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German insurance giant Allianz on Wednesday posted third quarter net profits of 1.27 billion euros (1.74 billion dollars), down 8.8 percent from the previous corresponding period.

But the result was better than expected by analysts polled by Dow Jones Newswires who forecast profits of 1.17 billion euros.

Allianz said that it was on course to meet its annual operating profit target of around 7.2 billion euros, while company boss Michael Diekmann added in a statement that “for the first time since 2005, we will probably end the year with sales of more than 100 billion euros.”

Operating profit over nine months stood at 6.1 billion euros while sales reached 80.5 billion euros. For the third quarter operating profit rose 2.3 percent from a year earlier to 2.1 billion euros, better than analyst forecasts of a 0.3 percent drop.

At the same time sales jumped 11.4 percent to 24.5 billion euros, beating forecasts by analysts expecting an 8.9 percent rise.

Frankfurt, Nov 10, 2010 (AFP)

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Aon Corporation announced today that Andrew Appel, the firm’s chief operating officer, will be leaving the company at the end of the year. At the present time there are no plans to fill the position upon Appel’s departure.

“Andrew has had a great impact in multiple roles across the firm over the past five years, including Aon Consulting and Aon Benfield as chief executive officer, and more recently as chief operating officer of Aon,” said Greg Case, Aon’s president and chief executive officer. “As Chairman and CEO of Aon Consulting, Andrew led a business that more than doubled in profitability, with substantially improved growth. As CEO of Aon Benfield, he led the integration of Aon Re Global and Benfield.  More recently, as our chief operating officer, he co-led our internal team whose work allowed us to pursue our partnership with Aon Hewitt. Andrew also played a significant role in developing our Aon United growth strategy. He is leaving the firm to pursue additional challenges and we wish him all the best in the next chapter of his career.”

Appel said, “I am thankful for the opportunity to have worked with Greg and his team and to have been a part of all we have accomplished together over the past five years.  I leave Aon at a time when it is now the market leader in each of its three businesses. I will watch with confidence as the firm continues its successes while I pursue new challenges in my career.”

Source : Aon Press Release

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    A polio epidemic in southern Congo has killed 78 people since early October authorities said Tuesday, more than a decade after the disease was considered to have been eradicated here.

    The World Health Organisation (WHO) partly attributed the outbreak in the central African country which has not registered a case since 2000 to Congo’s poor health and hygiene infrastructure.

    “We have counted 78 deaths since yesterday (Monday),” a member of a special crisis committee told AFP.

    While Congo’s director-general of health, Alexis Elira Dokekias, would not comment on the death toll, he said more than 180 polio cases had been registered across the country.

    Congolese authorities were to launch a country-wide vaccination programme on Friday against the virus.

    “What is important is not to mention the numbers of deaths. But up to this point we have registered nearly 183 cases,” Dokekias told AFP.

    The majority of cases, or 175, are located in the coastal town of Pointe Noire, he said, with eight other cases scattered around the country including three in capital Brazzaville.

    After an absence of a decade, polio now appears to have returned with a vengeance, with the US Centers for Disease Control and Prevention also confirming the reappearance of type 1 polio — one of three types of the virus.

    “We are facing a very virulent, potentially mortal virus. We are about to launch a vast (vaccination) campaign to reach the entire Congolese population,” Dokekias said.

    “Arrangements have been made for the campaign to begin in Pointe Noire as of Friday,” he said, adding preliminary research suggested the polio had been imported.

    The majority of Congolese who have contracted the virus to date are between 15 and 40 years who either did not receive enough immunization or none at all, Dokekias said.

    Normally polio primarily affects children. The health director urged Congolese not to panic and to wait to be vaccinated by health authorities rather than requesting unsuitable vaccines  from pharmacies.

    Dokekias denied polio’s reappearance in Congo was due to lack of surveillance, noting the disease has broken out elsewhere over the past decade, notably in Namibia, Cape Verde and Albania.

    Neighbouring Democratic Republic of Congo and Angola are also experiencing outbreaks, WHO said last month.    Polio has spread again in recent years with cases imported from some of the four endemic nations in Asia and Africa, mainly Nigeria, in a setback to global attempts to eradicate the crippling and sometimes lethal disease.

    Brazzaville, Nov 9, 2010 (AFP)

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      The British Insurance Brokers’ Association (BIBA) has called on the Government to implement an eight point plan to reduce the spiralling cost of motor insurance.

      Graeme Trudgill, BIBA’s Head of Corporate Affairs, told MPs at today’s Transport Select Committee inquiry that there was no market failure.  He added that signposting customers, particularly young drivers, to a source of help was also a vital part of the solution to access affordable insurance.

      Graeme Trudgill said: “We think the key priorities for the Government should be to introduce Continuous Insurance Enforcement, implement changes to reduce the cost of bodily injury claims and importantly signpost customers to a source of help.

      “Signposting is an important solution at no cost to Government. There are key benefits to consumers, particularly those in the more vulnerable age groups. This will help more people find insurance, meaning fewer are left uninsured and unprotected.”

      BIBA submitted an eight point plan in writing to the committee which it believes will help to tackle the increasing cost of insurance. The eight point plan recommends:

      1. Government must introduce Continuous Insurance Enforcement (CIE);
      2. Signpost people to a relevant broker where they can find competitive cover (particularly young or non-standard drivers);
      3. Regulate comparison sites to the appropriate standard;
      4. Review Pass Plus;
      5. Review the driving test;
      6. Engage with Lord Justice Jackson’s review of civil litigation costs;
      7. Delay the increase to insurance premium tax; and
      8. Provide access to driving licence records.

      BIBA outlined the reasons for the recent increases in the cost of motor insurance as claims inflation, reduced investment income of insurers, competition, commoditisation, insurer withdrawals, uninsured driving and fraudulent claims.

      Source : BIBA Press Release

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        One in four Israelis is living in poverty, the National Insurance Institute said on Monday in a report which also showed that more than a third of children are living below the poverty line.

        Figures in the report, “Poverty Indices and Social Gaps,” showed the number of people living in poverty hit 25 percent of the population in 2009, up from 23.7 percent the year before. Among children, the percentage was 36.3.

        The report said that 1.7 million people, among them 850,300 children, were living below the poverty line, which is defined as having a monthly disposable income that is at least 50 percent lower than the national average.

        Social Affairs and Welfare Minister Isaac Herzog said that the period in review fell in the shadow of the world economic crisis and reflected largely temporary conditions.

        One of the factors affecting the figures was where one of the wage earners in a family had been made redundant or suffered pay cuts due to the global meltdown, Herzog said.

        Of the 15,000 Israeli families who fell into poverty in 2009, most were

        Arabs or ultra-Orthodox Jews, he said, referring to two social groups who traditionally have large families. The effect was reflected in the large number of children affected.

        “In order to join the OECD, the government of Israel made an undertaking to change completely the trend of poverty and unemployment among the two main groups found in poverty,” Herzog told a news conference to launch the report.

        “These two groups are our real challenge.”

        In September Israel became a fully-fledged member of the Organisation for Economic Cooperation and Development (OECD), the club of 33 rich nations.

        Jerusalem, Nov 8, 2010 (AFP)

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        Healthcare and protection insurer Exeter Family Friendly has today announced that with immediate effect, it is cutting premiums on its “Health Cover for Me” private medical insurance (PMI) plan by up to 12.5%.

        The Exeter based mutual insurer has again signalled its intentions to be a serious player in the PMI market, following the introduction of innovative switch and moratorium underwriting options earlier this year.

        Commenting on the premium decrease, Head of Intermediary Sales Mike O’Brien said:

        “We know that intermediaries like “Health Cover for Me” because it is simple, straightforward and won’t leave their customers in trouble when they need it most. But what they have also been telling us is that, in the current financial climate, people are being forced to tighten their belts and increasingly looking for more affordable PMI.”

        “As a business, we are committed to intermediaries and listening to their feedback is a key aspect of what we do. As a result, we’re delighted to “put our money where our mouth is” and give advisers yet another reason to look at us and what we can do for their business.”

        The premium reductions, which vary by age, will be applied to the insurer’s flagship PMI plan.

        Continuing, O’Brien said:

        “Health Cover for Me is PMI for the more discerning customer. There are no financial or time limits to the cover and all stages of cancer care are covered, together with any clinically approved drugs.”

        Source : Exeter Family Friendly Press Release

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        Aviva is launching a salary exchange calculator for advisers. Available on the Aviva for Advisers website, the calculator helps advisers demonstrate the benefits of salary exchange to clients.

        Salary exchange – also known as salary sacrifice – involves employees trading part of their salary or bonus in exchange for a pension contribution from their employer. Employees and employers pay lower income tax and National Insurance contributions and many employers re-direct National Insurance (NI) contributions into their employees’ pensions to boost retirement savings.

        With National Insurance contributions increasing in April 2010 (and again in 2011), salary exchange is becoming increasingly popular with both employers and advisers.

        Features include:

        – Comprehensive input fields that make it easy to capture information reflecting a variety of client circumstances.

        – Before and after scenarios highlight the benefits for employees and employers.

        – Tool to illustrate effect of passing employer saving to employees (0–100%).

        – Production of letters for employees agreeing to salary exchange.

        – Production of personalised reports explaining how each member is affected by salary exchange.

        Paul Goodwin, head of pensions at Aviva, said: “Aviva understands how difficult it can be to put away enough money to enjoy a comfortable retirement and salary exchange can help employees potentially invest more into a pension, afford to retire sooner and achieve a higher tax-free cash lump sum.

        “Salary exchange is a tax-efficient way of maximising contributions into pension plans and with increases in National Insurance, it has become a major feature where an adviser can add value for his client. Aviva’s salary exchange calculator and support material can help the adviser demonstrate the benefits of salary exchange and set-up strategies for employers, and we believe that Aviva’s new tool is the clearest and most user-friendly in the market.”

        Source : Aviva Press Release

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        Aon Benfield, reinsurance intermediary and capital advisor, today announces the launch of its Life Reinsurance hub for the Asia Pacific (APAC) region.

        The new team offers Aon Benfield clients a spectrum of solutions – from traditional proportional and non-proportional to non-traditional transactions – covering the full range of life insurance products. Utilizing the industry-leading capabilities of Aon Benfield Analytics, the operation will bring cutting edge analytical risk management tools to the life reinsurance market.
        Malcolm Steingold, CEO of APAC for Aon Benfield, said: “Aon Benfield has more than 15 years’ experience in the life reinsurance market, with well-established specialist teams in the Americas, the UK and in Continental Europe. This new APAC team expands our life reinsurance capabilities into the region, where we anticipate there being many growth opportunities for this line of business and therefore for Aon Benfield as the leading reinsurance intermediary in APAC.”

        The new operation comprises the full spectrum of life reinsurance broking solutions for life and composite insurers in the region, including capital and reinsurance needs analyses, as well as portfolio modeling and reinsurance optimization through dynamic financial analyses with Aon Benfield’s proprietary modeling tool ReMetrica.
        Angela Koechli, head of Life Reinsurance of APAC for Aon Benfield, commented: “Throughout its global network, which comprises tremendous expertise across all sectors of the reinsurance industry, Aon Benfield is always its clients’ greatest advocate in the marketplace. This ethos extends to the Life Reinsurance team in APAC – we accompany our clients from the initial strategic analysis of their business needs and opportunities, to the provision of relevant capital and reinsurance solutions and beyond. We are very excited at the opportunities in the region, and look forward to working with our clients to help them achieve business growth and their strategic objectives.”

        Source : Aon Press Release

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        Space Partnership International (“SPI”) has announced that it is offering a suite of space insurance products to support NASA’s Commercial Crew Development (“CCDev”) Initiative, the initiative, which includes manned vehicles for space transportation to and from the International Space Station (“ISS”) is designed to usher in a new era of commercial services in low earth orbit.

        NASA has recommended in its CCDev solicitation of October 25th that participants in the Initiative obtain appropriate commercial insurance to include coverage for damage to the participant’s property (such as its launcher and any other flight hardware), and for third-party damages not otherwise addressed by FAA requirements.

        This requirement for insurance is new for NASA and reflects the changing commercial practices of the space agency. One that will require unique solutions that reflect the space industry and overall insurance requirements. SPI’s Managing Director Jean Michel Eid noted that “the SPI Team has a long and successful history in understanding the complexities of space liability and how the various concepts of domestic and international law, including the NASA Act, the Commercial Space Act and UN Outer Space Treaties, interact.”

        The SPI team has been involved with these issues for over 25 years in which time frame insurance placements have included the first policies for: space shuttle cargos, civilian astronauts, mars mission,    X-Prize, satellite de-orbit liability, and coverage for NanoRacks relating to its operations with the ISS.

        Source : PRWeb

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        China’s banking regulator on Monday unveiled new rules governing the sale of insurance by banks as lenders get set to diversify into the area under recently relaxed rules.

        Banks will now be required to perform a risk profile assessment and record telephone conversations its staff have with customers before selling them insurance, the China Banking Regulatory Commission said in a statement.

        “Banks should highlight all possible risks associated with an insurance product and not sell them together with deposits,” the CBRC said in the statement.

        China’s banks have begun looking away from being pure lenders to drive future earnings growth, potentially clashing with insurance firms such as China Life (2628.HK) (601628.SS) and Ping An.

        ICBC, the world’s most valuable lender, said in October it had paid $180 million to buy control of French insurer AXA’s China joint venture, expanding into the country’s fast-growing $100 billion life insurance market.

        On the other side, Ping An’s buy of a 30 percent stake in Shenzhen Development Bank 000001.SZ underscores its own dreams to be a financial conglomerate modelled after the likes of HSBC and Citigroup.

        Source : Reuters

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        Figures reveal that annual renewal costs are at an all-time high. Industry experts blame the rise on an increase in fraud by ‘crash-for-cash’ opportunists and parents putting teenage children on their policies.

        Costs for young male drivers aged 17 to 22 have risen by an even higher 51 per cent to an average of £2,500, while young female drivers will pay on average £1,400, according to research by the AA. But putting a 19-year-old son on to an insurance policy for a three-year-old Ford Fiesta could cost a mother an extra £1,000 a year.

        Insurance industry bosses will be grilled by MPs on the Commons transport committee tomorrow over why premiums have rocketed in the past year. The annual increase was the largest since the AA Index started in 1994.

        Ian Crowder, of the AA, said that some parents were even guilty of ‘fronting’ – putting their children on to their policies as occasional drivers, when in fact the child may be the main driver.

        He said: ‘This is actually fraud and it is driving up premiums for everyone. Insurance companies are getting much better at detecting this.’

        Mr Crowder added: ‘There has also been an escalation in our compensation culture, imported from America. In the past, if you had a knock or a bump and were left with a sore neck, you would take a paracetamol. Now personal injury lawyers encourage you to sue.

        ‘Personal injury claim rates in Britain are four times those of any other European country – yet we have fewer accidents. Either we have excessively weak necks or people are responding to the personal injury claim lawyers.’

        Insurance companies have been paying out £123 in claims for every £100 taken in premiums over the last ten years, a situation which Mr Crowder said was ‘unsustainable’.

        A survey earlier this year showed that parents aged 41 to 55 bore the heaviest increases in the costs of comprehensive cover.

        Those aged 46 to 50 had seen massive rises in premiums – more than 60 per cent on average, according to research from Confused.com and EMB consultants. Motorists were furious about the revelation that costs had soared even higher this year when family budgets are already squeezed.

        Hugh Bladon, of the Association of British Drivers, said: ‘This is a double whammy which comes on top of petrol prices, which will go up even further when VAT goes up. British drivers will not buy the weasel words of the insurance industry. The rise in fraud and compensation claims alone cannot justify these rises.’

        Websites comparing insurance premium costs have also inadvertently led to a rise in fraud, it was claimed, because users can see how their premiums can be reduced by manipulating their answers in online assessments.

        Source : Mail Online

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        Qatar Insurance Services – the Qatar Financial Centre-based owner of Qatarlyst – has acquired London-based RI3K, a privately-held web-based insurance and reinsurance trading platform.

        The acquisition will not only accelerate the development of the QFC as a leading hub for reinsurance in the GCC region but also expand Qatarlyst’s international reach to London and beyond as well as enables its foray into other regional markets such as South East Asia.

        Read more…

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        Confused.com is set to unveil its latest advertisement featuring its animated logo Cara, singing the Queen classic ’Somebody to Love’, later this week.

        Voiced by West End star Louise Dearman and with animation produced by Hornet, the advert will feature living logo Cara singing the Queen anthem before being joined by a backing choir of animated happy customers who have used the comparison site.

        Mike Hoban, chief marketing officer at Confused.com, said: “Confused.com was the first site to offer price comparison. This ad will confirm Confused.com’s leadership position and remind customers why they can depend on us. With 18 million users, Confused.com is the people’s choice for comparison sites and we’re proud of this”

        The 30 second version of the advert will first on air on Sunday 7th November, followed by a 60 second version the following week during Sunday’s airing of X Factor (14th November), when performances from Take That, JLS and Westlife are expected to boost ratings. The new advert can be viewed at www.confused.com/cara or on the Cara Youtube channel.

        Launched in 2002, the comparison site generates over one million quotes per month. It has expanded its range of comparison products over the last couple of years to include car insurance, travel insurance, home insurance, pet insurance, van insurance, motorbike insurance, breakdown cover and energy, as well as financial services products including credit cards, loans, mortgages and life insurance.

        Source : Webwire

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        Liberty Mutual Group, a leading global property and casualty insurer with headquarters in the U.S. and 2009 revenues in excess of $31 Billion, and Videocon Industries Ltd., have announced their mutual intent to establish a Non-Life insurance joint venture company in India to provide personal and commercial insurance products through a range of distribution channels. The two companies intend to begin the licensing application process for the new company before the end of this year.

        Under the proposed agreement, Liberty Mutual Group, through a subsidiary, will initially hold up to a 26 percent stake in the new company and Videocon Industries Ltd. will hold at least 74 percent. When allowed to do so under applicable Indian law, the Liberty Mutual Group subsidiary will have the option to raise its stake in the joint venture.

        Upon approval by Indian regulators, the company will provide multi-line insurance underwriting capabilities to various distribution channels, with an emphasis on personal insurance products such as Motor, Health, Home and Personal Accident protection.

        Source : Frontier India

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        The pensions deficit of the 200 largest privately sponsored final salary schemes has reached its smallest level since September 2009 and stood at £69bn at the end of October according to Aon Hewitt, human capital consulting and outsourcing solutions firm. This compares to the £80bn deficit recorded on 30 September 2010.

        The main reason for this improvement and 2010 high for the Aon Hewitt 200 is due to buoyant equity markets whilst bond markets (the benchmark measure for valuing scheme liabilities) have remained relatively stable.

        Given the significance of a single date used for company accounting purposes, businesses which reported at 30 September have been unable to take advantage of this recent improvement in stock market performance. However, for those companies working to an accounting date of 31 December, market performance for the final two months of the year will be critical according to Aon Hewitt.

        Pension Schemes run a multitude of financial risks and, in the run-up to 31 December, finance directors will be sensitive to the key market drivers of the pension scheme deficit. In conjunction with pension scheme trustees, they should consciously choose which exposures to retain and whether or not to lock-in the gains their schemes have made.

        Given market volatility, however, the possibility of schemes returning to full funding, whilst unlikely, is not completely outside the realms of feasibility. Aon Hewitt say that for many finance directors, this year’s Christmas wish list will doubtless include either a jump in equity markets of 20%, a rise in corporate bond yields to 6% from their current levels of 5.15% or a decrease in projected long-term inflation to 2.5% from its current 3.35% – all of which would eliminate the deficits.

        Commenting on the latest figures, Marcus Hurd, principal & actuary at Aon Hewitt, said, “This good news has been a long time coming for many UK businesses whose final salary schemes have struggled with volatile market conditions in recent months and ongoing uncertainty. What will be telling is what businesses decide to do with this positive news and whether they put pressure on scheme trustees to adapt their investment strategies in the final two months of the year. Those with strong and more positive views of the market will be looking to capture further gains before the year is out, whilst others will be seeking to protect against losing gains that have been made on the year to date.

        “Unfortunately we fear that when they look in their Christmas stocking, the only present businesses can expect is volatility and maybe a pair of festive socks. ”

        Source : Aon Hewitt Press Release

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        The IFB today reports a further two individuals in the legal and medical professions have been charged as a part of an ongoing joint operation with City of London Police, General Medical Council and the Solicitors Regulation Authority.

        This follows on from the report released of the four professionals charged on 22 September in connection with the same scam. The two professionals are suspected to be involved in a multi-million pound fraud against the UK insurance industry.

        Persons charged end of October 2010:

        – Kevin UNDERWOOD 18/04/1977 Watford

        – Dr Vikas KAPOOR 03/03/1975 High Wycombe

        Both individuals were bailed to appear at City of London Magistrates on 6th December 2010.

        Detective Superintendent Bob Wishart, from the City of London Police’s Economic Crime Directorate, said: “We are taking this crime very seriously and we are continuing to work closely with the IFB and regulators in the industries to eradicate this type of criminal activity.”

        Glen Marr, Director, Insurance Fraud Bureau, comments: “We are continuing to develop relationships with professional organisations, trade bodies, Government and law enforcement agencies, to ramp up our counter-fraud activities. Rooting out and disrupting professionals who feature in any act of organised fraud against insurers is a priority for the IFB and will continue to be so.”

        Source : IFB Press Release

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        More than 80 percent of organizations in customer service, consumer industries are hiring the same amount or more workers this holiday season than last year, according to Aon Hewitt, the human capital consulting and outsourcing business of Aon Corporation (NYSE: AON).

        Aon Hewitt surveyed more than 70 leading organizations within the retail, hospitality and quick-serve restaurant industries and found that 55 percent are hiring the same amount of seasonal workers this year compared to last year and 29 percent are hiring more employees. Only 16 percent are bringing on fewer workers.

        Specifically, the study found 60 percent of respondents are hiring less than 100 employees companywide this holiday season, and of those organizations, 70 percent indicated this was the same amount as last year. Overall, 12 percent of respondents are hiring between 100 and 1,000 seasonal employees; 12 percent are hiring between 1,000 and 2,500; and 10 percent are hiring between 2,500 and 5,000. Only 5 percent are hiring greater than 5,000 employees companywide.

        “These figures show that retailers, fast foods restaurants, hotels and other hospitality-oriented companies are still feeling the affects of the economy and are being cautiously optimistic,” said Patrick Tomlinson, senior vice president with Aon Hewitt.  “The good news is most employers are still hiring during the holidays and almost 30 percent of respondents are hiring more employees.  While competition in this job market may be tough, there are opportunities for individuals with the right skills and availability to work in these consumer-facing, customer service roles.”

        The survey also revealed the top three hiring challenges for local store managers during the seasonal hiring push are: not being satisfied with the quality of hires; time wasted on unqualified candidates; and too much time spent on the hiring process. Therefore, the top three qualities store managers are looking for in job candidates this holiday season include customer service (64 percent), organizational brand fit (26 percent), and reliability (28 percent).

        “In today’s workforce and especially during the holiday season, time is a precious commodity, which is why it’s of utmost importance for organizations to have a recruitment strategy in place to hire the best candidates for the job,” said Lisa Bordinat, senior vice president with Aon Hewitt. “Having the right training programs for managers to learn the necessary skills to build a competent, productive workforce, and the proper tools to assess candidates for particular positions can make the difference in customer service, turnover and sales,” she added.

        The survey also found:

        – 72 percent are not expecting any changes in demographics for seasonal hires this year compared to last year, but 21 percent are anticipating hiring more part-time employees than last year.

        – 69 percent of organizations are planning to convert the same amount of seasonal workers to full-time status after the holidays as they did last year; 17 percent will move more to full-time status this year; and 14 percent will convert fewer employees than last year.

        – Employers rely on walk-ins and employee referrals over other recruiting sources to hire candidates in this economy.

        Source : Aon Hewitt Press Release

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        Swiss Re, one of the world’s biggest insurers reported on Thursday a near doubling of its third-quarter net profit, allowing it to repay crisis funding from US billionaire Warren Buffett.

        Swiss Re said in a statement that third-quarter net profit reached 618 million dollars (440 million euros), a 97-percent increase over the same period last year and well above analysts’ expectations.

        The company, a pillar of the global reinsurance industry, has gradually been rebuilding its capital base in a business turnaround since it shed the risky investment policy that left it trembling about two years ago.

        In 2008, Swiss Re posted its biggest-ever loss of 864 million Swiss francs forcing the group to turn to Wall Street sage Warren Buffett’s Berkshire Hathaway for fresh funds in the form of a 20-percent stake in the company.

        “Today we are pleased to report that our improved capital position allowed us to reach an agreement to repay Berkshire Hathaway, with no additional charge for bringing forward the repayment date.” Swiss Re chief executive Stefan Lippe said in a statement.

        Buffett’s investment vehicle brought in about 3.0 billion francs in February 2009, on top of its existing stake of 3.0 percent at the time, as Swiss Re sought to avoid a downgrade in its credit rating.

        Under the terms of the convertible capital instrument, it could have been turned into Swiss Re shares after three years at a price of 25 francs a share. The reinsurer’s share price reached 50.65 francs in early trading on Thursday, a rise of 6.7 percent.

        Swiss Re said interest charges and a 20-percent premium on the Berkshire Hathaway capital of about one billion dollars would be booked onto its accounts in the final quarter of 2010.

        The group’s core property and casualty business grew in the third quarter with operating income of 1.1 billion dollars, despite 160 million dollars in costs from September’s earthquake in New Zealand, the biggest to hit the country in almost 80 years.

        Swiss Re also described the natural catastrophe season — mainly Caribbean hurricanes and Pacific basin typhoons — as “benign” in terms of insured losses so far this year.

        The group said it would still hold “significant excess capital” after Berkshire Hathaway’s withdrawal.

        “We have delivered on our promises and successfully turned around the company’s performance,” said Lippe.

        Analysts polled by business news agency AWP had forecast an average net profit of 457 million dollars in the third quarter.

        “At first sight a very convincing set of figures from the reinsurer,” said analysts at Bank Wegelin on Thursday, while questioning their ustainability with volatile financial markets.

        Vontobel bank’s research team welcomed the payback despite some disappointment at life and health insurance results, saying it should allow Swiss Re to regain its status as a frontline “independent reinsurer.”

        Zurich, Nov 4, 2010 (AFP)

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        The British Insurance Brokers’ Association (BIBA) and the Association of Medical Insurance Intermediaries (AMII) have announced a new industry standard template for private medical insurance (PMI) authorisation forms which includes a new standard review period of 90 days. The launch came at the AMII Autumn conference in Gaydon, Warwickshire.

        The new form is designed to address issues of market uncertainty. It clearly establishes the options a customer has in dealing with a new intermediary or broker, and where a customer only wishes a new intermediary or broker to review their existing policy, sets out a clear timescale for the review period.  The new form and industry standard is the first initiative to be launched by the AMII/BIBA PMI Panel, a group that was established in 2009 to bring together insurers and intermediaries to discuss issues of common concern within the PMI industry.  The Panel currently includes representatives from nine of the UK’s PMI insurers (who between them represent more than 95% of the UK’s PMI market) as well as representation from BIBA’s Healthcare Focus Group and AMII.

        Peter Staddon, BIBA’s Head of Technical Services, said: “We have put these documents together to address market issues of uncertainty and customer confusion where some letters of authority have been mistaken for letters of appointment. We are pleased to put this new industry standard in place to help address these issues for our members.”

        Andrew Tripp, AMII’s Chairman, added: “With the AMII/BIBA PMI Panel we have established a forum which has allowed constructive dialogue between insurers and intermediaries within an environment of mutual respect.

        “This new standard form will improve consumer confidence in our profession and bring a level of uniformity across the market in how letters of authority or appointment are handled by insurers and intermediaries.  With the support of the UK’s leading PMI insurers, I am confident that this will be the first of several initiatives from the AMII/BIBA PMI Panel that will improve standards of service within the health insurance sector for intermediaries and our customers.”

        Source : BIBA Press Release

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        Finland’s biggest insurance group Sampo posted third-quarter net profits in line with expectations on Wednesday thanks to favourable currency movements and an appreciation of its Nordea Bank stake.

        The company’s net profit for the July-September period of €284m ($399m) showed a steady rise this year from the outcome in the two previous quarters, when it posted net profits of 245m 273m respectively.

        Compared to the outcome 12 months ago, Sampo’s third-quarter profit nearly doubled from 148 million, but the massive improvement was largely the result of a change in the status of its 20.5-stake in Nordic banking giant Nordea.

        At the beginning of 2010, Nordea’s status shifted from an equity investment to an associate company, immediately increasing Sampo’s reported profits.

        The company said its third-quarter improvement also reflected recovery at Sampo’s casualty and property insurance company If P&C. Sampo’s expectations for the rest of 2010 remain unchanged.

        With global recovery continuing as expected, Sampo said it saw “a good result for 2010 with a continuing good profitability.”

        If P&C insurance group’s parent company is based in Sweden, and serves the entire Nordic and Baltic areas as well as Russia. The price of shares in Sampo fell by 0.35 percent to €20.18 in midday trading on a slightly positive Helsinki stock exchange.

        Helsinki, Nov 3, 2010 (AFP)