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George Stobbart

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Telematics Update: Has Insurance Telematics Reached its Tipping Point?

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Apr 5, 2012

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As of December 2012, insurers in the EU will be prohibited from using gender as a rating factor in motor insurance. It is possible that other long established rating factors will also change, such as age and property location. An analysis by the Labour Party UK, found that female drivers could be hit with up to £362 in extra premium costs once the gender ban comes into force on 21 December 2012.

Research by Telematics Update shows that vehicle telematics offers the opportunity for individuals to be assessed on a case-by-case basis, rather than being categorized by gender, age or location. There is no doubt that standardisation of telematics data will make it much easier for customers to shop around and switch insurance providers, whilst retaining a lowered premium. Sharing telemetric data-based-risk calculations will make this a possibility. Reports suggest that the uptake of telematics car insurance policies is expected to increase from the current level of almost 200,000 to as many as five million over the next two years.

“Whilst telematics is not new to the insurance industry I think we have reached the tipping point, and with the number of disparate organisations competing to grab a share of the market opportunity, I think we will see some real innovation.” – Manjit Rana , Founder and Director of Ingenin.

It is critical for telematics providers to understand how insurers, automakers, the government and tier one technology suppliers visualise business models, technology and strategy developments in this field to design products and timelines in-line with current trends.

Telematics Update’s Insurance Telematics EU 2012 Conference will bring together these decision makers, allowing key players in the value chain to gain insights into different strategies and capitalise on the new legislation.

Here are a few features of the conference:

– Learn how you can capitalise on the insurance telematics boom with expert speakers from Zurich, AVIVA, insurethebox, Direct Line and Mercedes Benz Bank

– Learn how to harness and utilise driver data to deliver highly tailored and targeted solutions to build your business model

– Meet with 300+ executives (including Insurers, OEMs, Tier 1s and TSPs amongst other key players) during the structured networking sessions to secure crucial partnerships

For more information go to: http://www.telematicsupdate.com/insurance-telematics-eu/

Or contact:

Shreya Ganapathy

Project Director |Telematics Update

P: +44 20 7375 7150

E: sganapathy@telematicsupdate.com

Validation of Risk – Access to Data is Key

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Apr 5, 2012

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The impact of fraud on the industry, insurers’ bottom lines and the insurance buying consumer is well documented. The detection and prevention of claims fraud has been a primary focus for insurers who have invested in technology, specialist service providers, in-house experts and collaborative data initiatives to reduce their exposure. Significant progress has been made and the industry is now increasingly applying a similar ‘zero tolerance’ approach to application fraud.

Today’s consumers have high service expectations and are increasingly using technology to make purchasing decisions. This trend looks set to continue as the current ‘online generation’ permeates the market and becomes more influential. It is a recognised fact that insurance cover purchased online is more prone to fraud via ‘risk manipulation’, where applicants massage information to achieve a more favourable premium. The anonymity of the buying process assists the fraudster when purchasing a new policy, making mid-term adjustments or renewing cover.

Validating a risk at point of sale is vital for insurers and brokers to ensure they are providing the right cover at the right price and are not subject to application fraud. The acknowledged challenge is to validate the risk without jeopardizing the sale or alienating an honest customer. Swift, efficient processes are essential and must accommodate the variety of distribution channels used by the market.

Insurers recognise the business benefits of being information rich when assessing risk and setting underwriting rules. Much of the industry is already using a selection of data sources like the Motor Insurance Database, Claims and Underwriting Exchange, vehicle registration data, electoral roll, postcode validation and credit checks when premium payment is requested by instalments. And more data sources are to become available to the industry. The second half of 2012 will see the launch of the Insurance Fraud Register, which will hold information on individuals who have committed insurance fraud.

To enable speedy verification of information provided at point of sale, access to multiple data sources is becoming business critical for insurers and brokers. There is notable caution around introducing new processes that could impact on established internal systems. Insurers want to be able to take data feeds and use them to underwrite against real time risk information without increasing administrative burden or impacting operational efficiency. Insurers can gain competitive advantage when they have the capability to interrogate third party data sources and seamlessly integrate the findings with their back office system and rating engine software. Risks are accurately assessed and can be declined if they fall outside the insurer’s risk profile or present anomalies linked to a potentially fraudulent application. Relevant risks, meanwhile, are quoted for the right cover at the right price. The result: reduced loss ratios and reduced exposure to fraud, both of which lead directly to an increased bottom line.

Insurers with legacy technology systems are becoming further disadvantaged in this brave, new, data driven world. The growing insurance community using Landscape, the packaged insurance system from RDT incorporating rating engine software and a full cycle policy and claims administration solution, are benefiting from future proof, flexible technology. Landscape can integrate with any number of data sources irrespective of their technology platform, interrogate the data and process the results real time, to feed the rating engine. In addition, insurers have the ability to swiftly and simply adjust their rating engine and business rules to ensure they adapt to market influences and are consistently competitive. The future looks bright for those with the right technology; less so for those locked in the past by their IT infrastructure.

Mark Bates, CEO – RDT

www.rdt.co.uk

TINtech: The Insurance Network Technology Conference

Calendar

Mar 30, 2012

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June 19^th 2012 | The Brewery | London

The Insurance Network’s 4th Annual Technology Conference explores how technology supports and enables effective business processes, drives competitive advantage and provides key insights into how new technologies will strategically impact the insurance industry.

A new format for 2012 combines keynote presentations and sessions streamed by business line in the morning, with case studies, panels and workshops looking at specific technology challenges in the afternoon. The final session will be a closing keynote.

Read more online

High Growth Economies & Emerging Markets

Calendar

Mar 30, 2012

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One Day Conference

May 3^rd 2012 | Dexter House | London

A sustained period of flat-line growth in the established insurance markets has led many companies to explore new regions in search of growth, market share and profit. It is no longer the case of whether companies should be entering new markets but which ones provide the best potential for ROI.

The potential for sustainable, long term returns from huge new markets is driving expansion – however, the risks remain high for those that don’t make the right investment decisions or execute the venture effectively.

Read more online

WHO : tobacco industry is a devious enemy

International

Mar 20, 2012

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World Health Organisation (WHO) chief Margaret Chan on Tuesday decried the tobacco industry as a “ruthless and devious enemy” and urged governments and civil society groups to unite against cigarette firms.

Speaking at a conference on tobacco and health in Singapore, the WHO director-general slammed cigarette companies for undermining a UN-backed campaign against tobacco use and its associated health risks.

“We have an enemy, a ruthless and devious enemy, to unite us,” she told delegates.

“The enemy, the tobacco industry, has changed its face and its tactics. The wolf is no longer in sheep’s clothing, and its teeth are bared.” Chan said moves by cigarette firms to challenge the legality of government measures to protect public health amounted to interference in countries’ domestic affairs.

“This is direct interference with a country’s internal affairs. We will not let them do these kinds of tactics,” she said, accusing tobacco companies of using their deep pockets to stymie efforts to curb smoking. “Big tobacco can afford to hire the best lawyers and PR firms that money can buy.

Big money can speak louder than any moral, ethical or public health argument and can trample even the most damning scientific evidence,” she said.

Proposals by cigarette companies to form “joint government-industry committees” to oversee anti-smoking campaigns in some countries were also condemned by Chan.

She said tobacco firms would simply use any such committees “to vet all policy and legislative matters pertaining to tobacco control.”

“Don’t fall into this trap. Doing so is just like appointing a committee of foxes to look after your chickens,” she warned.

Chan, a former Hong Kong health chief who was elected to the WHO’s top post in November 2006, said legal actions filed by tobacco companies against authorities in Uruguay, Norway, Australia and Turkey were designed to weaken their resolve to control tobacco use.

“What the industry wants to see is a domino effect,” she said.”When one country’s resolve falters under the pressure of costly, drawn-out litigation and threats of billion-dollar settlements, others with similar intentions are likely to topple as well.”

Urging civil society groups to take up the slack when government efforts are weakened due to legal challenges from the tobacco industry she said: “we need this kind of outcry, this kind of rage.”

According to the WHO, tobacco use kills nearly six million people each year, including more than 600,000 who are non-smokers but exposed to second-hand smoke.

The UN health watchdog says the annual death toll could rise to more than eight million by 2030. In a major victory for the anti-tobacco campaign, the WHO pushed for a global treaty called the Framework Convention on Tobacco Control which came into force seven years ago. But a study released Tuesday on the sidelines of the Singapore conference said “interference” by cigarette firms in public health policies is slowing down the campaign against tobacco use.

Many leading cigarette companies say they back greater regulation but warn that too strict actions will force smokers to buy from the black market, which can not be monitored.

On its website Philip Morris says its priority is to conduct research to reduce the risks of smoking-related diseases, while British American Tobacco’s website says plain packaging on cigarettes is “a gift to the black market”.

Singapore, March 20, 2012 (AFP)

Wayne Pontin is new AMII chairman

Industry News

Mar 20, 2012

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At the Annual General Meeting today of The Association of Medical Insurance Intermediaries (AMII), Wayne Pontin was appointed chairman.

Pontin was a member of the AMII executive committee from 2007 to 2010 and is currently Sales Director (West) of Jelf Employee Benefits. He succeeds Andrew Tripp, who has been AMII’s chairman for the last two years.

Tripp also steps down from the executive committee having been a member since March 2007, including serving as AMII’s treasurer.

Other AMII changes include the appointment of Brian Walters from Regency Health as vice chair and two new committee members, Stuart Scullion from The Private Health Partnership and Sue Smith from Health Care Plus.

Debbie Kleiner Gaines from Best Health UK remains treasurer for a further year. Also, continuing on the Executive Committee are Lindsey Joseph from LEBC Corporate Healthcare Solution; Hazel Gregory from Medical Insurance Services; and Graeme Godfrey of Best Go Private.

In addition, Liz Nualls, business relationship manager of Aviva Health joins the executive committee for a two-year period as the insurer representative.

Mike Wagg from Simplyhealth has stepped down from the role of Insurer Representative after completing his two year term, and John Miller from Bell Healthcare and Isobel Skeates from Direct Healthline have stepped down as executive committee members after completing their three-year terms of office.

Following his appointment, Pontin said, “AMII must be the accepted voice of the healthcare industry both within trade circles and the political environment, and to achieve the latter the Association has to work alongside BIBA. It is also vitally important that the relationship with the PMI providers is strong and I will develop this throughout my term of office”

“AMII must also be a recognised standard of excellence which is representative of the whole industry from the self employed adviser to the global intermediary involved in health protection insurance and related products.

“Working closely with the CII, we will continue to raise the bar through the introduction of accredited CII examinations and qualifications similar to those that exist within the financial planning industry.

“The benefit of membership must also be clearly defined by using the economy of scale that the membership represents, be that in terms of additional value or trade discounts. This will be a very exciting period for AMII and I look forward to championing its position and beliefs.”

Experts warn about flood insurance becoming unavailable to many in just four months

Market

Mar 20, 2012

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Businesses and homeowners seeking flood insurance could face greater uncertainty and prohibitively expensive insurance premiums in just four months’ time, experts will warn today.

The British Property Federation has called for urgent action to create a new settlement between Government and insurers, warning that the end of an agreement that guarantees near universal provision of flood cover could leave around 200,000 homes in high flood risk areas uninsurable and leave homeowners and thousands of businesses facing unaffordable bills.

The existing ABI/Government Statement of Principles between Government and the Association of British Insurers is due to end in June 2013, without any sign of a suitable alternative. The BPF said that the uncertain future of flood insurance will hit businesses and homeowners from July 2012 as insurance cover starts to be renewed that covers the period that includes June 2013.

Speaking ahead of a joint BPF/Peter Brett Associates summit held today, Liz Peace, chief executive of the British Property Federation, said: “This is a huge issue that is not getting the focus it needs, and time is running out. Its impact will be felt not only by our industry, but also banks and mortgage lenders. Uninsurable property may be difficult to sell; banks and mortgage lenders may not wish to lend on properties in flood risk areas. Bank covenants and lease obligations may not be met, making it easier to prematurely end them.”

Nick Starling, Director of General Insurance at ABI, will tell delegates: “Insurers are determined that flood insurance remains as widely available and as competitively priced as possible after the current Statement of Principles agreement with the Government ends in June next year. This can only happen if the Government agrees with the industry a new, long-term and sustainable flood insurance model – and the need for that agreement is urgent. The current agreement is well past its best-by date as it distorts the market for both consumers and insurers. This is why we need a new approach, based on some form of pooling arrangement, to ensure that flood cover remains available to those at higher risk”

Ben Mitchell, Partner at Peter Brett Associates, will say: “The issue of flood risk is never far from the headlines particularly in the light of the potential impact of climate change on increased flood flows and rising sea levels. With the advent of future changes in insurance cover and austerity measures in the government funding of flood defence, it is important now to understand the current risks to which property can be exposed, how such risks can change in the future and what options are available to mitigate them.”

Jackie Newstead, Partner at Hogan Lovells, will say: “There is still a widely held assumption that insurance will be available for flood risk, but with insurers being increasingly reluctant to insure high risk locations, we need to consider the implications for our transactions if it is no longer available. It may result in some transactions not proceeding and in other cases parties being exposed to claims for being in breach of their obligations.”

Netherlands : health authorities recommend removal of breast implants manufactured by French company Poly Implant Prothese

International

Mar 17, 2012

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Dutch health authorities on Thursday recommended the removal of breast implants manufactured by French company Poly Implant Prothese that were done before 2001.

“Women who had a PIP breast implant before 2001 should have themselves examined by a doctor and, in consultation, eventually have the implants removed,” the Dutch government’s health watchdog said in a statement.

The Dutch Health Inspectorate (IGZ) call followed a probe by Dutch investigative TV programme Zembla, which discovered that “several hundred” women received PIP implants since 1997, public broadcaster NOS reported. “Until now, the IGZ believed that only Dutch women who received the implants from 2001 onwards were at risk,” the IGZ added.

The company, which shut in 2010, also said previously that only PIP implants used after 2001 had been made with a substandard, industrial-grade silicone gel that had caused an increased risk of rupture.

Dutch health authorities on January 11 recommended the removal of PIP implants done after 2001, which affects around 1,000 women in the Netherlands.

The country’s health insurance federation said the same month that women wanting to replace the potentially defective implants would be paid back in full.

Initially, the Dutch health authority recommended only that women with PIP implants — sold in the Netherlands under the name “M-Implants” — should see their doctors, but changed its stance after confusion over the issue. PIP implants have been banned in the Netherlands since early 2010.

More than 400,000 women around the world are thought to have received PIP implants which has sparked a global health scare.

The Hague, March 15, 2012 (AFP)

Arista : expansion continues with two Birmingham hires

Social

Mar 16, 2012

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Commercial lines underwriting specialist Arista Insurance has appointed Paul Smith as Senior Fleet Underwriter and Amanda Jones as Fleet Underwriter to its Birmingham office.

The duo brings 27 years combined experience to their roles, which they start with immediate effect.

Paul will be responsible for handling all aspects of Arista’s fleet account in the Midlands. Bringing 20 years’ experience in fleet underwriting, Paul joins from Chartis, where he was a fleet development underwriter with responsibility for existing business and large case management. Prior to that Paul worked for Allianz, NIG and RSA.

With seven years’ fleet underwriting experience, Amanda will be responsible for new business, renewals and mid-term adjustments. Before joining Arista, Amanda was a commercial motor underwriter at Axa Insurance managing renewals, new business and MTAs. Before Axa Amanda was a fleet underwriter at Towergate Risk Solutions.

Both appointments strengthen Arista’s support for brokers in the Midlands; helping to improve service and providing easy access to experienced underwriters as Arista grows. Both Paul and Amanda will report to Branch Manager Scott Hallett.

Arista chief executive, Charles Earle, said: “We are very pleased to welcome Paul and Amanda to the Birmingham team. Providing excellent service and access to expert underwriters is a core part of Arista’s commitment to our brokers. These appointments demonstrate that as Arista continues to grow we remain dedicated to providing the service and support brokers need.”

Europe : report shows that food bacteria are now more resistant

Good to know

Mar 16, 2012

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Bacteria that cause the main food-borne infections among people in the European Union commonly show resistance to widely-used antibiotics and antimicrobials, an EU report showed Wednesday.

“Resistance to several antimicrobials was commonly detected in zoonotic bacteria (which can be transmitted from animals to humans) such as Salmonella and Campylobacter, which are the main causes of reported food-borne infections in the EU,” the report read.

The European Centre for Disease prevention and Control (ECDC) in Sweden and the European Food Safety Authority (EFSA) in Italy were behind the report, which was based on 2010 data collected from all EU member states.

“Zoonotic diseases are important public health threats in the EU and resistance of zoonotic bacteria to antimicrobials used to treat these illnesses is an increasing concern both at the European level and globally,” EFSA chief Catherine Geslain-Laneelle said in a statement.

Antimicrobials are used in human and veterinary medicine to kill or block the growth of micro-organisms like bacteria and fungi that cause infections. But if the micro-organisms become less sensitive to the medication and develop resistance, the treatments are rendered ineffective.

“Zoonotic bacteria that are resistant to antimicrobials are of particular concern as they can be transmitted from animals to food and humans, and may compromise the effective treatment of infections in humans,” according to the joint statement.

According to the report, Campylobacter bacteria, which caused more than 200,000 of the food-borne infections reported in the EU in 2010, frequently is resistant to the “critically important” antibiotic ciprofloxacin.

A high proportion of Salmonella bacteria, which accounted for almost 100,000 reported human cases the same year, was resistant to other common antimicrobials, although resistance to critically important antibiotics remained low, according to the report.

Stockholm, March 14, 2012 (AFP)

Glaxo sells key European brands to Belgium’s Omega Pharma

Financial News

Mar 16, 2012

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British drugmaker GlaxoSmithKline said Thursday that it would sell a stable of well-known European over-the-counter brands, including Nytol sleep aid, to Belgium’s Omega Pharma.

“GSK today announced that it has reached agreement to divest the previously identified non-core OTC brands in Europe to Omega Pharma for 470 million euros ($614 million) in cash,” the London-listed company said in a statement.

The brands also comprise vitamin supplement Abtei, allergy treatment Beconase, skin cleanser Lactacyd, pain reliever Solpadeine and heartburn product Zantac.

The divestment was expected to be completed in the second quarter but remains subject to regulatory approvals.

GSK revealed in February 2011 that it would seek to sell non-core consumer healthcare products, predominantly in the United States and Europe, to concentrate on priority brands and markets.

In December, it sold a clutch of North American non-prescription drug brands for £426 million to the US group Prestige Brands Holdings.

London, March 15, 2012 (AFP)

Hannover Re : profits down in 2011

Financial News

Mar 14, 2012

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German reinsurance giant Hannover Re said Wednesday it was optimistic with regard to the outlook for the current year after a string of natural disasters hit earnings last year.

Hannover Re said in a statement it booked net profit of 606 million euros ($790 million) in 2011, down 19.1 per cent from a year earlier. Operating profit was down 28.6 per cent at 841.4 million euros on a 5.8-percent increase in gross premium income to 12.096 billion euros.

“For the international reinsurance industry the most striking feature of the 2011 financial year was an exceptionally heavy burden of losses from natural disasters,” said chief executive Ulrich Wallin.

In the case of Hannover Re, the losses amounted to 980.7 million euros, the second-highest level in the company’s history.

“The fact that we were still able to generate a pleasing profit shows that we are moving forward towards our goal of reducing the volatility of results,” Wallin said.

Already last month, Hannover Re had said in a preliminary statement that 2011 net profit of around 600 million euros was “comfortably” above target. Looking ahead to 2012, the reinsurer said it was “looking to the current financial year with optimism.”

It had budgeted an amount of 560 million euros for major losses. With “good prospects for further profitable growth” in life and health insurance, Hannover Re was pencilling in organic growth of 5.0-7.0 per cent in total gross premium volume.

“We are looking forward to a good 2012 financial year,” it said.

Frankfurt, March 14, 2012 (AFP)

Excess Protector Insurance now available by ink Insurance

Market

Mar 13, 2012

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Working closely with ShazamXS (part of Adding1), ink Insurance is now pleased to announce that they can offer a new concept in Excess Protector Insurance.

This is an innovative, low cost add-on insurance product created to enable policyholders to claim back policy excess they have to pay out when claiming from another policy.

Treating Customers Fairly is high on every broker’s agenda. This new product will allow brokers to offer their clients options through excess protector insurance. Clients are put back in control of their finances, as they may now choose the level of self insurance (policy excess) they are comfortable with. This helps consumers achieve a level of financial participation in the risk that suits their budget.

Excess can be covered on the following types of policies:

Commercial combined

o With cash flow being key to many businesses this product gives companies the ability to budget effectively by making an upfront payment rather than being hit by unforeseen costs in excess payments throughout the year. The policy allows for excess protection up to combined limit of £2,500 per year.

Fleet insurance

o Many fleet policies provide additional discounts if higher voluntary excesses are taken. These are often greater than the cost of this cover. This allows the broker to create and price a bespoke deal which will help them win and retain clients

Private motor

o Young drivers and sub-standard risk excesses can often be imposed by insurers. These can make the client uncomfortable in accepting the terms. This product allows them to efficiently budget within their comfort zone

Home buildings and contents

o Most policies include high levels of excess for subsidence, landslip and heave which can be reduced by taking out this additional cover

High net worth lifestyle

o An excellent product for busy people. It enables clients to take on high levels of self insurance through increased excesses on each of their personal policies. For example, the policy covers individual excess amounts for: motor, home, travel, Private Medical and pet insurance can all be included under one Excess Protector policy

This innovative insurance product works alongside most existing policies in place and is underwritten by one of the leading insurers.

More and more insurers are driving up the level of excess on their policies and this can become uneconomical for policyholders who have to tightly manage their budgets so this policy allows them to reclaim excess charges. Policyholders simply select the annual limit of excess they require and then they will be covered for all excess payments up to this annual limit. Premiums are highly affordable making it an even more attractive product to policyholders.

Mike Smith, Managing Director of ink insurance, commented “ink prides itself on offering innovative solutions for our brokers so we are very excited to be offering this product to them. With Treating Customers Fairly being a key area for us; it’s great for ink to be able to provide brokers with a product that not only allows the broker’s client the ability to choose the level of excess they are comfortable handling but also has the potential of increasing their own offering and competitiveness.”

Social Media Start-Up Package Launched for Insurance Industry

Market

Mar 13, 2012

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Peak Marketing & Communications this week launches a Social Media Start-Up Package which will equip brokers, insurers and specialist service providers to the industry with the confidence and skills to use social media to protect and grow their businesses. Peak recognised a need for an entry level support offering after being approached by a number of industry clients to provide social media training.

The insurance industry traditionally has been slow to embrace new ideas, but an ever-increasing number of organisations across all industry sectors are realising the benefits of using social media as a strategic business tool. Those that continue to ignore social media are potentially exposing their companies to business risk.

Peak’s Social Media Start-Up Package can be integrated with any existing marketing strategy and shows clients how to gain extra brand exposure, communicate new products, share knowledge, increase search engine optimisation by driving more visitors to their website and build a community around their brand. Organisations in both business to business and business to consumer sectors can develop an online brand presence at minimal cost. SMEs have the opportunity to level the playing field when competing with large companies.

Anne Staunton, Peak’s managing director explains: “Many in the industry are aware they are losing ground by not embracing social media to encourage customer loyalty and reach new customers. Often the inertia comes from fear of the unknown or a belief it will be too costly or time consuming, which isn’t the case. The smart competition is already involved and can and will poach customers and increase market share using this cost effective medium.”

Delivered in four stages the package provides: advice on setting strategic objectives and measures for social media activity; identification of suitable content and frequency ensuring consistent messages are being communicated to the target audience; a 3 month tactical plan and a set of social media guidelines to educate employees on the organisation’s social media policy. As part of the package, Peak sets the business up with profiles on three key social media platforms Twitter, Facebook and LinkedIn and streams all these accounts into one manageable control panel for business efficiency.

Canada : three leading tobacco companies face a $25bn lawsuit

International

Mar 13, 2012

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A groundbreaking trial gets underway in Montreal Monday against three leading tobacco companies which face a $25 billion lawsuit for allegedly failing to adequately warn smokers of the dangers of cigarettes.

Plaintiffs have filed two separate class actions in what is Canada’s biggest-ever civilian lawsuit, against Imperial Tobacco, JTI-Macdonald and Rothmans Benson & Hedges in the Superior Court of Quebec.

The first class includes 90,000 current and former smokers in Quebec who say they have fallen ill with a range of smoking-related ailments including emphysema and cancer of the throat and larynx, and are seeking $105,000 Canadian per person.

The second suit was filed by 1.8 million current smokers who say they are unable to quit the tobacco habit, and are seeking $10,000 per person.

According to court documents, the plaintiffs accuse the Canadian tobacco companies of hiding research which has established a link between smoking and serious health problems like cancer.

The suit also alleges that tobacco firms in Canada have tried to manipulate the levels of nicotine in their cigarettes, increasing the levels of dangerous tar and have also added certain products such as ammonia.

Mario Bujold, director general of the Quebec Council on Tobacco and Health told AFP that one of the witnesses will be Robert Proctor, author of “Golden Holocaust,” a book alleging nefarious practices by the US tobacco industry.

Quebec is only one of several Canadian provinces seeking monetary damages from the tobacco manufacturers.

Several provinces, led by British Columbia, are also suing Canada’s tobacco companies in hopes of recovering billions of dollars spent by their health insurers to treat the victims of tobacco use.

Washington, March 11, 2012 (AFP)

Make the Most of Owning a Credit Card

Market

Mar 12, 2012

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Credit cards can be immensely useful. They allow the carrier to pay for things without worrying about having cash on their person, which can take a lot of the stress out of going out. They are also ideally suited to internet spending. And used sensibly, they needn’t even cost anything. They are also pretty safe and secure. Providers like Santander offer the security of a large institution (see their site for more info on bank credit cards).

One of the advantages of using a card to pay for things is the possibility for claiming back money on a faulty or mis-sold item from a credit card company rather than from the firm that sold you the item. Usually, to be eligible to claim, the goods or services must cost between £100 and £30,000. This protection can be incredibly useful, especially if the trader or supplier has gone out of business and there is no way of getting renumeration from them directly. If you are entering into a dispute with another company, be sure to keep your credit card company informed at all stages.

It’s important to note, however, that borrowing money always comes with potential pitfalls. To understand them fully before you even apply, let’s take a closer look…

The first issue to think about when applying for a credit card is the possible effect on your credit rating. Applying for a large number of cards or switching cards too frequently may appear on your file as though no-one else wants to lend to you. And of course, if you regularly default or consistently pay late, this will also show up on your credit rating.

Credit card fraud is another major potential problem. To protect yourself from fraudulent usage of your card, you must keep it in a safe place at all times, never letting anyone else handle it. Never tell anyone your PIN. Check your statement monthly, shred all receipts, and if your card is stolen report it immediately.

Another potential problem is poor service from your provider. Luckily, if this happens to you, the complaints procedure of an individual institution is augmented by the Financial Ombudsman Service, who are there specifically to protect card users from malpractice.

If you are struggling to pay your bill, it is advisable to contact your provider as soon as there is a problem. They might give you a temporary reduction on repayments, or even freeze the interest.

How a New Build Could Keep Your Mortgage and Insurance Down

Market

Mar 12, 2012

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If you’re looking for a new house, and you’ve not even considered buying a newly built property, think again. There are a number of advantages to buying brand new over pre-owned, some of which you may not even have occurred to you…

Decreased maintenance costs are just one of the reasons why buying new is smart. There are unlikely to be any major structural issues coming to bear with a new build. Also, because UK homes now have to meet a minimum requirement of building regulations before going on sale, they meet a much higher standard of insulation and eco-efficiency. That means new build owners get significantly lower energy bill.

One of the, perhaps, more shallow advantages of a new build is that unbeatable feeling of unspoiled perfection. The sensation of living in a new, completely unused house is quite something to beat. The knowledge that no one has used the house makes it a lot easier to relax and truly feel that the house is a ‘home’.

Mortgages are quite often much cheaper for new builds, as they are not usually the most sought-after property. They are usually located on the edges of existing developments, and often spring up in large numbers at once, – this, too, helps to lower potential mortgage rates. Santander is a good place to start looking for a mortgage, as they offer competitive rates and provide a mortgage calculator – click the link for the Santander calculator for mortgage.

Of course, buying any property, whether new or old, requires research. It might be the largest transaction you’ll ever make. Here are a few tips for buying a new build home…

Find out as much as you can about the site’s management. Seek opinions from those who have already moved into the project.

Do web research. Read reviews on the developer. Check forums to find out what people’s experiences are. Be thorough!

Take careful measurements of your potential house. You’ll need complete and accurate dimensions if you are planning to move any furniture in from your current house. Measure the door frames and spaces you intend to put furniture. Take accurate readings for the garage so you can be sure of getting your car in properly.

When buying ‘off-plan’, inspect the blueprints for both the site and the house. Compare it to the rest of the development to ensure equity. Draft in professional help, such as a chartered surveyor, to give you expert advice. The Royal Institution of Chartered Surveyors is a good place to start for this.

Aviva : annual profits slump 85%

Financial News

Mar 11, 2012

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British insurer Aviva announced that annual net profits slumped 85 per cent on exceptional charges and due to economic strains in Europe, but underlying earnings rose.

Profit after tax stood at £225 million ($355 million, 269 million euros) in 2011, Britain’s second biggest insurer after Prudential said in a results statement.

That compared with net profit of £1.463 billion in 2010. The slump was partly caused by charges linked to Dutch group Delta Lloyd, in which it sold a 15-per cent stake in April, cutting its shareholding to 43 per cent. But Aviva chief executive Andrew Moss also noted in the results statement that “concerns over the macro-economic environment in Europe dominated market sentiment, resulting in exceptional market volatility and uncertainty in 2011.”

He added: “Against this backdrop, I am pleased to report a year of good progress and operating profits of £2.5 billion.” Looking to 2012, Moss said Aviva had increased its operating targets, “underlining our confidence in Aviva’s continued success.”

With Aviva seeking to focus on core insurance and savings businesses in priority markets, it last year agreed to sell its British roadside rescue division RAC to private equity firm Carlyle for £1.0 billion.

Earlier this year, it offloaded its businesses in the Czech Republic, Hungary and Romania to US peer MetLife for an undisclosed amount. Aviva is the world’s sixth biggest insurer, with more than 53 million customers and 45,000 employees worldwide.

London, March 8, 2012 (AFP)

ISDA : position on Greek debt insurance is due March 1 2012

Industry News

Mar 1, 2012

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A global body for contracts used as insurance against sovereign defaults, the ISDA, will say on Thursday if a deal to cut Greek debt justifies payouts that could upset financial markets.

The International Swaps and Derivatives Association said on Wednesday that it would take a position on policies known as credit default swaps (CDS) which might determine whether Greece has defaulted.

The ISDA was acting in response to a query from an unidentified private creditor, and the declaration of a so-called credit event might lead to the payout of billions of euros (dollars) in insurance against a Greek default. “A meeting will be held at 1100 GMT on Thursday, March 1 to determine whether a credit event has occurred,” its statement said.

If so, it could trigger payments of CDS which totalled about 3.2 billion euros ($4.3 billion) as of February 10, essentially putting Athens in default.

Greece has reached a deal with private creditors to cut the value of the debt they hold by about 107 billion euros, which would substantially reduce overall Greek debt of 350 billion euros. Athens and European Union officials are trying meanwhile to avoid Greece having officially to declare a debt default, which would be a first for the 17-nation eurozone. In the case of sovereign debt, three situations generally qualify as a credit event.

The first is being unable to reimburse loans on the date they are due. The second is a challenge by debitors to the validity of their commitments, while the third is their unilateral modification of repayment terms. Greece has struck a deal with private creditors whereby they are to voluntarily accept reimbursement of about half of the money due them, which the ISDA has said would not qualify as a credit event.

In practice, Athens plans to provide creditors with new bonds worth 53.5 percent less than those currently held.

Greek officials have said that if necessary, they might also try to trigger a Collective Action Clause which would force creditors that did not want to swap debt to do so.

The three biggest international ratings agencies have already said they would consider the Greek bond exchange a partial default, because some of the country’s debt would be erases.

Standard and Poor’s said late Monday that it considered Greece to now be in selective default as a result of the debt cut agreement, but added that the country’s rating would probably rise again once a bond swap was completed. That is expected around March 12.

London, Feb 29, 2012 (AFP)

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