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At a joint ABI / IPPR conference, Savings, Assets and Protection in the UK, the ABI has launched plans to encourage people to save more and protect their finances. The ABI Savings Manifesto includes ideas to boost pensions and other savings, including early automatic enrolment into workplace pensions, automatic increases in pension contributions and more flexibility on when people can buy annuities. At the same time, the ABI has published new research into savings habits and a consumer leaflet on protection insurance.

Opening the conference, Stephen Haddrill, the ABI’s Director General, said: “ABI research this year shows that over 40% of people are either saving far too little, or nothing at all, for their retirement, while the vast majority of the UK’s population has little or no protection in place to help them cope with unemployment or other unexpected financial shocks.

“We need a culture of personal responsibility based on savings habits established early on in people’s lives. Today we launch the ABI Savings Manifesto, which includes ideas like early access to pension saving, having contributions structures which auto-escalate with salary increases, and bringing forward automatic enrolment on a voluntary basis.

“On protection insurance, to further streamline the claims experience for consumers we are calling for a new way of dealing with life insurance payments, which will help to avoid any financial hardship that people can suffer while they are waiting for lengthy legal processes after the death of a loved one to conclude.

“And we hope, through a further consumer publication today, People Need Financial Protection, to help individuals and families work out what insurance products are right for their needs.”

Also speaking at the conference were the Secretary of State for Work and Pensions, Rt Hon Yvette Cooper MP and her Conservative counterpart, Rt Hon Theresa May MP.

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Aviva is to provide on-the-spot quotes, via Fast Trade, to brokers seeking cover for landlords who let their properties to students.

The increase in student population in the UK has helped to drive demand for rented accommodation as research reveals that nearly two million (80%) of students live away from home[1], with the insurer estimating that two thirds of these live in private dwelling houses.

And according to CB Richard Ellis, commercial property and real estate services adviser[2], the student accommodation market is still growing, with demand increasing by 14% in the past five years. In addition, with the average weekly rent being higher in private halls, students might find accommodation in the private residential market more favourable.

Mark Keavney, product development manager for Aviva, said: “Landlords with student tenanted houses are not always easy to obtain cover for due to the type of risk. Aviva is expanding its underwriting appetite within this sub-segment to enable brokers to offer customers our Residential Property Owners product, which provides cover on an all risks basis.

“It is commonplace that students in their first year live in halls of residence, but second and third year undergraduates typically live in shared, rented accommodation.”

The offering is packaged for brokers to target residential property owners with private houses occupied by students, providing landlords manage the let using an Assured Shorthold or Short Assured Tenancy Agreements.

The proposition includes providing cover for accidental and malicious damage and loss of rent, without having to make a referral.

Note:

[1] Universities UK Report and HESA (Higher Education Statistics Agency) 2007/08.

[2] CB Richard Ellis Hamptons International – Student accommodation, 2007.

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Powerful US insurers turned on President Barack Obama’s top priority health care reform drive on the eve of a key congressional committee vote, warning the plan would send family medical expenses soaring.

The White House on Monday hit back sharply at the assault, based on a report for the industry by auditors PricewaterhouseCoopers (PWC), which doused hopes that the insurance lobby would not seek to block the politically perilous effort.

The PWC study concluded that a version of the bill up for a vote in the Senate Finance Committee would hike projected cost increases per family by 1,700 dollars in four years, and by 4,000 dollars over the next decade.

The America’s Health Insurance Plans (AHIP) lobby group, which commissioned the report, argued that new taxes on health insurance plans, medical device manufacturers and pharmaceutical giants would pass on extra costs to consumers.

The insurance industry, blamed for halting a health care reform drive by former president Bill Clinton, had previously worked to influence the final bill with the White House and key Democrats in Congress.

The White House, which has waged a months-long campaign against conservative critics of its bid to make health care affordable to all Americans, quickly dismissed the credibility of the report.

“This is a self-serving analysis from the insurance industry, one of the major opponents of health insurance reform,” said Reid Cherlin, a White House spokesman.

“It comes on the eve of a vote that will reduce the industry’s profits. It is hard to take it seriously.

“The analysis completely ignores critical policies will lower costs for those that have insurance, expand coverage and provide affordable health insurance options to millions of Americans who are priced out of today’s health insurance market or are locked out by unfair insurance company practices.”

Finance Committee spokesman Scott Mulhauser meanwhile was quoted by the Washington Post as saying the health insurance lobby was resorting to a “tired playbook of deception” to thwart the health reform drive.

Obama has wagered huge political capital on the fight to pass health reform, and to offer affordable care to 46 million people in the United States with no insurance, a cause which confounded several Democratic presidents.

Should the initiative pass, in a form recognizable to the president’s campaign promises, Obama may be able to tap into a new well of political credibility and a claim to historic domestic reform.

But should the effort unexpectedly fail, despite Democratic majorities in Congress, Obama could find his political leverage and capacity to enact other elements of his sweeping agenda severely hampered.

The Senate Finance Committee was set to vote on Tuesday on its 829 billion dollar version of health care reform — one of several approaches to the issue awaiting action in the full House of Representatives and the Senate.

Last week, the non-partisan Congressional Budget Office (CBO) boosted the cause of health reform advocates, saying the draft Finance Committee effort would cut the US budget deficit by 81 billion dollars over 10 years.

Republicans, who have warned the bill could raise costs and increase the budget deficit, had required the budget estimate before they cast a vote.

Some Democrats, especially in the House, have still not given up the fight for a “public option” — a government-run component to compete with private health plans to bring down costs — to be included in the final draft law.

But the idea reportedly has little chance of passing the Senate, and is not included in the Finance Committee bill.

Republicans, who spent the summer fanning a furious wave of attacks on the plan, hammered the “public option” as an attempt by the Obama administration to create a state-run health care system to stealth.

With AFP – Washington, Oct 12, 2009

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    If you’re unhappy with a financial product or advice you’ve received you can complain. Firms regulated by the Financial Services Authority (FSA) must have a complaints procedure, and must respond to you within set deadlines.

    Before making a complaint

    If you’re unhappy with a financial product or the service you’re receiving it’s best to contact the firm as soon as possible. Firms have an obligation to treat their customers fairly, and will be keen to help and resolve the problem as quickly as possible. If you’re still unhappy you have the right to make a formal complaint in order to seek an apology, correction or compensation.

    Key steps when making a complaint

    • Step one

    Ask for a copy of the firm’s complaints procedure if you’ve not received it already. This will tell you who to write to, when to expect a response, and your options if you’re unhappy with the final outcome.

    • Step two

    If you’re unhappy with the final response, or if your complaint hasn’t been resolved within eight weeks, you can refer the complaint to an independent complaints scheme. These are free, impartial services and include:

    – The Financial Ombudsman Service (FOS)
    – Finance & Leasing Association Arbitration Scheme
    – The Pensions Advisory Service
    – The Pensions Ombudsman

    The firm’s written complaints procedure will confirm which scheme you’ll need to contact. Most complaints about financial services firms are dealt with by the FOS.

    You can read more in the article ‘Independent Complaints Schemes’ – see ‘In this section’ below.
    If you’re still not satisfied

    If the FOS has considered your complaint and you’re still unhappy you can go to court if you wish. But bear in mind that in most cases the court is likely to agree with the Ombudsman’s decision.

    If you’ve already been through an arbitration scheme or the Pensions Ombudsman, you can’t normally take your complaint to the courts. (You could by-pass these schemes and go to court direct, but you could run up expenses.)

    If going to court, use the small claims court. Other court systems can be expensive and time-consuming.

    In some cases you may be able to use the new unfair relationships provisions introduced by the Consumer Credit Act 2006. These enable borrowers to challenge unfair credit agreements in court and obtain redress, if the overall relationship is unfair to the borrower.

    If the firm has gone out of business

    Financial Services Compensation Scheme

    If the firm you’re dealing with has gone out of business, it’s unlikely that it will respond to complaints. However, if it was authorised by the FSA you may be entitled to compensation under the Financial Services Compensation Scheme. Visit the Financial Compensation Scheme website

    See also :

    How to solve problems with your insurer or broker ?

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    Householders most at risk of flooding in Northern Ireland are dropping home insurance because of the high costs, it was claimed.

    People who live in low income areas are likely to be charged £345 more than similar areas in Great Britain, a General Consumer Council report has confirmed.

    A spokesperson said the excess on policies was encouraging the less well off to skip insurance. “People can’t afford to take out household insurance even though they know they are more vulnerable going forward to flooding,” he said.

    About a third of consumers in Northern Ireland do not have contents insurance or buildings insurance, a report earlier this year from the Consumer Council found.

    Officials from the Council gave evidence to the Stormont Finance Committee today.

    The spokesperson added: “One of the consequences of the lack of control over development is that in addition to the flood plains and climatic change we have now exacerbated those natural difficulties.

    “Many people are faced with a very significant cost not just in terms of taking out household insurance where there has been a flooding incident, the premiums are immediately hiked but (there is a) very, very significant excess that I think is dissuading people from taking out insurance so the risk is actually multiplied.”

    There is less choice with only nine providers operating in Northern Ireland. That is partly due to the high start up costs of insurers expanding to the country and a relatively small market, the Council said.

    Parts of the lower Ormeau Road in Belfast are often flooded. The Executive has stepped in to help with the clean up costs.

    A total of 46,000 properties lie within river and coastal flood plains and there are expected to be more problems because of climate change.

    A spokesman for the Association of British Insurers (ABI) said: “The advice is shop around, it is a competitive market, even for some high-risk areas.

    “Insurers look to provide cover and a good insurance broker can give you some idea of companies which specialise in that.

    “People going uninsured is not something that we want to see, we want to provide cover and we have to balance that desire with the commercial common sense approach, the trick is to get as many people as possible covered.”

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    A senior Philippine central banker on Friday played down the risk to the banking system posed by devastating floods, saying just over 100 million dollars in loans might have to be restructured.

    Dow Jones Newswires earlier Thursday quoted the official as saying about half a trillion pesos (10.7 billion dollars) in loans may be at risk from defaults due to Tropical storms Ketsana and Parma. But the official later said he was misquoted.
    The storms probably affected about 500 billion pesos in loans out of the Philippine banking system’s total loan portfolio of about three trillion pesos, the central bank said.

    But just one percent of the storm-exposed loans are likely to require restructuring, notably loans made to farmers whose crops have been wiped out, said Nestor Espenilla, the central bank deputy governor for supervision and examination.

    “While five billion pesos (107.62 million dollars) is not a small amount, we believe it is not going to pose a systemic risk,” Espenilla said in a statement.
    Tropical Storm Ketsana killed 337 people as floods swamped 80 percent of Manila on September 26, while Typhoon Parma has so far killed 181 people in the north.

    The Manila region accounts for a third of the country’s economic output.  Espenilla said the central bank had already addressed the difficulties caused by the storms with a raft of temporary relief measures for banks announced last week.

    Meanwhile, the Philippine insurance industry expects to get hit with 11 billion pesos in non-life claims from devastating floods caused by Ketsana alone, Philippine Insurers and Reinsurers Association general manager Mario Valdez said.

    Ketsana was probably the costliest natural disaster to hit the country since the 1991 eruption of Mount Pinatubo, Valdez told AFP. The industry did not have any immediate estimates for potential claims from Parma.

    With AFP – MANILA, Oct 9, 2009

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    Aviva Life Insurance and India Post today announced a nation-wide strategic partnership for National Premium Payment Service. Now, Aviva customers can make premium payments at any of the 8,294 computerized post offices across the country without any additional cost. The premium amount collected by the post offices will be transferred to Aviva through e-payment system of India Post. This service is available with immediate effect.

    Speaking on the occasion, TR Ramachandran, CEO and MD Aviva India, said: “The tie-up with India Post is part of our Customer Centric initiatives to make it convenient for customers to pay their renewal premiums on time ensuring that the policy continues and the objective of protection or savings is met. This will result in higher persistency and lower lapse rates.

    “The industry is increasingly focusing on strengthening the renewal premium mechanism and this is the key to the profitable growth of an insurance company. At Aviva, we have increased our focus on renewal premiums, resulting in an over 50% growth, year-on-year. We hope to further accentuate this growth with the tie-up with India Post.”

    On the occasion of the launch of this service, John Samuel, general manager – business development, department of Posts, said: “With 155,000 post offices, India Post has the largest network in the world. Now India Post has been providing e-Payment services to the customers and this facilitates the bill collection, especially insurance premium collection. With a good technology support, e-Payment services of India Post will process the insurance premium payments instantly and the payment will be made to Aviva at a centralized location.”

    Aviva customers can simply visit any of the post offices with their renewal premium notices. Receipts would be issued by the post office staff after crediting the payment.

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    Commercial broker Bollington has appointed Andrew McKellar to its underwriting division as senior motor underwriter to further its aim of becoming the largest niche and affinity intermediary in the UK.

    The appointment follows a 70% year-to-date increase in revenue across the Bollington Wholesale division and its online wholesale facility Compuquote.

    McKellar has extensive motor underwriting experience including fleet, motor trade and specialist schemes. He joins from RSA where he was underwriter for Motorbility, RSA’s largest fleet partner, which caters for drivers with disabilities covering half a million cars. At Bollington McKellar will be responsible for the continued push into the fleet and self-drive hire markets via Compuquote’s fleet management facility.

    He will also be responsible for the further expansion of Bollington Wholesale, as managing director Chris Patterson explained: “Andrew brings with him a wealth of experience that will not only help to sustain profitable growth but also expand our product set into motor trade and courier.”

    The growth of Bollington Wholesale is in line with Chris Patterson’s remit to grow the wholesale division and, as part of that, to extend Compuquote’s product suite to a number of new niche areas.

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    Fitch Ratings has today downgraded the French mutual insurance company La Mondiale’s Insurer Financial Strength (IFS) rating to ‘A-‘ from ‘A’. The agency has simultaneously downgraded La Mondiale’s Long-term Issuer Default rating (IDR) to ‘BBB+’ from ‘A-‘ and its subordinated debt rating to ‘BBB’ from ‘BBB+’. The Outlooks for La Mondiale’s IFS rating and Long-term IDR are Negative.

    The downgrade reflects the still moderate, although recovering, profitability and capital adequacy of the group for an insurer rated in the single ‘A’ category. The group’s solvency has clearly benefited from credit spread tightening on corporate bonds due to improved liquidity conditions as well as the recovery of European equity markets since March 2009. However, the unfavourable conditions in the French real estate market, as well as the shifting demand towards euro-denominated products, should continue to pressure solvency margins. The Negative Outlook reflects Fitch’s view of a potential further decline in the group’s capital strength in the current volatile financial environment and concerns regarding the ability of La Mondiale to accelerate the rebuilding of its capital base via retained earnings.

    Fitch estimates that the recovery of La Mondiale’s capital adequacy remains linked to the performance of the financial markets and on management’s decisions, especially on the level of bonus rates offered to policyholders. If materially lower, Fitch believes such a decision would be beneficial for the group’s profitability and solvency.

    La Mondiale’s ratings continue to reflect the insurer’s good position as a leading player in the specialist fields of retirement products and savings-type life insurance in France. They also reflect the prudent investment strategy pursued by the group and its good liquidity position. Fitch notes that due mainly to its business-mix, La Mondiale has continued to report stable surrender rates, even through a difficult operating period.

    The creation of a common mutual insurance entity between the provident institution AG2R Prevoyance and La Mondiale has allowed the implementation of business and organisational cooperation. A common distribution network is now operating and Fitch believes this partnership will likely bring further benefits in terms of synergies to La Mondiale in the medium term. This partnership has in Fitch’s view a limited impact on La Mondiale’s financial strength as the financial support arrangement agreed between the two organisations has been capped at a moderate level compared with La Mondiale’s surplus and as a result is not considered as a key rating factor by Fitch.

    The Outlook could revert to Stable if La Mondiale demonstrates its ability to rebuild capital strength to a level more in line with an ‘A’ range rating. Conversely, the company’s rating would be downgraded if La Mondiale is unable to restore its capital base to a level compatible with its current ratings or if the financial environment deteriorates materially, leading to unrealised capital losses.

    La Mondiale is a mutual company providing life and pensions insurance products via three key business units: “Experts” (salaried agents), “ARIAL Assurance” (50/50 joint venture with AG2R dedicated to corporate clients) and “Partenaire” (partnership distribution agreements with intermediaries in the high-net-worth individual segment). In 2008, the group’s gross written premiums reached EUR5.1bn and it ranked among the top-10 providers of French life and benefits products.

    With Reuters

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    Personal lines broker Shene Insurance has signed up outsourced claims specialists Bankstone to provide a full-service external claims handling service for its motor, household and business customers.

    Shene Insurance managing director Philip Alexander comments: “Our first priority is always to deliver the best possible service to our customers. Having looked at a number of potential outsourced providers, we believe Bankstone have the right resources and the right philosophy to take our claims handing service to the next level. They have the systems, the people, and the quality control to ensure our clients get the personal attention and support they are looking for when they need to make a claim. One of the benefits of outsourcing our claims function to Bankstone will be extending the hours during which we can offer a personal claims service to our customers.”

    Bankstone director Dickon Tysoe adds: “I am delighted Shene have chosen Bankstone, as their claims handling partner. We look forward to working with them to maximise customer satisfaction and client retention whilst reducing operational costs. Shene and its customers will benefit from our market-leading technology platform, our state of the art online claims facilities, and the exceptional knowledge and experience of our team, many of whom are former brokers themselves.”

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      As heavy rain hits western England there are fears amongst families and business of a repeat of the devastating flooding of July 2007.

      There are flood warnings in place and people in these areas are advised to take action to protect their homes and businesses against potential flooding.

      The Environment Agency advises people to continually check the flood information section of their website which is updated every 15 minutes.

      If you live in a flood-risk area, it’s vital you make sure your home is fully protected.

      So, what can you do to make sure your home – and your finances – are protected against rising currents?

      Take cover

      If your home is located in a designated flood-risk area, then you should ensure you take out a good home insurance policy which will leave you fully covered should you be unlucky enough to find a river running through your living room.

      It’s vital to take out both a building insurance policy and home contents cover. Buildings insurance covers damage sustained to the structure of your property, whereas home contents insurance covers your possessions.

      Make sure you read your home insurer’s policy documents carefully and watch out for any exclusions. Read the terms and conditions for any additional benefits, such as an emergency payout to cover temporary accommodation and emergency supplies if your home has to be evacuated. Also, don’t forget to check the small print for any exclusions which could invalidate any claim and cost you more money.

      What to do before a flood

      • Before the bad weather hits, check what damage your policy will cover and whether or not you need to update your policy.
      • Turn off gas, electricity and water at the mains supply.
      • Disconnect cookers, washing machines, dishwashers and other appliances connected by rigid pipes to gas and water supplies. This will prevent damage to the pipes if the appliance floats or moves during the flooding.
      • Unplug all electrical items and store them upstairs, high up or in a loft space.
      • Use silicone sealant to make doors and windows more resistant. Put sealant around the door/window then close and lock until the flooding has passed.
      • Reduce the amount of water entering your property. Use sandbags, plywood, metal or plastic sheeting placed on the outside of doors, windows and airbricks. You do not have to seal your property completely, but this will reduce the amount of floodwater entering your property. (After flooding, remove any covers over air-bricks as ventilation will aid the drying of your property).
      • Floodwater can enter through drains. The easiest way of preventing this is by putting in plugs and weighing them down with sandbags. Washing machines and dishwashers’ outflows should be disconnected and blocked with a cloth/plug to prevent back-flow. Placing a sandbag in the toilet bowl will also prevent backflow.
      • Floodwater can contaminate foodstuffs and chemicals such as paint, garden pesticides, household cleaning products and garage oils. Similarly these can spill or leak into the floodwaters causing additional clean-up problems. Keep these materials upstairs or high up in your garage/shed.
      • Move furniture and electrical items upstairs and (if you have time) roll up rugs, carpets and curtains for suitable storage. (If you don’t have time, raise curtains by hanging them over the curtain poles.
      • Remember: you cannot replace items of sentimental value, photographs or favourite toys. Keep them upstairs or somewhere high up on a permanent basis.
      • Should furniture be too heavy to move, empty it and move its contents upstairs. Raise it on bricks to minimise damage and move it away from walls as this can assist in drying the property later.

      What to do during a flood

      • Avoid contact with floodwaters; they may be contaminated with sewage.
      • Do not wade through high floodwaters; manhole covers may have lifted, leaving deep and dangerous unseen holes.
      • Do as instructed by the emergency services – you may have to be evacuated. This will be done for your own good.
      • Leave internal ground floor doors open (doors may swell and jam if left closed).

      What to do after a flood

      • Call your insurance company’s 24 hour emergency helpline as soon as possible. Your insurer will be able to provide information on dealing with your claim, and assistance in getting things back to normal.
      • Keep a record of the flood damage (especially photographs or video footage) and retain correspondence with insurers after the flood.
      • Commission immediate emergency pumping/repair work if necessary to protect your property from further damage. This can be undertaken without insurer approval (remember to get receipts). Disinfect and thoroughly clean floors and surfaces.
      • Do not redecorate immediately. Seek advice and speak to a builder about using a dehumidifier. Your property may take some weeks to dry out.
      • Get advice if detailed, lengthy repairs are needed. Your insurer or loss adjuster can give advice on reputable contractors / tradesmen. Beware of bogus tradesmen and always check references.
      • If you have to move into alternative accommodation, check with your buildings insurer that the cost is covered in your buildings insurance policy.
      • Make sure your insurance company knows where to contact you if you have to move out of your home.
      • Do not turn on gas, electricity or water supplies until you have contacted your gas, electricity and water companies. Have your power supplies checked before you turn them back on to make sure they have dried out. Wash taps and run them for a few minutes before use.
      • Open doors and windows to ventilate the house but take care to ensure your house and valuables are secure.
      • Don’t think it can’t happen again. Restock your emergency supplies.

      Flood damage claim options

      If you have suffered flood damage and are intending to claim on your insurance policy, there are some things you will need to think about.

      You can make a claim directly to your insurer, who is obliged by our rules to handle your claim fairly. Individuals or companies who offer to notify your claim to the insurer or to negotiate it on your behalf) must be regulated by the FSA (click here to check).

      Think about whether you need to hire a third party’s help. If you do decide you want to hire a third party, make sure you check how much it will cost you first. They may charge you a fee or they may charge a share of any sum paid out by the insurer.

      If you are living on a flood plain or in an area prone to flooding, or have made a flood damage claim, you may be better off renewing your existing policy instead of seeking cover from a new insurer. This is because the Association of British Insurers (ABI) Statement of Principles guarantees that for areas of ‘significant’ flood risk, insurers will continue to offer flood cover to property, subject to certain conditions agreed with the Environment Agency and until 30 June 2013. ‘Significant’ is generally defined as no worse than a 1 in 75 year or 1.3% annual probability of flooding.

      In the current economic climate, it’s tempting to cut back on your expenses, but bear in mind that if you live in an area that is likely to flood and you let your buildings insurance policy lapse, you may find it difficult to get cover when you do decide to reinstate it.

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      All policies are different, so always shop around and double check with the provider selling the product whether it includes the features you need it to.


      • PPI is almost always optional – you should not normally be refused a loan if you decide not to buy it. If in doubt, ask your provider whether it is optional.
      • PPI only pays out for a set period of time, usually 12 months.
      • Bear in mind that many policies will not pay out for the first couple of months after you have made a claim and some may not backdate any payments. This may mean you need to consider how to cover these repayments before the policy starts paying them.
      • To claim on the unemployment part of the policy typically you must have been employed continuously by the same company for the last 12 months on a permanent contract.
      • Check carefully if you are self employed and require cover – the policy may not cover you.
      • Before you take out cover, the firm should give you a Policy Summary. This should set out the key features and benefits, as well as any significant or unusual exclusions or limitations. If you have any queries about these, you should ask the salesperson to explain the cover in more detail. This will help you make an informed decision on whether to take out cover. For example one of the significant limitations in some policies is the ability of firms to increase the amount of premium payable and reduce the amount of cover by giving you notice.
      • You may not be able to make a claim for an illness you already have or have had before. Make sure you check this before you take out the policy. This will be called a pre-existing medical condition and can include any medical conditions you have, even if they haven’t troubled you for a while.
      • Stress or back complaints, and possibly other conditions, may not be covered, even if you can’t work because of them. Again, it’s worth checking before you take out the policy.
      • You have a legal right to cancel the policy and get a full refund within 30 days of taking it out.

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      Payment protection insurance, or PPI, is insurance that will pay out a sum of money to help cover your monthly repayments on mortgages, loans, credit/store cards or catalogue payments if you are unable to work. This could be because you have an accident or sickness, become unemployed through no fault of your own, or if you died.

      This means that the insurance company will pay the monthly repayments (or a percentage of them) on your behalf for a fixed period of time if you become unable to work. It is sometimes known as ASU (accident, sickness and unemployment) insurance, Account Cover or Payment Cover.

      PPI is not the only product designed to protect against loss of income, and may not always the most appropriate – see Protecting income or borrowing. Although PPI can provide worthwhile cover against unexpected changes in your personal circumstances, you should bear in mind its limitations and exclusions.

      Where might you get it from?

      What are the main PPI (payment protection insurance) features?

      Payment protection insurance : what you should know ?

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        In this economic climate everyone is trying to save money wherever possible, but cutting costs on certain things can be dangerous, against the law and more costly in the long run. According to a recent YouGov survey commissioned by price comparison site, comparethemarket.com, a quarter of people in the UK admit to fronting(1) as a way of lowering their car insurance.

        Fronting occurs when the person listed as the main driver on the insurance policy is in fact a secondary driver. If the policy is for someone under 25 years of age for example, listing a parent as the main driver would make the policy cheaper. Fronting itself may not be a criminal offence, however may lead to the insurance being voided which will mean the driver will be deemed uninsured, which is against the law.

        Every penny counts in this economic climate. Almost a quarter (24%) of respondents who have fronted claim to have saved up to £100 in the past through fronting, while 34% of 35 to 44 year olds admit fronting has saved them up to £200 on their insurance policies. However, policy holders who are named as the main driver even though they are not need to understand the dangers of what they are doing. They risk the insurance policy being voided and if a claim needs to be made this will not be paid by the insurer, which may result in potential costs of thousands of pounds.

        Jeremy Moll, insurance expert at comparethemarket.com says: “Culprits of fronting mainly include young drivers or those who have just passed their driving test as they can save themselves a bit of money. However, this has the risk of your claims being refused and you being prosecuted for driving without insurance which could lead to a fine and penalty points and in some cases being disqualified from driving. It also prevents you from building up your own no claims bonus and prevents you from lowering your own insurance premium, which can cost you more in the long run.”

        Note: All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 2,016 adults. Fieldwork was undertaken between 9th and 12th May 2008. The survey was carried out online. The figures have been weighted and are representative of all GB adults (aged 18+)

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          As the UK braces itself for winter to take its toll on the health of the nation, new research out today reveals that colds and flu could put motorists across the country at risk.

          Research commissioned by esure car insurance estimates that over a third (35 per cent) of UK motorists have had an accident, near miss or momentarily lost control of their car as a result of driving when ill or on cold or flu medication.

          Whilst millions of people in the UK are likely to suffer from colds and flu over the coming months2, nearly a fifth of those polled (23 per cent) admitted that they have driven despite feeling too ill to do so and a worrying 82 per cent of motorists polled have taken their eyes off the road or hands off the wheel to deal with their symptoms.

          According to the findings, more than a quarter (26 per cent) confessed that streaming noses and sneezing fits have distracted them at the wheel as they have tried to find a tissue or handkerchief. Furthermore, 12 per cent of those questioned have put themselves and other road users at risk by reaching for and administering cold and cough remedies whilst driving.

          Almost two thirds (63 per cent) of motorists polled admitted that they had driven despite feeling tired and fatigued whilst a further 30 per cent said that their cold and flu symptoms had made them lose concentration.

          The research also revealed that over a quarter (27 per cent) of UK motorists fail to check the labels of prescription and over-the-counter drugs and medicines before driving. Fewer than one in five motorists (17 per cent) would check to see if medication could make them drowsy before getting behind the wheel.

          According to the research, the pressure to simply get on with life as normal is just too great for most people. Despite current concerns about the spread of illness in the workplace, a huge 85 per cent of those polled claim to just ‘battle through’ and continue to work and drive despite often being distracted and unfocused by their condition. Over half of those polled (55 per cent) admitted that this had been made worse by the fear of being seen to take time off during the recession.

          A further 59 per cent of respondents said that their workload and personal responsibilities meant that being ill is usually ‘not an option’.

          Mike Pickard, Head of Risk and Underwriting at esure, said: “As we start to experience a surge in colds and flu over the coming months it’s crucial that motorists check medication labels and avoid driving when they just aren’t up to it. The best advice is to simply not drive when feeling unwell but if journeys are essential, have tissues to hand and take any cough sweets or non-drowsy remedies before setting off.”

          Regional Differences
          Drivers in the South West are most concerned about being ill during the recession, with 63 per cent stating that they are less likely to take time off work to recover when ill because of this compared to 42 per cent of those in Eastern England.

          The research also showed that over a fifth (22 per cent) of motorists in Greater London do not always check whether the medication they are taking causes drowsiness, compared to 11 per cent of North East drivers.

          Gender Divide
          Female motorists polled have been more affected by illness when driving – 36 per cent said that they had felt nauseous behind the wheel while a third (33 per cent) admitted that they had felt too ill to drive but had done so anyway. However, just 26 per cent of male drivers admitted to having had felt nauseous behind the wheel and a further 27 per cent said that they had felt too ill to drive but still turned on the ignition.

          63 per cent of female motorists polled said that their work and personal responsibilities mean that being ill is not an option, while 55 per cent of male motorists said this.

          0 0

          Philippine insurers are likely to get hit with more than 236 million dollars in non-life claims alone from devastating floods caused by Tropical Storm Ketsana, an industry association said Friday.

          The storm, which killed 337 people in and around Manila and displaced 4.1 million others two weeks ago, was likely the costliest natural disaster to hit the country since the 1991 eruption of Mount Pinatubo, Philippine Insurers and Reinsurers Association official Mario Valdez told AFP.

          A preliminary survey of the industry’s four largest players as well as a medium-sized firm estimated that there would be one billion pesos’ (22 million
          dollars’) worth of claims for water-logged vehicles, he said.

          “The industry estimates property claims would be at least 10 times that,” Valdez said.

          A major pharmaceutical chain, a tobacco manufacturer, and a food processing company were among those hard-hit by the floods, he said.

          He gave no estimates from life insurance claims. Officials of the Philippine Life Insurance Association could not be reached for comment.

          Valdez said the 90 companies that make up the industry association have a combined net assets of 57 billion pesos (1.25 billion dollars) and could absorb the impact of the disaster.

          He said the local insurers themselves only carried 10 percent of the risk with 90 percent spread out to local and foreign reinsurance companies.

          With AFP

            0 1

            Vaccination programs against H1N1 swine flu are under way in the United States, China and Australia and will begin soon in parts of Europe.

            As people await their chance for immunization, here are some questions and answers about flu symptoms and what to do if they arrive before the vaccine does.

            What is influenza and what are the symptoms of H1N1 swine flu ?

            Influenza is a virus that infects the nose, throat and lungs. Seasonal flu typically kills 250,000 to 500,000 people globally, mostly the elderly but also very young children, pregnant women and people with chronic diseases.

            H1N1 swine flu is a new strain that appeared in March and became pandemic in June. Like seasonal flu, H1N1 is usually mild and requires no medical care. But H1N1 also differs from seasonal flu because it is more likely to infect children and young people than the elderly.

            Most H1N1 symptoms are the same as seasonal flu: fever, coughing or sore throat, runny or stuffy nose, headaches, body aches, chills and fatigue. But swine flu also can cause vomiting and diarrhea.

            Dozens of other viruses cause similar symptoms but one hallmark of influenza is a sudden onset of symptoms. An illness that develops gradually is likely to be from another virus.

            What if someone gets sick?

            People who get infected by the H1N1 virus may be contagious as early as one day before they show symptoms.

            Because H1N1 is now the overwhelming flu strain circulating globally, health authorities say anyone with influenza should assume it is the swine flu.

            Quick flu tests may not detect H1N1 so doctors are advised not to even bother testing people with flu-like symptoms.

            The U.S. Centers for Disease Control and Prevention recommends that people with H1N1 stay home from work, school, travel, shopping, social events and public gatherings until at least 24 hours after the fever has disappeared.

            Officials also urge the sick to avoid contact with anyone in a high risk group, including pregnant women, children and infants and people with chronic medical conditions including asthma, diabetes or heart disease.

            In the meantime, officials recommend frequent hand-washing, covering coughs and sneezes, and in some cases use of face masks to avoid spreading infection.

            The main remedies for mild illness are rest and ample fluids such as water, broth, sports drinks or electrolyte beverages made to prevent dehydration in small children.

            What if someone gets really sick?

            Medical attention is recommended if the sick person has difficulty breathing or chest pain, appears blue or purple around the lips, vomits and cannot keep liquids down or shows signs of dehydration including dizziness.

            The government recommends that people with chronic conditions who come into contact with an H1N1 patient seek treatment with antiviral drugs such as oseltamivir, which Roche AG and Gilead Science sell under the Tamiflu brand name, or zanamivir, an inhaled medicine produced as Relenza by GlaxoSmithKline.

            Pregnant women are urged to take special care, as they are always at heightened risk from flu and especially H1N1. More than 100 pregnant women have been admitted to intensive care with H1N1 in the United States this year and 28 have died.

            Parents should especially seek treatment for children with flu-like symptoms who cannot be awakened easily, who appear blue or gray, or who become ill again after getting better — as this last symptom may indicate they have a secondary bacterial infection that can be more serious after a bout of flu.

            0 3

            The British Insurance Brokers’ Association (BIBA) has appointed Northern Marine Underwriters Limited (NMU) as the carrier for its exclusive members’ scheme for marine cargo insurance.

            The scheme replaces two separate marine cargo options which were based upon a traditional route and an alternative wording not linked to institute cargo clauses.

            BIBA members will now benefit from a no-nonsense cargo wording underwritten using an internet trading platform, combining ease of administration with fast and efficient delivery of policy documentation and certificates, whilst retaining the flexibility to be tailored to individual customer needs.
            In addition, members will benefit from:

            • Enhanced commission
            • Access to specialist underwriters within NMU regional branch
            • Portfolio management system online
            • Claims notification online and administration of claims all in one location
            • Online production of insurance certificates

            The product offering, CargoSprint, is underpinned by the 2009 versions of the Institute Cargo Clauses, which were updated earlier this year to clarify coverage relating to loading and unloading risks and to soften provisions relating to insufficient packing, insolvency of shipowners and unseaworthiness.

            Commenting on the choice of NMU, Steve Foulsham, technical services manager at BIBA, said: “Although CargoSprint will be delivered electronically, our members still value the face-to-face advice and support that local underwriters can offer. NMU’s extensive branch network puts decision makers on our members’ doorsteps, and fits neatly with BIBA’s own regional structure.”

            Welcoming the partnership, Gerry Sheehy, underwriting director at NMU, said: “BIBA members have supported NMU for more than 25 years. Although technology has improved over that time, we have always taken the view that it should support rather than replace traditional underwriting methods and values.”

            BIBA relationship manager at NMU, John Watson, added: “In developing the product offering with BIBA, we have focused on simplicity– stripping away the ‘window dressing’ that adds unnecessary complexity to many cargo wordings – and contract certainty – delivering documentation as soon as the risk is bound.”

            BIBA Marine Cargo scheme launched with Northern Marine Underwriters

            0 1

            Aviva is improving its critical illness cover. It is increasing maximum sum insured to £2 million, extending the terms for which policies are available and widening the definitions covered for all new policies.

            The changes are being introduced following a review of products offered in the market and the mechanisms advisers use when valuing polices offered by competing providers. This prompted Aviva to establish a set of principles to make the process of developing its CI cover transparent and clearer for advisers to understand.

            The improvements to policy terms include:

            • Increasing maximum sum assured from £500,000 to £2m
            • Increasing maximum term assured from 25 to 40 years
            • Increasing maximum age assured to 75 years
            • Increasing number of conditions covered * (See notes to editors)
            • Improving definitions of existing conditions and removing unnecessary exclusions
            • Increasing scope and doubling the level of free child cover from £10,000 to £20,000.


            Michael Whyte, chief underwriter for Aviva, said            : “Critical illness protection helps financially support families during some of the most difficult times they can experience. The changes Aviva has introduced will increase consumer confidence by reducing complexity and making its cover more comprehensive.

            “There has been a move in the market to increase the number of conditions covered to make policies appear more attractive, but the problem is that this lures customers and financial advisers to compare policies solely on the number of conditions covered.

            “The Aviva approach is to follow these principles. We won’t add conditions unless they increase the scope of cover – for example, they are not already covered within other definitions. The conditions covered must have a significant impact on a person’s life even if rare and definitions must be able to be fulfilled under current medical practice.”

            Life and critical illness pays out a lump sum if you either die or are diagnosed with a critical illness that meets Aviva’s policy definition and survive at least 14 days. Aviva covers only the critical illnesses it defines in its policies and no others.

            Aviva offers critical illness cover only with term assurance and mortgage life insurance plans. A policy will pay out only if diagnosed during the term and there is no cash-in value.

              0 0

              The Association of British Insurers (ABI), the British Bankers Association, the Building Societies Association and the Council of Mortgage Lenders have reached an agreement with the Financial Services Authority (FSA) that sets out a framework for dealing with recent and possible future changes to policy terms and conditions affecting some Mortgage Payment Protection Insurance (MPPI) customers.

              The agreement is a response to FSA Chairman Lord Turner’s comments on MPPI at the ABI’s Biennial Conference in June 2009, where he expressed concern about increases in premiums, or reductions in cover, on MPPI policies during the recession.

              The financial services industry has reached this agreement with the FSA to reassure customers, minimise market confusion, maintain confidence in MPPI and ensure that people who have MPPI can maintain their cover, especially in these times of continuing economic uncertainty.

              Under the agreed framework, mortgage lenders and insurers will work together to review the terms and conditions of all their MPPI policies and associated sales and marketing materials to ensure that any potential future changes will fall in line with the agreement. Firms will contact all affected customers individually to let them know what the changes are and how their policy will work in the future.

              Firms will also review any premium increases and other changes that resulted in cover being cancelled or reduced since 1 January 2009.  Any of these changes that are found not to be in line with the agreement will be reversed.

              The agreement specifies that all reviews and any actions relating to past, current and future policies, including any premium refunds that might be due, should all be completed by the end of June 2010.

              Customers do not need to take any action at all at this stage.  If their policy is affected in any way, their mortgage lender or insurer will contact them individually.

              Speaking on behalf of all four trade associations and their members, the ABI’s Director General, Stephen Haddrill, said:

              “MPPI is an important product and is playing a key part in helping to keep people in their homes during the recession. It can offer a lifeline to people who may otherwise have faced losing their home. These policies provide extremely valuable cover for customers and this agreement is all about ensuring that they continue to do so. As with all insurance, premiums need to reflect the risk but any changes not only need to be fair which we believe they are, but also to be seen to be fair.

              “Lenders and insurers will work together on a thorough review of their policy terms and conditions, marketing material and any changes made, such as a premium increase, since the start of 2009 and make any refunds in line with the agreement.
              “MPPI customers do not need to take any action, although it is important that they continue to pay their premiums to ensure that their cover continues. Their mortgage lender or insurer will contact them if their policy is affected in any way.”

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