSG) is a leading developer of microRNA-based molecular diagnostics. Founded in 2000, the company’s integrative research platform combining bioinformatics and state-of-the-art laboratory processes has led to the discovery of hundreds of biologically validated novel human microRNAs. Building on its strong IP position and proprietary platform technologies, Rosetta Genomics is working on the application of these technologies in the development of a full range of microRNA-based diagnostic tools. The company’s first three microRNA-based tests, miRview™ squamous, miRview™ mets, and miRview™ meso, are commercially available through its Philadelphia-based CLIA-certified lab. Rosetta Genomics is the 2008 winner of Wall Street Journal’s Technology Innovation Awards in the medical/biotech category.

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                Aon Benfield and PartnerRe today announce the release of the popular annual re/insurance industry report, Hazard & Risk Science Review 2009, which showcases the latest developments in the field of natural hazard and risk science.

                The Review, which is co-sponsored by Aon Benfield and PartnerRe and written by experts at the Aon Benfield UCL Hazard Research Centre, continues to focus on the four main areas of hazard – atmospheric, geological, hydrological, and climate change related. It features summaries of more than 70 scientific papers published during the past 12 months, sourced by academics from Aon Benfield UCL Research Centre and natural catastrophe experts from both Aon Benfield and PartnerRe.

                Now in its sixth edition, the report highlights that while there has not been a catastrophe on the scale of 2008’s Cyclone Nargis or Sichuan earthquake, devastating wildfires in Australia and the Abruzzo earthquake in Italy are a reminder that western developed nations are far from immune to natural disasters.

                Meanwhile, other topics in the 2009 Review include:

                • Simulations of earthquake ground motions for southern California and the Seattle area
                • Update on future tsunami threat from volcanic landslides in the Canary Islands and Alaska
                • Tsunami hazard for the Caribbean, the Oregon coast and Portugal
                • Evaluation of future flood hazard in Rome and Venice

                Professor Bill McGuire, Director of the Aon Benfield UCL Hazard Research Centre, and co-author of the report said: “In this year’s Review, we present a digest of peer-reviewed papers that address critical issues, including hazard characterisation, forecasting and modelling that, together, seek to reduce vulnerability and exposure and diminish disaster risk. Our aim continues to be to improve industry awareness and understanding of natural catastrophes and the processes that drive them, to limit the number of shocks and surprises arising from hazardous events, and to help drive more informed business decisions on a day-to-day basis.”

                Since its launch at the Monte Carlo Rendez-Vous in 2004, more than 15,000 copies of the Review have been distributed throughout the re/insurance market. The 2009 Review is available online at www.abuhrc.org, or for printed copies of both the current and previous editions, email rebecca.coombes@aonbenfield.com with your full postal address, or call (London) +44 (0) 20 7522 3850. The review can also be downloaded from the corporate websites of both Aon Benfield and PartnerRe.

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                The Rendez-Vous de Septembre in Monte-Carlo brings together the leading players in the world Reinsurance market: reinsurers, insurers and brokers, along with a large number of lawyers, financial advisors and merchant bankers, and the international press. It enjoys increasing success: 462 participants representing 24 countries gathered for the first edition in 1957, 1,300 people from 66 countries took part in 1973.

                Programme :

                SATURDAY, SEPTEMBER 5th

                • 14:30 – 20:00 »

                SPORTING D’HIVER – PLACE DU CASINO
                Registration
                (collection of files and badges)

                SUNDAY, SEPTEMBER 6th

                • 08:00 – 20:00 »

                SPORTING D’HIVER – PLACE DU CASINO
                Registration
                (collection of files and badges)

                • 09:30 – 16:30 »

                YACHT CLUB DE MONACO
                Regatta

                MONDAY, SEPTEMBER 7th

                • 08:00 – 18:00 »

                SPORTING D’HIVER – PLACE DU CASINO
                Registration
                (collection of files and badges)

                • 18:00 – 20:00 »

                Official Cocktail Party
                At the TERRACES of FAIRMONT HOTEL
                Hosted by the Direction du Tourisme et des Congrès of Monaco

                TUESDAY, SEPTEMBER 8th

                • 08:30 – 18:00 »

                SPORTING D’HIVER – PLACE DU CASINO
                Registration
                (collection of files and badges)

                • 08:00 – 09:00 »

                HÔTEL DE PARIS – SALON DEBUSSY
                Press Conference by the Jean-Philippe Thierry, Chairman of the Rendez-Vous de Septembre Organising Committee.

                • 09:30 – 11:30 »

                SPORTING D’HIVER – PLACE DU CASINO
                Presentation-debate,
                under the Chairmanship of Michel Lies, Swiss Re.

                Simultaneous translation in English and French

                WEDNESDAY, SEPTEMBER 9th

                • 08:30 – 12:00 »

                SPORTING D’HIVER – PLACE DU CASINO
                Registration
                (collection of files and badges)

                0 0

                Swiss Re strongly positioned to offer capacity, enabling clients to seize business opportunities, while maintaining a stringent focus on profitable underwriting.

                Stefan Lippe, Swiss Re’s Chief Executive Officer, said: “Since the beginning of 2009, we have significantly increased our capacity to enable clients to benefit from attractive business opportunities. At the end of June our excess capital was estimated at CHF 4.5 billion above the AA required level. With our excellent core business portfolio, nurtured by years of disciplined underwriting and active cycle management, coupled with de-risking efforts, we have a strong foundation to support our clients and grow our business in the most profitable segments.”

                Swiss Re is in a strong position to support its clients

                Throughout the financial markets turmoil, the property and casualty insurance industry has proven its resilience. Michel Liès, Head of Client Markets said: “Even when the financial crisis was in full swing, we were able to deliver capacity to our clients. This has created a lot of goodwill and positioned us well for the upcoming January 2010 renewals.”

                He added: “We are observing a broad upward trend in overall reinsurance pricing, although this varies significantly between different lines of business. While the prices on property lines of business are improving, long-tail industry segments, especially casualty, have yet to adjust to the lower interest rate environment and still do not adequately reflect years of premium reductions, and anticipated loss trends. We therefore continue to steer capacity away from casualty into the more profitable property lines of business.”

                Delivering innovative solutions for the clients

                Michel Liès emphasised that when underwriting markets are mixed, a simplistic “broad-brush” approach across industry segments, or clients, is not sufficient. “Strong client-specific analyses and solutions are called for, and Swiss Re works closely with its clients to develop both traditional and innovative solutions that respond to their individual needs.”

                Examples where Swiss Re delivers innovative solutions for clients and other stakeholders include the development of agricultural insurance in emerging markets, and in particular the recent cooperation with the Chinese government. In Europe, Swiss Re is working together with the Pan–European Risk Insurance Linked Service company (PERILS) to develop a European windstorm index that will facilitate risk trading and further broaden the ILS market.

                Stefan Lippe concluded: “Our top priority is to deploy capacity and innovative solutions for the benefit of our clients and shareholders. Conditions in the reinsurance market have been improving throughout 2009. In a difficult market environment, we have demonstrated that Swiss Re’s client franchise is powerful and that we deliver value to our clients.”

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                Swiss-based insurer and reinsurer Glacier Group reported a 4% increase in pretax net income to $26 million (18.1 million euros) for the first half of 2009 from $25 million in the same period last year.

                Financial highlights:

                • Gross written premiums (including reinstatements) of USD 314.1 million (H1 2008: USD 372.0 million). The reduction in premium writings year to date reflects the non-renewal of participation in Glacier’s Lloyd’s vehicle and a planned reduction in North American property exposed business.
                • Net income before tax for the six months ended 30 June 2009 of USD 26.0 million, an increase of USD 1.0 million over the prior period (H1 2008: USD 25.0 million). While gross written premium volume declined over the comparable period in 2008 overall profitability has improved.
                • The gross combined ratio was 78.6% (H1 2008: 72.8%). After reinsurance this translates into a net combined ratio of 84.8% (H1 2008: 90.2%).
                • The investment portfolio generated USD 16.1 million of income (H1 2008: USD 14.1 million) from interest and realized gains. Including net unrealized gains the investment portfolio returned 5% on an annualised basis through the half year. This reflects the Group’s conservative investment strategy and secure investment portfolio.
                • Return on equity of 9.9%.
                • The Group’s underwriting capital base increased to USD 591.9 million up from USD 557.7 million at the full year, an increase of USD 34.2 million over the previous six months.
                • Total investments and cash increased to USD 887.3 million from USD 784.1 million at the full year, an increase of USD 103.2 million from 31 December 2008.

                Written premiums for the period reflect a balanced insurance and reinsurance portfolio, with proportional growth in Europe and in Specialty lines. Glacier expects 2010 premium development to show a continuation of this shift towards Specialty lines and Europe. Specialty is forecast to comprise over 65% of the overall portfolio, and within the Property portfolio we expect over 50% of premium to be generated by European cedents.

                Operational highlights for 2009 year to date include:

                • Glacier Insurance opened a branch office in the centre of Zurich in April 2009, widening its branch network and developing a presence in an increasingly important underwriting centre. The branch is under the leadership of Glacier Insurance CEO Richard Etridge.
                • In March 2009, Glacier Insurance London began the development of its UK property portfolio with the appointment of Alex Campbell as Senior Property Underwriter. He has over 20 years of experience in his field and joined Glacier after a successful career at Arch, Allianz and Skandia.
                • A.M. Best affirmed the Group’s financial strength as “A- (Excellent)” and issuer credit rating as “a-“ in July 2009. The outlook on all ratings remains stable and A.M. Best commented on Glacier’s excellent risk-adjusted capitalisation, good anticipated underwriting performance and developing business profile.

                Robbie Klaus, Chief Executive Officer, Glacier Group commented:

                “Glacier has yet again delivered a solid, financial performance and we are particularly pleased with our strong underwriting result. Our focus on developing our growing European platform, particularly in our insurance business, has been a huge success and we have consolidated our position in our chosen markets. With a focus on large commercial and industrial risks, we are well-positioned as an alternative to the larger European and Bermudian players.”

                “Our outlook for the full year is positive, and looking forward into 2010 we see significant opportunities to develop additional profitable business in our Specialty markets, particularly in Europe. We see rates improving in most classes of business. In particular, we anticipate significant hardening in aviation rates, following the major industry losses in H1 this year.”

                “We continue to attract and retain the best industry talent. Our underwriting team has grown throughout the year and is supported by strengthened actuarial, risk modelling and risk management functions.”

                Glenn Campbell, Chief Financial Officer, Glacier Group added:

                “A good underwriting result has been boosted by our strong investment return from a portfolio, which consists of cash, short-duration bonds and fixed income investments with a minimum A or equivalent rating and reflects our conservative long-term investment approach and commitment to security. Unlike many of our peers, we remain unscathed by the volatility that global financial markets have experienced during the last 18 months.”

                0 1

                Aon Benfield, the world’s premier reinsurance intermediary and capital advisor, today releases its annual review of the Insurance-Linked Securities market. The ILS Review 2009 – Adapting to an Evolving Market reveals that despite an extraordinarily challenging environment, the ILS sector outperformed most asset-backed securities and provided positive returns for investors over the past year.

                Aon Benfield’s proprietary Cat Bond Indices benchmarking service shows that ILS products provided a total investment return of 3.89% for the year ending June 30, 2009 – down from 10.12% the previous year – with European bonds posting the strongest performance. These results are primarily attributable to mark-to-market losses across all perils; mark-to-market principal losses were more than offset by interest income.

                Paul Schultz, President of Aon Benfield Securities, said: “In the face of extraordinary economic events over the past year, the ILS market has shown its resilience. After volumes stalled in the final quarter of 2008, they rebounded in 2009 and the confidence of both investors and sponsors has been restored. The market has demonstrated its ability to evolve and adapt, and ILS solutions will continue to play an important role in re/insurers’ risk transfer strategies.”

                Andrew Appel, Chief Executive Officer of Aon Benfield, added: “As we forecast at the beginning of 2009, there has been a resurgence in ILS as investors and sponsors have come to the market with renewed confidence following a benign issuance period at the end of 2008. Aon Benfield Securities continues to listen to both clients and sponsors to help structure solutions tailored to their individual risk transfer requirements. The ILS market has provided $25bn of capital since its inception, and we believe it has a bright future as an integral part of both the reinsurance marketplace, and in our offering as the world’s largest reinsurance intermediary and capital advisor.”

                The ILS Review reveals that investor demand remains high for 2009 vintage cat bonds containing improved collateral structures, with investors bidding over par value for certain bonds in June.

                0 1

                Liberty International Underwriters Europe (LIU Europe), a division of Liberty Mutual Group, has appointed Nigel Davenport to the newly created position of European Chief Counsel.

                Based in LIU Europe’s London office, Nigel Davenport will be responsible for providing legal advice to Liberty’s business leaders throughout the UK and Europe. As a qualified solicitor, he joins from First Title Insurance where he was Deputy General Counsel and prior to that spent ten years with Eversheds as a senior lawyer, advising insurers and intermediaries in London and European markets.

                Commenting on the appointment Sean Rocks, LIU Europe’s Chief Executive said: “This is a new role for us and reflects the growing development of our business here in the UK and Europe and the need to have our own legal resource. Nigel Davenport will be a key member of our senior management team and, with his expertise and experience in insurance law, will be a great asset in the continued growth of our business.”

                0 1

                This report provides a comprehensive analysis of claims costs in the UK general insurance market covering motor, property and liability insurance. The report also provides a detailed discussion on key claims management issues in the UK. It reviews historical claims costs and estimates the future size of the claims bill up to 2014, as well as discussing the drivers behind these forecasts.

                Scope

                • Detailed analysis of the claims cost efficiency for the 20 most efficient groups in the motor, property and liability insurance markets.
                • Extensive claims costs data for the UK motor, property and liability insurance markets.
                • A comprehensive analysis of the latest issues affecting claims management in the UK.
                • Forecasts of net claims incurred for the motor, property and liability insurance markets until 2014.

                Highlights of this title

                • The overall cost of claims resulting from the major perils insured against by domestic property insurers decreased by 25.2%, to £2.6 billion, in 2008. The primary driver behind this fall was a significant decrease in weather-related claims.
                • The ratio of total claims management costs to total net claims incurred rose by 0.2 percentage points, from 5.2% in 2007 to 5.4% in 2008, which was primarily due to a decrease in claims efficiency in the UK liability insurance market.
                • The recession is likely to lead to an increase in property claims relating to theft and arson, placing an upward pressure on claims costs in the short term, while increases in rebuilding costs will increase property insurers claims costs in the long term.

                Key reasons to purchase this title

                • Benchmark your claims handling efficiency against your competitors.
                • Understand the key drivers behind claims inflation in the UK property, liability and motor insurance markets.
                • Gain an insight into the latest issues affecting claims management in the UK general insurance market.

                Some Key Topics Covered:

                • Market Issues
                • Introduction
                • Changing customer attitudes towards insurance fraud are driving an increase in fraudulent claims
                • Fraudulent claims are estimated to have been valued at £730m in 2008
                • Insurers have strengthened their existing counter fraud measures to combat fraudulent claims
                • Credit hire costs and uninsured driving are increasing the level of claims costs in the motor insurance market
                • Insurers will benefit from increasing the speed of the claims settlement process in order to minimize third party claims costs
                • An increase in uninsured driving and fraud is placing pressure on UK motor insurers
                • The government plans to implement continuous insurance enforcement
                • Escape-of-water claims and the cost of commercial fires are driving up claims costs in the property insurance market
                • The recession has increased the incidence of arson and fraudulent property

                claims

                • Motor claims costs are forecast to have a CAGR of 3.6% between 2009 and 2014, driven by rising fraud, personal injury and vehicle repair costs
                • Fraud, personal injury and rising vehicle repair costs will place an upward pressure on motor claims costs
                • Total motor claims costs will reach £10.5 billion, an increase of 3.6% per year between 2009 and 2014
                • Increases in fraud and crime are expected to exert an upward pressure on property claims costs, which will grow to £5.8 billion by 2014
                • Fraud, crime and an increase in rebuilding costs will exert an upward pressure on claims between 2009 and 2014
                • Net property claims incurred are forecast to grow by a CAGR of 3.7% between 2009 and 2014
                • Liability claims costs are expected to reach £3.5 billion by 2014 due to high

                claims inflation

                • Personal injury claims and fraudulent claims will exert an upward pressure on claims costs
                • Net liability claims incurred are forecast to grow by a CAGR of 6.5% between 2009 and 2014
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