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A powerful earthquake struck eastern Turkey  this Sunday near the city of Van with an estimated population of 370,000.

Turkey’s Kandilli Observatory issued a preliminary magnitude of 6.6. However, the United States Geological Survey has issued a preliminary moment magnitude estimate of 7.2 and a focal depth of 20 km. If the USGS estimate is closer to the actual magnitude, it is the largest earthquake to strike Turkey since the 1999 magnitude 7.2 Duzce earthquake, which killed close to 1,000 people. Earlier that year, a magnitude 7.6 near Izmit in northwest Turkey killed nearly 20,000 people.

According to city officials, today’s earthquake has collapsed buildings in Van and the nearby town of Ercis, although the numbers being reported are conflicting. The Turkish Red Crescent said that 10 buildings collapsed in Van; other reports put the number in Van and nearby towns at 45. A number of aftershocks have followed the mainshock, two of which were magnitude 5.6.

According to AIR, in Turkey, the majority of residential and commercial buildings located in urban areas are reinforced concrete (RC) with masonry infill. Most of these buildings, which are three to seven stories high, have cast-in-place RC frames with hollow brick infill panels and partition walls that are not connected to the frame. Research regarding the poor seismic performance of RC buildings during historical earthquakes in Turkey reveals design and construction deficiencies, including a lack of lateral resistance in the framing systems, irregularities in strength, poor quality construction materials, and inadequate reinforcement detailing and confinement in beam-column joints.

It is in the very early aftermath of this event, and source parameters may change as reports continue to come in from seismic networks around the world. Further information will be provided Monday, October 24th as more detailed data is available.

Source : AIR Worldwide Press Release

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According to the European insurance and reinsurance federation, or the CEA (Comité Européen des Assurances) Europe is in first place in the global insurance market.

The European Insurance Committee has delivered its latest figures. The 5,000 European insurance companies, which employ about 950,000 people, are leaders. Europe leads the world market place, with EUR1,107 billion of contributions in 2010, 61% for life insurance, 29% for damage and 10% for health.

Contributions grew at an annual rate of 3% over the past decade. In total, European contributions represent 37% of global premiums, ahead of North America (30%) and Asia (27%).
According to the charts, the United Kingdom (209Mds), followed by France (206Mds) and Germany (178Mds) are the top three European countries in the market. Regarding life insurance, European insurers have paid 560Mds euros of capital or annuities to their policyholders. Non-life compensation totaled 290Mds euros for 2010, mainly in auto and health.

Investments by European insurers represent over 7300Mds euros in 2010, 54% of GDP in the EU.

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Fitch Ratings has changed Italian insurer Generali’s outlook to negative from stable. This rating action is related to the downgrade of the Italian sovereign rating on 7 October 2011.

Assicurazioni Generali SpA’s issuer default rating (IDR) and insurer financial strength (IFS) are affirmed at ‘A+’ and ‘AA-‘ respectively. Generali’s ratings are influenced by the creditworthiness of the Italian state as the company holds around EUR51bn of Italian government bonds, and also by the broader Italian economic environment. The company holds a material volume of securities issued by Italian financial and other institutions which, in view of the prospects for weaker economic growth in Italy, could reduce earnings and cause it to be exposed to adverse investment market fluctuations. In 2010 Generali derived 29% of premiums and 39% of life operating profit from Italy.

Under Fitch’s criteria ‘Insurance Rating Methodology’, in some circumstances, insurance organizations can be rated up to two notches above the Local Currency Sovereign rating. Generali’s internationally diversified sources of earnings means that its ratings are not automatically correlated with the sovereign rating of Italy, but also are not insulated from an economy where government austerity measures are likely to dampen private consumption and investment.

The Negative Outlook reflects Fitch’s expectations that Generali’s growth and profitability in Italy will remain subdued in the next 12-24 months, which could affect the group’s operating performance. Increasing financial market volatility could also strain Generali’s capitalisation which for the current ratings level is considered by Fitch to be no stronger than adequate.

Positive elements considered in the rating include the group’s ability to share losses with policyholders, for instance, in the case of unit-linked or participating (with-profit) life insurance contracts, as the vast majority of holdings of Italian sovereign debt back Italian life liabilities. Fitch assumes, however, that the greater the level of financial distress of securities backing participating contracts, the less the scope for insurers to share losses with policyholders, as underlying guarantees would start to erode the company’s capital.

Other positive elements include the group’s strong and internationally diversified franchise, its good earnings record and generally conservative management.

Generali’s ratings are likely to be downgraded if the Italian sovereign rating were further downgraded. The ratings could also be downgraded if the operating environment in the group’s core markets deteriorate to the extent that its ability to improve efficiency, consolidated solvency margin and operating performance are impaired.

Conversely, Generali’s Outlook could be revised to Stable if the Outlook on the Italian sovereign rating is revised to Stable.

Generali is the parent company and main operating entity of one of Europe’s largest insurance groups. Total group-wide life sales in 2010 were EUR51bn. It holds a dominant position in Italy through its ownership of INA Assitalia and Alleanza Toro. Generali is also well established in Germany (through Generali Deutschland), France (Generali Iard and Generali Vie), Spain (Generali Espana), Switzerland (BSI and Generali Switzerland) and central and eastern Europe through its joint venture, Generali PPF Holding.

Source : Fitch Ratings

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California governor Jerry Brown won praise Monday for banning under 18s from using tanning beds, the first US  state to do so to protect minors from increased skin cancer risks.

The move was approved amid a slew of new state laws, including one that  bans people from openly carrying guns in public, while he vetoed a plan to let  colleges take account of ethnic make up in their admissions policies.

Brown signed the tanning bill into law Sunday after dismissing arguments  from the tanning industry that the current law — which requires children  between age 14 and 18 to get parental consent — was sufficient.

“California’s decision to ban under 18 year olds from tanning beds is a  welcome step in the right direction for a needless exercise that is a known and significant health threat,” Wendy K.D. Selig, head of the Melanoma  Research Alliance.    “It is well documented that indoor tanning contributes to skin cancer,  including melanoma, which can have fatal consequences,” she added.

The MRA cited studies compiled by the World Health Organization which said  there was a 75% increased risk of melanoma — the most common cancer in US  women age 25-29 — in indoor tanning bed use.

The author of the new law in California — which enjoys year-round  sunshine, in the south of the state at least — also praised Brown, saying the  move was backed by doctors, nurses and the American Cancer Society.

“I praise Governor Brown for his courage in taking this much-needed step to  protect some of California’s most vulnerable residents — our kids…. If  everyone knew the true dangers of tanning beds, they’d be shocked,” said Ted Lieu.    Meanwhile Brown also signed into law a bill banning handgun owners from  openly carrying their weapons in public.

Until now Californians have been able to carry unloaded guns in public, but  police and sheriffs had sought to ban the practise because it makes people  frightened.

“I listened to the California police chiefs,” Brown said in a statement,  while deputy Anthony Portantino, the author of the bill, added: “The bottom  line is the streets will be safer for law enforcement and families.”

Brian Malte of the Brady Campaign to Prevent Gun Violence said: “This  finally puts an end to the dangerous and intimidating practice of carrying  openly displayed guns in public.

“California families will now be able to take their families to the park or  out to eat without the worry of getting shot by some untrained, unscreened,  self-appointed vigilante,” he added.

Among other legislative action, Brown vetoed a draft bill that would have  let public universities in California consider race, gender or ethnicity in their admissions processes.    The bill had been highlighted by Republican students at the elite US  Berkeley college who organized a campus bake sale which charged students  different prices depending for cookies, depending on their minority status.

Los Angeles, Oct 10, 2011 (AFP)

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Legal &General are launching an exclusive deal with Lifetime Legal Services, to provide a new ‘one stop legal shop’ for its business protection clients.

An expert panel of solicitors will offer a bespoke legal service for business protection customers. The offering will include a fixed price menu for business protection legal services and is exclusively available for Legal & General Business Protection clients.

Lifetime Legal Services are specialists in a range of legal services, including Small Business, Tax, Trusts and Estates Law (including probate). They have over 16 years experience in serving clients legal needs.

This new service, endorsed by Legal & General, gives advisers an expert solution to offer their clients and helps them complete the circle of advice by demonstrating full duty of care. Advisers will pass the client details to Lifetime legal, who will ensure that any legal work required, is completed swiftly and efficiently, to support the protection of business assets.

Clare Harrop, Head of Specialist Protection at Legal & General said, ” I am delighted that we are endorsing this unique service for our business protection clients. We know that advisers often feel swamped, as there is a lot of legal work that is required when writing business protection policies. This new service has been designed to ensure that the legal requirements are all taken care of by a panel of experts.

This is a huge benefit for advisers, as they won’t have to worry about policy paperwork or dealing with third party solicitors. Our arrangement with Lifetime Legal provides bespoke legal advice for every client and helps make life simpler for advisers so that they can concentrate on recommending business protection solutions”.

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New research from ethical Triodos shows that only 3 per cent of savers in the UK feel their bank does enough to explain how their savings are used once they are deposited.

The research asked savers to say how transparent they felt their banks were when it came to their approach to lending out and investing consumer savings deposits.

Triodos’ research also reveals how bank customers feel about their savings potentially being used to support industries traditionally considered controversial. Over half of savers (53 per cent) said they would be concerned if they knew their bank was lending money to exploitive consumer goods production (i.e. sweatshops). A similar number (50 per cent) would be concerned about their bank lending to weapons production, and over a third (34 per cent) have issues with funding intensive animal farming

Over half the respondents, (54 per cent) claimed that if they knew their bank was using their deposits to fund contentious sectors, they would vote with their feet and consider switching providers.

Charles Middleton, Managing Director at Triodos Bank said: “Our research makes it very clear that the majority of savers are genuinely concerned about how their deposits are being used. The banking sector as a whole must acknowledge  customers’ interest in the use of money, and properly consider the role that its power and influence can play in acting for positive change. We believe savers have a right to know if their hard earned cash is being used to fund industries such as weapons production or the tobacco industry, only then can they make an educated choice as to where they deposit their money. “

Half of those surveyed (50 per cent) feel there is little information freely available explaining how consumers’ savings are used, while over a quarter (26 per cent) have never had any information from their banks. The public clearly thinks this situation is unacceptable, with 85 per cent of savers agreeing more information should be freely available about what happens to money saved with a bank.

Charles Middleton continued: “UK consumers want and deserve a full understanding of where their money is being invested and lent, so they can make informed decisions about where to deposit their savings. With over three quarters (76 per cent) of bank savers saying they have little to no information from their banks as to where their hard earned savings are being used, they are powerless to do anything. We therefore urge the major banks to make their business models transparent to customers, with clear reporting on all levels of business.”

Source : Triodos

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With some meteorologists forecasting the UK’s third harsh winter in succession, car manufacturers and tyre companies are widely advocating the fitting of winter tyres. 

According to the AA, winter tyres effectively improve traction, braking and cornering on wet or icy roads, at temperatures below + 7 degrees Celsius. But last winter, there was confusion as some motor insurers considered the fitting of winter tyres to be a ‘modification’ warranting an increased premium or, at worst, withdrawal of cover.

Simon Douglas, director of AA Insurance, says: “I believe that this was a misunderstanding by some insurers.  It is ludicrous for an insurer to penalise a driver for fitting winter tyres, given that doing so both underlines a responsible approach to safety by the driver as well as reducing the likelihood of a collision.”

Mr Douglas says that provided the winter tyres and wheels to which they are fitted meet the car manufacturer’s specification and are fitted professionally, there should be no need to inform your insurer.  “But if you do tell your insurer, there should be no change to your insurance premium.”

He adds: “If your car insurance is due for renewal it would be worth checking with your insurer first.  If they aren’t happy about you fitting winter tyres, you could move to an insurer that is.”

In many parts of Europe, where the winter weather is more predictable and severe than in the UK, it is common practice or a legal requirement for drivers to keep two sets of tyres and wheels – a set of ‘summer’ or standard tyres and a set of winter ones.

However, Mr Douglas does not believe that winter tyres should be compulsory in the UK as some commentators have suggested.

 “Most parts of the UK rarely suffer the kind of prolonged winter weather that would justify making them a legal requirement.  But they do make sense if you live in more remote parts of the country or where severe winter conditions more commonly persist.

 “It has to be an individual choice and users should not have to worry about whether their insurance will continue to be valid,” he says.

 “If drivers don’t fit them they should make sure that their standard tyres are in good condition and have at least 3mm tread depth; and adapt their driving style to suit the weather conditions – for example keeping a much larger gap from the vehicle in front and avoiding heavy acceleration and sharp braking.”

Source : The AA Press Release

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    Interbrand has ranked 100 brands by assessing divers elements going from retaining talent to delivering customer expectations. Axa holds ranked 53, and is the first global insurance brand present in the ranking in front of Allianz, which ranked 67.

    Interbrand highlights the ability of AXA to “redefine its industry by focusing on customer insights”.  Available, attentive and reliable, AXA is committed to offer its clients “tangible proofs”, instead of making promises. A strong senior level and employee commitment is also highlighted.

    Véronique Weill, Chief Operating Officer of the AXA Group comments :

    “To be the first insurance brand worldwide is something that the AXA Group can be proud of, and I would like to congratulate all the employees for their professionalism and their daily efforts dedicated to our clients. This also gives us a great responsibility, because we have to keep on earning the trust our clients grant us. Our brand is indeed a precious asset that has to show our clients that our core mission is to serve them well. But we have to keep on nourishing and strengthening it to keep offering innovative and tailored solutions to our clients throughout their lives,”.

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    Early findings from the Aon Risk Maturity Index indicate that there is a positive relationship between the maturity of an organisation’s risk management framework and its financial performance.

    Launched earlier this year in partnership with The Wharton School of the University of Pennsylvania, the Aon Risk Maturity Index is a proprietary online tool created to empower risk and finance leaders to assess the development level of their organization’s risk management structure and implementation.

    Index questions focus on corporate governance, management decision processes and risk management processes. Aon and Wharton analyse responses to identify those activities associated with improved financial performance. Upon completion of the assessment questions, participants immediately receive a risk maturity rating, comments for improving the rating as well as insight into the levels of risk maturity globally.

    “By launching this index and performing extensive analysis, we have answered the question business leaders have been asking for years: Does better risk management really make a difference to our bottom line?” said Theresa Bourdon, group managing director, Aon Global Risk Consulting – Americas. “The writing was on the wall, and now we have the facts to support the importance of a strategic risk management framework.”

    Using a preliminary set of index data for publicly traded companies – ranging from mid-sized firms to the largest Fortune 100 organizations, Chris Ittner with The Wharton School determined a statistically significant relationship between the organization’s risk maturity rating and financial performance. Ittner’s findings reflect that higher risk maturity ratings are associated with improved return on assets and stock performance for most firms and the components of maturity associated with these performance differences are likely to vary by industry.

    In addition, analysis of information gathered by the index to date points to common threads among organizations that received an above-average risk maturity rating (i.e. 3.5 – 5 on the 1-5 rating scale).

    “We are seeing firms that rate above average in risk maturity differentiate themselves in three areas: risk complexity awareness, formal agreement on risk management strategy/expectations and the degree to which organizational architecture is aligned to support achievement of risk management objectives,” said Michael Joiner, associate director of Enterprise Risk Management for Aon Global Risk Consulting. “Organizations seeking to enhance their risk management framework can use these three characteristics to develop an initial roadmap.”

    Accessing the experience and knowledge of Aon Risk Solutions, Aon Global Risk Consulting and Aon Hewitt, questions for the Aon Risk Maturity Index were created to align with the following 10 characteristics of risk maturity:

    1. Board Understanding and Commitment to Risk Management
    2. Executive-level Risk Management Stewardship
    3. Risk Communication
    4. Risk Culture: Engagement and Accountability
    5. Risk Identification
    6. Stakeholder Participation in Risk Management
    7. Risk Information and Decision-making Processes
    8. Integrating Risk Management and Human Capital Processes
    9. Risk Analysis and Quantification to Understand Risk and Demonstrate Value
    10. Risk Management Focus on Value Creation

    Source : Aon Risk Solutions

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    Rating agency Standard & Poor’s affirmed short term rating on Aviva International at ‘A-1+’, and then withdrew it. Aviva Insurance also received a ‘A-1+’ short term rating. As a result, the ‘A-1+’ short-term rating on the Aviva PLC guaranteed commercial paper program is unaffected. All other ratings on Aviva International are also being affirmed.

    Standard & Poor’s report :

    As a result of simplifying its legal structure, Aviva PLC has changed the guarantor of its £2 billion commercial paper (CP) program to Aviva Insurance Ltd. (AI) from Aviva International Insurance Ltd. (AII). In practice, this means withdrawing the CP program guaranteed by AII and replacing it with one guaranteed by AI. There are no material differences between the old and new programs.

    The program is a £2 billion euro CP program issued by Aviva PLC and guaranteed by AI. We rate it ‘A-1+’ for several reasons. First, the guarantor for the new program is a core operating entity of Aviva Group and is therefore rated AA-/Stable/A-1+. CP holders rank with senior debt holders, i.e., below policyholders. Therefore, to arrive at the appropriate long-term rating to use as a reference point for the short-term rating, we lower the CCR by one notch to ‘A+’ to reflect this subordination.

    An ‘A-1+’ short term rating is not inconsistent with an ‘A+’ rating level. Factors that support the rating include the level of backup liquidity. This comfortably exceeds the minimum liquidity backup coverage of 50%, as defined in our criteria for an ‘A-1+’ rating (that is, cash and liquid assets plus committed bank lines are equal to 50% of confidence-sensitive short-term debt). On June 30, 2011, Aviva Group reported that it had £1.8 billion of liquid assets held at the group, plus £2.1 billion of undrawn committed central credit facilities. Together, this backup liquidity of £3.9 billion equated to 196% of the program. Of the £2.1 billion facility, £800 million expires within one year, but even excluding this leaves a very healthy coverage of 156%.

    Another factor supporting the ‘A-1+’ short-term rating is Aviva Group’s statement that it has allocated £750 million of its £2.1 billion credit facilities to support the credit rating on the £2 billion CP program. This amount easily supports the £500 million of outstanding or issued CP. As an operating insurance company, Aviva Insurance also has access to liquidity from its cash-generative non-life insurance business.

    Source : S&P

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    As of the 1st of October, workers will be protected from employers who want to fire them because they have reached an age considered too old. Indeed, the DRA, or Default Retirement Age, which permitted staff over the age of 65 to be forced into retirement will simply be abolished.

    Age UK hopes it will prove a major catalyst in ending age discrimination in the workplace which is still rife five years after regulations made it illegal.

    The news comes  as  the latest employment figures show  that  the number of people aged 50 and over who have been out of work for two years or more  has passed  100,000 for the  first time  – virtually double the figure for  the same  period in 2009. The statistics also reveal that the proportion of over 50s facing long term unemployment is greater than for any other age group, highlighting the impact of age discrimination in the workplace.

    Research shows that many line managers  – responsible for day to day  workplace practice  – are still prejudiced against older workers  despite official company policy.

    Another study found  that only one in six bosses believes their business is equipped to deal with greater numbers of older workers – a potentially devastating finding in a country where the workforce is ageing.

    The Default Retirement Age (DRA) was introduced in 2006 at  the same time as regulations (Employment Equality (Age) Regulations)  intended to stop age discrimination in the workplace. But the impact of the regulations was undermined by the DRA which is finally being abolished after a long campaign by Age UK.

    Age UK’s director of charity, Michelle Mitchell said,

    “The end of the Default Retirement  Age is a  victory for older workers who for too long have been consigned to the scrapheap for no reason other than prejudice.

    There is still a long way to go before older workers are treated as equals in  the  workplace. We have seen a  very small  improvement over the last five years but, as the statistics show, not nearly enough. We hope that, by taking away the arbitrary “best before” date for employers, attitudes towards older workers will quickly evolve to look at their skills and experience, not their date of birth.

    “With an ageing population traditional rigid ideas about retirement are changing.. Many people will want to work longer for personal or financial reasons and prejudice should  not  lock them out of the workplace.

    “The government must continue to work with employers and trade groups to highlight the benefits of hiring older workers. And that message must trickle down to line managers who are responsible for day to day hiring and management.”

    Particularly worrying is the increase in the number of older people who have been out of work for two years or more.  Michelle Mitchell said,

    “Older workers must be given improved access to training and back to work support to maximise their skills and appeal to employers.  Otherwise, employers have an excuse to overlook a significant sector of the population when it comes to staffing.”

    Source : Age UK

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    To continue offering employer sponsored benefits, employers in the US are beginning to explore the “Accountable Care Organization” model, while reducing costs and improving care quality.

    The new survey, from Aon Hewitt and Polakoff Boland, of 674 U.S. employers reveals that 28 per cent are interested or very interested in exploring ACOs, while 37 per cent are somewhat interested, 24 per cent are unsure and 11 per cent are not at all interested.  Quality of care delivered is the top ranked factor by 82 per cent of employers in evaluating the use of ACOs.  This was followed by the ability to manage the total cost of care (81 per cent), patient outcomes (66 per cent) and plan/provider pricing transparency (47 per cent).

    “ACOs are considered next-generation health care delivery models, consisting of teams of doctors, hospitals, and other health care providers and suppliers working together to coordinate and improve care for particular groups of patients,” said Michael Cryer, MD and national medical director with Aon Hewitt.  “ACOs reduce cost by providing plan participants the right care at the right time.  By improving access to primary care, plan participants can avoid emergency room visits, which results in a financial reward for the ACO and shared savings with the sponsoring organization or organizations.”

    In addition, this survey found that 87 per cent of employers believe having a primary care physician in the ACO would be a critical or important positive influence on employee acceptance of the model.  Nearly 80 per cent said awareness or reputation of the sponsoring organization is critical or important in influencing employees in a positive manner and 71 per cent of organizations said having different ACO networks or models to choose from would be a critical or important positive influence on workers.  Conversely, 74 per cent of employers indicated that limiting patients to only ACO network providers for care and services would be a significant negative influence on employees and 66 per cent said the same related to the limited track record of ACOs.

    “It’s clear that ACO proponents need to educate the public about the trade-offs between networks,” said Phil Polakoff, MD, MPH, MEnvSc, and managing partner, Polakoff Boland.  “ACO models help organizations reduce health care cost, waste and inefficiencies, as well as support the movement from volume to value-based approaches.  This volume to value-based shift can be seen in various employer practices today, such as pay for performance, accountable quality contracts, incentive compensation and bundled payments, which can serve as strong examples of similar successful models to employers and employees alike.”

    An Accountable Care Organization (ACO) refers to the organisational mechanism adopted by the Centers for Medicare & Medicaid Services (CMS) to implement the Shared Savings Program established by the Patient Protection and Affordable Care Act (PPACA). ACOs have also come to represent a broader value-based approach of delivering care whereby providers assume more financial risk, along with the opportunity of more financial reward for delivering better care at a lower cost.

    When asked to what extent each group should share in the ACO’s cost management risk, employers cited medical groups the most (23 per cent), followed by hospitals (22 per cent), health plans (21 per cent), employers (18 per cent) and employees (15 per cent).

    “The most feasible way to improve care and pricing is for health plans – and federal/state governments – to structure risk contracts with providers whereby physicians and hospitals are responsible for doing ‘the right thing at the right time at the right cost,'” Paul Klein, principal in the Health & Benefits Practice with Aon Hewitt.  “That is the essence of accountability and will likely be the cornerstone of collaboration among stakeholders about how to drive efficiency and quality in the years ahead.”

    Source : Aon Hewitt

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    France’s ecology minister on Tuesday said she would seek labelling requirements for food containers made with bisphenol A (BPA) after a watchdog agency sharpened its concern about this chemical. 

    Nathalie Kosciusko-Morizet said the report by the Agency for Food Health Safety (Anses) — the French equivalent of the US Food and Drug Administration (FDA) — was “troubling”.

    “What I propose first of all is systematic labelling of products containing BPA when the product comes into contact with the public,” the minister told AFP. Labelling would be obligatory and the measure would be introduced swiftly, she said.

    Kosciusko-Morizet said she would also propose a ban on BPA for specific products whenever the compound could be substituted by another chemical proven to be safe.

    BPA is used in “polycarbonate” types of hard plastic bottles and as a protective lining in food and beverage cans. It became a concern following evidence in lab animals of a toxic effect on the brain and nervous system.

    Several countries have introduced voluntary measures or laws to stop the manufacture of baby bottles with BPA and published guidelines on safer use of these containers.In June 2010, the French parliament banned BPA-containing baby bottles.

    Anses on Tuesday issued a report summarising studies into BPA, saying even “low doses” of the chemical had had a “confirmed” effect on lab animals and a “suspected” effect on humans.  Preventing exposure to BPA among infants, pregnant or nursing women was a “priority goal,” Anses said. It said it would hand its investigation to the EU-wide European Food Safety Authority (EFSA) for consideration.

    In September 2010, EFSA said that BPA was safe and there was no need to overhaul European limits of daily exposure, which are 0.05 milligrams per kilo of body weight. They were set in 2006.

    Some studies have found a link between exposure to BPA and coronary heart disease and reproductive disorders.  But, EFSA said, the design of these studies made it impossible to conclude that BPA caused these problems.

    Paris, September 27, 2011 (AFP)

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    Guy Williams has been appointed Head of Directors & Officers and Financial Institutions for Liberty International Underwriter Europe.

    Based in London and reporting to LIU Europe’s CEO, Sean Rocks, Guy Williams is an experienced insurance lawyer by background, specialising in financial professional risks.  He has headed one of the London insurance market’s foremost Financial Institutions teams, held several senior underwriting positions in the financial sector, and most recently managed a leading UK and European Mergers and Acquisitions team. His role at LIU Europe will be to further develop the D&O/FI team as LIU Europe continues to enjoy significant European expansion across all of its product lines.

    Commenting on Guy Williams’ appointment, Sean Rocks said: “The economic turmoil of recent years has driven the demand for both D&O cover and for financial institutions to ensure they access the best risk management advice and products. Guy is a seasoned practitioner with a wealth of D&O/FI expertise, and will be a valuable addition to our team as we continue to expand our underwriting footprint across the UK and Europe.”

    Source : Liberty International Underwriters

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    To expand its risk management service, Andy Barnes has been appointed to the role of head of risk management for Bollington, niche and affinity commercial insurance broker.

    Andy will head up the team of dedicated risk managers at Bollington and brings over 20 years risk management experience to the role.

    Before joining Bollington, Andy was managing director of Henderson Risk Management, where he ran a successful and well established risk management business for four years. He has also been responsible for a large team of risk consultants as the head of Risk Management for Richard Bolton Insurance Group, Technical Risk Services.

    Prior to that Andy was a risk manager to the food industry; working 17 years for J Sainsbury’s, latterly as regional risk manager for the North.

    Chris Patterson, director at Bollington Insurance Brokers Ltd commented: “Despite the continued economic gloom there are vibrant growing businesses around that need specialist help to contain and manage risk. Larger established businesses also require specialist risk services and Bollington is actively looking to grow its risk management business to meet the demands of new and existing clients. We are extremely pleased to have Andy on board to lead the expansion and take Bollington to the next level.”

    Source : Bollington

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    Which? new research uncovers widespread poor practice in the payday loans market, including potential breaches of the Consumer Credit Act, poor privacy provisions and inflated APRs.

    With the take up of payday loans on the increase, the consumer champion has reported two lenders – Paydaykong.com and Swiftmoney.co.uk – to the Office of Fair Trading (OFT). Paydaykong.com appeared to be operating without a valid Consumer Credit Licence, while Swiftmoney.co.uk failed to show the APR for its loans anywhere on its website.

    Which? has also reported Casheuronet UK, which operates Quick-payday.co.uk and Quickquid.co.uk, to the Information Commissioners’ Office (ICO)  after its researcher received dozens of unsolicited third party emails and phone calls in the days following his application. This was despite the lender assuring Which? that it does not sell customers’ details to third parties.

    Other examples of poor practice included potentially misleading claims about APR, firms encouraging customers to borrow more than they need and to rollover existing loans for several months. Which? also found that several firms had lax website security, with one provider requiring customers to enter their bank details on an unsecured page.

    Payday loan providers typically charge from £20-£35 for a short-term £100 loan. The most expensive Which? found was offered by Wonga.com, which quoted £36.72 for a 30-day loan of £100 – equivalent to an APR of 4,394%. The same amount borrowed through an authorised overdraft from Which? Recommended Provider Co-operative Bank would cost just £1.35.

     Which? executive director, Richard Lloyd, says:

    “Payday loans might seem like a good solution for people whose money won’t stretch to the end of the month, but they should be treated as an absolute last resort. They can be an incredibly expensive way to borrow and we’ve uncovered a long list of poor practice by lenders.

    “A temporary overdraft extension can be a much cheaper, safer way to borrow so if you’re struggling to get to pay day then the first thing you should do is talk to your bank.

    “With increasingly squeezed household budgets, more people are taking out payday loans so it’s vital that regulators keep a close eye on providers and deal firmly with any lenders breaking the rules.”

    Source : Which?

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    In an attempt to ease market concerns on its exposure to troubled Eurozone countries, ING announced it has substantially cut its holding of Italian government debt.

    Financial markets are increasingly worried about European banks’ exposure to fiscally troubled governments in the region. The concerns resulted in an acute shortage of dollar availability for large parts the European banking industry, prompting central banks to pump dollars into the banking system to stem a new liquidity crisis.

    In a presentation posted on its website, ING sought to remove some of this fears, saying it recently sold a substantial part of its bondholdings and that the funding position of its banking arm remains “strong.”

    The Netherlands’ biggest financial company said it held EUR4.7 billion in Italian sovereign bonds by Sept. 15, down from EUR7.3 billion at the end of June. In the same period, it sold off some Spanish government bonds, reducing its exposure to EUR1.7 billion from EUR2.3 billion.

    In total, ING now holds around EUR7.7 billion in Southern European sovereign debt. It said it will “stay alert to further market developments.”

    Rabobank analyst Cor Kluis said ING has benefited from the decision of the European Central Bank to purchase Italian and Spanish bonds, and that its exposure now seems manageable. He noted ING has EUR140 billion available to park at the ECB in case of an emergency. “ING won’t be in the first seat in case banks run into troubles,” he said.

    In the presentation, ING acknowledged that U.S. lenders have reduced their exposure to European banks and that it has “opted for the prudent approach” in tapping alternative funding sources.

    Overall, ING said that its funding position remains strong, pointing at the high proportion of corporate and retail deposits and increased long-term funding.

    Like other financial stocks in Europe, ING shares have been hit hard in the past three months, losing around 39% in value. Some analysts say the sharp drop is also caused by concerns that ING will have trouble selling off its insurance arm through two initial public offerings.

    The firm was ordered by the European Commission to sell the business in return for getting approval for the state aid it received during the financial crisis.

    ING said Wednesday that preparations for the IPOs will be executed “decisively but prudently.”

    Amsterdam, September 21, 2011 (Dow Jones)

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    The Lloyd’s of London insurance market announced first-half losses due to an unprecedented number of major natural catastrophes including the Japanese earthquake and tsunami. 

    The company made a pre-tax loss of £697 million ($1.09 billion, 800 million euros) in the six months to the end of June, Lloyd’s said in a results statement, as it was hit by soaring claims.

    That compared with a profit of £628 million in the same period of the previous financial year.

    “2011 has already been one of the most challenging years on record for the insurance industry with major natural catastrophes devastating communities in Australia, New Zealand, Japan and the United States,” said Chairman Lord Levene.

    “Lloyd’s ability to pay billions in claims to help these communities rebuild is unquestioned and the fact that we have managed to do so without any call on our central capital reserves is testament to the market’s exposure management.”  The group added that insurance claims so far this year have already exceeded those for the whole of 2010, after Japan’s devastating March 11 earthquake and tsunami which sparked a nuclear crisis.

    “To put the figures into perspective, the claims seen so far in 2011 arising from major events have already exceeded the total for 2010 and we have not yet reached the end of the Atlantic hurricane season,” added Levene.

    “Two of the 10 costliest natural disasters since 1950 — the earthquakes in Japan and New Zealand — have occurred this year.”

    London, Sept 21, 2011 (AFP)

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    Which? has underwent an undercover investigation of claims management companies. The findings show misleading advice, unfair contract terms and a general lack of transparency.

    Which? and MoneySavingExpert.com have joint forces to call on CMCs to clean up their act and stop misleading consumers.

    Posing as someone who thought they might have been mis-sold payment protection insurance (PPI), Which? mystery shopped 25 CMCs.  Most of the companies called didn’t follow the rules set out by the Ministry of Justice (MoJ), and Which? identified problems with every company investigated.

    Two thirds failed to advise the caller about the Financial Ombudsman Service (FOS), despite being required to do so.  One said ‘if the bank rejects your claim, there’s nothing you can do’.

    Six repeatedly told the caller they had more chance of success or would receive more compensation using a CMC than by submitting a claim independently.  WeFightAnyClaim, for example, told the caller ‘you have over a 90 per cent chance of claiming it through us, or under a 10 per cent chance of doing it by yourself’.  There’s no proof that this is true, and CMCs are prohibited from making such claims.

    Three of the firms – Aims Review, WeFightAnyClaim and Tucan Claims – charge upfront fees, and some asked callers for payment over the phone.  In a separate survey, half of people who have used a CMC told Which? they were cold called.  Which? and MoneySavingExpert.com would like to see both these practices banned altogether, as they can lead to a pressured situation where people can’t, or don’t, go away and consider their options.

    Which? also found contract terms that were unfair.  The typical fee charged by a CMC is 30 per cent of the compensation received (25 per cent plus VAT), but the definition of ‘compensation’ varies.  Consumers might assume that the fee would be calculated based on the lump sum of money paid to them, but some firms include a reduction in future loan repayments as part of the compensation.  As a result, some people could receive far less than they expect, and in some cases even end up owing the CMC money.

    Richard Lloyd, executive director of Which?, says: “Claims management companies must clean up their act.  All too often, consumers are being misled about their chances of success and how much they’ll have to pay – the last thing people need if they’ve already fallen victim to the PPI mis-selling scandal.

    “We look forward to the Ministry of Justice taking swift enforcement action where appropriate, based on the findings of our investigation.”

    Martin Lewis, creator of MoneySavingExpert.com, says:

    “Even if the claims handling companies all played it by the book, with mis-sold Payment Protection Insurance payouts of £3,000 to £5,000 now being commonplace, the price charged is far too high.  Reclaiming is easy for many, just a case of making a call or writing a letter.  Yet claims handlers often charge over 30 per cent, which for many means losing over £1,000 of their payout and for most, it’s just not worth using these firms.”

    Which? and MoneySavingExpert.com’s best practice for claims handlers:

    – A ban on cold calling and upfront fees

    – All terms, conditions and fees to be published online, making them freely available to consumers without a requirement to share any personal information

    – Fees to be based only on the money paid directly to the consumer

    – CMCs to advise potential customers upfront of free options to make a claim

    – CMCs never to claim they improve your chances of success or an increased payout compared to making a claim independently

    Which? has handed the results of its investigation and the evidence gathered to the MoJ, which will be taking appropriate action with the CMCs involved.

    Source : Which?

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    A group representing community banks urged federal regulators to impose a moratorium on all acquisitions and mergers involving large financial firms–including Capital One Financial Corp.’s (COF) pending plan to buy ING Direct USA.

    “With assets of over $300 billion, this acquisition will catapult Capital One into the fifth largest bank from the standpoint of deposits from eighth place,” said Independent Community Bankers of America Senior Vice President Chris Cole, speaking at a public hearing on Capital One’s controversial plan to acquire ING Direct USA.

    Cole argued that the nation’s largest banks should be shrinking rather than expanding, especially given that banking regulators have not outlined exactly how they will address new financial laws that seek to prevent banks from becoming “too-big-to-fail,” or so large and risky that they could topple the U.S. financial system. As an example, he noted that regulators haven’t put in place a framework for dealing with banks with over $50 billion in assets, a group referred to as systemically important financial institutions.

    Cole said community banks should be allowed to acquire online banking business ING Direct USA, arguing that smaller banks would do more to boost small business lending.

    While the 2010 Dodd-Frank financial law was created to help level the playing field between the megabanks and the rest of the industry, “so far, community banks have not seen much movement towards either goal,” Cole added.

    “Not only are the large banks getting larger, their funding advantage over community banks, which has been estimated to be approximately 50 basis points, appears to be getting even larger,” he said.

    Meanwhile, The Financial Services Roundtable, which represents larger banks said setting “arbitrary caps” ignores market realities.

    “All mergers should be reviewed for competitiveness and the impact on the banking sector and the economy,” said Scott Talbott, senior vice president of government affairs at The Financial Services Roundtable.

    Washington, September 20, 2011 (Dow Jones)

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