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George Stobbart

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BIBA has received the following communication from the FSA:

In response to industry calls to look at the funding arrangements for the FSCS following the large scale defaults in 2008 and 2009, the FSA began an extensive review at the end of last year.

This focused on areas such as the composition of the classes, how much each class could be asked to pay annually, and whether the levy allocation should reflect an element of the degree of risk posed by an individual firm to the FSCS.

We have been very grateful for your involvement and helpful suggestions throughout this work. However, there have been a number of dependencies throughout this review, including European proposals and changes to the regulatory landscape with the creation of the PRA and CPMA, which may have potential consequences for the structure and funding of the FSCS – and with this in mind, we believe it would not be appropriate to consult on funding arrangements at this time, as we originally planned.

We will keep you updated about a new consultation date.

Steve White, BIBA Head of Compliance and Training, said: “The unfairness of the current FSCS funding model continues to be BIBA’s number one lobbying issue. We have now finalised a matching programme, which provides us with the name of each member’s local MP.

“Once the FSA’s consultation paper is issued, we will provide members with both a template response document plus a template letter to go to MPs. This will be the most appropriate time and way to get our key messages on this issue to the key influencers.”

In the meantime, BIBA continues to lobby hard on this important issue on our members’ behalf.

Source : BIBA Press Release

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Insurance firm Admiral has seen its shares rise strongly this morning on the back of a rise in turnover of more than 50% for the third quarter.

Group turnover at the Cardiff-based business, which employs 1,600 staff reached £446m for the quarter in a set of strong figures released to the London Stock Exchange.

The markets reacted strongly, with Admiral’s shares becoming the biggest riser in the FTSE in early trading. Figures released by the insurer showed that at the end of September Admiral provided insurance for 2.6 million vehicles, up 28% on the previous year.

The company is also expanding across Europe and saw turnover for its non-UK car insurance businesses rise by 87% in the third quarter when compared to the same period in 2009.

Henry Engelhardt, Admiral’s Chief Executive said: “I’m pleased to report that not much has changed since our 2010 interim results; the UK business remains the driving force of the Group’s success and we continue to develop our international businesses.
“Our UK car insurance operation continues to benefit from positive market conditions; we grew vehicle count by 28% year-on-year to over 2.3 million whilst also increasing premium rates.
“We have signed new quota share reinsurance deals for the UK for 2011 through to 2013.  These arrangements maintain Admiral’s use of both short and long-term reinsurance as part of its low risk, low capital approach to car insurance underwriting.”

Source : Wales Online

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Hiscox Insurance Company (Bermuda) Limited (“Hiscox Bermuda”), a subsidiary of the international specialist insurer Hiscox Ltd (LSE:HSX) has announced that the Florida Office of Insurance Regulation has agreed to a reduction in its collateral requirements. Hiscox Bermuda will now have to post collateral of 20% of loss reserves rather than 100%, as was previously required.

Florida’s insurance regulator has adopted a policy of lowering the level of collateral required for alien reinsurers who are highly-rated and financially sound. This will both encourage new entrants into the market and make it a more attractive location to underwrite reinsurance business for the global reinsurance community. Hiscox is the fourth organisation to secure these reduced requirements.

Krystalle Tobin, Chief Financial Officer, Hiscox Bermuda said: “We are very pleased with the decision of the Florida Office of Insurance Regulation. This is a good example of forward thinking by the State of Florida to reduce collateral requirements on foreign reinsurers thereby making doing business with Florida insurers more attractive. I am optimistic that other US states will follow Florida’s lead.”

Source : Hiscox Press Release

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Taking a look at attractive women while driving can be more damaging than you think.

There are a number of well known driving distractions that no doubt contribute to car accidents and insurance claims. These range from a variety of factors including talking on mobile phones, texting, pedestrian distractions etc.

However, there is one less publicised driving distraction – the affect the opposite sex has on our ability to keep it on the road.

A survey of 3000 people conducted by women’s car insurance specialist, Diamond has revealed that 15% of those surveyed have crashed their car or had a near miss after being distracted by someone they think is attractive. It also states that two-fifths of British motorists flirt with other drivers on a regular basis.

Who are the biggest flirts?

Diamond reveals that men are the biggest offenders of flirtatious behaviour, with three times more men than women admitting they flirt with drivers on a daily basis.

For the most part, a cheeky glance or a smile are common ways of flirting, however, the survey revealed that drivers tend to wink, wave or even honk their horn. As it turns out, men are more likely to use their horn whereas the fairer sex, are more likely to give the object of their attraction a smile.

Apparently, far more men (63%) than women (42%) would behave more courteously to another driver if they found them attractive. Also, three times more men than women have actually been involved in an accident because they have been distracted by an eye-catching member of the opposite sex.

Where drivers flirt the most

The study shows that drivers in Wales are the biggest flirts and motorists in East Anglia are most likely to honk the horn at someone they find attractive. As it turns out, drivers in the West Midlands have had the most crashes as a result of being distracted by someone they fancy.

So I have to ask, are revealing clothing and attractive women leading to car insurance claims?

Whether or not women have fewer car accidents than men all depends on which study or statistics that you are looking at but it has been proven that women’s accidents are generally less serious than men’s.

Many insurance industry experts agree with the theory that males tend to drive more aggressively than women, break the law more often and take risks when driving.

Insurers see women as a safer risk on the road, because statistically they are less likely to be involved in accidents.

Source : Beat That Quote

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The Philippines has been ranked as the third smallest in the East Asian region in terms of insurance premiums, better only than floor dwellers Macau and Brunei, according to Swiss Reinsurance (Swiss Re).

The Philippine market for life insurance is worth less than $2 billion (P57 billion) compared to Japan’s $560 billion. Macau’s life insurance market is worth $408 million and Brunei worth $128 billion.

Combining with the premiums earnings of the non-life insurance sector, total premiums written were a mere P75 billion or a decline of nearly three percent from the 2008 levels.

Philippine Prudential Life Insurance Co. (Prudential Life) president and chief executive officer Gregorio D. Mercado lamented Filipinos were not getting enough protection in the light of the worsening climate conditions, such as typhoon Ondoy.

The country’s penetration levels are also among the weakest in the region, versus the nearly 17 percent of Taiwan, the 11 percent of Hong Kong, the 10.4 percent of Korea, the nearly 10 percent of Japan, and the 6.8 percent of Singapore.

However, Mercado said that the improving economic conditions and the innovative efforts of the Philippine private insurers favors growth for the insurers and the insuring public.

“Prudential Life, for example, will be introducing two new products soon, while we have increased our participation in efforts to introduce the more affordable microinsurance to the greater population,” he added.

The country’s 34 life insurers have been forced to increase its capital base to cope with increased risks as well as expand its influences. But further consolidation is necessary to weed out the inefficient thus protecting the few policies holders.

Mercado, who is also the president of the prestigious Insurance Institute for Asia and the Pacific (IIAP), said that aside from increasing capital and resources, the industry is in talks with regulators for policy changes that will improve the quality of sales and financial agents.

Meanwhile, the Prudential Life reported gross premiums of P649.7 million in the first nine months of 2010 while claims paid amounted to P64.69 million. Policyholders stood at 1.5 million with policies-in-force are worth at over P51 billion.

Mercado said that they had a balance of individual and group insurance policyholders. And insured premiums ranged from P10,000 upwards.

“We have been selling microinsurance long before it was called as such,” he added.

Nonetheless, Prudential Life and other life insurers have joined rural banks and other microfinance institutions (MFIs) in selling microinsurance. The country’s financial sector has been doubling efforts to protect the population through various insurance products distributed by various institutions.

Source : Phil Star

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    ICELAND: The country’s most active volcano Grimsvotn may be about to erupt, scientists warned yesterday.

    Their concerns were fuelled by the torrents of water which began pouring from a glacier at its summit last Thursday, indicating that it is growing hotter.

    The warning signal is similar to 2004 when a five-day eruption took place.

    In April, millions of air travellers around the world were grounded when ash from Iceland’s Eyjafjallajokul volcano closed airspace over many European countries for days on end.

    Source : Morning Star

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    Ireland’s government unveiled a 400-million-euro (559-million-dollar) voluntary redundancy and early retirement scheme on Monday in a bid to shed staff from the health service.

    Health Minister Mary Harney said the scheme was aimed mainly at 17,000 management and administrative staff.

    “These are voluntary schemes,” Harney said in a statement. “It is a matter for each individual employee in the grades concerned to decide whether she/he wishes to avail of them.”

    Eligible workers have until November 19 to apply for redundancy and they must confirm their acceptance by November 30. They must retire or resign by

    December 30.

    Harney said that if up to 4,000 or 5,000 workers apply for the scheme it could generate savings of about 200 million euros a year from the payroll.

    The scheme is being offered as Ireland’s government draws up plans for a series of austerity budgets that will mean 15 billion euros in spending cuts and tax increases over the next four years.

    A protestor spattered Harney with red paint earlier on Monday when she launched a new suburban health centre in Dublin in protest at health cuts.

    “I said to her at the time, ‘You have the blood of the Irish men, women and children on your hands over the disastrous decisions you have made as health minister,'” Louise Minihan, a member of Dublin City Council representing the socialist republican party Eirigi, told RTE state radio.

    Dublin, Nov 1, 2010 (AFP)

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    The insurance arm of Royal Bank of Scotland is in detailed discussions with an outsourcing company over a deal that will create over 160 call centre jobs in Glasgow.

    The news will come as a surprise to observers, since it flies in the face of the announcement in August that RBS Insurance is to close two Glasgow offices with the cost of 440 jobs as part of a wider consolidation ahead of a probable flotation.

    It has nevertheless been confirmed by two separate sources that the banking giant has been in negotiations for most of the year with Vertex, the company that was unveiled several weeks ago as the recipient of an IT outsourcing deal for Tesco Bank’s mortgage operations in Glasgow that will bring 200 jobs.

    This was followed by an announcement by the Scottish Government last week that Vertex was to receive £1.7 million in regional selective assistance funding to create 368 jobs in the city – even though the group denied that such an announcement was imminent when it was contacted two weeks ago by the Sunday Herald. According to one well-placed source, negotiations would be “well down the line”.

    The deals involve 4 Atlantic Quay, a 10-storey office block that overlooks the north side of the Clyde in the city centre. Vertex was last week close to signing a 10-year leasing deal for the seventh floor to house Tesco. It also has an option to lease the eighth floor, also for Tesco, and has earmarked the ground and upper ground floors for a deal with RBS. It expects to reach an agreement – which would also be for 10 years – with the bank by early next year at the earliest.

    A further intriguing note is added by the fact that RBS is in the throes of vacating 6 Atlantic Quay, from where it has run its Direct Line operation for many years. Together with the closure of another office in St Vincent Street, it is retrenching the insurance operation to Cadogan Street, adding 200 to the existing staff to take the Glasgow total in the division to 1300.

    The moves are part of the wider closure of 14 offices around the UK, reducing the insurance portfolio to 13 offices after the European Union ordered the company to offload the division by 2013 as part of its investigation into state aid to the banks. RBS announced at the time that the decision would lead to the loss of 2000 jobs UK-wide.

    While Tesco is contracting Vertex because it does not have the IT infrastructure required to get permission from the Financial Services Authority to offer mortgages, it is not clear why RBS would be looking to outsource part of its operation. Other brands in the portfolio include Churchill, Privilege and Green Flag.

    A spokesman for RBS Insurance said: “Pitched against an ever-competitive market, we are constantly exploring options that will help us achieve greater cost efficiencies. However, we do not comment on speculation and have a commitment to our staff that we will always tell them first if we are announcing any changes that affect them.”

    A spokesman for Vertex said: “We don’t comment on speculation or rumour.”

    Source : Herald Scotland

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    Tropical Storm Tomas has triggered a $12.8 million hurricane coverage insurance payout in four eastern Caribbean states, the Caribbean Catastrophe Risk Insurance Facility (CCRIF) said.

    The disaster pooling facility, launched several years ago with the support of the World Bank and other donors, will pay insurance losses to Barbados, Saint Lucia, St Vincent and the Grenadines and Grenada.

    Preliminary calculations based on CCRIF’s modeled losses will see the facility pay out $8.5 million for Barbados, $3.2 million for Saint Lucia, and $1.1 million for St Vincent and the Grenadines.

    “Under the terms of CCRIF policies, a final loss and payout calculation will be undertaken on 13 November, with the National Hurricane Centre data available at that time used as input to the loss models. Payouts will be made as soon thereafter as possible,” CCRIF said in a statement.

    Tomas remains an active storm and could further impact CCRIF-covered countries, the facility said.

    Tomas was downgraded to a tropical storm from a Category 1 hurricane, but the National Hurricane Center said it may regain strength early this week as it passes south of the Dominican Republic and Haiti, where more than one million survivors of a Jan. 12 earthquake are living in sprawling tent camps.

    As Tomas churned over the open Caribbean sea, officials appealed to Haitians in tent camps to start evacuating, encouraging them to travel to the homes of family or friends.

    In January, CCRIF paid $8 million to Haiti after the devastating earthquake triggered the country’s earthquake coverage.

    Source : Reuters

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      China said Tuesday it had detected the nation’s first three cases of a multi-drug resistant superbug that surfaced in South Asia and has triggered a global health alert, state media reported.

      The nation’s Centre for Disease Control and Prevention said that bacteria carrying the NDM-1 gene were found in samples taken from two babies born in March in the northern region of Ningxia, the official Xinhua news agency said.

      New Delhi metallo-lactamase-1 was also discovered in another sample taken from an 83-year-old man in the southeastern province of Fujian who died of lung cancer in June, the report quoted Ni Daxin, an official at the CDC, as saying.

      The two babies have since recovered and are healthy, and the role of the drug-resistant superbug in the man’s death is still unclear, the report added.

      NDM-1 has caused global concern, and the World Health Organization has urged health authorities around the world to monitor the superbug, which was first identified last year in a Swedish patient admitted to hospital in India.

      It has since spread to Europe, and a Belgian man became the first reported fatality in August after he was infected by the bacteria in hospital in Pakistan where he was being treated for a leg injury following a car accident.

      He was repatriated to Belgium but died despite being administered colistin, a powerful antibiotic.

      Beijing, Oct 26, 2010 (AFP)

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      Canadian Dr. Kamran Khan looks at a digitised 3-D map of the world at the time of the World Cup last June showing the origins and number of air passengers flying into South Africa that month.

      It also shows disease outbreaks in those departure locales at exactly the same time: London, England, 29,454 passengers, mumps; Dakar, Senegal, 3,777 passengers, tuberculosis; Singapore, 5,331 passengers, foot and mouth disease.

      The tool, a product of Khan’s Bio.Diaspora project, seems obvious: putting together passenger data and health data to prepare for health emergencies in gatherings of hundreds of thousands or millions of people.

      But until recently, precise airline data could not be collated with disease outbreak information for planners of mass gatherings.

      At a three-day symposium on medicine and mass gatherings in the Saudi city of Jeddah this week, sponsored by British medical journal The Lancet, Khan’s project got lots of attention from professionals who have run everything from music festivals to the Olympics to the biggest annual gathering of all, the hajj pilgrimage, which brings more than two million Muslims to nearby Mecca.

      Mass gatherings — defined as any large event with the potential to overwhelm local health service capabilities — pose particularly complex security and health challenges, said Brian McCloskey, who is the leader in health planning for the 2012 London Olympics.

      “Small things become big things quickly… We have to respond to things at a much lower threshold,” he said.

      The hajj has long experienced health emergencies, from stampedes to outbreaks of meningitis.

      The pace of the ritual requirements of the four-day event, a once-in-a-lifetime duty for many Mulsims, raises the risks.

      “The majority of pilgrims are older, which increases the complications,” said Ziad al-Memish, assistant deputy minister at the Saudi health ministry, which co-sponsored the conference.

      Last year, the threat of the newly-surfaced H1N1 swine flu sparked a global mobilisation to limit outbreaks during the pilgrimage and prevent it from accelerating the disease’s spread worldwide.

      In the end, the flu blew itself out, with the help of vaccinations, monitoring and a less potent than expected virus. Less than 130 infections were detected during the event and only five pilgrims died.

      But it demonstrated the need to have detailed data on the origins and destinations of people attending the hajj and other such events.

      Working together with HealthMap, a well-established online disease early-alert system, Toronto-based Bio.diaspora aims to understand the air transport system as a conduit for disease.

      “In the span of just a few weeks, it can disseminate the diseases to places they didn’t exist,” said Khan.

      “We are for the first time putting the two pieces together… We actually can potentially confront infectious disease threats globally before they find their way into mass gatherings.”

      For events like the hajj, the researchers behind the Bio.diaspora project at St. Michael’s Hospital in Toronto are aiming to collate traveller origin and disease locations down to the district level.

      For instance, Khan says, for the hajj they would know better to focus on a disease outbreak in Indonesia if it was in predominantly Muslim East Java than if it was from largely Christian Irian Jaya.

      “We just want to prioritise where we put our energy,” he said.

      Mass gatherings are not only to be watched to defend against outbreaks; the hajj, for one, has been used as a way to advance protective vaccinations.

      Saudi authorities for years have required vaccinations for diseases such as polio and meningitis from visitors, giving other governments the impetus to institute such programmes, said David Heymann, head of the Centre on Global Health Security at Chatham House in Britain.

      The hajj has been “a very important contribution to the world eradication of polio,” he said.

      Another tool for mass event health managers is social media, said White House national security staff member Dr. David Marcozzi, who oversaw health issues for Barack Obama’s presidential inauguration in January 2009.

      His group monitored Twitter and other online media to keep up with how the two-million strong crowd coped with the sub-freezing temperatures, at the height of the flu season.

      The new media allowed them to spot potential problems by location in the huge crowd in downtown Washington DC.

      “We were monitoring the population on what were their concerns and challenges,” he said.

      Jeddah, Saudi Arabia, Oct 28, 2010 (AFP)

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        A major storm that slammed the Midwest continued to cause problems on Wednesday as thunderstorms and strong winds reached the East Coast.

        After leaving a path of destruction in several states on Tuesday, the storm took snow to North Dakota on Wednesday and led to tornado warnings in Maryland and North Carolina. Hundreds of flights were canceled or delayed in Atlanta, Chicago and Minneapolis Wednesday.

        The storm produced strong winds with some gusts up to 77 miles per hour, according to the National Weather Service. At least 28 tornados were reported in several states, officials said.

        “This is a very powerful storm,” said James Peronto, a spokesman for the weather service.

        On Wednesday, residents of Bismarck, N. D., were facing blizzard conditions. Traffic moved slowly because of icy roads, said Gloria David, a spokeswoman for the city.

        “We have wind most of the time, but we don’t usually have wind gusts of 60 miles per hour ripping trees out,” Ms. David said.

        Several schools were closed in Minnesota on Wednesday because of storm-related power failures. In Duluth, Minn., all public and private schools were closed after the city received 7.4 inches of snow, officials said.

        The storm was expected to weaken by Thursday as it continued to move northeast into Canada. At least 200 flights were canceled at O’Hare International Airport in Chicago on Wednesday after more than 500 flights were canceled there on Tuesday.

        As a cold front moved east, it brought storms to the Southeast. Tornado watches were issued on Wednesday in Alabama, Georgia, Maryland, North Carolina, South Carolina and Virginia.

        Meanwhile, many communities in the Midwest were still recovering from the widespread damage the storm caused on Tuesday. At least 200,000 customers lost power because of fallen trees and power lines, officials said.

        About two dozen people were injured during the tornados and intense thunderstorms, according to the weather service. A woman was injured in Lindenhurst, Ill., when a tree branch crashed into her car and impaled her.

        At least 11 people were injured and several homes were damaged in Lincoln County, N. C., officials said. Two others were injured in Racine County, Wis., when part of a roof was torn from a tractor factory.

        The storm had one of the lowest pressure readings ever reported in the mainland United States, according to the weather service. Lower-pressure storms create more problems because they have stronger winds, officials said.

        Source : The New York Times

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        New York is still such a noisy city that its inhabitants could suffer from significant hearing loss in coming years, a study made public Wednesday has found.

        Presented at a conference of the New York Academy of Medicine, the study found that 98 percent of noise measurements taken were at levels harmful to human health.

        “Ninety-eight percent of the noise levels of public spaces in NYC exceeded recommended community noise levels. Even oases of quiet had high noise levels,” the study said.

        In 60 sites in Manhattan known for high noise levels (above 70 decibels), experts sampled noise levels every 10 minutes from 9 am to 5 pm on week days.

        Using the measurements, they made a sound map of Manhattan that pin-points the city’s noisiest locations, including Times Square, Broadway and some areas of the Upper East Side.

        New York, Oct 27, 2010 (AFP)

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        The Healthcare Focus Group of the British Insurance Brokers’ Association (BIBA) is to set up a working group to tackle the position of personal tax around Private Medical Insurance (PMI).

        The decision was made at the recent committee meeting of the Healthcare Focus group to review tax issues affecting PMI.  Issues to be reviewed by the group include tax concessions for the over 60s and how the removal of concessions have impacted sales of PMI.  Once the group has completed its review, they will raise the issues with relevant industry and political stakeholders.

        Peter Staddon, BIBA’s Head of Technical Services, said: “The last government withdrew the over 60’s tax concession and we saw a dramatic reduction in the sales of PMI cover. With the increase in insurance premium tax (IPT) due in a little over 10 weeks this could again have an affect on the purchasing of cover. As a committee we are keen to investigate if tax concessions are a possible solution to encourage future sales.”

        Stuart Scullion, Marketing Director of Private Health Partnership, who will lead the sub Group, said: “We will be looking at both the individual and also the SME tax implications”. Scullion who has more than 30 years in the industry continued: “The Insurance sector provides great support which relieves some of the pressures in the NHS. There has never been a better time to express to Treasury the important benefits of health insurance protection to the customer that insurance brokers can bring.”

        Source : BIBA Press Release

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        Dr Simon Day, researcher at the Aon Benfield UCL Hazard Research Centre, explains the science behind the Indonesian earthquake and tsunami.

        – Small earthquake in comparison to great earthquakes in this region in 1797 and 1833

        – High potential for a mega-earthquake in the city of Padang

        “The magnitude 7.7 Mentawai Islands earthquake of 25 October 2010 was a miniature version of the giant subduction zone thrust earthquakes that have struck in the past along the plate boundary between the Indo-Australian Plate (which includes the seafloor below the Indian Ocean) and the Eurasian Plate (which includes the Island of Sumatra).

        Giant earthquakes have notably hit this region in 1797 and 1833, the latter being 100 times larger than this week’s. These rupture the subduction zone plate boundary over a much wider area including areas closer to Sumatra, and therefore present a much greater threat to coastal cities such as Padang and Bengkulu through direct seismic shaking as well as tsunamis, as outlined in the Aon Benfield UCL Hazard Research Centre report published earlier this year, “When the Earth Moves: Mega-Earthquakes to Come”.

        These earthquakes involve slippage of the Indian Ocean crust beneath Sumatra and also the Mentawai Islands, which owe their existence to the deformation and uplift of the overriding plate above the subduction zone. The 25 October 2010 earthquake ruptured a small section of this subduction zone at a depth of around 20 km beneath the Pagai Islands at the southern end of the Mentawai Islands group.

        The potential for a mega-earthquake (and resulting tsunami) threatening the city of Padang in particular remains high. This is because the area and likely amount of slip on the rupture zone was small so will not have relieved a significant amount of the accumulated stress on the plate boundary.

        Despite the small size of the 25 October earthquake compared to the giant earthquakes, its thrust geometry and shallow depth meant that it had the potential to generate a significant tsunami. Initial reports indicate noticeable tsunami waves up to 0.4 m high in Padang and Bengkulu on the mainland of Sumatra within the first hour after the earthquake. A tsunami watch for coastal areas on Sumatra was issued by the Pacific Tsunami Warning Centre seven minutes after the earthquake but was cancelled after it became apparent that the tsunami was small at large distances from the source.

        However, major tsunami damage did occur in the Pagai Islands, much closer to the earthquake source, where incomplete reports indicate that tsunami waves were up to 10 times higher. The waves struck these islands within 15 minutes of the earthquake, underlining the extremely high vulnerability of coasts within the source regions of ‘tsunamigenic’ earthquakes that are capable of generating tsunamis.

        The short time delay between the earthquake and the arrival of the tsunami in the Pagai Islands highlights the need for a high level of tsunami awareness amongst both resident and tourist populations in such areas, and a willingness to evacuate away from the shoreline in response to felt seismic shaking and initial sea level drawdowns.”

        Source : Aon Benfield Press Release

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        Comparison website Confused.com has today announced the launch of a new credit card checker tool, which will allow customers to check the likelihood of being accepted for a specific credit card before making a full application.  The unique service is the first available in the UK of its kind, with other ‘searches’ providing results for a selected group of cards, rather than the specific card a customer may be interested in.

        The new tool, which is available for use from 22nd October, will benefit consumers who already know which specific credit card they would like to apply for, but who are concerned about the impact of a failed application on their credit file.  The tool, which is completely free to use, performs an administrative check of the customer’s credit profile, which does not leave a detrimental search footprint, to assess how likely they are to be accepted, providing a likelihood acceptance out of ten.

        The new tool complements Confused.com’s existing Card Matcher tool, which works in a similar way, displaying multiple results to customers who know what they want to use the card for, but who are unsure of precisely which specific card best fits their profile and needs.

        Chris Griffiths, head of credit cards at Confused.com, said: “With such a wide range of credit cards available on the market, it can be understandably difficult to pick the right card without any help.  Our new Card Checker tool allows customers to see how likely they are to be accepted before they commit to making a full application, which if declined could have a detrimental effect on applications in the future.

        “By using our tool customers can get an idea on the right products for them, without risking damaging their credit profile.  Where customers find they are unlikely to be accepted for their first choice the tool will display more suitable alternatives.  Where a card with more attractive rates or features, which the customer is eligible for, is available it will also be displayed.

        “Whether considering a new card to spread the cost of Christmas purchases or planning to take advantage of a low rate or long 0% balance transfer period, using our free tool can help customers in making the final decision of which card to opt for.”

        Source : Confused.com Press Release

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        The business agenda has been dominated by the latest developments in the regulation of banks. From Basel III to new European banking regulations on capital, much has been said on how much capital banks should hold.

        Much less focus has been on Solvency II, the European Directive which will dramatically change the way insurers are regulated, due to be implemented at the end of 2012. This is, of course, to be expected. Attention will always focus on where the greatest problems occur. However, there is much to be learned in both the principles and development of Solvency II for all regulators and politicians.

        Indeed the crisis has reinforced the key messages of Solvency II – that by itself capital cannot protect against all risks and all negative outcomes. At the heart of Solvency II is the message that if you understand and manage your risks you can run your business effectively and receive the benefits of a lower capital requirement. This will ultimately benefit consumers.

        However, there is a very real risk that the ripple from the banking crisis is still creating difficult waves across the whole financial services sector. I see two major risks. First, that insurers will be over-regulated, either because regulators will insist on gold-plating requirements, or because of inappropriate read-across from the banks. The second, connected risk, is that consumers will simply lose faith in the products we provide. This is not because they believe insurers will fail, but because we are forced by Solvency II to change the products we provide to such a degree that they no longer meet the needs customers at a price they can afford. The ABI is working with the Treasury and European partners to push back hard on this. We cannot let the fallout from banking regulatory failures drive insurance regulation.

        There is still much to play for. Recognition of the benefits of holding assets over the long term (the liquidity premium), how Solvency II recognises subsidiaries of European insurers based abroad and how groups are treated are some of the main areas of focus. There is time to solve these and I remain optimistic we will – with the support and cooperation of the Commission, governments and European insurance regulators.

        As an industry we have been working on Solvency II since 2000. It is already rightly recognised as potentially a leading global standard for prudential regulation. It is far in advance of the Basel II requirements and already includes many of the tools needed to address the risks identified following the financial crisis. It is attracting attention from around the world, as other countries realise the advantages it will give to European insurers.

        The danger is that insurance regulators read across from what is happening in the banking world and try to squeeze in banking rules for insurers. Solvency II was designed to go beyond this. Despite the crisis, we must keep on that road for the benefit of insurers and consumers alike.

        Maggie Craig is acting director general, Association of British Insurers.

        Source : City A.M.

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        Allianz Retail and BMW Financial Services have strengthened their offering to BMW and MINI drivers by providing a customised Tyre Insurance product.

        BMW and MINI Tyre Insurance helps pay towards the unexpected repair or replacement costs of tyres damaged either accidentally or by a malicious act, regardless of annual mileage.

        This new solution follows the Income Protection and Shortfall Insurance products that Allianz already offer exclusively to BMW and MINI customers.

        Simon Davey, automotive partnership manager for Allianz Retail, said: “This product is a totally new development for Allianz Retail and has been created to meet the needs BMW Financial Services and its customers.

        “We are constantly looking for ways to develop innovative insurance solutions which our business partners can offer to their customers.”

        A BMW Financial Services spokesperson added: “Allianz has already demonstrated a clear understanding of the BMW brand and shown that they can deliver on their promises.  This is why we are pleased to continue working with Allianz to offer our customers the best possible insurance packages.”

        Source : Allianz Press release

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        The final shortlist for the inaugural Underwriting Service Awards 2010 have now been released – with the eventual winners due to be revealed at a special awards dinner in London on 17 November.

        The Underwriting Service Awards 2010 will reveal and celebrate the insurers with the best-performing underwriting team in each line of business, as well as highlighting the overall underwriting professional and underwriting team of the year. The shortlists and winners are based on the findings of in-depth research by Post’s business unit Insurance 360 which surveyed the broking community.

        Final three shortlists:

        Major Commercial Combined (£10,000+premium) Underwriting Team of the Year

        – Ace
        – Allianz
        – Catlin
        – Hiscox
        – QBE

        Financial & Professional Underwriting Team of the Year

        – Beazley
        – Catlin
        – Chubb
        – HCC International
        – Novae

        General Liability Underwriting Team of the Year

        – Catlin
        – Chartis
        – Hiscox


        Source : Post Online

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        Aegis Group plc (“Aegis”) welcomes the announcement made today by Mitchell Communication Group (“Mitchell”) confirming that Mitchell Shareholders approved the scheme of arrangement in connection with Aegis’ acquisition of Mitchell (“Scheme”). Details of the voting are set out in Mitchell’s announcement released on ASX earlier today.

        A court hearing for the approval of the Scheme is expected to be held on Friday, 29 October 2010. If the Court approves the Scheme, it is anticipated that the Implementation Date for the Scheme will be Wednesday, 17 November 2010.

        Source : egis Press Release