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The stench of rotten eggs wafted across Paris and northern France on Tuesday, even reaching across the sea to England, after a gas leak that authorities said was very smelly but entirely harmless. 

Headaches, sore throats and nausea were nevertheless among the complaints listed in calls made overnight to emergency lines in Paris by more than 10,000 people worried by the stink that had invaded their streets and homes.

One Paris suburban resident, who asked not to be named, said he and his wife smelt gas when they woke early Tuesday with searing headaches: “I opened the windows and then realised the same smell was outside.”

But France’s Ecology Minister Delphine Batho, who cut short an official trip to Berlin to rush to the site of the leak at a chemical plant in the picturesque city of Rouen in Normandy, said there was no health risk.

The leak began early Monday at a plant run by Lubrizol, a firm that is part of billionaire US investor Warren Buffett’s empire, and within a day its odour had reached millions of people across northern France.

Winds carried the invisible gas around 100 kilometres (60 miles) down the densely populated Seine river valley to Paris, and later northwards over the Channel and into England, where it even reached as far as south London.

“South Kent residents are being asked to keep doors and windows closed due to a gas cloud that is believed to have come across from France,” the fire and rescue service in the southeastern English region said.  Katherine Shook, an artist who lives in the 11th district of Paris, said she was woken by her crying baby.

“It was about 4:00 am and I got up and noticed there was a gas smell all through the house. I smelled outside the front door, and it was stronger, so realised it was coming from outside the apartment,” she said.  The offending odour came from a gas called mercaptan, which, among other uses, is added to municipal gas because its sulphurous smell alerts people to gas leaks.

The Lubrizol plant, which makes additives for industrial lubricants and paint, shut down production as workers battled to plug the leak.  Regional authorities ordered the postponement of a French Cup tie match in Rouen between the city’s football team and Olympique Marseille on Tuesday evening.

“We didn’t want to be in a situation where we have 10,000 spectators two kilometres away from the plant without any capacity for confining or evacuating them if that were necessary,” said senior local official Florence Gouache.

Despite the official insistence that there was no danger, French social media were awash with people in the affected regions complaining of headaches and nausea from the gas that smelled like rotten eggs.

“They’re all saying not to panic, but they said the same thing about the cloud from Chernobyl,” said mother-of-four Patricia Cousteau, referring to radioactive fallout that spread across Europe in 1986 after an explosion at a Ukrainian nuclear plant.

Authorities said in an earlier statement that a chemical substance at the Lubrizol plant became unstable and caused odours that are similar to those of town gas.

“The gas has an unpleasant smell but is not toxic,” it said. The concentration of the gas was also “very low”, said the statement, which also admitted that “a large number of people have been inconvenienced”.

By Tuesday afternoon the smell had largely disappeared in Paris.

Paris, Jan 22, 2013 (AFP)

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Junction, the insurance affinity specialist, has announced a new five year agreement with the RAC to continue managing motor insurance for new and existing customers.

Since the partnership began in 2008, Junction has worked with the RAC to design and develop all of the brand’s private motor insurance products, as well as manage all customer interactions, resulting in significant customer growth.

The takeover of the RAC by the Carlyle Group in September 2011 prompted a full review of the organisation’s private motor insurance proposition. The next phase of the partnership will see Junction and the RAC using the existing platform to maximise insurer relationships, as well as launching new technology-focussed initiatives in a bid to grow customer numbers even further. The RAC’s desire to reward customer loyalty will be a key area of development. Together, Junction and the RAC will look at new ways to tap into and utilise customer and other data to drive more competitive rates for customers.

RAC Commercial Director, Kerry Michael, said: “We are delighted to have extended our partnership with the industry’s leading car insurance affinity provider. The new agreement will enable us to build on the existing solid foundations and to develop market leading propositions that consolidate the RAC’s position as the motorist’s champion.”

Peter Thompson, Managing Director of Junction, added: “The RAC is the ultimate UK motoring brand and has enjoyed success across a variety of products and services, so we are delighted see the strength of our partnership to deliver first class motor insurance re-affirmed.”

Peter continued, “The growth we have driven for RAC private motor insurance since our partnership began puts us on the right road to delivering its ambition to be one of the leading motor insurance providers. We are looking forward to strengthening the link between the RAC and its insurer panel to ensure customers get the most competitive insurance premiums possible.”

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    Swiss Re’s latest report, Building a Sustainable Energy Future: Risks and Opportunities, describes the impact of the changing global energy mix on climate change. Using a combination of economic analysis and scenario building, the report provides a framework for decision-makers when it comes to questions of renewable energies, greenhouse gas emissions and how to adapt to climate change. The report concludes with a look at how insurance can enable development in the energy sector.

    The composition of our future global energy mix is uncertain. On the one hand, renewable energy sources are established in the market and the growth in energy production from sources such as solar and wind will continue to grow. On the other hand, existing fossil fuel and nuclear technologies will continue to play an important role in meeting the energy needs of a growing global population.

    Swiss Re’s report looks at how new sustainable energy technologies, shifts in public perception, market forces and the policies set by global and national decision-makers will influence the way we power society in the future.

    At the centre of the report is the link between decisions on the global energy mix and their consequences for how we mitigate and adapt to global climate change.

    “This study clearly shows that renewable energy will play an important role in the global power mix of the future,” says Andreas Spiegel, Head of Sustainability & Political Risk at Swiss Re and author of the report. “At the same time it shows that adaptation to climate change will increase in importance because the window of opportunity for mitigating climate change is getting much narrower.”

    Building a Sustainable Energy Future’s approach is based on an economic analysis of different future energy mix scenarios. These scenarios range from a future with no attempt to curb global warming to more moderate scenarios which reflect a slow greening of the economy or the influence of technological advances and political action on the global energy mix.

    In the best-case scenario, a successful mix of political, social and technological factors would mean that low-carbon technologies could supply 92% of the global power supply by 2050. This would cap the global temperature increase at 3°C. However, reaching this goal would involve global policy consensus, relatively stable economic conditions and strong public support for the replacement of fossil fuel technologies with low-carbon energy sources.

    The report also provides a framework for decision-making and emphasises the need for a realistic approach to the energy issue. In doing so, it tackles some of the difficulties that need to be overcome in diversifying the energy system. For example, as renewable energies become more prevalent in the energy mix, demand for fossil fuel technologies will sink. This suggests that increased renewable energy demand would make fossil fuels more attractive from a relative price perspective.

    The changing energy landscape will provide new growth opportunities for insurers. According to the scenarios presented in the report, the Asia-Pacific region will drive growth in the energy sector and is expected to account for 50% of the total annual global energy financing by 2030.

    As investment and infrastructure develop, the need for insurance protection will also increase. Under one scenario, the total annual losses across the energy sector could reach up to USD 42 billion by 2030. Insurers can provide financial protection against these losses as well as risk management expertise to help avoid losses in the first place.

    “Insurers should support the further development of low carbon-intensive power production,” says Agostino Galvagni, CEO Swiss Re Corporate Solutions. “They need to be innovative and provide solutions along the whole value chain. For example, insurers can enable project financing through construction insurance and reduce cash flow volatility of intermittent energy production through weather risk transfer solutions.”

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    Fitch Ratings says whilst a successful resolution of the current fiscal crisis remains the most important driver for many advanced-economy ratings, without further reform to address the impact of long-term ageing these economies face a second, longer-term fiscal shock.

    Without the implementation of mitigating reforms the median country analysed in our new report today is projected to see its budget worsen by 0.6% of GDP by 2020 and 4.9% of GDP by 2050. Consequently, many of these countries would experience escalating government debt-to-GDP ratios, with the average EU27 debt-to-GDP projected by Fitch to rise by 6.9% by 2020 and 119.4% by 2050. Without reforms to boost labour productivity and/or participation rates in many other advanced economies, population ageing will cause potential GDP growth to decline over the long-term, exacerbating the fiscal challenge.

    Few countries face an imminent problem. However, without major pension reforms Fitch would expect to take negative rating actions over the next decade on the countries facing the most pressing ageing pressures.

    For illustration, under a no policy response scenario, Fitch’s Sovereign Rating Model (SRM) -predicts a 1.5-notch downgrade by 2030 for countries with the worst ageing problem, and a five-notch downgrade for them by 2050. According to the model, Japan, Ireland and Cyprus face the largest jump in ageing costs over the next decade, while Luxembourg, Belgium, Malta and Slovenia face the most severe impact over the very long term. In particular, the setback to pension reform was a key contributory factor to the downgrade of Slovenia’s ratings in 2011.

    Despite the fiscal challenge currently facing some periphery eurozone countries, their recent experience also shows the power of reforms in transforming long-term projections. Recent reforms in Portugal, Italy and Greece have effectively neutralised the long-term impact of ageing on public finances in those countries.

    Today’s report focuses mainly on EU and OECD countries which face the most severe ageing populations and related fiscal costs. It also presents some data and preliminary analysis of the challenge facing emerging markets, for which data is generally less readily available.

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    More than 140 countries agreed Saturday on a ground-breaking treaty to rein in the use and emission of health-hazardous mercury, the UN said, but environmental activists lamented it did not go far enough. 

    The world’s first legally binding treaty on mercury was reached after a week of thorny talks and ends four years of heated discussions on how to cut global emission levels of the toxic heavy metal, which poses risks to human health and the environment.

    “This was a herculean task .. but we have succeeded,” Achim Steiner, UN under-secretary general and head of the UN Environment Programme (UNEP), told reporters in Geneva.

    The treaty has been named the Minamata Convention on Mercury, in honour of the Japanese town where inhabitants for decades have suffered the consequences of serious mercury contamination.

    It will be signed in Minamata in October and will take effect once ratified by 50 countries — something organisers expect will take three to four years.  Mercury, also known as quicksilver, is found in products ranging from electrical switches, thermometers and light-bulbs, to amalgam dental fillings and even facial creams. Large amounts of the heavy metal are released from small-scale gold mining, coal-burning power plants, metal smelters and cement production.

    “It is quite remarkable how much mercury in a sense has entered into use in our lives… We’ve been creating a terrible legacy,” Steiner said.

    “Mercury accumulates in the food chain through fish… It is released through coal-fired power stations and it travels sometimes thousands of kilometres. It affects the Inuit in Canada just as it affects the small-scale artisanal gold miner somewhere in southern Africa,” he said.

    Serious mercury poisoning affects the body’s immune system and development of the brain and nervous system, posing the greatest risk to foetuses and infants.

    The treaty sets a phase-out date of 2020 for a long line of products including mercury thermometers, blood pressure measuring devices, most batteries, switches, some kinds of fluorescent lamps and soaps and cosmetics.

    It makes exceptions, however, for some large medical measuring devices where no mercury-free alternatives exist. In a controversial move, it also excluded vaccines that use mercury as a preservative. The risk from these vaccines is considered low and for many developing nations, removing them would entail losing access to vaccines altogether, Tim Kasten, head of UNEP’s chemicals division explained.

    Amid pressure from dentist groups, the treaty also did not provide a cut-off date for the use of dental fillings using mercury amalgam, but did agree that the product should be phased down.

    The text gives governments 15 years to end all mercury mining. While welcoming the treaty, a number of non-governmental groups said they were disappointed as it did not go further.

    The text, many said, fell short in addressing the greatest sources of mercury in the environment: artisanal small-scale gold mining, which directly threatens the health of the some 10-15 million people working in this field and contaminates water and air, as well as emissions from coal-burning power plants.

    “We’re disappointed… The two biggest sources of mercury have only weak controls on them,” Joe DiGangi, a science advisor with the IPEN advocacy group, told AFP.  F

    or coal-fired power plants, the treaty calls only for control and reduction of mercury emissions “where feasible”, which is “vague and very discretional,” he said.

    As for small gold mining activities, using mercury will still be allowed, meaning imports and exports of the metal for this process will be legal, and governments will only be required to control the activity if they deem it “more than insignificant — whatever that means,” DiGangi said.  Richard Gutierrez, the head of Ban Toxics!, agreed.

    “With the current text, it seems the mercury use in (small-scale gold mining) may go on indefinitely,” he said in a statement.

    Steiner acknowledged the criticism but stressed the treaty “is a dynamic instrument” and would evolve over time to address all concerns.  Switzerland and Norway, which initiated the process a decade ago, with Japan pledged an initial $3.0 million (2.2 million euros) to get things started.

    Once up and running, the treaty will provide funds to ease the transition away from mercury through the UN’s existing Global Environment Facility (GEF), and probably also a second mechanism, organisers said.

    Geneva, Jan 19, 2013 (AFP) 

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    Fitch Ratings has affirmed SCOR’s Long-term Issuer Default Rating (IDR) and Insurer Financial Strength (IFS) ratings at ‘A+’. Fitch has also affirmed SCOR’s junior subordinated debt at ‘A-‘. The Outlook on the IDR and IFS is stable. A full rating breakdown is at the end of this comment.

    The affirmation reflects SCOR’s strong solvency and average debt leverage in relation to its risk profile. SCOR’s ratings are also supported by significant business and risk diversification. The ratings also take into account the group’s consistent and comprehensive strategy, solid business position, and somewhat volatile profitability.

    SCOR has improved its capital adequacy over the past three years as a result of well-controlled underwriting practices and a cautious investment policy. Debt leverage has increased while remaining in line with expectations for the current ratings.

    Fitch notes SCOR’s ability to successfully expand its business position via external growth and to swiftly integrate acquired operations. As a consequence, business position and diversification have significantly improved over the past five years. In addition, prices paid for acquisitions have usually been conservative, resulting in a manageable amount of intangible assets on the group’s balance sheet.

    SCOR’s profitability has been recovering in 2012, especially at the non-life division, as a consequence of a smaller impact from natural catastrophes, as compared with previous years. Fitch considers the cost of hurricane Sandy will not have an impact on SCOR ratings. Fitch expects SCOR to continue to adjust policies terms and conditions in order to strengthen profitability. However, life reinsurance profitability is suffering from the low interest rate environment. Fitch also notes the group’s ambition to significantly reduce costs has yet to deliver its full benefit.

    Although unlikely in the near future, an upgrade could be triggered by a material and sustainable recovery of profitability (combined ratio sustainably below 100% and life operating margin sustainably above 6.5%), translating into significant capital accumulation or debt redemption. Conversely, rating triggers that could result in a revision of the Outlook, or a downgrade, include deterioration in Fitch assessment of capital adequacy or profitability (combined ratio persistently above 100% or life operating margin persistently below 6.5%).

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    Global agricultural production must increase by 60% to feed the world’s population, which will reach 9 billion by 2050. Swiss Re’s latest sigma research publication, “Partnering for food security in emerging markets” proposes a multi-stakeholder approach to address the problem of food insecurity, putting agricultural insurance on the table to help manage agricultural risks, stabilise farm income, and encourage agricultural investment to strengthen the food chain infrastructure.  

    Food security today means having physical, social, and economic access to sufficient, safe, and nutritious food. The full current definition of food security can be found in “The State of Food Insecurity in the World 2001”, FAO (Rome, 2002), p. 49. But steady population growth, insufficient farm investment, socio-economic instability, and adverse weather events remain key challenges to the world’s food supply, often barring people’s access to food. Moreover, dietary preferences and nutritional demand are changing and are also putting pressure on food production and availability. Recently, rising food prices have become a major concern due to a combination of complex factors.

    “Volatile food prices (up 74% since 2005) and supply issues due to the 2012 US drought have heightened food security concerns recently, especially for vulnerable people in emerging markets,” explains Clarence Wong, Swiss Re Chief Economist for Asia. Out of the 850 million people suffering from hunger worldwide, 98% are located in emerging markets. The Asia-Pacific region has the greatest number (528 million), followed by sub-Saharan Africa (237 million).

    Achieving food security requires a multi-stakeholder approach
    Part of ensuring sustainable agricultural production includes employing holistic risk management strategies that help to reduce, mitigate, and cope with various farm risks. “Insurance is an integral piece of the puzzle,” says Wong. “Meeting growing food requirements necessitates massive investment in agriculture, even in the midst of an economic crisis. Innovative, multi-stakeholder cooperation is the way to make progress towards global food security.”

    Agricultural insurance can help to manage risks in the agricultural value chain, stabilise farm income, and promote investment in agriculture. It can also act as collateral for credit. A typical example of agricultural insurance is area-yield crop insurance, which bases pay-out on the shortfall of an area’s realised crop yield relative to its average historical yield. This kind of insurance was implemented in 2010, for example, by the Vietnamese government in partnership with re/insurance companies to provide rice farmers with risk protection.

    Agricultural insurance is growing, especially in emerging markets
    In 2011, global agricultural insurance premiums were estimated at USD 23.5 billion, around USD 5 billion of which was generated from emerging markets (mostly China and India). Insurance cannot provide food security on its own in emerging markets, but it can play a big part in aligning production incentives, raising awareness of the importance of risk mitigation, and encouraging investment in agricultural efficiency. Farmers and producers, governments, communities, cooperatives, and agribusiness can benefit from risk management solutions offered by re/insurers at multiple levels.

    Nevertheless, agricultural insurance penetration remains very low and is far from reaching its full potential in emerging markets, estimated at three to four time the current market size. “Tapping the full power of agricultural insurance in emerging markets requires a lot: proactive and enabling government policies, supportive infrastructure, innovative products, cost-effective business models, new distribution channels, and advanced technology. Much of this can be achieved by partnering with insurers,” says Amit Kalra, a co-author of the sigma study.

     

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      German insurance giant Allianz said it was sticking to its full-year profit forecast despite taking a hit of 455 million euros ($590 million) from Hurricane Sandy. 

      “Despite the impact of Hurricane Sandy, we continue to expect our operating profit for 2012 to exceed nine billion euros,” said Dieter Wemmer, the firm’s chief financial officer, in a statement.

      Allianz said it would publish its year-end figures, including estimates for 2012 natural catastrophe damage, on February 21.

      Investors appeared underwhelmed by the announcement, with Allianz stock up 0.14 per cent, slightly better than the wider DAX market of leading German shares, which was down by 0.13 per cent.

      Earlier in January, the world’s leading reinsurer, Munich Re, said that natural catastrophes including Hurricane Sandy in October in the United States caused $160 billion (120-billion euros’) worth of damage in 2012.  Overall, global losses were significantly lower in 2012 than in 2011 when record figures were posted due to the earthquakes in Japan and New Zealand and severe floods in Thailand, Munich Re added.

      Berlin, Jan 15, 2013 (AFP) 

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      As the media overdoses on the recent announcement of Kate’s pregnancy, I found myself considering how she would have fared if her morning sickness had occurred a few weeks earlier on their trip across Asia-Pacific.

      Ever since the political correctness of the EU Gender Directive (followed by the Equality Act 2010) was introduced in 2008, pregnancy has been a bone of contention to the travel insurance world.

      Until then, there had been a consensus across the industry that travelling, and specifically returning to the UK, within 8 weeks of your due date was ‘avoidable exposure to peril’ and would be excluded as a cause of loss. The new legislation dictates that, as pregnancy is specific to one gender, no differential treatment or rating is allowed, regardless of how material it may be to the travel risk. The fact that other gender-specific conditions (e.g. testicular cancer) are not specifically mentioned seems perplexing within Equality legislation.

      Exaggerating for effect, a customer who had previously experienced difficulties in pregnancy or childbirth and wanted to travel at 36 weeks pregnant to Spain is clearly a higher risk traveller. The legislation now prohibits an insurer from reflecting that risk or, if strictly interpreted, from asking any related medical screening questions. With pregnancy-related claims having been responsible for many of the largest settlements in the industry over the years, this added risk clearly has to be borne by other policyholders.

      The response from many insurers is now that, as most pregnancies are preconceived, natural birth is not deemed as emergency medical treatment other than unusually premature birth or complications during birth. Provided that such complications are clearly defined, this would seem to fit with the conditions of the legislation.

      The regulations include an exemption where a service provider reasonably thinks that providing goods, facilities or services at all or without certain conditions would, because of the pregnancy, create a risk to a woman’s health or safety. Is it not in the interest of the pregnant customer for an insurer to ask screening questions about current or past pregnancy and, dependent on the answers and the planned trip, to then suggest a visit to their GP or midwife to get specific travel advice? No change in premium but simply a steer towards personal health and safety.

      Back to the Duchess, it is fair to say that most travel insurers would not class morning sickness as a complication of pregnancy, more of a consequence. In this case, she appears to have been diagnosed (by the media at least) as suffering from Hyperemesis Gravidarum, which is clearly very distinct from morning sickness and may be covered.  That said, we urge all pregnant women considering travel plans to read the wording of their travel insurance policy carefully before jetting off!

      Press comment by Greg Lawson, Head of Retail at Columbus Direct

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      Equinox Global, the Lloyd’s coverholder specialising in trade credit insurance, is pleased to announce the appointment of Henning Siess, as Head of Germany. Based in Hamburg, Henning will be responsible for the German, Austrian and Swiss (German speaking) markets. Equinox Global aim to open a new German office in 2013, headed by Henning.

      Henning has been based in Hong Kong since 1999 working as CEO of the Euler Hermes Hong Kong Branch. He has also held the positions of General Manager of Euler Hermes Credit Underwriters (HK) Ltd and Euler Hermes Services (HK) Ltd., also located in Hong Kong. In 2008 he took over the position of the General Manager of Euler Hermes Information Consulting Shanghai Ltd. in China. Before moving to Asia, Henning spent 12 years in various senior roles in Euler Hermes Kreditversicherungs-AG, based in Germany. He started his career in Hamburg working with Texaco Oil.

      Mike Holley, Chief Executive Officer of Equinox Global, commented:

      “Henning has a wealth of international trade credit knowledge and experience.  Henning is also very experienced at establishing operational focus in different countries. Equinox Global has already enjoyed considerable success in German speaking countries, and recently launched its German language/German law trade credit product. The appointment of Henning means we will be able to expand and better support all our clients across Europe and beyond.”

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      Mayumi Kurasawa’s seaweed company saw seven of its factories swept away by Japan’s 2011 tsunami. Nearly two years later, sales continue to be eroded by consumer fears over nuclear contamination.   

      “Our seaweed is checked every day, and I guarantee you that it’s safe,” she told AFP during a recent visit to Tokyo to promote the company she works for, Kawashu. “But we are selling two-thirds less than before Fukushima.”

      Like many farmers in the Tohoku region in northeast Japan, Kurasawa is struggling to sell her produce to a wary population that remains unconvinced by reassurances of food safety.

      The problem is the Fukushima Daiichi nuclear plant in the region’s south, where reactors went into meltdown after cooling systems were swamped by the March 11, 2011 tsunami.

      The reactors spewed radioactive contamination into the atmosphere, forcing the evacuation of tens of thousands of people. Despite the Kawashu company’s production sites being 300 kilometres (185 miles) away from the nuclear plant, in Iwate Prefecture, it is struggling to sell its “wakame” seaweed.

      “Many clients prefer produce from South Korea or from China over us. They think it’s safer,” said Kurasawa. Previously lauded for their quality, Tohuku products from wasabi, mushrooms, fruit and cereals to salmon and sake (rice wine) are now regarded with suspicion by many Japanese customers as a consequence of Fukushima.

      Sales for Tohoku’s products have dropped 60 to 70 per cent on average against pre-accident levels. In the aftermath of the disaster, the legal limit for radioactive caesium in Japanese foods was raised in line with international emergency procedures before returning to normal in April last year.

      This return to “normal” should have reassured consumers, but the stigma has lingered from temporary bans imposed on beef, milk, mushrooms, vegetables and rice from Fukushima prefecture after they were found to contain levels of radioactive caesium above government safety limits.

      Public faith that certain foods were safe has also been hit by instances of fraud, in which wholesalers have attempted to sell Fukushima produce under the labels of other regions.

      The products in question were found to not be dangerous, but the deception, along with doubts over government food screening measures cobbled together in the wake of the accident, has made life even harder for farmers.

      Consumers and experts have also voiced suspicions that officials understated potential health risks due to worries about potential economic fallout and the complications of possible compensation.

      Food shops, sceptical about the government’s legal limit of 100 becquerels of radioactive caesium per kilogramme for food, have begun their own testing regimens.

      The country’s largest supermarket chain, Aeon, has been enforcing zero-risk policy.  “If we detect radioactive caesium in a product over measurable limits, we stop procuring it from the area it is produced,” Aeon spokesman Norihito Ikkai told AFP.

      “As a result, it enables customers to buy our products free from anxiety.”  In the area around the power-station, the majority of produce is now well below the legal limit for radiation and most produce, plants and animals raised in other prefectures of Tohuku, pass inspections.

      “All products sold here are checked and healthy,” said Katsuyasu Ito, the chef of French restaurant “L’auréole” in Oshu, Iwate Prefecture. “But anxieties remain among consumers when it comes to Tohoku products.”

      Exports have also been hit, falling 8.3 per cent from 2010 to 451.1 billion yen in 2011, according to statistics from the agriculture, forestry and fishery ministry.

      “A total of 45 countries and areas restricted food imports from Japan following the nuclear plant accident, resulting in declines in shipments,” a ministry official said. “Generally, they are easing the curbs except for South Korea.”

      In the town of Soma, 40 kilometres from the Fukushima Daiichi power plant, locally grown rice is often up to scratch but only locals want to buy it.   Masahiro Saito, a chicken farmer who has seen a 20 per cent loss in his turnover, feels less unlucky than his cereal and vegetable-growing neighbours, some of whom have had to pack up for good.

      “At the peak of the radiation in March 2011, I recorded 5 becquerels of radioactive caesium per kilogramme on my chickens,” said Saito — well below the government limit.

      Like most of his counterparts, he has raised his animals on American corn,  which explains why he and other farmers have suffered less than others in the region. But the consequences of the nuclear accident are still being felt two years later on the overall economy, not just agriculture, and on the daily lives of hundreds of thousands of people in the region.

      The clean-up around Fukushima is expected to take decades and experts warn that some settlements may have to be abandoned. Anecdotally, the pressures are mounting and stories of people whose livelihoods have dried up abound in the Japanese press.

      The Cabinet Office says up until last November 76 people in the region took their own lives in connection with the disaster. Of the deaths, 21 were linked to financial and livelihood issues and nine to employment issues, the government said.

      Tokyo, Jan 14, 2013 (AFP) 

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      A complex fraud investigation by Hill Dickinson Fraud Unit & Thames Valley Police has successfully ensured five people were found guilty last Thursday (10/1), for their involvement in a fatal road traffic collision in Denham on 11 June 2011.

      The landmark case, heard at Reading Crown Court, is the first of its kind in the country as the deliberately-caused accident, arranged as part of a plan to commit insurance fraud, led to a second collision causing the death of an innocent member of the public.

      Chris Hallett, Director of Intel & Complex Fraud at Hill Dickinson commented, “Hill Dickinson Fraud Unit regularly works in partnership with regional police forces investigating ‘crash for cash’ gangs. It has always been only a matter of time before an innocent road user was injured or killed. We welcomed the opportunity to work closely with Thames Valley Police and assist them, alongside our insurer client, during the early stages of their investigation into this tragic event. Our sympathies, thoughts and condolences go to the family of Baljinder Gill.”

      Sgt Jim Upton, from the Three Mile Cross Roads Policing department, said: “This was a despicable act which led to the tragic death of an innocent motorist. They were purely motivated by greed and a determination to abuse the compensation culture that is prevalent in crash for cash. This is the first case of its kind within the United Kingdom and it has been a long, complex and protracted investigation.

      However, we were clear at an early stage that this was a very unusual fatal collision and we were determined to bring all those responsible to justice. I hope that the verdict provides the family of the victim with the sense that some justice has been done. They have been through a horrendous ordeal by the selfish actions of these men.”

      Andrzej Boguslaw Skowron, aged 25, from Shelley Gardens, Wembley, has been convicted of causing death by dangerous driving and conspiracy to commit fraud.

      Radoslaw Piotr Bielawski, aged 24, from Rosewood Avenue, Greenford has been found guilty of causing death by dangerous driving and conspiracy to commit fraud. He had already pleaded guilty to doing acts tending to pervert the course of justice.

      Jacek Kowalczyk, aged 32, from Fraser Road, Perivale, Greenford, has been found guilty of causing death by dangerous driving, conspiracy to commit fraud and doing acts tending to pervert the course of justice.

      Artur Okrutny, aged 23, from Briar Road, London, has been convicted of doing acts tending to pervert the course of justice.

      Colin Lee, aged 32, from York Place, Aylesbury, was found guilty of causing death by careless driving. Lee was the driver of the van that fatally collided with the victim.

      The men have all been bailed until 15th February to be sentenced at Reading Crown Court.

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        American International Group has filed a lawsuit against an investment structure created by the Federal Reserve Bank of New York to help bailout the insurer, in a bid to sue mortgage debt issuers. 

        According to the complaint filed in the New York State Supreme Court in Manhattan, AIG is seeking a declaration that the bailed out insurance giant has not abandoned its right to file suit against banks and other creditors by selling residential mortgage-backed securities to Maiden Lane II in 2008.

        Maiden Lane II was created to purchase the securities, which had become unsellable at the height of the financial crisis, from AIG.

        The government took control of AIG in September 2008 through a $182 billion federal bailout to prevent its imminent collapse from sparking a cascade of gigantic failures throughout the global financial system. The bailout was fully paid off last year.

        AIG, which accuses Bank of America and other issuers of mortgage debt to have misled it about the value of the securities, is not seeking financial compensation from Maiden Lane II but wants the court to state whether AIG can still sue entities that issued securities in Maiden Lane II.

        The insurer has filed a $10 billion lawsuit against Bank of America as reparations for fraud claims.

        AIG decided not to join a private shareholder lawsuit against the US government over its bailout.

        The lawsuit filed by Starr International, which is controlled by former AIG chief executive Maurice “Hank” Greenberg, argued that the massive bailout of AIG did not fairly compensate shareholders.

        Starr sued the government for about $25 billion in November 2011.

        Washington, Jan 12, 2013 (AFP)

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        China’s insurance regulator announced it had asked insurer Ping An for more information about the proposed sale of a stake in the company held by HSBC to a Thai tycoon, after media reports said the deal might collapse.

        British bank HSBC said in December that it would sell its 15.57 stake in Ping An, China’s second largest life insurer, to Dhanin Chearavanont’s conglomerate, the Charoen Pokphand Group, for $9.4 billion.  But Hong Kong’s South China Morning Post newspaper said Wednesday that Chinese regulators were ready to reject the bid over concerns about funding for the purchase.

        It said that the state-owned China Development Bank, which had originally agreed to provide loans to help CP Group buy HSBC’s stake in Ping An, was reconsidering its decision.

        The China Insurance Regulatory Commission (CIRC), which must approve the deal, said it had asked for more information, but gave no details on exactly what it sought.

        “The CIRC has already received the Ping An Group application for the equity transfer, and in accordance with rules carried out a preliminary examination and notified the company to submit supplementary materials,” it said in a statement to AFP.

        The government agency is reportedly worried about the source of the financing and whether the Thai firm would be the real buyer of the stake, the Post reported, citing sources close to the regulator.

        HSBC subsequently issued a statement in London which said that “it is not aware of any information which must be announced to avoid a false market in HSBC’s securities or of any inside information that needs to be disclosed under Part XIVA of the Securities and Futures Ordinance.

        “HSBC further reaffirms that, on the basis of this enquiry, the information contained in the announcement of 5 December 2012 remains accurate.”

        If the deal collapsed it would be a big blow to HSBC, which has been selling non-core assets as part of a broad restructuring plan designed to increase profitability.

        Ping An Insurance closed down 0.18 percent at 44.99 yuan ($7.23) in Shanghai trading on Thursday. It fell 1.38 percent to HK$67.80 ($8.75) in Hong Kong, where it is also listed.

        HSBC shares showed a gain of 0.84 percent to 675.50 pence in London, where the FTSE 100 index was up by 0.25 percent overall.

        Shanghai, Jan 10, 2013 (AFP)

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        Global insurer Zurich announces the appointment of David White as Head of Retail, UK Life with effect from 21 January 2013.

        David joins from Fidelity Worldwide Investment where he was previously Head of FundsNetwork.

        He will report to Gary Shaughnessy who, in addition to his role as CEO Zurich UK Life, has been interim Head of Retail since joining the company in June last year.

        Gary Shaughnessy said: “I am delighted that David is joining Zurich. He brings with him a wealth of experience in the retail market and is well placed to lead the Retail business at a time of enormous change for the insurance industry.”

        In his new role, David is responsible for all aspects of Zurich’s UK retail business, including strategy, sales, marketing, and adviser relations.

        “I’m delighted to be joining Zurich” said David, whose previous experience includes senior marketing roles at Aberdeen Asset Management and Schroders Plc.

        “Zurich is absolutely committed to supporting the UK Advisory market and I am determined to ensure that we continue to develop our products and services to meet their needs.

        It’s a challenging time right now, with economic uncertainty and unprecedented regulatory change. However, despite these uncertainties, Zurich UK Life is well placed to provide strength and support to all of our customers – helping them to succeed in this new, post RDR world.”

        David, 42, is married with two children. He is a keen sportsman and enjoys travelling around the world, and has an ambition to have visited 50 countries by the time he is 50 – although he has some way to go having notched up only 30 so far.

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        The board of AIG decided to not join a private shareholder lawsuit against the US government over the government’s $182 billion rescue of the insurer in 2008. 

        AIG said its board determined that a decision not to join the lawsuit led by former chief executive Maurice “Hank” Greenberg met its “fiduciary and legal obligations” to AIG and its shareholders.

        The lawsuit filed by Starr International, which is controlled by Greenberg, argued that the massive bailout of AIG did not fairly compensate shareholders. Starr sued the government for $25 billion in November 2011.

        The government took control of AIG in September 2008 to prevent its imminent collapse from sparking a snowball of gigantic failures throughout the global financial system, but it wiped out most of the value of AIG’s shares.  Starr petitioned the board to join in or take the lead in the suit, but the board rejected the request.

        “The AIG Board has determined to refuse Starr’s demand in its entirety, and will neither pursue these claims itself nor permit Starr to pursue them in AIG’s name,” the company said in a statement.

        AIG said that in the coming weeks it would file with the courts a formal statement giving its “underlying” reasons for not joining the suit.

        New York, Jan 9, 2013 (AFP) 

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        Political considerations will increasingly influence the performance of mortgage markets in some European countries in 2013 and may undermine their full-recourse nature, Fitch Ratings says. The considerations include pressure to limit the impact of foreclosures or unsupportable debts on homeowners.

        Political pressure is evident in those peripheral Eurozone countries that have already experienced some of the sharpest housing market corrections and slumps in mortgage performance, namely Ireland and Greece. Along with a continuation of the economic pressures that have also driven rises in arrears, this contributes to our gloomy view on these markets, where we expect significant further deterioration in mortgage performance.

        The continued rise in arrears in Ireland is, in our opinion, to an extent driven by the imminent introduction of policy measures relating to debt forgiveness. Lenders are constrained from, or have been unwilling to undertake, large-scale repossessions. Coupled with borrowers in arrears potentially benefitting from debt write-downs this has increased moral hazard.

        Similarly in Greece, mortgage arrears have increased substantially since 2010 when auctions were suspended on properties worth less than EUR300,000 (although lender support is keeping arrears in RMBS below the market average). To be sure, a sharp GDP contraction and unemployment shock certainly have contributed to the doubling of Greek market-wide mortgage arrears (including defaults) since end-2010 to almost 20% as of end-Q212. However, we believe that policy measures have also had a considerable impact on borrower behaviour.

        The Spanish mortgage market will also merit close attention, following the introduction of Royal Decree 27/2012, suspending evictions for two years for certain Spanish residential borrowers. While the scope of the decree seems limited – we expect only a relatively small proportion of borrowers will qualify – it raises concerns that further restrictions on mortgage enforcement or explicit debt forgiveness measures could be introduced in the future, undermining willingness to pay. 
More broadly, austerity measures are being proposed or coming into effect around Europe. In the Netherlands, for example, these include the reduction of mortgage tax relief, although the phased nature of this move means it may affect house prices more than debt service affordability and thereby mortgage performance.

        The importance of state intervention is one of the issues discussed in our global outlook for housing and mortgage lending, published today.

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        According to catastrophe modeling firm AIR Worldwide, late last week, wildfires exacerbated by hot, dry, and windy conditions spread across parts of southern Tasmania. Temperatures of over 41° C (105.8°F) were recorded in the state capital of Hobart last Friday, the city’s hottest day since recordkeeping began in the 1880s.

        According to the Tasmania Fire Service, as of 9:30 a.m. (2:30 p.m. UTC) January 7, 2013, thirty-five bushfires are currently active across Tasmania. Six of these blazes have reportedly been contained. Firefighters are still working to control nine more, which have been assigned a “high fire danger” rating.

        “Although extremely hot and dry weather continues to ravage most of New South Wales and Victoria, fire conditions have begun to ease across Tasmania, aiding firefighters’ efforts to hold containment lines and control the active blazes,” said Tomas Girnius,  senior scientist at AIR Worldwide. “Three bushfires continue to threaten lives and property in Tasmania; specifically, the Montumana bushfire, the Lake Repulse fire (in the Upper Derwent Valley), and an extremely large fire in the Forcett region of the Tasman Peninsula. Although cooler and less windy conditions are forecast for the next few days, local authorities warn that these fires may continue to spread if weather conditions do not remain favorable.”

        The three most dangerous bushfires still active in Tasmania are the Montumana fire, the Lake Repulse fire and the Forcett fire.  First reported on January 5, 2013, the Montumana fire has burned over 1,000 hectares as of January 7. This fire is currently affecting the Mawbanna region, resulting in multiple road closures.  The Tasmania Fire Service warns that the Montumana fire may affect additional communities in the region, including Sisters Beach, Rocky Cape, Hellyer Beach, Detention River, and Crayfish Beach. The much larger Lake Repulse fire, first reported on January 3, has burned nearly 11,000 hectares so far. Located due east of Ellendale, the Lake Repulse fire is expected to affect the communities of Ellendale, Karanja, Westerway, Hamilton, and Ouse.  The Forcett fire, which has burned over 22,000 hectares as of January 7, was first reported on January 3. This large bushfire is anticipated to affect several communities between Forcett and the Tasman peninsula with embers, smoke, and falling ash expected throughout the region.

        According to the Tasmania Fire Service, a state-wide total fire ban is currently in effect throughout Tasmania in an effort to prevent new blazes from starting. In addition, cooler temperatures and isolated rain showers are forecast for Tuesday and Wednesday, which are expected to reduce the risk of continued fire spread within Tasmania. However, extremely hot and dry conditions in other parts of Australia, including much of New South Wales and Victoria, continue to pose enhanced bushfire risk.

        Girnius commented, “The most destructive of the multiple bushfires to ravage Tasmania over the last several days devastated the township of Dunalley on the Tasman Peninsula. In Dunalley, about 30% of the buildings were destroyed. Other villages near Dunalley also lost between 30 and 40% of residences to the fires. Bushfires burned 40% of structures in the community of Connellys Marsh, and several homes in the Murdunna region north of Port Arthur were also destroyed.”

        The worst-affected regions of Tasmania, including areas of Forcett, Dunalley, Copping, Murdunna, and others, have been included in a formal declaration of a bushfire catastrophe by the Insurance Council of Australia.

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        Sales directors, surgeons and operations directors are most likely to hold a conviction for speeding, according to analysis from MoneySupermarket.

        The UK’s number one comparison website analysed more than 14 million car insurance quotes run on the site over 12 months as part of the MoneySupermarket Monitor on Car Insurance, and reveals the professions most and least likely to hold a conviction for speeding. The top ten professions are:

        – Operations Director

        – Surgeon

        – Sales Director

        – Managing Director

        – Chartered Surveyor

        – Chief Executive

        – Commissioned Officer

        – Financial Advisor

        – Hospital Consultant

        – Barrister

        At the other end of the scale, café workers, building society clerks and students all feature as the least likely to be caught speeding. Luckily the reputation of driving instructors is safe too, as they also feature in the professions least likely to be caught putting the pedal to the metal.

        The research also reveals the cars driven by those most and least likely to hold a conviction for speeding. Porsche drivers top the list, followed by motorists behind the wheel of Aston Martins, Jaguars and Bentleys. At the other end of the scale the owners of Daewoos, Fiats and Suzukis are least likely to speed behind the wheel.

        Kevin Pratt, car insurance expert at MoneySupermarket, said:”The nation’s drivers are living up to stereotype. Our data shows that professionals in high paid jobs driving fast powerful cars are more likely to be caught speeding than the average family car, or a car with a smaller engine. The temptation to speed is too much for some to resist.

        “Your profession can say a lot about you; the type of car you drive, your age and very often your gender. Insurers use all of this information and more to form a risk profile and price your insurance premium correctly. If you have to declare a speeding conviction it can increase the cost of your premium by eight per cent, a figure that rises with each subsequent conviction.

        “Shopping around for an insurance policy that suits your needs is a quick task well worth doing”

        Further analysis reveals seven in ten (68.6 per cent) of all motoring convictions are for speeding, or are speed related. Overall, male drivers are most likely to get caught, with 9.2 per cent registering a conviction, compared to 6.8 per cent of female drivers. Both female and male motorists aged 40-49 registered the highest conviction rate with 8.6 and 11.4 per cent respectively. This was closely followed by those in their thirties, and then those aged between 50 and 64 years old. Younger drivers are least likely to have a conviction for speeding, as male and female drivers aged 20-24 years old registered a conviction rate of 7.2 and 4.4 per cent respectively.

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        Admiral has partnered with BCIS, the Building Cost Information Service of the Royal Institution of Chartered Surveyors (RICS), to ensure that customers for its home insurance product are quoted the right premium for the risk.  

        Admiral’s suite of home insurance products – Admiral, Admiral Gold and Admiral Platinum – is available to consumers via price comparison sites or its dedicated call centre.  The BCIS Lookup Service allows consumers to obtain instant, real time estimates of a residential property’s rebuilding cost.   Simple to use and accessible using standard XML technology, the live service calculates the rebuilding cost of a residential property given minimal details and is based on the BCIS rebuilding cost models already accepted as industry standard by surveyors and loss adjustors.

        Noel Summerfield, Household Product Manager, Admiral said: “The BCIS Lookup Service provides essential guidance to help customers enter an accurate rebuild value. Many homeowners confuse the market value of their property with the rebuilding cost and in many areas of the UK this will lead to over-inflated premiums. The Lookup Service provides easy-to-understand guidance and, most importantly, the customer does not need to know the floor area of their home. The accuracy of BCIS data makes them the ‘go to’ experts in the field and the only choice for Admiral as we expand our footprint in the household insurance market.”

        Matthew Newsome, Consultant, BCIS comments: “We are delighted to be partnering with Admiral as they enter the household insurance market.  The Lookup Service will allow Admiral’s premiums to be data driven, with an accurate view of risk delivering competitive premiums to customers.