Sunday, November 24, 2024
Home Authors Posts by George Stobbart

George Stobbart

Profile photo of George Stobbart
1954 POSTS 0 COMMENTS
http://www.news-insurances.com

0 0

Swiss Re today announced that it has received a composite licence from Bank Negara Malaysia to write Retakaful business, and opened a dedicated Retakaful operation in Kuala Lumpur.

The composite licence will allow Swiss Re to offer Family and General Retakaful solutions to Takaful clients worldwide. The dedicated Retakaful operation in Kuala Lumpur, headed by Marcel Omar Papp, signals a clear commitment to the development of this market.

Mr Papp, Head of Swiss Re Retakaful said: “Swiss Re has been offering Family Retakaful solutions in the Middle East for the past three years. This new licence will allow us to consolidate and enlarge the scope of our efforts by also providing General Retakaful solutions.

Takaful is set to grow and we look forward to deploying our expertise and capacity to meeting the needs of existing and new clients for Shari’a (Islamic law) compliant Retakaful,”

Swiss Re also operates a separate reinsurance branch in Kuala Lumpur.

Islamic insurance
 Takaful is a system based on the principle of mutual assistance and voluntary contribution, where risks are shared collectively and voluntarily by a group of participants. It has been developed as a Shari’a compliant alternative to conventional insurance which contains impermissable elements such as uncertainty and interest.

It involves:

  • the creation of a Shari’a Supervisory Board that oversees the Takaful operations and compliance with the Shari’a;
  • the creation of a mutual pool for the collection of contributions and payment of claims;
  • the sharing of surplus from the mutual pool amongst participants;
  • the avoidance of investment in non-Shari’a-compliant assets.

Future prospects
 In sigma report No 5/2008 “Insurance in emerging markets: overview and prospects for Islamic insurance”, Swiss Re revealed that the average annual growth rate for Takaful between 2004 and 2007, was estimated at 25% (adjusted for inflation), versus 10.2% of that in the conventional market.

Takaful premiums of approximately USD 1.7bn were written in 2007, and it is estimated that the global Takaful market could reach USD 7bn by 2015. The 1.5bn Muslims around the world, and also non-Muslims interested in the principles underpinning Shari’a-compliant products, represent a growing client segment for the insurance sector.

0 0

Aviva the world’s fifth largest insurance group, announces today that it intends to list on the New York Stock Exchange (“NYSE”) and plans to commence trading on 20 October 2009. Aviva has completed the registration process with the Securities and Exchange Commission (“SEC”) and has received authorisation from NYSE to list.

  • Aviva to list on New York Stock Exchange on 20 October 2009
  • Supports Aviva’s significant US shareholder base (over 20% in the US)
  • Enhances Aviva’s presence in the US long-term savings market
  • No new share capital to be issued

Aviva will establish a level 2 American Depositary Receipt programme in conjunction with Citibank and will trade under the ticker symbol “AV”. No new Aviva ordinary shares will be issued in connection with the listing and Aviva will retain its current primary listing on the London Stock Exchange.

Over 20% of Aviva’s shareholders are in the US and the listing gives Aviva further access to a wider potential shareholder base; it gives US investors a more convenient and cost efficient means to hold Aviva’s shares and allows Aviva to attract and retain staff outside the UK through competitive incentive programmes.

Aviva has established a competitive position in the US, the world’s largest savings market, where it is the leading provider of indexed annuity and indexed life insurance products. The listing will give further momentum to Aviva’s brand in the US as it looks to capture growth in the retirement market, accelerate life insurance sales and benefit from the country’s attractive demographics over time.

Aviva has been able to complete the preparations for listing as part of its ongoing global finance programme. This enhances Aviva’s financial processes, controls and risk management frameworks, bringing with it Sarbanes-Oxley compliance and broader risk management benefits for the group.

Andrew Moss, group chief executive commented: “The US is a strategically important market for Aviva. It is the largest savings market in the world and represents a significant growth opportunity for us over the long term. Listing now is a natural step for Aviva as more than 20% of our shareholders are in the US and we expect that number to increase.”

0 0

Aviva  is proposing a series of reforms to the pension system to make retirement saving more flexible, relevant and attractive to UK savers.

Aviva research into consumer attitudes to saving and retirement has identified widespread confusion among the population when planning for retirement. Building on this insight, Aviva proposes the following:

  • Allowing early access to pension savings before retirement
  • Introducing flat-rate tax relief on pension contributions
  • Replacing pension credit with higher basic state pension
  • Including state pension statements with personal accounts
  • Introducing alternative workplace savings plans.

Encouraging private savings

Nearly half (47%) [1] of surveyed pensioners in their first year of retirement said they wished they had saved more for retirement. To make it easier to save, Aviva proposes the following reforms:

  • Allow early access to pension savings: Tying up cash until retirement is a significant barrier to pension saving. Nearly all (85%)[2] of people surveyed manage their finances within a time horizon of one year or less.Aviva proposes that pension savers are allowed to withdraw a portion of their pension savings before retirement – removing a psychological barrier to long-term saving. To ensure retirement plans of pension customers remain protected, Aviva proposes this change is introduced with a set of simple rules developed with consumers, the industry and HMRC.
  • Harmonise tax relief: UK customers are aware that pension savings do enjoy tax benefits, but nearly all (83%)[2] people surveyed do not understand how tax relief works for them.  Aviva proposes that a harmonised rate of tax relief (for example 30%) is adopted to replace the confusing higher and lower-rate tax relief system. This change would benefit and encourage the 85% of people who are basic-rate taxpayers, and could add more than 14% to the value of their pension fund at retirement. A 22-year old on a starting salary of £20,000 could have an additional £47,000 in their pension fund at age 65.The change would be neutral for many of the 15% of people paying higher-rate tax at retirement. In many of these cases, the loss of additional tax relief in later life (ie down from 40% to 30%), would be compensated by the enhanced tax relief earlier in life (ie up from 20% to 30%). See notes to editors.
  • Introduce alternative work-based savings plans: Many young people do not recognise the benefits of saving into a pension when retirement can be more than 40 years away. To start a savings habit among the young, Aviva proposes employers are encouraged to provide shorter-term work-place savings for those under 25 as an alternative to pensions (such as employer-sponsored ISAs).

Simplifying the state pension

Some 63%[2] of people surveyed believe the basic state pension will be their first or second source of retirement income. But more than two-thirds of people don’t know or overestimate the value of the state pension. Aviva proposes:

  • Abolish pension credit and introduce a £130 basic state pension for all: The pension credit, introduced in 2003, has supported many in retirement but the system has flaws. Only 59%[4] of people approaching retirement are aware of pension credit and it is estimated that one-third of those entitled are failing to claim[5].Aviva proposes that pension credit is replaced with a £130 basic state pension for all, funded by new national insurance contributions for those above a certain income in retirement.The revised system would be easier to understand, help those most in need and be revenue neutral to the Government (plus arguably removing the approximate £200m it currently costs to administer pension credit every year.[6]

  • Introduce an annual state pension statement with Personal Accounts: The Pension Service responds to 400,0007 requests for individual state pension forecasts every year – covering about 1% of the working population. Aviva recommends that annual statements for Personal Accounts – a Government-sponsored workplace pension available from 2012 – include a forecast of the individual’s state pension benefits. A yearly state pension forecast sent with Personal Account statements will powerfully illustrate the impact of not saving enough for retirement to an expected nine million new customers.

Paul Goodwin, head of pensions at Aviva, said: “Aviva wants pensions to be built around the needs of the modern, more flexible workforce, not the workforce that existed 30 years ago. Our proposals will make pensions saving simpler, more attractive and encourage people to save during their working life for the time when they are retired. They simplify pension rules and introduce much-needed flexibility when it comes to accessing money saved into a pension.”

Worked examples – How harmonised tax relief affects savers’ pension fund at age 65

Starting salary at age 22 (£) Size of pension fund under current two-tier tax-relief system

 Size of pension fund under harmonised tax relief system

 Difference (£) Difference (%)

10,000

165,398

189,027

+ 23,629

+ 14.3%

15,000

248,098

283,540

+ 35,442

+ 14.3%

20,000

330,797

378,054

+ 47,255

+ 14.3%

25,000

448,585

472,568

+ 23,983

+ 5.35%

30,000

571,664

567,081

– 4,583

– 0.8%

Assumptions used in calculations:

  • Tax relief harmonised at 30%.
  • Age at which customer starts investing in pension, 22
  • Age at which customer’s real salary stops increasing, 55
  • Real salary increase each year, 2%
  • Percentage of salary contributed to pension, 10%
  • Inflation, 2.5%
  • Return on pension investment, 7%
  • Annual management charge on pension, 1%
    – Basic-rate taxpayers use the harmonised relief to increase pension payments rather than take-home pay.
  1. Aviva in-house research of 1,000 people in the UK who have retired in the past two years, August 2009.
  2. Aviva in-house research, in conjunction with ICM Research, of a representative sample of 1500 18-to-64 year-olds, September 2009.
  3. Harmonised Tax Relief calculations and assumptions – see table above
  4. Syndicated “At retirement Survey”, in conjunction with Marketing Sciences, of 1,100 50+ year olds, August 2009
  5. Age Concern: www.ageconcern.org.uk/AgeConcern/pension-credit.asp
  6. House of Parliament, Hansard, July 2008: www.publications.parliament.uk
  7. House of Parliament, Hansard, March 2009: www.publications.parliament.uk

0 0

Mexican researchers say they have some evidence that the ordinary seasonal flu vaccine may offer some protection against the new pandemic H1N1 swine flu — contrary to other studies.

They found that people who had been vaccinated against seasonal flu were far less likely to be sick or to die from H1N1 than people who had not been immunized against seasonal flu.

“These results are to be considered cautiously and in no way indicate that seasonal vaccine should replace vaccination against pandemic influenza A/H1N1 2009,” Lourdes Garcia-Garcia and colleagues at the National Institute of Public Health in Cuernavaca wrote in the British Medical Journal.

But they said the findings might offer some good news for people who have been vaccinated against seasonal flu, especially as governments are just beginning to distribute newly made swine flu vaccines.

The new H1N1 swine flu virus is a very distant cousin of the H1N1 seasonal flu virus, which is included in the mixture provided every year in the seasonal flu vaccine.

Most studies have shown the annual vaccine provides little or no protection against H1N1, likely because it is very different.

One study in Canada suggested that in fact people who got seasonal flu vaccines may be more likely to become infected with H1N1, although the World Health Organization and the U.S. Centers for Disease Control and Prevention both expressed doubts about the findings.

Garcia’s team studied 60 patients with confirmed swine flu and 180 similar people with other diseases being treated in the Mexico City area.

The Mexican government distributes seasonal flu vaccine.

Only eight people who had been vaccinated against seasonal flu were among the swine flu cases, the researchers reported. They found that 29 percent of unvaccinated people in the study became infected with H1N1, versus 13 percent of vaccinated people.

None of the vaccinated people died, but 35 percent of swine flu patients who died had not been vaccinated against seasonal flu, they found.

“Seasonal vaccination might protect against the most severe forms of the disease,” the researchers wrote.

Menno de Jong of the University of Amsterdam and Rogier Sanders of Cornell University in New York said the study shows some protection but said what the world really needs is a universal flu vaccine that protects people against all strains.

Currently, the seasonal vaccine must be formulated every year because influenza viruses mutate, and new strains, such as the H1N1 swine flu, require a completely new vaccine. The new H1N1 vaccine took five months to formulate and manufacture.

0 0

Belgian-based financial services group Fortis said on Tuesday it would sell its Luxembourg non-life activities to Luxembourg insurer La Baloise for 23 million euros ($33.88 million).

Fortis said in a strategic review last month it planned to divest fringe activities.

All businesses would have to show they could reach a critical size, contribute to earnings and generate returns exceeding the cost of equity.

“It is in this context that Fortis has decided to divest Fortis Luxembourg IARD (the Luxembourg non-life activities), Fortis said in a statement.

The group would focus on further developing its life operations in Luxembourg, it added.

The transaction is subject to regulatory approval.

    0 1

    You can buy insurance yourself or with the help of a broker, but either way you’ll get key policy information about the insurance and what it covers.

    Generally, firms selling insurance and those providing insurance cover (underwriting the risk) have to be regulated by us, or be the agent of a regulated firm. There are some exceptions, for example the sale of extended warranties on non-motor goods (such as on electrical goods) where the person selling the insurance is also providing the goods.

    Regulated firms and their agents are put on FSA Register and have to meet certain standards. Always make sure that the firm you use is on FSA Register before handing over your money. If they aren’t regulated by us and things go wrong, you won’t have access to complaints and compensation procedures.

    Buying without advice

    You don’t have to get advice before you take out an insurance policy, and UK firms that sell insurance without advice still have to follow the rules. But it is up to you to decide whether the policy is suitable for you. You may have less grounds for complaint if the product turns out to be unsuitable.

    Comparison websites

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

    Some insurance comparison websites may ask you fewer questions to speed up the process, and instead make a number of assumptions about you. Always check the assumptions made about you and correct them where necessary.

    Most comparison websites will automatically pass your information on to a broker or insurer. Although this means you don’t have to provide them again, you should check that the correct information has been provided to the broker or insurer. If anything is incorrect you should either change the information on the broker or insurer’s website, or contact them and ask them to change it.

    So when using a comparison website make sure:

    • adverts about the site don’t make misleading claims about their market coverage – none of them cover the whole market so if they claim to this is unlikely to be true;
    • you fully understand what savings you can make if the firm is advertising what looks like an attractive rate;
    • the assumptions made about you are accurate and the same as the ones on the insurer’s quote; and
    • you understand what excesses you might have to pay.

    What information will you get?

    When you contact an insurance broker they will give you:

    • details of the service they are offering you – see Step 1; and
    • information about the insurance policy being offered to you – see Step 2.

    Step 1

    When you contact an insurance provider, they will give you details of the service they offer.  They will tell you:

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

    Use this document, or information to shop around to get the service you want at the price you’re happy with.

    Step 2

    Once you’ve discussed what you need and answered all the questions about yourself and what you want to insure, the intermediary, insurance company or the firm selling you the insurance will give you key policy information. This sets out the essential facts. Ask questions if you don’t understand anything as misunderstandings could lead to the insurance company refusing to pay out when you claim.

    The policy information will set out:

    • what the insurance policy actually covers;
    • what it doesn’t cover;
    • any limits or restrictions; and
    • other important features you need to know before you make up your mind.

    Make sure you get this and that you read and understand it. Ask the provider or insurance company to explain anything you don’t understand.

    Use this document to shop around and compare like with like. Another policy may be cheaper but does it offer the same cover?

    Top tips

    1. Check that the firm is on FSA Register
    2. Use the policy information to compare other policies
    3. Answer the questions as best you can – it will help avoid misunderstandings.
    4. Ask questions if something is not clear.

      0 1

      Groupama Insurances was awarded Gold Status and Groupama Healthcare, a subsidiary of Groupama Insurances specialised in health insurance, is nominated for four Health Insurance “Oscars”

      The UK subsidiary has been awarded the extremely prestigious Gold Status by the accreditation organisation Investors in People (IIP). This highest honour was awarded following interviews with more than 100 Groupama Insurances employees chosen at random, conducted in the field by IPP.

      The assessment was based on 10 indicators. More than 165 criteria relating to internal practices had to be met and Groupama obtained top marks for half of them.

      The awarding of the Gold Status confirms the calibre of Groupama Insurances’ human resources policy and its progressive approach.

      Groupama Healthcare, a subsidiary of Groupama Insurances specialised in health insurance, has been shortlisted for the prestigious Health Insurance and Protection Awards handed out every year by the brokers.

      With four nominations in the categories “Best Group Private Medical Insurance Provider”, “Best Use of E-Commerce”, “Best for Customer Service” and “Health Insurance Company of the Year”, Groupama Healthcare is demonstrating that the quality of its products and services is widely acclaimed within the industry.

      Note:

      “Investors in People” is a standard originating in the UK, designed and developed in the 1990s by a group of employers, employees and training organisations with the aim of making companies more competitive by developing the skills of their personnel in keeping with the company’s objectives.

      0 0

      The UK Branch of HDI-Gerling, the German industrial insurer, has selected Friends Provident to supply a new group stakeholder pension scheme for its UK employees.

      The new scheme replaces the company’s existing GPP scheme, provided by Aviva, and follows the closure of the company’s final salary scheme. Through the
      Friends Provident scheme, HDI-Gerling’s UK employees will have immediate access to a single pension solution tailored directly to their individual needs.

      HDI-Gerling, following an extensive review of its existing arrangements, selected Friends Provident to implement and manage its new stakeholder scheme.

      All of HDI-Gerling’s employees are eligible to join the new scheme either with immediate effect or at a chosen time in the future. To ensure a seamless transition of contributions for those employees who wish to join the new scheme, Friends Provident has overseen the changeover process including staff communications.

      Richard Taylor, UK Managing Director commented: “HDI-Gerling is committed to providing a competitive level of benefits to our employees. Our new consolidated pension plan, which has been specifically created for HDI-Gerling by Friends Provident, offers a straightforward joining process that we are confident will encourage take-up. The new support programme, which Friends Provident has designed for our employees, includes a selection of online management tools that will enable them to take full control of their own retirement.”

      Russell Welsh, head of UK corporate pensions sales for Friends Provident added: “We are delighted to support HDI-Gerling in providing its employees with a consolidated, flexible pension offering. In today’s climate particularly, it is encouraging to see an employer fully embrace flexible pension arrangements. We look forward to working with the HDI-Gerling team to refine our proposition to support their efforts in this.”

        0 2

        Aviva today announces a number of senior management appointments and the creation of a new organisation structure for its UK business with effect from 1 January 2010.

        Over the past two years Aviva’s UK life and general insurance businesses have been reshaped under the leadership of Mark Hodges and Igal Mayer respectively. This phase of the transformation is almost complete. Significant improvements in customer service have been delivered, profitability has increased and the businesses are on track to deliver cost savings of £450m by 2010.

        Aviva now plans to bring the two UK businesses closer together under a single UK CEO to serve customers more effectively across its life and general insurance businesses, bring further scale benefits and underpin future growth.

        The UK business will be led by Mark Hodges who will take up the new and enlarged role of CEO, UK. Mark is currently CEO, UK Life, and a main board director of Aviva plc. Prior to this, Mark was managing director of Aviva’s UK general insurance business and also spent seven years as its CFO.

        This change builds on the successful migration to the Aviva brand in the UK and will bring further benefits of scale, thus positioning the company for profitable growth as the UK economy recovers. The underlying strategy of the two businesses remains unchanged.

        In UK Life Aviva has built a leading position across a broad product range gaining market share through the economic downturn. It has gained competitive advantage through its financial strength and actions to simplify the business and improve profitability.

        In UK General Insurance Aviva has significantly improved the quality of earnings and created a platform for future growth by simplifying the business, reducing costs, achieving scale benefits, and taking a disciplined approach to underwriting and distribution.

        Andrew Moss, Aviva group chief executive, said: “Igal and Mark have done a great job in getting the best from our UK businesses and making them fit for the future. The time is now right to bring them closer together to maximise their full potential in our home market.

        “I’m delighted that Mark Hodges will lead Aviva’s UK business in the next stage of its development. Mark brings a rare mix of operational and strategic expertise and an unparalleled knowledge of the UK market. He has a strong customer focus and a great track record in delivering strong financial and operational results.”

        North America
        Igal Mayer, currently CEO, UK General Insurance, is to become CEO, North America, and will lead Aviva’s businesses in the USA and Canada to the next stage of their development. The US is the largest life and savings market in the world and Aviva is the leading provider of indexed life and annuity products in this market. In Canada Aviva is the second largest general insurer. Before taking up his current role Igal was CEO of Aviva’s Canadian business.

        Igal will succeed Tom Godlasky who is to retire from Aviva having successfully doubled the scale of the US business a year ahead of schedule, following the acquisition of AmerUs in 2006. Tom joined the group in 2006 from AmerUs where he was chairman, president and CEO.

        Andrew Moss continued: “I’m delighted that Igal Mayer will lead our life and general insurance business across North America. Igal has a deep knowledge of the global general insurance market and good experience of managing country-wide distribution relationships. The North America region represents a significant growth opportunity for Aviva over the long-term and Igal’s vision and strong leadership will be a great asset as we take the business to the next stage of its development. Tom is retiring having made a significant contribution to Aviva and will leave with our good wishes for his retirement. He achieved our goal of doubling the scale of our US business a year ahead of plan and has created value for Aviva by bringing our US and Canadian businesses together in North America. This is a great position from which we can build in the future.”

        Chief Risk Officer
        Robin Spencer will take up a new role on Aviva’s executive committee of chief risk officer reporting to Andrew Moss. Robin is currently CEO of Aviva’s Canadian business and was previously CFO in Canada. Prior to that, he was global finance transformation director.

        • Mark Hodges, 44, will become CEO, UK. Mark is currently CEO, UK Life.  Mark joined Aviva in 1991 and became a member of the Aviva plc board in 2008.
        • Igal Mayer, 48, will become CEO, North America. Igal is currently CEO, UK General Insurance.  Igal joined Aviva in 1989.  In his new role Igal will continue to report to Andrew Moss and will remain a member of the group’s executive committee. Before taking up his current role Igal was CEO of Aviva in Canada.
        • Tom Godlasky, 53, will retire from Aviva. Tom is currently CEO, North America, a role he has held since July 2007.  He was previously CEO of Aviva’s US business having joined the group from AmerUs when Aviva acquired the company in 2006.  Tom is a member of the group’s executive committee.
        • Robin Spencer, 39, will become chief risk officer and a member of the group’s executive committee. This appointment is subject to regulatory approval. Robin is currently CEO, Canada. His previous roles include CFO for Aviva in Canada and global finance transformation director. He joined Aviva in 1995.

        0 0

        DUAL Corporate Risks, a specialist in providing directors & officers and Professional Indemnity Insurance solutions for mid-market businesses and professionals, is to open its Irish branch on 6 October.

        The new office in Dublin will be headed up by Brian Martin who joins DUAL from AIG in Ireland.  Assuming the role of National Underwriting Manager for Ireland, Brian Martin a PI specialist, will be responsible for the development of DUAL’s Irish business and broker relationships in the region. He will report to Managing Director Mark Bridges and will be supported by the company’s head office in London and its national business unit in Manchester.

        Commenting on the announcement, Russell Kilpatrick, Executive Chairman of DUAL Corporate Risks, said: “Our decision to expand into Ireland demonstrates our commitment to territorial expansion as well as our ongoing organic growth strategy. The market in Ireland has potential and will complement our existing risk profile of providing local solutions in local markets.”

        “Brian’s indepth knowledge of the local market, relationship with brokers both in Dublin and across regional Ireland, along with his underwriting expertise will be a great asset to us. We are confident that we will be successful in providing D&O and PI products specifically tailored to meet the needs of the middle market in the region.”

        Brian Martin added        : “It is with great pleasure that I join the DUAL team to spearhead this new operation.  DUAL Ireland will be well equipped to respond to Irish brokers’ needs and I look forward to being able to offer DUAL’s fresh proposition to the Irish broker market.”

        DUAL is already recruiting further members for its Dublin team and is located at 33 Fitzwilliam Square, Dublin 2.   Tel: +353 (0)1 669 4640 www.dualireland.com

        0 4

        Desperate Brits are being driven to extreme measures behind the wheel because of the recession, according to moneysupermarket.com. Research from the UK’s price comparison site reveals more than a million (1,020,000) motorists would consider staging a motor accident in order to make a claim on their insurance. Worryingly 340,000 motorists admit to having already successfully done so1.

        The insurance industry separates this type of motor insurance fraud into three categories:

        • ‘Staged’ motor accidents; two vehicles deliberately knock into each other in order to claim on insurance.
        • ‘Contrived’ motor accidents; a fabricated claim for a motor incident that never took place.
        • ‘Induced’ motor accidents; a deliberate action by a motorist to force an innocent driver to crash into them, such as braking suddenly so they are hit from behind.

        The research found men are twice as likely to have staged a motor accident (five per cent compared to two per cent of women). Twenty-somethings pose the most danger on the roads, with three per cent admitting to having already successfully made a fraudulent motor claim, and a further six per cent would consider it. The results also reveal Londoners as the riskiest behind the wheel – six per cent have or would consider committing motor fraud, compared to just two per cent in Northern Ireland and Wales[1].

        Steve Sweeney, head of motor insurance at moneysupermarket.com said        : “Desperate times do often call for desperate measures, but surely this is a step too far for British motorists. We have all been affected by the recession in one way or another, but crashing for cash is not only illegal but wilfully endangers the lives of others.”

        According to the ABI fraudulent insurance claims cost the industry over £4 million every day or £1.6 billion per year – and adds nearly £40 to the average annual premium paid by honest policyholders. It estimates over 22,500 fraudulent staged and induced motor accidents took place across the country between 1999 and 2005.[2]

        Steve Sweeney continued        : “Our research reveals there are many more motorists causing this type of fraud and getting away with it than the industry is aware of. Organised motor fraud not only costs the insurance industry millions, but risks the safety of innocent drivers, passengers and pedestrians.

        “Any motor insurance claim proved to involve an organised accident will be considered as fraudulent by an insurer, and is likely to have drastic, long-term affects on your motoring as a consequence. If found guilty, an official “fraud mark” could be added to your license; this will prompt your insurer to void existing cover and probably refuse you cover in the future[3].

        “Regardless of how tempting it may seem to get your hands on some extra cash, carrying out organised motor fraud whether it is ‘staged’, ‘contrived’ or ‘induced’, it really isn’t worth the risk. After all, it could end up costing you more in the long run.”

        [1] Research undertaken by Opinium Research based on an online poll of 1,509 British drivers in August 2009. Results have been weighted to nationally representative criteria. www.opiniumresearch.com.

        RAC 2008 Report on Motoring: http://www.rac.co.uk/report-on-motoring/report-one/how-motoring-has-changed.htm

        34 million vehicles currently on our roads: one per cent of 34 million = 340,000 / three per cent of 34 million = 1,020,000, or over one million.

        [2] Association of British Insurers
        http://www.abi.org.uk/Media/Releases/2007/05/Fraudulent_insurance_claims_now_top_4_million_a_day_says_the_ABI.aspx

        [3] Views of insurance providers on organised motor fraud:

        Esure:

        • On the fraudster: If found guilty of causing a staged accident, it would be very difficult to obtain insurance through any standard underwriter in future, being convicted for both fraud and potentially endangering life. The crime would be logged by both the police and the various insurance fraud databases, and would only be insurable via a specialist underwriter.
        • On the victim: If a victim of a staged accident, any insurance claim would depend on whether the guilty party is convicted and the type of insurance they have.

        Swiftcover: Tina Shortle, Marketing Director for swiftcover.com

        • On the fraudster: Assuming the claim was instigated against swiftcover.com by a current swiftcover.com policyholder, and Swiftcover had confirmed evidence of fraud which resulted in the repudiation of the claim in its entirety, the policyholder would have their policy voided from the date of the claim. The insured would not then be able to get another policy with swiftcover.com.
        • If they declared all material facts to another insurer when applying for a new policy, as is required, then they would have difficulty obtaining another policy due to the requirement to disclose “whether you have previously been refused insurance or had a policy cancelled.”

        • On the victim: If an innocent victim of motor insurance fraud, who would pay for the damages would depend on how the claim was settled. The incident would still need to be declared as a claim and, depending on how the claim was settled, it would need to be affirmed by swiftcover.com as a fault or non-fault claim. A fault claim could potentially result in a higher premium.
        • Assuming that the staged accident was one that induced a victim – the swiftcover.com policyholder – to crash, such as a “slam-on”, then we have an obligation under the Road Traffic Act to settle their claim. If our policyholder was the victim of a suspected fraud we would share this information with the other party’s insurer, who may repudiate their policyholder’s claim, but would be obliged to settle the loss of the innocent victim – the swiftcover.com policyholder. In these circumstances, if the other party’s insurer settled the claim, then we would treat this as a non-fault claim so the swiftcover.com policyholder’s no claims discount would not be affected and their premium would not increase as a result of the claim.
        • There may be a situation in such a claim whereby the other party’s insurer may wish to repudiate the claim in its entirety under the defence of fraud, although they would have to have established proven collusive links between the parties. In such a situation, if swiftcover.com disagreed with the evidence then we would settle our policyholder’s claim and attempt to recover the costs from other party’s insurers, which could affect our policyholder’s no claims discount and subsequently their premium.
        • If the claim went to court, the courts would only allow the repudiation of relevant parts of the claim for fraud if it agreed with the evidence, and it is likely that there would be a direction to settle the innocent victim’s claim, in which case their NCD would be reinstated

        0 0

        Aon Taiwan today announced that it has retained the ranking of the best overall insurance broker for the fifth consecutive year as reported by Risk Management, Insurance & Finance Magazine. The 2009 result comes from the findings of a survey of the top 1,000 corporations operating in Taiwan and was announced in the magazine’s October 2009 issue.

        The poll covered two major sections. First, respondents were asked to select those major criteria used in selecting their broker. The study indicated that the top 1,000 companies would select their broker based on the following capabilities:

        1. Assistance on claims resolution
        2. Understanding of the market
        3. Negotiation power
        4. Enthusiastic services
        5. Risk management services
        6. Access to the markets/insurers
        7. Reinsurance arrangement/strategy
        8. Proven track record
        9. Company size
        10. Brand awareness

        The magazine also requested the respondents to rank all major Taiwanese insurance brokers in terms of:

        1. Reputation
        2. Service quality
        3. Level of professionalism
        4. Most recommended broker

        Aon Taiwan was given the highest rating in all four categories and was named as the best overall insurance broker in the Taiwan market.

        Mr. Michael Shih, Chief Executive Officer of Aon Taiwan, commented, “We are delighted to have been consistently voted as the number one insurance broker by the Taiwan business community. This is a wonderful recognition of our employees’ passion and enthusiasm with which we service our clients.”

        “I take pride in knowing that our insurance services are greatly appreciated and recognized by the top 1,000 Taiwan enterprises,” added Ms. Lillian Lai, Chief Commercial Officer of Aon Taiwan. “I am proud to be on board and to work with a talented team. There are great business opportunities out there for Aon to demonstrate how we provide distinctive value to clients.”

        0 0

        Broker insurer MMA Insurance has reinforced its commitment to improving its claims proposition with the appointment of Andrew Wooster as Operational Claims Manager.

        Reporting to MMA’s recently appointed Claims Director Bob Perry, Mr Wooster will have responsibility for the operational aspects of MMA’s claims department ensuring business priorities are met. Included in his role will be the management of a multi-discipline change programme, which will enhance the MMA claims customer service offering. In addition, he is tasked with developing and delivering MMA’s credit hire strategy as well as ensuring that productivity is maximised across the claims function.

        Mr Wooster joined MMA in 1993, since then he has held positions within finance, operational management, customer services and claims, and most recently within MMA’s outsourced motor claims operation.

        Commenting on the appointment, Mr Perry said:  “This new role is essential to ensure the effectiveness of our combined claims team and will allow the technical leaders to focus on the effective handling of claims across a broad product base.”

        “Indeed it is no secret that an excellent claims service is critical to our success in the SME market. Andrew’s appointment will be hugely beneficial to both MMA and our brokers.”

        Mr Wooster added: “Having been with MMA for 16 years, I am well aware of the areas where our service can be enhanced to ensure the needs of our brokers and policyholders are met. I look forward to the new challenge of helping to become a leading commercial lines player.”

        0 0

        PartnerRe Ltd. today announced that Roberto Mendoza, a former board member of PARIS RE, has been appointed to PartnerRe’s Board of Directors.

        The additional Board seat was approved by PartnerRe’s shareholders at a Special General Meeting of Shareholders on September 24, 2009, and Mr. Mendoza’s appointment to that seat has now taken effect following the successful close of the block purchase of a majority of PARIS RE’s common shares outstanding.

        Mr. Mendoza, aged 64, spent more than 30 years at J.P. Morgan where he was vice chairman of the board of that company from 1990 to 2000. He is the former Chairman of XL Capital Ltd. and Egg plc and was a non-executive director for ACE Limited, Banesto S.A., the BOC Group plc, Continental Airlines, Inc., Mid Ocean Limited, Prudential plc, Reuters plc, the Travelers Group, and Vitro S.A.

        Currently, Mr. Mendoza is a non-executive director for Manpower Inc. and Western Union, Inc. and a principal in the firm, Deming Mendoza. Mr. Mendoza holds a B.A. from Yale and an M.B.A. (Baker Scholar) from Harvard Business School.

        PartnerRe’s Chairman John Rollwagen said : “Roberto brings with him considerable experience in corporate finance which will further deepen the financial expertise of the Board. As a former member of PARIS RE’s board we extend to him a warm welcome and look forward to working with him at what will be a particularly important time as we integrate these two companies.”

        0 0

        Insurer Coventry Health Care Inc said on Monday it will buy Preferred Health Systems to strengthen its presence in the Midwestern United States.

        Wichita, Kansas-based Preferred Health is a commercial health plan that has more than 100,000 members for whom it assumes full insurance risk, and 20,000 members for whom it only provides administrative services.

        Coventry will serve more than 1 million members in its Midwest region with Preferred Health, which is a subsidiary of Via Christi Health System, Inc.

        Financial terms of the deal were not disclosed. The deal is expected to close in the next 90 to 120 days and be neutral to earnings in the first year after closing.

        0 0

        As recently-finished A-level and university students embark on their gap years, worrying new figures released today by InsureandGo, the travel insurance provider, reveal that one in eight of Britain’s young backpackers (12%) have been a victim of theft while on their travels. A further 5% of Britain’s young backpackers have been mugged while they have been abroad.

        The study also reveals that male backpackers are much more likely to be victims of mugging than females. 7% of male backpackers claim to have been a victim of mugging, compared to only 2% of females. 12% of males have been victims of theft compared to 11% of females.

        Perry Wilson, founder of InsureandGo, said: “For many young people going travelling is the best time of their lives, but it’s all too easy to forget that some places are full of unscrupulous people who are waiting to prey on backpackers. Young people shouldn’t be put off having fun, but they should take care not to put themselves in dangerous situations and they should plan their trip as carefully as possible. We would urge travellers to read about their destinations beforehand and make sure they have comprehensive travel insurance before they depart.”

        Regionally, backpackers from the North West are the most likely to have been victims of theft while travelling (16%), with those from Wales & the West next most likely (13%).

        Region

        North West          :                     16%

        Wales & West      :                     13%

        Midlands              :                     12%

        North East / Yorks & Humber : 11%

        South East & East Anglia :    11%

        Scotland               :                     10%

        Greater London : 10%

        Unfortunately, it seems that many of Britain’s young backpackers are not listening to warnings to take care, as many of them are still embarking on their travels uninsured. Some 37% of them do not always have travel insurance while away, and a worrying one in five (20%) of them rarely or never have it, meaning they would not be covered for any stolen possessions or medical bills resulting from a mugging that might occur while they are abroad.

        InsureandGo’s backpacking policies offer a range of benefits such as a 24-hour worldwide emergency helpline, available 365 days a year, and automatically cover a wide range of adventure sports and activities.

        Notes :

        (1) Research was conducted online by independent research company TNS between 18th-29th June 2009. 1203 GB adults aged 16-34 were interviewed.

        0 1

        Aviva, Britain’s second-biggest insurer, said on Monday it expects to complete the planned stock market flotation of its Dutch unit, Delta Lloyd, in November.

        Aviva, which announced its intention to float the business in August, plans to sell a minority of its 92 percent stake in Delta Lloyd on Euronext’s Amsterdam exchange next month, it said in a statement.

        Delta Lloyd Chief Executive Niek Hoek told Reuters last month that the IPO was pencilled in for the final quarter of 2009 or early next year.

        Aviva said the IPO proceeds would allow it to restructure its balance sheet or explore other unspecified “opportunities for growth.”

        Aviva Chief Executive Andrew Moss said in August that Aviva was on the lookout for takeovers, and that Delta Lloyd might also make acquisitions as the Benelux financial services sector undergoes a wave of consolidation.

        Delta Lloyd confirmed on Monday that the IPO will “provide the opportunity to consider consolidation options which the Delta Lloyd Group foresees in the Netherlands and Belgium.”

        Sources familiar with Aviva’s IPO plans said in August that the company expects to raise about 1 billion euros ($1.45 billion) from the sale of a 25 percent stake in Delta Lloyd, suggesting a 4 billion euro valuation for the business as a whole.

        Delta Lloyd had an embedded value — a measure of insurance companies’ worth which includes the present value of future earnings from long-term life insurance contracts — of 4.1 billion euros at the end of June, Aviva said on Monday.

        Aviva shares were down 0.6 percent at 449.7 pence by 0712 GMT, while the FTSE 100 share index was off 0.2 percent.

        0 1

        AXA Insurance has announced the IT platform chosen to support its commercial lines business and drive forward the commercial strategy.

        The EXAMPLE platform® by Duck Creek Technologies Europe (DCTE) and in partnership with Tata Consultancy Services (TCS) has been chosen to replace the current IT mainframe systems which have been operational for the past decade. The new system will provide a robust and flexible framework in which to support AXA’s commercial distribution channels and product variations. DCTE’s experience in the commercial market and flexible approach were key factors in the choice of IT platform while TCS’ project management, system integration and migration capabilities along with their track record within AXA made them the natural choice for IT partner.

        This multi-million pound investment over 3 years supports AXA’s commercial strategy to rejuvenate its product suite, broaden its product offering and improve service delivery, particularly in areas such as clear documentation and product flexibility. The new IT platform will also enable AXA to more easily enter into new lines of business, such as the mid-corporate arena.
        Anthony Middle, managing director of AXA Commercial said: “This is an exciting development and a significant investment in our commercial business. We have listened to our customers and our employees, and we are reorganising our structure and processes to meet their needs – having the new IT platform will allow us to rejuvenate our product suite, improve our service capability, and help us continue to build on the positive changes we have made over the last 18 months or so.

        “The partners we have chosen have a strong and credible background. Duck Creek has a proven track record in helping companies to transform traditional administration systems and TCS bring with them not only a wealth of project management experience, but also their intimate knowledge of how AXA and its current systems operate.”

        Julian James, Managing Director Business Development, of Duck Creek Europe said: “We are excited to announce AXA as a new client. AXA scrutinised the European software marketplace to find a unique offering to replace their existing commercial lines system. The Duck Creek solution delivers speed to market without compromising quality of new product build.  At the forefront of modern technology the agility of our solutions meets the demands of today and future markets”.

        A.S. Lakshminarayan, Vice President and Head of Europe for TCS said: “We are extremely proud to have been working with AXA for approaching two decades and believe that this experience of working closely with our client on a number of large scale implementations will enable us to be an effective partner in delivering this critical business platform”.

        0 0

        Aon Consulting has been appointed administrator for four of the defined benefit (DB) pension schemes of Veolia Environmental Services, covering over 5,100 members.

        The Veolia Environnement subsidiary is the UK’s leading waste management company, employing over 12,000 people and serving over 21 million UK residents through its numerous local authority contracts as well as maintaining a sizable presence in the private sector.

        The four DB schemes are to be administered from Aon Consulting’s Sheffield office and work will be provided in addition to the actuarial consultancy Aon already provides for the schemes.

        Mike Sullivan, Head of Pensions for Veolia Environnement UK Limited commented: “The pension scheme members are extremely important to Veolia Environmental Services having helped to build the business into the success it is today, and as such, there is a wish to provide the best possible service to them. Having attended Aon’s pension administration service development forums, I was greatly impressed by their commitment to engaging with clients and the industry as a whole, in order to develop an offering that is actually relevant to Employers’ and members’ needs.

        An administration service should be focused on the member experience and Aon’s commitment to this and their demonstrably high levels of innovation are admirable values. I and my team look forward to working closely with Aon Consulting to deliver even higher levels of service to these pension scheme members.”

        Stuart Heatley, Managing Director for Aon Consulting said: “Delivering the best possible level of service to scheme members is our highest priority. We look forward to developing this partnership and working closely with Veolia.”

        0 0

        Aviva, Britain’s second-biggest insurer, aims to raise about 1 billion euros to 1.6 billion euros, in the listing of its Dutch unit Delta Lloyd, two people close to the matter said.

        Aviva, is offering 30 to 40 percent of Delta Lloyd, the sources said, and has started meeting investors on Monday.

        A price range will be determined when the bookbuilding process starts in the week of Oct. 19, the sources said.

        Prev1...808182...98Next Page 81 of 98

        POPULAR POST

        Seroni Interactive is an independent publisher of information BtoC and BtoB sites in banking and insurance & specialist digital content. Our productions of brand content possible to affirm your image, positioning, demonstrate your expertise and create a traffic or a hearing and therefore advertising exposure for your brand.
        Contact us: contact@news-insurances.com

        SOCIAL

        34FansLike
        6Subscribers+1
        965FollowersFollow

        Popular category

        © Seroni Interactive