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Sofia Ashmore

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    The European Insurance and Occupational Pensions Authority (EIOPA) has today published its report on the Methodology for Collecting, Analysing and Reporting on Consumer Trends.  This enhanced methodology will be used by EIOPA to produce its annual Consumer Trends report, as part of its tasks under Article 9(1)(a) of EIOPA Regulation, to take a leading role in promoting transparency, simplicity and fairness in the market for consumers.

    This report describes the methodology for collecting, analysing and reporting on consumer trends.  EIOPA’s goals in this area are threefold: to establish a framework for the collection of consumer trends information from National Supervisory Authorities (NSAs) including: exploring possible data sources; checking the availability of the data from these sources; and considering the level of comparability of the available data;to develop a methodology to collect and analyse the consumer trends information; andto establish a process for producing a report on the consumer trends identified from the information gathered and analysis conducted.  EIOPA seeks to collect both quantitative and qualitative data where it may be a useful indicator of a consumer trend and where a significant number of Member States have the data available.  The Report on the Methodology for Collecting, Analysing and Reporting on Consumer Trends can be accessed via the following link:  https://eiopa.europa.eu/fileadmin/tx_dam/files/publications/reports/2012-11_Methodology_on_collecting_consumer_trends.pdf (Link: https://eiopa.europa.eu/fileadmin/tx_dam/files/publications/reports/2012-11_Methodology_on_collecting_consumer_trends.pdf )

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    Confused.com has launched a new car hire comparison service, which searches over 800 car hire suppliers online to find customers the lowest prices. Confused.com has teamed up with Car Trawler to bring car hire comparison to their customers.

    With many people leaving their Christmas travel bookings late in the year, people needn’t worry about not being able to get to their destination or paying increased inflation on their tickets. The new car hire service Confused.com is offering is quick and easy to use and people don’t need to book weeks in advance making their Christmas travels plans a little easier.

    The new service allows customers to get a great price when hiring a car but also allows them to look at the car’s features to make sure it is suitable for them. As well as providing basic information about the hire car, Confused.com’s comparison service lets customers compare extra features to make their journey as comfortable as possible. These added features include:

    – Air conditioning

    – Space for luggage

    – Number of passengers

    – Automatic/manual

    – Sat Nav

    As well as being an easy service it also compares over 800 car suppliers, giving customers the competitive prices for their car hire. A trip from Cardiff to Edinburgh in a hire car can cost as little as £97.50* whereas a single train ticket for the same journey starts at £154. If you’re a family of four travelling together this could add up to a substantial saving!

    And it’s not just the UK where you can save money on your car hire. Teaming up with Car Trawler allows customers to search for car hire providers worldwide through their unique booking engine.

    Mhairi Duffin Head of Travel at Confused.com says: “Buying car insurance can be a real chore for motorists. Confused.com changed that ten years ago when they launched the first online car insurance quote comparison service.  Online comparison sites have now become the preferred way of shopping for consumer insurance.”

    “Therefore we wanted to expand the comparison service into other areas so we’re really excited to be working with Car Trawler to bring car hire comparison to our customers. We hope the new solution will help our customers find the right rental car at a great price and make their travel plans that little bit easier!”

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    An exponential explosion in technological capability in telematics means that the benchmark standards required to provide a viable service will be beyond most vehicle insurers within five years’ time if they continue to “drive around with the handbrake on.”

    Telematics pioneer Johan van der Merwe, deputy chairman of Coverbox, says vehicle insurance will become a two-speed market, with a small number of visionary insurers steaming ahead into a new culture of insurance, but with many stuck in the slow lane.

    “There are two issues: first, technology and processes have reached such a height of sophistication that if any insurance-related organisation is operating below that level, then it is likely to be completely off the pace and consequently out of the telematics premier league, and unlikely to be able to catch up.

    “A tipping point is fast approaching that will have as much impact as the change from analogue to digital mobile phones. Car insurance is on the verge of a huge step forward, and what is currently ‘wow’ will fast become outdated – but many insurers are simply driving around with the handbrake on, and haven’t gotten anywhere near considering even the current tech,” said Johan van der Merwe.

    “The second key consideration is that there will be an equally big, but perhaps slightly slower, change in insurance culture which will result in cost and value changes amongst both consumers and providers: consumers will be able to prove and demonstrate their driving habits and levels of risk, and providers will charge accordingly – with a far fairer charging structure relative to a driver’s behaviour and the environment in which they drive.

    “For those insurers who embrace and adopt the next generation insurance products it will mean that insurance fraud will be eliminated virtually overnight; for their customers it will mean insurance premiums that match their lifestyle and driving behaviour rather than that of their peers or neighbours.

    “Within around five years, those insurers not on board will be faced with a chasm that will be simply too wide to cross.

    “Currently, there are customers who get away with paying too little or face paying too much, and, what’s more, there’s no logic to the pricing structure – which creates ill-feeling and suspicion about insurers.

    “We’ve been bunkered down with some of the world’s biggest insurers creating the next generation of insurance products. But there are two distinct schools: those who are on the telematics train which has already left the station, and those who don’t realise it’s actually left.”

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    More than two out of five 50 to 60-year-olds who are out of work blame disability or illness for their inability to find a job highlighting the need for products to help protect income, new research from MetLife shows.

    Its nationwide study found 43% of people aged between 50 and 60 currently out of work say illness or disability stops them finding a job compared with just 26% saying they are unemployed or currently unable to find a job.

    The research, part of MetLife’s campaign to raise awareness among the 7.5 million people in the Critical Decade before retirement, found 20% of those born between 1951 and 1961 say they have a condition or disability which limits their daily activities.

    Women are more likely than men to have conditions or disabilities that limit their lives – 25% of women say they have compared with 16% of men. However, men who are out of work are more likely to have illnesses or disabilities preventing them from working. Around 52% of men who cannot work blame illnesses compared with 40% of women.

    Not being able to work through illness or disability has a major impact on income and household assets – 50% of people in the 50 to 60-year-old age group with annual incomes of less than £10,000 are unable to work through illness or disability.

    Stephanie Baillie, Employee Benefits Director of MetLife UK said: “Illness and disability has a massive impact on all aspects of life and particularly on the ability to work and save for retirement.

    “With one in five in the 50 to 60-year-old age group saying they have conditions which impact on their daily lives it is clear that people need to consider protection products to help replace income if they are no longer able to work.

    “Insurance cover that protects against life’s uncertainties is absolutely essential and valuable if it is part of a well-designed employee benefits package.”

    MetLife has introduced a bereavement and probate service as part of its Group Life product as it continues the transformation of its fast-growing Employee Benefits business.

    Additional product launches are planned in 2013 with MetLife also focusing on further developing customer service and distribution to enhance support for customers and intermediaries.

    MetLife is one of the fastest-growing life and pensions groups in the UK and has its UK Employee Benefits division in Brighton. Employing around 150 people, it is the UK hub for the sales and administration of its employee benefits and individual protection businesses.

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    Scottish Life, the pensions specialist arm of the Royal London Group, is launching its comprehensive automatic enrolment (AE) proposition this week.  Based on three key elements – Design, Implement and Run – Scottish Life has developed the ideal solution for advisers and their corporate clients to use in the new AE environment.

    Ewan Smith, Managing Director of Scottish Life, said: “Automatic enrolment is a major opportunity for providers and advisers alike.  But it’s essential to understand what the key issues are, and to develop and implement effective solutions that meet customer needs.

    “Over the past couple of years, Scottish Life has spent a lot of time with advisers and employers, identifying what the “needs” are; then developing and market testing practical solutions.  I’m confident that we’re offering a market-leading AE proposition, based on Scottish Life’s proven strengths of service1, investments2 and product excellence3.”

    Scottish Life’s AE proposition has three core elements:

    Design – a full design service allowing advisers to determine the duties an employer will have; review their current scheme; and model different scheme designs.

    – Implement – expert implementation support to get the scheme up and running with minimal disruption.

    Run an enhanced online service that will guide employers through all the tasks they need to complete to stay compliant with their duties.

    Business Development Manager, Jamie Clark, says: “The single most important message about automatic enrolment is that it’s not just about pensions: it’s about business planning.

    “With help from advisers and employers, Scottish Life has developed the complete solution for advisers to use with their corporate clients.  It enables advisers to identify the most appropriate approach to AE for each individual client; it offers experienced planning and implementation support; and it delivers a comprehensive package of ongoing services.

    “And while AE is a much bigger issue than is sometimes understood, having a quality group personal pension, from an experienced multi-award winning provider, should give additional peace of mind.”

    Ewan Smith added: “There’s one other message we hope advisers will take on board; don’t delay!  There’s no point in waiting.  Employers need support now, well ahead of their Staging Date.  Scottish Life is ready, and we’re keen to help you take advantage of the opportunities.”

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    AXA Mediterranean and Latin America region and Grameen-Jameel Microfinance, one of the largest private supporters to microfinance institutions in Middle East, North Africa & Turkey, have signed a Memorandum of Understanding (MoU), to jointly provide micro insurance solutions for clients in the Middle East and North Africa (MENA) region as well as in Turkey.

    The objective of this partnership is to capitalize on AXA’s insurance expertise and Grameen-Jameel’s microfinance proficiency offering insurance products to microfinance clients. The MoU was signed by Jean-Laurent Granier, CEO of AXA Mediterranean and Latin American Region and Chairman and CEO of AXA Global P&C Line of business and Zaher Al Munajjed, Chairman, Grameen-Jameel Microfinance Ltd in the presence of Fady Abdul Latif Jameel, President of Abdul Latif Jameel Community Service Initiative and Grameen-Jameel Board Director.

    AXA’s micro insurance products would be delivered by leveraging Grameen-Jameel’s microfinance network, proposing insurance products to their microfinance clients. By accessing protection covers against any form of casualty, working disability or unexpected events, such as floods or fires, micro- entrepreneurs and their families will be protected and able to pursue their day-to-day activities.

    “We are very proud to become the first global insurance provider to develop a Micro insurance offering for MENA microfinance clients, through the network of Grameen-Jameel Microfinance Limited. As a leading insurer, our role is to protect our clients and allow them to develop their projects, their businesses and plans for their beloved one’s future”, said Jean-Laurent Granier.

    He added: “It is all the more important that we support those who are more fragile and need more protection. We are very happy to launch this partnership with an experienced and respected organization such as Grameen-Jameel, in a region where we have been present for many years and in which we want to grow further.”

    Zaher Al Munajjed said “Grameen-Jameel is delighted to partner with a renowned global insurer such as AXA. With over 80 million individuals living in poverty in the MENA region, the demand for micro credit and micro insurance particularly is critical to help alleviate poverty. Many microfinance clients have been left in financial ruin and with no indemnity after the unfortunate death of the breadwinner of the family. Now, micro entrepreneurs can have assurance that their families are protected and will not carry the debt burdens in the event of death.”

     

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    Aegon UK is putting in place a new structure that will allow it to focus on developing long term relationships with its customers and grow the business.

    Aegon UK needs to align itself correctly in the intermediary retail market to generate new business and encourage advisers to make the cultural change needed to succeed post-RDR.

    In addition; to achieve success in the workplace savings market, and to take advantage of auto-enrolment opportunities, Aegon UK needs to become a leading partner of Employee Benefit Consultants (EBCs) and Corporate IFAs.

    In order to properly align all future activity to these critically important channels, Aegon UK is pleased to announce the creation of two new Managing Director roles, focussed on the retail market and the workplace savings market.

    Duncan Jarrett has been appointed to the role of Retail Managing Director. Building on the successful launch of the Aegon Retirement Choices platform, Duncan’s team will support advisers through business model changes and focus on the retail intermediary market, protection and all other opportunities not primarily focussed on the workplace.

    Duncan has been with Aegon working with financial advisers for over 26 years and his expertise in relationship building and focus on his customers makes him the perfect choice for this role. He will now use these skills to grow the retail intermediated side of the business with the support of a dedicated management team.

    Angela Seymour Jackson takes on the role of Workplace Managing Director. Her team will focus on strategic corporate accounts. The team will also develop a strong ‘Bids and Tenders’ capability to continue to build on Aegon UK’s successes in this vitally important area going forward.

    Angela joined Aegon UK in May 2012 from the RAC where she was CEO and led the sale from Aviva to Private Equity. She also developed new partnerships and diversified distribution in her role as Distribution Director of both the Life and Investment and General Insurance businesses at Aviva.

    Commenting on the new appointments, Adrian Grace, CEO of Aegon UK said:

    “Looking to next year and beyond, there are tremendous opportunities for a life and pensions provider that aligns itself properly to provide exceptional service to its distribution partners and focuses its efforts on the needs of its customers.

    I am confident that we now have the best structure, with the very best talent leading the organisation, to ensure Aegon UK becomes a true market leader in our chosen markets of At Retirement and Workplace Savings.

    I can think of no two people better suited to these roles than Duncan and Angela. I look forward to working with them closely as we identify and build on new and exciting opportunities for Aegon UK.”

    There will be no redundancies as a result of the new structure.

    Both Duncan and Angela will sit on Aegon UK’s Insurance Executive committee board.

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    Many British couples are burying their hands in the sand over their financial situations. One in seven1 (14 per cent) couples over the age of 40 – or around 4.22 million people – admit they have never discussed their finances, according to new research from Prudential.

    Fears about having awkward conversations drives this behaviour, with 15 per cent of those surveyed admitting they feel uncomfortable talking to their partners about financial planning.

    A concern that these conversations will boil over into arguments is another reason that couples avoid talking about their finances – money is the third most likely subject to cause arguments among couples, with nearly one in four (23 per cent) claiming that they fight over finances, ahead of work (10 per cent), and politics and religion (5 per cent). Only household chores (27 per cent) and disputes about family (30 per cent) are more likely to cause disagreements.  

    Even for the majority of couples who do discuss their retirement plans, long-term issues are likely to be side-lined, as short-term everyday expenses take priority. Daily living costs and household bills are regularly discussed by the majority of couples (60 per cent and 52 per cent respectively), and one in three couples (34 per cent) speak about the costs of home improvements, large purchases and luxuries.

    However, discussions about long-term planning are far less prevalent, with only 16 per cent of couples claiming to regularly talk about retirement income and pension planning. Only three per cent of couples claim they have had conversations about inheritance planning and tax.

    Vince Smith-Hughes, retirement expert at Prudential said: “Money can be a tough topic to discuss at the best of times. Many couples prefer to steer clear of conversations about finances, and especially discussions about longer-term issues like retirement which might feel light-years away.

    “Yet it really pays to be honest about your financial situation. Being open about discussing long-term financial planning as early as possible will help couples to ensure they can enjoy a comfortable retirement together.”

    Only 13 per cent of respondents said they had seen a financial adviser with their partners in the past five years. A further 13 per cent say they or their partner has seen an adviser separately within this timeframe and 8 per cent have seen an adviser but not within the past five years.  The vast majority (66 per cent) have never seen a financial adviser to discuss retirement planning.

    Vince Smith-Hughes continued: “Websites like www.pensionsadvisoryservice.org.uk/ and www.moneyadviceservice.org.uk/ can help with some in-depth information about retirement options. A joint conversation with a financial adviser should help couples to make the right pension savings decisions during their working lives, so that they’ll have the right income to support their lifestyles in retirement.”

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    The changing seasons, the disparate and unpredictable rainfalls are two of the most striking consequences of climate change.

    The conclusions of « Where the Rain Falls », the research project led by CARE France and the United Nations University Institute for Environment and Human Security (UNU-EHS), have been released yesterday in Doha during the 18th United Nations Climate Change Conference. This project is supported by the AXA Group and the MacArthur Foundation.

    « The survey “Where the Rain Falls” helps us understand one of the biggest challenges of the 21st century: how to feed a growing population when facing radical climate change », said Philippe Lévêque, Managing Director of CARE France. « Climate change is already causing extreme meteorological phenomena, such as dryness and floods, provoking food insecurity for populations. 600 million extra people could suffer from this matter by 2080 ».

    The survey was conducted in eight countries on three continents (Bangladesh, India, Thailand, Viet Nam, Ghana, Tanzania, Guatemala and Peru). The research is based on a 1,300 household survey and participatory research sessions involving 2,000 individuals. It demonstrates in an innovative way that vulnerable families facing food insecurity linked to climate change either migrate or send one of their own to another region where the food or financial resources necessary to their survival can be found. These solutions increase the vulnerability of already weak populations.

    « Our modeling results for Tanzania show that migration from vulnerable households could double over the next 25 years under the most extreme drought scenario » explained Koko Warner scientific Director of the “Where the Rain Falls” project from the United Nations University.

    This study concludes with suggestions of policy and practice solutions and concrete actions. Therefore, projects related to climate change adjustments will be launched locally and will start in 2013. The programs developed with local communities will combine awareness programs on climate variations with the setting-up of agricultural activities and the management of hydric resources more adapted to climate changes.

    « We are proud to support this study that allows to understand the issues faced by vulnerable populations exposed to climate risks. We are convinced that the actions suggested by the study will help populations better prepare to climate change and risks. We will pursue our commitment alongside CARE, as part of our actions linked to our corporate responsibility. Our aim is to minimize the human and economic impacts of natural disasters on fragile populations through research, education and prevention », stated Alice Steenland, Corporate Responsibility Director of the AXA Group.

    For further information on « Where the Rain Falls » (videos, full report and summary, case studies, methodology…): www.wheretherainfalls.org

    As a responsible company, AXA strives to play a positive role in society by helping to better understand the risks faced by individuals and society at large.

    This commitment includes several initiatives, amongst which:

    – A partnership with the NGO CARE, with two initiatives:

    – The support to the study “Where the Rain Falls”

    – Programs aimed at raising awareness on natural disaster prevention, targeting communities that are particularly exposed to this type of risks in emerging countries. These projects, whose objectives are to reduce the human and economic impacts of such disasters, are implemented in Benin, Indonesia, Madagascar, Mali, the Philippines and Vietnam.

    – The AXA Research Fund, which supports 300 researchers throughout the world, contributes to understanding and preventing environmental, life, and socio-economic risks.

    – A “green” products offer including:

    – Retail: motor insurance encouraging low emissions vehicles, home insurance with environmental appliances upgrades;

    – SMEs: encouraging “green” buildings or car fleets;

    – Industrial: environmental risk prevention, promotion of the development of renewable energies via adapted policies covering the equipment and the revenues derived from electric energy sales, etc.

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    Genome mapping could prove key in preventing superbugs in hospitals, an Australian researcher said Friday, urging its use to prevent countless deaths from antibiotic-resistant infections. 

    Mark Walker, director of the Australian Infectious Diseases Research Centre at the University of Queensland, said the technology would allow medical staff to determine whether patients had contracted identical bugs.

    Tracing the source of an infection would then become simpler and health workers could concentrate their resources on controlling its spread.

    “What we’ve done is demonstrated that the technology is able to answer questions that could not previously be asked,” Walker told AFP after his research was published in the US journal Science.

    “That has potential to answer specific questions in the hospital setting that will help in controlling… hospital acquired infections.”

    Until now, he said, it had been impossible to know whether closely-related bacteria causing infections were transferred from patient to patient, or were being passed on by poor clinical practice, a carrier, a contaminated instrument or something else.

    By taking a bacteria sample from an infected patient and sequencing the genome, a researcher ends up with some two or three million base pieces of paired genetic information. They can then compare the sequence to that of a sample taken from another patient and determine whether or not they have an identical bug.

    “If you know that the bacteria is absolutely identical, then that really confirms that what you’re seeing in a hospital where people are getting sick is that the bug is transferred,” he said.

    He said in one instance in Britain this type of approach determined that cases of a bug in a neo-natal ward were identical, prompting the hospital to test all health workers.

    One was revealed to be the carrier of a reservoir of a bug which ended up causing infections in babies from time to time. The worker, who was not sick, was treated and the outbreak cleared up.

    “This is where this type of technology is really powerful,” said Walker. He said genomics had been around for some time but it was only recently that the technology had become available to allow genome sequencing rapidly and in an almost cost-effective manner.

    “This is a new way of doing it that needs to be taken up,” he said.  “It’s another way and improved way to help prevent infections.”

    Sydney, Nov 30, 2012 (AFP) 

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    A new agreement with Emergency Assistance Japan (EAJ) is further strengthening the international network of emergency support available to customers of Aria Assistance, the independent UK insurance and assistance company, both directly and through its white label customers.

    The strategic integration of the two companies’ assistance services ensures that Aria Assistance continues to fulfil its promise that one call to one number is all it takes to activate a global network that will address any problem from a health emergency requiring emergency evacuation to lost tickets and credit cards.

    This new agreement follows last month’s announcement of an agreement with Globemed to provide assistance services for Aria Assistance customers when in North Africa and the Middle East. Both agreements are reciprocal, enabling the two partners access to Aria Assistance network in parts of the world where they do not have their own presence.

    EAJ, which has offices in Japan, the United States, Singapore, Thailand and China, is now ready to co-ordinate the delivery of healthcare and lifestyle assistance services for Aria Assistance customers. In turn, Aria Assistance is providing EAJ with assistance services in the UK and Europe.

    These new agreements, specific to its expansion plans, strengthen Aria Assistance’s capabilities to deliver a seamless service to the end customer, by linking with a major assistance player in each region. In addition to providing network capability, alongside continued access to the Europ Assistance Group network, these agreements utilise each others’ strengths and market knowledge to create joint products and services.

     Aria Assistance chief executive Patrick Leroy said; “As with Aria Assistance, the core of EAJ’s services is embodied by assistance coordination staff who combine compassion and dedication with the experience and know how to manage any situation effectively. There is a clear parallel between our two organisations and we look forward to deepening our partnership over the years.”

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    Princeton Financial Systems has announced Administradora de Fondos de Pensiones (AFP) Habitat S.A, the second largest pension fund in Chile’s private pension system, selected MIG21 for its investment compliance needs. Partnering with Gesintel, a risk and compliance solutions provider for Chilean and Latin America based firms; Princeton Financial will provide AFP Habitat with the compliance system of choice for seven of the world’s ten largest global custodians.

    MIG21 optimizes and automates pre-trade and post-trade investment compliance checking, and improves the administration of regulatory, prospectus and internal investment guidelines and resolution workflows. A flexible rules engine combined with advanced data and resolution management tools provide fully auditable controls of the investment process.

    AFP Habitat had been searching for a compliance engine to manage complex exposure and trading scenario rules that enhance the speed with which to comply to the Chilean Pension Supervisor regulations, and the capability to meet future compliance obligations as they evolve.

    Gesintel S.A. will provide the implementation and post live support to AFP Habitat as the local partner for Princeton. “We are excited for the market in Chile to have an option such as MIG21 for both pre and post trade compliance. AFP Habitat is a highly reputable firm,” said Cesar Poblete, Chief Marketing Officer at Gesintel S.A.

    “The MIG21 platform supports the evolving needs of firms around the world dealing with multiple jurisdictions, asset classes and funds. Princeton Financial’s extensive background in the industry provides us with a deep understanding of the constant challenges faced by our global clients,” said Christian J. Farber, Chief Marketing Officer of Princeton Financial Systems. “MIG21 is a gold standard for investment compliance and we are pleased to be in partnership with such a notable Chilean firm.”

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    The most likely solution to providing insurance coverage in high-flood risk-areas of the UK is the introduction of a non-profit risk pool, despite the government’s recent refusal to provide a temporary overdraft facility to the industry’s latest proposal, Fitch Ratings says. But the challenges of designing and funding a special insurance pool that also covers the burdensome administrative costs leaves the availability of flood insurance highly uncertain.

    The expiry in June 2013 of the government and insurance industry’s Statement of Principles (SoP) agreement to provide insurance in high flood-risk areas, while positive for the UK insurance industry, leaves households at risk. Removing existing market distortions would improve the credit profiles of UK insurers as it would allow them to price flood-risk appropriately. However, affordable cover is not likely to be available without some form of government initiative.

    A pooling of risks, which may include a government subsidy, would ensure the availability and affordability of insurance for the minority of households whose properties are located in high-flood-risk areas. Many other countries have taken this approach to catastrophe risk.

    The increase in property values and the propensity to build in flood plains have increased risks for insurers. Higher flood-related losses incurred from the numerous flooding incidences in June, July and last weekend will contribute to a deterioration of underwriting margins for UK non-life insurers for their full-year 2012 results.

    In the SoP, the UK insurers agreed to provide flood insurance to standard households and small businesses in areas of significant flood risk in return for the government taking action to reduce this risk to below a 1- in-75 chance of flooding within five years from July 2008. Frustrated by the slow pace of these improvements, the Association of British Insurers (ABI) has made it clear that agreement would not be renewed.

    The ABI said on 25 November that the government will not provide a temporary overdraft facility to the proposed not-for-profit special flood insurance fund. The proposal aims to provide affordable cover for 200,000 UK households in high-flood-risk areas, with an overdraft facility covering claims if there were 2007-style floods in the early years of the scheme.

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    The world’s biggest food group Nestle is moving into traditional Chinese medicine by joining forces with Chinese pharma group Chi-Med, the Swiss group said on Wednesday. 

    The new entity, called Nutrition Science Partners (NSP), is to be owned equally by the two parties, Nestle said in a statement, without revealing any of the financials behind the deal.

    NSP will research, develop, make and sell nutritional and medicinal products derived from botanical plants, it said. The joint venture will also hand Nestle’s Health Science division, which is handling the deal, access to Chi-Med’s traditional Chinese medicine library, which with more than 50,000 extracts from more than 1,200 different herbal plants is one of the world’s largest, the statement said.

    Initially, the product focus will be on gastro-intestinal health — a market worth up to $6 billion (4.6 billion euros) according to Chi-Med — but could in future expand into metabolic diseases and brain health, Nestle said.

    For Chi-Med, the deal, which is still subject to regulatory approvals, will bring “a stream of novel botanical medicines and nutritional products to market and in so doing build significant value for patients and for our shareholders,” company chief executive Christian Hogg said on a conference call.

    “Botanical are in the forefront in our view in the search for new medicines,” the Chi-Med chief said.

    Traditional Chinese plant-based medicines represented between 30 per cent and 40 per cent of all pharma sales in China, he added.

    This joint venture provides Nestlé Health Science with an opportunity to develop and commercialise truly innovative and scientifically validated botanical-based nutrition for personalised healthcare in gastro-intestinal health, Nestle Health Science head Luis Cantarell said.

    Zurich, Nov 28, 2012 (AFP) 

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    Ever since her father had his heart attack years ago, 76-year-old Maria has been fiercely devoted to Spain’s public hospitals. Now that authorities are planning to privatise parts of them, she is outraged.

    “At half past three I saw he was not well. I called our private healthcare provider and they told me they had no doctors available,” she said, standing in her local Madrid hospital, festooned with angry red-painted banners.

    “So I called the public health service. They sent an ambulance. He got to hospital by ten to four. They saved his life by being so quick,” added Maria, who would not give her surname.

    “We have a health system that is the envy of the world and they want to dismantle it, and we will be the ones to pay.”

    Maria attends daily meetings of concerned citizens at Madrid’s La Princesa University Hospital, where she and her family have been treated — and now she and other users have been joined in their outcry by doctors.

    Crowds of medics in white coats protested on Monday at hospitals across the capital, including La Princesa general, which authorities want to convert to a special care unit for the elderly, part of broader cost-saving measures.

    They launched a strike from Monday to Thursday to try to force the Madrid regional government to change its plans, with a shorter stoppage by other hospital workers on Monday and Tuesday to be repeated on December 4 and 5.

    Madrid’s conservative regional government insists its hospitals plan is necessary for Madrid to meet its tough deficit targets and denies it is privatising or dismantling La Princesa.

    “We have an excellent system of quality public health for all, but in the current situation we do not have enough revenue for it all to keep working as it does,” it said in a statement.

    “The reduction we have to make in health spending in Madrid is equivalent to the current budget of two hospitals. The most direct route would have been to close hospitals, but this government believes there are alternatives.”

    The Madrid government said it planned to make savings in the 2013 budget by outsourcing non-health services such as cleaning to private companies and hiring private firms of doctors to provide healthcare in some centres.

    That “is a common model in Europe” and “generates greater incentives and motivation for professionals,” it said.  — ‘We want to be patients, not customers’ —  On Monday minimum services were in operation to ensure emergency rooms stayed open as doctors demonstrated at hospitals such as La Princesa and La Paz in northern Madrid.

    Appointments to see the doctor were disrupted, however, with long queues in some waiting rooms.

    “Our colleagues told us they had to reschedule a lot of appointments,” said Rosa de la Morena, an administrator at La Paz, who attended a meeting on the cuts on Monday evening in a crowded hall there.

    “But they made sure patients who came from outside town saw the doctor.” Protestors hung banners from hospital facades reflecting their conviction — widespread among victims of Spain’s finance crisis and recession — that the private sector puts profits before care.

    “We want to be patients, not customers,” read one banner. “If you cut healthcare, you cut life,” read another. Spain’s regions are under pressure to curb spending as the national government seeks to cut seven billion euros ($9 billion) a year from the health budget.

    “The central government is already cutting spending,” said Cristina Diez, 29, an internal medicine specialist at the Hospital Gregorio Maranon in central Madrid.

    “If in addition to that they privatise, it is to try and make healthcare profitable. We are against that,” she added. “They are using the crisis as an excuse to do what they have been planning to do for a long time. We want to demonstrate until the Madrid government stops its plan.”

    Workers warned that a little-reported aspect of the cuts was the effect on many non-medical staff who fear being laid off if services are outsourced.

    “The current contracts expire on December 31. Then I may end up on the street,” said Milagros, 44, a cleaner at a hospital in southern Madrid, attending the meeting in La Paz.

    “We temporary workers are going to disappear. It affects cleaners, cooks, maintenance workers, seamstresses — all the non-sanitary sectors. And patients have no idea that it is happening.”

    In la Princesa, Maria left the protest committee’s meeting room where participants had placed in one corner a cardboard coffin with a cross on the lid. “We Spaniards built this system together,” she said. “Now they want to sell it.”

    Madrid, Nov 27, 2012 (AFP) 

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    Fitch Ratings has upgraded Irish Life Assurance plc’s (Irish Life) Long-term Issuer Default Rating (IDR) to ‘BBB+’ from ‘BBB’ and the subordinated debt rating to ‘BBB-‘ from ‘BB+’. Its Insurer Financial Strength (IFS) Rating has been affirmed at ‘BBB+’. The Outlooks on the IFS and IDR are Stable.

    The rating actions reflect the revision of Ireland’s Outlook to Stable from Negative (see “Fitch Revises Outlook on Ireland to Stable; Affirms at ‘BBB+'” dated 14 November 2012 at www.fitchratings.com). The ratings continue to reflect Irish Life’s high exposure to Irish government and bank debt – although those investments make up just 16% of the company’s non-linked investments they amount to 53% of Irish Life’s shareholders’ funds – and the importance of the Irish economy to its business. Irish Life is rated based on its own standalone profile, but the rating is limited by Irish sovereign and macroeconomic constraints as 99% of its business is domestic.

    Irish Life’s ratings also reflect its strong standalone capitalisation (regulatory solvency ratio of 184% at end-HY12), comparatively low-risk business (over 90% of Irish Life’s insurance liabilities are unit-linked, with investment risk borne by policyholders) and strong market position (around 30% share of the Irish life insurance market). However, in view of the weak operating environment in Ireland, Fitch expects the company’s earnings to remain under pressure for several years.

    Until June 2012, Irish Life was part of the permanent tsb Group (PTSB; formerly Irish Life & Permanent Group). As a result of the recapitalisation of PTSB’s banking operations, which needed state support during the financial crisis, Irish Life was sold to the Irish Minister for Finance for EUR1.3bn and is held as a commercial business. Given the current macroeconomic environment in Ireland, Fitch expects the Irish state to remain Irish Life’s owner for the foreseeable future, although Ireland plans to sell Irish Life as soon as practicable.

    A sale to a higher rated company could lead to an upgrade of Irish Life’s rating. Any change in Ireland’s sovereign rating could also change Irish Life’s ratings.

    The key rating triggers that could result in a downgrade include the macro-economic environment having a greater than expected adverse impact on policyholder surrender rates, new business or profitability. These threats could include the impact of the Irish government’s austerity package, high unemployment, reduced consumer confidence and lower than expected GDP triggering higher policyholder surrender rates and lower sales volumes.

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    The Association of Mortgage Intermediaries has completed the next stage of its development to ensure it is listening to the broadest range of views, improving its ability to represent the membership, and is able to lobby in the most effective way. 

    To deliver this we are making three changes to our structure with effect from 1 January 2013.

    Our current Chairman, Lord Deben, will become President still taking an active role in the management of the Association, attending Board meetings and assisting in representational activity.  The Board wishes to thank Lord Deben for his vision in helping AMI to continue to evolve.

    The AMI Board has decided that, in keeping with other trade bodies, it should have a Chairman elected from within its Board.  Following the recent election process, Patrick Bunton, of London & Country, will be taking up this position with effect from 1 January 2013.  Patrick has been Deputy Chairman for four years.

    The Board extends its deepest appreciation for the work of his fellow Deputy Chairman, Stephen Smith of Legal & General.  Stephen has been on the board of AMI since its inception almost 10 years ago and has held the position of Deputy almost as long.  Prior to the election Stephen decided to take a step back after the significant work in bringing AMI to full “independence”, which would not have happened without his leadership, guidance and drive.  Stephen will remain an active member of the AMI Board.

    Finally the Board is looking to add to its working knowledge of the market by adding two new “practitioner” members.  These should be individuals within member firms or networks who spend more than 75% of their working week advising on mortgages.  AMI would welcome enquiries from any practitioner who would like to take up one of these roles.

    The Rt Hon Lord Deben, said: “During 2012, I have been impressed by the strength, unity and purpose of the AMI Board.  Now is the right time for it to continue to develop.  I am delighted to be taking on this new role, where I will provide continuity, input and be able to support delivering a better housing and mortgage market for Britain and consumers.  A vibrant housing market is essential to economic recovery and AMI has a strong role to play in building confidence and ensuring consumers have access to funding”.

    Patrick Bunton said: “An effective AMI is an important part of ensuring we have a robust mortgage market in the UK.  In taking up this role I am determined to work on behalf of the wider industry and all our members to ensure that politicians and regulators are alive to the real issues and the fact that brokers deliver great outcomes for consumers.  I am looking forward to working with the executive team and our new President to deliver a better market for intermediary firms.  Although Stephen Smith is stepping back at this time I know that I will continue to be able to call on his expertise.”

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    Since Sandy made landfall as a post-tropical cyclone on October 29, 2012, in southern New Jersey, catastrophe modeling firm AIR Worldwide has been analyzing the storm’s characteristics and impacts.

    Informed by the latest available information on surge height and extent from the USGS, surface wind speed observation data, and findings from AIR’s post-disaster survey teams, AIR now estimates that insured losses from Sandy will be between USD 16 and USD 22 billion. AIR estimates include wind and storm surge damage to onshore residential, commercial and industrial properties and their contents, automobiles, and time element coverage (additional living expenses for residential properties and business interruption for commercial properties).

    “The significant increase in estimated losses from AIR’s estimate issued on October 30, the day after Sandy’s landfall, is driven primarily by an increase in estimated losses from storm surge damage,” said Dr. Tim Doggett, principal scientist at AIR Worldwide. “This, in turn, is driven by a reassessment of the percentage of flood losses that will actually be paid, as well as an improved storm surge footprint run against high-resolution industry exposure information.”

    Commentary on selected notable factors that influenced AIR’s update of insured loss estimates:

    – Commercial Flood Insurance Penetration: AIR’s default assumption—and the one used to generate insured loss estimates hours after Sandy’s landfall—is that 10% of commercial structures carry flood insurance. Based on further investigation into how storm surge losses will be covered under Sandy, AIR now believes that a revised assumption of 20% is more applicable for this particular storm and region. Therefore, the above range of losses reflects the assumption that 20% of the damage from Sandy’s storm surge to commercial and industrial properties will be covered.

    – Homeowners Deductibles: One hour before Sandy made landfall, the National Hurricane Center (NHC) issued a public advisory, which, in addition to updating the meteorological information and position of Sandy, stated that the storm had transitioned from a hurricane to a post-tropical cyclone. In the days following landfall, officials in New York, New Jersey, Connecticut, Delaware, Maryland, New York, Pennsylvania, Rhode Island and Washington, DC all ruled that insurers may not impose hurricane deductibles on homeowners policies in their jurisdictions. (In AIR’s initial loss estimates for Sandy posted on October 30, hurricane deductibles were applied.)

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    Assisted by the Insurance Fraud Bureau (IFB), police carried out a search warrant at an accident management company in the city. In addition, three homes were searched and a quantity of cash, jewellery and documentation was recovered.

    Three men aged 48, 42 and 40, and two women aged 49 and 46 were arrested on suspicion of conspiracy to commit fraud by false representation and have all been bailed pending further enquiries.

    The arrests were made on the day that a new report about the ‘crash for cash’ phenomenon was published by the IFB. The report, ‘Crash for Cash – putting the brakes on fraud’, links one in seven personal injury claims to suspected organised fraud rings.

    The report also estimates that ‘crash for cash’ costs the UK nearly £400 million every year, with honest policyholders ultimately picking up the bill through increased premiums.

    Ben Fletcher, Head of Operations at the IFB, said: “We work with police forces up and down the country to expose alleged ‘crash for cash’ scams and disrupt the work of organised networks suspected of orchestrating fraud against the insurance industry. This is affecting every honest policyholder in the UK and we are urging members of the public to play their part in putting a stop to this.

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    Fitch Ratings has affirmed Standard Life Assurance Limited’s (SLAL) Insurer Financial Strength (IFS) rating at ‘A+’ and Long-term Issuer Default Rating (IDR) at ‘A’. Fitch has also affirmed Standard Life plc’s (Standard Life) Long-term IDR at ‘A-‘. Standard Life is the top holding company for the Standard Life group. In addition, the agency has affirmed Standard Life’s subordinated debt at ‘BBB+’. The rating of the subordinated notes benefits from a subordinated guarantee given by SLAL. The Outlooks on the Long-term IDRs and IFS ratings are Stable.

    The affirmation of Standard Life’s ratings reflects the insurer’s maintained strong competitive position within the UK pension market, its strong capitalisation and profitability as well as its modest financial leverage. In HY12, Standard Life’s pre-tax operating profit rose to GBP302m (HY11: GBP262m), benefiting from the improved profitability of the UK operations.

    Standard Life is one of the leading players in the UK life and pensions market, a position achieved through continued success in the self-invested personal pensions (SIPP) markets. Standard Life’s less capital intensive product mix and low levels of investment guarantees reduces its sensitivity to financial market volatility compared with other UK life insurers.

    SLAL’s earnings depend on the value and mix of its assets under management (AUM), leaving Standard Life exposed to falls in financial markets and increases in policyholder surrender rates. Managing its cost base and retaining customers is important to Standard Life’s profitability. Despite adverse market conditions, Standard Life has maintained strong net inflows of AUM over the past year, underpinning its earnings.

    Standard Life’s issuance of CAD400m subordinated debt in September 2012 does not materially change the group’s credit profile. In particular, financial leverage increased only marginally as a result, and remains commensurate with the rating level.

    The main driver of Standard Life’s ratings is its ability to maintain its competitive position and profitability in its key UK pensions market in the face of increasing SIPP competition and the introduction of the Retail Distribution Review (RDR). Crucial to this will be continued successful growth and development of Standard Life’s Wrap platform.

    Fitch views an upgrade of Standard Life’s ratings as unlikely in the near term given the insurer’s small size and scale relative to higher rated peers.

    The key rating triggers that could result in a downgrade include a failure by Standard Life to maintain its position and profitability within the UK pensions market. A leading indicator would be a failure to increase the number of independent financial advisors (IFAs) using the Wrap platform or the value of AUM that are managed via the Wrap platform.

    Under the RDR, due to take effect by the start of 2013, IFAs will no longer receive sales-based commissions from insurers. Instead, they will charge fees directly to their customers. Fitch believes the RDR will lead to a shift of some customers away from IFAs, the main sales channel for Standard Life and many other UK insurers. For more details on the RDR, see Fitch’s report “UK Life – Retail Distribution Review”, available at www.fitchratings.com.