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Allianz Retail’s Clear household range, will launch to Acturis software users, forming the next stage of the products roll-out.

The household solution, which has been rolled-out to Allianz Retail’s broker network, was launched in early 2009 and represents a move away from the traditional ‘one size fits all’ household cover to a ‘three-tier’ product range. The move has already proved successful with over 50,000 policies sold to-date.

Designed in consultation with brokers, the Clear range comprises of three products: Clear Essentials for basic household insurance, Clear Advance for standard all-round cover and Clear Complete for home owners who require higher sums insured.

Hannah Crompton, personal lines development manager at Acturis comments: “We are delighted to have built on our strong relationship with Allianz by deploying the Clear products on the Acturis system. The products provide our brokers with a range of different cover levels and we are confident that they will be a valuable addition to the platform. We look forward to working with Allianz on further products in the future. “

Tim Pitts, product manager at Allianz Retail, says: “Acturis is the perfect platform for the Clear product range and we have every confidence that our policies compare favourably with our competitors as they have been designed specifically for brokers.”

“We are continually investing in our product and pricing, capabilities to meet the needs of our brokers. The feedback we receive from brokers is vital in ensuring we continue to develop innovative products that centre on the needs of our customers.”

Source : Allianz Press Release

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Brit Insurance, the international general insurance and reinsurance group, is pleased to announce the expansion of its Bristol Team with the appointment of Robin Martin as Branch Property & Liability Underwriter. He takes up his new position immediately.

Robin has over 30 years of underwriting experience in the UK property and casualty market. He joins Brit Insurance from Travelers Insurance Company Ltd., where he was more recently Regional Development Manager for the South West. Prior to this, Robin has held various senior underwriting roles with other commercial insurers with broker relationships throughout the region.

Reporting to Peter Grocock, Head of Brit Insurance’s Bristol operations, Robin will be responsible for managing the existing property and liability account and developing new business in line with the Group’s underwriting philosophy.

Peter Grocock, Head of Office, Bristol commented:

“I am delighted to welcome Robin to the team in Bristol. He has a strong track record and is a well known and respected underwriter in the local insurance market. In particular, he will bring a wealth of underwriting experience to our growing branch, together with some strong personal relationships established with brokers over many years. I am confident he will make an important contribution to our long term development plans”.

Source : Brit Insurance Press Release

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Austrian insurer UNIQA announced on Friday a  sharp jump in earnings last year on the back of booming business in its life  division.

The stock-listed company said in a statement its underlying profit amounted  to 153 million euros ($227 million) in 2010, a rise of 52.8 percent over the  figure 12 months earlier.

Premium income was up 8.4 percent at 6.2 billion euros, the first time in  UNIQA’s history that it has earned more than 6.0 billion euros and it rose  again by 3.5 percent to 1.77 billion euros in the first three months of this  year.

UNIQA said it would pay shareholders an unchanged dividend of 0.40 euro pe  share.

Vienna, April 29, 2011

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Legal & General Investment Management (LGIM) has appointed Sacha Sadan as Director of Corporate Governance.

Sacha joins from Gartmore where he was Senior UK Equity Fund Manager and co-managed a range of UK equity hedge, retail and institutional funds.

He will join LGIM on 6 June 2011 and report to the Chief Executive. The appointment underlines LGIM’s commitment to effective corporate governance as an important contributor to maximising value for shareholders and good business practice.

Kevin Gregory, Interim Chief Executive Officer said “We are delighted to appoint Sacha Sadan to this important role at LGIM. Sacha brings practical experience and insight, which are key ingredients in effective shareholder engagement and corporate governance that deliver value for shareholders. He will lead an established and well-respected team of corporate governance specialists and grow these activities, as we continue our strategy of building our world-class international investment business.”

Sacha Sadan said, “I am excited to be joining Legal & General Investment Management and share their vision of the continued importance of shareholder engagement and corporate governance. Using my hands-on fund management background, with the team’s highly regarded corporate governance expertise, we can continue to make a difference for the benefit of all LGIM clients.”

Source : Legal and General Press Release

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The catastrophe bond issued by Topiary Capital to protect Platinum Underwriters from natural catastrophe risks has been triggered by the Japanese earthquake, but investors will not lose money for now because of the way the bond is structured.

Credit rating agency Standard & Poor’s (S&P) said it had lowered its rating on the bond to CCC+ and removed it from CreditWatch after the official calculation agent, Risk Management Solutions (RMS), determined the March 11 earthquake was an ‘activation event’.

“As a result, the noteholders will be at risk for losses of principal and interest for any subsequent covered events that occur from March 11 through July 31,” S&P said in a statement on Wednesday.

Insurers and reinsurers use catastrophe bonds to transfer to capital market investor’s major risks on their books, such as for storms and earthquakes, freeing up capital to underwrite new insurance business.

Topiary Capital is structured as a second and subsequent event cover, which means the Japan earthquake alone could not trigger any losses to investors.

But risk assessor firm RMS has confirmed the quake was large enough to qualify as an ‘activation event’, which means the bond is now exposed to any subsequent qualifying events over the remainder of its term.

“The deal is effectively now on risk,” Ben Brookes, director, RiskMarkets at RMS told Reuters.

The bond is due to mature in August 2011.

“The bond will be exposed to a small amount of the wind season, so a big hurricane early on could potentially threaten the bond,” Brookes said.

RMS used data from Japan’s seismic earthquake reporting network K-Net to calculate the value of a parametric index, which is used to determine any losses for the Topiary Capital bond.

This is the first bond to receive an official confirmation on the impact of the Japan quake. Other bonds are still exposed, but their fates have yet to be determined.

A further $647 million of the total $1.6 billion exposure is believed to still be vulnerable to losses, based on available data from K-Net, or has been placed on credit watch by rating agencies as a result of the earthquake.

Source : Reuters

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Aon Hewitt is ranked as the number one Multi-Process Human Resource Outsourcing (HRO) provider on HRO Today Magazine’s 2011 Baker’s Dozen list.

The publication surveyed HRO buyers on a series of questions about their service providers and their level of satisfaction with those providers. In addition to the best overall score, Aon Hewitt earned the top spot in two of three categories: breadth of service and quality of service.

“This recognition means a lot to us because it is based on client feedback,” said Jim Konieczny, chief executive officer, HR business process outsourcing, Aon Hewitt.  “It is a strong endorsement of our capabilities and the quality of the service we provide.  Most importantly, it demonstrates the value we bring to clients on a daily basis.”

“Aon Hewitt has demonstrated its market leadership by leading this year with excellent scores in our quality of service index,” said Elliot Clark, chief executive officer of HRO Today Magazine.  “This important sector of HR outsourcing has seen significant change and evolution.  Hewitt was one of the pioneers of Multi-Process HR Outsourcing, and now more than a decade later, their customers have just validated that they continue to dominate the industry with extraordinary performance.”

This recognition comes just weeks after Aon Hewitt’s announcement of its number one ranking in Datamonitor’s Black Book of Outsourcing.

Source : Aon Hewitt Press Release

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The US Supreme Court rejected Virginia’s  request Monday to immediately rule on whether President Barack Obama’s  sweeping health care reform is constitutional.

The decision left the lower courts to hash out the issue before the highest  court in the land would make a final ruling, likely further prolonging the  already bitter legal fight over the controversial law overhauling America’s  troubled health care system.

It also marked the second time the Supreme Court denied a request from  critics of the reform for an expedited review, without the issue being  examined thoroughly in appeals courts first.

But the decision was not surprising. While US law allows for cases to be  examined directly by the Supreme Court without first going to an appeals  court, the process is exceedingly rare.

Virginia Attorney General Ken Cuccinelli, a Republican, had requested that  the top US court issue to hear arguments in the case before the Fourth Circuit  US Court of Appeals in his state’s capital of Richmond does so.

“Regardless of whether you believe the law is constitutional or not, we  should all agree that a prompt resolution of this issue is in everyone’s best  interest,” Cuccinelli wrote in February upon making his request.

The law, one of Obama’s key domestic achievements, has been hotly debated  and challenged across the United States since Congress passed it last year,  and legal experts believe a challenge to the law — which extends coverage to  some 32 million uninsured Americans — will make its way to the Supreme Court.

Two Republican-appointed federal judges — in Virginia and Florida — have  already declared the law unconstitutional, saying a key provision of the law  known as the “individual mandate” exceeds Congress’s regulatory powers by  requiring Americans to either purchase health insurance by 2014 or pay a fine.

But, in another sign of how the rulings have been largely split along party  lines, three Democratic appointees have upheld the law — in Michigan,  Virginia and the US capital Washington.

Governors and attorneys general from 26 US states have also found the  provision unconstitutional in a separate lawsuit.

Related hearings are scheduled in several appeals courts.

The Richmond court is due to examine a decision backing the reform and one  against it during a hearing on May 10.

Washington, April 25, 2011 (AFP)

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Millions of asthma sufferers have been urged to take sensible precautions after a “smog alert” was issued for the Easter weekend, with high levels of pollutants expected to choke the air in England and Wales.

The Department for Environment has warned that the current warm weather will increase levels of ozone and polluting particles known as PM10s, which can affect people’s health.

Some people, particularly the elderly, infants and those suffering from asthma, may notice an effect on their breathing, the ministry said on Thursday.

It urged the public to take “sensible precautions” such as avoiding outdoor exercise and unnecessary short car journeys on what is expected to be the hottest Easter on record.

“Those suffering from a heart condition and who notice a change in their symptoms should get medical advice as they normally would,” the ministry added.”

Around 5.4 million people in Britain suffer from asthma, according to the charity Asthma UK.

The health warning comes as millions of Britons head for holidays at home and abroad.

The extra bank holiday on the day of the royal wedding, added to the late timing of Easter this year, means workers only need to take three days off next week in order to get an 11-day break, starting on Friday before returning to work on Tuesday May 3.

People staying in the UK can expect more warm and sunny weather over the weekend, with temperatures in London and south-east England likely to peak at 27C (81F) on Saturday.

Some two million Britons left the country on Thursday, but those heading to Europe are likely to see cooler temperatures.

The Spanish island of Majorca will only reach around 18C (64F) on Friday, while the maximum on the Greek Island of Corfu are only likely to reach around 17C (63F).

Meanwhile a number of disruptions have been reported on the UK road network as holiday-makers head off in their cars, though the AA warned that “the worst is probably yet to come”.

The M5 in Somerset is currently jammed up southbound between J20, B3133 (Clevedon) and J21, A370 (Weston-Super-Mare), while in Oxfordshire one lane is closed on the M40 southbound between A40 (M40 junction 7) and B4009 (M40 junction 6).

But there was some good news for motorists as the fire-hit section of the M1 between junctions one and four just north of London fully reopened.

The Association of Train Operating Companies said 1.8 million train journeys were expect to take place on Friday, with two million on Easter Saturday, 900,000 on Easter Sunday and 1.5 million on Easter Monday.

Source : AFP

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Aon Risk Solutions in the UK, has been appointed the global insurance broker for the McLaren Group, providing insurance broking services for both its Formula 1 team, Vodafone McLaren Mercedes, and its new production car company, McLaren Automotive.

Demonstrating the breadth of Aon’s expertise, the account is being handled by Aon’s specialist Corporate team in Redhill, supported by Aon’s London Broking Centre.

The challenges presented by the two principal elements of the McLaren Group’s business – its Vodafone McLaren Mercedes Formula 1 team and its new production car company, McLaren Automotive – include placing insurance for entities as diverse as individual cover for racing drivers, pit crew, transport logistics, property and casualty.

Jon Cooper, area director for Aon’s specialist Corporate team in Redhill, commented: “Working with one of the world’s premier automotive and engineering companies on such a diverse range of risks has been a very challenging and rewarding experience. Providing the McLaren Group with optimal solutions demonstrates the power of Aon very clearly. Very few, if any, insurance brokers would be able to bring such best-in-class global solutions to one of the biggest brands in the world – both locally via the Redhill team and globally via the London Broking Centre. We look forward to working with the McLaren Group for many years to come and being a part, if only in a small way, in its continued success.”

Andy Myers, Chief Financial Officer, McLaren Group Ltd, added: “The McLaren Group is delighted to be working with Aon Risk Solutions, which will be providing insurance broking services for every aspect of our vibrant and diverse business, including but not limited to our hugely successful Vodafone McLaren Mercedes Formula 1 team and our new and exciting production car company, McLaren Automotive.

“There’s a natural ‘fit’ between the McLaren Group and Aon Risk Solutions: both organisations are ambitious, innovative, and above all committed to achieving excellence in everything we do.

“I’m sure we’ll enjoy great success together.”

Source : Aon Press Release

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New claims for US unemployment insurance  benefits fell last week but the decline was much smaller than expected as the  sick labor market struggles to recover, official data showed Thursday.

Initial jobless claims dropped to a seasonally adjusted 403,000 in the week  ending April 16, down 13,000 from the prior week’s revised number of 416,000,  the Labor Department said.

The average analyst estimate was for new claims to return to the  under-400,000 level — falling to 390,000 — after an unexpected jump in the  previous week.

However, a broader indicator showed the overall trend remained below the  400,000 threshold.

The four-week moving average, which helps to even out week-to-week  volatility, held below that level for the eighth consecutive week, although it  rose by 2,250 new claims to 399,000.

The insured unemployment rate was 2.9 percent for the week ending April 9,  unchanged from the prior week.

The weekly claims data still pointed to a gradual improvement in the  depressed jobs market, where 13.5 million people are out of work.

In March the unemployment rate ticked down to 8.8 percent from 8.9 percent  in February, thanks to strong job creation in the private sector.

The economy added 216,000 nonfarm jobs, an increase of 11 percent from  February and the sixth consecutive month of overall job gains.

Washington, April 21, 2011 (AFP)

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Brits are suffering from “alarm apathy” and have become resistant to the sound of car alarms, according to a social experiment conducted in four major cities by the UK’s largest insurer.

And with a bumper batch of bank holidays approaching Aviva is warning motorists to take extra care of their cars as statistics show there is traditionally a 10% spike in car crime over the Easter and Spring breaks.

Results from the insurer’s social experiment, released today, revealed that over 80% of people totally fail to register the sound of a car alarm. Moreover, out of 100 passers-by, not ONE person took any action when walking past a car with its alarm going off.

The Aviva study involved setting off a car alarm in central areas of London, Cardiff, Glasgow and Manchester, and monitoring the response of pedestrians. It revealed:

– 83% of people failed to register any reaction whatsoever when walking past a car with its alarm sounding

– The 17% who acknowledged the alarm did nothing more than briefly glance at the car as they walked past

– People from Cardiff proved the most responsive to car alarms, with 25% of passers-by acknowledging the alarm going off – Glaswegians were the least responsive (9%)

– Mancunians are the second most likely to respond to a car alarm going off with 15% acknowledging the car as they passed, followed by Londoners at 12%

Martin Smith, motor claims manager at Aviva, said: “Alarms obviously offer a straightforward method for protecting a car and it’s important that, where possible, cars are fitted with them, but it’s clear from our research that they have become like urban white noise – as commonplace as dogs barking, sirens and everyday traffic.

“Our data shows that theft of and from cars goes up over the Spring break and with an additional bank holiday this year we would urge motorists to adopt other common sense security measures to help them from falling victim to car thieves. So if you’re off to the seaside or on a day out makes sure you hide all your belongings out of sight and choose your parking spot wisely!”

The UK Neighbourhood Watch Trust says they are not surprised at the findings.  Chairman of the Trust, Roy Rudham, added: “What Aviva has highlighted in its experiment is that if you own a car and someone tries to break into it you cannot always rely on members of the British public to respond to your car alarm, despite the ongoing efforts of Neighbourhood Watch and the close communities we live in.

“It is essential, especially around this time of year as car crime starts to rise over the bank holidays, that people take extra precautions to secure their car.  Ideally motorists should avoid keeping valuables in their car, but if that’s not possible, they should hide possessions out of sight and consider investing in a wheel lock.”

Protecting your car and possessions – top tips from Aviva

As the weather improves and the UK enjoys the first long weekends of the year, people who are out and about can often become targets for the light-fingered brigade.

– Guard against theft of valuables from your car at beaches, parks and picnic spots by hiding any temptations for thieves in the boot or, better still, invest in an in-car safe for your valuables.

– As the UK travels to the seaside to enjoy the sun, neighbourhoods can become quieter, providing opportunities for thieves. If you’re out and about, without your car, make sure your car keys are well-hidden at home, as most home-based car thefts result from the keys being stolen from the house.

– Choose your parking spot wisely – think of parking in well-lit places, or about using car parks with security guards and CCTV cameras

– It sounds obvious but remember to lock your vehicle and NOT leave the key in or on it

– It’s easy for a thief to reach your Sat Nav if they’ve smashed the side window of your car. Sat Nav systems often contain personal data which could lead the thief straight to your home, so keep them out of sight when not in use.

– Make a list of all your valuables, work out how much they’re worth and check you’ve got enough insurance to cover their full value.

Source : Aviva Press Release

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Fitch Ratings has affirmed AG Insurance’s Insurer Financial Strength (IFS) rating at ‘A+’ and Long-term Issuer Default Rating (IDR) at ‘A’. Fitch has also affirmed the Long- and Short-term IDRs of the Ageas holding companies: ageas SA/NV, ageas N.V. and Ageas Insurance International N.V. (which merged with Ageas Insurance N.V. and ageas Utrecht N.V.). The agency has withdrawn the ratings of Brussels Liquidation Holding, ageas Utrecht N.V. and ageas Insurance N.V. as these entities no longer exist. The Outlooks on the IFS rating and the Long-term IDRs are Stable.

Fitch has also affirmed Ageas Insurance Company (Asia) Ltd’s (AICA) IFS ratings and Long-term IDRs, both with Stable Outlooks. Millenniumbcp-Ageas operating entities’ (MBCPA) IFS ratings remain on Rating Watch Negative (RWN). A full rating breakdown is provided at the end of this comment.

AG Insurance’s ratings continue to reflect its strong capital adequacy, leading business position in Belgium and healthy profitability. These strengths are offset by the company’s lack of geographical diversification. AG Insurance reported a net profit of EUR351m in 2010 compared with EUR432m in 2009, mainly due to lower non-recurring gains, higher weather-related claims and one-off losses on its bond portfolio. Fitch expects AG Insurance’s solvency to remain solid and that no exceptional dividend will be paid to the holding companies in the foreseeable future. Key rating drivers that could lead to an upgrade of AG Insurance include increased profitability in both the life and non-life segments. Conversely, deterioration in capital adequacy to a level significantly below 200% over a sustainable period could result in a downgrade.

AICA’s rating does not assume group support and reflects further strengthening of the company’s standalone capitalisation on a risk-adjusted basis through the continued accumulation of operating surplus. Stable investment returns, along with ongoing new business growth in the regular premium segment further underpinned the company’s operating profitability in 2010. Key rating driver that could lead to an upgrade of AICA include continued progress in increasing its market presence by further growing existing or new distribution channels. Conversely, deterioration in the local solvency margin to a level below 220% over a sustainable period could result in a downgrade.

The ratings of the Ageas holding companies continue to take into account the fact that they have more cash than needed to repay their debt. Nevertheless, Fitch believes that the holding companies face litigation risk as a consequence of the restructuring of the Ageas group, which is reflected by their IDRs being two notches lower than that of AG Insurance.

Source : Fitch Press Release

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One of China’s biggest life insurers is  set to raise as much as $4 billion in a dual listing in Hong Kong and  Shanghai, marking one of the region’s biggest initial public offerings so far  this year.

New China Life Insurance filed a request for the listing with the  mainland’s insurance regulator last week and plans to submit a request to Hong  Kong’s bourse by the end of May at the earliest, Dow Jones Newswires reported,  citing a person familiar with the planned offering.

Hong Kong’s exchange would then hold hearings to approve the insurer’s  listing.

The $5.4 billion listing last month by Hong Kong tycoon Li Ka-shing’s  Singapore Hutchison Port Holdings Trust, which owns deep-water ports in Hong  Kong and China, is Asia’s biggest IPO so far in 2011.

Last week, Swiss commodities giant Glencore announced the world’s biggest  initial public offering so far this year, with a dual listing in London and  Hong Kong to raise up to $11 billion.

The southern Chinese city claimed title as the world’s biggest IPO hub in  2010, raising more than $51 billion, propelled by Pan-Asian insurer AIA’s  monster $20.5 billion share sale.

Hong Kong, April 20, 2011 (AFP)

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The upgrades reflect RSA’s solid and robust financial profile, characterised by a strong business franchise, consistent across-cycle earnings and a growing level of geographical and class-of-business diversification. The primary offsetting factor continues to be the level of risk-adjusted capitalisation based on Fitch’s internal capital assessment, which remains moderately below the current rating level. The agency considers that this negative factor is mitigated by the low level of volatility exhibited by this measure in recent years, reflecting, in the agency’s opinion, the lower level of risk inherent in RSA’s business model, when compared with some peers.

“The upgrade of RSA’s ratings recognises the financial strength and growing diversity of the insurer’s business profile,” says Martyn Street, Director in Fitch’s Insurance Group. “These qualities were reflected in the solid set of financial results reported by RSA at full-year 2010, a year that presented insurers with a number of earnings challenges. Assuming a more normal level of weather-related losses during the current financial year, Fitch anticipates that RSA will report an improved level of profitability for 2011.”

Fitch’s prospective view of RSA’s ratings will focus on the ongoing development of the insurer’s business. Primary consideration will be given to the level of bottom-line profitability from the growing emerging market (EM) and mature UK segments, contribution from future acquisitions and management of exposure to large-loss events. The agency anticipates that continued revenue growth of the EM segment will translate into improved profitability, as the costs associated with this expansion are further offset. Fitch also expects RSA to maintain a prudent approach to the level of risk assumed within its business.

The primary driver for an upgrade would be a significant strengthening of the capital position. An upgrade recommendation would also consider the continued development of RSA’s operations, including the diversity of operating income by segment.

A material weakening of RSA’s capital position from the currently assessed level, most likely to be caused by either an operating loss or excessive dividend payments, could lead to a downgrade. Given the contrast of coverage strength between Fitch’s risk-adjusted assessment and the published regulatory position, any rating action would factor in the relative movement of both measures. A significant deterioration of underwriting performance, with a group combined ratio above 100%, would also likely cause negative rating pressure given that Fitch views this as a key strength to the business.

RSA reported net written premium (NWP) growth to GBP7.5bn in 2010, a y-o-y increase of 11% (8% on a currency-adjusted basis) with net income of GBP355m, a y-o-y decrease of 15%. The reduction in net income was due to the effects of severe weather claims following the harsh start to the European winter season in November and December 2010, as well as the Chilean earthquake. The adverse weather resulted in claims of GBP255m above normal (2009: GBP175m above normal). This was reflected in the combined ratio, which deteriorated to 96.4% (2009: 94.6%), with the weather losses adding 3.5% to the combined ratio (2009: 2.4%). Positively, Fitch notes that RSA’s net loss estimate for the Chilean quake remains unchanged from the initial estimate of GBP30m.

RSA’s high-quality and low-risk investment portfolio continues to make a significant contribution to earnings, with 2010 producing an underlying yield of 3.8% or GBP538m (2009: 3.9%, GBP523m).

RSA is a leading multinational insurer with the capability of writing business in over 130 countries. RSA’s business is organised into three main operating segments: International, which generated 48% of 2010 NWP, UK (39%) and Emerging Markets (13%).

Source : Fitch Press Release

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Estimated losses from Japan’s earthquake and tsunami for RenaissanceRe should reach USD 220 million; Axis Capital estimates its losses to USD 285 million and Argo Capital Partners Fund losses add up to USD 60 million.

Bermuda-based insurer and reinsurer Axis Capital said losses from the Japan catastrophe will primarily impact its reinsurance segment and does not expect losses from its insurance segment to exceed USD 25 million.

RenaissanceRe, which provides reinsurance and insurance to cover the risk of natural and man-made catastrophes, said it expects losses from Japan to hurt its first-quarter results.

Risk modeling agency RMS has estimated the total insured loss at between USD 21 billion and USD 34 billion, while rivals Eqecat and AIR Worldwide are expecting losses of USD 12 billion-USD 25 billion and $20 billion-$30 billion, respectively.

For a factbox on insurance impact of Japan earthquake

Other insurers most exposed to Japan are Aflac , AIG , MetLife , Munich Re and Swiss Re .

The Japanese government has estimated the total economic impact at USD 198 to 309 billion, although the insurance industry is expected to pick up only a fraction of this as most losses to households are covered by a state-backed reinsurance pool.

Source : Reuters

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According to catastrophe modeling firm AIR Worldwide, a severe thunderstorm outbreak that swept across the Midwest and southeastern United States over the weekend will likely produce significant insured losses in the states of North Carolina and Virginia. Although severe thunderstorm activity occurred in Oklahoma, Arizona, Alabama and Mississippi, this activity—with some isolated exceptions—primarily impacted rural areas; indeed, many of the tornadoes that occurred here touched down in open fields, and much of the damage was to trees, not properties. By contrast, in North Carolina, high winds caused significant damage to suburban neighborhoods as well as business districts.

According to Dr. Tim Doggett, principal scientist at AIR Worldwide, “Although April and May are the worst time for tornadoes in the South, this weekend’s storm system was unusual because of its size and duration. The storm formed when a strong area of low pressure that moved out of the Rocky Mountains and into the Central Plain last week dragged colder air southward from the northern plains to clash with warm, humid air from the Gulf of Mexico. These unstable conditions set up a potent frontal system that, as it moved eastward, triggered widespread supercell thunderstorms. As the jet stream overhead energized the system on Thursday, April 14, numerous tornado, hail, and wind reports were associated with this system.”

“The weekend’s severe thunderstorm outbreak began on Thursday, April 14, lasting through Saturday, April 16. It brought high winds, large hail and tornadoes,” continued Dr. Doggett. “Thousands of trees were toppled or snapped, and downed power lines cut electricity to tens of thousands of households. Roofs were ripped from homes and, in the most severe cases, homes and businesses were flattened.”

According to preliminary data issued by the National Weather Service’s (NWS) Storm Prediction Center (SPC), there were more than 240 reports of tornadoes over the course of the three days. On Thursday, an EF-3 tornado (wind speeds of 136 to 165 miles per hour) destroyed two schools in the small town of Tushka, Oklahoma, 125 miles south of Tulsa. Streets on which virtually every home was destroyed mark the twister’s path. Straight-line winds damaged barns and outbuildings in Wagoner, Oklahoma. At times during the course of the day, more than 40 counties in Arkansas and Oklahoma were under a tornado watch. In Texas, golf ball-size hail was reported in Cooke, Grayson, Denton, Fannin and Dallas counties.

According to AIR, on Friday, several homes were destroyed and several damaged by a tornado in the town of Sumter, Alabama. At least 50 homes were reported damaged and 10 destroyed by a tornado in Greensboro, and several mobile homes at a dealership in Hale, Alabama, were turned over. By evening, 30,000 households were reported without power in the state, 12,000 of them in Tuscaloosa.

By Saturday, the severe weather was wreaking havoc in the Carolinas and southern Virginia. More than 250,000 households in North and South Carolina were left without power as strong winds downed power lines. In Moore County, North Carolina, where a tornado that would become an EF-3 first touched down, homes were blown off their foundation in one neighborhood. Nearby, the tornado blew the second story off several two story homes and the top floors off two apartment buildings. As the storm in Moore County continued northeast, gathering strength, it crossed into an industrial complex, destroying at least three large warehouses and several steel retail buildings. A report from the NWS’s preliminary damage survey of the EF-3 storm in this area indicates that wind speeds likely exceeded 160 miles per hour.

Dr. Doggett commented, “Though it had weakened en route to Raleigh, the tornado regained strength near the large city (population 400,000), achieving EF-2 strength and winds of 110 mph. It damaged nearly all homes in a Raleigh mobile home park; two mobile homes were tossed up to 50 feet from their foundation. Several two-story homes in a nearby neighborhood experienced heavy roof damage, and in downtown Raleigh, several major buildings were damaged.”

 

Golf ball sized hail was reported near Burlington, North Carolina, in the central part of the state. Also in central North Carolina, 82 homes were destroyed in Bladen County, which was particularly hard hit. On average, North Carolina normally gets about 19 tornadoes a year, according to the National Climatic Data Center. There are 97 preliminary reports of tornadoes in the state from this latest outbreak.

In Virginia, where damage was also significant, five tornadoes—including EF-2 tornadoes in Halifax and Gloucester counties and EF-1 tornadoes in Dinwiddie and Augusta counties, and an EF-0 in Rockbridge County—downed trees, disrupted power lines and caused minor to moderate damage to homes, prompting the governor to declare a state of emergency.

The effects of the tornados in the southeast were felt as far away as New Jersey, Pennsylvania, New York and Connecticut, where high winds and isolated flash flooding occurred in certain locations on Saturday night.

“On Friday, the storm moved eastward with widespread reports of tornados from Illinois to Mississippi and Alabama, as well as some isolated reports of hail in excess of 4″ in diameter,” continued Dr. Doggett. “As the low pressure system was finally steered to the east coast on Saturday, the warm front strengthened on the leading edge of the low pressure, which enhanced the thunderstorm activity. This enhancement occurred as the storm moved into the Appalachian Mountains, and it resulted in severe weather from South Carolina to Virginia. The long track lengths of the North Carolina tornadoes were due to their occurrence along the warm frontal boundary, which allowed these storm cells to maintain their inflow of warm, humid air for a longer duration than storms along the cold front.”

“The weekend’s storm system, while potent and producing widespread storm activity, is typical for this time of year, when unstable surface air masses and strong jet stream activity are present aloft. However, the activity in the mid-Atlantic region over the weekend was enhanced due to a more favorable orientation of the jet stream in that location, which increased the wind shear and vertical lift occurring in the system at that time. Increased wind shear and vertical lift are important ingredients for strong rotating supercell thunderstorms, and they helped to maintain last week’s severe thunderstorm outbreak all the way to the east coast.”

Modeling the losses from actual severe thunderstorm events in real time is an extremely challenging task. The hundreds of “microevents” (individual tornadoes, hailstorms and straight-line windstorms) that comprise the outbreak are typically of short duration and are, more often than not, out of the range of weather stations or anemometers. When no measured wind speeds are available, scientists must estimate wind speeds from observed damage.

AIR is continuing to monitor reports as they come in. Additional information may be made as warranted.

Source : AIR Worldwide Press Release

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Willis Group Holdings announced that David Margrett has been appointed CEO, Willis International. A long-time insurance industry leader and a senior executive at Willis for the last seven years, Margrett will work alongside Sarah Turvill, Chairman of Willis International, to focus on driving the division’s growth in the coming years.

Willis International, the retail brokerage division of Willis that focuses on business opportunities outside North America, Great Britain and Ireland, is included in the Group’s International reporting segment which continues to expand its geographic reach and delivered an impressive six percent organic revenue growth in 2010.

With growth comes both opportunity and complexity and, to help meet these challenges, Margrett will be bringing his global background to his new role. In partnership with Turvill, Margrett will concentrate on the day-to-day running of the International business and work with her on the strategic development of Willis’ growth initiatives around the world.

Since joining Willis in 2004, Margrett has held a number of senior positions, including Chairman and CEO of Global Specialties and of Willis Limited, Chairman of Faber &amf; Dumas (the Group’s International third party wholesale business) and most recently, President and COO of Willis Global. Prior to joining Willis, he was Chief Executive of insurance broker Heath Lambert which had operations in 80 countries.

Willis Group Chairman and CEO, Joe Plumeri said, “Sarah Turvill’s leadership of our International business is a continuing story of dramatic growth. As we turn a new chapter in that story, David Margrett joins Sarah to maintain and magnify that momentum moving forward. We’re excited about the expanded capabilities for clients and the business possibilities that will arise when David brings his Global Specialties insight and expertise to our International network.”

Willis Group Holdings plc is a leading global insurance broker. Through its subsidiaries, Willis develops and delivers professional insurance, reinsurance, risk management, financial and human resource consulting and actuarial services to corporations, public entities and institutions around the world. Willis has more than 400 offices in nearly 120 countries, with a global team of approximately 17,000 employees serving clients in virtually every part of the world.

Source : Willis Press Release

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AA Insurance has welcomed the progress being made by the Department for Transport in putting the new Continuous Insurance Enforcement (CIE) legislation into effect.

The new regulations make it an offence to keep a vehicle that is uninsured, rather than just to drive when uninsured, unless it is subject to a Statutory Off Road Notification (SORN).

The DVLA and MID (Motor Insurance Database) are already exchanging information to build up a list of vehicles that have neither insurance or a SORN and the legislation will allow the DVLA to take action against car owners who ignore written warnings to get their vehicle insured.

However, according a an AA/Populs study of nearly 13,000 AA members, an extraordinary six out of 10 (59%) had not heard about the new law and of the balance who were aware of it, 38% said they ‘don’t know what it means’.

Simon Douglas, director of AA Insurance, says: “This tough action is to be welcomed but it is vital that the Government undertakes a campaign to increase awareness.

“There are estimated to be about 1.4 million cars: about 1 out of every 25, being driven on Britain’s roads without insurance.  This is a shocking indictment and one of the worst records in Europe.  Any step that prevents uninsured drivers from getting behind the wheel in the first place must be worthwhile.

“Driving without insurance is not a victimless crime and honest drivers each pay on average about £30 of their car insurance premium as a contribution towards the cost of the damage and injury such drivers cause.”

Every year, uninsured and untraceable drivers kill 160 people and injure 23,000, as well as causing millions of pounds worth of damage to other vehicles and property.

Adds Mr Douglas: “The police already do a great job using automatic number plate equipment technology to stop vehicles that are being driven without insurance.  They convict about 242,000 uninsured drivers every year and last year, confiscated about 180,000 cars, most of which were crushed.”

Mr Douglas also called for harsher penalties for those caught driving without cover.  “The maximum fine available to the courts is £5,000, yet the average meted out is only £200, considerably less than the cost of insuring a vehicle in the first place.  Such small fines are ludicrous if you compare them with the £1,000 fine for not having a television license, for example.

“Most uninsured drivers are young men, often with a string of previous driving offences and disqualifications behind them and would thus be uninsurable****.  But I believe the penalty should at least reflect the premium that would typically be paid for a person of that age: they should not be able to get away with a paltry fine and go on to offend again.”

Source : The AA Press Release

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Over a quarter of motorists (9 million drivers) are potentially missing out on huge savings on their car insurance by simply automatically renewing their policies. New research from Gocompare.com reveals that 27 per cent of drivers allow their policies to auto-renew – many in the mistaken belief that they will be rewarded for their loyalty.

Thirty-nine per cent of drivers have been with their current car insurer for three years or longer, with five per cent sticking with the same company for ten years or more.  Only 45 per cent bother to check their renewal against what they paid for their insurance the previous year, while less than a quarter (24 per cent) take the time to read their renewal documents to check the premium and any policy amendments to see if the policy still provides all the cover they need.  But, with car insurance premiums at record highs, blind loyalty could be extremely costly.

John Miles Gocompare.com’s business development director explained, “The average car insurance premium has risen by almost £650 to £1,332 in the last three years. This is a whopping 94 per cent increase and this trend is likely to continue for the foreseeable future as insurers get to grips with rising claims costs and the recent European Court of Justice ruling prohibiting insurers from calculating premiums based on gender from the end of 2012.

“Insurers rely on apathy to retain customers.  Very few renewal notices show what you paid for your insurance last year, because your new premium may have increased significantly. Also, insurers make use of the annual renewal to review the cover they offer, typically increasing excesses or altering policy wordings.  So it’s essential that you check not only the price, but the level of cover to ensure your policy continues to give you the protection you need.”

Loyalty (29 per cent) was the main reason why customers automatically renewed their polices, with over a quarter (26 per cent) believing that as their current insurer was the cheapest last year they would also be good value again this year.  Other reasons for sticking with the same provider included lack of time (20 per cent), too much hassle (16 per cent), while 13 per cent stayed with the same provider because they found car insurance too confusing and didn’t have the confidence to switch.  Worryingly, 16 per cent felt compelled to renew with their existing insurance provider, while six per cent were worried they’d lose their no-claims-bonus if they switched.

Nearly half of those surveyed (46 per cent) think that insurers could make it clearer how much their renewal premium has increased compared with what they paid the previous year.  One in five believes that companies use underhand tactics to get customers to renew with them.

John concludes, “Just because your current insurer offered the best deal last year, you shouldn’t automatically assume that they will when your policy comes up for renewal.  Our advice is simple, look at your renewal notice as soon as it arrives and compare the price and cover against last year’s documents.  Consider any changes you might need to make to the cover and take a look at similar policies on a comparison site to see if you can make any savings.

“Finally, if you decide to switch, don’t forget to notify your current provider.  Most policies automatically renew, unless you tell the insurer otherwise within the 14 day cooling off period.  Miss the cut off date and you could face hefty cancellation charges.”

Source : Gocompare.com Press Release

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Gold continues to be the most favoured asset class in Hong Kong, Singapore and United Arab Emirates (UAE) according to the latest Friends Provident International (FPI) Investor Attitudes report. In addition to gold, equities and currency markets remain the favoured asset classes in Hong Kong. While Singapore and UAE retain a strong interest in cash there has been a steep fall in its popularity among Hong Kong investors.

Investor confidence continues to rise in UAE, with its index score more than doubling to 13 points since the report was launched in June last year. Singapore leads the way as the most stable and positive region with an Index score of 20, results having maintained this level of positivity since October 2010. The Index also shows a slight increase in the level of pessimism among Hong Kong investors towards the markets, with the Index score for Hong Kong dropping by one point to 18 in this wave.

Rocco Sepe, managing director international at Friends Life, said:

“The Friends Provident International Investor Attitudes report gives an insight into people’s views on asset classes and the investment market at a particular point in time. It’s interesting to see how people’s moods reflect what’s happening in the world’s stock markets and how the confidence of investors is affected by the constant changes.

“The continued success of the report shows that people’s interest in investing is continuing despite global economic concerns. I recommend that people seek expert professional advice to enable them to achieve their investment goals.”

Hong Kong investors feel that now is a good time to invest in the equities market; the fact that they are also choosing real assets such as gold, could indicate an underlying concern about inflation. Compared to investors in Singapore and the UAE, Hong Kong investors are still the least likely to hold cash, with significantly more respondents believing that now is a bad time to hold cash than in January 2011.

Medium term remains the prevailing strategy for Hong Kong investors, although there is rising interest in short term strategies (from 17% in January 2011 to 21%).

UAE respondents, although still less confident than Hong Kong and Singapore, view the market as steadily improving and think the improvement will continue over the next six months. In Hong Kong there is increasing pessimism towards market performance over the next six months and though medium term is the preferred option, there has been a rise in the number of investors looking to make short term investments. In Singapore, a robust Straits Times is giving investors confidence, accounting for signs of a gradual shift from short term, low risk, to long term, high risk investments.

One in five UAE respondents said they were not concerned about the effect of inflation on their investments and, perhaps reflecting an absence of professional advice, over 20% said they would save more in cash to mitigate the effects. In Singapore and Hong Kong, investors were more likely to invest in the stock market to mitigate against inflation than in UAE.

In Hong Kong, over 60% of respondents would increase their investment spending to weather against inflation, with one in five stating they would increase investments by more than 20%.

Source : Friends Provident Investors Press Release

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