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SCOR is disposing of its US Fixed Annuity business through the sale of its subsidiary Investors Insurance Corporation (IIC) for USD 55 million. SCOR confirmed today that it has reached a definitive agreement with Athene Holding Ltd. concerning its purchase of the entire share capital of IIC.

IIC is a Life insurer operating in the US and specializing in the sale of fixed annuities, principally equity-indexed annuities (EIA). IIC is 100% owned by SCOR Global Life US Re (SCOR Life US), a subsidiary of SCOR Global Life SE. The sale will be preceded by a full recapture of the annuity business of IIC reinsured by SCOR Life US. With this sale, SCOR Global Life will completely exit the annuity business.

The transaction is expected to close in the first half of 2011 following receipt of the applicable regulatory approvals. It is estimated that it will have no impact on the company’s shareholder equity, while freeing up significant regulatory and rating capital.

Denis Kessler, Chairman and CEO of SCOR, commented: “The sale of IIC confirms SCOR’s constant focus on the optimization of its portfolio mix. As expressed in our Strong Momentum plan, SCOR is focused on expanding its core Life reinsurance book, which is centred on biometric risk. The resources freed up by the sale of the annuity business will allow us to further pursue this goal.“”

Source : SCOR Press Release

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XL Group announced that two of its Bermuda-based subsidiaries, XL Insurance and XL Re, have received approval from the New York Insurance Department (the “NYID”) to qualify for reduced collateral status in the state of New York pursuant to requirements set forth by New York insurance regulation.

At the beginning of this year, New York passed amendments to New York insurance regulation allowing the NYID Superintendent of Insurance to establish lower collateral requirements for foreign (re)insurers that, among other criteria, are considered financially strong by credit rating agencies and other industry regulators.

Under the amendment both XLIB and XL Re Ltd can post collateral for 20 percent of loss reserves rather than the 100 percent required of non-eligible foreign (re)insurers.

In its approval letter to XLIB and XL Re Ltd, the NYID cited various reasons for granting approval including the entities’ secure financial strength ratings and strong solvency position.

XL Chief Executive Officer, Mike McGavick, said: “We are extremely pleased with the NYID’s decision and the fact that another US insurance regulator has recognized XL’s financial position.  Once again XL is proud to be among the list of Bermuda companies who have qualified for reduced collateral status in a US state.  Last year, XL Re Ltd was the first Bermuda reinsurer to be granted similar status in Florida by the Florida Office of Insurance Regulation. The elimination of unnecessary collateral requirements on foreign insurers and reinsurers is not only beneficial for the individual companies but for the industry as a whole. We are encouraged by New York’s elimination of these collateral requirements and we remain fully committed to meeting the needs of our clients in New York and around the world.”

Source : XL Group Press Release

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With a continued improvement in claims trends, and a restored investment performance, ship-owners face the prospect of a benign Protection and Indemnity (P&I) renewal at 20th February 2011, according to Aon Risk Solutions, the global risk management business of Aon Corporation.

General Increases, the starting point for renewal negotiations, range between zero and 10 percent, which is in stark contrast to two years ago when owners faced General Increases in the 10 to 29 percent range. In an unprecedented move in recent times, four out of the 13 International Group (IG) Clubs called for a nil general increase, compared to a market average of 3.07% for the 2011 renewal.

Steve Griffiths, director of Aon Risk Solutions’ marine team comments: “The latter part of the last decade were a very trying time for the P&I clubs, with the implications of placing an ever increasing emphasis on investment returns coming home to roost at renewal time. It does seem, though, that the 2011 renewal is the calm after the storm, with improved claims trends helping many clubs to achieve a relatively flat renewal.”

If clubs achieve their targets, approximately US$91 million of additional premium will enter the P&I system on 20 February, 2011. Reflecting improved market conditions, this is significantly down on the previous two renewals, where the market was inflated by an additional US$485 million in 2009 and US$159 million in 2010.

The IG Excess of Loss Reinsurance contract has been renewed with an increase in the attachment point to US$60million from the current level of US$50 million per claim. This has the effect of stretching the pool from the individual club retention of US$8million to US$60 million. Consequently, the upper limit of the reinsurance contract has increased by US$10 million to US$2,060 million.

When taking into account the increase in tonnage insured by the IG, the reinsurance contract saw a modest reduction in premium, equivalent to about 5%. Consequently, individual rates have been reduced in the range of between 4.09% and 8.40% depending upon the category of vessel. In the majority of cases, clubs have automatically passed these reductions onto their members. However, in some cases clubs resisted attempting to retain the savings for their own account, a position which is clearly unacceptable given that in a rising reinsurance market, clubs are quick to pass on the additional cost.

Griffiths continued: “The 2011 renewal season also saw EU enquiry into the IG non competition arrangements gather momentum. Club managers faced a new challenge, as the commission’s fact finding teams requested information from each club relating to fleet movement within the IG system, dating back over a 10 year period. The EU and IG are due to meet in March to review the findings, and although it is likely to take some time before a final landing is reached, the ‘easy money’ is on the IG being maneuvered into lowering release calls in an attempt to assist competition.”

Source : Aon Press Release

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Health and science research would get a  billion-dollar boost under the 2012 budget proposed Monday by US President  Barack Obama, including a major new project to speed lab advances into cures.

The increase for the National Institutes of Health stood out in the overall  3.7 trillion dollar budget plan that would slash 90 billion dollars in  spending in 2012 and 1.1 trillion dollars over the next 10 years.    But it faces hefty opposition from Republican lawmakers who aim to trim a  billion dollars from the world’s largest public research institute as part of  other cuts to science and research they say are necessary as America faces a  1.65 trillion dollar deficit this year alone.    Leaders of the US government’s major health centers, well aware that the  budget faces a hostile Congress, sought to frame the Obama plan as a way of  doing more with less.

“New frontiers have the promise to unlock revolutionary treatments and  cures from diseases ranging from Alzheimer’s to cancer to autism,” said Health  and Human Services Secretary Kathleen Sebelius.    “Our budget will allow the world’s leading scientists to pursue these  discoveries while keeping America at the forefront of biomedical research.”    Sebelius said that despite the 3.4 percent hike for NIH, other spending  cuts in government agencies resulted in an across-the-board budget that was  “slightly below 2010” levels.

“We have to figure out a way that existing resources actually not only  accomplish the earlier missions but also the new missions that have been given  to us over the past few years,” she told reporters.    Obama’s budget would also raise by 13 percent the annual budget for the  National Science Foundation, bringing it from 6.9 billion to 7.8 billion  dollars, and trim the Centers for Disease Control by 8.8 percent to 5.8  billion dollars.    CDC chief Thomas Frieden said his agency’s budget retooling was “complex”  and included new programs toward HIV/AIDS prevention in the United States and  global polio eradication as well as decreases in environmental and  occupational health.    Those adjustments, together with some internal restructuring, leave the  entire CDC at “about level” with its 2010 spending, he said.

NIH director Francis Collins said his agency will refocus its efforts to  bring laboratory discoveries more quickly to patients through a new  institution called the National Center for Advancing Translational Sciences,  which has been estimated at around a billion dollars.    “There is a great deluge of opportunities right now in basic scientific  discoveries pointing us toward new potential therapeutics and the opportunity  to have a center that focuses on that has been an idea that many people  embrace both in the administration and both parties,” Collins said.    “This is going to be a new arrival on the NIH stage we hope by October,” he  said.    Another new effort is the Cures Acceleration Network, a 100 million dollar  plan to speed drug development that is included in the budget for the first  time.

Obama’s 2011 budget request was never enacted, and the US government has  been funded since 2010 by stop-gap spending measures.    A new one is needed by March 4, which Republicans hope will total 100  billion dollars in spending cuts over Obama’s 2011 proposal.    Jon Retzlaff, director of science policy at the American Association for  Cancer Research, said many researchers worried about the possibility that NIH  could be flat-funded by not receiving the billion dollar boost Obama wants.    “There is no question if there are not new dollars available it is very  difficult to begin any kind of new program or even to emphasize certain  programs,” Retzlaff told AFP.    “It is just concerning when there is so much momentum in the field right  now and so many exciting discoveries being made practically every day to think  that we are going to slow down this process.”

Washington, Feb 14, 2011 (AFP)

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Microsoft on Tuesday advocated fighting  pernicious computer viruses with public health tactics used to stop the spread  of SRAS, H1N1 and other dangerous real world bugs.    Computers could be granted health certificates to be used online to show  they were checked for viruses, Microsoft vice president of Trustworthy  Computing Scott Charney said at a RSA computer security gathering here.

“There are a lot of parallels to the health model,” Charney said.    “In public health we give people advice like wash your hands to stay safe  or get vaccinations,” he continued. “We can do that in the Internet world as  well, and if your computer is sick we give you treatment.”    Computer versions of public health notices could include the importance of  running updated anti-virus software or warnings about the latest malicious  software spreading online.    Charney told of “proof of concept” online identification software that  could play a pivotal role in an online public health model by verifying that  people on the Internet are who they claim to be.

People wouldn’t be compelled to use computer health certificates, but  businesses could require them for certain services.    “Instead of just reacting to tainted machines, we can look out for machine  health,” Charney said.    “It’s not about quarantining machines,” he continued. “It’s about  remediation.”    Charney caused a buzz last year at RSA with a suggestion that computers  infected with malicious software be quarantined on the Internet.    “We could flip it around to use the identity model,” Charney said. “Where  consumers would be asked for health certificates (for computers) and not  providing one might have some consequences.”

People who didn’t present health claims could encounter precautions such as  caps on money accessed in online bank accounts or limited Internet data flow.

San Francisco, Feb 15, 2011 (AFP)

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Fitch Ratings has affirmed Chartis Life South Africa Limited’s (Chartis Life SA) and Chartis South Africa Limited’s (Chartis SA) National Insurer Financial Strength (IFS) ratings at ‘AAA(zaf)’. The Outlook on all the ratings is Stable.

The affirmation follows Fitch’s downgrade of the parent company, Chartis Overseas, Limited’s (Chartis Overseas) IFS rating to ‘A’ from ‘A+’ on 10 February 2011 (see “Fitch Downgrades AIG’s Domestic Non-Life Subs to ‘A’, Affirms Holding Co Ratings”, on www.fitchratings.com). Chartis Life SA and Chartis SA’s ratings reflect strong formal support agreements provided by Chartis Overseas, a wholly-owned property/casualty subsidiary of American International Group Inc (AIG, ‘BBB’/Stable). The National IFS ratings of Chartis Life SA and Chartis SA are unaffected by Chartis Overseas’ downgrade, as Chartis Overseas’ ratings were higher than they needed to be to support the National IFS ratings of Chartis Life SA and Chartis SA. However, any further downgrade of Chartis Overseas would likely to lead to a downgrade of Chartis Life SA and Chartis SA’s ratings.

Chartis Life SA’s and Chartis SA’s ratings reflect the companies’ well-established business positions in their chosen market segments, conservative investment portfolios with high levels of liquidity, and strong capital positions. Chartis SA’s solvency margin strengthened to 50% at financial year ended 30 November 2010 (FYE10; FYE09: 47%) and is well above the regulatory requirement of 25%. Despite the deterioration in Chartis Life SA’s published regulatory capital adequacy requirement (CAR) cover to 4.0x at FYE10 from 6.3x at FYE09, which was attributable to a dividend payment to its immediate holding company, Johannesburg Insurance Holdings (Pty) Ltd (JIH, a pure holding company with no trading activities), it remains at a strong level and above the regulatory requirement of 1x cover.

The key rating drivers that could result in a downgrade include the guarantor’s, Chartis Overseas’ ratings being further downgraded. Chartis Life SA and Chartis SA would also be downgraded given the strong support agreements provided by the guarantor. In addition, a significant and sustained reduction in capitalisation and/or deterioration in Chartis Life SA’s and/or Chartis SA’s business positions could exert negative rating pressure.

Chartis Life SA and Chartis SA are both incorporated in South Africa. Chartis Life SA is a life insurance company underwriting accident and health contracts in the South African market and focuses solely on retail business. Chartis SA conducts all classes of non-life insurance business in the South African market. It focuses predominantly on large commercial business where it is one of the leading non-life insurers in South Africa. Chartis Overseas is the holding company of both Chartis Life and Chartis SA with AIG being the ultimate parent.

Source : Fitch Ratings Press Release

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Elderly people with hearing loss have a  greater chance of developing dementia, a risk that increases as their deafness  worsens, according to a new report published Tuesday.    The research studied 639 individuals between the ages of 36 and 90 without  dementia, who were given cognitive and hearing testing between 1990 and 1994.

The test subjects were followed for the development of dementia and  Alzheimer’s disease through May 2008, according to the study published in the  February issue of Archives of Neurology, a publication of the Journal of the  American Medical Association (JAMA).    Of the participants, 125 had mild hearing loss (25 to 40 decibels), 53 had  moderate hearing loss (41 to 70 decibels) and six had severe hearing loss  (more than 70 decibels).

During a follow-up midway through the study, after about 12 years of  research, 58 individuals were diagnosed with dementia, including 37 who had  Alzheimer’s disease.    The study found that the risk of dementia was higher among those with  hearing loss of greater than 25 decibels, with further increases in risk  observed among those with moderate or severe hearing loss as compared with  mild hearing loss.

“Hearing loss may be causally related to dementia, possibly through  exhaustion of cognitive reserve, social isolation, environmental  deafferentation (elimination of sensory nerve fibers) or a combination of  these pathways,” wrote the researchers, who are affiliated with the Johns  Hopkins University in Baltimore, Maryland.    “With the increasing number of people with hearing loss, research into the  mechanistic pathways linking hearing loss with dementia and the potential of  rehabilitative strategies to moderate this association are critically needed.”

The researchers said that by the year 2050, an estimated 100 million people  or nearly one in 85 individuals worldwide will be affected by dementia,  according to background information in the article.      Interventions that could delay the onset of dementia by even one year  could lead to a more than 10 percent decrease in the prevalence of dementia in  2050, the authors wrote, but added that at present, “unfortunately, there are  no known interventions that currently have such effectiveness.”

Washington, Feb 15, 2011 (AFP)

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Specialist media and technology insurer Hiscox has criticised some claimant law firms for manipulating and inflating costs in defamation and privacy cases.

Responding to the Government consultation on costs in civil litigation, the insurer says that ‘After The Event’ (ATE) insurance policies can be used to inflate costs and ‘may not offer any real costs protection to defendants’.

‘Some claimant law firms use significant staged but deferred ATE premiums to add to costs so as to force through settlements where defendants have good and real defences but can’t run the risk of paying enormous costs if they lose,’ the insurer says. ‘Claimant lawyers can get away with using this tactic because the claimant policyholder usually has no direct interest in the cost or terms of the policy and will never have to pay the premiums.’

Ian Birdsey, Media and Technology Claims Manager at Hiscox, comments: “The broken system in place means that defendants in defamation and privacy claims may well suffer the disadvantages of paying for ATE policies when they lose without any of the expected benefits when they win.”

The specialist insurer, which notes that over half of all media claims it has handled since 2003 have been defamation and privacy, supports Lord Justice Jackson’s proposals to end recoverability of ATE premiums.

It also supports ending the recoverability of conditional fee agreements (CFAs), commonly known as success fees. The principle of recoverability is flawed by the effect it has of separating claimants from an interest in controlling their lawyers’ costs, says Hiscox.

“We have no doubt that without CFA success fees being recoverable, claimants would seek better control of their legal costs and this ‘weapon’, which at present tilts the playing field against defendants, would not be available to claimant lawyers,” says Ian Birdsey.

Suzanne Kemble, Head of Media & Entertainment at Hiscox, added: “With these reforms, our clients in the media and technology industries would be far better able to pursue their defence in the courts and achieve justice.”

Source : Hiscox press Release

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The DVLA in conjunction with the Motor Insurers’ Bureau (MIB) and the British Insurance Brokers’ Association (BIBA) are reminding drivers that a new law to be rolled out in late Spring will mean that they must keep their vehicle insured unless they have notified the DVLA that is it is being kept off the road.

Information about the new law is being distributed with all V11 tax renewal forms from March in addition to the guidance and video available now on Direct.gov.

David Evans, DVLA’s Corporate Affairs Director, said:

“We know that uninsured drivers are a menace on our roads and add around £30 to honest motorists’ premiums.

“It is vitally important that motorists understand the change and how it will impact on them.  That is why we have added new information today to Direct.gov which offers clear advice to help motorists understand the new rules.”

Neil Drane, MIB’s Head of Motor Insurance Database Services said:

“The change in law is a stepping up of enforcement activity, so that not only those vehicles driven without insurance will be caught.  Now the registered keeper must make sure that their vehicle is insured all the time.  And if it is, then they need not be concerned.  The DVLA and MID will be systematically checked, so that the levels of uninsured driving are reduced even further.”

Graeme Trudgill, BIBA’s Head of Corporate Affairs said:

“Continuous Insurance Enforcement will help reduce the £500 million burden on innocent motorists caused by uninsured drivers, vehicle keepers should ensure they stay insured or SORN their vehicle if it is laid up, vehicle keepers can always check at www.askmid.com or speak to their insurance broker or company if they have any doubt.”

Source : BIBA Press Release

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A total of 21 flood defence projects have been outlined in coastal areas of England and could help property owners avoid insurance claims as a result of an incident.

Some £521 million has been allocated to managing the risk of floods, as well as maintaining existing defences and raising awareness of the issues surrounding such an event.

Environment minister Richard Benyon said: “Schemes which will contribute the most in terms of protection to households and economic benefit per pound spent have been prioritised.”

He also explained how the resources will be introduced with a view to protecting as many people as possible from the threat of disruption caused by flooding in the UK. In the meantime, property owners and house insurance customers who know they may be at risk of water damage can take steps to lessen the effects should an incident occur.

The Environment Agency recommends fixing home entertainment equipment to the wall approximately 1.5m above the ground and investing in special boards that can be put in place should a flood prove imminent.

Source : UIA Press Release

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At least 20 people have died of swine flu in  China this year, the health ministry said Friday, but officials said there was  no reason to panic even as the flu season reaches its peak.    The fatalities from A(H1N1) influenza have been recorded in at least nine  locations since mid-January, the ministry said.

The official Xinhua news agency reported another death in Guangdong  province in the south, citing local officials, but an official at the ministry  said he could not confirm that the toll had risen to 21.    Swine flu has killed more than 18,400 people and affected practically all  parts of the world since it was uncovered in Mexico and the United States in  April 2009, according to the World Health Organization.

At least 800 people died in China of swine flu as of April 2010, according  to the health ministry.    In August last year, the agency said swine flu had “largely run its  course”, declaring an end to the pandemic but warning that “localised  outbreaks of various magnitudes” were likely to continue.

Several countries have recently reported deaths from A(H1N1) influenza as  the flu season peaks but not on the scale seen when the outbreak first  emerged, due in part to mass vaccination campaigns.    Shu Yuelong, director of China’s National Influenza Centre, said while the  number of serious cases and deaths could increase, the outbreak was not as bad  as that seen in 2009, according to the government-run Health News.

Wang Yu, spokesman for the Beijing Centres for Disease Control and  Prevention, said the threat posed by A(H1N1) should not be overestimated.    “Now we know it as a new, but common kind of flu,” Wang was quoted saying  by the Global Times on Friday.    “There’s no need to panic.”

Beijing, Feb 11, 2011 (AFP)

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Specialist underwriting agency DUAL Corporate Risks has entered into a strategic partnership that will see Kennedys handling claims on a third-party basis.

The arrangement, which is a response to the rapid growth of DUAL Corporate Risks, provides additional volume to the company’s claims management services and the ability to offer extra features. The partnership with Kennedys, which was launched on 1st February 2011, also ensures enhanced service standards and incorporates the experience and quality that Kennedys, a UK-wide insurance law firm, can provide, including a complete life-cycle claims management service.

As part of the strategic partnership Kennedys will not only handle the lower-value, high-volume claims and negotiate them through to settlement, but also with DUAL will effectively resolve complex and specialist claims. Claims will be handled via a bespoke internet-based claims management system created and operated by DUAL.

DUAL’s head of claims, Martin Turner, will be responsible for managing the Kennedys relationship and will continue to oversee service standards.

Russell Kilpatrick, executive chairman of DUAL Corporate Risks, said: “This is an exciting step for us because it provides additional scale and expertise to support our growth. It also adds a one-stop-shop capability, including legal advice, a claims helpline and support as required in all our existing services, which have a focus on professional indemnity and D&O business.”

He added: “It also underlines our commitment to higher levels of service for customers and brokers. Being able to outsource smaller, more frequent claims to a law firm of the calibre and experience of Kennedys, while at the same time having their expertise on tap, is an invaluable resource.”

Nick Williams, head of the insurance division at Kennedy’s, said: “Our range of experience in dealing with insurance claims means that we can make a unique contribution and it has been a natural step for us to provide a claims handling service on behalf of professional indemnity insurers. We are delighted to be working in partnership with DUAL Corporate Risks.”

Source : Dual Press Release

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Allianz Retail has secured a multi-year deal to provide affordable pet insurance to The Co-operative Insurance.

Underwritten by Allianz, The Co-operative Insurance will be offering comprehensive cover with a range of flexible add-ons, so that customers can tailor policies to meet their individual needs.

The partnership marks the Corporate Partner team’s entry into the pet insurance market, a key part of its long-term strategy to build upon the Allianz Group’s animal health expertise.

Lee Mooney, Head of Pet Insurance at The Co-operative Insurance, said: “Allianz demonstrated a clear understanding of The Co-operative Insurance brand and were able to deliver an extremely innovative product. The company has significant animal health expertise in the UK and the Corporate Partner team has a track record of delivering profitable growth for its clients – we have every confidence that this will be an extremely successful partnership.”

Mike Caidan, head of sales for Allianz Corporate Partner, comments: “This partnership is a really important part of our Corporate Partner strategy. The product has been created especially to meet the needs of The Co-Operative Insurance and its customers, providing flexible pet insurance tailored to individual requirements.”

He adds: “We have developed a profitable and sustainable trading model and have the appetite and capability to grow our client base further. We look forward to living The Co-operative insurance brand throughout this relationship.”

Source : Allianz Press Release

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Small and medium sized businesses (SMEs) are putting their livelihoods at risk by not taking the time to prepare disaster recovery and business continuity plans (BCP).

As part of Aviva’s bi-annual SME Pulse, half of SME owners asked about BCPs stated that they had no such plan in place, and a further 16% said they didn’t think they needed one. In fact, just 28% of business owners who took part in the research said they had a BCP in place.

However, there are good reasons for having a plan. According to the Federation of Small Business, 80% of businesses affected by a major incident close within 18 months and 90% of businesses that lose data from a disaster are forced to shut within two years.

David Bruce, commercial product manager at Aviva: “Given the current economic climate, it’s understandable that business owners are focusing on the day-to-day aspects of their business. But that doesn’t mean they should take their eye off the business planning side of things. A disaster or crisis can strike a business at any time and failing to plan for such an event can undo years of good work and hard trading in an instant. If the worst does happen, then having a business continuity plan in place may be the difference between your business recovering or failing.

“Consider, for example, the effects of the recent bad weather on businesses. Some may have had to close unexpectedly because of freezing pipes or operate at a much lower capacity because staff or suppliers could not get to them. Being prepared for such events mean the business owner has greater control over a situation and this can take away some of the pressure at what is likely to be a stressful time.”

The research also revealed a lack of knowledge as to the role of a BCP with only 36% of respondents aware of them and confident that they know about their purpose. The remainder had either heard of them but were unsure as to their purpose or effectiveness (31%) or else had not come across the term previously (33%).

And just a quarter (25%) of businesswomen confirmed they had a BCP and kept it up to date, compared to 40% of businessmen.

Bruce continues: “We have designed a new SME BCP template so that we can offer all types of businesses a quick and easy way to create a plan. Whilst it may not be able to stop a serious incident happening, it can certainly ensure a smoother return to normal trading afterwards.”

SMEs ‘underestimating’ the time it takes to recover
The Aviva SME Pulse also found that business owners grossly underestimate the time it can take to get their company back on its feet following a serious incident or interruption.

The majority of SMEs believe it would take them only one week (33%) or one month (31%) to return to normal trading. However, according to Aviva’s team of commercial specialists, a return to full normal trading can often take a business more than a year.

The following example of a hypothetical claim is based on Aviva’s experience of business interruption claims and illustrates the considerations that need to be taken into account.

Scenario: A café with 20 covers, located in the middle of a city suffers a major kitchen fire which means the premises must be closed and a re-build is required. In this example, the building is owned by the policy holder, meaning the decision making process does not involve a landlord.

The planning permission/building warrants could take two months then once the specifications are agreed, tenders process undergone and building contract allocated this could be a further two months. Assuming the contractor is available to start immediately, building work could take six months to complete. (Don’t forget delays can be caused by trades holidays, poor weather conditions and availability of required materials.)

Fitting out the premises and completion of any statutory inspections can take two months and once the business is up and running again, it can take three to four months to win customers back and return to pre-fire turnovers. Thus it could take 15-16 months before the business has fully recovered.

David Bruce continued, “The recovery period after a serious incident is often underestimated. It’s only once the disruption has occurred that business owners realise the number of hurdles involved in getting back to normal. For example, we have seen some instances where just obtaining planning permission can take several months.

“Having your recovery plan firmly in place, rehearsed and agreed upon clearly helps with the process – not just in handling an unexpected event but also in understanding the key influences on the businesses’ day to day operations, which in turn can help estimate the likely recovery time the business might need.

“Worryingly, we found that only 19% of businesses who took part in our research said they had full contingency plans in place and the appropriate levels of insurance which suggests a lot of businesses are unprepared should an event occur.

“We urge business owners to spend some time making sure they have appropriate contingency measures and protection in place.”

Regional and sector-specific findings
The latest SME Pulse also revealed some interesting sector-specific and regional findings;

– Small shops and salons are the least well equipped with 59% not having a business continuity plan (BCP) in place, followed by 58% of restaurateurs and tradesmen.

– One in four – 21% – of professional services firms don’t believe they need a BCP – the highest of any sector asked.

– Tradesmen (36%) and professional services firms (44%) are the most confident about a swift return to business within one week, despite the evidence to the contrary from Aviva’s team of commercial specialists.

– Those in the North East (67%) and London (54%) are the most aware of the concept and value of BCPs, unlike Yorkshire (28%) and the North West (25%).

– Just 17% of SMEs questioned in the North West and 21% in the South West have a BCP in place, compared to London (37%) and NI (36%)

– Businesses in the West Midlands (77%) and South West (70%) are the most optimistic about recovering within one month of an incident or crisis. However, perhaps the most realistic business owners are based in Wales (20%) and Northern Ireland (28%) as they felt recovery could take six months to a year.

Source : Aviva Press Release

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While many international businesses with interests in Egypt have just gone through the experience of securing or evacuating their staff from the country, Aon Risk Solutions, the global risk management business of Aon Corporation, is advising companies to begin planning now for the effects of any potential spread of unrest in the region.

Throughout the crisis, Aon’s Crisis Management team, which specialises in insurance brokerage and risk management for incidents such as terrorism, kidnap and political risk, has been approached for help by companies who thought they had effective plans in place, but because so many other firms were looking to implement their plans at the same time, found there were simply no resources available to execute the plans effectively.

Justin Priestley, executive director of Aon’s Crisis Management team commented: “While contagion to other countries in the region is far from a certainty, companies need to make sure they have robust ‘worst case’ scenario plans in place. We have seen relatively well prepared companies run in to trouble securing or evacuating their staff; and we have seen unprepared companies really suffer.

“Companies have a duty of care to their employees and it would not be a stretch to say that firms not looking to where the next hot-spots may be are failing in that.”

When planning for this kind of crisis, Aon suggests:
– Always have good, up to date information: this includes both the people on the ground and the people in head office. Open source information such as television news, newswires and social media are invaluable, as are specialist sources such as security analyst firms.
– Have a worst case plan: have a robust, tested evacuation plan in place, keeping in mind that other firms will be having the same idea.
– Actively manage exposure to risk: on an hour-by-hour basis, working with the people on the ground, establish just what kind of risks are acceptable to the firm. For example, is it acceptable for an employee to try to make it to the airport, or should they sit tight in their accommodation?
– Ensure that the employees sent to work in a foreign country are trained and experienced: safety comes down to lots of small decisions, and often these decisions are based on the individual experience or lack-of.
– The ultimate decision to evacuate rests with head office: The individual on the ground can lose sight of the overall picture, and become emotionally involved. Leave the ultimate decision to leave or stay with someone oustide the situation.

Justin Priestly continued: “While the personal consequences of staying or not staying in a hot-spot can be enormous, if an employee is travelling or working on behalf of a foreign firm, the consequences of their actions will ultimately be the responsibility of the firm. During this crisis, for example, we have seen many foreign journalists want to stay in the thick of the action, but the risk to their safety has simply been too great for their news organisations to take.

”Dealing with the fall of a government or a terrorist attack is not exactly normal operating activity for the vast majority of firms. Many simply don’t know the options available to them in terms of international consultants, or think that an insurance policy is enough to cover them, forgetting about the human consequences on the ground.”

Source : Aon Press Release

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Health authorities have declared a red alert in Peru’s northern Amazon jungle region following the outbreak of an “very aggressive” dengue strain that has killed 14 people and sickened thousands.

Dengue is endemic to the jungle region, but until now Peru has largely dealt with the American strain of the disease.

Now authorities are facing “a new variety that we did not know in Peru and that probably entered from Brazil via the Amazon,” Health Minister Oscar Ugarte told local reporters on Tuesday.

Some 13,000 people have been infected and at least 1,600 people have been hospitalized for treatment, a health official in Loreto, in northeastern Peru, told AFP. At least 14 people have died since the start of the year.

There is no vaccine for dengue, a mosquito-borne viral disease.

A senior Loreto health official, Hugo Rodriguez, told AFP that this dengue strain is known as the Asian-American variety, and unlike the American variety produces severe shock among victims.

“It is a combination of both varieties,” Rodriguez said, describing the strain as “very aggressive.”

Health officials in Iquitos, Peru’s main city on the Amazon river located some 1,000 kilometers (620 miles) north of Lima, has launched a fumigation program in an attempt to diminish the number of mosquitos.

The virus can result in deadly fevers, especially among children: half of those killed were minors. Dengue has become a serious problem in South America.

Eight people have died of dengue since December in Bolivia, all in the Amazonian Beni region. In Paraguay, the disease has killed five people since the start of the year, President Fernando Lugo said.

Nearly 125,000 cases were reported in Venezuela in 2010, nearly twice the figure from the previous year.  Dengue deaths are also up considerably in Brazil, local officials said, while 93 people died of dengue in Colombia in the first semester of 2010.

The disease killed nearly 1,200 people across Latin America in 2010, according to Pan American Health Organization figures.

Lima, Feb 8, 2011 (AFP)

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Gone are the “Big Mamma” stereotypes and the full figures of yesteryear — a new study on Friday has found Italian women are the only ones getting thinner despite an obesity epidemic in the Western world.

And experts told AFP it’s all thanks to major cultural changes in Italy, a healthy Mediterranean diet and simply paying more attention to waistlines.

The ideal of beauty is “very different from the post-war period if you look at photos of actresses from the 1950s” like Sofia Loren or Gina Lollobrigida, said Maria Rosaria D’Isanto, a nutritional expert in Treviso in northern Italy.

A global study published in British medical journal The Lancet backs her up, finding that the Body Mass Index (BMI) for Italian women has fallen from 25.2 in 1980 to 24.9 in 1990 and 24.8 in 2008, bucking the trend seen elsewhere.

In Britain, the average BMI for women has risen from 24.2 in 1980, to 25.2 in 1990, 26.2 in 2000 and 26.9 in 2008. For US women the increase in BMI has been even more stark — from 25.0 in 1980 to 28.3 in 2008.

D’Isanto said Italian women are just more informed about weight issues.   “The level of education has risen and with that so has the consciousness of the correlation between excessive weight and health. We have a new generation that is not the ‘fat is beautiful’ one,” she said.

Another important factor was “the re-evaluation during the 1980s of the Mediterranean diet” based on olive oil and rich in fibres, she added.

In France “the cuisine is rich in fats with cheese or butter but in Italy it’s olive oil. We are more conscious of what constitutes fat,” she said.

Public health campaigns in schools over the past 30 years have given a helping hand and Italian women are now doing more exercise than ever before.

And last but not least parents are becoming “very careful about food” compared to grandparents, who think of “plentiful eating as a sign of wealth.”

Pietro Migliaccio, head of the Italian Society of Food Sciences, says he now can’t tell the difference between a 30-year-old and a 45-year-old or between a 40-year-old and a 65-year-old in the streets of Rome or Milan.

“If you look at Scandinavian, German or Ukrainian women, they’re magnificent when they’re 18-20 years old but after that they let themselves go and by the time they’re 35 they’re already flabby,” Migliaccio said.

“It’s not just that they’re going to the hairdresser more. Italian women are among the most elegant in Europe and they care more about their waistlines than other women,” he said — “even when they are overweight or obese.”

Last but not least, Migliaccio said the BMI is going down because Italians as a whole are getting taller “and can now have basketball or volleyball teams” — with average heights rising some 10 centimetres in the past 100 years.

Why?: “A better diet, a healthier lifestyle and more happiness.”

Rome, Feb 4, 2011 (AFP)

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Brit Insurance, the international general insurance and reinsurance group, is pleased to announce the expansion of its Combined Property and Packages London team with the appointment of Stuart Wolstenholme as Property and Packages Underwriter. He takes up his new role immediately.

Stuart will report directly to Amanda Doran, Underwriting Manager, Combined Property and Packages. In his new role, he will work closely with brokers to develop and refine the Group’s portfolio in this area.

Stuart joins Brit Insurance from Zurich Insurance where he was Senior Market Underwriter, responsible for managing a large SME business specialising in media/SLE and building a strong reputation across the commercial combined and contingency areas. Prior to Zurich, Stuart held various senior-level underwriting roles specialising in global liability classes.

Paul Dilley, Regional Director – London, commented:

“Property and Packages is an important part our portfolio and Stuart’s appointment reflects our team’s strength and drive in this key area. His underwriting expertise and insight across a wide-range of classes, combined with his managerial skills will be a valuable asset to our London team.”

Source : Brit Insurance Press Release

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Aviva today announces that it has increased final bonuses and reduced market value reductions (MVRs) for unitised with-profits customers. Investors have seen strong growth in their investments during 2010 and £1.45 billion in bonuses have been added to customers’ policies.

Highlights

– The main Aviva With-Profit Fund grew by 12% (gross) in 2010. Equities and property now account for 66% of the fund.

– Final bonus rates for bond customers have typically increased by 6% and MVRs reduced by an average of 4% during 2010.

– 70,000 with-profits bond customers will benefit from valuable guarantees in 2011.

– A with-profits bond investment of £10,000 held for 10 years in January 2011:

    • Has grown in 2010 by £1,168, or 10.1% (after tax and charges)
    • Is worth £14,680 (with no-MVR guarantee)  – a return of 3.9% annually
    • Outperformed a bank or building society average savings account which returned 2.3% a year (after basic rate tax and charges).

– A 25-year £50 a month mortgage endowment* started on 1 January 1986:

    • Has a maturity value of £33,937 and grown 7.6% in 2010,
    • Annual return of 6% compares favourably with 3.4% from an average bank or building society savings account. (All figures net of basic rate tax). *Invested in Old & New With-Profits Sub Funds (ex-CGNU fund).

David Barral, chief operating officer at Aviva, said: “Aviva’s with-profits investors have enjoyed good returns over 2010 and our funds continue to deliver steady returns for cautious investors. We’ve increased unitised final bonus rates, reduced MVRs and a 10-year bond with the no-MVR Guarantee gives an annual return of 3.9%, outperforming average savings accounts. This is impressive when you consider that we have been through two bear markets in the last decade with the FTSE-100 returning 2.9% annually over the same period. We’ve also increased investment in equities with the aim of maximising potential returns.”

Source : Aviva Press Release

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The British Insurance Brokers’ Association (BIBA) has warned that brokers will see increases in June for 2011/12 Financial Services Compensation Scheme (FSCS) levies of around 50% on last year’s figure. BIBA is urging brokers to adjust budgets in order to prepare for the bills, which follow the significant increases that brokers saw last year.

The warning comes from BIBA following the FSCS interim budget publication and BIBA’s regular liaison meetings with the FSCS. BIBA has also been requesting early warnings from the FSCS for any further major increase in costs following last year’s 9-fold increases.

Eric Galbraith, BIBA Chief Executive said: “Our meetings and discussions with the FSCS have highlighted that claims on the FSCS have continued to increase because of the failure of credit brokers and their mis-selling of payment protection insurance.

“Brokers will yet again be unfairly penalised because the FSCS implementation of the rules means that our members pay for failures of credit brokers who have sold this product. This is ridiculous and BIBA is doing everything that we can to demand a fairer compensation system. We have also called on the FSCS to ensure they pursue recoveries against the relevant insurer, where it can be proven that the credit broker was acting as the insurer’s agent.”

Steve White, BIBA Head of Compliance and Training, added: “The current compensation funding model is patently unfair for insurance brokers, who present a low risk to consumers. We successfully lobbied throughout 2009 and 2010 for a review of the funding system and received this review but the recent delays in issuing the consultation paper must not be allowed to drag on. Whilst issues in Europe and on pre-funding are delaying the review, the FSA needs to ensure that the proposed 2012 completion date is not extended. It is imperative that the funding review produces changes to the rules that are effective no later than April 2012.”

BIBA continues to lobby for broker separation and no cross subsidy in the funding model. When the FSA consultation paper is issued, BIBA will launch its call to arms and enable every member to send their local MP the same messages that BIBA is lobbying the FSA and central government with.

Eric added: “This is one of the biggest issues facing brokers and when the time is right, we need to take collective action with one single message, so that those in power hear a consistent voice from the sector.  We are ready to do this and are urging brokers to wait until the FSA consultation paper is issued, as we believe that lobbying jointly together, at the right time, both centrally and regionally will be the best way to achieve change.”

BIBA also believes that brokers may have to pass this cost onto customers as they have no other way to pay this levy which is being imposed upon them unfairly. This may be the only way to avoid them going out of business.

Source : BIBA Press Release

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