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Sofia Ashmore

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Following a fantastic 2011, three promotions and a new recruit later ARAG has had a speedy start to 2012.

ARAG’s sales team is preparing for a growth over the next two years with the appointment of a Broker Business Manager. Matt Warren has moved into the role five years after he joined ARAG as a Business Development Executive.

With a long history of experience in the legal expenses industry and in line management roles he is the perfect candidate to drive the broker sales team forward over the coming years. Andy Talbot, Head of Sales comments: “Matt has been with the company practically from the start and has excelled in generating business from brokers in the South of England. His new role makes him additionally responsible for the UK-wide broker facing development team.”

The marketing team is also preparing for the future with the promotion of Claire Jones to Senior Marketing Executive role. Joining ARAG in 2010 as Marketing & Communications Coordinator, Claire is now responsible for leading the marketing team and implementing the marketing strategy that will propel the ARAG brand into 2012 and beyond.

Business Development & Marketing Director, Paul Hurley adds “This is another newly created role that was required to make sure that we keep pace with our growth plans. We are delighted that we have been able to fill this position internally which shows our commitment to developing our staff.”

As part of the recruitment drive, internal candidate Maria Dudley was selected to fill the new Marketing & Sales Support Assistant role. In her first marketing role, Maria will be a key member of the growing marketing team and provide vital support to the After-the-Event (ATE) sales team.

Taking ARAG employee numbers above 50, Ann Hoddy joins the claims department as a Claims Handler. In this role she will support her colleagues in the Before-the-Event (BTE) team.

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The British Insurance Brokers’ Association (BIBA) has set out its Budget priorities to recognise the importance of risk management and insurance protection to assist growth and business resilience.

In its submission to the Chancellor, Eric Galbraith, BIBA’s Chief Executive highlighted the value of general insurance brokers in helping both individuals and businesses protect themselves through good risk management and insurance protection.

Galbraith stated that this value is being eroded through inappropriate, disproportionate and costly regulation which impacts both the general insurance broker and their customer. On the change of regulation to the Financial Conduct Authority (FCA), Galbraith said that this was the opportunity to create the right regulation and to recognise the difference between banks, insurers, and general insurance brokers.

In the Budget submission, Galbraith highlighted the failure of credit intermediaries which has led to a devastating 50 fold increase in general insurance brokers Financial Services Compensation Scheme (FSCS) levies. He called for the Financial Services Authority (FSA) to urgently progress its review of what BIBA regards as the fundamentally flawed funding of the FSCS to ensure that general insurance brokers are not paying for the mistakes of others.

Galbraith welcomed proposed action by government on signposting which costs government very little but would be of huge benefit to individuals who might otherwise struggle to access suitable insurance protection.

He also called for Insurance Premium Tax (IPT) to remain at the current level of 6% and to avoid further taxing protection through additional insurance costs for customers at a time when income and business margins are tight.

Galbraith outlined the importance of general insurance brokers in difficult economic times to the chancellor saying: “demand for the services offered by BIBA’s members is greater than ever. BIBA’s members play an important role in helping to ensure that individuals get access to the insurance suitable to their needs.”    He also explained the key role of brokers in the sector “contributing 1% to GDP” and “employing more than 100,000 people.”

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Equitrack uses in-vehicle management technology from leading suppliers to enhance vehicle and driver safety whilst helping vehicle operators reduce their running costs. The proposition is based on innovative in-vehicle telematics technology which combines vehicle management and driver performance reporting capabilities.

Equitrack is available to vehicle operators across a variety of sectors including motor fleet, bus and coach, taxi, minibus and commercial vehicles.  The selected technologies give vehicle operators the data and insight necessary for them to take action to improve vehicle and driver safety and to increase vehicle productivity.  Helping to reduce vehicle crashes and therefore contain insurance costs as well as vehicle operating costs will allow brokers to demonstrate their value to clients and aid their renewal retention levels.

Equity Insurance Group’s CEO Ian Foy believes it is an excellent opportunity for brokers to help customers embrace leading technology to drive down all aspects of vehicle running costs and promote road safety, including helping to meet customers’ requirements under the Corporate Manslaughter Act 2007.

Mr Foy said: “Initial reaction to Equitrack from our brokers and their customers has been very positive. This is technology being applied in a highly pragmatic way to the commercial motor market.  Many of the brokers we are speaking to recognise that Equitrack has the potential to deliver dividends in terms of client operational efficiencies as the information it provides helps drive down both costs and claims.

 “Because Equitrack is a flexible solution from a panel of suppliers it can be tailored to suit unique customer requirements. For example, a fleet manager can use the solutions to track the location of drivers and ensure that their drivers are aware of their driving behaviour on the road. Increased awareness leads to safer driving, improved fuel efficiency and ultimately reduces exposure to vehicle crashes. This is achieved through full driver behaviour reporting that can include online driver scoring or in-vehicle driver alerts following events such as excessive braking and cornering.

Equity can use the Equitrack videos and telematics data in the claims management process to defend against fraudulent or exaggerated claims and to allow the Claims team to make liability decisions quickly and accurately.

Equity has been able to negotiate exclusive concessions on Equitrack’s in-vehicle systems that are passed in full onto the vehicle operator.

Equitrack is a combination of navigation, in-vehicle information and video camera solutions supplied by leading technology providers TomTom, Trimble and Roadhawk.

To recognise vehicle operators’ commitment to improving driver safety, Equity will be offering premium discounts up front to customers that subscribe to the Equitrack solution.

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Banking giant HSBC has said it has agreed to sell its general-insurance businesses in Hong Kong, Singapore, Argentina and Mexico for around $914 million. 

The move is part of the bank’s strategy to cut costs and focus on growth, HSBC Group Chief Executive Stuart Gulliver said in a statement to the Hong Kong stock exchange.

“It will enable us to focus our capital and resources on the growth of our core businesses, including the building of our broader wealth management capabilities,” he said.

HSBC Insurance (Asia), HSBC Insurance (Singapore) and HSBC Seguros SA de CV Grupo Financiero HSBC will sell their general insurance businesses in Hong Kong, Singapore and Mexico to AXA Group for around $494 million, the bank said.

Australian insurer QBE Insurance Group would buy the general-insurance business in Argentina and Hong Kong-based Hang Seng Bank’s general-insurance manufacturing unit. Hang Seng Bank is 62 percent-owned by HSBC Group.

The deals would cost QBE around $420 million in cash.

“These long-term collaborations with AXA and QBE will broaden and strengthen the suite of general insurance products available to our retail banking and commercial banking customers in Hong Kong, mainland China, Singapore, India, Indonesia, Mexico and Argentina,” Gulliver said.

HSBC announced last year that it intended to offload its global general-insurance operations as it sought to cut costs and raise capital in the face of the weak global economy and higher capital adequacy requirements.  French insurance group AXA said it had also secured a 10-year exclusive property and casualty bancassurance agreement with HSBC in India, Indonesia and China as part of the deal.

It would make AXA the leading property and casualty insurer in Hong Kong, it added.

“With this agreement we are making a huge step towards becoming the leading property and casualty insurer in Asia,” AXA Asia Regional Chief Financial Officer Francois-Valery Lecomte said in a statement.

Hong Kong, March 7, 2012 (AFP)

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XL Group announced that the Board of Directors of the Company approved a new share buyback program, authorizing the Company to buy back up to $750 million of its ordinary shares. This authorization replaces the approximately $190 million remaining under a previously authorized share buyback program.

The Company expects the purchases to be made from time to time in the open market or in privately negotiated transactions, and that such purchases are expected to be funded from cash on hand. The timing, form and amount of the share buybacks under the program will depend on a variety of factors, including market conditions, legal requirements and other factors. The buyback program may be modified, extended or terminated by the Board at any time. All share buybacks will be carried out by way of redemption in accordance with Irish law and the Company’s constitutional documents.

All shares so redeemed will be cancelled upon redemption.

The Company announced today that the Board declared a quarterly dividend on February 24, 2012 of $0.11 per ordinary share payable on the Company’s ordinary shares. The dividend will be payable on April 2, 2012 to Ordinary Shareholders of record as of March 15, 2012.

The Company also announced today that the Board of Directors of its wholly-owned subsidiary, XLIT Ltd., resolved on February 24, 2012 to pay (a) a dividend of $9.2058 per share on XLIT Ltd.’s Series D Preference Ordinary Shares, which dividend will be paid on April 16, 2012 to all shareholders of record as of April 1, 2012, and (b) a dividend of $32.50 per share on XLIT Ltd.’s Series E Preference Ordinary Shares,

which dividend will be paid on April 16, 2012 to all shareholders of record as of April 1, 2012.

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Aon Affinity, the consumer, association and group program business of Aon Risk Solutions, the global risk management business of Aon Corporation announced today it has entered into a definitive merger agreement to acquire Access Plans, a marketing company specializing in turnkey, private-label membership benefit plans that provide discount products and services, protection benefits and retail services to more than one million customers in the United States and Canada. The boards of directors of both companies have approved the agreement under which Access Plans will merge with an Aon Affinity subsidiary. The holders of a majority of the outstanding shares of common stock of Access Plans executed written consents approving and adopting the merger agreement and the merger shortly after the execution of the definitive merger agreement by the parties. No additional shareholder action is required.

Under the terms of the agreement, Aon Affinity will acquire all of the outstanding shares of and options to acquire Access Plans common stock for an aggregate consideration of approximately $70.1 million in cash, subject to downward adjustment to the extent that the amount of cash held by Access Plans at closing, net of indebtedness, transaction costs and certain other expenses, is less than $15 million. Assuming a net cash amount of $15 million, the per share cash consideration is estimated to be $3.30; however, the actual per share merger consideration will be determined by the formula set forth in the merger agreement.

Access Plans is the nation’s largest membership plan provider in the specialty rent-to-own market space. The company bundles a broad range of non-insurance products and services – from discounted medical, dental, vision and pharmacy services to groceries, restaurant meals and hotel rooms. These plans are sold to consumers primarily through more than 300 retail and rent-to-own businesses. Access Plans recently divested its insurance marketing division. As a part of Aon Affinity, Access Plans is expected to add approximately $18 million of revenue to Aon’s financials.

Aon Affinity specializes in providing custom insurance and risk management programs to more than 200 major professional associations and corporations, serving 16.5 million individual customers.

“At Access Plans, we provide opportunities for people to save money on the things they spend money on every day and offer access to products and services they might otherwise be unable to afford,” said Danny Wright, chairman and chief executive officer of Access Plans. “This sale represents a natural step for us. Becoming a part of the leading risk advisory firm translates into a positive outcome for our shareholders, greater options and value for our clients and increased opportunities for our colleagues.”

“Access Plans’ expertise perfectly complements our business model,” said Kevin Garvin, CEO of Aon Affinity. “We share a commitment to creating revenue for our business partners, offering differentiated products and services to the public and delivering unmatched value to our clients.”

Aon Affinity President Bill Vit added, “Continued growth is a top priority at Aon Affinity, and the addition of Access Plans opens up an exciting new market and discount product portfolio for us. Our ability to attract new channel partners will be greatly enhanced by bundling Aon Affinity specialty insurance offers with Access consumer discount products.”

The executive team and administrative staff of Access Plans will remain in their Norman, Okla. and Irving, Texas locations. Access Plans will operate as a business unit of Aon Affinity, which is based in Hatboro, Penn.

The transaction is expected to close during the second quarter of 2012 and is subject to various closing conditions.

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Everything you know about dieting is wrong, say US scientists who have devised a new formula for calculating calories and weight loss that they hope will revolutionize the way people tackle obesity. 

Obesity rates have doubled worldwide in the past 30 years, coinciding with a growing food surplus, and the ensuing epidemic has sparked a multibillion dollar weight loss industry that has largely failed to curb the problem.

Current standards in the United States, where two thirds of people are overweight or obese, advise people that cutting calories by a certain amount will result in a slow and steady weight loss over time.

But that advice fails to account for how the body changes as it slims down, burning less energy and acquiring a slower metabolism, researchers told the American Association for the Advancement of Science meeting in Vancouver.

The result is a plateau effect that ends up discouraging dieters and sending them back into harmful patterns of overeating. As an example, researcher Kevin Hall offered up his large vanilla latte, purchased at a popular coffee shop. When he asked, the barista told him it contained about 240 calories.

“The notion was if I drank one of these every day and then I replaced it with just black coffee no sugar, then over the course of a year I should lose about 25 pounds, and that should just keep going,” Hall told reporters.

“People have used this sort of rule of thumb to predict how much people should lose for decades now, and it turns out to be completely wrong.”

Hall, a scientist with the US National Institutes of Health, said his work aims to “come up with better rules and better predictions of what is going to happen when an individual changes their diet.”  He and colleagues said their scientific model is aimed to help doctors and policymakers, while a “back-of-the-envelope calculation” for consumers means cutting small amounts of daily calories, but expecting to cut more over time.

“If I want to lose 10 pounds of weight eventually, I have to cut 100 calories per day out of my diet,” Hall explained.

“You’ll get halfway there in about a year, and then you will eventually plateau, (reaching the goal) after about three years,” he added.

“For folks abroad that works out to about 100 kilojoules per day per kilogram. The contrast is the old rule of thumb predicts twice as much weight loss after a year, and it gets worse after that.”

The new model gives dieters one calorie goal for short term weight loss and another for permanent weight loss. Exercise is also calculated in order to help set realistic goals.

Tests on small numbers of adults who were fed strictly controlled diets showed the model was accurate, though real-life situations are harder to predict.

Study co-author Carson Chow, also with NIH, said the daily calorie cut needed for weight loss was actually smaller than researchers anticipated.

“It is essentially one cookie different a day, so a 150 calorie cookie leads to a seven kilogram (15 pound) difference in weight. That is huge in my opinion,” Chow said.

Their model was first published in The Lancet in August 2011, and a link is available at http://bwsimulator.niddk.nih.gov.

“People can plug in some information about their initial age, their height, their weight, some estimate of their physical activity level,” Hall said.

Add in a goal weight and the “model will simulate what changes of diet or exercise that person would have to do to achieve that goal weight, and then even more importantly what they need to do permanently maintain that weight loss.”

Since The Lancet article appeared, the notion has not exactly taken the world by storm, in part because it’s not primed for public use, but is mainly aimed at doctors and researchers with adult American patients for now.

Also, if a dieter enters an extreme weight goal, the number of calories the model returns may be much too low to be realistic or healthy, so it needs an expert’s interpretation.

“It’s not particularly user friendly… but it is still relatively informative,” said Hall, who maintains hope that some day his message will be heard.

“There is a lot of inertia behind these old rules of thumb,” he said, adding that he was heartened by an editorial in December in the journal of the American Dietetic Association that commented on the idea of a weight loss plateau and mentioned the new simulator.

“It’s going to take some time to get the public and the professional community aware that there is a new way of doing things, and we actually have some tools that weren’t available before.”

Vancouver, Canada, Feb 19, 2012 (AFP)

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At a time when investors are facing some of the most testing market conditions in living memory, insurers are overwhelmingly concerned about meeting the reporting challenges required under Solvency II.  With prolonged periods of frustratingly low interest rates and overall slow growth set to continue, insurers may look to alternative asset classes in their search for yield.

Those are among the key findings of a new survey conducted by the Economist Intelligence Unit, on behalf of BlackRock, Inc. (NYSE: BLK), examining the impact of Solvency II on the asset allocation and investment strategy of insurers with operations in Europe.

The research is based on a survey, which was conducted in October and November 2011 of over 220 respondents from insurers in 18 countries, as well as eight in-depth interviews with insurers, regulators and trade bodies.

Specifically, the research concluded that:

Insurers expect their allocations to alternative asset classes to increase under Solvency II: The proposals within the new regulation will reshape the way in which the merits of various asset classes are assessed in the future.  As a result, insurers have indicated they may move away from government bonds and equities and increase their exposure to alternative assets.  Specifically, almost a third (32%) expect to increase their allocations to private equity and hedge funds, despite the potentially higher capital charges they might face under Solvency II.

–  Meeting Solvency II’s data reporting requirements is a major concern: While a vast majority (97%) of survey respondents are confident in their own investment governance and risk management capabilities, over 90% are very or somewhat concerned about meeting the requirements for timeliness (95%) and completeness (94%) of data under Solvency II. The vast majority are anxious about the quality of data from third parties (92%). In particular, pressure is on third parties to provide the capability to “look through” portfolios, including those in pooled vehicles, with 92% of respondents concerned that they will have to limit their investment strategy as some assets demand more rigorous data requirements.

David Lomas, Global Head of BlackRock’s Financial Institutions Group, commented:

 “Despite several deferrals of the implementation deadline, Solvency II has already proved a major catalyst for change with insurers spending considerable time and resource on preparing for its introduction.”

“As they plan for this new regulation, insurers face a market environment of unprecedented challenges including – a continued sovereign debt crisis, frustratingly low yield from traditional fixed income, high-levels of equity market volatility, and anaemic economic growth.  Against this backdrop, insurers need income to meet their liabilities and the research shows they may look to increase their allocation towards alternative asset classes such as hedge funds and private equity to achieve this.”

 “Additionally, there is a clear disconnect between insurers’ confidence in meeting the requirements of Solvency II and the understanding of the necessary time and resources needed to meet these challenges – specifically in relation to ‘look through’. Anxieties about data management must be tackled if insurers are to achieve the optimum investment strategy and asset allocations to deliver superior returns, and consequently they may need to revisit the amount of time and resource they invest in this area.”

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AA says the main issue for the Government to get to grips with in terms of spiralling car insurance premiums is to kill the compensation culture – full stop.

Prime Minister David Cameron MP was today expected to tell insurance companies that they must play their part in tackling soaring car insurance costs, which has been fuelled by sharply-rising whiplash injury claims.

According to the AA’s benchmark British Insurance Premium Index, the average Shoparound quoted premium for a comprehensive car insurance policy rose by 15% over 2011 and by 33.2% over 2010.

Simon Douglas, director of AA Insurance says: “I believe that the insurance industry is committed to keeping premiums as competitive as possible: but as the gap between premium income and claims payments has widened because of soaring fraud and personal injury claim costs, premiums have had to rise for everyone.

Britain’s leading car and home insurance broker has provided evidence to both the Transport Committee and Office of Fair Trading inquiries into rising car insurance premiums and has consistently called on the Government to:

  • Overhaul the whole claims culture to manage the proliferation of personal injury and accident management firms that encourage people involved in no-fault collisions to make injury claims, even if they have not suffered injury
  • Ban personal injury law and accident management firms from cold-call advertising, which encourages people who might not otherwise have done so, to make claims
  • Overhaul young driver training and introduce driving safety into the national curriculum, as well as improving the driving test and post-test courses.  Courses such as the AA-sponsored BTEC in driving science helps to produce safer young drivers

Mr Douglas says: “A claims culture has developed in this country to the extent that it has become accepted that if another vehicle hits your car, you should make an injury claim regardless of how serious the injury is.  The government recognises this and the Justice Minister has already put forward proposals to overhaul the legal claims processes which we wholeheartedly support.

 “I’m pleased that Mr Cameron has chosen to highlight the issues in this way. It shows that the Government is taking fast-rising premiums seriously and wants to find ways to control costs such as personal injury claims and fraud which have been the main drivers or rising premiums.”

Young drivers

Mr Douglas has also welcomed Mr Cameron’s interest in ‘pay-how-you-drive’ technology to help young drivers reduce their insurance costs.

 “Young drivers have seen their premiums rise faster than average because proportionately, they are taking the biggest share of serious injury claims, especially young men,” he says.

Mr Douglas believes that ‘smart box’ or telematic insurance that measures driving performance will help to improve road safety for young and inexperienced drivers especially.  Such insurance will become increasingly relevant after a European Court of Justice gender ruling takes effect.   From 20 December, insurers will no longer be able to use gender when calculating insurance premiums.

 “Telematic insurance, such as the AA’s new Drivesafe pay-how-you-drive cover, is genuinely gender-neutral – it rewards safe driving behaviour regardless of whether you’re male or female.  It places firmly in the hands of the driver safe and responsible driving, which is rewarded by reduced premiums.”

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Xchanging has become the first outsourcing service provider to be awarded the Institute of Leadership & Management’s Level 3 Certificate in using active operations management in the workplace.

Twelve insurance operations managers completed a nine month course and received the nationally recognised qualification in the structured and disciplined approach to front line capacity planning and control.

The qualification is administered by Active Operations Management International (AOMi) and endorsed by the Institute of Leadership & Management. Working closely with AOMi over the last nine months, Xchanging has been tuning working practices to align with the AOMi model.

Richard Jeffery, Managing Director, AOMi LLP commented: “At AOMi we are committed to the professionalisation of service operations management, and it is great to see the ILM Certificate† gaining in popularity since its launch in March 2010.  Congratulations to Xchanging, who are in fact the first outsourcing service provider to complete the course.

“We also note the growing popularity of the higher-level Post Graduate Certificate in Service Operations Management course, developed by Warwick Business School with input from AOMi.  I see Xchanging’s interest and success as further evidence of increasing rigor and maturity in professional operations management in the service operations community.”

Commenting on the achievement Rob Myers, Director of Insurance Business Processing Services said: “Operational excellence is at the heart of our business. It is central to our results in improving operating effectiveness and efficiency and consistently meeting our customers’ expectations. It’s great that we can now provide our managers with the opportunity for formal recognition and qualification in what they are good at. We are very proud of the managers that have worked hard to achieve this qualification, which is a rigorous undertaking. Xchanging is keenly focused on supporting its leadership to raise performance standards.”

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Republican US House Speaker John Boehner on Thursday blasted new US rules requiring most insurance plans to cover contraception for women over the objections of some religious groups. 

“I think this mandate violates our constitution, I think it violates the rights of these religious organizations and I would hope that the administration would back up and take another look at this,” said Boehner.

Yet a senior Obama administration official said on condition of anonymity that the measures had been decided after “very careful consideration of legal and policy” questions.

US Health and Human Services Secretary Kathleen Sebelius rolled out the new rules in late January, saying that “very careful consideration” had been given to “the important concerns some have raised about religious liberty.”

The move, brought in under Obama’s landmark health care reform law, offers an exemption for churches and other houses of worship.

Other religious groups can qualify for a one-year exemption before they are covered by the new measures until August 2013 when they will have to comply with the law.

Sebelius said when she announced the new procedures that they struck “the appropriate balance between respecting religious freedom and increasing access to important preventive services.”

The final rule, which followed an interim decision announced in August 2011, was applauded by women’s rights advocates but denounced by the US Conference of Catholic Bishops and political conservatives.

Boehner cited “a lot of opposition” to the announced rules, which he charged amounted to “requiring religious organizations to violate their beliefs.”

The new procedures have generated heated political debate, with some commentators questioning whether Obama could face a loss of support among Catholic voters when he seeks re-election in November.

Some commentators have suggested any loss of support among Catholics could be balanced by support for the measures among women voters and the young — a crucial constituency Obama needs to win re-election.

Among the services to be covered are FDA-approved contraception methods and contraceptive counselling; breast-feeding support, supplies, and counselling; and domestic violence screening and counselling.

Also included are annual office check-ups, screening for gestational diabetes, human papillomavirus (HPV) testing for women 30 and older, sexually transmitted infection counselling and human immunodeficiency virus (HIV) screening and counselling.

Washington, Feb 2, 2012 (AFP)

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Expert opinion in response to the article “Extension insurance: don’t leave yourself exposed” 11 January 2012.

BCIS read with interest the article on 11th January 2012 highlighting the issue of updating insurance policies after extending properties. In the current economic climate, more property owners are choosing to extend rather than move, making the need to educate the market on this topic even more relevant.

The Building Cost Information Service (BCIS), a business of the Royal Institution of Chartered Surveyors (RICS,) regularly looks at the impact home improvements and renovations are having on residential rebuilding costs. BCIS has been consulting to the ABI for over 30 years and is the leading provider of independent residential rebuilding costs for houses, bungalow and flats within the UK.

With a continuing downward spiral in house prices over the last couple of years, there has been an ever increasing trend for homeowners to improve their homes rather than move in such an unstable market. With an estimated £25 billion being spent annually in the UK on home improvements and DIY, this trend is not looking likely to reduce any time soon. However, the question remains as to how many of these property owners will accurately update their insurers with the details of such changes?

BCIS is keen to highlight the impact such works will have on the rebuilding cost of a property and advises the best way to recalculate the costs to ensure that the right level of insurance cover is purchased.

Ultimately, to ensure an accurate level of cover is obtained, it all comes down to an accurate rebuilding cost being established for the property and this will increase after a home has been extended. Policyholders who do vigilantly notify their insurer of any improvements to their home should subsequently not fall into the other common trap of increasing the sum insured by the amount of perceived value that improvements add to a home or the amount paid for the work. The correct insured value should be the cost of rebuilding the entire property in the event of a total loss and it’s a misconception that if an extension costs £15,000, the sum insured should be increased by £15,000. The rebuilding cost of the extension as part of a total rebuild will always be lower as the complexities of adding an extension to an existing building do not exist. It should also be noted that although VAT is normally payable on the cost of an extension, it does not apply if the extension were to be rebuilt at the same time as the rest of the property.

As most policies are on a new for old basis, generally speaking it’s only work that increases the size or specification of the property that affects the rebuilding cost.  Replacing a tired kitchen with a new one of similar scope and quality will not increase the rebuilding cost.

Quoting for buildings insurance and ensuring that homeowners have an adequate level of cover is purely reliant upon the accuracy of the information provided by the homeowner and this can prove a tricky undertaking. BCIS recommends that all homeowners, even those that have not carried out any home improvements, should review the rebuilding cost of their home every 3 years, even when it is index linked, and notify their insurer accordingly in order

to stay abreast of a wide range of factors that can affect rebuilding costs.

Extending a property doesn’t only affect sum insured based policies. Even those bedroom rated policies with capped or unlimited cover are potentially at risk. Failure to disclose an increase in the number of bedrooms/rooms can invalidate the policy.

It isn’t only property extensions that can cause problems with bedroom rated policies. Homeowners should take care when declaring the number of bedrooms at their property as insurers regard a bedroom as a room that was originally intended to be a bedroom when the house was built, whether or not it is currently used for that purpose. Failure to advice the insurer of the “original” number of bedrooms could result in a claim not being met in full or even repudiation.

Carrying out some home improvements could reduce the insurance premium rather than increase it. Security improvements carried out to a certain standard may lead to premium discounts.

Ultimately, BCIS recommend that policyholders regularly check the rebuilding cost of their home, whether or not home improvements have been made to ensure that they have the right level of cover at the right price.

Written by : Andrew Thompson,

International Development and Data Director, BCIS 

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Twenty years ago, the price of travel insurance would be the same for anyone under the age of 65 but the day they went over 65, the price would double and sometimes triple. This was based on the premise that the older you became, the more prone you were to illness and therefore required higher medical costs.

In recent years, the way that travel insurance manages the age of customers has improved and become more scientific but it still remains a bone of contention. From the age of 45 and above, there is evidence to show that the risk of getting ill becomes higher and that the costs of treating any illness abroad increase as customers get older, particularly over the age of 70-75. Online medical screening has made the assessment of those with a pre-existing condition that much quicker and cost-effective and thus more accessible.

However, many of the big travel insurance brands are more cautious about older travellers and limit the age at which they are willing to sell an Annual Multi Trip policy, and in some cases, this can be as low as age 65. In other cases, companies will limit the age for selling Single Trip travel insurance or choose to only sell to customers who do not have any pre-existing medical conditions.

However, there are a number of travel insurance specialists such as InsureForAll, AllClear Travel Insurance and goodtogoinsurance.com which are aimed at offering travel insurance to older travellers and those with pre-existing medical conditions. These companies will offer cover to those up to, and sometimes, over 100 years of age and others are able to even cover terminal illness although customers must expect to pay a higher price in most cases.

Customers should always declare any pre-existing medical problems when taking out travel insurance and it is always wise to contact your insurer if you have a change in your health after taking out your travel insurance but before you travel. Ultimately, if you have a claim and have not declared it in advance, the insurer may not pay the claim and this can cost thousands. A heart attack in the USA can costs up to £100,000 if it involves weeks of intensive care treatment and an air ambulance back home.

The message from Columbus Direct is that travel is to be enjoyed by anyone and that there is travel insurance available in the market for 99% of those that want to travel. Our role in the year ahead is to ensure that, wherever we are unable to offer travel insurance, we will always point customers in the direction of a company that may be able to help. Whatever happens, we strongly advise that customers should never travel without travel insurance. Despite all of our best efforts, accidents do happen, illnesses do occur and the unexpected is not always in our control as the recent Italian cruise tragedy and Icelandic volcanoes have shown. Customers cannot avoid or plan for the unexpected but they can ensure that they have support and help when it is required.

Greg Lawson,

Head of Retail at Columbus Direct

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Independent financial advisors should prepare for rises of 50 per cent – or even more – on their professional indemnity insurance, according to a broker who has been working in the market for more than 25 years. 

Jamie Newell, managing director of IFA Solutions, says that he has already seen significantly higher prices for policies that have gone for renewal in the last few weeks.

Newell comments, “For a mid-sized IFA with an annual income of £400,000 or more, rates that had been around 1-1.2 percent of turnover previously are now coming in at 1.6 or 1.7 percent, or even 2 percent depending on the record, and I see no reason why this upward trend will not continue throughout 2012.”

One of the main reasons for these price hikes is that the insurance market capacity for IFA business has been contracting since the collapse of Quinn Insurance in 2010. Recently, two major London market underwriters have indicated that they will not renew IFA policies this year.

This leaves most brokers working with a smaller pool of insurers. Already concerned about the repercussions of the Keydata collapse, insurers see the potential for additional claims if IFAs secure trail commissions in an imprudent manner ahead of the RDR January 2013 deadline. Underwriters also fear that continuing difficult investment conditions could increase the likelihood of mis-selling claims from disgruntled clients.

Professional indemnity insurers also face a number of external cost pressures, again reflected in increased premiums. Weak investment returns and relatively high inflation are particularly worrying for insurers writing liability business where claims may arise years after they’ve received the premium income. Many insurers perceive instability in the eurozone as a threat to the value of their assets which may, in turn, force them to raise further capital to meet Solvency II requirements.

Jamie Newell comments, “At IFA Solutions, we anticipate that 2012 would be difficult, which enabled us to reserve high levels of capacity together with the ability to provide one and two year policies, specifically for IFAs. Our underwriting experience also enables us to offer discounted terms to those IFAs with robust systems and controls.

 “We urge IFAs to prepare well in advance for renewal to get the very best terms and conditions in 2012.”

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The US Supreme Court Monday overturned a California law that set strict standards for slaughtering and selling the meat of sick and injured animals. 

The Supreme Court said California’s law ran afoul of the Federal Meat Inspection Act.

The California law forbids a slaughterhouse to “buy, sell, or receive a nonambulatory animal,” butcher it or sell its meat, or hold it without immediately euthanizing it.

Federal law has no requirement of immediately euthanizing the animals.  The California State Legislature passed the law in response to a documentary released in January 2008.

It showed obviously sick animals just before being slaughtered and cruel treatment of them by slaughterhouse workers at two plants in Chino, California.

The film showed the animals being dragged with chains, rammed with a forklift or having pressurized water squirted up their nostrils to get them to move.

However, the Supreme Court unanimously ruled that California lacks authority to make regulations different from federal law at slaughterhouses inspected by the US Food and Drug Administration.  “The California law runs smack into the (federal) regulations,” Justice Elena Kagan wrote for the Supreme Court.

The lawsuit reached the Supreme Court after pork processing companies sued to overturn the California law.

The US Ninth Circuit Court of Appeals in San Francisco upheld the state law but the Supreme Court reversed the decision.

The key issue in the case was a provision of the 1906 Federal Meat Inspection Act that forbids state regulations of slaughterhouses that are “in addition to, or different than those made under” the Federal Meat Inspection Act.

Some of the meat from US slaughterhouses is destined for foreign markets, where the impact of the Supreme Court decision is uncertain.  Joe Schuele, spokesman for the US Meat Export Federation, said the California law was unnecessary.

“We have a downer law that is effective in keeping sick and infected animals out of the food chain,” Schuele told AFP.  The cruelty and lax safety practices displayed by the California meatpacking plant workers in the documentary showed “they were in violation of the law,” Schuele said.

“It wasn’t the lack of a law that led to that problem.”  The United States exported about $6 billion in pork and $5.3 billion in beef in 2011, according to the US Department of Agriculture.

Washington, Jan 23, 2012 (AFP)

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US health authorities on Friday finalized a change that will force most insurance plans to cover contraception for women and other preventive health services at no extra cost. 

A proposed exception for churches and other groups that may have objected on religious grounds was changed to allow one extra year — or by August 2013 instead of 2012 — for them to comply with the rule.

“This additional year will allow these organizations more time and flexibility to adapt to this new rule,” said Health and Human Services Secretary Kathleen Sebelius.

“This decision was made after very careful consideration, including the important concerns some have raised about religious liberty,” she added.

“I believe this proposal strikes the appropriate balance between respecting religious freedom and increasing access to important preventive services.”

The final rule, which followed an interim decision announced in August 2011, was applauded by women’s rights advocates.

“This is a huge and important victory for women,” said Cindy Pearson, head of the National Women’s Health Network.

“Women need full and affordable coverage for all our health needs — including comprehensive contraceptive care — regardless of where we work.”

Among the services to be covered are “FDA-approved contraception methods and contraceptive counseling; breast-feeding support, supplies, and counseling; and domestic violence screening and counseling,” HHS said.

Also included are annual office check-ups, screening for gestational diabetes, human papillomavirus (HPV) testing for women 30 and older, sexually transmitted infection counseling and human immunodeficiency virus (HIV) screening and counseling.

Cardinal-designate Timothy Dolan, president of the US Conference of Catholic Bishops, lashed out at the decision, saying it forced some people to act against their beliefs.

The decision by the administration of President Barack Obama “ordered almost every employer and insurer in the country to provide sterilization and contraceptives, including some abortion-inducing drugs, in their health plans,” he said.

“Never before has the federal government forced individuals and organizations to go out into the marketplace and buy a product that violates their conscience,” he added.

“In effect, the president is saying we have a year to figure out how to violate our consciences.”

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Specialist broker Voyager Insurance Services Ltd has acquired the Fresh Start book of business from Culpeck Insurance Services for an undisclosed sum.

Fresh Start is a niche offering that provides home buildings, contents and all risks cover to individuals who, either through their own criminal conviction or the criminal conviction of a family member or partner residing with them, often have difficulty obtaining insurance.  Cover can also be offered to landlords letting to people with criminal convictions.  Fresh Start is a rapidly expanding retail brand which grew by 25% in 2011.

Fresh Start was established in 1999 and has referral links with agencies, charities, prison and probation services aimed at helping those people with unspent criminal convictions to make insurance provisions in what is a very difficult area for most insurers.

Voyager director Jonathan Buttery commented: “We are extremely pleased to announce the acquisition of Fresh Start. This complements our development in carefully selected areas that have previously been confined to travel and event-related coverages.  We will be progressing this strategy as opportunities present themselves.”

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Stripe Global Services Limited, a subsidiary of the Tawa plc group, and Alan Gray, Inc. (“AGI”) have entered into a distribution agreement to support the expanding sales of STRIPE in the US market.  

AGI will act as distributor for Tawa and market, promote and sell STRIPE to prospective clients in the US.

STRIPE revolutionises the claims collection process by shortening the value chain, improving information flow and optimising cashflow.  STRIPE is a secure internet based trading solution enabling (re) insurance companies  to transact and process claims and other post placement movements directly to the (re)insurers.  It significantly improves cash-flow though instantaneous notification to (re)insurers, eliminating backlogs and other inefficiencies associated with traditional claims collection processes.

Mike Ceppi, CEO of AGI, said that he is delighted with this opportunity to further strengthen AGI’s relationship with the Tawa group.  He added “I’m very excited about STRIPE.  This is a natural extension to our claims audit and reinsurance recovery services and expertise.  The market response to-date has been excellent, and we look forward to rolling STRIPE out to a wider audience.”

Marvin Mohn, Tawa’s general counsel and head of US operations added: “We know Mike and his team have excellent connections in the US (re)insurance markets.  STRIPE provides us with an opportunity to pull together our joint expertise and contacts.”

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Columbus Direct has been announced as the best lifestyle insurance product provider of 2011-2012 in the Personal Finance Awards. The lifestyle insurance products category of the Personal Finance Awards covers insurance which protects the policyholder against the loss of employment through illness, injury or redundancy.

David Evans, Managing Director of Columbus Direct, said: “We were delighted to have won this prestigious award. It is very gratifying to learn that an independent panel of highly respected industry experts scored us so highly amongst such strong competition. Having been a winner in the Personal Finance Awards last year, and again this year, clearly marks all the hard work everyone at Columbus Direct has put into developing our offering.

The winners of the Personal Finance Awards were decided based on a poll of readers of The Money Pages and What Mortgage websites, followed by an independent panel of judges made up of financial experts across the country.

Source : Columbus Direct

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Merlin Claims, Chartered Loss Adjusters, has deployed BigHand for BlackBerry to better engage in remote working capabilities while achieving a reduced claim lifecycle.

Merlin implemented BigHand for BlackBerry, a market leading voice productivity vendor, as a replacement to traditional portable dictation devices. The benefits Merlin has experienced since implementing the BigHand platform include the ability to take and attach photos and documents whilst on site, access to advanced workflow management, integrated speech recognition and a crystal based analytics module for enhanced management reporting. The results have seen Merlin significantly increase the productivity of its Loss Adjusters whilst working remotely, enabling reports to be instantly sent from site, speeding up initial reporting at the first visit by over 40%.

This combined with a bespoke App, that enables Adjusters to upload details of any communication with a customer directly into Merlin’s claims management system, means the ability to robustly support and drive an enhanced customer experience has been further improved through the use of leading edge mobile technology.

Alex Kilpatrick, Client and Customer Services Director, Merlin Claims, commented: “To support our people and ensure we continue to exceed our clients and their customer’s expectations we are always looking at how we can harness the latest technology to add value to the claims process. BigHand for BlackBerry as well as our ability to develop other bespoke applications is enabling our Adjusters to instantly and effectively communicate whilst in the field. Moving forward we have a number of projects, both for field and office based claims staff that will provide further enhancements and deliver significant benefits.”

Source : Merlin Claims