Home Authors Posts by Sofia Ashmore

Sofia Ashmore

1466 POSTS 0 COMMENTS

Sheila’s Wheels : Comment on the gender ruling

Legal

Mar 3, 2011

0 0

The ruling of the European Court of Justice will affect millions of women across the EU from 21 December 2012 causing premiums to rise artificially in a way that no longer truly reflects women’s risk as drivers or the cost of their claims.

Sheilas’ Wheels has always believed that calculating prices based on the relative risks and claims costs of men and women is accepted by UK consumers and appropriate.

When the ruling becomes law in the UK, Sheilas’ Wheels will comply with it but has no intention of changing its marketing or diluting its appeal to women. The company believes that car insurance has historically been designed ‘by men, for men’ and Sheilas’ Wheels benefits, designed with women in mind, correct some of the outdated practices that still exist today. That will continue.

Adrian Webb, Head of Communications at Sheilas’ Wheels, said:
“Sheilas’ Wheels has always insured men but most males simply aren’t attracted to our brand and we don’t see this changing. We brought car insurance up to date by including benefits designed with women in mind that were absent in the market. Our handbag cover recognises that even a handbag, let alone its contents, is worth more than most policies’ personal possessions limits.

“Despite this ruling, we will continue to market to women and to celebrate our pink brand because it does not prevent female-focused marketing. Over the course of the transition, we will make the changes necessary to comply but the huge proportion of women already with Sheilas’ Wheels will help us to maintain our highly competitive position.

“We aim to be the natural home for female motorists in the coming years as we have been to date.”

Source : Sheila’s Wheels Press Release

RTA Portal Launches Behaviour Committee Pilot

Uncategorized

Mar 2, 2011

0 2

RTA Portal today launches a Behaviour Committee pilot to guide users and help mediate in circumstances involving inappropriate use of the portal, which is intended to reflect the Protocol for low value claims.

Running until 31 May 2011, the pilot has been instigated for cases where compensators and claimant representatives are not able to resolve the matter together, in which case the matter will be escalated to the Behaviour

Committee. Subject to successful completion of the pilot and user feedback, the initiative will become a permanent service.

From time to time, issues may arise between compensators and claimant representatives (such as inappropriate use of Article 75; claims submitted without retainers; inappropriate use of Interim Settlement Packs and extensions of time without prior agreement). Where a satisfactory outcome has not been achieved, when a user has identified an issue and addressed this in writing with the organisation concerned, the objective of the Behaviour Committee is to provide general guidance on appropriate behaviour expected by users of the Portal to assist in a resolution. Guidance provided by the Committee is not intended to be binding.

The Committee, made up of a claimant and compensator representative, will meet on a monthly basis and provide a non-biased approach and guidance to any behavioural issues that have been submitted using the Behaviour Report Form now available via the members’ area of the RTA Portal Co information site.

Behavioural issues will be considered in the context of the Civil Procedure Rules and Practice Directions, including the Pre-Action Protocol for Low Value Personal Injury Claims, the objectives of that Protocol and the spirit in which it was introduced. The Committee will call on stakeholder advice if required.

Source : RTA Press Release

Higher education, lower blood pressure

Uncategorized

Mar 2, 2011

0 0

The more advanced degrees a person has, the lower their blood pressure, a study published online Sunday found.

An analysis of some 4,000 patient records from the 30-year Framingham Offspring Study found that, controlling only for age, women with 17 years or more of education — a master’s degree or doctorate — had systolic blood pressure readings 3.26 millimeters of mercury lower than female high school drop-outs.

Men who went to graduate school had systolic blood pressure readings that were 2.26 millimeters of mercury (mmHg) lower than their counterparts who did not finish high school, the study, published online in the open access journal BMC Public Health, says. The same inverse relationship between education and blood pressure was also seen, although to a lesser degree, in men and women who got associate’s or bachelor’s degrees at university but did not continue on to graduate school.

They showed greater blood pressure benefits than high school drop-outs but lesser benefits than holders of master’s degrees or doctorates, the study found. Even after controlling for influences such as smoking, drinking, obesity and blood pressure medication, the benefits persisted, although at a lower level.

The study could help explain the widely documented association in developed countries between education and lower risk of heart disease, said lead author Eric Loucks, an assistant professor of public health at Brown University in Rhode Island.

Blood pressure is “one of the biological underpinnings of heart disease,” said Loucks, urging policy-makers who want to improve public health to think about improving access to education.

The study focused on systolic blood pressure over diastolic blood pressure because “systolic hypertension is substantially more common than diastolic hypertension, and systolic blood pressure contributes more to the global disease burden attributable to hypertension than diastolic blood pressure.”

Washington, Feb 27, 2011 (AFP)

Surge in births after deadly New Zealand quake

Uncategorized

Mar 2, 2011

0 0

As many as 240 people likely died in New Zealand’s devastating earthquake, but health services have also been stretched coping with a different problem — a surge in new life.

Canterbury district health director David Meates said there had been a “real pressure” to deal with births after last week’s 6.3-magnitude tremor, and that premature babies packed out Christchurch Hospital’s neonatal unit.

“Earthquakes do tend to hurry things along for those intending to deliver,” said Meates of the surge in births, which saw some 76 maternity patients hospitalised in the days after the February 22 quake.

So many births followed the deadly jolt that some babies had to be transferred to North Island hospitals while Christchurch Hospital put out a call for extra midwives from across the country.

An even greater spike was seen after last September’s 7.0-level tremor, when 21 babies were born at the hospital in the following 24 hours, a record number for a Saturday.

“It’s just one of those things. You could blame it on the full moon or the high tide. I think anecdotally people go into survival mode,” Canterbury midwifery director Samantha Burke told local media.

Christchurch woman Jo Blackman visited her midwife just hours before the earthquake and was told not to expect her baby for a few more days. When the tremor struck, all she could think about was rushing through her shuddering house to reach her two-year-old son, Josh.

“I didn’t even think about the pregnancy — I just wanted to get to Josh,” Blackman, 34, told Fairfax newspapers. “Then when my husband got back and we were looking at a few cracks in the house I suddenly felt my contractions.”

Baby Alyssa was born at 7:30 pm as frantic searches continued for survivors in central Christchurch and as hundreds of injured people were tended on surrounding floors.

“It was just good to have a healthy baby girl born into the world when so many others were experiencing suffering and loss,” she said.

Among those who went into labour during the quake was the sister of New Zealand soccer captain Ryan Nelsen.

Nelsen is making his way home to Christchurch, hoping to help in the recovery after gaining permission from his Blackburn Rovers.

Christchurch, New Zealand, March 1, 2011 (AFP)

Young women drivers to pay more for insurance following EU ruling

Uncategorized

Mar 1, 2011

0 0

The European Court of Justice ruling will bring to an end the use of gender in insurance pricing. This will have a significant impact on customers and the insurance industry and is almost certain to mean that young female drivers will see an increase in their motor insurance premiums from December 2012.

Insurers will no longer be able to use the exemption for insurance to base female driver premiums on statistics which show that they have lower accident rates and costs. The average 18 year old male claim cost is £4,400 compared to the average 18 year old female claims cost of £2,700.

Insurance companies will have to re-evaluate their pricing models for implementation by December 2012. Younger female drivers renewing their motor insurance after this date are likely to see a significant change.

Steve Foulsham, BIBA Technical Services Manager, said:

“Unisex rates will have to apply for motor insurance with the likelihood of an increase in premiums for females which could typically be up to 25% but in some cases more than 50%. However it’s unlikely that premiums for male drivers will reduce much as their risk is still considerable.”

Graeme Trudgill, BIBA Head of Corporate Affairs, said: “The ruling will have a significant effect on the insurance industry which has used the system of risk based pricing to award discounts to lower risk drivers like young females who are statistically safer drivers. Male drivers under 21 are twice as likely to have an accident than a female under 21. The industry will have to change its model and effectively females will now pay a cross subsidy for males on their insurance premiums.”

Source : BIBA Press Release

EU court bans gender in calculating insurance price

Legal

Mar 1, 2011

0 0

Europe’s top court banned insurance companies from basing prices on gender, ruling that making men pay more than women for life and car accident policies is discriminatory.

The European Court of Justice ruled that insurance companies must stop charging different rates for women and men from December 21, 2012, a decision which the industry said would drive up costs for consumers.

“Taking the gender of the insured individual into account as a risk factor in insurance contracts constitutes discrimination,” the court said.

The insurance sector had been given an exemption from an EU gender equality directive that took effect in 2007, allowing the industry to use statistics such as car accidents and life expectancy between men and women to set prices.

Women in general pay less for car and life insurance because they are believed to be involved in fewer accidents and live longer than men.

The Belgian consumer rights group Test-Achats, which brought the case to court, hailed the decision as a “historic ruling” and a “victory for consumers, men and women, across the European Union.”

EU justice commissioner Viviane Reding welcomed the ruling as “an important step towards putting the fundamental right of gender equality into practice,” and said she would convene a meeting with insurers in the coming months to discuss its implications.

“A modern insurance company should not distinguish between women and men,” she said.

“All customers should be treated equally. This is not only a matter of respect for fundamental righs. It is also a matter of good business practice,” said Reding, who has championed gender equality in boardrooms.

But Sajjad Karim, a British Conservative member of the European Parliament, decried the ruling as “utter madness” and a “setback for common sense.”

“It is a statistical reality that young men have more accidents than women so it should be reflected in their (insurance) premiums,” Karim said.

“This is a victory for boy-racers and a major blow for both democracy and careful women drivers,” he said.

The European insurance and reinsurance federation, the CEA, said the ruling was “bad news for insurance customers.” The Association of British Insurers warned it could lead to an increase in premiums paid by women and a drop in retirement annuities paid to men.

In Britain, the premium paid by women under the age of 25 for auto insurance could rise by an average 25 percent, the association said.

The life insurance paid by women could rise as much as 20 percent while men could pay 10 percent less, the group said. Men, who often receive higher pension annuities because males typically have fewer years in retirement, could see their annuity rates drop by eight percent while they would rise six percent for women approaching retirement age.

Open Europe, a think tank, said the ruling could force the British insurance industry to raise an extra 936 million pounds (1.1 billion euros, $1.6 billion) in capital to cover themselves against the new uncertainties created in the market.

Luxembourg, March 1, 2011 (AFP)

Gender discrimination in motor insurance

Uncategorized

Feb 26, 2011

0 0

This is potentially a serious issue for the motor insurance industry. A decision from the European Court of Justice is expected on 1 March on whether the use of gender to assess risk is unlawful. If the Court rules that this is so, it’s not known whether the industry will be expected to conform with immediate effect or whether a date at some time in the future will be set by which insurers should comply.

Simon Douglas, director of AA Insurance, says: “The use of gender in calculating insurance risk has been a thorn in the EC’s side for many years and indeed, the current UK use of gender in this way is against EC law although the UK has enjoyed derogation based on strong evidence of the UK’s risk-based approach to insurance. However, my fear is that the European Court of Justice will no longer tolerate such exceptions and the UK, and some other EC countries that use gender to calculate risk, will have to toe the European line.

“This will be particularly bad news for young women who are proven to present a much lower risk to insurers and at present, pay premiums that are up to 50% cheaper than their male peers. I expect premiums to increase substantially for them, while they will probably fall a little for young men.

“At the opposite end of the age range, there is again a gender difference but it is less pronounced.

“Insurers may look to use other risk factors as a proxy for gender – for instance occupation or vehicle type, but it isn’t clear to what extent this will be permitted if it constitutes a form of indirect discrimination.

If insurers are not allowed to use such an important risk factor as gender, there is an increased risk that premiums won’t cover claims costs and they will need to increase prices in aggregate to compensate for the additional risk. This is bad news for motorists generally although of course there will be winners and losers.

Mr Douglas summarises: “My view is that it will have a big impact for everyone. Insurers will need more margin to cover the risk of losses if gender can’t be taken into account.”

However, there is some correction already happening with premiums for young women rising at a faster rate than young men (aged 17-22) although there remains a considerable gap between the premiums paid by the sexes.

According to the AA’s benchmark British Insurance Premium Index, premiums in the Shoparound index over the last quarter of 2010 increased by 6.4% (33.2% over the year) to an average of £842.69. For young people, the increase was 15.1% over the quarter (58.3% over the year) to £2,251.

However the male-female differences are stark: although premiums for young women rose on average by 18.23% (70.8% over the year) to an average of £1,682, this is nevertheless more than £1,000 less than the £2,750 typically paid by men in the same age group, who saw premiums increase by 11.9% over the quarter (49.8% over the year).

Between ages 30 and 69, premiums for both men and women increased by between 20% and 25% over the year, with premium differences of just a few pounds between the sexes so most people in this age group (the majority of drivers) will see little significant difference.

Those considering buying a car for the first time now might be advised to take potential differences in insurance into account: for example, young women might well take advantage of lower premiums while they last, whereas men are more likely to benefit by delaying their decision until after any announcement is made.

Following table is an extract from the AA’s British Insurance Premium Index broken down by age and sex.

Annual Shoparound motor movements by age and gender
Sex	Age	Average Premium	Shoparound
		Jan-11	Jan-10	Apr-10	Jul-10	Oct-10	Jan-11	Annual
Male	17 – 22	£2,750	9.60%	2.80%	14.70%	13.50%	11.93%	49.80%
	23 – 29	£1,341	15.40%	-1.40%	11.20%	10.70%	12.57%	36.63%
	30 – 39	£687	8.80%	0.00%	11.10%	7.30%	5.66%	25.96%
	40 – 49	£621	10.30%	-2.50%	7.90%	10.30%	6.90%	24.05%
	50 – 59	£504	16.00%	-6.10%	8.40%	8.10%	6.57%	17.27%
	60 – 69	£446	9.00%	-0.80%	7.80%	11.80%	6.02%	26.75%
	70 +	£564	9.40%	-0.10%	11.40%	11.70%	8.69%	35.12%

Female	17 – 22	£1,682	9.90%	7.00%	16.90%	15.50%	18.23%	70.81%
	23 – 29	£868	12.20%	3.10%	11.40%	10.50%	9.49%	38.96%
	30 – 39	£544	10.90%	-0.70%	7.30%	8.70%	6.31%	23.13%
	40 – 49	£532	13.80%	-2.20%	6.90%	12.20%	6.53%	24.97%
	50 – 59	£462	13.90%	-4.00%	8.10%	11.40%	6.53%	23.15%
	60 – 69	£376	9.20%	-1.60%	6.90%	8.20%	6.04%	20.69%
	70 +	£401	4.20%	1.40%	9.90%	2.30%	3.59%	18.10%

All	17 – 22	£2,251	9.70%	4.20%	15.40%	14.40%	15.10%	58.33%
	23 – 29	£1,098	14.10%	0.40%	11.30%	10.60%	11.01%	37.19%
	30 – 39	£617	9.70%	-0.30%	9.40%	7.90%	5.99%	24.73%
	40 – 49	£577	11.90%	-2.40%	7.50%	11.10%	6.72%	24.40%
	50 – 59	£481	15.00%	-5.10%	8.20%	9.80%	6.55%	20.13%
	60 – 69	£413	9.10%	-1.10%	7.40%	10.20%	6.03%	24.11%
	70 +	£475	7.00%	0.60%	10.70%	7.10%	6.02%	26.46%

Source : The AA Press Release

Profits down for Brit Insurance

Uncategorized

Feb 25, 2011

0 1

Brit Insurance, which has been sold to US private equity firms Apollo and CVC Capital, has been hit by earthquake claims and weaker investment returns.

The Lloyds of London insurer, which sponsors the England cricket team, reported a 30% drop in profits before tax to £119.2m last year. It paid out £57.8m for claims relating to the earthquakes in Chile (£29.9m) and the New Zealand in September (£27.9m). The group, whose sale to the US private equity groups is set to be completed by the end of March, said the results reflected lower premium volumes, a higher burden of major claims and lower investment returns, partially offset by a lower tax charge.

Premiums edged up 1% compared with a 4.8% rise in 2009. The UK saw the highest rate increases at 3%, helped by increases of more than 10% in motor insurance.

Another earthquake struck New Zealand on Monday, with the damage described as far worse than the previous one on 4 September. Oriel Securities analyst Thomas Dorner said Brit, Catlin and Lancashire had the least exposure to the first earthquake while rivals Hardy, Amlin and Chaucer had the greatest.

“Based on the experience of the previous earthquake – ie an industry loss of around $3-5bn – the impact of this week’s earthquake on the pricing is likely to be limited to the region,” he added.

Source : The Guardian

Appointment : Ramani Ayer joined XL Group’s board of Directors

Social

Feb 25, 2011

0 0

Mr. Ayer is the former Chairman and Chief Executive Officer of The Hartford Financial Services Group. He retired in October 2009 after spending more than 12 years in those positions.

In that time he built The Hartford into a recognized leader in Property & Casualty Insurance and Life and Investment Products. The Hartford’s Property and Casualty franchise is a market leader with $10 billion of premiums across Personal, Commercial and Specialty lines of insurance.

During his 36-year career with The Hartford, Mr. Ayer held progressively senior roles including Staff Assistant to The Hartford’s Chairman and CEO from 1979 to 1980, Executive Vice President of Hartford Reinsurance Management Co. from 1980 to 1984, President of Hartford Specialty Company from 1984 to 1990, and President of Hartford Property Casualty Company from 1990 to 1997.

Further to his contributions at The Hartford, Mr. Ayer is the former Chairman of the American Insurance Association, the Property & Casualty CEO Roundtable, and the Insurance Services Office. He is currently a member and past Chairman of the Hartford Hospital, as well as a board member of the Maharishi University Management and the David Lynch Foundation.

Mr. Ayer has a PhD and Master of Science degree in Chemical Engineering from Drexel University and a Bachelor of Technology degree in Chemical Engineering from Indian Institute of Technology.

Commenting on the appointment, XL’s Chairman Robert Glauber said: “We welcome Ramani to the XL Board.

His vast knowledge and industry experience complement the existing expertise of the Board and will benefit the Company as XL continues to build on its solid foundation, global platform, and depth of underwriting talent.”

Source : XL Group Press Release

Big unit sales, listing bring AIG back to profit

Uncategorized

Feb 25, 2011

0 0

The sale of key units helped push US insurance giant AIG — a firm at the epicenter of the US financial crisis — back to profit in 2010, but it still lost money on normal operations, the company said Thursday.

AIG, which received a $180 billion injection in 2008 to cover investments and liabilities that vaporized in the burst of the US real estate bubble, said it had a net income of $7.8 billion last year, compared to a $11 billion loss the year before.

The company got a boost from the $16.2 billion sale of its American Life Insurance Company, and earned $20.5 billion in the sale of shares in its AIA Group subsidiary.

That helped to offset large charges for deferred taxes and partial repayments for its bailout by the Federal Reserve, the US central bank. Charges and one-off income aside, the company reported an after-tax operating loss of $898 million dollars, compared to a $781 million dollar loss in 2009.

“We completed several key restructuring milestones in the quarter and we remain focused on long-term growth and building value at our ongoing insurance operations and other businesses,” said said chief executive Robert Benmosche in a statement.

“In 2010, we said we would realign AIG to grow our businesses and to ultimately repay the U.S. taxpayer. We remain extremely grateful to the taxpayers and have made significant progress since January 2010 towards independence from this support,” he said.

Once the world’s largest insurer, AIG received an injection of more than 180 billion dollars from the government after it veered on collapse in 2008 and threatened to take down a number of large banks with it.

New York, Feb 24, 2011 (AFP)

British save with no specific goal

Uncategorized

Feb 25, 2011

0 0

Confused.com has revealed that as a nation Brits are saving for a rainy day rather than towards any particular goal according to new research conducted by the comparison site.

Confused.com found that of the 80% of Brit’s who save each month, nearly a quarter (24%) don’t have a specific focus, whilst one fifth (22%) are saving for the long term and retirement and another 20% are saving for a deposit on a home. One percent admitted they’re saving to leave their partner.

Demographically, there are some other interesting findings. More men (8%) are saving for a new car than women (6%), with more people saving for a car in Wales (14%) than any other region. House deposits are the top savings goals in London (26%) and the South West (29%), and for 18-24 year olds in the UK.

The North East has more savings being earmarked for weddings than any other region (8%) and in Northern Ireland the focus is on the long term, with one in three (33%) saving for retirement, with 42% of 45-54 year olds in the UK saying retirement is their main goal.

By age, those aged 35-44 are saving to leave their partner (2%) more than any other generation and by region, more people in London are saving to leave their partner (2%) and for plastic surgery (2%) than any other region.

Chris Griffiths, head of savings at Confused.com, said: “When you’re struggling to get into a savings habit having a clear goal can make things easier. It’s a good idea to earmark some of your savings for short to medium term goals and some for the long term. Rewarding yourself with a small treat when you reach a certain goal can make it feel much more worthwhile, and some new clothes, a weekend away or a new gadget will feel much valued when you’ve saved hard to get them instead of putting them on the plastic.”

Source : Confused.com Press Release

Lower profits, shares issue for Dutch insurer Aegon

Uncategorized

Feb 24, 2011

0 6

Dutch insurer Aegon announced a 19 percent drop in fourth quarter net profit Thursday, and said it would issue shares worth about 900 million euros ($1.24 billion) to pay back a state loan.

The company said it made a net profit of 318 million euros in the fourth quarter, lower than the 363 million euros predicted by analysts polled by Dow Jones Newswires.
This was partly the result of impairment charges and other charges for the consolidation of US-based operations.

Aegon, which received three billion euros from the Dutch government amid the global financial crisis in October 2008, hopes to repay the outstanding 2.25 billion euros “by the end of June 2011”.

Some of the money would also come from selling a US life insurance subsidiary, Transamerica Reinsurance, according to Aegon spokesman Dick Schiethart.

The company hopes to resume dividend payments next year. Aegon’s shares lost more than four percent on the Amsterdam stock exchange in morning trading, to 5.19 euros around 1030 GMT.

The company said it sold new life insurance policies worth 558 million euros in the fourth quarter of 2010, up from 557 million a year earlier. Its net profit for the year as a whole, 1.76 billion euros, was nine times higher than that of 2009.

Aegon has about 28,000 employees and more than 40 million clients, mainly in the Netherlands, the United States and Britain. It holds the pensions of a quarter of Dutch citizens.

The Hague, Feb 24, 2011 (AFP)

Insurer Allianz sees ops profit of 8 bln euros this year

Uncategorized

Feb 24, 2011

0 1

German insurance giant Allianz said Thursday that it foresees an operating profit of eight billion euros ($11 billion) this year, give or take half a billion. Allianz chief executive Michael Diekmann told a press conference in Munich, southern Germany, that uncertainty caused by new capital requirements for European insurers made it hard to give a more precise outlook.

“For the 2011 exercise, we foresee an operationg profit of eight billion euros, give or take 500 million owing to uncertainties,” Diekmann said. Shares in the biggest European insurer were then hammered in midday trading on the Frankfurt stock exchange.

The Allianz boss underscored optimism for the full-year but warned that a new set of EU capital requirements known as Solvency II needed to be clarified because they might entail risks for some of Allianz’s activities. “Owing to uncertainties over Solvency II we cannot make any large acquisitions,” Diekmann noted.

The new regime is to take effect in 2013, but some details must still be finalised and an insurer might have to raise its capital significantly, which would undermine earnings and make some activities unattractive, he explained. Allianz finance director Paul Achleitner said the uncertainty could also affect Allianz’s investments in financial markets. For 2010, the group reported a 17 percent jump in operating profit to 8.2 billion euros, exceeding its own target and analyst forecasts thanks in part to 500 million euros in exceptional items, including positive effects from foreign exchange rates. Allianz’s net profit leapt by 20.1 percent to 5.05 billion euros. “All our divisions contributed to the result,” Diekmann commented.

Revenues gained 9.3 percent to a record high of 106.5 billion euros, and Allianz directors will propose a dividend of 4.50 euros per share, up from 4.10 euros in 2009. Investors apparently had hoped for more and the group’s share price plunged in midday Frankfurt trading, showing a loss of 3.01 percent to 101.45 euros while the DAX index of German blue-chips was 1.13 percent lower overall.

Frankfurt, Feb 24, 2011 (AFP)

RMS Commentary on the New Zealand Earthquake

Uncategorized

Feb 23, 2011

0 1

Highlights :

– Though a smaller magnitude than the M7.1 Darfield earthquake on September 3, 2010, Christchurch city was significantly closer to the epicentre, and damage is reported to be significantly higher.

– Christchurch city center experienced shaking of MMI intensity VIII (‘severe’ shaking), which is greater than the V reported in the city during the Darfield Earthquake.

– Fatalities from the earthquake currently stand at 65; however, this number may rise as hundreds of people are still trapped. The relatively high death toll compared to the September earthquake is driven by the daytime event when the central business district was at its busiest and the higher intensity of shaking experienced in the city.

– Initial reports indicate the level of damage is severe in Lyttelton and many buildings in Christchurch have sustained significant structural damage.

On Tuesday, February 22, at approximately 12:51 pm local time, a shallow, powerful magnitude 6.3 (moment magnitude) earthquake occurred near the port town of Lyttelton, on the South Island of New Zealand, approximately six miles south-east of Christchurch.

The USGS ShakeMap shows the area close to the epicenter to have experienced ‘severe’ shaking of intensity VIII on the Modified Mercalli Intensity (MMI) scale, where the potential for damage is moderate/heavy for resistant structures and heavy for vulnerable structures. According to the USGS PAGER system, Christchurch (population ~ 364,000) experienced such shaking.

This is greater than the intensity V shaking Christchurch experienced from the Darfield earthquake (7.0 Mw) on September 3, 2010. The epicenter of the Darfield earthquake was approximately 27 miles west-northwest of Monday’s 6.3 Mw epicenter and around 27 miles west of Christchurch.

According to the USGS, the February 21 earthquake occurred as part of the aftershock sequence of the Darfield earthquake (although there is no specific structure linking this event to that of September). Since the September 3 event there have been approximately six aftershocks of Mw5.0 or above in the Christchurch region with the February, 21 earthquake representing the largest aftershock to date. The USGS has reported that the February 21 earthquake was the result of oblique-thrust faulting, and is broadly associated with the regional deformation at the boundary between the Pacific and Australia plates.

A state of emergency was declared in the Canterbury region and will last at least five days. Prime Minister John Key reported the death toll from the earthquake to be 65, though this figure could rise as hundreds are still trapped in damaged buildings. Christchurch Mayor Bob Parker estimates the number trapped to be greater than 100. Two buses were crushed by collapsed buildings, contributing to the high death toll from the event.
There are reports of landslides at Sumner and concern for similar incidents throughout the Banks Peninsula area. Western suburbs, such as Hornsby, appear to have escaped much of the devastation that has affected the central and southern parts of the city.
In New Zealand, all residential property owners who buy fire insurance automatically acquire EQCover, the EQ Commission’s insurance cover. Under the EQC policies, dwellings (buildings) are insured up to a maximum of NZ$100,000 (plus tax), personal effects (contents) up to NZ$20,000 (plus tax), and land cover is provided in addition to these limits.

The role of the private market on the direct insurance side is firstly to extend the coverage to residential above the EQC limits for both buildings and contents, and secondly provide coverage to commercial and industrial properties. It is expected that where dwellings have been severely damaged by the ground shaking, the repair and reconstruction costs will exceed the EQC “first loss” limits of NZ$100,00 for buildings and NZ$20,000 for contents. Almost all industrial and commercial policies are written on an all risks basis and most policies include full value earthquake cover. Private insurers therefore are expected to be play a role in the repair of the predominantly commercial properties affected by the earthquake.

While no statement has been made yet by the NZ Earthquake Commission, all major aftershocks since the Canterbury Earthquake of September 4, 2010 have been classified as separate events by the Earthquake Commission, with separate claims procedures and deadlines.

Source : RMS Press Release

New Flexible Benefits Platform Launches for SMEs

Uncategorized

Feb 23, 2011

0 2

Jelf Employee Benefits has unveiled a new ‘flex’ platform to help small- and medium-sized enterprises (SMEs) improve the way in which they communicate their benefit programmes to employees. Many smaller employers understand the need to offer a choice of benefits in order to recruit and retain staff but these benefits are often poorly communicated and are therefore effectively a wasted investment.

Traditionally ‘flex’ has been the reserve of larger businesses who are able to offer a full suite of benefits (such as a pension, childcare vouchers, a bikes to work scheme, private medical insurance, dental schemes etc.) However, smaller organisations are following the corporates’ lead but they do not always have the systems in place to manage a range of options as well as truly engage with employees, meaning uptake is often low.

Julia Turney Head of Benefits Management at Jelf Employee Benefits said “Smaller employers are becoming increasingly aware of the need to provide more than just a salary slip at the end of the month. Our platform is designed to provide an environment where employees know how to find out about their benefits and also to relieve some of burden of managing that range of benefits for the employer too.”

One of the key benefits of the platform is that it can produce a range of management information reports making it quick and easy to determine the level and uptake of their benefits. The system will also help control the ongoing issue of data management, making it simple to update leavers and joiners. The platform will give access to relevant industry news and to documentation with advice on areas such as disciplinary procedures and templates of key importance to smaller employers. Also included within this part of the package is access to an HR legal partner with an allocated amount of free support.”

The platform has three tiers to suit the needs of all clients, from those offering benefits for the first time, through to those with more sophisticated benefit needs. It is also designed to allow transition up through the tiers. It has been developed over a period of 18 months alongside Vebnet, the global service provider of employee benefits solutions. The platform will be offered as a Jelf Employee Benefits solution or can be rebranded for each client.

Source : Jelf Press Release

UK: Aviva’s total reward statements go live

Uncategorized

Feb 23, 2011

0 0

Aviva is making it easier for people to understand the value of benefits provided by their employer.

Total Reward Statements will be offered alongside group personal pensions and give employees an online personal statement of their benefits package including salary, bonus, pension, medical insurance, health screening, life and critical illness insurance, car allowance and holiday.

The launch underlines Aviva’s strength in the workplace savings market. The technology is provided by Staffcare, an award-winning employee benefits software company that licenses its technology to many of the UK’s leading employee benefit consultants and corporate advisers.

Paul Goodwin, head of pensions marketing at Aviva, said: “Aviva research shows that companies’ employees want to view and manage their benefits in one place. Aviva’s Total Reward Statement is ideal for employees because it enables them to understand and manage their workplace benefits. For example, people are more likely to save into a work pension if they can see how much it is worth and how
much it grows each year.

“It’s also good news for employers because it helps with staff retention and can make it simpler to communicate the benefits offered by the whole staff benefits package. We expect the workplace savings market to grow fast over the next few years, and it’s one in which Aviva will play a leading role.”

Source : Aviva Press Release

Bancassurance : market outlook 2011

Good to know

Feb 22, 2011

0 8

Bancassurance deciders of different financial institutions have exchanged on the model’s current situation and the necessity for the market to better adapt to customers in view of increasing sales.

Fleming Europe’s fourth annual bancassurance forum, held this week in Rome, was the occasion for major players of financial institutions to debate on the current situation of the market and its future perspectives. The bancassurance model is indeed well established in Europe and presents vast possibilities for the rest of the world.

A market that is still growing

According to Jean Orgonasi, Head of Global Partners and Distribution at BNP Parisbas the Japanese market is on the rise, in savings and especially in protection. Taiwan is also seeing its protection market growing as well as South America, where customers have a natural tendency to seek protection.

Stephan Moltzen, Head of Product Management Insurance at Deutsche Bank believes 2011 will be the most successful year since the past four or five years. He expects to reach the same level as before the financial crisis, to “reach the objectives lost in 2007”. According to him the bank insurance model was greatly affected by the crisis, especially the trust of the customers. “customers ask more questions, to the sales persons, the confidence is coming back”.

Glenn Lottering, Senior Director at Oracle, believes that their will be some breakthroughs in terms of technology such as “new applications, like iPad apps or apps for android tablets and some interesting moves where carriers employ FMCG (Fast Moving Consumer Goods) executives that actually drive the market and the development of these apps, really trying to understand what their customer needs are. They are trying to understand where the market is moving in terms of connectivity”.

Understanding and adapting to the client

Distribution is a concern for both insurance companies and banks. Today it has become fundamental to offer products that meet the client’s needs.

Jean Orgonasi adds that packages automatically including insurance are systematically proposed to clients who come to purchase products. There is a need to maximise the moments where clients and distributors actually meet in order to better interact with them. Establishing a Consumer Journey would allow to better understand the client’s needs, and thus better target products that would interest them.

Banks and insurance companies must better team up to better offer these products that have become with time more and more complex.

Stephan Moltzen sais that in order to offer a complete product proposition, key account managers have to be integrated in central units such as product management or marketing.

According to Glenn Lottering, there is a new trend where carriers seek “how they can assist and work with customers. There is a shift towards customer centricity from product centricity where carriers are now trying to not look at how they can design products for the customers, but actually for the first time, staring to listen to the customers” to determine their needs that will then design products.

A private navy to fight piracy?

Feb 21, 2011

0 0

Insurance firms in London plan to defeat Somali piracy by creating a private fleet designed to escort vessels across the Gulf of Aden.

Insurers devised the Convoy Escort Programme (CEP), which could come into action by the summer, in a bid to reduce the costs of insuring vessels and their cargo and crew. Sean Woollerson, a partner in the marine, oil and gas division at insurance broker Jardine Lloyd Thompson (JLT) and a key designer of the plan, has estimated that approximately US$27.5 million would be needed to purchase 18 secondhand vessels.

Insurance underwriters, including Ascot Underwriting, are also working the project on. The shipping industry has already shown its support for the initiative and the Baltic and International Maritime Council (Bimco) has agreed to help facilitate the programme.

The aim is for shipowners to buy the armed escort service, packaged with seven days of war-risk cover from Ascot Underwriting’s Lloyd’s Syndicate 1414. In doing so, the shipowner will not need to pay the normal higher premium required to transit high-risk pirate areas. It has been reported that each insurance-funded vessel will carry eight armed security personnel, four crew and inflatable speedboats.

Woollerson said the programme would allow any vessel looking for protection when transiting the Gulf of Aden to do so through its Lloyd’s of London broker. The UK Royal Navy recently captured a group of suspected pirates operating in the Gulf of Aden. Attacks on vessels in the area have been escalating.

The UN’s International Maritime Organisation (IMO) has also launched a new initiative to combat piracy. Secretary General Efthimios Mitropoulos announced a six-point plan to stop the continuing growth of piracy.

It included increasing political pressure to secure the release of hostages; reviewing guidelines and promoting compliance with best practice; promoting greater levels of support from navies; promoting anti-piracy co-ordination between countries, regions, organisations and industry; assisting states to deter and bring to justice pirates; and providing care for those attacked or hijacked by pirates, and for their families.

Source : Ifw

Prev 1...333435...74 Next

Page 34 of 74

Sofia Ashmore

POPULAR POST

SOCIAL

Popular category