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As the Big Freeze in the UK shows no signs of abating, Aon Risk Solutions, the global risk management business of Aon Corporation, is advising businesses affected by the snow to constantly evaluate whether their business continuity plans, if they have any, are effective and note any findings to minimise impact from future events.

Vincent West, head of business continuity at Aon commented: “Businesses who have developed a business continuity plan are likely to have identified the parts of their business that are essential to keep moving, and will be throwing whatever resources they have available at making sure these hold up. Businesses that have not got a plan in place and are experiencing the effects of the adverse weather should now be doing the same.

“An area often overlooked by many businesses is the well being of staff members. While many staff will work from home in order to avoid perilous road and rail journeys, those that do venture in may find themselves stranded at the office. Businesses will not be used to having to provide bedding or alternate accommodation and meals, for example, to staff stuck at work for several days.

“During the remainder of the Big Freeze, businesses should be:
– Maintaining contact with their stakeholders, staff and customers to manage expectations around revised delivery dates or service availability
– Thinking now about how they plan on dealing with backlogs once the weather improves
– Constantly evaluating where business continuity plans are working and where they are not, and be fluid in moving resources to ensure business continues as normally as possible.

“Businesses that may already be struggling because of the economic conditions may find that several days out business because of snow may be the thing that tips them over the edge. We are experiencing more and more business interruption events: two Big Freezes and the Icelandic volcano this year alone. Businesses need to ensure they are planning, as much as possible for these types of events.”

Source : Aon Press Release

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Since 2008 the AXA Research Fund has been providing support for research focused on understanding and preventing the risks threatening the environment, human life and our societies. Beyond Europe, research institutions from some Asian countries can now apply to get funding by this initiative of scientific philanthropy created by the AXA Group.

On December 2, the AXA Research Fund announced it awards its first grant in Asia to support over a period of 3 years the National University of Singapore (NUS) to undertake a research project on the “Biology of Decision Making under Risk”.

The research project seeks a deeper understanding of the biological mechanisms underpinning individual differences in how people take risks by bringing together methodologies from behavioral and experimental economics and the biological sciences.

John R. Dacey, CEO of AXA Japan-Asia-Pacific Region and Member of the AXA Group Executive Committee, declared: “I am very pleased to announce the first Asian grant by the AXA Research Fund to the National University of Singapore, for an outstanding and innovative research project led by Professor Ebstein and Professor Chew.

“As a global leader in insurance business, AXA actively promotes the understanding and prevention of risks. We are convinced that basic research is essential for the development of knowledge in this area and thus contributes to building stronger and safer societies.

“AXA teams in Singapore share with me the pride of this extension of the AXA Research Fund outside of Europe. I believe it is a very strong sign of our long term commitment to the region and its strategic importance for the Group.

“I sincerely wish all the best to Professor Ebstein and his team and I really hope this first step will encourage more Asian institutions to apply.”

Source : AXA Press Release

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A motorist who feared he would die when his car lay upside down in a beck is now facing a new headache over insurance.

The Press revealed on Saturday how Brian Wharton crashed into the beck near Wilberfoss after swerving to avoid a motorist coming the other way along a single- track road.

He and his partner feared they would drown before they eventually managed to open a back door just enough to squeeze out. The couple have both since suffered from sickness and diarrhoea, possibly caused by accidentally drinking some of the beck water.

Mr Wharton, 57, from an East Yorkshire village, said today his partner’s Ford Focus, worth about £5,000, was written off in the accident, and he contacted his insurance company, Liverpool Victoria, believing it would pay out under his insurance policy.

But then he was told he was not entitled to any payment, because he only had third party, fire and theft cover when driving any vehicle other than his own.

He said he had comprehensive insurance to drive his own car and had believed this would extend to his partner’s vehicle.

He claimed his insurance certificate stated he was entitled to drive another person’s car with their permission, but did not at any stage make clear the cover was only third party.

“If it said elsewhere in small print that my insurance only gave me such cover. It should have made it much clearer,” he said, adding that he wanted to warn other motorists of the potential problems.

A Liverpool Victoria spokeswoman said that if motorists had fully comprehensive insurance on their own car and drove someone’s car, they would be insured on a third party basis only – unless they were a “named” driver. “This means in the event of you being in an accident that is your fault, repairs to your car will not be covered,” she said.

She said such rules were standard across the market, and anyone who regularly drove someone else’s car should add themselves as a named driver to ensure all repairs would be insured in the event of an accident.

Source : York Press

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Companies may wish to thoroughly review their existing business insurance policies in the wake of the recent large-scale warning, which was issued concerning threats to internet security and fraud involving employees.

The warning was issued by Amichai Shulman, chief technology officer at Imperva, a data security specialist, who commented that the latest Wikileaks scandal had highlighted the extreme problems that can result from rogue workers who get hold of very sensitive personal data.  The Wikileaks case is set to have a global impact.

Mr Shulman’s remarks follow hot on the heels of the release of 250,000 secret messages by Wikileaks, the whistle-blowing website, which were originally sent by US diplomats.  The secret messages reveal sensitive information, including what the US government thinks of a number of world leaders.  Needless to say, widespread embarrassment is expected.

The Guardian newspaper, which will be publishing some of the information, said a young intelligence analyst had come forward and admitted to the data theft, adding that he found it incredibly easy to access the secret files.

Mr Schulman added that the Wikileaks case underlined the potential harm that can result from ignoring internal data security loopholes and being too focussed on threats from outside companies and organisations.  He remarked, “Organisations need to wake up to the complexities of internal threats, rather than simply relying on conventional IT security systems.”  He added, “Yes, there are hackers out there, but IT history has shown that the rogue employee is also a threat.”

Companies must ensure they have business insurance policies in place, which are an integral part of their security strategy.

Source : Policy Experts

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Car manufacturer Vauxhall have launched snow socks which are aimed at making car travel safer during the snow and ice which has blighted Britain over the last few days.

Vauxhall’s snow socks are made of fabric and are designed to be fitted to the two front wheels to help the car grip the surface and plough through thick snow more easily. They are designed for use up to 50mph, although the manufacturer recommends driving at a far slower speed for safety reasons.

The car accessory fits over the tyres and the manufacturer claims they are a better option than car chains and winter tyres which are more commonly used during icy and snowy conditions to provide better grip on the road.

It is hoped that the use of snow socks may go some way to helping to reduce the number of accidents caused by snow and ice during the winter months. Last year during December 2009 through until January 2010 when the UK was hit with a severe cold snap, the Association of British Insurers recorded £395 million worth of claims paid out as a result of accidents caused by the weather.

The snow socks are made out of a unique kind of fabric which has been arranged at right angles in the opposite direction to the way the vehicle is travelling in order to create a greater resistance, and therefore enhanced grip on the road.

Although the snow socks are manufactured by Vauxhall, they can be used on any type or model of car. The car accessory retails at £49.99 for a pair of snow socks and they can be purchased from any Vauxhall dealer.

Source : Lady Motor

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Hundreds of tropical islands that face being wiped off the map by rising seas and more frequent storms could be helped by a new international insurance fund.

Islanders who lose their homes and livelihoods could receive payments to help them rebuild on higher ground or relocate to other countries.

Britain and other EU member states are considering providing “seed money”, which would subsidise the cost of premiums for islands signing up for the insurance fund. Munich Re is leading a group of insurers working on plans for such a fund.

A group of 43 small island nations is hoping to secure an international agreement in principle to establish the fund at the UN climate conference taking place in Cancun, Mexico.

Islands such as Kiribati, Tuvalu, the Cook and Marshall Islands and the Maldives were facing “the end of history”, said ambassador Antonio Lima from the Cape Verde Islands, spokesman for the Alliance of Small Island States.

He said: “We are the most vulnerable countries in the world but the least polluters. At this moment we are facing the end of history for some of us.

“We are going to be the first human species endangered in the 21st century. We are going to be in danger of going extinct. Imagine someone in the sea with their head just above the surface.”

Mr Lima said the target set in the non-binding Copenhagen Accord of limiting the global temperature increase to 2C would condemn many small islands because this would still result in a significant rise in sea levels from melting polar ice sheets and thermal expansion of the oceans.

AOSIS is demanding that the increase be limited to 1.5C, but most major economies believe this is impossible because it would require immediate and drastic reductions in global emissions. The temperature has already risen by 0.7C and this year is likely to be one of the two hottest on record.

Mr Lima said: “The difference between 1.5 and 2 degrees is to survive or collapse. If you ask us to accept this, it’s for you to ask me to put my country in a desperate situation.”

The insurance fund is being debated as part of a compromise, under which the world’s major economies would acknowledge the increased risk to island nations, but help them secure payouts in the event of disaster.

As a first step, the islands and insurers will work together to assess the value of the assets at risk and produce a report in time for next year’s climate conference in South Africa.

Source : The Australian

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A federal judge in Virginia on Tuesday dismissed a lawsuit challenging the landmark healthcare law championed by President Barack Obama, upholding key provisions that require health insurance coverage.

The challenge, one of several attempting to strike down the law passed earlier this year, was brought by the conservative Christian Liberty University and individuals who said the law would violate several parts of the U.S. Constitution.

U.S. District Judge Norman Moon ruled that the law requiring individuals to buy health insurance coverage as well as requiring employers to buy coverage for their employees was legal under the Commerce Clause of the U.S. Constitution.

Moon found that without the coverage requirements in the law, the cost of health insurance would increase because the number of insured individuals would decline, “precisely the harms that Congress sought to address with the Act’s regulatory measures.”

Further, interstate commerce would be hurt by large employers failing to offer adequate healthcare coverage, thus “the employer coverage provision is a lawful exercise of Congress’ Commerce Clause power,” said Moon, who was appointed by then-Democratic President Bill Clinton.

A lawyer for Liberty University, which was founded by conservative evangelical Jerry Falwell, said they will appeal to the U.S. Court of Appeals for the Fourth Circuit and argued the law would be found unconstitutional.

“Congress does not have the authority to force every American to purchase a particular kind of health insurance product,” said Mathew Staver, who is dean of Liberty’s School of Law and runs Liberty Counsel, which represented the plaintiffs in the challenge.

The lawsuit is one of many challenging the healthcare law. The state of Virginia has filed its own challenge and 20 other states have sued to strike down the law in a federal court in Florida. Rulings are expected in the coming weeks and months.

Many of the challenges center on whether the federal government can regulate whether or not someone fails to buy a good or service under the Commerce Clause and whether the fines are a tax.

Even though Obama has said previously that the penalties would not function as a tax, the federal government has argued in court that they are and it is entitled to levy them. Opponents counter that they are punitive fines which the government is not entitled to impose.

Judge Moon characterized the fines as “penalties” rather than a tax, noting that they are not designed to raise revenue but merely to “enforce the requirement that individuals and employers purchase or provide health insurance.”

Further, opponents of the law have argued that it illegally permits federal funding for abortion but Moon said “they fail to allege how any payments required under the Act, whether fines, fees, taxes, or the cost of the policy, would be used to fund abortion.”

He also said that the law has several safeguards to prevent that from occurring.

The Obama administration welcomed the decision, the second major ruling backing the law. A federal judge in Michigan last month upheld provisions requiring Americans to buy health insurance coverage.

“The judge’s ruling today only underscores the importance of the law’s individual responsibility provision,” Stephanie Cutter, a White House adviser, said in a blog post. “In order to make health care affordable and available for all, the Act regulates how to pay for medical services.”

Source : Reuters

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With much of the UK facing its first cold snap and significant snowfalls of this winter, the ABI is warning motorists not to leave their vehicles unattended, with the engine running to defrost and warm up. Thieves are increasing targeting cars left unattended in this way.

Cold weather leads to a spate of vehicles stolen by thieves on the prowl for vehicles left unattended with the engine running to defrost. During the last cold snap in January this year, Lancashire police alone logged 27 unattended vehicles left this way over just two hours. In one morning four cars were stolen this way in Greater Manchester. Last year, a gang of car thieves known as The Ice Bandits received prison sentences.
Leaving your vehicle unattended with the keys in the ignition could be seen as not taking reasonable care, and might invalidate any insurance claim if your vehicle is stolen in this way.

Nick Starling, the ABI’s Director of General Insurance and Health, said:

“No one wants to freeze while defrosting their car. But tempting though it is on freezing mornings, don’t leave your vehicle with the engine running to warm up while you nip back inside, even if it is only for a couple of minutes, as it only takes seconds for thieves to strike. Stay with your vehicle while it warms up, so that it is you that drives away in a warm car, not a thief.”

Source : ABI Press Release

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As freezing temperatures hit Europe, EuroTempest reviews the extreme cold and snow fall experienced across much of the continent last winter, looks into the seasonal predictions for the coming months and advises the insurance industry on how to manage these seasons of uncertainty.

Climatology

European winter meteorology is strongly influenced by the North Atlantic Oscillation (NAO), the atmospheric pressure difference between the semi-permanent centre of low pressures near Iceland and the Azores, a large subtropical centre of high pressures. When the difference is higher than the climatological average, the NAO is in its positive phase, favouring wet, warm and windy winters over Europe. Colder, drier weather tends to dominate in its negative phase.

During last winter, the NAO Index reached some of its lowest values ever observed between mid-December 2009 and mid-January 2010, corresponding with record freezing temperatures and snowfall leading to a sharp increase in insurance claims.

The NAO Index values remained extremely low throughout February, during which windstorm Xynthia– a wet event –developed and caused considerable losses across Europe. The negative phase of NAO during February 2010 did not favour severe European windstorm activity, which demonstrates the difficulties of producing an accurate seasonal forecast from the existing understanding of the European climatology.

Cold weather claims

The losses caused by the freezing conditions of winter 2009-2010 were, for some insurers, of the same magnitude as the windstorm damage caused by Kyrill in 2007. Motor insurance claims were estimated to be around 30%1 above average in the UK and RSA2 estimated that the total economic cost to the UK of the snow was up to GBP690 million per day due to business interruption.

Notably, burst pipes caused both significant damage, particularly in the UK and Ireland, and a new claims challenge for insurers. This was the first time for at least 20 years that large volumes of burst pipe claims had been experienced, causing some uncertainty in calculating the appropriate reserves.

Forecasting European Weather

Accurate and useful seasonal predictions of European weather are notoriously difficult to produce due to the chaotic nature of the atmosphere in this region. Last winter, two out of three forecast agencies predicted a warmer than average winter when Europe experienced record low temperatures and snowfall. The uncertainty in the seasonal outlooks means that insurers need to rely on shorter term forecasts and technologies to be prepared when a weather event strikes.

For example, EuroTempest’s Five Day Outlook for Europe from 29 November 2010 reveals:

Some unsettled conditions are expected for Europe over the next five days with some heavy precipitation expected in places.

Gusts of over 60mph are currently not expected to affect any land areas of Europe over the next five days.

Precipitation of over 25mm per day is currently expected to occur over countries on the east coast of the Adriatic from today until Thursday. Daily rates may exceed 75mm in places. Precipitation of over 25mm per day is also expected over eastern Poland and western Ukraine today, southern France and parts of Hungary on Wednesday and Albania on Thursday and Friday where daily rates may reach 40mm.

Managing the Weather

Where can I access the forecast information I need?

With unreliable seasonal forecasts and national meteorological data primarily geared towards public safety rather than insurance, EuroTempest provides a tailored alternative for insurers with five day outlooks published twice-weekly. These focus on the information that is most relevant for insurers such as wind, rainfall and temperature across Europe. Alert emails are also available for freeze and thaw events.

How we can calculate real time loss estimates?

Early insight into weather conditions and expected losses is critical to efficient capital and human resource allocation. EuroTempest combines real-time forecasts and observation data taken during an event with vulnerability models to provide estimates of claims volume and distribution. This is available for European portfolios up to five days before an event and within 24 hours for post-loss estimates. EuroTempest post-event loss estimates for windstorms Klaus and Xynthia were within 5% of the final published loss for specific insurers.

I’m a reinsurer… what’s the damage?

The complexity of reinsurance contracts and the diversity of risk data makes loss estimation and effective response management more challenging for reinsurers. In response to requests from reinsurers with a mixture of aggregated and non-aggregated risks in their portfolio, EuroTempest has developed ReLoad™ (Reinsurance Loss And Damage), a new loss-ratio product which combines measured wind speed data and vulnerability curves to deliver representative loss-ratio maps within 24-hours of an event to help guide loss assessment and response. The data is available as tabulated files or in Google Earth format for visualisation over risk location and exposure maps.

How can we use retrospective weather data to benefit our business?

EuroTempest collects weather observation data from around 2,000 weather stations across Europe which feeds into our loss estimations and enables bespoke weather analyses. For example, with the combination of data and meteorological expertise, EuroTempest was able to establish that the sequence of damaging cloudburst events in Denmark in August 2010 were likely associated with a single weather system. This resolved queries from the insurance industry of whether or not the losses were associated, thus impacting the payment of claims.

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Insurance giant Prudential has underlined its potential in Asia by revealing a new target to double new business profits from the region by 2013.

The rapidly-expanding economies of South East Asia are ripe for growth as the penetration of insurance products remains low in comparison with developed countries.

In a presentation to investors in London, chief executive Tidjane Thiam set out his target to double the value of profits from Asian new business by 2013, compared with the £713 million achieved last year.

The Pru delivered on its previous objective to double Asia new business profits between 2005 and 2009 and said its new target was achievable given its proven strategy and the potential of its chosen markets.

To read more please click here…

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By photographing tiny blood vessels in a person’s eyes, researchers have found a way to link exposure to air pollution with a higher risk of heart disease, a study published Tuesday said.

“New digital photos of the retina revealed that otherwise healthy people exposed to high levels of air pollution had narrower retinal arterioles, an indication of a higher risk of heart disease,” said the study in PLoS Medicine.

A person who was exposed to low level of pollution in a short time period showed the microvascular — or extremely tiny — blood vessels “of someone three years older,” it said.

Someone who faced longer term exposure to high levels of pollution had the blood vessels of someone seven years older, it said.

“Such a change would translate to a three percent increase in heart disease for a woman living with high levels of air pollution as compared to a woman in a cleaner area,” said Sara Adar, research assistant professor at the University of Michigan School of Public Health.

While the study is not the first to link heart disease and pollution, it is the first to examine the relationship between pollution and microvasculature in humans, Adar said.

The study examined retinal vessels because they are representative of tiny vessels seen elsewhere in the body but are easily viewed without surgery.

Although the narrowing in the vessels amounted to about 1/100s of a hair’s width, “this could have important health consequences if all of the microvasculature in the body is affected in the same way,” Adar said.

A total of 4,607 people aged 45 to 84 with no history of heart disease took part in the study.

Researchers took digital retinal photographs of their blood vessels and measured air pollution levels in their homes for two years prior to the eye exams.

They also checked pollution levels on the day before the eye exam to calculate short-term exposure.

“Even though pollution levels in the study were generally below the level that the EPA considers acceptable, these levels still appeared to negatively affect the tiny blood vessels,” the study said.

Lead author Joel Kaufman at the University of Washington, Seattle said the research “provides a strong potential link between the epidemiological observations of more cardiovascular events like fatal heart attacks with higher pollution exposures and a verifiable biological mechanism.”

Washington, Nov 30, 2010 (AFP)

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A unit of French insurer Axa SA sued an ING Groep NV subsidiary over alleged misrepresentations in ING’s $1.5 billion sale of a Mexican insurance company to Axa.

Axa Mediterranean Holding discovered after the 2008 deal closed that ING Insurance International had made false representations and warranties about the financial statements and condition of the Mexican company and its subsidiaries, according to the complaint in New York state Supreme Court. Axa said it has suffered “tens (if not hundreds) of millions of dollars in damages.”

The suit focuses on a bond company, ING Fianzas SA, that was included in the sale. That company, renamed Axa Fianzas SA, was a unit of the Mexican insurance company, Seguros ING SA de CV, acquired by Axa.

“ING falsely represented and warranted that the bond company had sufficient collateral and/or reserves (as required under Mexican law) for the bonds it had issued,” Axa said in the complaint filed Nov. 26. “For many of the relevant bonds, collateral was either completely non-existent or otherwise insufficient.”

From the July 2008 acquisition of the bond company until May 2010, when Axa sold it to a third party, Axa paid millions of dollars on bonds that it couldn’t recover because the bond company lacked the collateral or reserves that ING had said it had, according to the complaint. As of Sept. 30, 2007, the bond company had $2.2 million in collateral to cover $65.4 million owed on tax obligation bonds, Axa said in the complaint.

Overpayment

Axa also overpaid ING for the bond company, according to the complaint. Axa said that ING gave it a third-party valuation in 2007 that the company was worth $118 million to $162 million. Eighteen months later, Axa agreed to sell the company to an affiliate of Afianzadora Sofimex SA, another Mexican bond company, for $2.74 million.

Raymond Vermeulen, a spokesman for Amsterdam-based ING Groep, said in a phone interview that the company’s policy was not to comment “on legal matters like this.”

Axa also alleges in its complaint that Seguros ING had inadequate reserves for potential losses in lawsuits filed by policyholders over denied coverage.

The case is Axa Mediterranean Holdings SA v ING Insurance International BV, 652110/2010, New York State Supreme Court, New York County (Manhattan).

Source : Bloomberg

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Families are facing the prospect of shelling out an additional €200 a year for private health insurance.

Yesterday, Quinn Healthcare said it would impose average hikes of 8pc from the start of January, but some of its most popular health-care plans are going up by 15pc.

Its popular Essential Plus Excess plan will rise by €230 a year to €2,150 from the start of January, for a family of two adults and two children. And the move by Quinn will be followed by across-the-board increases by the VHI and Aviva, health insurance experts said.

Families can expect hikes of up to 10pc to be imposed in the new year for their private health insurance premiums, according to Dermot Goode of healthinsurancesavings.ie.
And if the December Budget sees the Government impose large rises in the cost of a private and semi-private beds in public hospitals, then families face increases as high as 20pc, Mr Goode said.

It also emerged yesterday that Aviva has already imposed a 10pc rise for its popular Level 2 Everyday plan, with the new price taking effect from Christmas Eve.
The hike for this plan will mean a family with two adults and two children will face an additional premium of €240, with the total cost rising to €2,642, Mr Goode explained.

Aviva said this was the only plan that had gone up in price. The company would not comment on whether prices of other plans might be increased.
Last night, Quinn blamed the Government for its decision to pump up its premium costs.

It said the decision to impose a levy on health insurance policies in 2009 and the move to push this up by 15pc this year had left it with no choice but to pass on this added cost to its customers.

“The Government is currently charging €185 per adult and €55 per child for the health insurance levy — whether you are on a higher-priced plan or a low-cost starter plan.

“We believe the levy is completely disproportionate, as less well-off customers compensate those better-off customers with luxury health insurance products.”

A spokeswoman for Vhi Healthcare said it had not made any decision on future pricing.

“Any decision on pricing depends on a number of factors, including the continuing growth in our customers’ health-care needs, the regulatory environment and the need to ensure that our income meets our health-care expenditure.”

Mr Goode advised those with private health care to review their cover now and consider locking into the current rates. Consumers can sign up for a different plan now and lock in at that rate for a year.

“People often think that they have to remain as is, until their next renewal date, which is not the case.

“Strictly speaking, it is an annual contract but you can actually cancel your policy on a particular date and set up a new policy from the same date with a new renewal,” he said.

Source : Independent.ie

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Aon Benfield, reinsurance intermediary and capital advisor, has appointed Hideyuki Yoshida as head of Aon Benfield Analytics in Japan.

He will be responsible for managing a team of Analytics professionals, offering Japanese clients industry-leading catastrophe management, actuarial, rating agency advisory and risk and capital strategy expertise.

Mr. Yoshida joins from PricewaterhouseCoopers Aarata Audit Firm where he was director chief actuary, Actuarial Service. He has conducted actuarial audits, ERM advisory and due diligence for Japan’s leading re/insurers. He has over 30 years of experience in the insurance industry including several senior manager positions at Meiji Life Insurance Company.

Mr. Yoshida is former chairman of the International Association of Consulting Actuaries (IACA), and currently chairman of the Asia Pacific Association of Consulting Actuaries (APACA).

John Moore, head of International Analytics, said: “We’re delighted that Mr Yoshida has joined the team. His extensive actuarial experience, reputation in the market and leadership skills means he is the ideal candidate to deliver excellent client service and help grow the business in Japan.”

Source : Aon Benfield Press Release

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Assicurazioni Generali, Europe’s third-largest insurer, plans to expand its real estate holdings to about 10 percent of its 330 billion euro ($441 billion) investment portolio.

Italy’s largest insurer said on Friday it was preparing for Solvency II capital rules by maintaining a solid capital base while maintaining its investment strategy in the asset management sector.

“Specifically in the life segment…Generali will be able to offer products providing on the one hand improved performance for policyholders, on the other lower capital absorption,” it said.

Analysts on Thursday welcomed Generali’s revamp of its life insurance operations ahead of the latest EU capital rules.

The EU’s solvency II rules — aimed at a closer alignment of insurers’ capital cushions to the risks on their books — are still being finalised for a Jan. 1, 2013 launch.

In asset management, Generali’s Hong Kong joint venture with China’s Guotai will start operations in early 2011.

In real estate, the aim is to boost this portfolio in the medium term to 30 billion euros, up 24 percent from the level at the end of September, it said.

Source : Reuters

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A great number of skiers and snowboarders will head to the slopes this winter without adequate insurance, according to a new survey, potentially leaving them facing costly medical bills.

Even in these more austere times, winter sports holidays remain popular and many people are now planning this year’s break.

But according to the Ski Club of Great Britain, more than half of those heading for the slopes won’t bother with travel insurance. And of those who do have insurance, only a quarter will check the terms and conditions to ensure they are covered for winter sports activities.

Given the high rate of injuries on the slopes, you would think a comprehensive insurance policy would be seen as essential as ski goggles and gloves. But, surprisingly, many people don’t bother with this insurance because they don’t think it would pay out in the event of an accident.

According to Axa, one of Britain’s largest travel insurers, in a recent survey of skiers and snowboarders, one in five (19%) said they believed an insurance policy would not pay out for injuries and one in three did not believe cover would be provided for transport home if injured.

Needless to say, both of these events should be covered in full on a comprehensive winter sports holiday.

Much of the confusion may arise because of the European Health Insurance Card (EHIC).

All holidaymakers travelling to Europe are advised to get one of these cards, as they cover some of the cost of medical treatment in Europe. But they are not an adequate substitute for insurance. For starters, they only offer up to 80% off medical bills in hospitals that accept the card.

However, there is no guarantee that in the event of an accident you will end up in a hospital that participates in this scheme. Dr Tim Hammond, from medical assistance provider CEGA, said: “If you are injured on the slopes, resort pisteurs will probably take you straight to a private clinic, where the EHIC care will not cover your medical treatment.”

Even if you get to the equivalent of an NHS hospital, the “free” medical treatment available may be a lot less than what we are used to in Britain. The EHIC card won’t pay for any transportation costs either – either to hospital, or for repatriation back home. So while it makes sense to take one, it is also essential to buy comprehensive insurance.

This insurance should pay for most medical expenses incurred abroad, which will include those not covered by an EHIC card.

Skiing and snowboarding injuries are relatively common. The Association of Mountain Doctors in France said it dealt with 140,000 injuries last year; and according to the Axa survey, about a quarter of those who have been on a winter sports holiday have suffered some kind of injury – and the cost of treating these can soon escalate.

Many need evacuation from the slopes (which certainly wouldn’t be covered on an EHIC card), then there is the cost of any treatment, such as X-rays, operations, and in more serious cases, transport home.

For those holidaying in the ski resorts of Europe these costs can easily top £25,000 – and it is even higher for those needing medical treatment and flights home from America and Canada.

But what should you look for in a winter sports policy?

First off, check you are covered for these sports. Many people rely on an annual policy, which won’t necessarily cover these activities. If you already have an annual policy, it is worth contacting your insurer. Most will add on this cover, for a fee of course.

Check it covers your holiday destination. This may sound obvious, but some people buy winter sports cover, thinking this will cover them wherever they go skiing or snowboarding. But if you have European-only cover it’s obviously not going to cover you for skiing trips in Whistler or Aspen. People who simply renew an annual policy each year, without really checking what they have, could potentially fall into such traps.

Aside from the medical cover, you also want to make sure the policy has personal liability and legal expenses cover. This will cover your costs if someone injures you and you need to take legal action against them; likewise it will cover you if you are involved in a collision and someone wants to sue you.

Retired skiers should also check that their insurance still covers them, particularly if they have “free” insurance with either a bank account or credit card. Many of these only cover people up to the age of 60, for example.

Keen winter sports enthusiasts should ensure that their policy is tailored for all activities. Off-piste skiing, for example, may not be included, or only if you are with a registered guide. Likewise, there may be insurance restrictions on activities such as tobogganing, ski touring, glacier skiing, heli-skiing or even racing.

A spokeswoman for the Ski Club of Great Britain said: “Even if you are or your children are taking part in fun races with the resort’s ski school, these may not be covered. Many policies do not cover racing, not even recreational races.”

Other areas to check include whether there will be payouts for closed pistes, either as a result of high winds, too much or not enough snow.

A winter sports policy should also include cover for lost baggage, and cancellation and curtailment of your trip – as you would find on any standard travel policy.

Source : Telegraph

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    The widening debt crisis in the European Union has made Icelanders aware that joining the bloc or switching to the euro will not necessarily improve their own crisis-struck economy, the country’s finance minister says.

    “When EU countries are faced with difficulties such as Ireland is now, it draws attention to the fact that joining the EU is not a guaranteed life-insurance,” Steingrimur Sigfusson told AFP late Wednesday.

    Iceland began negotiations to join the EU in July, a year after the small island-nation of 320,000 people submitted its application in the wake of a financial crisis that decimated its banking sector and fuelled initial public support to seek out the EU’s economic security.

    But the debt crisis stalking Europe and the euro could cool Icelanders’ eagerness to join the club.

    “Whether Ireland’s situation will influence the general consensus of Icelanders and their will to join the EU and take up the euro is hard to predict but surely this news will have some affect,” Sigfusson said.

    He pointed out there were both “positives and negatives when it comes to the euro.

    “In many ways, the Icelandic krona has been good to us during our economic hardship,” he said, pointing out that the weakening currency had helped boost exports that “have been a significant help in evening out a downward economic slide.

    “I think having the krona has been helpful for us and … unemployment would very possibly be a lot higher without the krona,” he added.

    Iceland’s unemployment rate jumped from one percent in 2007 to eight percent in 2009, a year after its once-booming financial sector ground to a halt when the major banks collapsed.

    At the same time, Sigfusson pointed out, not being part of the eurozone had had negative effects when it came to the accumulation of foreign debt.

    And he stressed, in the case of euro countries like Ireland, that it remained unclear “whether or not having a currency other than the euro would have saved” them.

    That “is much harder to predict,” he added.

    According to recent polls, most Icelanders are in favour of continuing

    EU-membership negotiations but the naysayers have been boosted in part by Iceland’s tough negotiations with EU members Britain and the Netherlands over compensation for British and Dutch savers who lost their savings in the failed Icelandic online bank Icesave.

    Disagreements with the bloc over fishing rights and Iceland’s whaling has also soured some to the idea of becoming a member.

    Reykjavik, Nov 25, 2010 (AFP)

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    Britain’s rising flood risk is further underlined, with figures published by the ABI showing that the cost of flood damage since 2000 has leapt by 200% on the previous decade. With more people set to be at significant risk of flooding, the ABI is calling on the Government to ensure that spending on flood defences is targeted to the most flood vulnerable communities.

    One in six homes in England is currently at risk of flooding. Nearly 500,000 people face a significant flood risk, and it has been estimated that this could rise to 840,000 by 2035 without adequate investment in flood defences.

    ABI’s figures highlight the huge financial cost of flooding:

    – Since 2000 insurers have paid out £4.5 billion to customers whose homes or businesses have been hit by flooding. This is up 200% on the £1.5 billion paid in the previous decade in real terms.

    – Major floods since 2000 have included the 2007 summer flooding which resulted in insurers paying out £3 billion, the 2005 floods in Carlisle that cost £272 million, and the Cumbrian floods in November 2009 costing £174 million.

    – Reasons for the rise in flood costs include the increased frequency and severity of flooding in the UK and the growing problem of surface water flooding (the Environment Agency has estimated that 2.8 million properties are at risk of flooding from surface water). It has been previously estimated that the total value of assets under flood risk exceeds £200 billion – more than the current budget deficit.

    These figures were released at the ABI’s flood conference “Fighting Flood Risk Together” held today. At the conference over 100 representatives from the insurance industry, policy makers and community groups discussed the impact of the Government’s recent announcement of a cut in flood defence spending, and what needs to be done to tackle the UK’s flood problem.

    Speaking at the conference, Tim Breedon, ABI Chairman and Group Chief Executive, Legal and General, said:

    “Flooding devastates lives and communities. Insurers play a key role in helping those affected recover, but prevention must be better than cure. The recent announcement of a cut in Government investment in flood defences was disappointing, and it is now vital that Government spends its money wisely to bring real improvements where they are most needed.”

    Barry Smith, Chairman of ABI’s Property Committee and Chief Executive of Ageas UK, stressed at the conference that:

    “Millions of customers rely on the financial protection provided by flood insurance, and insurers are determined to do everything possible to ensure this continues. The insurance industry’s flood insurance  agreement with the Government, under which insurers commit to offering flood cover to existing customers, expires at the end of June 2013. To ensure flood insurance continues to remain widely available and competitively priced, further investment in flood management is needed when the public purse is in better shape”.

    Source : ABI Press Release

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    The European insurance sector remained stable in 2009, according to key figures released by the CEA, the European insurance and reinsurance federation.

    Provisional figures for 2009 indicate that gross written premiums in Europe totalled €1 057bn, representing a growth of 2.9% at constant exchange rates compared with 2008.

    “The European insurance industry clearly remains a large and stabilising force in the economy,” said Michaela Koller, director general of the CEA.

    Life insurance premiums, which account for more than 60% of all premiums, totalled €647bn in 2009. A clear trend among households to increase their savings in 2009 benefited the guaranteed-return products offered by life insurers in some countries.

    Non-life insurance premiums decreased moderately in 2009 to €409bn from €417bn in 2008. This is the first time in the last decade that year-on-year growth at current exchange rates has been negative. The decrease in 2009 appears to a large extent to be recession-related, with consumers prepared to forego insurance or to reduce their cover to keep costs down.

    In 2009, an average of €1 791 per capita was spent by consumers on insurance in the 33 countries represented by the CEA. Of this amount, €1 097 was spent on life insurance and €694 on non-life insurance, of which €171 was on health insurance.

    Following the rebound in capital markets that began in late March 2009, European insurers’ total investments in the global economy grew more than 8% to €6 800bn in 2009, while in 2008 a drop of 7.5% at constant exchange rates was recorded.

    These figures are published in “CEA Statistics No42: European Insurance in Figures”, which is available to download from the CEA’s website, www.cea.eu.

    Source : CEA Press Release

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    Aviva is pleased to announce the appointment of David Hall as managing director of Corporate Risks and Specialty Lines in its UK general insurance business.

    David joins from Zurich, where he was CEO for global corporate UK business. At Aviva he will be responsible for building a market leading Corporate Risks and Specialty Lines business and will be part of Aviva’s UK general insurance executive team, reporting to UK general insurance CEO David McMillan.

    Commenting on David Hall’s appointment, David McMillan said: “We are delighted to have someone of David’s calibre join Aviva which underlines our ambition and commitment to grow our Corporate Risks and Specialty Lines business.

    “David has a great reputation in this market, with a proven track record based on more than 20 years in the business.”

    David Hall said: “I’m delighted to be joining Aviva and relish the challenge of building a market leading business in Aviva.”

    David McMillan continued: “We already have a very strong, profitable presence in the Specialty Lines arena. Aviva trades in a number of different sectors and our plan is to build upon our current position of strength, as well as the early success we have seen with Corporate Risk Solutions, and achieve significant and profitable growth across all sectors.”

    David’s appointment is the latest senior appointment focused on growing Aviva’s capabilities in the corporate risks sector. Dipak Warren joined Aviva as corporate risk solutions director from Mitsui Sumitomo Insurance Ltd in September. Dipak, who currently reports into chief underwriting officer Axel Schmidt, will report into David Hall once he joins.

    David will join Aviva early next year. He will be based in St Helen’s in London, Aviva’s head office.

    Source : Aviva Press Release

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