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DUAL Corporate Risks is launching a blog that explores the turbulent love-hate relationship between business and technology functions within the insurance industry.

Tim Grant, head of e-business at DUAL, will be compiling the blog ‘Biztechbites’ in dialogue with Dharmesh Mistry, chief operating officer & chief technology officer at edge IPK, who will provide the technology supplier’s point of view.

Grant and Mistry both say that insurance has been relatively late in exploiting technological advancement, due to the complexities of the industry and its traditional outlook. However they also believe the relationship between the business decision makers in insurance and the technology can be improved.

Tim Grant said: “It has been a rocky marriage at times, but we expect our blog will show others that there are ways in which to avoid conflicts and difficulties.

“In keeping with our launch date of Valentine’s Day, our blog will amount to an online heart-to-heart, where both sides in the business-technology relationship will be open and honest about their problems and grievances on either side.”

Grant said the Biztechbites blog is also aimed at exposing and ironing out the glitches that prevent the insurance market from advancing quicker towards its electronic goals.

Dharmesh Mistry said: “Hopefully our online dialogue will inspire readers to overcome their e-business barriers and eventually rekindle the love between business and technology functions.

“We have not yet worked with DUAL Corporate Risks in e-business, so we can be much more honest about the miscommunication and heartbreak that happens on each side of the business-technology divide.”

Source : DUAL Press Release

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The Association of Medical Insurance Intermediaries (AMII) has recognised that benefit fee limits and hospital networks are a necessity to maintaining a cost-effective insurance proposition for consumers in its initial submission to the Office of Fair Trading (OFT) on the proposed market study into private healthcare due for a formal launch in the spring.

However, AMII believes the OFT should make a clear distinction between those broad-based “hospital networks”, where the private medical insurance (PMI) policyholder has actively agreed to only obtain treatment at a selected list of hospitals in return for a lower premium; and the “treatment networks” where the insurer insists that for certain types of treatment (for example oral-surgery, ophthalmic conditions, certain types of cancer treatment) the PMI policyholder must use specific consultants/hospitals, which may be more restrictive than the general hospital list that the PMI policyholder has bought into.

In the latter case (“treatment networks”), the criteria that these insurers are using to determine which providers are included on the “treatment network” should be clear to private healthcare providers, medical professionals and consumers.

Source : AMII press Release

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US researchers said Friday they have found that people who used two specific varieties of pesticide were 2.5 times as likely to develop Parkinson’s disease.

The pesticides, paraquat and rotenone, are not approved for house and garden use. Previous research on animals has linked paraquat to Parkinson’s disease, so it is restricted to use by certified applicators.

Rotenone is approved only for use in killing invasive fish species. “Rotenone directly inhibits the function of the mitochondria, the structure responsible for making energy in the cell,” said study co-author Freya Kamel, a researcher at the National Institute of Environmental Health Sciences. “Paraquat increases production of certain oxygen derivatives that may harm cellular structures. People who used these pesticides or others with a similar mechanism of action were more likely to develop Parkinson’s disease.”

The study examined 110 people with Parkinson’s disease and 358 people who served as a control group from the Farming and Movement Evaluation (FAME) Study. FAME is part of a larger Agricultural Health Study looking at the health of approximately 90,000 licensed pesticide applicators and their spouses. The study appears in the journal Environmental Health Perspectives.

Washington, Feb 11, 2011 (AFP)

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The World Health Organisation warned Friday  that too few countries were taking steps to prevent alcohol abuse and raised  alarm bells over major increases in alcohol consumption in Africa and Asia.

“Too few countries use effective policy options to prevent death, disease  and injury from alcohol use,” the UN health organisation said, saying that  alcohol abuse contributes to 2.5 million deaths every year.

Since 1999, when the agency first began to sound its warning against  alcohol abuse, 34 countries have introduced some policies to cut the harmful  use of alcohol.    These include restrictions on alcohol marketing and drink driving, but  “there are no clear trends on most preventive measures,” noted the agency.    “Many countries have weak alcohol policies and prevention programmes,”  noted the WHO.

The UN agency said it was particularly worried about Africa and Southeast  Asia, where consumption had shown “marked increases.”    Data indicated that consumption of alcohol had remained relatively stable  in the Americas and in the European, eastern Mediterranean and western Pacific  regions.    But in Africa, the proportion of the population showing an increase in  alcohol consumption between 2001 and 2005 reached 25.3 percent.    And in the Southeast Asia region, which in WHO definitions is made up of  Bangladesh, Bhutan, India, Indonesia, Maldives, Myanmar, Nepal, Sri Lanka,  Thailand and Timor-Leste, that figure was 68.3 percent.

“Consumption and harmful intake is increasing in developing countries,  particularly Africa and Asia which have less powerful regulations and which  have less health service available,” said Shekhar Saxena, WHO director of  mental health and substance abuse.    “WHO is worried about these trends,” he added.    In May last year, member states of the WHO approved a strategy against  alcohol abuse, including a call for discounts on drinks to be banned and for  advertising targetting the young to be scrapped.    The strategy drawn up by the UN health agency and approved by its  193-member states at an annual meeting of health ministers also pushes for an  end to flat price rates for unlimited drinking and for sponsorship to be  regulated.

Geneva, Feb 11, 2011 (AFP)

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Aon Benfield, the global reinsurance intermediary and capital advisor of Aon Corporation, has won a prestigious award for its innovative use of technological solutions.

The firm was named Model Insurer by international strategy consultant Celent at its awards ceremony in New York yesterday. The award acknowledged Aon Benfield’s FAConnect platform – a proprietary placement facility that allows clients to manage their own facultative risk placements via an internet-enabled device.

Since its launch in January 2010, FAConnect has gained more than 350 users, who have completed over 2000 transactions across the platform. The tool has allowed Aon Benfield to participate in a line of business that was previously uneconomical for the firm due to high frictional costs.

Celent recognized that FAConnect had helped to open new markets to the benefit of Aon Benfield clients.

Dawnmarie Black, Aon Benfield Fac head of global products, who has pioneered FAConnect, said: “We are extremely proud to have been recognized as a model insurer by Celent. FAConnect was designed to bring a greater choice of markets to our facultative clients, securing them better pricing, terms and conditions on their risk placements. It is highly gratifying to receive a third party endorsement of our work in developing the platform, so many thanks to all those who voted for Aon Benfield.”

Mike Fitzgerald, a senior analyst in Celent’s insurance practice, said:  “In today’s economic environment, the winning firms are the ones who leverage all available resources to the maximum to meet market challenges,” said. “Aon Benfield was selected as a Model Insurer because of the firm’s best practices in the use of standards, improved channel integration, and optimization of infrastructure.”

Source : Aon Benfield Press Release

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Many special occasions, including Valentine’s Day, are celebrated with a piece of jewellery; however, homeowners may find that their special gifts are underinsured if they are not regularly reviewing their value. Specialist home insurer Hiscox says this is even more relevant following the increase in the values of gold and platinum over the last few years.

Austyn Tusler, home insurance expert at Hiscox, comments: “Whenever you receive a gift you should not only tell your friends how lucky you are, you should also notify your insurer. They can provide you with adequate cover for loss or damage of your new acquisition.”

“Furthermore, over time the value of jewellery you already own can increase without you necessarily realising. Special occasions are a good reminder to both notify insurers of latest purchases or gifts and to seek a valuation of current jewellery collections.”

John Benjamin, an expert independent jewellery consultant comments: “Three factors have combined to create an exceptionally strong market for jewellery and watches in 2011. Firstly, the unprecedented rise in the price of gold. Secondly, the recent rise in VAT and thirdly, the flourishing global market for jewellery at international auction which has led inevitably to a rapid reassessment of retail values – most notably for diamonds, coloured gems and pearls.”

“Clients who have not had their jewellery appraised in the last two to three years therefore run the serious risk of being unable to replace a loss at current retail levels; it is thus strongly recommended that an updated valuation is carried out not only on older items but also on relatively recent purchases.”

Hiscox’s insurance checklist for jewellery:

– Notify your insurer or your broker of any significant new acquisitions

– Get a professional valuation every three years to guarantee that the insured value reflects current market trends

– Keep a copy of your professional valuation with your broker, bank or solicitor for safekeeping

– Take major items of jewellery to a good jeweller each year to check them, ensuring for example that clasps and settings are in good condition

– Have your jewellery cleaned professionally as doing it yourself or giving it to an amateur to clean might cause abrasions or other damage that could reduce the value of your item

– Where possible, keep items that are not being worn in a suitable safe

Source : Hiscox Press Release

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Celebration is the name of the game for Jelf Employee Benefits, as they are named ‘Healthcare Adviser of the Year’ by Corporate Adviser.  Jamie Cleall-Harding, UK Healthcare Director for Jelf Employee Benefits picked up the award at the prestigious event held on Wednesday 9 February at the Grosvenor House Hotel in London.

They beat off stiff competition and are absolutely delighted for the recognition which the organisers say was given: “to those advisers who achieved real results through the advice they gave and the schemes they put in”.  Among other criteria Jelf Employee Benefits was judged on consistency of advice, service, value for money and results.

Commenting on the awards, Glenn Thomas, managing director at Jelf Employee Benefits, said: “Getting results for our clients is what matters, and to be recognised for this is a credit to all our staff.  We’re delighted to be awarded Healthcare Adviser of the Year by Corporate Adviser and we’ll continue to put our clients first.”

This is a welcome addition to their recent four wins at the Health Insurance awards.

Source : Jelf Press Release

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Aon Hewitt, the global human resource consulting and outsourcing solutions business of Aon Corporation, announced today it successfully went live with eight new Benefits Administration clients on January 3, 2011. Reflecting its continued leadership position in the industry, over the course of a week, Aon Hewitt added more than 325,000 participants and retirees to its existing base of 22 million participants served.

Across these new clients, Aon Hewitt implemented 12 services, including defined benefit, defined contribution, and health and welfare administration. Organizations served range in size from 5,000 employees to well in excess of 100,000 and cover a variety of industries, including technology, defense, retail, health care, and education.
“We are pleased with how Aon Hewitt has helped us transition our savings plan at United Technologies Corporation,” said Natalie Morris, director of employee benefits and HR systems. “Our employees experienced a smooth transition and this has been a great opportunity for participants to evaluate their particular situation by taking advantage of Aon Hewitt’s technology and tools to help them plan and execute their retirement.”
“We are honored to be chosen to serve these organizations, and we take great pride in delivering outstanding service to their employees and retirees,” said Kristi Savacool, chief executive officer, benefits administration, Aon Hewitt. “We take care to deliver a personal customer experience for our clients and their employees, backed by cutting-edge technology, robust infrastructure, and quality processes to ensure seamless service delivery.”

Source : Aon Hewitt Press Release

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Sterling Insurance Company is calling on regional brokers to learn the latest trends in security systems and risk management by attending free training, with the announcement of their annual training programme.

The course, titled ‘Theft, security and alarms’, is just one of a series of training sessions for brokers hosted by Sterling as part of a calendar of courses from the Sterling Training Academy in 2011.  Other courses include subjects such as sales and networking, as well as technical lessons in subsidence, flooding, business interruption and fine art and antiques.

David Sweeney, Household and Commercial Director at Sterling Insurance, said: “Maintaining and developing a well qualified and professional team is essential to all businesses. We place a very high value on our relationships with our brokers and as a benefit we provide these training and development options designed to enhance and complement personal development programmes.”

The courses, part of Sterling’s investment in broker partnerships, take place at venues across the UK including Sterling’s operations centre in West Malling, Kent, Birmingham and Manchester.  Broker partners of Sterling can attend the courses free of charge while non-partners are asked to pay a small nominal fee.

Source : Sterling Insurance Press Release

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Allianz Retail has recruited Simon Masding as Head of Sales and Partnerships for its Speciality Retail division.

The newly-created position within the Speciality Retail senior management team will focus on continuing to build and strengthen the insurer’s relationships with customers, partners and professional bodies for its industry leading pet insurance brand Petplan and Allianz Musical Insurance.

With over 20 years’ experience working for Kraft Foods in senior marketing, trade marketing and sales roles in both business to consumer and business to business environments, Simon brings a wealth of experience to Allianz Retail and a strong track record of driving consistent sales growth. More recently, Simon worked for Mars Drinks as a consultant on their European business portfolio.

Neil Brettell, Director of Petplan said, “We’re excited to have Simon onboard as we look to continue to strengthen our market-leading position across our core sales channels. These channels are integral parts of our business and I believe this new position will allow us to develop even more value-added relationships with our customers, partners and professional bodies.”

On his appointment, Simon said, “I’m delighted to join the Allianz team and really excited about the many opportunities that lay ahead. It’s great to be part of a global player with an industry-leading portfolio that is so highly regarded by both customers and the profession.”

Source : Allianz Press Release

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UK businesses are dangerously exposed to the possibility of heavy fines under the latest UK and EU legislation regarding environmental liability, according to Aon, the world’s leading risk advisor. To help UK firms establish the level of risk they face and how these risks may be transferred and insured, Aon has teamed up with Argyll Environmental to develop a Site Report that uniquely combines environmental and flood risk assessment into one cost effective package for the commercial market.

Under relatively new EU legislation implemented in the UK, the consequences of which many businesses are typically unaware firms can be held financially liable for damage to the environment caused by activities on their property, even if the damage occurred due to the activities of former owners. This means that nearly every property owner in Britain now needs to be aware of the environmental history of their property as well as the consequences of current operations.

Many larger UK firms are tapping in to the growing environmental insurance market to provide cover if it is found that there has been contamination of the environment due to activities undertaken on their land or where current operations may present a potential threat to the environment.

Dr Simon Johnson, Aon Risk Solutions’ environmental director for the UK, Europe, Middle East and Africa commented: “UK businesses are potentially sleep walking in to a real crisis if they continue to ignore the very real threat that environmental risks pose to their balance sheets. EU and UK legislation and regulation is increasingly placing the blame for damage to the environment at the feet of land owners, so it is vital they are aware of the history and issues involving their property.

“It may be appropriate for a business to take out insurance to protect themselves, and there is certainly a burgeoning insurance market that is prepared to take on these risks, but as a first step knowledge is certainly key.”

Source : Aon Press Release

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It is expected the State and Federal governments will cover most of the AUD440 million damage bill. But Brisbane Labor leader Shayne Sutton told last night’s council meeting better insurance could have covered more of the gap.

“You’ve been saying that you’ve been concerned about river flooding for years, so why didn’t you make sure council had sufficient flood insurance to cover the cost of rebuilding the damaged CityCat terminals, riverwalk and other council infrastructure?” she said.

Lord Mayor Campbell Newman says paying for more insurance would have been a waste of money and a burden on ratepayers.

“That means that every year the people of Brisbane would have paid more, even though the Federal Government had always been there with a scheme where they were prepared to pay the money,” he said.

“I hear the Leader of the Opposition muttering. That’s because she doesn’t understand proper, sound financial management.”

Volunteers thanked

Both sides of politics also also used the first council meeting of the year to thank the volunteers who helped clean up after last month’s flood.

Mr Newman told the chamber he would never forget the sight of the so-called mud army which turned out to help.

“What terrific people live in the city of Brisbane,” he said. “I’m proud to be the Lord Mayor of Brisbane.”

Ms Sutton says the huge volunteer effort has been recognised across Australia and the world. “The inspiring thing about the floods was our community’s response,” she said.

Councillor David McLachlan also praised those who did the dirty work at the Brisbane Markets.

“The impact on the senses of hundreds of kilos of prawns left unrefrigerated and flooded for several days doesn’t bear thinking,” he said.

Around 23,000 volunteers registered to help after the flood.

Source : ABC News

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The British Insurance Brokers’ Association (BIBA) has joined up with Broking Now! the leading insurance broker omnibus research panel from FWD Marketing.  The research panel, consisting of a wide-range of business placing brokers, will provide a voice to the broking sector through independent research that BIBA will use to support its broker lobbying campaigns.

BIBA aims to help develop the research panel so that the sector has access to robust and independent broker research that can be used to lobby government, policy makers and the regulator on issues most affecting members.

Eric Galbraith, BIBA Chief Executive, said: “There has never been a more important time for us to have a strong independent channel for brokers to voice their opinion.  We have already hit the ground running as we are using Broking Now! as part of our wider research to lobby for appropriate proportionate and cost effective regulation from the new regulator. I am really pleased that we will be working with Broking Now!.”

Mike Harmer, Research Director at FWD, commented: “We are delighted to team up with BIBA. Broking Now! has been capturing and sharing the views of the UK broker community for nearly six years. Broking Now! remains an independent study of all UK brokers, not just BIBA memebers but the BIBA endorsement reinforces the industry importance and quality of this study.”

Eric added: “Members can continue to engage with us in the normal ways but this new initiative will provide us with good quality research that we can take to MPs and the regulator, and I encourage members to engage with Broking Now! The panel also provides a service to the wider industry providing access to brokers on a range of subjects.”

The Broking Now! panel will be relaunched as ‘Broking Now! in association with BIBA’ and remains an industry wide survey across all UK brokers. Capturing the views of 250 UK brokers, per survey, from provincial brokers right up to global broking brands.  FWD Research is a member of the UK Market Research Society and as such Broking Now! in association with BIBA, is a robust and independent view of the market. Broking now will continue to provide insurers and the wider industry with a channel direct to brokers.

Source : BIBA press Release

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Ecclesiastical has strengthened its London Regional Centre underwriting team with the appointment of two new underwriters and a new regional sales manager.

Underwriters Laura Pennick and Tina Atkins join this month, helping to service and develop Ecclesiastical’s broker business within the M25 region.

Laura Pennick was previously with Allianz’s London market property owners team and before this was a broking technician on the fine art and high net worth team of Lloyd’s broker CBC UK. Having also spent two years working for NFU Mutual in Colchester as an insurance adviser, Laura has seven years’ experience in the insurance sector.

Tina Atkins previously worked for Ecclesiastical at its Cambridge office, then moved to become Underwriting Manager South at UK General (formerly Primary General). With over 25 years’ experience in insurance, Tina has also held positions with Sun Alliance, General Accident, Norwich Union and AXA. She has focused on the London and East Anglian regions.

Hannah Taylor, whose most recent role with Ecclesiastical was National Broker Relationship Executive and who’s been with the company for more than 10 years, has been appointed into the role of National Broker and Regional Sales Manager.

Commenting on the appointments, National Broker and Regional Director Paul Glasper, who heads the London Regional Centre, said:

“The arrival of Laura, Tina and Hannah represents a significant boost for our City-based team. All three are highly experienced professionals familiar with the London market and regional business. They’ve also all built strong relationships with their broking partners in the past. I’m confident they will be a great asset to our London team, will help us grow our business and will provide an excellent level of service to brokers.”

Ecclesiastical’s London Regional Centre is located in Billiter Street, EC3 and focuses on servicing brokers within the M25.

Source : Ecclesiastical Press Release

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Bank of America agreed to offload its Balboa insurance portfolio to Australia’s QBE Insurance for more than $700 million, the latest in a string of asset sales by the U.S. lender as it recovers from the global credit crisis.

Bank of America, which last year sold stakes in BlackRock and China Construction Bank to help meet government bailout-aid repayments, said QBE would assume all of Balboa’s $1.2 billion in insurance liabilities under the deal.

Shares in QBE, Australia’s largest insurance group, jumped 7.7 percent after it announced the deal, their biggest one-day gain in three years.

Analysts said the purchase would bolster QBE’s U.S. operations, while investors were also relieved the company was not planning a big capital raising to fund the deal as expected.

“The underlying business doesn’t seem to be tracking as well as hoped, but they have plugged that gap through this acquisition,” said Mark Nathan, portfolio manager at Arnhem Investment.

QBE’s deal-hungry chief executive Frank O’Halloran has made more than 75 acquisitions in 10 years to expand into 50 countries. QBE acquired U.S. underwriting agency ZC Sterling Corp for $575 million in 2008.

“We will continue with our current strategy of growth by acquisition and focus on market-leading underwriting performance,” O’Halloran said.

O’Halloran, 64, joined QBE in 1976 and has been the chief executive of the company for 13 years. His stake in the company is worth more than $200 million at current prices.

QBE also flagged a 2010 year net profit in line with expectations although 17 percent below last year, and said it expected costs from severe weather in Australia’s east in January and this week’s Cyclone Yasi to rise to about $200 million.

Bank of America said QBE would assume all of Balboa’s liabilities in exchange for an equivalent amount of cash and other assets through a reinsurance transaction.

QBE entered into a 10-year distribution agreement with the bank for lender-placed insurance and real estate owned programs and certain voluntary consumer insurance products under the deal.

Bank of America said last year it planned to sell Balboa as part of asset sales to raise $3 billion to complete its repayment of U.S. government bailout funds.

It said the transaction was expected to result in a one-time gain and it would retain Balboa’s net tangible equity of $1.7 billion which would be redeployed as the Balboa insurance liabilities expire.

O’Halloran said the preliminary estimate of damage from Queensland’s Cyclone Yasi this week was around $100 million, while flooding and severe weather across Australia’s east in January would cost it about $100 million. This was on top of about $45 million for Queensland floods in late 2010.

QBE said it expected the annualized gross earned premium and net earned premium from the distribution agreement to be around $1.5 billion and $1.3 billion, respectively.

“From the first read it seems like QBE has done the deal at a reasonable price … and in line with what they’ve done in the past it looks like a sensible acquisition,” said Steven Robinson, senior investment manager at Alleron Investment Management.

QBE will fund the deal through new short-term bank facilities and expected profits for 2011 and a dividend underwriting arrangement, quashing speculation on Thursday it was planning a $1 billion capital raising.

QBE also said it expected to report a 17 percent fall in full-year net profit to around $1.28 billion, in line with market consensus.

However, its insurance profit margin was forecast at 15 percent, below the company’s guidance of 16 percent to 18 percent.

Source : Reuters

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Aon Benfield, the global reinsurance intermediary and capital advisor of Aon Corporation, releases the latest edition of its Monthly Cat Recap report, which reviews the natural disaster perils that occurred worldwide during January.

Published by Impact Forecasting, the firm’s catastrophe model development center of excellence, the report reveals that Australia suffered its costliest natural disaster in history, with several weeks of severe flooding that has already resulted in AUD5.6 billion (USD5.65 billion) in economic damages. The total cost of repairing and rebuilding could potentially push the overall economic losses between AUD10 and 20 billion (USD10.1 and 20.2 billion).

Waves of heavy rains in Queensland, Victoria and New South Wales resulted in a deluge that killed as many as 36 people and caused extensive damage to property and infrastructure in hundreds of cities, towns and villages.

The Insurance Council of Australia declared four separate catastrophes during the floods, with combined preliminary insured losses in Queensland and Victoria totaling AUD1.57 billion (USD1.58 billion) and more than 43,240 claims filed.

Steve Jakubowski, President of Impact Forecasting, said: “This natural disaster has been absolutely devastating to Australia, not only at a personal level, where millions of people have been affected and thousands left homeless, but also at an economic level. It is estimated that dozens of mines in Queensland have been hit by the floods, and will not be restored to full capacity for possibly several months. The assessment of this cost from a business interruption perspective will be an ongoing challenge for the re/insurance industry.”

Meanwhile, in South America the most deadly natural disaster in Brazilian history occurred in January following a series of massive mudslides in the Serrano mountain region.

The states of Sao Paolo and Rio de Janeiro were most affected, with 856 deaths and hundreds of people still missing. According to government figures, more than 21,500 homes, businesses and other structures were destroyed, with total economic losses estimated at BRL2 billion (USD1.2 billion).

In the United States, major winter storms continued to affect the eastern half of the country during the month. Multiple storm systems brought additional rounds of record snow to New England and the Mid-Atlantic States, while record cold spells affected areas across the Southeast.

In Asia, floods and landslides hit Sri Lanka and the Philippines. The latter suffered consecutive weeks of heavy rain across 25 separate provinces, killing at least 75 people. According to the National Disaster Coordinating Council, at least 5,729 homes were damaged or destroyed along with crops and infrastructure, and total economic losses reached PHP2.05 billion (USD46.4 million).

In Sri Lanka, at least 43 people died in floods that inundated four provinces. According to the National Disaster Management Center, at least 50,000 homes, businesses and other structures were damaged along with vast areas of rice fields. Total economic losses were listed at LKR55.4 billion (USD500 million).

In China, severe winter weather affected the south and east of the country, killing at least two people, causing an economic loss of CNY11.6 billion (USD1.77 billion), and destroying more than 150,000 homes.

Meanwhile, Europe witnessed flooding across parts of Germany, Poland and the Czech Republic, affecting thousands of people, homes, businesses and infrastructure.

In Africa, at least 136 people died as flooding submerged agricultural land across parts of South Africa, Mozambique, Botswana, Namibia, Zambia and Zimbabwe. In South Africa, the total economic losses to property and agriculture were listed at ZAR3.55 billion (USD495 million).

Source : Aon Benfield Press Release

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ReAssess, a powerful new tool to help insurers more accurately assess their reinsurance needs, is today launched by The Building Cost Information Service (BCIS) of the Royal Institution of Chartered Surveyors (RICS).

Reinsurance is a powerful tool for reducing the volatility of underwriting results and can be used to achieve a significant reduction in capital requirements a key driver for Solvency II regulations, due to come into effect in 2012.

The effectiveness of reinsurance is, to a certain extent, dependent upon insurers’ being able to take a realistic view of their values at risk. ReAssess provides reinsurance analysts with a consistent approach to determining value at risk and is an independent and authoritative data source to quote during compliance checks.

ReAssess will provide analysts with the rebuilding cost residential properties using BCIS rebuilding cost models already accepted as standard by surveyors and loss adjustors. The data, compiled over the last 40 years, is developed and maintained by in-house construction industry experts to ensure that it is always up-to-date and in line with building regulations. Containing over 2.5 million rebuilding cost values, ReAssess will enable insurers to accurately assess their value at risk across books of business rather than relying on internal models or the sum insured provided by the policyholder.

Andrew Thompson, international development and data director at BCIS explains:

“ReAssess can play an intrinsic role in assessing reinsurance needs and supporting Solvency II compliance. To allow insurers to evaluate ReAssess, we are inviting them to submit a data sample to BCIS, for which we will generate rebuilding cost values.”

Source : BCIS Press Release

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New research by specialist small business insurer Hiscox reveals that 75% of SMEs do not feel completely confident that their office premises are safe from thieves and nearly a quarter (22%) are concerned about e-risks and cyber crime. Since the start of the financial downturn, over a third (38%) believe their offices are more likely to be a target of burglary.

The item deemed most at risk, by 41% of SME owners in the study, was computer equipment. E-risks that they face, such as theft of data, online identity fraud, loss of confidential information or hacker damage were also cited as a concern. This comes as no surprise as government statistics reveal that the average cost of the worst IT information security incident to a small company each year is £10,000-£20,000. Just 17% of SME owners said they were not concerned about anything being stolen from their office.

Hiscox SME insurance expert, John Heaney, comments: “It’s important for businesses to protect themselves against loss of physical property and data theft. It may sound obvious, but following basic procedures such as checking windows and exits are secured, setting alarms and storing expensive equipment out of sight, can be invaluable.”

“SMEs should also consider their online assets and how to protect them. Given the importance of data to businesses it is essential that SMEs have strategies in place to mitigate online risks. Data is currency and while the internet has made it much easier to access information it has also increased cyber risks such as hacker attacks and electronic ID theft. SMEs need to think beyond securing the building and put in place robust online security measures.”

Hiscox offers the following security tips to help SMEs to protect against online and offline risks:

– Protect information with a need-to-know policy with employees. If storing information on a central file server, manage who has access to files. This can help prevent data loss, whether accidental or deliberate

– Running an enterprise is a full-time activity and if you do not have online technical expertise seek professional advice on security. This can both save time and ensure the security measures cover the business needs

– Encrypt important information for extra security so that only authorised users will be able to access them

– Using the internet and email to conduct business means that data loss becomes a risk. Develop a clear email policy and raise online security awareness and issues with employees

– Back up your files and check your insurance cover so that you can get business up and running again quickly in the event of an incident.

– Items like laptops and computer monitors are common targets for thieves and the real cost of a stolen IT asset isn’t just the hardware, it’s the lost data and the lost productivity. Lock servers in a room and move laptops into a secure drawer at the end of a working day


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A second US federal judge Monday declared President Barack Obama’s health care law unconstitutional, sparking a fierce new showdown with Republicans who vow to repeal the historic reform act.

The Obama administration immediately pledged to appeal and branded the ruling by a Florida judge as an “outlier” from the judicial mainstream, warning that health care costs would soar if it was allowed to stand.

But Republicans crowed that the ruling was one step closer to the outright repeal of a law that has been a Democratic dream for decades but that conservatives say will explode the deficit and kill jobs.

US District Judge Roger Vinson said a key provision of the law known as the “individual mandate” exceeds Congress’s regulatory powers by requiring Americans to either purchase health insurance by 2014 or pay a fine.

“Because the individual mandate is unconstitutional and not severable, the entire act must be declared void,” Vinson said in his ruling, the latest step of a twisting legal battle likely to end up in the US Supreme Court.

“This has been a difficult decision to reach, and I am aware that it will have indeterminable implications.”

Vinson agreed with governors and attorneys general from 26 US states that consider the provision unconstitutional.

But the Justice Department quickly said it would appeal Vinson’s ruling, and consider all options — including a stay of the verdict pending appeal — to ensure the health care law can go into force.

The health care law, which passed last year, is the most sweeping piece of social legislation since the 1960s, reins in insurance company abuses and brings America as close as it has ever been to universal coverage.

“Today’s ruling… is a plain case of judicial overreaching,” Stephanie Cutter, a senior political assistant to Obama, said in a White House blog post.

“The judge’s decision puts all of the new benefits, cost savings and patient protections that were included in the law at risk.”

In December, Judge Henry Hudson of the Eastern District Court in Richmond, Virginia, found that the mandate usurps federal authority and violates the Commerce Clause, a key component of the US Constitution.

Some 12 federal judges have already struck down challenges to the law, and two have upheld the legislation.

Republicans pounced on the latest ruling, seeking fuel for their campaign to overturn the reform — a vain hope for now, as Obama could wield a presidential veto in the unlikely event a repeal law cleared Congress.

Senate Republican Minority Leader Mitch McConnell said the court’s decision proved the health care law was a “massive overreach” and exceeded congressional authority.

“We should repeal this health spending bill and replace it with commonsense reforms that will actually lower costs, prevent unsustainable entitlement promises and make it easier for employers to start hiring again,” he added.

Republican National Committee Chairman Reince Priebus called the ruling a “major victory for the American people and job-creators all across the country.”

Obama’s Republican foes have claimed the health care law includes rationing for end of life care, would add to the massive deficit and will kill jobs as employers struggle to pay for what they say will be rising premiums.

The new Republican-led House of Representatives has already voted to repeal the health reform law, which reins in insurance firms and seeks to offer near-universal care to Americans for the first time.

Obama said in his State of the Union address earlier this month that he was “eager” to work with Republicans to make small improvements in the law but was not willing to consider a complete repeal.

Opinion polls have found the US public deeply divided over the health law, with roughly one in five in favor of outright repeal and the rest divided between strengthening the law and rolling back parts of it.

Washington, Jan 31, 2011 (AFP)

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Japanese researchers on Monday reported a “lab” breakthrough: a retriever which can scent bowel cancer in breath and stool samples as accurately as hi-tech diagnostic tools.

The findings support hopes for an “electronic nose” one day that can sniff a tumour at its earliest stages, they said.

Researchers led by Hideto Sonoda at Kyushu University in Fukuoka, Japan, used the specially-trained female black labrador to carry out 74 “sniff tests” over a period of several months.

Each of the tests comprised five breath or stool samples, only one of which was cancerous.

The samples came from 48 people with confirmed bowel cancer at various stages of the disease and 258 volunteers with no bowel cancer or who had had cancer in the past.

They complicated the task for the eight-year-old canine detective by adding a few challenges to the samples.

Around half of the non-cancer samples came from people with bowel polyps, which are benign but are also a possible precursor of bowel cancer.

Six percent of the breath samples, and 10 percent of the stool samples, came from people with other gut problems, such as inflammatory bowel disease, ulcers, diverticulitis, and appendicitis.

The retriever performed as well as a colonoscopy, a technique in which a fibre-optic tube with a camera on the end is inserted into the rectum to look for suspect areas of the intestine.

It correctly spotted which samples were cancerous and which were not in 33 out of 36 breath tests, equal to 95 percent accuracy, and in 37 out of 38 stool tests (98 percent accuracy).

It performed especially well among people with early stage disease, and its skills were not disrupted by samples from people with other types of gut problems.

Previous research has also found that dogs can sniff out bladder, lung, ovarian and breast cancer.

Using dogs as a screening tool is likely to be expensive.

But the success of this experiment backs hopes for developing a sensor that can detect specific compounds, in faecal material or the air, that are linked to cancer.

There is already a non-invasive method for screening for bowel cancer, which looks for telltale traces of blood in a stool sample. But it is only about 10 percent accurate in detecting early-stage disease.

The dog used in the Japanese experiment was initially trained for water rescue in 2003 and then began training as a cancer detector in 2005.

Every time she correctly distinguished a cancer sample, she was allowed to play with a tennis ball.

Paris, Feb 1, 2011 (AFP)