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George Stobbart

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With the news that overseas call centres continue to lead the way in customer frustrations, travellers should consider customer service, as well as price and level of cover, when choosing a travel insurance policy.

According to a nationwide poll of 2,000 consumers conducted in November by YouGov on behalf of KC (Kingston Communications), the industry leading supplier of telecommunications services, more than half (54%) were most frustrated by overseas call centre staff that did not understand their problem, followed by the need to navigate automated responses (22%) and the inability for customer support staff to provide assistance beyond their script (12%).

For example, as a well established travel insurance provider to UK customers, Go Travel Insurance prides itself on having a UK based call centre that is open 7 days a week. Go also handles all of its claims in-house with a dedicated claims team, providing a consistent end to end service for its customers.

A spokesperson for Go Travel Insurance said “Go is not just a faceless website with an overseas call centre. We look after our customers from start to finish and are very proud of the service we provide. 78% of settled claims receive their settlement cheque within 5 working days of submitting their first communication, while the process can take months with some other insurers.”

“Customers need to consider the level of service they are going to receive if they do need to make a claim, as well as price and level of cover. When you take into account all these elements Go offers exceptionally good value for money.”

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    Broker insurer MMA Insurance has re-launched its broker e-trading facility Broker Online and its public website: www.mma-insurance.com

    The updated Broker Online facility retains the highly rated functionality and features but with a fresh design and easier navigation.

    Commenting on the re-launch Derek Plummer, Commercial Director said: “Broker Online is one of the fastest and most effective ways to trade SME business but it’s essential that we constantly develop and improve the technology. We’ve listened to what our brokers have told us about the site and we’ve made the changes they’ve asked for. Some of the revised benefits for brokers include: full cycle capability on all products including adjustments and renewals for all business placed online, instant cover for small commercial packages and easy online access to all policy documentation.

    “This re-launch includes our customer facing website. Customers can use the site to find a local broker from a searchable database of 3,000 insurance intermediaries and as a comprehensive source of claims assistance. We have also given our online claims notification system more prominence. This service, for residential and property claims, has proven to be popular with customers, with online notification of claims increasing by 50% during the very busy last quarter of 2009”.

    The re-launched website can be found at www.mma-insurance.com. Brokers wanting to access Broker Online then click on the Broker Online icon on the home page.

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      Millions of Britons will be forced to fork out for hefty snow-related repairs to their homes from their own pockets, according to a new report.

      The cost of last month’s big freeze on households topped £2 billion – and millions of homes were uninsured.

      An estimated 5.9 million homes were hit with average repair bills of £343, a report by a leading home insurance company, revealed. Its research suggested that just one in five of those households, or 21%, were insured for the emergency.

      That means a total of 4,779,000 households were uninsured – and a worrying 472,000 of those claim they cannot afford repair costs.

      Boiler repair call-outs hit a massive 2.2 million households during the big freeze – average bills were £351. That headline figure represented almost one in 10 UK households (9%), and proved to be the most common problem.

      The most costly repair was for roof damage, hitting a total of 999,000 (4%) households and costing £546 on average to put right.

      A spokesperson for the leading home insurance firm said: “Having to cope without hot water and heating, or suffering a burst pipe or leaking roof, is distressing enough but for many people receiving the repair bill is the biggest upset.

      “We’ve found around six in 10 people are taking out home insurance so that they are covered the next time they face an emergency of this kind.”

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      Reinsurer underwriting results were better than expected due to the unusually low level of natural catastrophes in the third quarter according to the last Aon Benfield report.

      Reserve releases from prior accident years also aided results.  Investment income suffered due to lower interest rates and lower yields on comparatively more conservative and shorter term investment portfolios of reinsurers in the wake of a very uncertain investment valuation environment.

      Capital benefited greatly from the material advances in fixed income securities valuations, fueled by renewed confidence in credit quality and improving economic outlooks.  Equity market recoveries also contributed to the recovery of reinsurer capital.

      At September 30, 2009, ABA shareholders’ funds had increased 21% on year end to USD152bn, close to the USD156bn reported at the end of 2007. The main contributors were net income of USD12.7bn (9M 2008: USD4.3bn) and USD12bn of unrealized appreciation of investments.

      Bryon Ehrhart, Chief Executive Officer of Aon Benfield Analytics, said: “Reinsurers are very well capitalized and well positioned to serve cedents through a less anxious renewal season for January 2010 business.  Reinsurer balance sheets were mildly impacted by the recent credit and liquidity crisis.  The prudent risk management practices of reinsurers allowed the orderly renewal of every core reinsurance program in 2009.  Good fortune through the 2009 hurricane season combined with improved investment valuations to return reinsurers’ capital to near peak, pre-crisis levels through the first nine months of 2009.”

      The ABA combined ratio for 9M 2009 was 91.2%. The absence of large catastrophe losses and lower attritional losses were the drivers behind a 5.7 percentage point (pp) improvement in the loss ratio which dropped to 62.2%.

      Meanwhile, the effect of prior year reserve releases was almost unchanged, providing a 3.2pp benefit. The expense ratio also remained broadly stable at 29.0%, and all but one company in the survey group reported a combined ratio of less than 100%.

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      Generally, firms selling insurance and those providing insurance cover have to be regulated by us, or be the agent of a regulated firm.

      There are some exceptions, for example the sale of extended warranties on non-motor goods (such as on electrical goods) where the person selling the insurance is also providing the goods.

      You can buy insurance directly from insurers over the phone, internet or by mail, and also from banks, building societies, insurance or mortgage brokers, financial advisers, or supermarkets.

      Comparison websites will ask you several questions and then provide you with quotes from various brokers and insurers. None of the websites cover the entire market, and some larger insurers are not represented on any of the websites, so you may wish to contact them directly. The comparison website should contain
      a list of the brokers and insurers represented on its panels.

      Cooling-off period

      You have the right to change your mind and have your money back within a certain period (usually 14 or 30 days) after arranging any insurance contract.

      Information you’ll be given

      If you decide to buy through a broker, they will give you details about the service they are offering you.

      This will tell you:

      • whether they’re offering you advice or just information about the product;
      • whose insurance policies they offer (it may be from one company or many); and
      • how much you’ll have to pay for the service.

      Once you’ve discussed what you need and answered the questions you have been asked about yourself and what you want to insure, you will be given key
      policy information.

      Even if you decide to buy insurance direct from an insurer, you will still be given this information.

      This information will set out what the policy does and does not cover, any limits or restrictions, and any other important features you need to know before you make up your mind.

      Make sure you get this information, and that you read and understand it. Ask the provider or insurance company to explain anything you don’t understand. You can also use this information to shop around and compare like with like.

      Disclose the full facts

      ‘Material’ facts are facts that you ought reasonably to know are relevant to the insurer’s decision whether to offer you insurance cover and at what price, so they must be disclosed. This information will form the basis of a contract between you and the insurer.

      If you are asked a specific question, you must respond honestly, and it is no defence to say that you didn’t realise that the fact was material. If you don’t disclose material facts, your policy may be invalidated and you won’t be able to make a claim.

      So make sure you disclose everything, however irrelevant it may seem at the time. Also check with your insurer if and when you need to tell them of changes in circumstances.

      Don’t under-insure

      The average home now contains over £40,000 in clothes, kitchen gadgets, electronics and furniture. It is up to you to insure accurately. If you underinsure
      your goods – so you insure your contents for £20,000 when they are worth £40,000 – the insurer would only be obliged to pay out up to £10,000
      if you made a claim under this policy (ie half of what you claim for).

      Check the exclusions

      The most common reason for insurers to reject a claim is because the policy didn’t cover what people thought it did. Check the policy documents to find out what is and isn’t covered.

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      The Federal Reserve expects to get full repayment from its 2008 emergency loans to rescue insurance giant AIG and back the purchase of brokerage Bear Stearns, chairman Ben Bernanke said Wednesday.

      Bernanke, in remarks prepared for delivery to a congressional hearing, said the two bailouts left the Fed holding loans of around 116 billion dollars, or around five percent of the central bank’s balance sheet.

      “The Federal Reserve expects these exposures to decline gradually over time,” Bernanke said. “The (Federal Reserve) Board continues to anticipate that the Federal Reserve will ultimately incur no loss on these loans as well.”

      The Fed provided an emergency loan of 85 billion dollars to AIG to stave off a potentially calamitous collapse in September 2008. That was the first stage of a government bailout worth more than 180 billion dollars.

      For Bear Stearns, the Fed backed 30 billion dollars in troubled assets to help pave the way for a purchase of the troubled Wall Street firm in March 2008 by JPMorgan Chase.

      Bernanke noted that the Fed acted in these two cases “to help avoid the disorderly failure of two systemically important financial institutions” despite the lack of a legal framework.

      “To preclude any future need for the Federal Reserve to lend in similar circumstances, we strongly support the establishment of a statutory regime for the safe resolution of failing, systemically important nonbank financial institutions.”

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        AXA Wealth is marking a decade of success as the Elite fund of funds range celebrates its 10th birthday.

        Launched in 1999 with three funds: Winterthur Elite Cautious Managed, Winterthur Elite Balanced Managed and Winterthur Elite Stockmarket Managed, the Elite range was launched in response to recognition amongst advisers that outsourcing investment management to an expert could offer many benefits to clients.

        Now the range has been extended to 12 funds. The three original Elite funds – Elite Balanced Managed, Elite Cautious Managed and Elite Stockmarket Managed -have outperformed their respective sectors, on a cumulative basis over the 10 year period, since launch. Furthermore, the Cautious and Balanced Funds have achieved cumulative first quartile performance since 1999.

        Part of the Elite range’s appeal is its diversity; each Managed fund has a different risk profile and the Elite Sector Funds offer the opportunity to invest in a variety of markets and countries. The Elite funds (excluding the most cautious Elite Funds) aim to outperform their respective sectors through well-diversified, carefully managed, risk-aware portfolios

        In volatile economic conditions where investors may wish to limit their exposure to the stockmarket, or for clients nearing retirement searching for a more cautious approach to equity investment, funds in the range such as the Extra Cautious and Extra Defensive Funds may provide an appealing investment option.

        The Elite funds are constructed by determining a complementary mix of funds. Constituent funds are selected based on investment style, size bias and existing holdings, and the strengths of each fund manager.

        All investment decisions affecting the Elite funds are published in a ‘fund selection history’ document**. AXA Wealth believes that making the Elite range’s track record easily accessible helps to reassure investors about the way funds are being managed.

        David Thompson, managing director of investments and distribution AXA Wealth, says:“The success of the Elite range lies in some part in the fact that it continues to be managed in the same way since launch, aiming to avoid risk, disclosing investment decisions and evolving to meet investors’ needs over the long term. Whilst the industry has seen many changes over the last decade, the Elite funds have remained consistently successful.”

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        Brit Insurance today announces a proposed consolidation of its share capital, whereby every four existing ordinary shares of EUR1.00 will be consolidated into a new ordinary share of EUR4.00 (the ‘ Share Consolidation ‘).

        The Share Consolidation, referred to in a prospectus and circular published in November 2009 in connection with the establishment of Brit Insurance as the new holding company of the Brit Insurance group, is subject to shareholder approval.

        A circular will be published today, setting out further details of the Share Consolidation and convening a general meeting to seek the approval of Brit Insurance shareholders to the Share Consolidation.

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        US Health Secretary Kathleen Sebelius on Monday called on a health insurance company to publicly explain why it raised premiums for some customers by 39 percent.

        “With so many families already affected by rising costs, I was very disturbed to learn through media accounts that Anthem Blue Cross plans to raise premiums for its California customers by as much as 39 percent,” or 15 times faster than inflation, Sebelius said in a letter that was faxed to the insurer.

        The rate hikes were “even more difficult to understand” in the light of soaring profits at Anthem Blue Cross’s parent company, WellPoint Incorporated, Sebelius said.

        Wellpoint earned 2.7 billion dollars in the last quarter of 2009, she said, calling on the insurance company to “provide a detailed justification” for the increase.

        “As we continue the health insurance reform debate in Washington, this announcement reminds us that too many Americans can be left with unaffordable insurance each time the rates or rules change in the private market,” Sebelius said.

        Last month, plans to reform the US health care system hit a wall when the election of a Republican to the Senate Massachusetts seat long held by Ted Kennedy robbed the Democrats of their 60-vote supermajority in the Senate.

        President Barack Obama vowed during his campaign for the White House to reform health care and make coverage accessible to the 47 million Americans who currently do not have any, and to make coverage less of a financial drain on US workers.

        Last year, the insurance industry issued a report saying that health care reforms would lead to significantly higher insurance premiums. Obama dismissed the report as “bogus”.

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        The Insurance Fraud Bureau (IFB) has seen website figures and Cheatline reports figures rise significantly during 2009 showing public awareness around the crash for cash phenomena and organised insurance fraud has been raised. New Chairman and industry expert David Neave is also committed to building on this success further by increasing the media profile of the Bureau to strengthen future initiatives and secure further public awareness.

        Since its launch in July 2006, the Bureau has been committed to educating the public and industry alike on the effect of organised insurance fraud on premiums, margins and even human lives.  The results of its collaboration with Police forces across the UK in dealing with the disturbing crash for cash phenomenon have been publicised regularly in national, regional and trade publications, as well as on TV and radio. The most recent high profile operation to be successfully concluded at the end of October in Manchester gained much coverage in national, regional and trade publications. As a result of media exposure, visitors to the IFB website on the day the case concluded comparing to previous 24 hours increased by 56%. The Cheatline also saw record months of reports in October and November with a total of 422 reports of information on insurance fraud being received, over 50% of these reports came in using the Cheatline online facility. Interest in the IFB Consumer Advice service, for example, has grown significantly, with a 483% increase in October 2009 during the conclusion of the operation.

        The IFB has worked hard to raise general awareness and understanding of the Bureau’s goals and the role that the general public can play in helping to combat organised criminal activity.  These labours have certainly paid off – overall, there has been a 173% increase in the number of visitors to the IFB website in 2009. Visits to the ‘online Cheatline’ overall increased by 189% during 2009 comparing December 2008 to December 2009 with approximately 10% going on to lodge a report.

        The Cheatline has received 3585 reports since the IFB took over responsibility for call handling in 2006 (originally only a telephone service, with an online facility being introduced in November 2008).  1859 reports were received between January – December 2009 – nearly an incredible 8-fold increase compared to August 2005 – July 2006 (last 12 months before IFB took over).

        IFB Board member Richard Davies commented: “We have been delighted with the increased media interest in the results of our collaborative initiatives with various bodies and associations.  We appreciate that our efforts will only be fully realised by educating the public and the industry alike of the scale of the harm that fraudsters can inflict.  Media focus on the human element of insurance fraud is one of our strongest allies and we intend to work hard to ensure that the Bureau remains in the media spotlight.”

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          Lloyd’s, the world’s leading specialist insurance market, today released its 2010 – 2012 Strategy after a detailed review of the market’s position which involved over 50 managing agents, brokers and market associations.

          Maintaining and developing the attractiveness of the Lloyd’s market is central to the strategy, which includes working to ensure that London remains a competitive financial services centre, continuing work to improve the current operating environment and ensuring that the evolving regulatory landscape does not damage Lloyd’s position.

          Lloyd’s CEO, Richard Ward, said the strategy reinforced the strong position the market is in: “This is about evolution, not revolution. We have stood up well in the face of the worst recession since the great depression, and we don’t see a huge necessity to change direction. The Lloyd’s subscription model backed by a layer of mutual security is serving us and our customers well, as is our location in the heart of the London insurance market.

          “While we are in good shape, we cannot afford to be complacent. In 2010 we will be absolutely focused on underwriting and risk management and in preparing for the introduction of Solvency II ” Dr Ward said.

          Other priorities for 2010 include: increasing the adoption and use of The Exchange; transforming the way the Lloyd’s market handles claims; and improving access to business through working with brokers and coverholders.

          “Lloyd’s is a broker market; they are central to the market’s ongoing success. We also need to work to improve and streamline how coverholders access the market,” Dr Ward said.

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          US lawmakers unveiled legislation Thursday aimed at helping Holocaust survivors or heirs of Nazi victims sue for insurance claims, estimated to run in the hundreds of billions of dollars, in US courts.

          Republican Representative Ileana Ros-Lehtinen’s bill seeks to compel insurance companies, who often have the sole proof of the existence of Holocaust-era policies, to disclose the names of the insured.

          “For too long the insurance companies have had the upper hand, denying Holocaust survivors and their families their rights,” said Ros-Lehtinen, the top Republican on the House Foreign Affairs Committee.

          The Nazi regime in Germany did not issue death certificates to prisoners brought to the death camps, and police documents or personal records were often confiscated and destroyed.

          The bill would validate state laws on the issue, removing potential federal roadblocks to lawsuits, and subjecting insurers who refuse to whatever punishment individual states decide.

          “Insurance companies must disclose the names of policyholders to ensure that just compensation is received. They must not be allowed to hide behind a veil of secrecy any longer,” said Ros-Lehtinen.

          With AFP, Washington, Feb 4, 2010

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          Catlin Group Limited announced today that Martin Zingg has been appointed chief investment officer of the Catlin Group with effect from 1 March.  He will be based in Catlin’s office in Zurich, Switzerland.

          As chief investment officer, Martin Zingg will be responsible for investment strategy and the management of Catlin’s US$7 billion in cash and investments.  He will report to Benjamin Meuli, Catlin’s chief financial officer.

          Martin Zingg has held several investment management and financial positions at Swiss Reinsurance Company, which he joined in September 1995.  He was most recently managing director-asset management and head of private equity in Zurich, responsible for Swiss Re’s alternative investments and for managing the company’s private equity investment portfolio and relationships.  He has held other investment-related positions at Swiss Re in Zurich, Hong Kong and San Francisco.  Before joining Swiss Re, he held banking positions at UBS in Zurich.

          Catlin Chief Financial Officer Benjamin Meuli said: “I am pleased to announce the appointment of Martin Zingg as Catlin’s chief investment officer.  Martin has acquired a wealth of investment experience and knowledge during his 15 years with Swiss Re, and I believe that he is the ideal person to lead Catlin’s investment management operations.”

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          Insurer Aviva reported weaker 2009 life sales, held back by tough economic conditions in the UK, and said its general insurance arm had been hit by hefty weather claims in the final quarter.

          • Life and pensions sales of £8 billion in the fourth quarter, up 21% on the third quarter of 2009
          • Strong regional performance with life and pension sales up 17% in the UK, 39% in Aviva Europe* and 45% in the US compared with the third quarter of 2009stre
          • Sales volumes managed to ensure capital efficiency and profitability
          • Worldwide total sales for the year of £36 billion (2008: £40 billion)

          Capital position strengthened

          • IGD solvency surplus estimated at £4.5 billion (2008: £2.0 billion)

          Strong strategic progress

          • Successful IPO of Delta Lloyd
          • £0.5 billion being paid to policyholders for reattribution of UK inherited estate
          • Completed sale of Australian life business

          * which excludes Delta Lloyd

          Andrew Moss, Aviva’s group chief executive, commented: “In the fourth quarter we increased sales across all our regions and saw the first signs of an improved appetite to save among our customers. European bancassurance was particularly strong.

          “In 2009 as a whole we have successfully managed new business to ensure the right balance between volume, capital efficiency and profitability. This means we have deliberately foregone sales in some areas.

          “We also achieved a number of important milestones in the final three months of the year, in particular the IPO of our Dutch subsidiary, Delta Lloyd, building further momentum in the delivery of our ‘One Aviva, twice the value’ strategy.

          “We start 2010 in a strong position. Our focus remains on growing our business profitably and improving our operational efficiency so that we can fully benefit as our major markets return to economic growth.”

          Download the full report

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          A 2009 rise of almost 20% in car insurance premiums could be followed by a further hike of 15% in 2010, according to Consumer Intelligence.

          The market research firm puts the current average annual car insurance premium at £564.19, with 17 to 24-year-olds bearing the brunt of last year’s increase, at almost 25%.

          For this age group a typical annual premium stands at £1,489 while for the 65s and over the rise has been around 15% to £423.

          Best placed are 55 to 64-year-olds who pay around £376 a year to insure their vehicles.

          Consumer Intelligence spokesman, Ian Hughes, believes upward pressure on pricing has “well and truly broken through”, despite the influence of price comparison websites.

          He is concerned that the trend could encourage more motorists to drive uninsured and with an estimated 1.6 million uninsured drivers already on UK roads, the £30 per year penalty paid by legal car owners to compensate the victims of uninsured drivers may not be enough.

          Earlier this month, a leading car insurance company announced that it will be increasing motor insurance premiums by up to one-fifth from March because of a rise in third party and personal injury claims.

          The insurer said the current market is unsustainable.

          In addition, EMB recently reported that motor insurer results for 2009 are even worse than feared.

          Research by the actuarial firm revealed that combined loss ratios for the private and commercial motor insurance market are set to exceed 115%.

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            On the basis of preliminary calculations, Munich Re increased its consolidated profit significantly to €2.56bn in 2009 (previous year: €1.58bn). The profit for the fourth quarter totalled €0.78bn (0.11bn).

            Shareholders are again set to benefit substantially from the Group’s performance: subject to approval by the Supervisory Board and the Annual General Meeting, the dividend will rise by 4.5% to €5.75 (5.50) per share.

            Munich RE CFO Jörg Schneider said: “This is another good result that demonstrates Munich Re’s earnings strength. We are realistic in our expectations and remain dependable for investors”. Despite the challenges posed by the market environment in 2009, we were even able to slightly exceed our ambitious return target of 15% on risk-adjusted capital after tax.” Schneider emphasised: “We want our shareholders to participate in this success through a further increase in our already high dividend.”

            “Bearing in mind that the financial crisis reached its climax in the first quarter, we can be very satisfied with the figures for the year. The substantial increase in profit means shareholders can enjoy a good return on capital and approve a solidly earned dividend increase at the AGM.”

            Torsten Jeworrek, Munich Re’s Reinsurance CEO comments: “The renewals involved some tough negotiating. For us, there is no alternative to risk-adequate prices if we want to keep our business sustainable.” Treaties that showed no sign of being profitable were consistently terminated. “Even in this somewhat testing environment, we have maintained the quality of our portfolio and can therefore be satisfied with the renewals”, he added.

            “Our strategy of positioning ourselves somewhat more broadly in the Group and in reinsurance is bearing fruit. It enables us to take our opportunities in areas of business for which a high level of risk competence is required.”

            Download the full report

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            China is planning to inject 7.3 billion dollars into a bank and an insurer in a bid to beef up the ability of the state-owned firms to aid exports and foreign investments, state media said Thursday.

            The Export-Import Bank of China and China Export and Credit Insurance Corporation are expected to get the cash infusion through a 50-billion-yuan bond issued by Central Huijin Investment, the China Business News reported.

            Central Huijin is the domestic investment arm of the nation’s sovereign wealth fund China Investment Corp (CIC).

            The timeframe for the cash injection is yet to be decided and a special meeting to discuss the issue will be called at CIC next week, the report said, citing unnamed sources close to Central Huijin.

            China aims to reform its low-yielding policy financial institutions, which are tasked with implementing various national targets, to make them more competitive and profitable.

            The Export-Import Bank of China was set up in 1994 as a key financing channel for the import and export of high-tech products and overseas projects of Chinese companies.

            The bank made 2.5 billion yuan in after-tax profits in 2009 and total assets stood at 953.3 billion yuan, according to a statement on its website.

            China Export and Credit Insurance Corporation was established in 2001 to promote the country’s exporters and foreign investment.

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            Willis Group Holdings announced today that Stephen E. Wood, the company’s Global GroupFinancial Controller, has been named interim Chief Financial Officer.

            The appointment is effective with the February 19, 2010 departure of Patrick C. Regan,who is leaving the company to become CFO of Aviva plc. Regan’s planned departurewas previously announced on October 23, 2009. In his interim role, Wood will report toWillis Chairman and CEO Joseph J. Plumeri, and will continue to be based in London.

            Wood joined Willis in October 2006 with more than 19 years experience gained inbanking, finance and public accounting. Prior to joining Willis, he was Divisional ChiefOperating Officer – Annuities at GE Life (UK), a subsidiary of General Electric. In hiscurrent role, he is responsible for external reporting, treasury and financial planning andanalysis.

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            Bailed out US insurance giant AIG is set to begin paying 100 million dollars in bonuses to employees on Wednesday, a year after similar payments ignited a political firestorm.

            The payments, confirmed by a source close to the matter, were part of a deal in which employees agreed less than they were owed in exchange for early payouts, in an effort to stem the outrage that occured last year.

            US officials have argued that the government was unable to stop the legally binding payments to the employees at the troubled Financial Products division that nearly sank AIG.

            Nonetheless, news of the latest bonuses triggered fresh criticism of the administration in view of the massive bailout of AIG worth more than 180 billion dollars.

            Republican Senator Charles Grassley said of the latest bonuses, “AIG has taxpayers over a barrel. The Obama administration has been outmaneuvered.”

            American International Group, rescued in the face of a threatened financial system meltdown in September 2008, said in a statement that around 97 percent of employees with its troubled Financial Products division “have volunteered to reduce their upcoming 2010 payment.”

            The moves will help achieve the company’s “giveback target” of reduced bonus payments in an effort to stem the type of blistering criticism that erupted a year ago.

            The company owes about 198 million dollars in bonus payments, according to government officials.

            “We have decided to begin these reduced payments to these active employees as well as those nonactive employees who agreed to reductions,” AIG said. “The reductions from these two groups stand at about 20 million, and we believe this allows us to largely put this matter behind us.”

            About 200 active and former employees will receive the early payments, which were available only to those who agreed to a cut.

            The company said that some former employees volunteered to reduce payments by an additional 4.5 million dollars.

            US officials say only about 19 million dollars has been returned from 2009 payments to AIG employees despite pledges to return 45 million dollars.

            AIG promised to work with those employees “to round out the remaining amount of our giveback target over the next few months.”

            The payments stem from employment contracts signed in 2007 that fall outside the jurisdiction of “pay czar” Kenneth Feinberg, who oversees compensation at companies receiving bailout money.

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              The Met Office has issued a weather warning for all UK regions. Heavy Snow is expected from 0349 Wed 03 Feb to 2359 Wed 03 Feb.

              Outbreaks of snow will become more persistent later this morning with some heavier outbreaks for a time. Drier weather will follow from the south during the afternoon. Accumulations of 2 to 5cm are widely expected and up to 10cm over the hills.

              Following overnight showers there is a risk of widespread ice on untreated roads and pavements. Scattered snow showers in the north may bring an additional hazard.

              The public are advised to take extra care and refer to Traffic for further advice on road conditions.

              To take action to prevent or protect your home or business against water damage from burst or frozen pipes you can find all you need to know about flood and natural disaster insurance below:

              Advice on coping with bad weather when driving

              Advice to motorists during ‘big freeze’

              Property owners at risk from serious water damage claims

              All you need to know about flood and natural disaster insurance

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