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XL Insurance, the global insurance operations of XL Capital Ltd, today announced the expansion of its US Aviation operations with four new appointments to its New York-based underwriting team.

Eric Donofrio, US Regional Manager for XL Insurance’s Aviation unit, welcomed the appointments of three Class Underwriters — Armand Ferranti, Jr., Eileen Mitchell and Charles Koehler, and business analyst Isabel Marin.

“Our team’s technical underwriting skill and industry knowledge is the foundation of our success in today’s competitive aviation insurance market,” said Mr. Donofrio. “We’re building on that base with the addition of seasoned professionals like Armand, Isabel, Chuck and Eileen whose experience continues to add strength to our in-house underwriting capabilities.”

“With our experienced aviation underwriting and claims staff located in New York, London, Toronto, and Munich, we are able to provide our brokers and clients direct access to our expertise” Mr. Donofrio said, noting that XL Insurance’s global Aerospace operations provide a broad spectrum of aviation coverage for clients around the world. “We anticipate that the team will continue to grow in 2009 and 2010,” he added.

Mr. Ferranti joins XL Insurance from Global Aerospace where he worked as a general aviation underwriter. A graduate of Embry-Riddle Aeronautical University, he is a licensed commercial pilot. Mr. Ferranti also holds an Airframe and Powerplant Mechanic certificate.

Ms. Mitchell brings aviation brokerage experience having worked most recently for Integro as well as Marsh. She has also worked with law firm Mendes & Mount as a paralegal working in aviation litigation management. Ms. Mitchell is a graduate of Marist College.

Mr. Koehler joins XL Insurance from William Gallagher Associates where he worked as an aviation broker. He brings previous experience as a general aviation underwriter having worked with Global Aerospace. A graduate of Embry-Riddle Aeronautical University, he is a licensed commercial pilot and certified flight instructor.

Ms. Marin joins XL Insurance with more than a decade of aviation industry experience including her most recent position with FWS Aerospace, an aerospace consulting firm. She is a graduate of Dowling College in Oakdale, New York.

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Standard & Poor’s has reaffirmed the AA- stable outlook rating of Allianz Insurance.

The Standard & Poor’s report includes the following statement:

‘Allianz U.K. is expected to remain a strategically important subsidiary of Allianz SE. Based on Standard & Poor’s projections, we anticipate that the company will deliver a net combined ratio below 100% for 2009 and 2010 and strong capital adequacy based on Standard & Poor’s risk-based capital model over the same period.’

Group communications manager, Mark Bishop, said: “In these difficult economic times, this independent confirmation of our financial strength and stability should provide great confidence to business partners and customers.”

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    With top temperatures expected this summer1, and an average daily maximum temperature forecasted to reach 24 degrees by 2050 as a result of climate change2, RIAS is urging homeowners to ensure they have adequate household buildings insurance in place.


    • ‘At risk’ areas include Chelmsford, Milton Keynes and Peterborough
    • Climate change contributing to increased average temperatures
    • 13.5m over 50s unaware of what subsidence is, yet homeowners are urged to check their insurance cover

    A number of areas has been identified across the UK which could potentially be under increased threat of subsidence because of clay soils beneath property foundations shrinking in long periods of dry hot weather. Chelmsford, Colchester, London and surrounding areas, Milton Keynes, Peterborough and Southend-on-Sea have all been highlighted by RIAS as areas which have significant ‘swell-shrink potential’3. These areas are likely to have a high concentration of clay soils, those with a high sand or gravel content, or chalk.

    Janet Connor, Managing Director of RIAS comments: “Whilst we are all delighted that the summer is here, the hotter weather does have long-term implications for homeowners. Our research has indentified areas of the UK where homeowners need to be extra vigilant that their household buildings cover is comprehensives and offers them protection against subsidence. With the effects of climate change meaning increased summer temperatures in the future, now is the time for consumers to review their household buildings insurance policies to ensure they are adequately covered.”

    One in ten (10%) more homeowners over the age of 50 understand what subsidence is, compared with under 50s homeowners. 98% of over 50s homeowners, equivalent to 13.5m people, understand what subsidence is, whilst 88% of homeowners under the age of 50 are confident they know what subsidence is4.

    Tips for homeowners to help with subsidence awareness:

    1. If you suspect your home has suffered subsidence damage then the best thing to do is to seek advice from an experienced and qualified Chartered Engineer who can arrange the necessary investigations and monitoring. They will also be able to suggest remedial measures, if necessary, and ultimately co-ordinate repairs. You should also notify your household buildings insurer as soon as possible, as they may wish to appoint a loss adjuster to help with any insurance issues.
    2. Another common cause of subsidence is leaking pipe work. The soil beneath your property can be washed away over time if there is a persistent leak, so have your pipe work checked and repaired. If there is evidence of erosion, contact a surveyor or the Institute of Structural Engineers for further advice.
    3. Check your soil type to determine whether your home may be more susceptible to subsidence – perhaps checking with your neighbours if you are unsure.
    4. It may also be useful to check with your neighbours to find out whether anyone else’s property in your area has suffered from subsidence, as this will enable you to take precautions before it becomes an issue with your property.
    5. Ensure you have the correct Home Insurance in place, and remember to read the small print. Some companies will not cover your home in the event of subsidence, particularly if you live in an area known for subsidence, or on any of the prone soil types.

    RIAS offers buildings insurance cover providing customers with £1 million worth of cover, or £10,000 for each outbuilding, if the home is damaged due to subsidence.


    Reproduced with the permission of the British Geological Survey ©NERC. All rights reserved.

    1 Source: Met Office Summer Forecast 2009

    2 Source: Met Office Climate Change Projection

    3 UK ‘Swell-shrink potential’ Map, reproduced with the permission of the British Geological Survey ©NERC. All rights reserved.
    4 Source: Opinium Research. Total sample size was 2,054 adults over the age of 18 years, including 1,067 adults over the age of 50. Fieldwork was undertaken from 5 – 9 June 2009. The survey was carried out online. The over 50s population in the UK is 17.7 million (Source: Population projections by ONS, 2009). According to the research, 78% of over 50s are homeowners, equivalent to 13.8m. Of the over 50s homeowners, 98% are aware of what subsidence is, equating to 13.5m over 50s homeowners

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    Insurance advice from Top Gear presenters should not be taken seriously, a financial expert has warned.

    In this week’s episode of the popular motoring TV show, presenter James May advised young drivers that they could slash their insurance premiums by getting their mum or dad to insure their car for them.

    “The only realistic way of getting covered when you are 17 is by going on your parents’ insurance,” May said.

    However, as May’s co-presenter Richard Hammond pointed out, ‘fronting’ insurance in this way is illegal and can result in hefty fines, points on the driving licence, and even a jail sentence.

    “If you do decide to put yourself on your parent’s insurance and you have a crash, and the insurance company find out that it wasn’t really your car, they won’t pay out,” Hammond said.

    “Then they can prosecute you and you might have to go to jail.”

    Hayley Parsons, chief executive of GoCompare.com, echoed Hammond’s advice.

    “While few people would take Clarkson’s suggestion that a sex change could help 17 year old boys halve their premiums seriously, fronting is a common fraud and we would urge parents to avoid the practice as, if found out, the consequences could be severe,” Parsons said.

    She added that drivers caught fronting will find it harder to get car insurance in the future “because the majority of insurers [will] refuse them cover.”

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    Dutch financial services company ING Groep NV (ING) said Wednesday it will cut 800 jobs over the next three years as part of a cost-saving plan that involves merging its Dutch insurance brands.

    ING said the plan should have a positive impact from 2010 and lead to pretax annual cost savings of EUR100 million from 2013.

    The existing Nationale Nederlanden, RVS and ING insurance brands will be combined into one organization under the Nationale Nederlanden brand at a cost of EUR165 million over the next four years.

    Chief Executive Jan Hommen said: “Now is the time to adapt our Dutch insurance operations to the changing market environment and position them for the future.”

    He said that streamlining the company and creating dedicated business units for client groups will better serve customers in the Netherlands.

    In May ING posted a worse-than-expected first-quarter net loss as impairments on real-estate and equity investments hit its insurance operations, while its banking business remained profitable despite heavy provisions against loan losses.

    The company received a Dutch state capital injection of EUR10 billion in October and a EUR27.7 billion state guarantee on its Alt-A mortgage portfolio in January.

    ING shares closed Tuesday at EUR7.17.

    Bart Koster; Dow Jones Newswires; +31 20 571 5201; Bart.koster@dowjones.com

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    US-based bond insurer MBIA this week had its senior debt rating downgraded by Moody’s.

    Moody’s Investors Service cut MBIA’s rating two notches from Ba1 to Ba3, three levels below investment grade.

    The rating cut was blamed on MBIA’s exposure to high-risk investments, including residential mortgage-backed securities. Moody’s also cited ongoing litigation against the firm.

    “These rating actions reflect further expected insured portfolio deterioration at MBIA Insurance Corporation and the uncertainty stemming from ongoing litigation challenging MBIA’s recent restructuring,” Moody’s said.

    In its statement, Moody’s also warned of “meaningful uncertainty about the actual losses that MBIA will incur due in part to the lack of consensus about the direction of the economy and its effect on portfolio credit performance.”

    MBIA is currently the target of a lawsuit by a group of 18 financial institutions who claim that the bond insurer’s restructuring earlier this year was fraudulent.

    In the first quarter of 2009, MBIA divided its insurance operations into two segments, called National Public Finance Guarantee, and MBIA Insurance.
    A statement by MBIA said: “we believe that these lawsuits are without merit and that the New York State Insurance Department’s approval of the transactions will be upheld.”

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    XS Direct, the Irish motor insurer, has unveiled a new Full Cycle EDI motor product aimed at Open GI brokers.

    The motor brand began trading four years ago and offers high premium drivers substantial savings on their motor insurance.

    International Insurance Company, Hannover, is underwriting the new product and its launch brings the number of Full Cycle EDI motor products available through Open GI in the UK to over 330.

    XS Direct, the Irish motor insurer, has unveiled a new Full Cycle EDI motor product aimed at Open GI brokers.

    The motor brand began trading four years ago and offers high premium drivers substantial savings on their motor insurance.

    International Insurance Company, Hannover, is underwriting the new product and its launch brings the number of Full Cycle EDI motor products available through Open GI in the UK to over 330.

    Business Development head David Shaw has explained that the firm’s approach is to provide products that are transparent and also highly efficient.

    Shaw added that XS Direct had teamed up with Open GI to take advantage of Open GI‘s large broker base enabling the firm itself to focus upon delivering the best possible service and reducing premiums as far as possible.has explained that the firm’s approach is to provide products that are transparent and also highly efficient.

    Shaw added that XS Direct had teamed up with Open GI to take advantage of Open GI‘s large broker base enabling the firm itself to focus upon delivering the best possible service and reducing premiums as far as possible.

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    The British Insurance Brokers’ Association (BIBA) has announced the formation of the BIBA London Market Region Committee (LMRC), which will represent its London market brokers.

    The committee is chaired by Ken Davidson, currently chairman of Crispin Speers, and will be integrated into BIBA’s existing regional committee structure.

    The new body replaces the London Market Brokers’ Committee, which was disbanded at the beginning of the year.

    It aims to provide a strong voice on behalf of BIBA’s London market broker community to the Financial Services Authority, European regulators, the Government and other stakeholders.

    BIBA says the change will allow it to engage directly with London market brokers, who can then influence BIBA’s key industry and lobbying initiatives.

    LMRC members will have the opportunity of joining the BIBA Board, General Insurance Brokers’ Committee, regional and technical committees.

    They will also be working with other London market bodies, including the London & International Insurance Brokers’ Association, on areas of mutual interest.

    BIBA’s chief executive, Eric Galbraith, sums up by saying: “LMRC will provide strong representation for London market brokers and also provides a new opportunity for this important sector of the market to be integrated into BIBA’s well established structure, which has achieved a number of wins for brokers with the regulator and the Government recently.”

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    London-based Pamplona Capital Management has upped its stake in insurer Chaucer Holdings, adding 34.4 million shares to the 54.8 million shares it acquired earlier this week.

    The acquisition, subject to FSA approval, takes Pamplona’s stake in Chaucer to 16.27%, and values Chaucer’s stock at 44 pence per share. Private equity firm Pamplona confirmed that it aims to attain a 29.9% non-controlling stake in Chaucer.

    Discussions between Chaucer and Pamplona are ongoing, and Pamplona said it reserves the right to effect further market purchases and to submit cash offers to acquire up to 13.6% more of Chaucer’s issued share capital.

    Earlier this week, Chaucer rejected an all-share takeover bid from Brit Insurance. In a separate announcement, Chaucer said its chief executive, Ewen Gilmour, and chief financial officer, Mark Graham, are both resigning.

    Gilmour intends to retire at the end of the year, whilst Graham will look for alternative opportunities.

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    A ‘PERFECT STORM’ of demographic, individual and financial elements is poised to derail people’s retirement plans unless they prepare properly now, a global survey from HSBC Insurance.

    The fifth annual Future of Retirement study, It’s Time to Prepare, shows:

    • people’s short-term survival strategies in the midst of recession are creating a serious long-term pensions ‘downturn deficit’
    • there is a continuing lack of pensions planning, even though people are aware that they are likely to live longer
    • this is being exacerbated by poor levels of financial understanding, education and access to advice
    • people are more concerned with protecting their possessions in the short-term than ensuring they can look forward to a financially secure retirement

    The consequence of these combined factors is that many people will struggle to make ends meet when they come to retire, unless they urgently review their priorities and planning.

    Stephen Green, Group Chairman of HSBC, said: “A perfect storm is confronting pensions planning, created by an ageing population, falling pension funds values, a drop in state and employer contributions and an economic downturn which is forcing people to make tough financial choices.”

    The preparedness gap

    It’s Time to Prepare has identified a ‘preparedness gap’ in people’s pensions planning across the world with nearly 9 out of 10 people not feeling fully prepared for their retirement.

    The Future of Retirement survey, which questioned 15,000 people in 15 countries, making it the largest study of its kind in the world, reveals:

    • Only 13% of respondents feel fully prepared for their retirement
    • 86% do not know what income they will receive in retirement
    • Only a quarter (27%) feel they fully understand their long-term finances
    • Approaching half (43%) have undertaken some planning for later life, but still remain unclear about what their retirement income will look like
    • <14% have done no retirement planning at all.

    Stephen Green continued: “The ‘preparedness gap’ reveals that families need greater support and guidance to effectively handle their finances, not simply in schools and colleges but through ‘trusted advisers’ providing professional financial guidance.

    “If people prepare adequately for the long-term an extended later life can present a golden opportunity for many – but now is the time for people to seriously consider boosting their pensions contributions to improve their prospects of a comfortable retirement. The cost of procrastination is likely to be high.”

    Advice gap opens up

    It’s Time to Prepare also reveals a parallel ‘advice gap’ linking a lack of preparedness to insufficient financial education and guidance:

    • 43% of respondents have never had any form of financial education
    • And 29% also feel ‘fairly’ unprepared for their retirement
    • Almost half (47%) have never had any form of professional financial advice

    Clive Bannister, Group Managing Director, HSBC Insurance, said: “This year’s Future of Retirement report reveals a need for people to have access to more and better financial advice and guidance to help them survive the downturn while making the right financial decisions for the long-term.”

    Coping with the downturn – possessions not pensions?

    People are paying little attention to long-term considerations such as their likely retirement needs, focusing instead on purely practical short-term concerns which they better understand, It’s Time to Prepare reveals.

    General insurance solutions – motor, travel, home and even pet insurance – are seen as a greater priority than addressing longer-term needs around insuring health or income, even when job security is in question.

    Despite global economic uncertainty, only 6% intend to take out income protection insurance in the next 12 months compared to 16% insuring their home.

    The Future of Retirement survey shows that, as a result of the economic downturn:

    • 92% of people have changed some element of their finances
    • Only 19% will now retire as planned
    • 17% are reducing retirement savings or stopping saving for retirement altogether
    • 18% have used savings to pay off debt
    • 9% expect to delay their retirement

    Mark Twigg, Director at financial services consultancy Cicero Consulting, which undertook the survey for HSBC Insurance, said: “It’s Time to Prepare reveals the lack of understanding people have around their long-term retirement needs. They are less well educated or aware when trying to understand these needs and to act on them, than with their short-term requirements.

    “As the economic ‘perfect storm’ threatens it is important that people are encouraged to understand long-term risks and to manage them effectively. While people are taking more responsibility for themselves, there is also a definite role for financial institutions to continue, and to build on, their work to educate and inform.”

    Countries surveyed include: Brazil, Canada, China, Dubai, France, Hong Kong, India, Japan, Mexico, Saudi Arabia, Singapore, South Korea, Turkey, UK, and US

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    50% more families will drive to UK holiday destinations this summer, but two thirds of car seats won’t be securely fitted

    Sir Alex Ferguson CBE is backing an AA campaign supported by Britax and Mothercare this summer, urging parents to get their child car seats checked and to ensure that their children are properly belted up. This is all the more important as new AA research shows that the economic downturn means that 50% more people will holiday in the UK this summer1. With two thirds of child seats in the UK not fitted securely2, the summer holiday could be an accident waiting to happen.

    Sir Alex is lending his support to the campaign which launches during Child Safety Week (22-26 June), to raise parents’ awareness of the importance of having the right car seat securely fitted, and the right seat for a child’s age and height. This follows his grandson’s recent experience in a road accident – 10 year old Charlie had to undergo surgery back in May, when he was injured due to not being properly protected during a car collision.

    The latest research from the AA’s Road Safety team suggests that August is the worst month for death and serious injuries to children in vehicles. This is why the AA has teamed up with Britax, a leading car seat manufacturer, and Mothercare to launch a nationwide roadshow offering parents expert advice and hands on guidance on how to choose and fit the right car seat.

    The roadshow launches on Monday 22 June, in time for people to make sure they know how to choose and fit their children’s car seats properly, before they hit the roads during the summer holidays.

    The need for the roadshow has also been highlighted by recent research that over 20 children under 11 are killed and over 600 seriously injured a year while travelling in cars3.
    Comment

    Sir Alex Ferguson CBE said, “I urge all parents and children to pay attention to using and fixing their seat belts properly, over the shoulder as it should be. This can save your Life.”

    Edmund King, AA president said: “Sir Alex is absolutely right that it is imperative for all children to be properly belted up in the back. The AA Populus poll of 16,500 respondents showed that 83% are not aware of legislation requiring children to use the appropriate restraint or child seat. Modern seat belts are not uncomfortable so parents or drivers need to ensure that children are appropriately belted up. It can be a matter of life or death.”

    Mark Bennett from Britax said: “With so many families hitting the UK roads for their summer holidays this year, the correct fitting of children’s car seats is of paramount importance. We find it extremely alarming how many people are unaware that their car seats are fitted incorrectly, and are delighted to be working with Mothercare and the AA to help parents, and educate them on the solutions available before they embark on their road trips this summer.”

    Liz day, parenting consultant at Mothercare said: “At Mothercare, the safety of children is our number one priority. As one of the UK’s leading retailers of car seats we strongly advise all parents to ensure their car seats are suitable for their child and fitted correctly and offer demonstrations and advice in our stores. This roadshow event brings together the specialist expertise of Mothercare, Britax and the AA to promote the safety of children in cars.”

    The roadshow will take place outside Mothercare stores in 11 UK locations, where Britax and AA patrols will be offering demonstrations of car seats using the ISOFIX safety system and showing just how easy and safe the ISOFIX system is.

    The ISOFIX system eliminates misfitting problems, which are common with the use of adult belts, and improves the dynamic performance of child restraints, as the seat is rigidly attached to the car structure. The vast majority of new car models since 2006 (and several previous models) have ISOFIX installed as standard.

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    Around six million motorists in the UK risk a four-figure repair bill by never checking their car’s coolant level, meaning they and their car could get hot under the collar this summer.

    According to an AA Populus Panel poll of more than 14,500 motorists, a quarter of women drivers admit to never checking their car’s coolant, compared to 10 per cent of men.

    At the other end of the scale, four times as many men (28%) than women (7%) do the recommended weekly check.
    Londoners least likely to check

    The research shows that Welsh drivers are the best prepared with 24 per cent inspecting weekly while Londoners lag behind (14%) and are also the most likely to never check (18%).

    Londoners’ excuse may be partly due to ignorance with more than a fifth (22%) unaware of how to check the coolant level. Overall, nearly all men (93%) claim to know how to, compared with less than two-thirds of women (61%).

    Overheating is a much bigger problem during the summer, as engines operate at higher temperatures – there isn’t the cold winter air to take away a lot of the heat.

    Stewart Topp, AA patrol of the year, says: “Many cars are only used on the same local trips with the engine barely reaching normal operating temperature, so the cooling system is hardly tested. However, that all changes when the car is suddenly loaded with luggage and passengers for a long holiday trip in hot weather, exposing any problems in the system.
    Regular checks

    Drivers should get into the habit of regularly checking their car including the coolant level and fan. If you notice that the coolant has dropped, get it checked out, as modern cooling systems shouldn’t really need topping-up between services.
    Cooling fan

    A seized cooling fan is the most common initial cause of overheating but the survey showed that only 6 per cent of drivers are likely to test it.

    The fan’s importance:  When you get caught in traffic, the cooling fan will come on automatically and draw air through the radiator. If the fan motor has seized, say through lack of use, the coolant will get hotter until it boils and is lost from the system. If you don’t spot this and turn off the engine, the head gasket will probably fail causing expensive damage.
    If the temperature gauge does rise

    If drivers notice the temperature gauge rise, the most effective way of temporarily dealing with it is to turn the heater up full and the air conditioning on. Less than a third of female drivers (30%) and half of men knew this advice.

    Drivers in the South-west were the most clued up (49%) but those in Northern Ireland would risk the most damage (33%). More than a third of women (36%) compared to 16 per cent of men were completely unaware of how to deal with an overheating engine at all.

    Expensive repairs

    If your car overheats, at best, you’ll likely have to cough up around £250 to repair the cooling fan or £1,000 for a head gasket and, at worst, several times that for a new engine. So, with a hot summer forecast, it’s never been a better time to get your handbook out and spend a few minutes now to potentially save yourself a lot of money and time later.
    Checking the cooling system

    Coolant is a mixture of antifreeze and water in the car’s cooling system. The radiator which dissipates heat from the engine to the atmosphere is fitted with an ‘expansion tank’ that allows the coolant to expand under rising pressure and temperature.

    The tank is usually clear plastic and marked on the side with maximum and minimum marks. It should be easy to see the level of coolant through the side of the tank. Check the vehicle handbook for the location of the expansion tank and coolant filler cap. Follow any vehicle-specific advice given.

    The coolant level should only be checked when the engine is cold.

    • Check the coolant reservoir level regularly and look out for wet or white staining on coolant hoses too. You don’t have to remove the cap to check the level, simply look to see if the coolant is between the minimum and maximum marks
    • If you do need to top it up refer to the handbook first to make sure you use the correct type of antifreeze and follow the correct procedure
    • The coolant filler cap must only be removed with the engine is cold – the cooling system is pressurised and you risk a face-full of scalding hot water if you release it with the engine hot.
    • Modern cars have sealed cooling systems, so they shouldn’t need topping up between services. If the level drops, the coolant must be escaping from somewhere, so it should get investigated

    Checking the cooling fan

    Follow this simple procedure (best done when you get home from a journey) to check if the cooling fan operates correctly as the temperature rises;

    • Set the car heater to cold and run the car to normal temperature and then allow the engine to idle for around five minutes – the fan should cut in automatically
    • Keep an eye on the temperature gauge, if the car has one – it’s essential that the car isn’t allowed to overheat while carrying out this test
    • If the fan doesn’t come on there may be a fault with the fan temperature sensor, the wiring or the fan itself

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      Climate change will increase water scarcity, alter food production and dramatically change energy supply and migration patterns, according to a new report released today by Lloyd’s.

      Climate change and security: risks and opportunities for business, launched in conjunction with the International Institute for Strategic Studies (IISS), highlights that these changes will bring threats – and opportunities – for businesses.

      Lloyd’s Chief Executive, Dr Richard Ward, said:

      “Climate change will change the way we live and work, and will lead to greater competition for scarce resources, such as food and water. This is likely to result in increased economic nationalism and greater global insecurity, which will in turn add to the complexity and cost of doing business.

      Every organisation needs to have a clear understanding of its particular vulnerabilities and have in place a range of mitigation strategies. Their ability to understand what the impacts of climate change are going to be could not only protect them from threats but could also open up new business opportunities.

      Nigel Inkster from IISS Director of Transnational Threats and Political Risks adds : “Climate change has the potential to act as an accelerator of global instability and has been recognised in both the USA and Europe as an issue affecting national security. Climate change could lead to increased competition between states for ever more scare resources and could in the worst case lead to inter-state conflict.

      Doing business in a world increasingly affected by climate change will present challenges and companies will need to be aware of both the general and specific aspects of climate change likely to affect their particular businesses. But climate change also presents major business opportunities. And the business work has a crucial role to play in both developing new low-carbon technologies and changing consumer behaviour to adopt a low-carbon lifestyle.

      The report explores four key areas through case studies, outlining their impacts on business:

      1. Water – The risk of water-induced conflict with particular reference to competition between India and Pakistan over access to the diminishing supply of water from the Indus river basin.
      2. Food – Issues of food security – looking at the problems facing China, a country with a large population and declining water resources and arable land, and the prospect for tension with Russia, a country with an excess of arable land and water and a declining population.
      3. Energy security – looking specifically at the Arctic, an area rich in oil and gas resources which are becoming increasingly exploitable as the ice-cap melts, and which could be the subject of competing claims by five nations.
      4. Migration – with a particular focus on the problems potentially faced by the USA in the event that climate change drives populations in Mexico to migrate northwards.

      While awareness of the threats and opportunities is a key factor, businesses also have an important role to play in encouraging debate and greater understanding of the problem.

      “The private sector needs to support research on climate change, and develop and promote new technologies both to mitigate and adapt to climate change. Just as important is encouraging informed public debate, such as our 360 Risk Insight project,” Dr Ward said.

      Four key cases:

      WATER

      • Risk : Because of global warming, rainfall patterns are expected to change drastically. In some places there will be more rain, however it will not always fall in the same places which rely upon it and if it does, it may come in torrential and hugely destructive downpours. Almost all conflicts over water that might lead to war are related to large rivers that flow through several countries.

      • Case study : In India before 1947, the Indus river system provided water to the largest continuous tract of irrigated land in the world. Over 80% of the farmers who used that water lived in what became Pakistan after Partition in 1947 and for the next two decades, the two states quarrelled incessantly over the divisions of the waters. That ended with the signature of the Indus Water Treaty of 1960 which allocated the bulk of the flow to Pakistan. India was to receive all the water from the three eastern rivers and a fixed volume from two others. Climate change will bring the Indus Water Treaty into question, as the glaciers that feed all six branches of the river, could be gone is as little as twenty or thirty years. This would make the entire Indus system seasonal with low rivers when agriculture needs them most. For Pakistan this is a matter of life and death, and when it is no longer receiving enough water under the treaty provision to sustain its own population, it is likely Islamabad will challenge the old agreement. The potential for serious conflict over the Indus waters is high.

      • Implications for business : A large swathe of countries around the equator will fall victim to water stress. In some extreme cases this would result in inter and intra-state tensions and even conflict. Water is essential for many manufacturing and production processes and access to water will increasingly be seen as a potential strategic weapon, impacting upon businesses that operate in these nations. Water stress may also render parts of the planet uninhabitable, and not just in the developing world.

      FOOD


      • Risk : Climate change may generate serious problems for global food supply, manifesting first as sharp price increases and subsequently as absolute scarcities. The world’s population has tripled in the past 60 years, but it is all being fed from essentially the same land as before. In the 1970s, when population growth threatened to outrun food production, the ‘Green Revolution’ averted it and food production grew faster than population for another three decades. However, the key elements in the Green Revolution have largely exhausted their potential. The impact of global warming on food production will be largely negative and anxiety about the future availability and price of food is already causing a rapid growth in bilateral deals. Britain is in an unusually vulnerable position, with just over half its food imported from abroad.

      • Case study : China officials are concerned about global warming. A major concern is the Yangtze River that provides much of the water for southern China, which has its source in glaciers on the edge of the Tibetan plateau and are losing mass at an average of 7% a year. Combined with hotter and drier conditions, the reduced volume of water will probably make agriculture in southern China considerably less productive than it is now. A final blow to the Chinese food supply is likely to be the bigger storms that may progressively inundate its agriculturally rich but low-lying delta lands. Taking all of these phenomena together, it is probable that China will be one of the worst hit countries in terms of its ability to feed its people.

      • Implications for business : Competition for available food resources will become more intense and international food markets are likely to function in less predictable ways. Companies involved in food production and food processing will need to build higher levels of uncertainty of supply into their planning assumptions and develop sophisticated strategies for dealing with consumer expectations. Companies reliant on food produced overseas will need to consider the reliability of supplies and consider whether food can be produced closer to the point of consumption.

      Energy and natural resources

      • Risk : Barack Obama has said that the new policy of his administration will be ‘to reverse our dependence on foreign oil while building a new energy economy that will create millions of jobs’. Beyond the exchange cost and political risk of depending on ‘foreign oil’, the threat of climate change now provides another strong incentive for shifting to non-petroleum-based energy in the transportation industry as fast as possible.

        If the demand for oil were to go into even a modest decline, the impact on the price could be immediate and profound and lead to the marginalisation of the world’s major oil exporters. In the Middle East, governments might struggle to support burgeoning populations without time and financial support to diversify away from dependence on oil revenues. A move away from oil would leave many countries facing an uncertain future.

      • Case study : There have recently been disagreements over the extent of sovereignty over Arctic waters. The interest in the Arctic is not about shipping routes; it is about oil and gas. A US Geological survey estimates that up to 20% of the world’s known remaining oil and gas reserves are located there. Technically all the countries bordering the Arctic ocean – The USA, Canada, Russia, Norway and Denmark – are committed to abide by the rules of the United Nations Convention on the Law of the Sea (UNCLOS) in determining their seabed boundaries and while the oil and gas may be in areas that clearly belong to a country and are not open to dispute, confrontations in disputed areas are certainly possible.

      • Implications for business : International oil markets are likely to become tighter and more volatile as increasing demand meets constrained supply, and oil-producing states seek to maximise revenues while the opportunity still exists. Companies whose business depends on high-emission fossil fuels, such as coal, will come under increasing pressure to adopt measures to mitigate the greenhouse effects but there are considerable business opportunities for companies willing to invest in the development of energy-efficient technologies and alternative renewable energy sources.

      Demographics

      • Risk : Climate change is likely to produce destabilising waves of refugees. Population movements brought about by climate change are likely to exacerbate an issue that has been coming to the fore for some time, namely the rise of the megalopolis. Large areas of cities, such as Rio de Janeiro, have become effectively unpoliceable and have fallen under the control of organised criminal groups – a risk that businesses need to be aware of. Faced with the prospect of uncontrolled migration flows, countries in the developed world need to consider funding large-scale adaptive measures which would enable populations to remain where they were. This approach would require societies to reassess their priorities, which would have far-reaching implications for lifestyles and patterns of consumption. The alternative is the imposition of much stricter immigration controls. This could mean in some cases, the erection of physical barriers to prevent unauthorised migration and limitations on international travel. Measures such as this are unlikely to be wholly successful and would give rise to some difficult security and policy dilemmas.


      • Case study : Out in the desert between Mexico and the United States, only a few strands of wire divide the two countries. Several thousand people cross it from south to north each day and at least half of them either stay in the US permanently or at least until they have made enough money to go home with. The general US population wants the border shut against legal immigrants but Americans strongly believe that immigration is positive for the country as a substantial chunk of American business has come to depend upon cheap labour provided by illegal Mexican and Central American immigrants. However the climate forecast is for severe desiccation right across the sub-tropics and when the farms dry up and blow away, there will be nowhere for the ex-farmers to go but into the ever-spreading barrios around the big Mexican cities, but more likely to the US border. Closing the border would have political ramifications in both nations.

      • Implications for business : Climate change in the developing world will lead to migratory shifts from the poorer parts of the globe to the wealthier parts as they are more able to deal with it and will suffer less. These migrations may mean a growth in the potential pool of prospective workers in the developed world but also a brain and manpower drain in developing parts of the world as able workers leave for more temperate climates.

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      Aviva plc (“Aviva”), the international savings, investment and insurance group, announces the appointment of Jon Bunn as corporate affairs and communications director for Aviva in Europe.

      Jon will be responsible for internal and external communications across the region, focusing on strengthening Aviva’s reputation as a company that understands its customers, stakeholders and the financial services market. The position reports into Andy Moffat, Aviva’s director of human resources in Europe.

      Jon was previously group public relations director at Prudential, where he was responsible for the corporate and financial media relations strategy. Before that he was director of media relations at PricewaterhouseCoopers and he began his career as a journalist. He holds a degree in politics from Durham University.

      Andy Moffat, Aviva’s European human resources director said: “Aviva’s European businesses now account for 42% of group sales, and we’re one of the leading insurers in the region, providing life, general and health insurance to more than 20 million customers. I’m delighted to welcome Jon to Aviva – he brings with him a wealth of industry and communications experience. This newly created position underlines the vital role communications has to play in helping us drive growth and profitability in the region.”

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        UK businesses are over-cautious and at risk of missing out on seizing opportunities due to a fear of taking acceptable risks, according to leading insurer RSA. This reticence – uncovered in a major study of the UK business community’s attitude to risk – could delay the country’s return to economic prosperity, warn experts.

        • Report reveals how green shoots of recovery may go untended as recession reaction ushers in era of over-caution
        • Seven in 10 businesses reacting to perceived rather than actual risk
        • Businesses not grasping opportunities as risk becomes the new taboo
        • Less than half of business leaders admire risk takers

        The study – Risky Business: how British business leaders are reacting to the recession – is the first in a series to be published by RSA and conducted in association with the Future Foundation. The report highlights how UK business leaders are unable to look beyond the short-term and are unwilling to take risks themselves despite recognising that taking some risks is a necessary part of running a profitable business.

        The report reveals that whilst 63% of business leaders believe that there is an opportunity to grow their organisation during the recession, only 45% actually expect to see growth.

        “For many businesses today, survival equals success. But in focusing on the immediate they are at risk of missing wider opportunities. Missing these opportunities threatens to delay their own success and the wider recovery of the UK economy”, comments Neil Lightbown, UK Underwriting and Strategic Claims Director, RSA. “UK plc can see the green shoots of recovery but is reticent in helping them grow.”

        The extensive study has used both new quantative research with business leaders and the general public together with expert interviews of business leaders to uncover boardroom and public perceptions of risk. This gives the fullest picture yet of the changing sense risk has on our business and personal lives.

        The report reveals that a sense of caution is widespread: 58% of the UK population prefers to be cautious rather than to take risk. Amongst business people, 26% enjoy taking risk and 17% of the population share this sentiment. However, 17% of business people also believe companies are now too cautious in their approach to risk.

        “These reactions are understandable given the widespread perception that extensive risk-taking helped bring on the credit crunch and the recession”, adds Lightbown. “But the pendulum has swung too far. Risk is a crucial, fundamental part of business decision-making. We need to better understand acceptable risk or we will be so cautious in our business dealings we will ignore the potential green shoots of economic recovery. Businesses can’t take their eye off the future – they need to recognise and grasp the longer-term opportunities.”

        The study shows that the concept of risk-taking has become devalued. Less than half of business leaders admire risk takers and a similar proportion believes that entrepreneurship should be rewarded.

        Barry Clark of the Future Foundation says, “We’d argue that the common perception of risk has been redefined. Where once risk-taking was exemplified in the public imagination by individuals such as Sir Alan Sugar and Sir Richard Branson, risk is now epitomised by groups of investors in banks speculating on inherently unsound and very complicated investment vehicles. If risk is personified, it now takes on the shape of Sir Fred Goodwin of RBS rather than popular buccaneering entrepreneurs of recent years”.

        The study also found that 70% of respondents believe they react to perceived risk rather than actual risk, suggesting business leaders are relying more on suspicion and gut-instinct than fact.

        Dr Abigael San, Chartered Clinical Psychologist, says: “Often we react to perceived rather than actual risk leaving us vulnerable to making bad decisions as a result. Given the fear experienced by the population during this climate of economic upheaval, it is not surprising that our tendency to engage in these thinking errors is more pronounced, leading to biases in our thinking that affect our behaviour.

        “As humans, we often make decisions about the likelihood of an event occurring based on how available the information is and how easily it comes to mind – something known as the availability bias. We are currently hypervigilant to information that tells us that taking risks is bad and which makes us ever more cautious. It is difficult to take a long term view when we are so overwhelmed with current worries. Thinking is focused on the present as future planning feels futile given the perceived unpredictability of the situation.”

        Key findings from the study include:

        • 72% of business leaders believe some risk in business is necessary but 63% believe the business community has taken too much risk in recent years
        • 17% of businessmen believe companies are currently too cautious in their approach to risk
        • 67% of the public think entrepreneurs should not be rewarded for taking risks
        • 26% of business leaders enjoy taking risk;  17% of general population enjoy risk
        • 33% of business people accept that they are now more cautious about taking risks
        • 25% of business leaders see risk taking as a way to make money
        • 58% of the population prefer to be cautious rather than take risk

        Research was carried out in April 2009 by the Future Foundation on behalf of RSA.   252 business directors and 1,239 UK adults were interviewed.

        1 2

        Allianz Insurance has once again been recognised for its commitment to employees by achieving Investors in People (IIP) Standard reaccreditation.

        IIP is a national standard highlighting good practice in respect of staff training and development and is aimed at helping to improve the overall performance of an organisation.

        The insurer, IIP accredited since 1999, successfully completed the independent assessment which measures performance against 10 key indicators ranging from business strategy, management effectiveness and continuous improvement.

        The report found that Allianz has a culture of continuous improvement and a number of strategies in place to ensure that employees have the opportunity for professional and personal development.

        Commenting on the achievement, Philip Gennoy, HR director, Allianz Insurance, said :

        “Our objective in seeking an independent assessment was to benchmark where we stand compared with best practice and learn how we can improve further. We are committed to being a great company to work for and the results that we have received are testament to this. The feedback provided to us by IIP gives us an excellent opportunity to build further on the strategies we have in place.”

        In her final report, Anne Barrett, Investors in People assessor, commented:

        “Allianz has a proven history of improving its strategy for managing and developing people and continues to make a significant investment in terms of finance, resource and people to ensure the organisation has the necessary capability to achieve its performance targets.”

        1. Investors in People UK is a Non-Departmental Public Body sponsored by the Department for Innovation, Universities, and Skills. It is responsible for strategic direction and development of the standard, promoting and championing the standard, and managing delivery and quality aspects of the standard. It is currently the UK’s principal standard for business improvement through people. Almost 8 million employees are currently benefiting from Investors in People, equating to 32% of the UK workforce.

        0 0

        Aviva plc (“Aviva”) announces that Philip Scott will step down as executive director and chief financial officer of Aviva at the end of the year, after a career spanning 36 years with the group.

        Andrew Moss, Aviva CEO, said: “I would like to thank Philip for his considerable efforts on behalf of the group over many years. In the course of his career Philip has occupied a number of very senior positions in the group and as CFO that experience has helped Aviva navigate successfully through some very difficult market conditions.

        “Aviva has a strong and resilient business model, which has positioned us well in a challenging economic environment. Our capital position has remained strong and has been enhanced for the benefit of customers and shareholders. As we saw, sales held up well in the first quarter as customers sought out strong and secure brands with whom to save and protect their futures.

        “We are now looking ahead as we continue to transform Aviva. I have a strong executive team in place to which I look forward to adding a new CFO and together we will take the business to the next phase.”

        A search is taking place and Aviva will make an announcement in due course.

        0 0

        The OFT (The Office of Fair Trading) has announced an investigation into PPI (Payment Protection Insurance) mainly involved with the transparency of the products and the pricing. The complex nature of PPI and a lack of choice mean that consumers are less likely to shop around. It also said lenders were adopting high-pressure sales techniques to persuade customers to take out PPI. Barclays Bank has begun making cash refunds just as the regulators are moving in. Barclays surprise refunds follow an internal review of its PPI book

        The Financial Services Authority has also warned that, in a series of supervisory visits, one in three companies assessed was failing to comply with rules designed to stamp out mis-selling brought in at the beginning of this year. A recent secret investigation by the FSA raised significant concerns. In many cases PPI being automatically included in the loan quote without customers being told cover was optional.

        The OFT could ultimately take enforcement action against firms offering PPI if it finds they have breached consumer law, or refer the industry to the Competition Commission.

        PPI has become a major money earner for UK financial institutions with the total market estimated to be worth 5.4bn annually with @ 20m policies in force in the UK, according to Datamonitor. Claims ratios on PPI are estimated at between 15 and 20 per cent, compared to 55 per cent for household insurance and 74 per cent for motor insurance. A recent report by investment bank Morgan Stanley suggested income from PPI is effectively propping up the Internet bank Egg. PPI profits were equal to 20% of its pre-tax profits last year.

        They also accounted for 17% of pre-tax profits at Lloyds TSB, 12% at Alliance & Leicester, 11% at Halifax/Bank of Scotland, 7% at Barclays, 4% at HSBC and Northern Rock and 3% at RBS NatWest. With @ 60% of the lump sum premium being earned as commission the hard sell becomes clear.

        The solution :

        If you are taking out a loan there is nothing to stop the consumer taking out a straightforward monthly premium policy pro rata. Paymentshield offer numerous types of competitive policies and are recognised as an industry leader in protection insurance. Their Freestart PPI gives 6 months free cover and 25% additional cover for the life of the policy with back to day one policies.

        To keep up to date with the UK mortgage, property and finance market syndicate our news at http://www.mortgage-loan-uk.net/news/news.xml

        0 0

        A research reveals camping holidays are experiencing an unprecedented surge in popularity this summer as Brits tighten their belts and seek out cheaper breaks.

        The results found that nearly twice as many Brits (30%) are considering a camping or caravanning holiday this year compared to those who took one last year (17%).

        Research amongst campsites (Camping and Caravanning Club Mar09) also found that advanced bookings are up 27% year-on-year as campers rush to book their patch of grass. Across the country the most popular beauty spots include Cornwall (15% of planned camping trips), the Lake District (12%) and Devon (11%).

        According to the survey, amongst all UK adults, 30% are planning or considering a camping or caravanning trip this year, with the majority citing cost as the primary motivator for choosing this kind of holiday. On average, campers plan to spend £450 on their trip which equates to an estimated injection of £6.1 billion* into the UK tourist industry.

        The research findings also highlight a surge in campers planning to turn their backs on organised campsites and pitch their tents wherever they like (27%). Getting off the beaten track is the major motive**, yet very few people (21%) know the UK laws around camping in the wild, and 13% wrongly believe they can camp wherever they like, whereas in fact they are likely to find themselves on the wrong side of the law. According to legislation in England and Wales there is no legal right for people to camp wherever they like and landowners have the right to move them on. However there are areas in the country where the practice is more accepted and anyone planning a trip should research where the best places are.

        Camping is a fantastic way to experience the great British countryside, and with a hot summer predicted it’s set to be a bumper year for camping and UK holidays in general. However with camping sites full to bursting point, this could attract thieves who are looking for easy pickings. As well as taking sensible security steps such as locking the tent with a padlock, campers should ensure they have a travel insurance policy in place or extend their home insurance cover to include insurance cover for possessions outside of the home.

        Holidays and short breaks are for relaxing, and the last thing you want to worry about whilst away is what you would do if your folding caravan, tent or trailer tent was stolen or damaged. To do so, it exists several insurance to insure your camping equipment : tents, trailer tents, folding caravans. Do not forget the most important before leaving : get  a personal accident with public liability.
        * UK adult population = 45,434,897, with 30% considering a camping holiday this year. Average planned spend by campers = £449 in total. This equates to a total of £6,120,080,581.
        ** 46% of wild campers stated ‘getting off the beaten track’ as their reason for eschewing campsites

        Holidays and short breaks are for relaxing, and the last thing you want to worry about whilst away is what you would do if your folding caravan, tent or trailer tent was stolen or damaged.
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