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    Damage from the deadly mega-storm that blasted the US East Coast could hit $50 billion, disaster estimator Eqecat announced. 

    The company put total economic damage from Hurricane Sandy in the range of $30-50 billion, and insured damages at $10-20 billion, double its earlier estimate.

    Eqecat said it had revised its estimates for the storm, which plowed into the US Atlantic coastline at heavily populated New Jersey on Monday, because of the extensive losses from power and other utilities, which it said were much greater than those for most category one hurricanes.

    It also cited the extended shutdowns of subways and road tunnels in the New York-New Jersey area due to flooding, and expectations that there are many more losses yet unknown.

    The storm devastated the New Jersey coastline and shut down New York City on Monday and Tuesday, leaving some 70 dead in the US; along the entire storm path from the Caribbean to Canada, at least 144 people were killed.

    Washington, Nov 1, 2012 (AFP) 

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    Based on preliminary insured loss estimates, Standard & Poor’s expects Hurricane Sandy to have a limited impact on the ratings on U.S. property/casualty (P/C) insurers, global reinsurers, and certain catastrophe bonds. Although it is anticipated that losses from this event will affect (re)insurers’ fourth-quarter earnings in 2012, for most (re)insurers the hit will be offset by strong capital bases and strong earnings through the first three quarters of 2012. The event is unlikely to materially affect premium rates in loss-affected lines, in our opinion.

    Modeling agencies have reported early insured loss estimates of around $5 billion-$15 billion. It is widely
    expected that Hurricane Sandy will inflict more severe losses than Hurricane Irene, which struck the U.S. East Coast in August 2011, and cost the industry $4 billion-$5 billion. Because the initial loss estimates are higher,
    S&P expects primary and reinsurance players to share the insured losses from Sandy; by contrast, the primary market bore the brunt of the Hurricane Irene loss event.

    The area affected by Hurricane Sandy is one of the largest on record. While rainfall is expected to result in
    less flood damage than Hurricane Irene, the industry could see higher loss amounts than it experienced after
    Irene because Sandy triggered flooding from record storm surge levels. In addition, Sandy hit the metropolitan New York area more directly and it merged with a winter storm in the Eastern U.S., leading to heavy snowfall and more potential damage from fallen trees. In addition, claims stemming from business interruption and contingent business interruption could be material due to widespread power-outages and the closure of public transportation systems along the Eastern seaboard.

    According to S&P the impact on primary insurers could be more material–the proportion of their retained losses are typically higher at the lower industry loss levels. Some of the primary insurers that are heavily exposed to
    Sandy are also quite concentrated in the region. These companies might be at risk of having their 2012 earnings depleted, and could even see their capital eroded.

    S&P says reinsurers have benefited from a more-benign loss year than their primary counterparts. Based on current estimates, they are less exposed to material losses from this hurricane. The rating agency continues to view the sector as strongly capitalized, and most reinsurers have reported very strong operating results thus far in 2012. Based on survey data submitted by reinsurers, S&P considers that some companies are more heavily exposed to windstorm risk in the U.S. Northeast than others. However, the same data indicates that the average reinsurer would need to experience an insured loss event in that region that was considered between one-in-50 years and one-in-100 years to put 5%-10% of its total adjusted capital at risk (see “Catastrophe Risk Insurance: Just How Much Capital Is At Risk?”, Sept. 5, 2012). Despite the large area affected by the storm, Sandy is expected to be more consistent with a one-in-10 year to one-in-20 year insured loss. Such a loss would not threaten the annual earnings or capital of many reinsurers in such a strong year. Even if losses from Sandy prove to be at or above the high end of the estimated range, we still anticipate that reinsurers will be able to manage the impact.

    S&P does not expect a loss of this size to have a material effect on premium rates in the U.S., especially in the
    catastrophe-exposed lines of business, which are already near historical peaks. Certain regions or lines of
    business could be affected slightly, and this loss could reduce the pressure to cut rates in loss-affected lines,
    but S&P does not view this as a material, rate-changing event.

    S&P currently rates a limited number of catastrophe bonds in which various classes are exposed to the states in
    Sandy’s path. Due to the attachment points on the per-occurrence bonds exposed to this event, Sandy is not expected to cause a loss on these notes. However, it will likely qualify as a covered loss event that will be
    included in the loss calculation for the annual aggregate bonds.

    According to S&P, based on current industry loss estimates, the effect on ratings for the P/C (re)insurers and
    affected catastrophe bonds should be minimal. However, it is recognized that these loss estimates could, and probably will, change and that uncertainty about the business interruption and contingent business interruption claim amounts is very high.

     

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    QBE has announced the appointment of David Siesko as Claims Director of QBE European Operations. Mr Siesko will take up his role early in the new year and will be based in QBE’s London office, reporting to Richard Pryce, Deputy Chief Executive Officer of QBE European Operations.

    David Siesko has worked in the insurance market for 25 years, holding senior positions including Chief Claims Officer for Zurich Financial Services Global Corporate Business, where he was responsible for the handling of Claims and Customer Services across UK, North America and Continental Europe.

    Prior to this he was Executive Vice President for Technical Claims and Director of Specialty Claims for Zurich North America. Most recently Mr Siesko has run his own company, Siesko Partners LLC in North America, an insurance coverage and claims services law firm. Mr Siesko is legally trained and has also held roles for AIG in New York, and Lovells, London earlier in his career.

    Richard Pryce, Deputy Chief Executive Officer of QBE European Operations commented: “I’m delighted that David will be joining QBE European Operations.   As we grow our business, his wealth of experience in managing and leading claims teams, as well as in developing and implementing claims and customer service strategies will bring an important extra dimension to the way in which QBE delivers a superior claims service to brokers and customers.  I am very much looking forward to working with him.”

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    Hurricane Sandy made landfall yesterday evening as a post-tropical cyclone on the southern coast of New Jersey near Atlantic City with top sustained winds of more than 80 mph. The storm’s effects are being felt across the entire coastline of the Mid-Atlantic region, up through New England and into inland areas as far as the Great Lakes area.

    EQECAT, Inc.’s initial insured loss estimate is between $5 billion-$10 billion, with economic damages of approximately $10 billion-$20 billion. At the low end, losses from Hurricane Sandy would roughly equal losses generated by Hurricane Irene, which struck the East Coast in August 2011. However, due to the widespread nature of the storm, it will take some time for catastrophe modeling firms and local loss adjusters to accurately estimate insured losses.

    Fitch Ratings expects that flooding from excessive rainfall and high storm surge will be a substantial component of damages from Sandy, in addition to damage from strong winds. As such, it is important to note that homeowners’ policies cover wind losses, but generally do not cover flood losses. Conversely, many commercial policies cover both wind and flood losses, as do crop insurance policies.

    While many lines of insurance will be affected, including property and auto, there is the potential for significant business interruption (BI) and contingent business interruption (CBI) losses related to the flooding as the affected areas work to restore power and resume operations following the storm. The massive storm is impacting a wide variety of businesses in densely populated areas, including retail, corporate offices, transportation, manufacturing, and energy plants.

    Extensive BI and CBI losses were experienced by the insurance industry last year in both the Japanese earthquake and tsunami and Thailand floods, as they accounted for a considerable portion of commercial and industrial losses. Fitch also notes that these events demonstrated the extent to which BI and CBI losses have been underestimated in the modeling and underwriting of risks.

    In order to incur a BI or CBI loss, an insured must suffer an actual loss of income from the suspension of operations. In the case of BI, the interruption must be due to physical loss or damage to its own property as a result of a covered cause of loss. A BI claim can also be triggered if the work location is not accessible due to a “civil authority” order telling people to stay out of an area. CBI provides an additional protection that covers loss of income when the insured’s operations are disrupted by a supplier and covers the same perils as the main policy of the insured. However, the majority of companies do not purchase CBI policies.

    Coverage typically begins following a waiting period, most often 72 hours, and continues for the length of time it takes to repair, rebuild, or replace the damaged or destroyed property with reasonable speed and similar quality. Thus, the ultimate insured losses from BI and CBI will be partly predicated on the speed with which businesses resume operations. It is also important to note that the vast majority of BI and CBI coverage purchased in the U.S. is included as part of the insured’s property policy, and are thus included within the overall property policy’s coverage limits.

    For detailed market share information listing the top 10 insurers by direct written premium for coastal states in both personal and commercial property insurance, see Fitch’s report “2012 Hurricane Season: A Desk Reference for Insurance Investors,” dated May 24, 2012. These statistics enable readers to quickly assess individual insurer’s potential exposure to a major storm before loss estimates are released.

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    The British Insurance Brokers’ Association (BIBA) has worked with government and other groups to launch a customer template that will help homeowners in flood risk properties to present their risk to insurers in order to obtain flood protection.

    BIBA and other stakeholders, consisting of DEFRA, Environment Agency, National Flood Forum, Law Society, RICS, local government and the Association of British Insurers, has developed a consistent way of recording and reporting the residual flood risk following installation of property level protection (PLP) measures.

    The aim is to provide a single standard way for customers to tell the industry about flood measure work which has been carried out to their property and can be utilised by policyholders who are part of an approved government led flood protection scheme, or indeed individual households in flood zones.

    DEFRA aim to roll out this approach to government funded PLP schemes. They also hope that homeowners taking forward their own property level work will adopt this approach.

    Steve Foulsham, BIBA Head of Technical Services, said: “BIBA welcomes this approach and believes it will bring benefits to the way customers share information on property level protection with the insurance industry. We are making our members aware of this approach and have asked them to consider this information where it is available and hope that this standard approach will encourage take up of property level property measures.”

    The launch of the template coincides with Flood Week which starts on 29th October and is being promoted by the Environment Agency.

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    Fitch Ratings has assigned Friends Life Group proposed issue of perpetual hybrid securities an expected ‘BBB+(EXP)’ rating. At the same time Fitch has maintained the Rating Watch Negative (RWN) on FLG and all existing group ratings. The expected rating is on RWN, in line with the RWN on FLG.

    The final rating is contingent on the receipt of final documents conforming to information already received.

    As FLG will use most of the proceeds to repay existing debt to its parent, Resolution Holdings (Guernsey) Limited, the issuance is not expected to have a material impact on FLG’s financial leverage ratio.

    The proposed new issue is classified as Upper Tier 2 notes for regulatory purposes, with the option to redeem on every coupon date after year six. FLG has the option to defer coupons at any time, subject to a dividend stopper.

    The notes will be subordinated to senior creditors, and guaranteed on a subordinated basis by Friends Life Limited (Issuer Default Rating ‘A’/RWN), which is the group’s main operating subsidiary. The securities will pay a fixed rate of interest. The terms of the issue include mandatory interest deferral, with triggers based on regulatory solvency and legal insolvency.

    The terms and conditions of the notes have been designed having had regard to the latest proposals under the proposed Solvency II regime.

    Fitch will resolve the RWN following further analysis of FLG to clarify expectations for profitability. The ratings may be downgraded if FLG is unable to demonstrate that underlying profitability improvements are on track towards an annual operating return on assets in excess of 0.40% as calculated by Fitch, and that the overall payback period for new business is reducing materially.

    The rating actions are as follows:

    Friends Life Group plc: Long-Term IDR ‘A-‘; maintained on RWN

    Friends Life FPG Limited: Long-Term IDR ‘A-‘; maintained on RWN

    Friends Life Limited: Long-Term IDR ‘A’, IFS ‘A+’; maintained on RWN

    Friends Life Company Limited: IFS ‘A+’; maintained on RWN

    Friends Life Assurance Society Limited: IFS ‘A+’; maintained on RWN

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    Germany became the fourth country Thursday to ban sales of flu vaccines made by Swiss pharmaceutical giant Novartis, following embargoes by Italy, Switzerland and Austria.

    Announcing the latest ban, German health authorities said four batches of the Begripal flu vaccine — also marketed as Agrippal — and one batch of the Fluad vaccine were no longer for sale.

    Novartis insisted earlier Thursday that both vaccines were safe despite concerns over impurities.

    “Novartis confirms its confidence in the safety and efficacy of its seasonal influenza vaccines,” the company said in a statement.

    On Wednesday, Italian, Swiss and Austrian authorities stopped sales of the vaccines pending tests into possible side effects. The alarm was first raised in Italy after white particles were seen in syringes carrying the vaccines, but Novartis stressed that “these particles can occur in the vaccine manufacturing process,” adding it was “confident that there is no impact on the safety or efficacy of the vaccine.”

    The company said it had voluntarily provided Italian health authorities with its assessments “supporting the quality, efficacy and safety” of the vaccines, and that it would continue working with them in a bid to understand their decision to put a freeze on the vaccines.

    Shortly after the Italian decision, the Swiss national drug agency Swissmedic also ordered an “immediate halt” of the vaccines owing to “possible impurities”.

    Their decision was followed by the Austrian health ministry which said Thursday it had pulled the vaccines because of “possible quality problems” as a “purely a precautionary measure”.

    “There are currently no indications of any danger to patients,” the health ministry said, before recommending alternative medication. Testing was under way on the vaccines in question, the ministry said, “but this process will take some time,” it added.

    In Switzerland, where the ban affects some 160,000 vaccine doses, according to Swissmedic, the country risks being unprepared for the winter round of jabs.

    Switzerland’s Office of Public Health said it had expressly asked pharmaceutical companies to supply flu vaccines but there was still a shortage and the Novartis ban could “aggravate the situation.”

    Novartis meanwhile stressed that it was “fully committed to providing high quality vaccines to patients and will continue to work with the authorities to make vaccines available.”

    Geneva, Oct 25, 2012 (AFP) 

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    The National Football League today announced Aon as an official sponsor of the NFL UK, as well as a sponsor of the International Series game.

    The NFL will play its sixth regular-season game in the UK on Sunday October 28, when the St Louis Rams host the New England Patriots at Wembley Stadium, kickoff 5:00 p.m.

    Aon will be working with the NFL to promote the sport in the UK and is planning to host a series of football clinics. These events are intended to introduce the sport to a new audience, including employees and families of Aon’s partner companies in the UK.

    “We are extremely proud to welcome Aon, a dynamic global business leader, as a sponsor of the NFL in the UK,” said Marc Reeves, the league’s International Commercial Director. “Through their innovative, determined and collaborative approach to this partnership we have seen first-hand how they earnestly prioritise their clients’ and employees’ needs. Aon has been an exemplary partner to date, and we look forward to working together to share our brand of football with fans across the United Kingdom.”

    Aon is helping to bring American football to the UK, as the company moved its corporate headquarters to London earlier this year. Aon has 24 offices and more than 6,000 colleagues in the UK, and is actively engaged in community and charitable activities.

    “As global advisors on the issues of risk and people, Aon always is connecting one part of the world to another. From our presence in the U.S. to moving back to one of the most important insurance markets in the world, Aon is uniquely qualified to partner with the NFL and deliver a once-in-a-lifetime introduction of American football to many of England’s top firms,” said Phil Clement, Aon’s global chief marketing and communications officer. “The issues we help clients with every day and that are core to our business; risk management, retirement, and health care, are all equally relevant to the sport of football.”

    “Helping the NFL promote such a popular sport in the UK and showcase our services to clients and prospects in this key market is a prestigious opportunity for Aon. Just like the NFL, our brand qualities of team work, superior execution, and the pursuit of excellence can empower results for our clients in a very unique and real way.”

    Aon already has a strong connection with football in the UK. Since 2010, the firm has been the principal partner and global shirt sponsor of Manchester United, one of the world’s most successful sports teams and one of sports’ most recognized brands.

    This season’s PepsiMax International series will be the sixth regular-season game hosted by the NFL at Wembley Stadium, and is expected to be a sell-out. A limited number of tickets are likely to become available via team returns prior to the match and will be available at www.ticketmaster.co.uk.

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      What a month of high adrenaline activity this has been – not for me personally, as my world is sadly bereft of adrenaline and more likely to suit a course of Valium.

      I am, of course, referring to Felix Baumgartner, the supersonic skydiver who tumbled from space last week, ironically just as the space shuttle, Endeavour, was being towed into retirement at 2mph along the streets of L.A.

      Another Red Bull event this month involved the human equivalent of a flying squirrel leaping from a 1400m mountain over the Great Wall of China, racing to the ground in 23 seconds and flying underneath a cable car to add a bit of thrill to the proceedings.

      My point is that with such feats hitting the news, we should not be surprised that some travellers around the world are now looking to achieve more and more from their holidays; posting photos of their latest stunts on Facebook and Pinterest, encouraging their friends to then go higher, faster or just plain scarier. Even the elderly traveller is no longer satisfied with Marbella coffee mornings and is branching out with camel treks in Mongolia and hiking in Patagonia.

      From a travel insurance point of view, this poses a few challenges that may need to be both recognised and managed. Despite ABTA advising of this growing trend, there remain few insurance companies that are actively collecting data on what their customers are intending to do on their travels or what activities they are involved in. In a world where ‘data is the new oil’, it seems a missed opportunity for insurers not to even collect claims data on sports and travel activity.

      With a more adventurous traveller, and technology allowing country-specific underwriting, the travel insurance industry could maybe revolutionise their rating factors. With online and offline sales processes allowing country destinations to be captured for single trip travel, insurer rating is now already becoming more country-specific, primarily based on medical costs.

      However, many rating changes are in reaction to losses incurred in the past and it would be interesting to use travel trends to rate the propensity for potential travel claims more proactively, from stag/hen destinations (e.g. Krakow/Prague) to adrenaline sport/farm work activity (e.g. New Zealand) to cruises (e.g. Norway) to conservation (e.g. Rwanda, Borneo), and even destinations where booze-fuelled accidents are more likely in summer (e.g. Spanish and Greek Islands). The key is to use existing data more effectively without adding to the sales process e.g. we could factor seasonality and even age if we could show material impact on performance.

      Quite how we anticipate the next ‘big’ thing and how ‘big’ it will actually be is always the problem. Travel insurance is not a high margin line of insurance and volume remains critical to success. If we increase the work involved in assessment of lower volume risks, does this make the rating and analysis less cost-effective and offset any underwriting benefits? Do we accept that such granular understanding of travel insurance will reap long-term benefits if we are patient? In essence, how much data analysis can we effectively deal with that adds value to the ultimate goal long-term profitability?

      To be continued…

       Written by Greg Lawson, Head of Retail at Columbus Direct

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      Social media as part of customer relationship services is still a young market, and strategies around it remain underdeveloped due to confusion and resistance at the executive level of several industries, says Ovum.

      In a new report, the independent technology analyst firm states that a number of CEOs and senior executives fail to see how social media adds value to their overall strategy, and are therefore reluctant to invest internally or externally in the concept, even though monetarily it is not a huge investment.

      Margaret Goldberg, Ovum IT services analyst, says: “Social media often only requires a miniscule fraction of the seats and revenue required for traditional channels, yet it can provide enterprises with valuable realtime market data. However, enterprise executives are yet to see this value.”

      If enterprise leaders do not become more receptive to leveraging social media, they are going to fall behind and pay the price, suggests Ovum’s research. Leaders must seek help to develop their strategy in this area, otherwise they will miss opportunities to reach customers and access strategic information.

      Goldberg comments: “More customers are using social networks to voice complaints and praise. This is a trend that will continue as the generation that grew up with social media matures. Social media is a horizontal technology in a vertical structure that, if used well, can help a company position itself more competitively.”

      Several trends across vertical sectors have emerged. The retail, hospitality, transportation and technology industries are early adopters of using social media as a customer service channel, and are using it pervasively. However, companies such as banks, financial institutions and healthcare providers are much slower and more reluctant to use this channel due to security, privacy and regulatory concerns.

      Additionally, a number of social networks have emerged and some have lost their appeal within the past year. Social media such as Ping, Buzz and Google Wave are long gone. Instagram (recently acquired by Facebook), Pinterest and Tumblr, to name just a few, are emerging.

      Goldberg adds: “As the space matures, outsourcers will need to develop or integrate with platforms that are able to work with these new sites and aggregate data for analytics. As outsourcers further expand their social media offerings and their own software, it will be crucial to make these as flexible and robust as possible in order to reduce cost, lower time taken to adapt, and more quickly analyse the massive amounts of data on these sites.”

      “Enterprises need to understand how social media fits into their market strategy, and then figure out how to leverage it – using outsourcers to best execute this. Analytics are the real end game for outsourcers. This is a growing market across the outsourcing spectrum, and customer service/social media is no different. Outsourcers should also figure out how to manage the continuing shift to mobile, and develop tools in order to monitor and analyse social network customer engagements generated on mobile devices,” recommends Goldberg.

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      E+S Rück – which bears responsibility within the Hannover Re Group for German business – anticipates stable or rising prices in its domestic market for the upcoming treaty renewals on 1 January 2013.

      “Even though the situation in motor insurance has improved, we still see some ground to be made up in a number of lines. Along with windstorm business, the fire line is also a cause for concern in this regard”, Michael Pickel, a member of the company’s Executive Board, explained during the reinsurance week in Baden-Baden.

      The stubbornly low interest rate level continues to pose a special challenge, especially for long-tail liability lines. In the face of diminished investment returns it remains the case that considerable discipline is needed on the technical pricing side.

      All in all, Pickel is looking to rate increases and stronger demand for reinsurance protection on the German market.

      When it comes to the individual lines of business, the picture is a mixed one. In motor insurance – which is of key importance to E+S Rück since the company is market leader in the reinsurance of this business in Germany – the positive trend should be sustained: in liability business as well as the own damage sector prices are likely to rise further on both the insurance and reinsurance side in the wake of the unsatisfactory results posted in the current cycle.

      A trend reversal is needed in industrial fire/property insurance, which is notable for a high claims frequency. Business with private customers is also under strain: homeowners’ insurance is running at a chronic deficit, not least owing to the numerous frost claims incurred in this line at the beginning of the year.

      In the area of catastrophe covers Pickel expects to see rising demand overall. This will be prompted by model adjustments and the more exacting equity requirements imposed on insurers by Solvency II.

      E+S Rück is also enjoying continued success in the field of product design for personal accident insurance. The company has worked together with various primary insurers to create consumer-friendly protection in the form of so-called hybrid products – which also provide benefit entitlements in case of illness. “Thanks to a new automated risk assessment tool our clients are now able to reach an insurance decision even more quickly”, Pickel emphasised.

      E+S Rück is again looking forward to attractive business opportunities in 2013 and hopes to generate further profitable expansion of its already large market share.

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      Hiscox has appointed Dr. Richard Dixon as its Group Head of Catastrophe Research. In addition, the London Market reinsurance team has been further expanded with the recruitment of Jonathan Lord and Nick Orton as Trainee Underwriters for non-marine treaty business in the US and international respectively.

      Richard Dixon, who reports to Rob Caton, obtained a PhD in Meteorology from Reading University in 1999, studying the processes that lead to severe European windstorms. He joined Risk Management Solutions in 2000 to help in understanding windstorm risk, building catastrophe models and in post-event response. Dixon subsequently worked in the catastrophe modelling teams at Benfield in 2006 and then Renaissance Re in 2010, specialising in catastrophe model evaluation in both roles.

      Jonathan Lord joined Hiscox in September 2009 on the Hiscox Graduate Scheme, before moving on to the Marine and Energy Claims department. His new role will see him focus on non-marine treaty business in North America and the Caribbean.

      Nick Orton, who will focus on international non-marine treaty business, joins from Ascot where he was a catastrophe modeller, with a focus on their reinsurance book. Prior to that role, he attended Lloyd’s graduate scheme. He worked in the underwriting performance and claims teams of the Corporation as well as an external placement with Ascot, as an underwriting assistant.

      Commenting on the new appointments, Russell Merrett, Managing Director , Hiscox London Market, said: “We aim to be class leading in our understanding of Catastrophe Risk and, in Richard Dixon, we have expertise and a wealth of commercial experience that can help us deliver research and insights that will support our ambition. In addition, the appointments of Nick Orton and Jonathan Lord as Trainee Underwriters will further add to the strength in depth that we can offer our clients and broker partners.”

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      Aon Hewitt announced its intention to acquire OmniPoint’s Workday Services company, a leading deployment and integration firm and key partner of Workday, a market leader in Software as a Service (SaaS) HR solutions.

      Once the transaction is closed, Aon Hewitt will be able to significantly expand and accelerate its Workday capabilities, which include providing HR technology and services to mid-sized and large, global organizations. The acquisition will make Aon Hewitt the only company in the industry to offer an end-to-end resource for designing, building and operating the Workday HR platform. 

      “As today’s workforce continues to rapidly evolve, Aon Hewitt is shaping the HR industry and staying ahead of current and emerging trends in the market to empower results for our clients,” said Kristi Savacool, chief executive officer, Aon Hewitt. “The SaaS model is gaining traction across our client base and fits well into our existing service-centered HR outsourcing solution. This strategic investment enables us to rapidly scale our knowledge base, expand our full suite of HR solutions and broaden our capabilities to serve our clients’ unique needs and preferences. It is a bold step to strengthen our industry-leading position in HR solutions.”

      OmniPoint’s team of more than 120 certified professionals bring experience implementing Workday for 125 customers across 108 countries. These professionals will join Aon Hewitt’s current team of existing Workday-certified colleagues.

      After the transaction closes, the OmniPoint team will continue to serve the Workday community as a dedicated operating unit within Aon Hewitt’s HR business process outsourcing (BPO) business, providing both deployment and optimization services. Aon Hewitt will provide broader HR administration services to existing OmniPoint clients interested in outsourcing. Aon Hewitt also will be able to provide a strong Workday deployment capability to new OmniPoint clients as well as current Aon Hewitt clients pursuing a new direction. Keith Diego, managing partner, will continue to lead OmniPoint, reporting to Jonathan Schembor, president, HR BPO, Aon Hewitt.

      “Aon Hewitt has an excellent track record of quality service with a variety of underlying engines in the HR outsourcing space. Joining forces with OmniPoint enables us to provide that same level of service to clients that choose Workday as their HR platform,” said Schembor. “Clients are increasingly interested in hosted solutions like Workday because they are flexible, cost effective and require little maintenance on the part of the employer. Rapidly building a team of experienced and credentialed specialists is important in meeting this growing client demand and expanding our presence in the HR outsourcing market.”

      “We are thrilled to join the Aon Hewitt team,” said Keith Diego. “Our expertise in Workday deployments will be a tremendous complement to Aon Hewitt’s industry-leading HR outsourcing business, and all of our clients will benefit from the added expertise of the combined organization.”

      OmniPoint was founded in 2008 by a small team of former executives from major consulting firms who each had more than 20 years of experience with IT implementations or system integrations. It has major offices in Atlanta, Georgia and Miami, Florida, with a presence in a number of U.S. cities, including Workday’s headquarters in Pleasanton, California.

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      The gap between the amount men and women are saving for retirement has grown to a record high, as women continue to be hit disproportionately by the economic downturn, according to the eighth annual Scottish Widows Women and Pensions Report.  Half of women report feeling worse off than a year ago (compared to 45% of men). The report finds that the gender gap in retirement savings has increased by over 10% in 12 months. In terms of savings put aside for retirement, women are now saving an average of £776 per year less than men for use in old age – significantly higher than the £700 gender gap recorded last year. This means that a 30 year-old woman who maintains this average annual rate of saving will face a shortfall of £29,800 in today’s money, compared to her male counterpart, if she chooses to retire at 65 years-old.

      Based on a sample of 5,200 adults, the report found that the number of women saving nothing at all for retirement has also increased since last year. Over a quarter of women (26%) are now failing to put anything aside for old age, compared to 23% of women who reported not saving last year. In comparison, just under a fifth (19%) of men admit to saving nothing for retirement. As can be seen in the table below, this worrying lack of provision is back at the level it was at three years ago, reversing the improvements seen in 2010 and 2011.

      Failing to save for retirement (%)

      Men

      Women

      2012

      19

      26

      2011

      17

      23

      2010

      19

      25

      2009

      15

      26

      Lynn Graves, Head of Business Development, Corporate Pensions at Scottish Widows said: “Important differences in lifestyle such as being more likely to work part-time or have a full-time caring role, mean women often find it more difficult to save for the long term and retirement. It has therefore never been more important for the pensions industry, Government and employers to raise awareness of this gender gap in retirement savings and help women prioritise their pensions.”

      Debts taking their toll on retirement savings

      A third of women (31%) are prioritising debt repayments over saving for their retirement, with the average amount owed (excluding mortgages) jumping significantly from £10,174 last year to £10,922 this year. In line with this, retirement savings rates amongst women have dropped alarmingly in the past 12 months, as a result of the need to repay short-term debt. Since last year, the average monthly saving has fallen steeply from £130 to £95 for women, whilst the average for men has risen from £174 to £185 during the same timeframe.

      The fall in monthly saving carries considerable long-term consequences. For a 30 year-old woman, this £35 drop in monthly savings could reduce her final fund by £16,000 in today’s money if she retires at 65 years-old. Meanwhile, the slight increase in men’s retirement savings would see a 30 year-old man’s fund bolstered by around £5,000 by the time he reaches the average retirement age of 65 years-old.

      Commitment to save prevails despite tough climate

      As many Britons continue to face pressure on household finances amid wider economic uncertainty, it is clear that long-term saving is being side-lined by many women in favour of a more short-term approach; 42% of women have prioritised living expenses above saving for old age in the last year. Further proving that retirement is not a top priority for many women today, the most popular reason for increasing long-term saving is to ‘save for a rainy day’, with 31% of women citing this.

      Lynn Graves commented: “This ‘rainy day’ attitude reveals that many women view their savings as a pot to dip into to cover unexpected costs at any time and not as a fund to be ring-fenced and protected for the future to pay for retirement. Although there is a clear need to balance everyday living costs with unexpected expenditure shocks, this can’t be at the expense of women protecting themselves in old age.”

      However, this year’s report also showed a positive shift in attitudes amongst women who are already saving into pensions, many of whom are reluctant to cut their contributions. If faced with a 10% fall in income, most women said they would cut spending on food, clothing and going out first and just 3% would cut back on pension contributions. In addition to this, women are also well aware of the need to save for their old age, with 28% of those surveyed who plan to save more over the next 12 months doing so because they want to save more for their retirement.

      Lynn Graves continued: “The recession has had a major impact on people’s attitudes to managing their finances, as the messages to ‘live within your means’ have been hammered home. While women are right to focus on making sure their debts are manageable, other sacrifices may need to be made to ensure retirement planning is in place.

      “There is clearly a demand for greater financial support and financial education to help people get the balance right between managing debt payments and taking a realistic approach to long term savings.”

      0 0

      French President Francois Hollande demanded an inquiry Saturday after a mother lost her baby in giving birth in a car on her way to hospital because the clinic closer to her home had been closed in a health care shake-up. 

      “No French person should be more than 30 minutes from emergency care,” Hollande said, adding that “medical deserts” in rural areas were unacceptable.

      The baby’s death occurred Friday in south-western France’s Lot region as the mother and her partner were trying to get to a hospital more than an hour from their home near the town of Figeac.

      They were forced to stop on a motorway as the birth began and the child died soon afterwards. The local maternity clinic at Figeac had been closed in 2009 despite warnings from doctors and hospital staff as part of a policy to concentrate care in more modern establishments, often in or on the edge of major cities.

      A national lobby group supporting neighbourhood hospitals called Saturday for a moratorium on the closure of maternity units. Its president, Michel Antony, said that two-thirds of such units across France had been closed in the past 20 years.

      “We are faced with the dominant ideology that concentrating is the solution, which is wrong,” he told AFP.  “If another maternity clinic had been kept in the Lot, yesterday’s drama would not have happened.”

      Cahors, France, Oct 20, 2012 (AFP) 

      0 29

      New research reveals that Saturday nights in are the new nights out as more than four in five Brits (86 per cent) are opting to cosy up with friends and family in front of the television in the run up to Christmas – but are still forking out a small fortune to do so.

      The Saturday night study by Sheilas’ Wheels home insurance reveals that having four guests over for a girls’ night in to enjoy the likes of Strictly Come Dancing, X Factor and Take Me Out can set a host back up to £173.55 with the majority spent on alcohol or takeaways – up to £11.24 and £10.92 per person respectively.  With over a third of Brits (37 per cent) having at least four guests over on a typical Saturday night it is no wonder costs are soaring.

      In comparison, a night at the local pub will set Brits back £17.01 each on average and an evening eating out in a restaurant comes in at £21.95 per person.  As an alternative, Brits spend £28.00 on average for a family ticket to the cinema.

      Two fifths of Brits (40 per cent) will stay in every Saturday evening in the run up to the festive season with 29 per cent saying that Saturday night TV is too good to miss, a further 61 per cent admitting that the cold weather is a deterrent when it comes to a night on the tiles and 59 per cent claiming they actually have more fun at home.

      A night in with friends and family costs £5.55 more per person (that is £22.20 extra for a family of four) than it did ten years ago – despite 57 per cent of Brits choosing their living room as their weekend destination over the dance floor in a bid to save money.

      Following the controversy of the first live show, X Factor topped the list of the nation’s favourite Saturday night entertainment with 33 per cent of the votes, followed by Strictly Come Dancing (28 per cent) and sporting Saturday night staple Match of the Day (21 per cent).

      45 per cent of hosts admit to ordering takeaway for their visitors rather than cooking up a storm in the kitchen – with 72 per cent dialling a dinner even if they are spending the Saturday night alone or with their partner.  With the average large takeaway pizza priced at £16.49, a costly Chinese coming in at £37.12 for a family of four and a mouth-watering Indian around £46.30, it is no wonder that the expense of Saturday nights in has escalated(3).

      Guests are also digging deep spending up to £66.51 on drinks for their hosts and other guests and ordering taxis of up to £38.31 on average to be able to enjoy a tipple at a friend’s without worrying about having to drive home.

      As if cosying up on the couch was not costly enough, over half of women (55 per cent) have even forked out for a new outfit to enjoy a night in front of the television – inspired by the glamorous judges on X Factor and outlandish outfits on Strictly – spending up to £100.

      With talent shows taking a front row seat on Saturday evenings, over a quarter of Brits (26 per cent) admit to recreating these scenes in their homes – from sing-a-long sessions to energetic dance-offs.  It is perhaps no wonder then that 14 per cent of over-enthusiastic guests have caused damage to a host’s home and a further one in five (20 per cent) have broken or knocked something over in their own household.

      Jacky Brown at Sheilas’ Wheels home insurance said: “A night in was once the favoured option for cash-strapped Brits.  However, our research shows how spending can escalate especially if you are the host.  Planning ahead and making your own Saturday night treats in the kitchen can keep costs down – and if you are the guest, always bring a small gift for your host.

      “Unnecessary damage to homes can be avoided by taking care and if you are expecting energetic guests it is probably best to put valuables and breakables in another room.”

      AT-A-GLANCE COSTS :

      The average Saturday night in watching TV costs £34.71 per person:

      • Alcohol £11.24
      • Takeaway £10.92
      • Snacks (e.g. crisps, dips, sweets) £6.23
      • Soft drinks £6.32

      0 0

      Jelf Employee Benefits has revealed shocking statistics that, based on current life-expectancy data and the proposal to link state pensions to longevity, the great-great grandchildren of today’s children may not be able to retire until they reach the grand old age of 100. Or, put another way, children born in the year 2104: four generations down the line, will not receive state pension until 2204.

      Ronjit Bose, commercial director at Jelf Employee Benefits said: “Whilst we’re not quite in this dire situation yet, we’ve produced these figures to highlight two very real issues for employers: the need to help employees understand and to engage with their pension and workplace savings benefits and also the requirement for employers to adapt their workplaces for more mature staff.”

      Jelf Employee Benefits believes that the industry and employers need to prepare for workforces becoming older and all the ramifications this will have in terms of benefits.  And this is already a very real issue today: employers need to get their staff engaged with pensions sooner rather than later, or they may have a workforce unable to retire because of inadequate savings.

      Bose continued: “If employers and employees both significantly increase their pensions contributions then the situation can be reversed: employees will be able to retire when they’re ready, which will be beneficial to themselves and their employer.

      “Auto-enrolment is a great starting block for this type of discussion with employees but sometimes it’s only these kind of statistics that really focus the mind of employees who may tend to put other priorities above retirement planning.”

      The calculations

      – PwC research shows that children born in 2012 will retire at the age of 77.

      – It is widely accepted that longevity seems to go up by 2.5 years every decade. Therefore,

      Born in 2012 = age 77 to retire

      Born in 2022 = 79.5

      Born in 2032 = 82

      Born in 2042 = 84.5

      Born in 2052 = 87

      Born in 2062 = 89.5

      Born in 2072 = 92

      Born in 2082 = 94.5

      Born in 2092 = 97

      Born in 2102 = 99.5

      Born in 2104 = 100

      – A generation is calculated on average as 25 years, there are 92 years between 2012 and 2104.  This is the equivalent of just under 4 generations – children, grandchildren, great grandchildren, great-great grandchildren.

      – Nb other variables may affect these projections.

      0 0

      New research commissioned by Tesco Bank Life Insurance reveals that over a third of British families (37%) have never discussed with their partner or another family member what will happen to their dependent children if either of them dies.

      Parents’ reluctance to face up to questions about their own mortality is just one part of the ‘family protection gap’ identified in the research.  Over 40% of all parents with children under the age of 18 do not currently have life insurance, with 60% of these parents citing one or more of the money worries listed as a key reason for not doing so.

      Of the parents surveyed who don’t have life insurance, over a fifth (21%) focus on daily finances rather than looking at their longer-term financial planning perhaps because they don’t realise how affordable it can be – 39% of those who don’t have life insurance indicated that the main reason for this is because they couldn’t afford it. However, the research shows that almost half (46%) of parents surveyed spend at least the equivalent of an average monthly life insurance premium (£15-£20) on some entertainment activities for their kids over just one weekend.

      One in five parents surveyed (20%) also admitted that they don’t really understand how life insurance works.

      Psychologist Honey Langcaster-James says : “There is a certain amount of reluctance on the part of many families to discuss what will happen if they or their partner dies. This issue throws up big, challenging questions about life and death and many would prefer to just stick their head in the sand. Families are using the perceived cost to justify why they do not have the necessary cover in place. However the real issue here is not one of cost as the findings above clearly demonstrate.”

      Jon Daniels, Head of Protection at Tesco Bank comments : “At Tesco Bank, we understand the financial and emotional pressures that our customers face when considering how best to protect their families for the future, particularly in the current economic climate.

      “Tesco Bank Life Insurance is a straightforward policy which, with average premiums of £15-20 per month, provides affordable peace of mind for parents.”

      Tesco Bank has worked with Aviva to offer free cover for all new parents: £10,000 per parent for children under the age of one, up until their first birthday.

      0 1

      Aviva has announced the launch of a new online Continuing Professional Development (CPD) tool. Designed to give advisers access to relevant CPD in order to demonstrate their continuing competence in a post RDR world.

      The new Retail Distribution Review (RDR) professionalism rules set out by the FSA, specifies that all advisers are required to undertake a minimum of 35 hours CPD each year, 21 of which needs to be through structured elements such as workshops, courses or computer based training.

      To address this development need, Aviva has broadened the provision offered through its Financial Adviser Academy (FAA) to include on-going CPD learning materials and validation tests.

      The interactive website offers:

      – Personalised home page – displaying adviser’s personal record of both structured and unstructured CPD activities completed.

      – Technical Knowledge – a full range of technical CPD modules covering all the learning outcomes required by the regulator – which can also be used for studying towards awarding body exams such as IFS, Calibrand and CIOBS – as well as on-going support for the CII “R” exams, including chapter summaries, practice exams and links to useful websites.

      – Personal Skills – a range of materials to help advisers develop their personal skills, including presentation, questioning and listening skills.

      – Business evolution – materials designed to help advisers develop their business, such as understanding the customer, relationship management and analysing key business data.

      In each area, advisers have access to course materials and a validation test system, which will enable them to achieve their desired learning outcomes and track all their CPD activity throughout the year. This recorded evidence can be used to make their annual declarations of learning to their accredited bodies.

      The CPD tool is available to both new and existing Financial Adviser Academy members. Membership is free and registration is quick and simple at www.aviva.co.uk/academy.

      Andrew Beswick, Intermediary Director at Aviva said, “We have launched our CPD tool to help and support advisers in achieving and maintaining the level of professionalism required in the post-RDR world.

      “This is an opportunity for the industry to take charge of its learning and development and push the boundaries in achieving new standards for financial advice.

      “When it was launched in 2008 the Aviva Financial Adviser Academy was aimed at helping advisers achieve the QCF Level 4 qualification. Four years on, we have almost 20,000 registered members. We remain committed to helping advisers boost their technical knowledge, expand personal development skills and sustain their businesses in this new era.”

      0 0

      Insurer NIG has won exclusive rights to underwrite the core commercial insurance business of Insure Green, the world’s first carbon-neutral insurance broker.

      Insure Green, the only insurance broker globally to be registered to the international British Standard 14001 registration, is a division of Folkestone-based Independent Insurance Services (IIS), provides a range of services including risk management and risk assessments.

      Insure Green brokers a range of commercial insurance products with a focus on environmental best-practice.  The new relationship will see NIG replace an incumbent provider to become the chosen single carrier on all core commercial classes: property, casualty and motor.  This includes the full NIG commercial product range but will be centred on NIG’s Commercial Combined flagship products.

      The partnership with Insure Green fits within NIG’s development plans both nationally and within the South East to drive growth within its Combined product range.

      Ray Johnson, Proprietor, Insure Green said: “We have teamed up with NIG as it provides tailored underwriting and proven claims management that we demand for our clients.  By delivering specialist products to our clients which take environmental issues seriously we are able to include premium discounts, enhanced policy wordings and, more importantly, enable the client to purchase products from a like-minded broker.”

      Alan Brett, Area Business Development Manager, NIG said: “NIG is excited to partner with Independent Insurance Services on Insure Green.  This partnership will help NIG find and reward companies who take into consideration the environment and take steps to minimise their impact within the management of their business.  Our team in the South East look forward to helping Insure Green thrive.”

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