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Liberty International Underwriters Europe (LIU Europe), a division of Liberty Mutual Group, has appointed Michael Hemesath to a new position of Claims Manager for Germany.

Based in LIU Europe’s Cologne office, Michael Hemesath is tasked with developing the claims function for Germany in a move which further reflects the growing volume of business now being written through LIU’s Continental European operations. He joins from another insurer where he spent eight years, the last six as Senior Claims Examiner for D&O risks.

Commenting on Michael Hemesath’s appointment, Gerard van Loon, Managing Director of LIU’s Continental European operations, said; “We have made excellent progress in growing our Continental European operations.  Michael Hemesath has a strong track record in claims and I am confident that together with John McCammon, our European Claims Manager and Dr Wolfgang Weis, Executive Officer Northern Europe and Branch Manager for our Cologne office, we will continue to deliver the high quality of service that our brokers and insureds expect.”

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The Asian business of insurance group Aviva, Friday said it has appointed Anupam Sahay as its regional development and strategy director effective January.

Sahay was previously Aviva’s group strategy director for U.K. operations. He will be responsible for regional strategy, business development and merger and acquisition activity.

Rob Donaghy, formerly of National Australia Bank, has been appointed Aviva Asia’s new chief financial officer, replacing Craig Brackenrig. Brackenrig will remain in his current role until mid-2010.

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PERILS AG, the independent Zurich-based company established to aggregate and provide industry-wide European catastrophe insurance data, has today announced the placement of the first two insurance risk transactions based on a PERILS industry loss index.

The transactions relate to Industry Loss Warranty (ILW) reinsurance contracts which will provide protection against a major European windstorm event. One contract involves Credit Suisse Asset Management as the protection provider and Munich Re as the counterparty. The other was arranged by Willis Re with the counter-parties remaining unnamed.

PERILS will provide an independent authoritative source of data to determine the property market loss arising from a large windstorm event affecting Europe. This information will be used to produce an index value to determine the payout of the protection under the ILW contracts.

Commenting on the transaction, Luzi Hitz, CEO of PERILS, said: “These two transactions are the first ILWs to use a PERILS index. This is an important development, as it illustrates the key role which PERILS plays, as an independent loss aggregator, in enabling the use of industry loss triggers for European windstorm events.”

Niklaus Hilti, Head of Insurance Linked Strategies at Credit Suisse, added: “The use of a PERILS industry loss index in this ILW reinsurance contract is a key milestone in the development of a more mature and liquid market which is in the best interest of both reinsurers and investors. We are happy to support PERILS together with Munich Re.”

Hans Joachim Thoenes, Head of Retrocession at Munich Re, added: “Munich Re fully supports the PERILS initiative. Our main objective is to contribute to the creation of a more liquid and standardised ILS and derivatives market for European windstorm risk which is to our own benefit, that of our clients in the insurance industry and potential investors. The launch of PERILS is, in our opinion, an important step in this direction. We are proud to have been able to set up with Credit Suisse Asset Management the first transaction in the market based on a PERILS industry loss index.”

Henry Kingham, Executive Director of Willis Re, commented: “We are delighted to have worked closely with Luzi and the team on the first brokered PERILS transaction. As we have commented before, PERILS helps deal with the long standing issue of an independent European wind loss index and will hopefully mean the expansion of indexed trades triggering off European windstorm events.”

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    National Australia Bank Ltd., the country’s third-largest by market capitalization, Thursday unveiled a surprise US$11.9 billion (A$13.3 billion) bid for AXA Asia Pacific Holdings Ltd., upstaging a rival offer from Australia’s second-largest funds manager, AMP Ltd.

    NAB must now convince AXA SA, which owns 53.9% of AXA Asia Pacific, to join it in the proposal as AXA SA had previously backed AMP’s offer.

    The acquisition of AXA Asia Pacific would propel either AMP or NAB into clear market leading positions in the Australasian life insurance and wealth management sectors, and give them the largest network of financial advisers in Australia. AXA APH said that other parties had also expressed interest in the business, indicating that the battle for AXA APH may not be over.

    Both AMP and NAB plan to sell AXA APH’s Asian businesses to AXA SA, which is looking to build its operations in the region.

    If NAB’s offer is successful, the deal would likely encourage further consolidation in the industry with AMP likely to become a target along with other asset managers such as Challenger and IOOF, analysts say.

    NAB is offering A$6.43 cash for each AXA APH share in a deal backed by the target’s independent directors, AXA APH said in a statement. Under the proposal, shareholders can also accept a combination combination 0.1745 NAB shares and A$1.59 cash for each of their shares.

    “The independent board committee has unanimously concluded that the NAB proposal is in the best interests of AXA APH minority shareholders and superior to the rejected AMP, AXA SA revised proposal, in both its value and terms,” AXA APH Chairman Rick Allert said.

    NAB Chief Executive Cameron Clyne said the acquisition of AXA APH is in line with the group’s strategy of boosting exposure to the Australia and New Zealand wealth management sectors. In September, NAB completed its purchase of Aviva PLC’s Australian wealth management operations and it also recently bought Goldman Sachs JBWere’s private wealth business.

    AMP and AXA SA Monday revised up their November offer for AXA APH to A$12.85 billion, offering 0.6896 AMP shares for each AXA APH share alongside an increased A$1.92 per share in cash.

    AXA agreed to work exclusively with AMP on the AXA APH deal until Feb. 6. Only if AMP walks away from the deal would AXA be able to start working with NAB on a separate proposal before then.

    NAB says its offer stands until Feb. 16 or six weeks after any decision by AMP to end the exclusivity period.

    “We need to carefully consider the announcement and will discuss it with AMP before we make any public statement,” said a spokesman for AXA SA.

    AMP, which said Monday that its revised offer was final, wouldn’t immediately comment on the NAB proposal.

    AXA APH is the only Australian financial-services firm with the majority of its business in Asia and has exposure to eight regional markets, which account for two-thirds of its earnings.

    Prior to NAB making public its proposal, a number of investors in AXA APH had said they wanted AXA APH to accept AMP’s bid and so will also likely back NAB’s bid.

    Unlike the AMP proposal, NAB is offering investors the chance to take a full cash payment in return for their shares.

    NAB said the deal values the Australian and New Zealand wealth management businesses at A$4.61 billion, against the A$4.41 value ascribed by AMP under Monday’s sweetened bid.It said it can extract up to A$260 million in annual synergies within five years of the deal, including cost savings of A$210 million and a A$50 million boost to revenues. The pre-tax cost savings compare with AMP’s estimate of annual savings of A$120 million after tax.

    The bank would raise around A$1.5 billion through a rights issue to help fund the deal, once it completes formal due diligence on AXA APH and has the backing of AXA SA.

    AXA shares were up 12.6% at A$6.36 after the news. AMP shares rallied 3.4% to A$6.31 amid some speculation it could become a target.

    NAB said it doesn’t expect the AXA APH deal would worry competition regulators but said the bank would discuss the proposal with the Australian Competition and Consumer Commission and with the government.

    A spokesman for Treasurer Wayne Swan wouldn’t comment on the deal neither would a spokeswoman for the ACCC

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      According to the Swiss Re’s new sigma study, Commercial liability is the next challenge for businesses and their insurers, and it becomes more and more important to manage and insure liability risk. The authors note that the best products and the best underwriting methodology for liability risk are no substitutes for adequate pricing. Prices should reflect escalating claims trends and the uncertainties of a rapidly changing technological and legal environment.

      Third party liability is among the most important risks that businesses face. Liability insurance protects against “the legal obligation to compensate third parties for losses or damages for which they are liable.” This includes very different risks: companies seek protection against claims resulting from product defects or improper use of certain products by the consumer. Medical doctors and hospitals insure themselves against medical malpractice. Boards of directors, supervisory boards or management may also seek cover against claims relating to violations of the duty to exercise care. This type of cover has increased in importance since the onset of the current financial crisis.

      Liability insurance is growing in importance around the world

      In 2008, businesses spent approximately USD 142 billion on liability insurance worldwide. Premiums in the US, the largest market by far, were USD77 billion, more than half of global commercial liability premiums. The UK, the world’s second largest market, generated commercial liability premiums of USD 12 billion in 2008. Commercial liability premiums in Japan and Australia, the largest markets in the Asia-Pacific, were USD 5 billion and USD 4 billion respectively. In most emerging markets, penetration of commercial liability insurance is low, but growing at double-digit rates.

      Yet running it as a profitable business is a challenge for insurers

      “After a few profitable years, there is a risk that insurers again under-price the business.” said Thomas Holzheu, one of the authors of the study. Because liability insurance is a long ‘tail’ business – ie claims tend to occur over a longer period of time – insurers have to price in the rising claims trend and the huge risks involved in this business. Holzheu added: “Under-reserving, which usually goes along with underpricing, is very dangerous both for insurers’ long term profitability, but also for policyholders, since it undermines the sustainability of insurance protection.”

      Holzheu noted: “Commercial liability rates are declining in all markets, especially in the US since 2004. Meanwhile, prices continue to fall in all liability lines of business. Because interest rates are low, business cannot be cross-subsidised with investment results; therefore, prices should instead be increasing.”

      Why liability insurance is increasingly difficult to underwrite

      The traumatic experience of the 1980s, when companies and their insurers in the US were made retroactively liable for claims relating to environmental damages and asbestos, is still in many insurers’ minds when they think of liability threat scenarios. Inflation is another area of concern, which is quickly attracting attention. A lesser known fact is that unexpected inflation in the US during the 1980s contributed significantly to the soaring losses the industry faced during the liability crisis.

      Emerging risks due to technological and social developments are a constant challenge: new insights into and changing standards around food safety, environmental pollution, employment practices and the compensation of financial loss are, for example, risks that insurers closely monitor. Roman Lechner, co-author of the sigma study, said: “Fortunately, none of these emerging risks has evolved into the next asbestos — yet.” He added, “The problem is that emerging risks cannot be assessed with traditional actuarial methods. They can only be determined after claims have accumulated following precedence verdicts.“

      Another growing concern is the rapidly changing culture of compensation. Damage awards are increasing, especially those related to pain and suffering. Also, various countries in the European Union have adopted collective redress mechanisms, ie class action mechanisms, which could lead to larger claims..

      Companies, insurers and governments must take steps to keep liability risks insurable

      The first line of defence for avoiding liability costs is risk prevention. Companies and their risk managers need to assess and mitigate the risk in their businesses. Insurers must systematically monitor the drivers of liability claims and build them into their actuarial models. The underwriting process must at all times remain focused on maintaining control over exposures and underlying profitability. Governments should guarantee a predictable framework by refraining from frequent changes to liability rules, eliminating procedures that contribute to unpredictable outcomes or delays in claims resolution, and avoiding retroactive liability. There is also a need to keep levels of liability compensation within reasonable limits.

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      Table 1: The global commercial liability market, 2008 1

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      The number of U.S. workers filing new applications for jobless insurance unexpectedly rose last week, bumped up by seasonal adjustments, according to government data on Thursday that still suggested the labour market was improving.

      Initial claims for state unemployment benefits climbed 7,000 to a seasonally adjusted 480,000 in the week ended December 12 from a slightly downwardly revised 473,000 in the prior week, the Labour Department said. It was the second straight week initial claims rose.

      Analysts polled by Reuters had forecast claims falling to 465,000 from a previously reported 474,000. The weekly claims data covers the December payrolls survey week.

      A Labour Department economist said given that the actual claims had not declined by as much as the seasonal factors had expected, the seasonally adjusted number increased a little bit.

      The Federal Reserve on Wednesday left overnight lending rates unchanged near zero and renewed its promise to hold them low for an “extended period.” The U.S. central bank noted that the labour market deterioration was abating, though companies remained reluctant to add to payrolls.

      Analysts reckon the job market, the worst hit sector during the worst recession in 70 years, is starting to turn around and employers last month cut the fewest jobs in more than a year.

      The four-week moving average for new claims fell 5,250 to 467,500 last week, the lowest level since September 2008, and dropping for the 15th week in a row. The four-week moving average is viewed as a better gauge of underlying trends as it irons out week-to-week volatility.

      According to analysts, the four-week moving average needs to drop below 450,000 to indicate labour market stability.

      The number of workers still collecting benefits after an initial week of aid rose 5,000 to 5.19 million in the week ended December 5. This was above market expectations for 5.15 million. So-called continuing claims are below their peak of 6.9 million in June.

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      Friends Provident believes the introduction of consultancy charging in the corporate pensions market is good news for consumers but is calling on the FSA and the DWP to take further action and remove significant differences between occupational and contract-based schemes.

      The findings outlined in the FSA’s Consultation Paper 09/31 Delivering the Retail Distribution Review published today indicate the regulator has identified the potential for arbitrage between occupational pensions and contact based pensions. But Friends Provident believes only tri-partite working between the FSA, DWP and TPR will create a true level playing field.

      James Ward, director of UK Corporate for Friends Provident comments: “The new charging structure outlined by the FSA today is laudable and will finally remove commission bias from the sale of contract based pension schemes. We welcome the strong intention to create a level playing field between occupational and contract based schemes by banning commission for occupational pension investment products. This helps to avoid a situation where new regulation encourages employers to move back to occupational schemes for all the wrong reasons.”

      Ward continues: “But we need to go further to create a truly level playing field between different types of scheme.  For example the rules on refunds of contributions in the first two years will become a more important factor for employers once auto-enrolment is implemented.  New regulation puts more focus on these differences and regulators need to take co-ordinated action to ensure customers’ best interests are protected.”

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        Bailed-out US insurance giant AIG is planning to list its Asian unit in Hong Kong by the second quarter of 2010 in a sale that could raise as much as 20 billion dollars, a report said Thursday.

        American International Group (AIG), which said in May that it planned to float American International Assurance (AIA), was expected to file a prospectus before Christmas, the Financial Times said, citing unnamed sources.

        If Hong Kong regulators approve the initial public offering, it could be one of the world’s largest share sales, the paper said.

        Dow Jones Newswires said the company has now submitted a listing application to Hong Kong’s stock exchange, citing an unnamed source.

        The listing represents an attempt to distance the Asian insurance arm from its parent group, whose reputation has been hit by a huge Washington bailout at the end of last year after it was battered at the onset of the credit crunch.

        Proceeds from the planned sale could be used to help repay some of the more than 80 billion dollars that AIG owes the US government, the report said.
        AIG confirmed its listing plans for the unit earlier, but declined to give a timeline, saying it was “dependent on market conditions and regulatory approvals.”

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        ING announced today that in connection with its EUR 7.5 billion rights issue 53,365,998 new (depositary receipts for) shares have been sold at a price of EUR 6.68 per share. This sale is in relation to new (depositary receipts for) shares in ING’s rights issue that were not subscribed for during the subscription period (the rump shares).

        The rump shares were offered and sold by way of private placements to certain institutional investors outside the United States and through a public offering in the United States. Goldman Sachs, ING Bank and J.P. Morgan acted as joint global coordinators and joint bookrunners for the rump offering, on behalf of a syndicate of banks.

        Since the aggregate proceeds for the rump offering, after deduction of selling expenses (including any value added tax) exceed the aggregate subscription price for such offer shares by EUR 2.09 per rump right (equivalent to EUR 2.44 per rump share), each holder of a right that was not exercised will be entitled to receive a part of the excess amount in cash, in respect of the number of unexercised rights reflected in such holder’s account as a proportion of the total number of unexercised rights.

        As a result of the rights issue, the number of ING shares outstanding will equal 3,831,560,513. Trading in the offer shares on Euronext Amsterdam and Euronext Brussels is expected to commence on 21 December 2009. Trading in the newly issued American depositary shares on the New York Stock Exchange is expected to commence on 21 December 2009.

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        QBE European Operations, the specialist business insurer, today announced its purchase of the brand and renewal rights of the Evergreen portfolio from MSP Underwriting Limited, the Lloyd’s underwriting agency, which is owned by Munich Re.

        Brokers consistently rate Evergreen as offering one of the market’s highest levels of service. The combination of the team’s high quality service skills and QBE’s technical and distribution strengths, will assist QBE EO in its ambition of growing its property business and expanding its UK National capabilities.

        Bernard Mageean, Managing Director, Property, QBE European Operations said:         “The Evergreen business model fits very well with our commitment to offer a comprehensive and quality property proposition to our brokers and clients. I am looking forward to working with the Evergreen team and learning from their specialist expertise, which will be invaluable in supporting the ongoing growth of QBE’s property business as we move towards our goal of building a top five position in the UK market.”

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        Chaucer Holdings Plc’s Board of Directors announces several appointment and management changes :

        • CHP has appointed Robert Stuchbery as Chief Executive Officer with effect from 1 January 2010.
        • Bruce Bartell will assume Chief Underwriting Officer responsibilities and step-down as Active Underwriter of Lloyd’s Syndicate 1084.
        • CHP has confirmed Ken Curtis as Chief Financial Officer, who joins the CHP Board with immediate effect.
        • Bob Deutsch will assume the role of Chairman of Chaucer Syndicates Limited, the Group’s managing agency, with effect from 1 January 2010 following the retirement of Ewen Gilmour on 31 December 2009. Richard Scholes will act as Deputy Chairman of CSL from the same date.
        • John Fowle will become Active Underwriter of Lloyd’s Syndicate 1084 and will join the CSL Board. John’s appointments are subject to regulatory approval.
        • Ken Curtis will retain the role of CSL Finance Director, while recruitment takes place. Chaucer Syndicates Limited  will also seek the appointment of two independent Non-Executive Directors.

        Martin Gilbert, Chairman, commented: “I am extremely pleased to appoint Bob Stuchbery as Chief Executive Officer of Chaucer Holdings PLC. I am convinced that Bob is the right man for this key role, having been responsible for much of Chaucer’s success over the past 20 years.

        I also welcome the appointments of Bruce Bartell, Ken Curtis and John Fowle. The appointment of this Senior Management Team follows very positive feedback from shareholders and provides Chaucer with a highly experienced and strong leadership team. Bob will now focus the energies of his team on the delivery of our long-term strategy.

        These appointments follow an extremely thorough and highly competitive search process. I would also like to take this opportunity to once again thank Ewen  Gilmour for his many years of leadership and dedicated service to Chaucer.”

        Bob Stuchbery stated        , “I am delighted to be appointed CEO of Chaucer, having worked closely with the business, most recently as CUO and Active Underwriter, to help it to establish its strong underwriting reputation over the last 20 years, The new Senior Management Team, which has already contributed greatly to Chaucer’s development, is committed to our continued success. The Team has unparalleled knowledge and experience of both Chaucer and the Lloyd’s market and its appointment is a credit to the strength in depth of the executive team at Chaucer. Chaucer is an excellent business and, together with the Senior Management Team and all employees, I look forward to leading the business to further success for all stakeholders in the future.”

        Robert Stuchbery has been a director of Chaucer Holdings PLC since July 1998 and joined the Group in 1988. Bob is a Fellow of the Chartered Insurance Institute, and is currently Chairman of the Underwriting Committee of the Lloyds’ Market Association Board. Since October 2005, Bob was Chief Underwriting Officer, having previously been Active Underwriter of Lloyd’s Syndicate 1096. Before joining Chaucer, Bob was with the UK subsidiary of a large US insurance company from 1977 to 1987, working in London and the USA.

        Bruce Bartell was appointed a director of Chaucer Holdings PLC on 23 June 2009, having been Active Underwriter of Lloyd’s Syndicate 1084 since its merger with Syndicate 1096 in 2003. Bruce joined Chaucer in 1988. Prior to this appointment, Bruce worked for fifteen years in the London Company Market.

        Ken Curtis has been interim CFO of Chaucer Holdings PLC since 23 June 2009 and is the Finance Director of Chaucer Syndicates Limited, the Group’s Managing Agency. Ken is responsible for the financial management and reporting of the Group, Managing Agency and Syndicates. Prior to joining Chaucer, Ken was a Senior Manager in the London Market Insurance Group of Deloitte.

        John Fowle is the Deputy Active Underwriter of Lloyd’s Syndicate 1084 and has specific responsibility for the non-marine classes as Practice Head. Together with Bruce Bartell, John has been responsible for the strategic development and business performance of Syndicate 1084. John joined Chaucer in 2002 and was previously Head of the Specialist Lines Division.

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        ING announced today that it has received subscriptions for 1,715,046,546 new (depositary receipts for) shares through the valid exercise of rights related to its EUR 7.5 billion rights issue. In the rights issue ING will issue 1,768,412,544 (depositary receipts for) shares (the offer shares); therefore the take up represents approximately 97.0% of the offer shares. The subscription period for the rights ended yesterday, 15 December 2009 at 15:00 hours (CET).

        Today, 53,365,998 offer shares for which subscriptions have not been received during the subscription period (the rump shares) will be offered for sale by Goldman Sachs, ING Bank and J.P. Morgan as joint global coordinators and joint bookrunners, on behalf of a syndicate of banks (the underwriters) by way of private placements to certain institutional investors outside the United States and through a public offering in the United States. The price will be determined following a bookbuilding exercise (the rump offering).

        The rump offering is expected to end no later than 17:30 hours (CET) today. If the aggregate proceeds of the rump shares offered and sold in the rump offering, after deduction of selling expenses (including any value added tax), exceed the aggregate subscription price for the offer shares by more than EUR 0.01 per unexercised right, the excess amount will, subject to certain conditions, be paid as follows: each holder of a right that was not exercised will be entitled to receive a part of the excess amount in cash, in proportion to the number of unexercised rights reflected in such holder’s securities account.

        ING cannot guarantee that the rump offering will be successfully completed. Neither ING, nor the underwriters or any purchaser of rump shares will be responsible for any lack of excess amount arising from any placement of the rump shares in the rump offering. ING will not be entitled to receive any part of the excess amount.

        As announced on 27 November 2009 in connection with the rights issue, ING has sold 34.3 million rights it received on (depositary receipts for) shares held in the delta hedge portfolio, which is used to hedge employee options. The rights were sold through private placements at an average price of EUR 1.85 per right. ING used the proceeds to partially fund the purchase of 10.4 million (depositary receipts for) shares at a price of EUR 6.55 per share. These transactions were executed in order to maintain ING’s economic position in the delta hedge book.

        Following the rights issue, ING will have 3,831,560,513 shares outstanding. Trading in the offer shares on Euronext Amsterdam and Euronext Brussels is expected to commence on 21 December 2009. Trading in the newly issued American depositary shares on the New York Stock Exchange is expected to commence on 21 December 2009.

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        Willis Programs, a unit of Willis Group Holdings, the global insurance broker, announced today that its LawyerGuard® unit has launched a new insurance program designed to address the professional liability coverage needs of law firms with one to 20 attorneys in general practice areas.

        The underwriter for the LawyerGuard program is Catlin Insurance Company, Inc., rated “A” XV by A.M. Best and a subsidiary of Catlin Group Limited, a leading global specialty insurance and reinsurance group. The program will be offered on an admitted basis in all available states and the District of Columbia. To date, form and rate filings for the new program have been approved in 37 states.

        The program offers numerous coverage enhancements, including mutual choice of counsel, a reduction in deductible for claims settled through mediation, high limits for disciplinary proceedings and loss of earnings coverage, express malicious prosecution coverage, and free unlimited extended reporting periods for the disability or death of an individual attorney. The program also allows for individual attorneys to purchase a retirement tail at very attractive rates.

        The policy also provides coverage for activities not only taken as an attorney, but also as a member of a professional association, as an arbitrator/mediator, notary, lobbyist, title agent or as a publisher of research papers. Punitive damages also are covered under the policy unless deemed uninsurable in a particular jurisdiction. In certain situations the insured law firm is also eligible for crisis event coverage to offset the costs of a public relations firm to lessen the potential adverse impact on its reputation from covered events.

        David Hampson, President of Willis Programs said: “We are very excited about the launch of this new lawyers’ professional liability insurance program for non-defense attorneys”. “This is a significant complement to our existing lawyers’ professional liability program designed for defense firms of all sizes, which is sponsored by DRI, the largest international membership organization of defense attorneys. The combination of these two programs will make LawyerGuard an even more significant player in the national lawyers’ professional liability market.”

        In addition to underwriting the new Willis program, Catlin Insurance Company, Inc. will become the new carrier for the existing Willis-DRI program beginning on January 1, 2010.

        Stephen van Wert, Program Manager for the LawyerGuard program said: “We expect to achieve significant growth as a result of our new policy enhancements and competitive pricing structure in both programs”. “Catlin is looking to increase its presence in the US lawyers’ professional liability marketplace and we are delighted that they decided to work with Willis to help them achieve that goal.” Mr. van Wert has significant experience in the lawyers’ professional liability field, having run a $40 million lawyers program for most of the last ten years, as well having prior experience as a practicing attorney himself.

        Additional information and applications for the new program and the Willis-DRI program can be obtained at the LawyerGuard website at ww.lawyerguard.com or by contacting Mr. van Wert at (813) 712-7032 or at steve.vanwert@willis.com .

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        French rocker Johnny Hallyday, recovering from surgery in Los Angeles, will not be fit for his scheduled farewell tour next month, the singer’s insurer was quoted as saying on Tuesday.

        “It is now certain that the first concerts in 2010 will not take place,” Francois Chiesa, a director with Pont Neuf insurance brokers, told the Internet edition of the Le Point news magazine.

        When asked when Hallyday’s tour would go ahead, he replied: “I don’t know…we will see.”

        Dr Francois Zuccarelli, one of the two clinicians sent by Hallyday’s insurers, said the musician was a lot better and that he would sing again one day.

        Zuccarrelli arrived in Los Angeles with orthopaedic and trauma surgeon Yves Catonne to assess Hallyday’s condition.

        “I won’t say that he is in top form, but he is quite lucid and conscious and we even joked together at his bedside, so things are a little more positive,” Zuccarelli told RTL radio.

        Doctors put the 66-year-old in a drug-induced coma on Friday to help him recover more peacefully from surgery to deal with an infection, allegedly stemming from an earlier Paris operation to repair a slipped disc.

        Johnny Hallyday’s producer Jean-Claude Camus has said he will make an announcement on Wednesday on the tour’s fate. Hallyday was set play 24 farewell concerts across France, starting on January 8 in the northern city of Amiens.

        Though little known abroad, Hallyday is by far the most famous musician in France, with a colourful rock ‘n’ roll lifestyle. Known as the “French Elvis,” he has sold more than 100 million albums and played 45 major tours, selling out at stadiums.

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        Some of Britain’s smallest businesses have been “shocked and horrified” to discover that their insurance policies may be rendered worthless by an innocent mistake, according to consultation findings published today.

        When businesses buy insurance the law requires them to tell their insurer everything that their insurer might want to know about what is being insured. The insurer does not have to ask any questions. If the business fails to disclose anything the insurer can refuse to pay claims and can treat the insurance policy as if it had never existed.

        The Law Commission and the Scottish Law Commission have consulted on whether the current law is appropriate for “micro-businesses”. Micro-businesses are often defined as those that employ fewer than 10 people, but most are sole traders. Research published for the Financial Services Authority shows about half buy insurance direct without the advice of a broker, often online.

        David Hertzell, the Law Commissioner leading the project for England and Wales, said: “We proposed that the law should be changed so that micro-businesses should answer insurers’ questions honestly and reasonably. They should not need to volunteer information if the insurer did not ask for it.”

        Today the Commissions publish a summary of responses to their consultation. This included the findings of research among small businesses which found that many were not aware of the harsh effects of the current law.

        One IT consultancy said: “I am horrified to learn that I might have an insurance claim turned down because I hadn’t supplied information that I had no idea I was supposed to guess I might have needed to provide.”

        A small communications company commented: “I am shocked to learn that we are supposed to volunteer information that the insurers consider relevant, and failure to do so could result in a rejected claim.”

        The majority of those who responded to the consultation, including some insurers, said that they favoured a change in the law to protect micro-businesses in particular. Others told the Commissions that they opposed law reform and that disputes should be referred to the Financial Services Ombudsman, which can hear complaints when the micro-business has an annual turnover of less than £1 million.

        Scottish Law Commissioner, Professor Hector MacQueen, who is leading the project for Scotland, said        : “We believe that it is important that micro-businesses who often buy insurance in the same way as consumers are protected by a fair and proportionate law. We are now working on a policy statement which will set out our plans for reform.”

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        As 2009 draws to a close new research from Friends Provident suggests it’s not all doom and gloom as younger generations set the standard for a healthier financial future. With nearly one third (31%) of 21-29 year olds prioritising paying off debt over saving for a house (25%) or funding a career break (11%), we could be seeing the start of a more financially responsible Britain.

        The message that people need to start saving for retirement appears to be sinking in with nearly half (44%) of this so called ‘generation Y’ already paying into a company pension. Over one third (35%) also intend to start contributing to a pension before they hit 30. Furthermore the research revealed 21-29 year olds plan to use additional saving vehicles for their retirement including ISA’s (43%) and investment (equity) portfolios (35%). Only 11% don’t intend to use a pension for retirement.

        James Ward, director of UK Corporate said: In the current economic environment it is very uplifting to see that the younger generations are taking financial matters into their own hands. It is encouraging to see a large percentage of twenty-something’s taking responsibility for their finances and planning for their future at such a young age and rightly so. What is particularly inspiring is that over half (59%) of 26-29 year olds are in fact already paying into a company pension scheme. This can only be a good thing and if such laudable behaviour continues we could see a healthier or brighter picture of retirement in the decades to come.”

        The study also highlighted the need to take responsibility in planning for retirement and this younger generation of savers want to take control themselves and not rely on the state pension.

        This comes as no surprise given that over half (58%) of twenty-something’s do not agree that the state pension will be enough to support them by the time they retire. Only 14% think it will be enough, and these may be the ones who will struggle in later years.

        James Ward, director of UK Corporate continues: “With the Chancellor’s pre budget report adding yet another unwelcome layer of complexity to pensions in the UK we need to continue to highlight the benefits of saving. It is encouraging to see some of that message is being understood and younger generations are grasping the nettle and getting their finances in order.”

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        Democratic senators were to meet with President Barack Obama at the White House Tuesday to discuss health care reform, amid reports of new compromise likely to infuriate liberal lawmakers.

        The Senate has been struggling to pass its own version of a health care overhaul amid tough divides within the Democratic caucus on the bill’s language.

        But Senate Majority Leader Harry Reid and several senior Democratic senators told reporters Monday evening that they were closer than ever to passing legislation.

        Their renewed optimism came amid reports that a compromise designed to compensate for doing away with a government-backed “public option” health plan had been dropped after opposition from Independent Senator Joseph Lieberman.

        In an effort to build the crucial 60-vote bloc needed to safely pass the health care reform, Reid last week opted to ditch the public option in the face of strong resistance from Lieberman and several Democrats.

        But Monday, the replacement compromise plan to allow people aged 55-64 to buy into the government’s Medicare program for the elderly and disabled appeared to have also been taken off the table.

        Lieberman told reporters the bill now included a “very strong network and system of subsidies for people, including people who are 55 to 65, so the idea of the Medicare-buy in no longer was necessary.”

        While Reid and other senior Democrats did not confirm that the Medicare-buy in plan was dead, their statements suggested legislation would now move forward quickly.

        “We have gone over most of the hurdles,” Reid said. “I’m confident that by next week we’ll be on our way to forward this bill to the president.”

        Senator Chris Dodd echoed the optimistic timetable outlined by Reid and appeared to signal that some of the reform liberal Democrats are hoping to see will not be included in the final health care bill.

        “It’s always easier to envision the legislation you want than to pass the legislation you need and that certainly is true with health care,” he said.

        Obama has made passing a comprehensive overhaul of the US health care system, complete with lower costs and wider coverage, a key domestic priority and it formed a significant part of his campaign platform.

        But the process has proven difficult, with opposition coming from both Republicans and Democrats, and Obama’s party leadership has been forced to accept significant compromises in order to secure votes.

        Obama is still hoping to sign legislation by the end of the year, which leaves lawmakers with little time to pass a Senate bill and then reconcile the two versions.

        The compromises won by Lieberman in the Senate, as well as language in the House bill that limits funding for abortion, have also angered liberal Democrats, posing another threat to the legislation’s chances of completion by year’s end.

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          UK consumers are confused about what insurance cover they think they have compared with what they are actually covered for, according to Swiss Re’s latest edition of its flagship Insurance Report. Swiss Re is prompting UK life insurers to keep product definitions simple and to improve the transparency of what they offer.

          The financial crisis has led to an increased financial awareness among consumers in the UK. Swiss Re thinks the industry should seize the opportunity to empower consumers with the information they need to move from better awareness towards making informed decisions and improving their financial protection. The report also says the industry needs to help consumers to take greater responsibility for future provision of protection needs as the pressures on the safety net provided by government intensify.

          According to the report – titled ‘The cost of doing nothing’ – 44% of consumers feel reasonably well positioned financially if they were to suffer long-term illness, disability or die. While people still perceive life insurance as the main way to protect themselves financially, just 36% believe they can actually rely in practice on holding adequate insurance. However, an increasing number of people think they are self-reliant.

          The report warns that this unrealistic optimism makes people oblivious to the fact that whatever insurance they hold is unlikely to be enough to support their future. 52% of people think they have life assurance, 28% think they have critical illness (CI) and 36% think they have income protection (IP), either through a policy they own or one arranged by their employer. The findings stem from research conducted by Swiss Re among more than 1,000 consumers.

          Industry data suggest, however, that the level of in-force cover is far lower than this. To illustrate this mismatch between perception and reality – which Swiss Re has coined the ‘Perception Gap’ – the amount of insured IP held in the UK through individual policies or employer-sponsored schemes is approximately one third of the amount consumers believe they hold.

          Maxine Smith, co-author of the report, says: “Consumers seem to have a relatively good understanding of life insurance, while many say CI remains a confusing product, and only a small minority understands the purpose of IP. The industry needs to stop in-fighting over a name (IP) which fails as a description and use much clearer labels such as long-term sickness, disability or incapacity.”

          Swiss Re’s research has also found that many consumers know CI for the wrong reasons, namely the negative publicity associated with companies not paying out claims. The meaning of IP is largely unknown: there is a strong belief among consumers that it provides redundancy cover. ”I don’t have it (IP) but I would think it doesn’t just relate to being off sick. I think it possibly relates to losing your job or maybe redundancy”, one consumer said.

          “As an industry, we should focus more on growing awareness about all long-term products for those who are uninsured or who think they are insured but are not. Greater product clarity is a key part of that. Attempts to grow the market rather than recycle existing business will help close the Protection Gaps,” says Maxine Smith.

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          In a further indication of its commitment to tackle insurance fraud at the point of application and claim, Groupama Insurance has rolled out Hunter, the award winning fraud prevention solution across its household and commercial insurance business. The development follows the successful implementation of Hunter for all motor and fleet applications and claims, at the start of 2009.

          A web-based system, Hunter works on the principle of data sharing, accessing information from insurers and financial institutions on known fraudsters.

          Using the system Groupama can check applications and claims for any discrepancies, anomalies or matches against previous known and suspected fraudulent applications and claims. Hunter then provides a referral investigation management facility and enables the recording and sharing of decisions with other insurers.

          Stephen Teeling, Counter Fraud Manager at Groupama Insurances said: “The success of Hunter proves the importance of data sharing in the industry to help combat fraud. Since we started using the tool for our motor and fleet book at the start of the year, we have seen a noticeable improvement in fraud detection rates. Whilst it’s too early to provide firm figures, from the evidence we have seen, it makes absolute sense to roll out Hunter to our Household and Commercial portfolios.”

          “At Groupama we firmly believe that if we can identify potential fraudsters at the point of application, we will not only help significantly reduce fraud at the claim stage but will enhance the service we provide to our honest policyholders. With insurance fraud costing a reported £1.9bn a year, we have a responsibility to exploit all the tools available to crack down on fraud and get out a clear message that we are extremely serious about fraud detection and that we will do everything possible to safeguard the interests of our customers.”

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          Swiss Re has entered into its first longevity transaction with a pension fund. With this transaction, Swiss Re will provide the UK’s Royal County of Berkshire Pension Fund (RBPF) with protection against the uncertainty associated with longevity risk on CHF 1.7 billion of pensioner liabilities.

          Christian Mumenthaler, Swiss Re’s Head of Life & Health, commented: “We are very proud to announce this innovative transaction, because it is not only Swiss Re’s first longevity protection written for a pension fund, but the first pure longevity risk transfer written for any governmental body worldwide.”

          The longevity contract transfers the longevity risk for RBPF’s existing pensioners through a straightforward insurance policy. It covers 11 000 pensions of the fund that were in payment on 31 July 2009. This corresponds to approximately CHF 1.7 billion of pensioner liabilities.

          The RBPF pension fund pays regular premiums to Swiss Re according to a fixed schedule. Swiss Re insures the actual ‘floating’ annuity benefits to members, the cost of which depends on how long those pensioners live. The net result is that the RBPF continues to honour pension payments to its pensioners, but any future positive or negative deviation due to uncertain longevity is absorbed by Swiss Re. RBPF retains legal ownership of its assets and complete control over its investment strategy.

          “We are pleased to have completed our first pension plan transaction so soon after expanding our activities to offer pension plans direct access to Swiss Re’s longevity capacity. This demonstrates our ability to take tried and tested solutions created for insurance clients and apply them to occupational pension plans,” said Costas Yiasoumi, who led the transaction on Swiss Re’s side.

          Longevity: a growing business for Swiss Re

          Continually rising life expectancies make longevity risk one of the biggest issues facing society. Demand from pension funds and life insurers for reinsurance has grown along with risk awareness. Yet private sector supply for longevity risk cover is still scarce.

          “This creates big opportunities for Swiss Re as market leader in life and health reinsurance. We are now pioneering longevity solutions for public sector counterparties as well as private companies, allowing them to better control the uncertainty they face with respect to longevity risk,” added Christian Mumenthaler.

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