Home Authors Posts by Thomas Hickey

Thomas Hickey

286 POSTS 1 COMMENTS

http://www.newsinsurances.co.uk/insurbook/members/hickey-thomas-493

Cliam rejected after cancelling trip to be with dying father

Industry News

Jan 2, 2012

0 1

When a family member is diagnosed with a terminal illness, the last thing you need is more financial pressures.

But for Joan Nicol of Liberton, Edinburgh, that’s exactly what happened. A month after booking a trip to Mexico with her husband and daughter, her father, John Gribben, was diagnosed with cancer and given 6 weeks to live.

Joan canceled her trip and filed a GBP2659 claim to her insurer, Halifax Travel, but was turned down because they said she must have know her father was ill, despite him being diagnosed a month after booking the trip.

“The first excuse they used was I should not have booked the trip knowing dad was terminally ill – which was ridiculous as he was diagnosed a month after I paid the deposit,” she said.

After the diagnosis, Joan’s father came to live with her family so they could look after him. Mr Gribben survived longer than expected so the family was able to say their final goodbyes, but Joan was furious about her claim being denied.

“Then they said it was my fault I was out of pocket as I should not have paid the balance knowing dad was ill. They only offered to refund the deposit.”

Eventually Joan got onto Halifax and they payed out the claim in full, but the added pressure at the already hard time was not helpful.

First Assist Insurance Services, who administer the firm’s travel insurance, said: “It’s clear that, as the investigations which led to the diagnosis started after the trip had been booked, the claim should have been covered in its entirety. We have apologised to Mrs Nicol.”

JLT increase presence in Ireland

Market

Jan 2, 2012

0 1

JLT Insurance Brokers announced on Friday that it had acquired Ireland’s second largest insurance broker, FDB, for around 8.5 million euros (GBP7.9 million).

As part of the transaction, JLT also acquired FDB Risk Management Services and International Loss Control Services from the Irish broker.

JLT will pay EUR6.75 up front, 500,000 on completion of the deal, and a deferred payment of up to 1.25 million euros in 2013 based on the financial performance after the deal.

Eamonn Bergin, Managing Director of FBD Brokers said, “Bringing together the experience and established reputation of FBD Brokers with the national and international presence of JLT Ireland and its parent, will provide strong foundations for the continued growth and successful development of the combined business”.

FBD Brokers is an insurance broker specialising in the Irish agri-food sector with strong positions in waste management and the renewable energy sectors. Their Risk Management Service provides a cost effective way of managing risk, and the International Loss Control Services is a liability and motor claims management and administration company.

They are second only to Aviva in the Irish general insurance market, and expect to report a full year operating earnings per share of 155-165 euro cents for 2011, compared to 106 euro cents in 2012.

Houses most affordable in eight years

Financial News

Dec 26, 2011

0 0

Despite house prices in the UK being at their most affordable level for eight years, the number of first home buyers is at it’s lowest point since 1974, a Halifax study has revealed.

The average price paid by first home buyers in November 2011 was affordable for someone on the average wage but despite this fewer people are joining the market, the study said.

“Housing affordability for those looking to get onto the property ladder for the first time has improved significantly over recent years, largely as a consequence of the decline in house prices since 2007,” said Martin Ellis, housing economist at Halifax.

“Nevertheless, conditions for potential first-time buyers remain tough. Difficulties raising the necessary deposit and concerns over the economic climate are preventing many from entering the market.”

Recent increases of the deposit required to take a mortgage is one of the factors keeping first-timers out of the market. This year the average price of a deposit was £27,032, compared to £17, 482 in 2007. As a proportion of purchase price the average deposit has increased from 10% to 20% in the past four years.

The study also revealed a stark contrast in housing affordability in the North and South. 95% of the areas deemed as ‘affordable’ to first home buyers were in the north of UK and 70% were in Scotland. The most affordable area to buy a house is in South Aryshire with an average house price of just 2.5 times the average annual earnings. Peterborough in the East of England is the most affordable area in southern England.

Not surprisingly, London is the least affordable place for a first home buyer, with not one area of the capital being deemed ‘affordable’ by Halifax. The average price of a home in Brent in London is nine times the average annual salary.

Table 1: % of affordable areas for First Time Buyers by Region, 2007-2011

	2007		2010		2011
	Affordable	Unaffordable	Affordable	Unaffordable	Affordable	Unaffordable
	%		%		%
North East	0%	100%	83%	17%	100%	0%
Wales	0%	100%	75%	25%	83%	17%
Yorkshire and The Humber	12%	88%	82%	18%	82%	18%
North West	4%	96%	85%	15%	81%	19%
East Midlands	11%	89%	84%	16%	79%	21%
Scotland	31%	69%	77%	23%	77%	23%
West Midlands	0%	100%	32%	68%	32%	68%
South West	0%	100%	8%	92%	8%	92%
East of England	0%	100%	10%	90%	7%	93%
South East	0%	100%	0%	100%	6%	94%
London	0%	100%	0%	100%	0%	100%
United Kingdom	5%	95%	42%	58%	44%	56%

Shoppers to spend £42 million an hour today

Good to know

Dec 24, 2011

0 1

If you’ve left your Christmas shopping to the last minute don’t worry – you’re not alone.

A Sainsbury’s study has found that nearly 18 million people will be doing their Christmas shopping today, spending around a £1 billion – or £42 million an hour.

While total sales revenue this Christmas isn’t as high as last year, the Christmas Eve rush is expected to be bigger because it falls on a Saturday and because of an increase in pre-Christmas sales this year.

“As ever, millions of people are on a mad dash to the shops on Christmas Eve but this year people are leaving it even later than usual,” said Stuart McKeggie, Head of Sainsbury’s Credit Cards.

“This is perhaps due to financial uncertainty, the anticipation of last minute sales and the fact that Christmas Eve is on a Saturday.”

The findings showed a number of the different measures people are going to to keep prices down this Christmas. 38% of people are using vouchers or coupons to buy food and gifts and 24% are collecting reward scheme points on all of their Christmas shopping. 23% of us will purchase gifts using points collected from a loyalty or reward scheme, and the same number will buy Christmas food or drink using points they have amassed.

One in 10 people are getting creative and making personalised or hand-made gifts, and 12% intend to buy Christmas gifts in the post-Christmas sales to save money. Interestingly, 14% of men don’t plan to budget their Christmas shopping, compared to just 6% of women.

Haverford pull plug on Omega deal

Market

Dec 23, 2011

0 2

After less that one month, Haverford has announced it is pulling out of negotiations of buying a stake in London’s Omega Insurance.

The Bermudan reinsurance company contacted Omega on Wednesday to tell them that, “all negotiations and discussions relating to a possible transaction in Omega shares have been terminated”.

Omega had offered its price at 83 pence per share for a 25% stake, valuing the company at GBP200 million, but Haverford was only prepared to pay 74 pence per share, raising concerns about Omega’s finances after the company reported widening catastrophe-related losses in November.

The deal would have been for a 25 per cent stake in the company.

Fitch ratings said today that small Lloyd’s of London insurers such as Omega were ‘primary targets’ for acquisition coming into 2012, as they struggle with low valuations and the implementation of Solvency II.

They said that the smaller, more specific insurers will struggle to survive by themselves after Solvency II so there is a strong likelihood that there will be an increase in consolidation.

“For the smallest insurers with only one or two business lines, Solvency II is likely to require higher capital levels to compensate for a relative lack of diversity. These firms could, therefore, also become takeover targets in 2012 as they would be able to operate with lower capital levels as part of a bigger group.”

Teesside Insurer to undergo rebranding

Social

Dec 23, 2011

0 1

To celebrate their 25^th birthday, Teesside Insurance is giving itself a facelift by rebranding and changing its name.

As of January 1 Teesside will no longer be Teesside, it will be Erimus Insurance Brokers. The Middlesbrough based company, which was launched in 1986, is the main locally owned insurance broker in the Teesside area and is undergoing the changes to expand and find more clients from different areas.

The company said that by adopting the name Erimus – the Latin Motto of Middlesbrough which means “we shall be” – they would not be forgetting their Teesside roots.

Paul Davison, commercial director at the firm, said, “the Erimus motto signified the determination of a town nicknamed the Infant Hercules by William Gladstone to grow and become great.

“We have similarly progressive aims for our business to ensure that we continue to develop throughout the ongoing difficult financial climate. The insurance broking market has changed significantly in the past decade and is now dominated by consolidators, with independently owned insurance brokers like ourselves becoming an ever-increasing rarity.”

The company completed a management buyout in 2010 to ensure the business remained independent. After the buyout, insurance giant Willis showed their support by becoming a minority shareholder.

Erimus will work in partnership with Willis to access the global resources of more than 20,000 associates.

Based at Riverside Park in Middlesbrough, Erimus will specialise in business-to-business insurance, offering professional insurance broking and risk management services.

Its areas of expertise include business continuity planning, risk management, technical briefings and seminars, health and safety advice and private client services.

Increased consolidation in 2012: Fitch

Industry News

Dec 23, 2011

0 2

Beazely’s renewed interest in acquiring Hardy is a foreshadow of increased consolidation next year, Fitch Ratings has said.

Low valuations and the implementation of Solvency II will make smaller companies and companies that were hurt by natural disasters this year ‘primary targets’ for acquisition, the ratings company said.

Some takeovers will be necessary for some companies to survive, as continued earnings pressure will make it hard to convince investors to buy shares and invest capital into a company that cant promise strong returns.

Hardy announced earlier this month that it had launched a strategic review in the wake of catastrophe losses. While the firm said it had sufficient liquidity and capital to absorb the losses, it added that it would consider looking for a buyer. Beazley said Wednesday that it is interested in takeover talks after a previous approach failed last year.

“We believe insurers may also be more willing to complete deals as they get a better view of the capital requirements that will be implemented under the Solvency II regime,” the ratings company said.

“The capital requirements should become clearer next year, allowing potential buyers to more accurately assess the true value of targets.”

They said that the smaller, more specific insurers will struggle to survive by themselves after Solvency II so there is a strong likelihood that there will be an increase in consolidation.

Fitch’s current outlook for the UK non life-insurance sector in 2012 is stable.

De ja vu for NZ : more quakes

International

Dec 23, 2011

0 1

Ten months after the February earthquakes that killed 181 people and cost insurers and re-insurers billions, Christchurch has experienced two more strong shakes.

While no deaths or serious injuries were immediately reported, the quakes will put the restoration of the city back months and bring with it added cost to the economy and insurers.

New Zealand has been having a tough time recently with earthquakes and floods, the expenses of which are expected to fall on the insurance sector.

The effects of the recent natural disasters will especially be felt by Insurance Australia Group (AIG), Australia’s leading insurer, who last week joined the NZ insurance game by buying AMI, NZ’s biggest insurer.

It was a pretty tough first week in New Zealand for AIG. While the terms of the acquisition deal said they are not liable to claims relating to the February quakes, there were two natural disasters in their first seven days which they will have to account for.

The day after the acquisition heavy rain resulted in flooding and mudslides causing damage to homes. One week later, before an accurate estimate of the cost of the floods could be given, the two fresh quakes have added insult to injury.

New Zealand lies on a geologically unstable area in the South Pacific that is part of the so-called Ring of Fire, and is very susceptible to earthquakes. Seismologists have warned that the region could expect to be rattled by more aftershocks.

Insurers may face damages for slow claims payments

Legal

Dec 23, 2011

0 1

A proposal has been made for a law to require insurers to pay legitimate claims promptly or face damages. Under the proposed law, insurers who unreasonably delay paying valid claims would be liable to pay damages to policyholders.

The proposal, submitted by the Law Commission and the Scottish Law Commission, aims to “re-characterise the insurer’s primary obligation as a duty not to prevent loss but to pay valid claims after a reasonable time”.

In their summary of the report the commission states that insurers today are exempt from the normal rule of paying damages if a party breaches a contract. They said that the rule is based on the fiction that an insurers primary obligation is to prevent loss from occurring and not to pay valid claims, and that this needs to be changed.

In the report they cited the ABI as sharing their view, quoting them as saying, “if the insurer has declined a valid claim and has acted unreasonably, we accept that the law should be brought into line with general commercial contractual principles.”

Consumers should also be able to claim damages for distress, inconvenience or discomfort in insurance cases, the advisers said.

According to the commissions, English contract law for insurers is “unprincipled”, “unfair” and “reduces the perceived fairness and competitiveness of English Law.”

Respondents have until 20 March 2012 to reply to the Commissions’ reform proposals.

Insurers turn to onboard technology to avoid gender ban losses

Legal

Dec 22, 2011

0 0

Insurers trying to avoid next years ban on charging male drivers more than women are looking to technology which allows them to base their prices on how each specific customer drives.

The technology, which has been around for years but never seen as cost effective until now, could spark a revolution on how auto insurance is underwritten in the future.

In their weekly credit outlook, Moody’s said insurers offering the technology, or usage based insurance (UBI), will have a significant market advantage when the laws are implemented.

“Frontrunners offering UBI will gain a significant competitive advantage in terms of pricing and policy retention. Though not a major concern at the moment, companies that do not implement similar products could face adverse selection as insurers that do not vary their prices based on actual driving behavior will be faced with demand from higher-risk drivers.”

Women, who currently pay less for insurance for men because they are statistically less likely to have an accident, could see price hikes of up to 25% next year when the laws take place. In order to avoid this deterrent for female customers, many insurers are acting now by investing in the technology.

Moody’s said the technology will allow for much more accurate pricing because of the increase of information available.

“Adopting UBI sooner rather than later will not only attract better drivers willing to participate, but will also allow carriers to build and maintain a database on numerous variables that influence loss costs (or claims costs).

“By obtaining sufficient vehicle operation data, UBI allows insurers to incorporate variables into their pricing models that are more correlated with loss cost, leading to significantly enhanced predictive modeling capabilities.”

Moody’s said it expects most major car insurers to offer a version of UBI. On Dec. 8, Hartford Financial Services became the latest company to announce it will offer UBI products. Other insurers offering such services include Allstate, GMAC, Liberty Mutual, Nationwide, Progressive, State Farm and Travelers.

‘Home Alone’ burglar booby traps being used by 33% of Brits

Good to know

Dec 22, 2011

0 1

Icy the porch, greased doorknobs, tripwires around the house… sound familiar? While some people may recognise these burglar deterrents from the 90’s Home Alone films, many Brits are actually using these techniques when they leave their house for Christmas.

A recent study by home insurer MORE TH<N revealed that more than half (53%) of people in the UK consider using these ‘home alone’ style booby traps to keep their house safe.

The research showed that instead of opting to have an alarm system installed 33% of Brits have used one or more of the following DIY security features to protect their home:

– Leaving a radio on at full volume behind the front door – particularly spoken-word stations, such as BBC Radio 4, which give the illusion of a conversation occurring in the home.

– Icing their driveways, steps and patios

– Positioning cardboard cut outs or dummies behind netted windows

– Scattering sharp objects on the floor next to the front door and windows

– Setting up trip wires and ropes around the house

– Propping up front/back doors with household objects – such as chairs, pans and brooms

– Greasing doorknobs

While these techniques might work on film, in reality they are more likely to attract unwanted attention, convince a would-be burglar there’s nobody at home, and ultimately result in a break-in. Nevertheless, a third of those surveyed remain firm in their belief that a creative approach to deterring intruders is far more effective and cheaper at making a house impenetrable than traditional anti-burglary methods.

Worryingly, despite being prepared to go to great theatrical lengths to deter criminals, two thirds of Brits will still erect a Christmas tree in an area of their house that is clearly visible from the outside – turning the traditional symbol of festivity into a twinkling beacon for burglars.

Commenting on the research, Matt Pernet from MORE TH>N Home Insurance said, “Our homes are one of our most treasured possessions, and given the number of burglaries at Christmas, it’s understandable that Brits would look at more elaborate methods of protecting their homes from intruders.

“However, home security isn’t about employing tricks and gimmicks that belong in fiction. If you want to minimise the likelihood of a break-in while you’re away over the festive season then stick to the basics: strong locks, removing any obvious signs that nobody is home and, of course, installing a highly visible, functional burglar alarm. It might seem costly at first, but in the long run it will be priceless.”

How to save on insurance in 2012

Good to know

Dec 22, 2011

0 1

With January just around the corner, now is normally the time UK families start planning their savings strategies for the new year. Moneysupermarket.com has offered a helping hand, with 10 tips on how to save on insurance in 2012.

Car Insurance:

Top tip 1 – Shop around for the best value deal for your circumstances – save £372

[Based on the average saving made when using moneysupermarket.com to shop around for car insurance]

Top tip 2 – By adding an older driver who also drives the vehicle to their policy, younger drivers can make significant savings – save £165

Top tip 3 – Add a partner – save £32

Top tip 4 – Halve your mileage by car-pooling with a colleague – save £17

Top tip 5 – Opt for fully comprehensive car insurance rather than third party only cover – save £97

Total =£684

Home Insurance:

Top tip 6 – Pay annually instead of monthly – save £16

Top tip 7 – Shop around for the best value deal for your circumstances – save £127

[Based on the average saving made when using moneysupermarket.com to shop around for home insurance]

Total =£143

Life Insurance:

Top tip 8 – Give up smoking – save£240 on insurance

[In order to be classed as a ‘non-smoker’ and qualify for life insurance premium savings, insurers insist smokers have kicked the habit for a full year.]

Travel Insurance:

Top tip 9 – Choose the best deal from an independent provider rather than accepting the standard deal from your travel agent – save£24

Top tip 10 – Choose annual rather than single trip policies if planning to travel abroad more than once a year – save £28

Total =£51

Overall total: £1,118

Simplyhealth to take over Denplan

Market

Dec 22, 2011

0 0

Simplyhealth has announced its plan to acquire Denplan, the UK’s leading dental provider, in a GBP115 million cash deal.

Denplan, previously owned by The AXA Group, said the merger will benefit both companies because of their shared values.

Denplan was founded in 1986 and has been owned by the AXA Group for 12 years. They are the largest provider of dental payment plans, serving over 1.8 million patients, and are expected to report pre tax profits of more than GBP14 million for 2011.

Des Benjamin, CEO of Denplan, said, “By joining with companies that share common values, we have been building a strong organisation for the future that can help more people, in more ways, to look after their health.

“Our goal is to become an important, high quality part of the new health system as it emerges over the next few years. The acquisition of Denplan is an important step on this journey.”

The deal wraps up a successful year for Simplyhealth, after also acquiring the UK Healthcare business Groupama in August this year.

Steve Gates, Managing Director at Denplan, continued, “We are confident that we will benefit from the fact that Simplyhealth is solely focussed on health, as well as being a UK-based organisation based on mutual principles, which shares the same values and ethos as Denplan.”

Beazley set to acquire Hardy … again

Market

Dec 22, 2011

0 1

Beazley Insurance has confirmed its interest in buying insurance rival Hardy Underwriting.

In a statement released today, Beazley said it would explore the possibilities “of acquiring the entire issued share capacity of Hardy”.

It is the second time in a year Beazely has tried to take over the underwriter. In December 2010 they offered GBP180 million pounds for the company at up to 350 pence per share before they abandoned the deal.

While confirming their interest in the acquisition, Beazley said it was very early stages and there was no certainty that an offer will be made.

Hardy have been struggling in recent months after natural disasters caused them to report losses. Yesterday the company’s shares closed at 175 pence, half of what Beazley offered a year ago.

Aviva International credit rating watch negative : Standard and Poor’s

Industry News

Dec 22, 2011

0 0

In the wake of changes to Aviva’s legal structure, their international brand Aviva International Insurance Ltd. has had their credit rating of ‘AA-‘ kept on negative watch by Standard and Poor’s.

The affirmation was given because Aviva International “remains a regulated operating company; does not issue any debt; does not guarantee any further debt; and it will develop its internal reinsurance function over the coming months.”

Standard and Poor’s said Aviva International is a core entity to the Aviva Group, and they expect the branch to become “the most important risk-holding vehicle for the efficient external transfer of risk” which would benefit capital on a group level.

The rating mirrors that of the Aviva Group, and if the rating for them were to change they would expect that Aviva International would follow suit, the ratings agency said.

Gender specific companies will see fewer changes with new law

Legal

Dec 21, 2011

0 0

Insurance companies with a higher ratio of women than men will have the smallest price change when European Court of Justice equality laws are implemented next year.

News Insurances found that if a company insures more women than men, the statistics and information they would use to underwrite insurance would more reflect a woman than a man, leaving prices largely unchanged.

“Acompany that is more equally split will have a greater flow of premium going from women to men and therefor their prices will have to change more,” said Adrian Webb, Head of Communication at Sheila’s Wheels.

“With female marketed insurers the ratio is so skewed in the favor of women, that the claims of the men that are with us will not end up having to be subsidised quite as much”

Currently, a company with an equal spread of men and women charge lower premium for women and higher for men based on current claims statistics.

When the laws are implemented it will become illegal to differentiate prices based on gender, so these companies will begin charging men roughly 10% less for car insurance and women around 25% more.

Webb said this ratio would be different for gender marketed companies.

“A large company at the moment that has an equal split of men and women will be charging lower premiums for the women and higher premiums for the men. If those two premiums have to meet in the middle then they’re going to draw a line about half way and that is where the price will settle for both genders.

“With Sheilas Wheels because you have a 95 : 5 split you don’t have to draw a line in the middle, you get to draw it much closer to the women’s prices”

He said that car insurance companies targeted mostly at men would have the opposite effect and prices for all customers will reflect mens current prices

Aon gets GBP10 million bribery fine in U.S.

International

Dec 21, 2011

0 0

Aon Corporation will pay the US Department of Justice (DOJ) and the US Security Exchanges Commission (SEC) around USD16.3 million (GBP10.4 million) because of “certain payments made in overseas jurisdictions between 1983 and 2007.”

Aon will pay USB1.76 million to the DOJ as part of a ‘non-prosecution agreement’, and approximately USD14.55 million to the SEC in disgorgement and interest to settle a civil action. The company expects no impact of fourth quarter results as the settlement amounts were accrued for in prior periods.

In the non-prosecution agreement, the DOJ cited Aon’s cooperation, its timely disclosure of the facts, the efforts undertaken by the firm including the improvements Aon made to its anti-corruption compliance procedures, and Aon’s prior settlement of the matters with its UK regulator, the FSA.

Since beginning an internal review of the issues in 2007, Aon has put in place a comprehensive, global and robust anti-corruption program designed to prevent and detect improper conduct. As part of a related settlement in 2009, Aon Limited’s regulator, the UK Financial Services Authority (FSA), stated that “the pro-active determination of Aon Ltd.’s current senior management to identify past issues and improve the firm’s systems and controls in this area is a model of best practice that other firms may wish to adopt.”

“Acting with integrity is Aon’s core value and we embody this in our commitment to the highest professional standards for our clients, markets and colleagues,” said Greg Case, president and chief executive officer of Aon. “Aon has invested a significant amount of time and resources in anti-corruption compliance and transparency to greatly enhance our controls and processes.

“The FSA, DOJ and the SEC all have recognized Aon’s determination to set and meet the requisite high standards of compliance in this area. We believe that today our compliance practices are a model of best practice for other firms to adopt.”

Source : AON

Prev 1...101112...15 Next

Page 11 of 15

Thomas Hickey

POPULAR POST

SOCIAL

Popular category