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Xchanging, the business process, procurement and technology services provider and integrator and has gone live with phase one of Netsett, the new global net settlement platform launched in September 2012.

The Netsett platform is the result of a partnership between Xchanging and Deutsche Bank and is set to transform the way in which global insurers and brokers transact financial settlements. The platform seeks to replicate, on a global basis, the cash liquidity and operational cost saving benefits from which the London market has long benefited through the Xchanging Ins-sure Services (XIS) central settlement platform.

The first transfer of cash on the net settlement platform was successfully carried out by RSA in late December.  The transaction is an important step in proving the capability of Netsett to deliver transformation to the global insurance and reinsurance markets.

Managing Director of Xchanging’s UK Insurance Services Max Pell said: “I am delighted the system has successfully gone live on time and on budget. RSA and Deutsche Bank have been extremely determined and focussed in helping to bring about this early success. It’s not often you get the opportunity to be at the beginning of an initiative that has the potential to be truly transformational for the industry.”

Jason Roberts, Global Reinsurance Finance Business Partner at RSA said “We are delighted to have been involved with a project which will be so important for our whole industry, and to be the first organisation to move real money through Netsett. We now plan to put the product to full use, and are expecting to see very substantial benefits across the RSA Group.”

Following the successful test, RSA now intends to process its Q4 2012 and Q1 2013 treaties through the system over the next three months. At the same time Xchanging intends to bring new customers onto the platform.

The second phase of Netsett, delivering full end–to–end ACORD capability and a Ruschlikon compliant process, is due for release in Q3 2013.

Michael Spiegel, Global Head of Cash Management Corporates and Trade Finance at Deutsche Bank, said, “We have a long-standing track record of providing innovative transaction banking and capital market solutions to the global insurance industry.  Deutsche Bank is delighted to be a partner in the Netsett initiative, which we believe will revolutionise the way the industry processes premium and claims payments.”

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The UK’s leading pension providers, members of the Association of British Insurers, have announced an agreement to ensure the consistent and straightforward disclosure of pension charges and costs to employees in workplace pension schemes. 

The agreement will be implemented by the summer of 2014 for schemes newly established for auto-enrolment, and for all older workplace pension schemes by 31 December 2015. A common definition of all charges to be disclosed at the outset to pension scheme members will be developed in the first half of 2013.

Stephen Gay, Director of Life, Savings & Protection at the ABI comments:

“This agreement is a vital way of providing savers with greater understanding and confidence in the value of saving for their financial needs in later life.”

“The agreement demonstrates the industry’s commitment to improving customer understanding in pensions by disclosing all pension charges and costs more clearly and consistently.  Automatic enrolment into workplace pensions is bringing millions of people into pension savings for the first time. It is imperative that savers have complete confidence that the industry is open and transparent with them.”

Steve Webb, Minister for Pensions, MP comments:

“This is a welcome step in helping customers make decisions about their long-term savings and I hope to see providers across the industry signing up to this agreement.

“Charges really matter -small differences can have a big impact on a pension pot over time. Automatic-enrolment makes it all the more important that people have access to schemes which offer both transparent and value for money charges. The industry must be ambitious in its timescales for achieving greater transparency.”

The disclosure agreement requires:

– Disclosure to employees of total charges at outset, to a standard definition, across contract and trust-based workplace pension schemes, including any entry or exit charges

– Disclosure of the total charges taken in the previous year. The intention is that this will be expressed in pounds, either the exact amount or a rounded figure in each case, where reasonably practical

– Disclosure of the previous year’s investment transaction costs (using the IMA’s Guidance).

This agreement has been developed by the ABI and its members in conjunction with a working group consisting of representation from the Financial Services Authority, Investment Management Association, National Association Pension Funds, The Pensions Regulator and Department Work Pensions.  A number of consumer and representative bodies have also been consulted.

The ABI will monitor the agreement and provide regular progress reports.  This will include the number of schemes and proportion of the market where the Agreement has been implemented.

While the initial group of signatories is drawn from the ABI’s membership, consultation will continue on extending this to the broader market of pension provision.

The agreement forms part of on-going ABI work on improving customer experience and transparency in pensions.  This includes the launch in 2012 of the Open Market Option Code, the publication of annuity rates and the industry code on employer pension charges.

Leading pension brands who have signed up to this agreement are:

Aegon

Aviva

Axa

B&CE (The People’s Pension)

Co-operative Insurance

Friends Life

Legal & General

Lloyds Banking

Group
LV=

MetLife

Prudential

Royal London / Scottish Life

Standard Life

Zurich Assurance Ltd

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To meet employer demands during auto enrolment (AE), Jelf Employee Benefits has appointed a specialist consultant in this area.  Caroline Burnham has joined with the responsibility to manage and develop Jelf’s auto-enrolment service. 

Caroline Burnham will project manage key clients in the run up to their staging date and work with Jelf Employee Benefit’s pension consultants to ensure employers are fully prepared to meet their new duties.

She will also lead on the development and implementation of ‘AE Manager’: Jelf Employee Benefit’s auto-enrolment software solution.

Caroline Burnham will report to Alan Millward, corporate benefits director, who said: ‘Auto-enrolment will be the biggest issue that many employers are going to face this year and we are determined to make this process as smooth as possible for them.  Caroline’s appointment is key in helping us to deliver to our clients.’

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A multi-billion dollar deal in which banking giant HSBC was set to sell its stake in China’s second largest life insurer Ping An to a Thai firm is in danger of collapse.

Chinese regulators were ready to reject the $9.4 billion bid from Thai conglomerate Charoen Pokphand Group over concerns about funding for the bid, the South China Morning Post reported.

State-owned China Development Bank, which had agreed to provide loans to help CP Group buy HSBC’s 15.57 per cent stake in Ping An, was reconsidering its decision, the newspaper said.

The China Insurance Regulatory Commission (CIRC) was therefore worried about where the money would come from and whether the Thai firm would be the real buyer of the stake, the Post reported, citing sources close to the regulator.

In Shanghai trading Ping An ended the morning down 0.92 per cent at 45.04 Yuan. On Tuesday, it lost lost 3.73 per cent.

In Hong Kong Ping An was down 0.59 per cent at HK$67.75 after falling 4.0 per cent the previous day. HSBC was down 0.30 per cent at HK$82.5.  The CIRC and and Ping An could not be immediately reached. HSBC said it had no comment on the reports.

The collapse of the deal would be a big blow to Britain-based HSBC, which has been selling its non-core assets as part of a broad restructuring plan designed to boost profitability.

London and Hong Kong-listed HSBC is also setting aside hundreds of millions of dollars as provision for fines related to possible criminal charges over money-laundering allegations in the United States.

When the deal was announced December 5, HSBC said it would sell its 15.57 per cent holding in Ping An at HK$59 a share, making it the biggest foreign purchase by a Thai firm.

Ping An had hit the headlines after the New York Times said in reports in October and November that Chinese Premier Wen Jiabao’s relatives benefited ahead of its 2004 Hong Kong listing by buying stock at a discount.

The insurer has denied those claims and threatened legal action against the newspaper.

Hong Kong, Jan 9, 2013 (AFP)

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Ageas announces a number of promotions within its senior management team. Barry Smith has been appointed Chief Operating Officer of Ageas Group and Andy Watson has been appointed Chief Executive Officer of Ageas UK, both taking on their roles with immediate effect. 

In addition and by the beginning of April 2013, Mark Cliff will become Chief Executive Officer of Ageas Retail and Distribution and François-Xavier Boisseau will become Chief Executive Officer of Insurance, with responsibility for Ageas Insurance Limited and Groupama Insurances.

The appointments have been made to further strengthen the development of both the UK and Group wide Ageas businesses.

Barry Smith has taken on a newly created and wider role for Ageas Group reporting to Group CEO Bart De Smet.  As Chief Operating Officer, Barry is responsible for the implementation of the Group’s strategy across its global activities in the UK, Belgium, Continental Europe and Asia with the four business CEOs reporting to him.  Barry will remain on the Ageas UK Board.  The appointment recognises Barry’s significant contribution to the Group, together with his development and leadership of the UK business over the past 11 years which has seen it double in size and profitability and become a significant influence in the UK insurance market.

Andy Watson, currently Managing Director of Ageas UK Retail, has become CEO for Ageas UK.  Andy has been with Ageas since 2010, overseeing the successful development of the Retail businesses and their increasing contribution to Ageas’s growth in the UK market.  With a wealth of experience from other insurance companies before joining Ageas, Andy has also overseen the acquisition and integration of Kwik Fit Financial Services and Castle Cover into Ageas, broadening its owned distribution capability.  As UK CEO, Andy will continue to report into Barry.

By April 2013, Mark Cliff will become CEO of Ageas Retail and Distribution in the UK.  Mark will be responsible for all Ageas UK’s broker distribution and affinity relationships as well as Ageas’s owned distribution businesses comprising Kwik Fit Financial Services, Ageas Insurance Solutions, RIAS and Castle Cover.  This will bring all Ageas’s distribution activity together under a single leadership team.  Mark has been Managing Director of Ageas Insurance Limited since 2009, steering the company to a strong market position in its chosen product lines based on close relationships with brokers and affinity partners.

Completing the changes within the senior management team, François-Xavier Boisseau will become Chief Executive of Ageas’s wholly owned Non-Life insurance businesses from April 2013, covering both Ageas Insurance Limited and Groupama Insurances. As CEO of Insurance, François will lead Ageas’s core capabilities in Underwriting, Pricing and Claims.  He has been CEO of Groupama Insurances since 2007 building a business in the UK market which is renowned for its tailored propositions and suite of non-standard products in both Personal and Commercial lines.

of François and Mark will report to Andy Watson.

Commenting on the appointments, Bart De Smet, Ageas Group CEO said: “As we expand our business globally, we are delighted to appoint excellent and proven business leaders such as Barry, Andy, Mark and François to take us through the next stage of our development.  They bring talent and expertise to our Group and a track record of delivering strong results which I’m confident will continue in their new roles.  By appointing such experienced internal candidates, it is a positive reflection on the strength of Ageas’s management team as well as offering continuity and confidence to our brokers, clients and partners in the UK.”

Barry Smith, Chief Operating Officer Ageas Group commented: “I’m delighted to be taking on this new role and the opportunity to work even more closely with Bart and our experienced CEOs in Europe and Asia to grow our business profitably.  Ageas is already a very strong business with a clear strategy and clear targets towards 2015, focused on the needs of our business partners and customers.  I’m looking forward to building on that client focus across our markets.”

Andy Watson, CEO of Ageas UK added: “It’s an exciting time for Ageas UK as we continue to expand our business and a real privilege to be leading it through the next phase of its progression.  The new roles for Mark and François reflect their expertise and experience, with François managing our growing technical capability and Mark strengthening relationships with our broker and affinity customers as well as our owned brands.  Together with Barry’s new role, the continuity within the UK and Ageas Group will be further strengthened. We also have great support from our brokers and partners in the UK and we will continue to work in genuine partnership with them.”

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If you come to a fork on the Internet, take it. It may end up being beneficial to your health. The French-based startup Slowcontrol is unveiling at the Consumer Electronics Show this week what it calls the first Internet-connected fork, capable of monitoring the pace of eating to keep people from overdoing it.

“We know that overeating is unhealthy, it contributes to obesity,” said inventor Jacques Lepine, noting that in studying the problem of overeating, “I decided I might be able to help solve the problem with the fork.”

Lepine developed a connected fork which monitors caloric intake for a meal, and if people go too far, “it sets off an alarm” and begins to vibrate.

The device, which is dishwasher safe when electronic components are removed, is expected to sell in the United States for $99 starting in April. It will come with software allowing users to program their appropriate eating habits.

The device to be called the “HapiFork” may be sold along with other health devices through a firm called HapiLabs.

Washington, Jan 7, 2013 (AFP)

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Impact Forecasting, the catastrophe model development center of excellence at Aon Benfield, releases the latest edition of its monthly Global Catastrophe Recap report, which reviews the natural disaster perils that occurred worldwide during December 2012. 

The report is a precursor to Aon Benfield’s Annual Global Catastrophe report, which will be launched on January 24, 2013, and will provide a month-by-month detailed analysis of the worldwide weather events of 2012 in addition to comprehensive climatological analysis.

The December catastrophe report reveals that Super Typhoon Bopha killed 1,901 people and injured 2,666 others after making landfall on the southern Philippine island of Mindanao as a Category 5 typhoon.

Bopha damaged or destroyed more than 216,000 homes in 34 provinces including Davao Oriental and Compostela Valley which sustained extensive damage.

Economic losses to agriculture, infrastructure and private property were recorded at PHP37 billion (USD802 million), with an additional PHP5 billion (USD122 million) allocated to the rehabilitation of farms. In Palau, Bopha caused USD20 million in damage.

Also in the Philippines, Tropical Storm Wukong left at least 24 people dead or missing, with reported losses to agriculture and infrastructure recorded at PHP225 million (USD5.5 million).

Elsewhere, Cyclone Evan crossed the Samoan Islands, Fiji, Tonga and other small islands in the South Pacific Basin, killing at least 14 people.

In Samoa, Evan caused extensive damage along coastal areas, with total economic losses estimated at WST300 million (USD133 million); in Fiji, economic losses were estimated at FJD15 million (USD8.4 million).

Steve Jakubowski, President of Impact Forecasting, said: “The cyclonic weather that Southeast Asia and the South Pacific experienced during December has had a devastating effect on local populations. Insurance and reinsurance penetration in the affected territories is significantly lower than in the more mature western markets, so the impact of a weather system such as Super Typhoon Bopha on the Philippines places an even greater strain on regional recovery efforts and the availability of sufficient government aid.

Also in December, winter storms impacted the United States and parts of Europe. In the U.S., The Plains, Midwest, Northeast and the Mid-Atlantic States endured heavy accumulating snowfall as the inclement weather prompted major travel delays. On Christmas Day, 28 tornadoes were recorded in the Southeast – historically the largest tornado outbreak to occur on December 25.

In Europe, at least 277 people were killed as more than 15 central and eastern countries were subjected to severe winter weather conditions, leading to widespread damage, the closure of hundreds of roads, and the cancellation of flights and shipments along the Danube River after certain stretches became frozen.

Meanwhile, New Zealand endured its deadliest tornado in 60 years. At least three people were killed after the EF-2 twister struck the west Auckland suburb of Hobsonville, damaging or destroying at least 150 homes near Whenuapai Air Force Base. New Zealand’s Ministry of Civil Defense estimated total damages at NZD11 million (USD9.1 million).

Flooding was prevalent across parts of Asia in December, with Sri Lanka sustaining the worst effects. At least 42 people were killed and nearly 30,000 homes damaged or destroyed in addition to agriculture and infrastructure, after flooding and landslides impacted most of the country.

In Indonesia, three people were killed in West Sumatra’s Solok Selatan district after rains caused a landslide which destroyed more than 2,000 homes.

The Iraqi capital of Baghdad sustained its heaviest rains in at least 30 years, triggering floods that killed at least four people.

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The Board of Directors has announced the appointment of A. Greig Woodring, President & CEO, Reinsurance Group of America (RGA), as Chairman-Elect of the International Insurance Society (IIS).  The appointment is effective January 1, 2013, positioning Woodring to succeed current IIS Chairman, Norman R. Sorensen, recently retired as Chairman–International of Principal Financial Group, at the Board of Directors meeting on June 16, 2013 taking place in conjunction with the annual IIS Seminar in Seoul, Korea.

“Greig is very highly regarded throughout the industry for his leadership experience and his thorough understanding of the global insurance industry, which will be a tremendous asset as IIS continues to expand”, says Michael J. Morrissey, IIS President and CEO.  “The IIS has flourished under Norman’s excellent leadership and we are very pleased to have found in Greig such a worthy successor”, Mr. Morrissey adds.

Of his successor, Norman Sorensen says, “RGA has been a tremendous supporter of the IIS for many years and we are immensely grateful to Greig for his personal involvement and support.  I am supremely confident in his ability to lead the IIS and look forward to working with him over the next few months to ensure a seamless transition”.

Greig Woodring states, “the IIS plays a critical role in advancing the global insurance industry. It successfully facilitates the global exchange of ideas, and I share the IIS dedication to original industry research. I look forward to working with other insurance leaders, regulators and scholars to enhance the IIS mission.”

Greig Woodring is President and Chief Executive Officer of RGA and sits on the Board of Directors. Prior to being named President, Woodring served as Executive Vice President of General American Life Insurance Company (now GenAmerica Financial), overseeing the reinsurance business.  Woodring has an extensive history in the insurance industry, joining General American in 1979 as an actuary and assuming responsibility for their reinsurance business in 1986. Prior to joining General American, he was an actuary at United Insurance Company in Chicago, Illinois.

Greig’s leadership and keen business acumen have been pivotal in positioning RGA as a leader in the global life reinsurance industry with approximately $2.9 trillion of life reinsurance in force and assets of $39.9 billion. It is one of the largest life reinsurance companies in the world and is the only global reinsurance company to focus primarily on life and health-related reinsurance solutions.

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Mohammed Hemani has been appointed Head of Customer Services at the Motor Insurers’ Bureau (MIB).

Hemani will oversee the Bureau’s customer-facing services including claims operations, which compensate motorists who have been involved in accidents with uninsured or untraced drivers. Hemani will also manage MIB’s counter-fraud team, which is responsible for ensuring only genuine claimants are compensated.

In 2012, the MIB settled nearly 50,000 claims and prevented over £14 million worth of claims fraud.

Hemani has been seconded to this role since July of this year and will take up the post permanently with immediate effect. A qualified accountant, Hemani was appointed MIB’s Chief Accountant in 2001, responsible for statutory and management accounting at the Bureau. Prior to MIB, he had accountancy experience with one of the UK’s FTSE100 publishing companies, Reed Elsevier and with CNA Reinsurance.

Ashton West, Chief Executive of the Motor Insurers’ Bureau, said: “Providing first class customer service is at the heart of everything that we do, particularly when supporting accident victims with access to rehabilitation and compensation. Mohammed will continue to drive continuous improvements in the Bureau’s customer service operations.”

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Rating firm Standard & Poor’s lowered its rating on French insurer AXA, citing its exposure to the troubled eurozone. 

S&P said it cut AXA Group’s long-term rating by a notch, to A+ from AA-, despite its retained earnings and recent investment market appreciation.  “We still view its risk-adjusted capital adequacy level and sensitivity to market conditions as rating weaknesses,” the agency said.

“Furthermore, uncertain investment markets, low interest rates, and the economic recession in the Eurozone are likely to dampen the group’s earnings growth potential and its ability to markedly strengthen capital adequacy.”

S&P said it had a stable outlook on AXA because it believes the insurer’s ongoing execution of its strategy would probably to lead to strengthened earnings retention and risk reduction.

Washington, Dec 18, 2012 (AFP) 

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The EU ruling prohibiting insurers from setting premiums along gender lines provides a one-off opportunity to raise rates with the introduction of the new rules on 21 December, Fitch Ratings says. We do not envisage any changes to insurers’ credit ratings in the near term from these changes.

UK insurers should be able to cope with the new requirements, despite the risk that gender-neutral premiums could distort pricing and introduce cross-subsidies between the genders. We believe that insurers have the necessary underwriting and pricing expertise to maintain profitability, although there is likely to be some disruption for insurers while they adapt their systems to the gender ruling.

Insurers will need to make better use of other pricing factors to reflect the risk of each policyholder. In personal motor, postcode, age and driving experience are likely to carry more significant weight setting premiums. We expect personal motor price hikes to be uneven, with younger less-experienced female drivers likely to incur the greatest rises.

For life insurance, the pricing impact is likely to be less dramatic because joint-life products, the bulk of business volume, typically have both genders factored into the pricing already. Also, age and health are stronger indicators of mortality risk than gender, and hence are already more significant pricing factors. However, we expect some changes for single-cover pension annuities where rates differ by around 10% between the genders, with women paying more to reflect their longer life expectancy. The gender ban is likely to see this gap narrow as annuity rates fall for men and rise for women. For single-cover life protection, men may get a better deal when the ruling is in force.

Pricing shifts between the genders are unlikely to significantly affect overall business volumes and risks profile for insurers. For many products, customers will largely have to accept the new rates, as there are limited alternative options. New premiums will likely include a loading to cover the unpredictable changes in the gender mix of the business and help offset potential increases in risks. Insurers may also look to pass implementation costs onto customers.

The pricing impact from the gender ruling could be blurred by the wide variability in premiums between competitors as they respond to market conditions and position themselves strategically. Other regulatory changes, such as those affecting the distribution of retail products, are also likely to be significant influences on product pricing for insurers.

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US insurance giant American International Group (AIG) will sell its remaining stake in Asian insurer AIA, in a deal that could raise up to $6.5 billion. 

The sale will mark AIG’s total exit from AIA after the US insurer, which was bailed out by Washington during the financial crisis, sold two-thirds of the unit in a Hong Kong listing in 2010 to help repay the financial aid.

The Hong Kong initial public offering in 2010 raised US$20.5 billion, making it one of the world’s biggest.

AIG, which holds 13.69 per cent in AIA, started selling 1.65 billion shares at a price range of HK$29.65-HK$30.65 ($3.82-$3.95), Dow Jones Newswires said, quoting a term sheet.

In a short statement AIA said trading in it had been suspended in Hong Kong on Monday pending the potential sale by AIG on a “significant portion” of its stake. AIA said it expects the trading to resume no later than Tuesday.

AIG has sold off assets as it restructured itself back to a path of profitability, and raising money to repay the $182 billion bailout it received from the US government four years ago.

It has sold AIA shares twice this year, raising a total of $8 billion. The move also comes a week after the US Treasury sold off all of its remaining shares in AIG, earning the government $7.6 billion from the sale and taking the government’s net profit on the AIG bailout to $22.7 billion.

Hong Kong, Dec 17, 2012 (AFP)

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A new scientific study of driver behaviour commissioned by Direct Line car insurance reveals that drivers spend 18 per cent of their time behind the wheel not watching the road at all.  Instead they gaze at clouds, scenery, adverts and other non-driving related distractions, on average taking their eyes off the road every nine seconds.

The study, which utilises the latest in eye-tracking technology to record drivers’ eye movements, found motorists using sat nav devices were even more distracted, with 22 per cent of their time focussed away from the road.

The study shows that drivers with a sat nav have their eyes fixed on this screen, and therefore not looking at the road, for 12 per cent of their total journey time.  This is almost four times as long as the average driver spends checking their mirrors (3.2 per cent) and six times longer than they spend observing oncoming traffic (two per cent). For a driver travelling from London to Brighton, a journey of one and half hours, this is equivalent to 11 minutes with their eyes fixed purely on their sat nav screen.

According to the study, the average motorist spends seven per cent of their time on the road gazing at clouds and scenery and 0.8 per cent of their time observing adverts. In contrast, just two per cent of their time is spent actually looking at oncoming vehicles and 0.6 per cent observing road signs.

Interestingly, motorists spend the same amount of time (three per cent) watching pedestrians (who were neither on or crossing the road) as they did checking their mirrors. And while both men and women appear to have been distracted by good looking pedestrians, only men turned their heads completely away from the road as a result.

Simon Henrick, spokesperson for Direct Line car insurance said, “For the first time we know exactly where people focus their eyes when driving and the results are frightening.  Even when drivers appear to be watching the road, by tracking movements in the cornea, we now know they are often watching clouds or shop window displays.  It is important that every time a driver gets behind the wheel that they concentrate for the whole journey, otherwise they risk injuring themselves and others.”

Table one:  What motorists really look at when driving:

 

 

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Insurance software house Transactor Global Solutions Ltd (TGSL) has been chosen as the new software supplier for specialist agricultural and horticultural insurance provider Farm & General Insurance Consultants Ltd.

The new system includes branded B2B & B2C websites, along with a range of back office software including the Transactor Accounts Suite, Document Manager and several third party integrations. The news comes a month after TGSL announced its most successful trading year to date with pre-tax profits up 20%.

Roger Morgan, Managing Director, Farm and General, said “We chose Transactor because it offered us flexibility in this ever changing market. We particularly liked the level of control the software offered, allowing us to run both personal and commercial lines on the same system.”

Alex Williams, Sales Executive, TGSL, said, “Farm & General are an excellent example of a company looking to do something different, and find their own niche. They are initially launching a wholesale Environmental Liability scheme accessible via a B2B portal, with ambitious plans to distribute further schemes on the portal for other lines of business in the near future.”

 

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One in six British households (4.5 million) will be vacant for more than 24 hours over the Christmas period raising concerns over security and safety, according to new research from Santander Insurance.

While more than a quarter (27 per cent) of Britons who are planning to vacate their homes over Christmas say they will leave their tree lights on so that the property appears occupied. Santander is urging households to consider other ways of protecting their home and not to risk house fires by leaving tree lights on for prolonged periods or when the property is unoccupied.

Santander’s survey also revealed that the use of social networking sites over the festive season could compromise home security, with 43 per cent of people, who will leave their homes unoccupied, intending to post updates about their whereabouts. Thirty per cent of those planning to go away over Christmas say they will update their Facebook status with a message about where they are and one in 10 (11 per cent) will tweet about it. A further 2 per cent say they will use other social networking sites to inform people about where they will be over the festive season.

The findings show that 9 per cent of Britons will be away on Christmas Day and 7 per cent on Boxing Day. Seven per cent will vacate their homes in the week before or after Christmas and 6 per cent will be away from home on New Year’s Eve.

In London, the proportion of those leaving their homes unoccupied over Christmas is considerably higher, with a third (33 per cent) choosing to do so. The trend is also more pronounced among younger people, with 27 per cent of 18–34 year olds leaving home over the festive season compared to just 10 per cent of those aged 55 or over.

Younger people are also more likely to leave their Christmas tree lights on and post messages on social networking sites about their location over Christmas, with three –quarters (74 per cent) of 18-34 year olds going away over the festive period intending to post details of their whereabouts.

% of respondents away over Christmas that will … Aged 18 – 34 Aged 35 – 54 Aged 55+ All
Leave tree lights on to make the property appear occupied 42% 14% 15% 30%
Update a social networking site with details of their whereabouts 74% 24% 5% 43%

Richard Al-Dabbagh, Santander Insurance, said: “It’s important to protect your home over the festive period as darker nights and an abundance of valuable gifts mean that burglary and opportunistic crime is rife at this time of year. However, leaving Christmas tree lights on for prolonged periods is a potential fire hazard.

“It’s easy to forget just how valuable the contents of our homes are over Christmas as we stockpile expensive food, drinks and gifts. Comprehensive home insurance that protects these items is invaluable at this time of year, but prevention is always better that cure so we’re also advising people to take heed of some simple tips that will help to keep their homes and possessions safe this Christmas.”

Santander Insurance’s tips for protecting your home over Christmas

– Don’t leave Christmas presents in clear view through the window

– Before you wrap valuable gifts, take note of the serial number and keep all receipts

– Dispose of present packaging carefully as leaving boxes outside highlights the recent purchase of desirable items

– If you have spare keys or car keys inside your property, keep these hidden in a safe place and avoid keeping large amounts of cash at home

– Draw curtains and blinds when the property is vacant in the evening. Leaving a main light on is advisable but do not leave decorative lights on, as this could be a fire hazard

– Don’t advertise your whereabouts on social media sites

– If you do notice signs of a break-in use a neighbour’s phone to contact the police – don’t go inside or touch anything

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    Relatively high capital charges for securitizations under the new Solvency II European insurance rules could lead European insurers to dramatically reduce exposure to the asset class and invest in covered bonds instead, according to a report published by Standard & Poor’s Ratings Services.

    The report titled “Solvency II Could Push European Insurers Away From Securitizations,” highlights how the capital charges for senior securitizations under the draft Solvency II rules’ standard formula are up to 10 times higher than those for similarly-rated covered bonds, meaning that return on capital is generally lower for securitizations. Pension funds–which could soon be subject to regulation based on Solvency II–may also have an incentive to move away from the securitization sector.

    “Given that the insurance sector potentially represents more than 10% of the investor base, we expect that the regulation could cause securitization volumes to fall, while covered bond investment could rise,” said credit analyst Mark Boyce.

    He added: “Solvency II regulation remains subject to change, and transitional periods could soften the blow on the insurance industry. The implementation date of the legislation could be delayed for another one or two years, and even then, insurers may have up to 10 years of additional breathing room
    before having to implement the new capital adequacy rules. Still, some insurers have already begun to move away from investing in securitizations, and we expect this to continue if the final Solvency II rules closely resemble the current draft.”

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    Over one in four (28%) UK businesses – equivalent to 480,000 firms – are considering cutting costs to cater for the rising costs of raw materials, according to research commissioned by NIG, the commercial insurer.

    Larger firms are being hit harder, with nearly half (46%) of those with an annual turnover of over £20m actively looking to offset rising raw material costs by making reductions in other areas of the business.

    Significantly, 6% of businesses in the UK, equivalent to 109,000 firms, admit that the rising prices of raw materials means that they might not be adequately insured against theft given the extra, unaccounted costs to replace stock.  The same number (6%) also admit that they might not be adequately insured against damage such as fire or flooding.

    The research reveals that 16% of all SMEs in the UK are also considering altering business processes or products as a way of dealing with the upward trend of raw material prices.  This proportion rises for businesses that have an annual turnover of more than £20m to 24% – equivalent to around 4,000 firms.

    Jon Greenwood, Managing Director at NIG, said: “UK businesses continue to face a very challenging economic environment and a key aspect of this for many firms has been the rising cost of the materials they use to build their products.  The consequence is that adjustments are being made in other parts of their businesses to counter these cost pressures.”

    UK manufacturers are particularly affected, according to the research.  While one in four (25%) retailers are considering reducing their costs to cater for rising raw material costs, over two-fifths (43%) of manufactures are doing the same.

    % of firms, segmented by turnover, concerned about the need to cut costs due to the rising costs of raw materials
    Turnover

    %
     

     
    £50k-£100k

    24
    £100-£250k

    33
    £250k-£500k

    26
    £500k-£1m

    26
    £1m-£5m

    24
    £5m-£20m

    17
    £20m+

    46
    Overall

    28

    Source: NIG/ BDRC Continental   

    The research reveals large disparities across the country. While only 6% of businesses in East Anglia say they are considering cutting costs to cope with the rising price of raw materials, this rises to 20% in the Midlands, 28% in the South and 37% in the North.  The North West is the most affected region, however, with 52% of firms looking to find savings to address the issue of rising costs.

    Jonathan Greenwood, Managing Director at NIG, said: “UK businesses have worked extremely hard during the past five years with many focusing on primary challenges such as maintaining growth and keeping customers happy.  However, raw material increases have begun to impact many firms and there is a clear need for UK businesses to consider how this might have effected their insurance requirements and cover.

    “Firms concerned about the issue of raw materials costs should consult their insurance broker as there are ways of mitigating the issue of rising costs.  Many can provide information and advice about how businesses can be better protected, especially how to protect premises and stock; they can also arrange for a risk assessment to be carried out by the insurance company, which can help identify potential issues.  This is especially the case if increasing raw material prices mean firms have inadequate cover for damage or theft.”

      0 0

      President Barack Obama may have defeated opponents of his landmark health care law in the courts and at the ballot box, but the sweeping reforms still face a rocky road ahead. 

      Advocates are concerned that the funding needed to help expand coverage to 30 million uninsured Americans could take a hit in budget negotiations as Obama battles his Republican rivals over the so-called fiscal cliff tax and austerity crisis.

      The implementation process is also expected to get messy as responsibility passes to the governors and health departments of the nation’s 50 states, many of which are led by Republicans who have stridently sought to repeal the measure widely dubbed “Obamacare.”

      Republicans say the reforms, signed into law in March 2010, will increase costs, cause insurance premiums to rise and hurt the quality of health care. They have especially taken issue with a key underpinning of the overhaul, an “individual mandate” requiring almost every US citizen to take out health insurance or be subject to a fine beginning January 1, 2014.

      States have until December 14 to decide whether they want to set up health care exchanges that form one of the backbones of the Affordable Care Act — or if they want the federal government to handle the matter.

      These exchanges are meant to help those who will be required to purchase health insurance to choose between available plans and obtain information about subsidies. If run properly, the exchanges can help lower costs for everyone by spreading the insurance risk and reducing the number of uninsured who end up racking up unpaid bills at hospital emergency rooms. They also help insurance companies recover the cost of new rules — also set to kick in on January 1, 2014 — that will prevent them from denying coverage for pre-existing conditions, increasing rates due to gender or health status, or placing annual caps on coverage.

      “A lot of the reason we succeeded in Massachusetts is because we ran ads during Red Sox games telling people you have to sign up for health insurance,” said John Gruber, an economist at the Massachusetts Institute of Technology who helped design Obamacare and was a key architect of the northeastern state’s 2006 reforms.

      “The overall level of moral support of the enterprise — which is pushing people to sign up, not undercutting the vision of the law — that’s something I’m worried about.”

      Another key aspect of the law that will be left up to states is whether to expand government-funded Medicaid programs that provide insurance to low-income children, adults, seniors and people with disabilities.

      While federal funding will cover nearly all of the cost of expansion in the initial years, state budgets remain strained by the sluggish economy and some governors may reject the funding for political purposes.

      “The politics are still percolating,” said Andrew Hyman, of the Robert Wood Johnson Foundation, a health care advocacy group. Efforts to repeal the law collapsed when Republicans failed to defeat Obama or take control of the US Senate in the November 6 election.

      While some legal challenges remain, the law’s core principles were upheld by the Supreme Court in June. However, congressional Republicans can still use oversight powers to try to complicate implementation while governors will have even more stalling power.

      “To do this right requires an all-out, full bore engagement on the part of the governor, and without that I do worry about what the states will be able to accomplish,” Hyman told AFP.

      “The road ahead is going to be difficult, but the great thing is we’re making important strides and people who have been hurt in the past because of our broken system are going to be significantly better off when the law goes into full effect.”

      The Obama administration is quick to point out that millions of people have already been helped by aspects of the law that have already taken effect.

      Children can no longer be denied coverage on their parent’s plans due to pre-existing conditions. Insurance companies can no longer place lifetime caps on coverage or withdraw coverage because of a simple mistake on their application form.

      Some 3.1 million people got coverage after new rules required insurance companies to let them stay on their parent’s plans until the age of 26, instead of losing coverage after they graduated from high school or college.

      Seniors are getting reimbursed for some of their drug costs while insurance companies can no longer charge cost-sharing ‘co-pays’ for many preventative health care services.

      Meanwhile, insurance companies have to justify significant rate hikes and must send out rebate checks if they spend more than 20 per cent of their funds on administrative costs.

      Chicago, Dec 8, 2012 (AFP)

      0 1

      Mitsui Sumitomo at Lloyd’s has appointed Simon Catt as Head of Claims.

      Catt joins from Travelers Syndicate Management at Lloyd’s where he was also Head of Claims for over eleven years.  Prior to this role, he spent 15 years in both claims and underwriting positions for Elliston, Sphere Drake and Exall Warren Derby.

      He assumes the lead role within the claims team from Jonathan Poole who was promoted to the position of Chief Executive Officer of Mitsui Sumitomo Insurance Company (Europe) in June.

      Andrew McKee, Chief Executive Officer of Mitsui Sumitomo at Lloyds’s said: “The role of leading our claims team is of considerable importance to Mitsui Sumitomo.  Simon will ensure we evolve this function so that it continues to deliver the exceptional levels of service and support expected by our brokers and their clients, whilst demonstrating operational efficiency.  I would like to welcome Simon to our management team and I very much look forward to working with him.”

      0 0

      Commenting on the reduction in pensions tax relief, Otto Thoresen, Director General of the Association of British Insurers, said: 

      “Changing pensions tax allowances for the second time in three years is frustrating although we understand the economic pressures facing the Government.

      “It is now vital that ministers commit to these thresholds and avoid further tinkering if long-term savers are to be encouraged to put aside income for their retirement.

       “Pension tax relief helps avoid double taxation and encourages people to be self-reliant in retirement so it is in everyone’s interests that savers feel confident in the stability of the system.”

      – On changes to income drawdown, Steve Gay, ABI’s Director of Life, Protection and Savings, said:

      “Drawdown customers will welcome the boost to the income they can take from their pensions. The ABI will work closely with its members and Government to ensure this is implemented as efficiently as possible and we look forward to seeing further details”.

      – On the competiveness of the UK as an insurance base, Otto Thoresen commented:

      “We welcome the Government’s statement that it is keen to encourage and further build the UK’s position as a competitive base for international insurers and we are pleased the Government recognises the contribution the sector makes in terms of exports and long term investment. The ABI stands ready to work with the Government in any way it can to achieve this goal.”

      – On the reduction in the rate of corporation tax, Otto Thoresen, said:

      “We strongly welcome the further reduction in the rate of Corporation Tax. It will undoubtedly improve the competitiveness of the UK, and increase returns for investors in British companies.”

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