Monday, November 25, 2024
Home Authors Posts by Sofia Ashmore

Sofia Ashmore

Profile photo of Sofia Ashmore
1466 POSTS 0 COMMENTS
http://www.news-insurances.com

0 0

With the recession having taken its toll on consumer spending, recent research from Mintel has shown that hostel accommodation remains popular with younger travellers. In the past three years, one in four travellers aged 16-24 has stayed in hostel accommodation whilst on holiday.

Post Office Travel Insurance is advising younger travellers to think about security for their valuables whilst staying in communal accommodation as this may affect their travel insurance policy.

Post Office Travel Insurance advises all travellers to store valuables such as cameras, phones or travel money locked away securely. Post Office Travel Insurance further reminds holidaymakers staying in a hostel that a claim can typically only be made on many travel insurance policies if valuables have not been left unattended. In shared accommodation such as hostels, it is often recommended that travellers keep all of their valuables with them at all times.

Post Office Travel Insurance recommend travellers who are staying in hostels purchase or rent a safety box in which to keep their valuables. Post Office Travel Insurance advises all UK holidaymakers to take appropriate steps to secure any valuables while on holiday, whether staying in shared accommodation or in a hotel room.

Source : Post Office

    0 0

    The latest Aon Hewitt DC Index shows a £453 increase to the retirement income a 30 year old can expect to receive when he or she retires aged 65, the largest boost since July 2009.  The projected annual retirement income of a 30 year old is now £19,253.

    While savers now have some certainty over the maximum contributions they can make, there is still uncertainty over State Pension Age.  The Index also reveals a small improvement to the projected retirement income a 60 and 65 year old can expect with their pots benefitting from annual increases of £125 and £94 respectively.
    The Aon Hewitt DC Index follows the projected retirement income of individuals at different ages who contribute 10% of a £25,000 salary to a defined contribution (DC) pension arrangement and have an existing fund (valued as at September 2007) of £15,000 for age 30 and £150,000 for ages 55 and above.

    Retirement income projections
    The projected annual retirement income of typical DC pension investors at different ages (based on data collected on 30 September 2010 compared to the previous month) is as follows:

    – 30 year old: from £18,800 to £19,253 (£453 increase)

    – 60 year old: from £10,518 to £10,643 (£125 increase)

    – 65 year old: from £7,727 to £7,821 (£94 increase)

    Richard Strachan, senior consultant at Aon Hewitt, commented: “While members will be pleased to see their funds have increased in value, they are by no means out of the woods.  Given the rising levels of noise around the retirement age debate and length of time members may need to continue to work, employees need to seriously consider whether they are making realistic contributions to their pension pots and whether their monies are invested in the right type of investment strategy. For example, if members are looking towards partial retirement, then being in a lifestyle strategy – with its automated de-risking as members approach retirement – may not be the most appropriate strategy.  Therefore, although positive, these monthly figures should not be a cue for complacency.”

    Source : Aon Press Release

    0 1

    The new Ulip norms are taking its toll on policy sales by life insurers, including the Life Insurance Corporation of India (LIC). The new regulations came into force in September and premium income from new policy sales in the month is nearly half of that in August this year.

    According to experts, the minimum premium for Ulips has gone up under the new regime leading to lower sales.  Moreover, the new norms have trimmed the agent’s commission for selling Ulips, who are no longer pushing these products aggressively.

    Ulips make up almost 55 per cent of all insurance policies sold in the country. These policies constitute almost 80 per cent of a private life insurer’s business portfolio.

    In August, life insurers together collected Rs 18,500.49 crore as premium from sale of new policies. However, premium income from new policies in September stood at Rs 9,612.74 crore, a month-on-month decline of 48.04 per cent.

    The business of private life insurance companies slipped 21.85 per cent to Rs 3,006.10 crore in September from Rs 3,846.67 crore in August.

    The steep decline in life insurance business in September can be attributed mostly to the LIC, which recorded a first-year premium income of Rs 6,606.64 crore last month against Rs 14,653.82 crore collected in August, a decline of nearly 55 per cent. Keeping the September deadline in mind, the LIC had been aggressively selling its unit-linked Market Plus-I plan between April and August this year. LIC controls a 74 per cent share of the new business premium market.

    Among the front-running private players, SBI Life lost the least, while Birla Sun Life’s business declined the most. SBI Life’s first premium income in September dipped only 8 per cent, while that of Birla Sun Life plummeted 43 per cent.

    Earlier this month, Reliance Life’s executive director and president Malay Ghosh had said that Ulip sales had come down in September after the new regulations came into force. “The minimum premium for Ulips have gone up under the new regime leading to lower sales in September,” he said.

    However, Ghosh denied that lower agency commissions under the new regulations had much to do with lower sales. “Because in many of our products, particularly almost in 80 per cent of our Ulips, agency commission before September was less than 10 per cent,” he said.

    In case of Reliance Life Insurance, premium income from new businesses went down 33 per cent in September from the previous month.

    “Sales of Ulips will go down by 20 to 40 per cent depending on how companies follow the new regulations,” said R. Krishnamurthy, managing director (India) of Towers Watson, a risk consulting firm.

    “Insurance companies will now have to take a relook at their respective business and distribution model,” he added.

    Given the fact that traditionally September-March is the peak period for life insurance policy sales in India, it will be interesting to see how insurers gear up to cope with this situation. They had done brisk business during April-August this year, particularly by selling single-premium unit-linked pension plans.

    Interestingly, a number of insurers, such as Aegon Religare and Reliance Life have already launched defined benefit health insurance plans to diversify their product portfolio and thereby shore up premium income. Some insurers, such as ICICI Prudential, have started focusing on selling single-premium Ulips.

    While premium income from new businesses has declined in September, the average size of premium ticket has gone up for all insurers, except for the LIC. This is because insurers have increased their threshold premium for Ulips.

    Source : Telegraph India

    0 0

    Aon Benfield, reinsurance intermediary and capital advisor, has appointed Helen Ye as executive director and head of catastrophe reinsurance in China.

    Helen will be responsible for developing catastrophe reinsurance business by advising clients on their catastrophe exposures in China and helping to structure risk transfer solutions for these exposures. She will also be developing a center of excellence for catastrophe reinsurance in China and will be working with the government and re/insurance market to promote a higher level of awareness of catastrophe exposures.

    Helen joins from the risk modeler AIR Worldwide Corporation where she worked for five years and was most recently regional manager of Asia based in Tokyo. Her role involved managing client relationships, launching Japan and China models to achieve an 80 percent usage of AIR models in reinsurance submissions and expanding the company’s revenue through her sales and marketing strategies.

    Helen is a graduate of Peking University with a Bachelor’s degree in physical chemistry and has a Masters in finance from the University of Chicago. Helen will report directly to Henry To, CEO Aon Benfield China.

    Malcolm Steingold, CEO of Aon Benfield Asia Pacific, commented: “We’re delighted that Helen is joining the team. Through her role of setting up and managing a catastrophe modeling company’s operations in Asia, she has developed a deep understanding of natural catastrophe issues across the region. Her experience dovetails well with advising our clients on how to deal with exposures through either risk management or risk transfer.”

    Source : Aon Benfield Press Release

    0 2

    The British Insurance Brokers’ Association (BIBA) has formally responded to the HM Treasury consultation paper on a new approach to regulation. BIBA prepared and submitted a formal two-part response – based on the comments of a cross-section of members. BIBA responded to the questions in the consultation paper and additionally provided a paper providing both quantitative and qualitative comments on the current FSA regime.

    Putting the response into context, Eric Galbraith, BIBA Chief Executive, said: “Insurance brokers pose a low risk to the objectives of the Consumer Protection & Markets Authority and care should be taken to ensure that the new regime leads to appropriate and proportionate regulation of our profession. Treasury must now take this opportunity to lay down the foundations for a regulatory environment designed for our profession.”

    Galbraith added: “The regulatory cost burden in the UK is significantly higher than anywhere else in Europe. A competitive and healthy insurance intermediary market is in the national interest and so the issue of cost must be taken seriously”.

    Source : BIBA Press Release

    0 0

    India’s largest distribution network with 1.55 lakh offices has been thrown open to the insurance industry with the industry regulator allowing IndiaPost to sell policies of multiple insurance companies.

    This opens a new distribution channel for insurers who have been desperately trying to poach bank distributors from rivals to increase their reach. Insurers now expect a battle for prime circles, given that the Insurance Regulatory and Development Authority (IRDA) has limited the number of companies that each postal circle can tie up with.

    The revised guidelines allow each of the 22 circles of Indiapost to act as a corporate agent of two non-life insurers, two life insurance companies, one agricultural insurance company and one stand alone health insurance company. The regulator has however barred IndiaPost from selling customer data to insurance companies under some referral arrangement.

    In its revised guidelines released last week, IRDA said, “Each circle of India post should be treated as a separate unit in order to grant independent corporate agent licence with various insurers.However the Head of ‘Circle’ may approach IRDA for prior approval of further division in the ‘Circle’ as separate units, in the case of metropolitan areas, to obtain licence to act as corporate agent, in view of the large population under the circle,” said IRDA in its circular.

    IRDA has said that the head of the circle would be deemed to be the corporate insurance executive (CIE) — the key executive responsible for all insurance agency dealings.
    “Also, all the permanent employees of the India Post having an educational qualification of 10+2 or equivalent shall be deemed to be complying with the relevant provisions regarding requirements of minimum educational qualification, training and examinations prescribed for ‘Specified Persons’.

    In this regard, India Post shall take necessary steps to impart required training to its permanent employees to be designated as ‘Specified Persons’ within a period of one year from commencement of corporate agency, IRDA said. Corporate agency guidelines prevent banks from selling products of two competing firms.

    Given the limited number of banks, insurance companies have been struggling to find low-cost institutional distributors with a pan-India reach. The dispensation will also give the department of posts a new revenue stream. The postal department which had ambitions of becoming major distributors of financial products stopped selling mutual funds of most companies after a ban on front-loads resulted in commissions disappearing.

    Source : The Economic Times

      0 1

      AIA Group Ltd said Sunday it could raise up to 20 billion US dollars in a global public offering, putting it on track to be the world’s second biggest IPO this year.

      Announcing details of the sale at a press conference in Hong Kong, the Asian unit of US insurer AIG said it said it will offer 5.86 billion shares priced at between 18.38-19.68 Hong Kong dollars each, or up to 15 billion US dollars. It said it could issue up to 8.08 billion shares if it exercised a greenshoe option, which would bring the total raised to around 20 billion US dollars.

      AIG, which is looking to repay US taxpayers after a government bailout in 2008, won approval last month for the sale of its Asian unit and is planning to float about half of AIA.

      “This IPO serves as a great catalyst for the next and exciting phase in the AIA’s history,” Mark Tucker, group executive chairman and chief executive officer, said via a live video feed from the United States.

      Earlier this year, Agricultural Bank of China raised a total of 22.1 billion dollars from an IPO, exceeding the previous record set by the Industrial and Commercial Bank of China, which raised 21.9 billion dollars in 2006. Shares will be offered from Monday October 18 to October 21, with trading expected to begin on October 29.

      AIA said that as of May 31, it had total assets of 95.7 billion US dollars and an operating profit of 1.1 million US dollars. The company believes its consolidated operating profit for the fiscal year ending November 30 will not be less than 2 billion US dollars.

      Hong Kong, Oct 17, 2010 (AFP)

      0 0

      Aon Hewitt has welcomed the UK Government’s proposals for changes to pensions taxation which favour “simplicity over accuracy”.

      Tony Baily, principal consultant at Aon Hewitt, said: “We are pleased that the Government has listened and responded to some of the industry concerns. Given the limited time for the changes to be implemented, as simple a regime as possible was called for and the Government has responded to this in its proposals.

      “The higher than previously proposed Annual Allowance and a relatively low valuation factor mean that the winners are long-serving, middle-income earners in defined benefit plans, many of whom will now not be affected by the Annual Allowance. The losers are high pension savers who get caught by the reduced and frozen Lifetime Allowance.”

      Tony Baily continued: “Our survey this summer of over 150 pension managers revealed concerns that the new regime, as it was initially outlined, could penalise those who retired on grounds of ill-health or those who experienced a ‘spike’ in the value of their benefits, for example as a result of a pay rise.

      “Today’s proposals offer an exemption for ill-health retirees and the ability to carry forward unused allowances for up to three years to deal with these ‘spikes’. They may also open the way for a more structured approach to pension planning for many individuals.”

      However, Aon Hewitt cautioned that the levels of the allowances announced today would need to be kept under regular review to avoid a pensions version of “fiscal drag”.

      Tony Baily said: “If the reduced Lifetime Allowance is frozen at its initial level, many middle-income individuals will find that it becomes a real issue for them.  They may be pleased not to be caught by the Annual Allowance but they may well be caught again by additional taxation before long. Longer-term planning for pension is needed but the outlook is much less clear.”

      Timing issues
      Even if the reduction in the Lifetime Allowance is deferred until April 2012 (and this cannot be relied on), for the majority of the other proposals there is less than six months for individuals, employers and their pension schemes to prepare for the changes. Aon Hewitt thinks this will be a challenge.

      June Grant, principal consultant at Aon Hewitt, suggested a three-point call to action: “Pension schemes and their administrators will need to revise their systems to cope with these changes.  There is much to be done, although we do welcome the Government’s decision not to force plans to align their pension input periods with the tax year, as this would have brought yet more complexity.

      “Now more than ever it’s important for individuals to plan their own finances.  They will need to gather together all their historic pension information – some of which will not have been looked at for many years – to deal with the reduced Lifetime Allowance.”

      June Grant continued: “Most importantly, employers will first need to identify which employees are affected now and which further ahead.  They will then need to revisit their reward strategies to decide whether those senior people should be allowed to select alternative compensation or, where available, other approaches to pensions for retirement saving to avoid paying double tax.

      “Employers do not have long to decide on their approach and then to communicate it so that key staff can make informed decisions ahead of April.”

      Source : Aon Press Release

      0 0

      A poll of delegates at Aon’s 10th Middle East Energy Conference found that 41% expect premium prices in the energy insurance market to remain flat for the next 12 months. A further 37% expect prices to decline slightly.

      The findings confirm a general consensus among energy insurance market experts that while there was a rapid price increase in the energy insurance market in response to the significant losses endured by the industry earlier in the year, the effect was short lived and previous trends have been reasserted. The same survey found that more than half the respondents (53%) thought that it would take a further US$5 billion+ energy loss to bring an end to the current market cycle.

      After the economic challenges of the last two years, insurance market security rating is still a key issue for everyone involved in the sector, with 37% saying that they saw it as the most important factor in their choice of insurance partner. Technical capability (26%) was the second most important factor, while competitive pricing was also a significant concern (23%).

      Latif Alrayes, Chairman and CEO of Aon in the Middle East commented: “While the energy industry has weathered many storms over the past few years, barring any disasterous losses, the industry should be able expect flat or even declining insurance premiums over the next year. This should provide the sector with a level of relief and certainty around their operations and investments.

      “We have taken the opportunity to bring together clients, underwriters and other industry experts to discuss not only the issues surrounding insurance for the energy industry, but also wider energy policy across the Middle East and globally. Bringing together all sides of the industry is a vital component in our role as an insurance broker, particularly in an industry that is in the process of trying to deliver some investment certainty after an exceptionally challenging couple of years.”

      Source : Aon Press Release

      0 1

      Aon Benfield, reinsurance intermediary and capital advisor, is warning insurers in Asia to prepare for future “Supercat” events like those experienced in the USA. A Supercat event is defined as generating an insured market loss of at least USD10 billion and in Asia is most likely to occur in Japan, China and South Korea.

      By comparison, the USA will almost certainly continue to rank Number One in terms of Supercat losses for the foreseeable future due to the frequency of major hurricanes alone – such as hurricanes Katrina, Rita, Wilma in 2005 – without even considering earthquake and terrorism-related losses.

      Aon Benfield research also revealed the following Supercat loss scenarios:

      – Japanese typhoon is a major Supercat peril due to its severity and frequency. Repeats of typhoons Mireille (1991), Vera (1959) and Nancy (1961) could all produce Supercat insured losses, as could a direct hit of a strong (Saffir-Simpson Category 3) typhoon on Tokyo.

      – Continued strong economic growth, coupled with increasing insurance penetration, could result Supercat losses in mainland China in the next decade. A repeat of the 1976 Tangshan magnitude 7.6 earthquake could today cause insured losses ranging up to about USD3 billion. However with 10% growth in both underlying values and insurance penetration per annum this figure could reach USD10 billion if such an event occurred from 2016 onwards. Similar losses could result from a repeat of the 1679 Sanhe-Pinggu magnitude 8 event near Beijing or the 1668 magnitude 8.5 Tancheng event in Shandong.

      – Seoul in South Korea experienced damaging earthquakes in AD 89, 1385 and 1518 with magnitudes apparently ranging from 6.5 to 7.5 (Chiu & Kim, 2004). Any major earthquake around magnitude 7 affecting Seoul today would cause a major, perhaps Supercat-sized, insured loss.

      Dr. Will Gardner, head of Aon Benfield Analytics Asia Pacific, said: “The first step is for insurers and regulators, particularly in China and South Korea, to recognise the possibility of Supercat-sized earthquake losses and take action to ensure adequate catastrophe reinsurance protection.”

      Dr. Nigel Winspear, senior director at Aon Benfield Analytics, added: “Natural perils in Asia do not appear to be increasing in frequency or severity, however market conditions are changing with increasing insurance penetration and higher property values reflecting ongoing economic growth. Property insurance penetration in Asia is generally low and weakest in residential lines but often high in commercial and industrial lines. Some insurers opt to purchase as little catastrophe reinsurance protection as possible to maximise their retained premium.”

      Source : Aon Benfield Press Release

      0 0

      Canopius Group Limited (“Canopius”), a leading specialist insurance underwriting business, today announces a number of changes in its Professional Indemnity underwriting strategy and management.

      In keeping with its UK retail strategy, Canopius will focus its Professional Indemnity account predominantly on smaller UK professional organisations in the future. This portfolio will remain under the leadership of David Hunwick, Head of Professional Indemnity, Canopius Underwriting Limited, who has a successful and proven track record in this area.

      At the same time, Canopius will continue its strategic partnerships with certain coverholders in the UK and overseas who focus on similar “SME” Professional Indemnity business. These relationships will continue to be managed by Jeremy Hyne.

      Canopius is withdrawing, with immediate effect, from open market Professional Indemnity business that does not fit with this SME retail focus. As a consequence of these changes, Russell Newell and Alex Dyer will be leaving the organisation.

      Source : Canopius Press Release

      0 0

      Hewitt EnnisKnupp, an Aon Hewitt company, announced today it has hired Karen Rode as the leader of its Global Private Equity group. In this role, Rode will be responsible for leading a team of professionals that help Hewitt EnnisKnupp’s clients build highly tailored and effective global private equity programs.

      Rode has nearly 20 years experience in the private equity market and has held a variety of senior positions, including sourcing, underwriting and portfolio management. Prior to joining Hewitt EnnisKnupp, she was the Senior Managing Director of Funds at GE Capital, where she led the company’s global fund investment activities and co-led the GE Healthymagination fund.

      “As one of the largest investment consulting firms in the world, Hewitt EnnisKnupp is committed to having best-in-class alternative investment consulting capabilities,” said Steve Cummings, chief executive officer of Hewitt EnnisKnupp. “Karen is a seasoned professional who brings hands-on, tangible private equity experience to our team—a quality that’s unique in our industry and highly desirable among our clients. Under her leadership, we’re strengthening our ability to meet client needs and the growing market demand we’re seeing for private equity advisory services.”

      Hewitt EnnisKnupp has been helping clients with private equity services for more than 20 years and serves more than 35 clients with investments in and/or commitments to private equity of $35 billion. The Global Private Equity team has been involved with the deployment of aggregate capital commitments in leveraged buyouts, venture capital special situations, emerging managers, mezzanine, distressed debt, energy and natural resources. It is active in both fund of funds and secondary funds.

      Rode holds an MBA from the University of Chicago and a Bachelor’s degree from Indiana University. She has both her CFA and CPA. She is based in Chicago.

      Source :  Aon Press Release

      0 0

      Before you get stuck into a spot of DIY this weekend, spare a thought for your home insurance. If your attempt at home improving goes wrong, are you covered by your insurance policy?

      A recent survey by the Clydesdale and Yorkshire Bank revealed that home insurance claims for DIY mishaps is a lot more common than many of us may think. They estimate that the cost of claims for DIY misadventures for the last year in the UK is as much as £235 million.

      10% of homeowners questioned as part of the study admitted that they had received a bill of up to £500 to correct a problem they’d created with their home improvement efforts.

      The advice being given by insurers is to consider whether you really have the skills to take on the DIY project you have planned. Your home is the most expensive single item you’ll probably ever buy, so if in doubt, it’s best to get a professional onboard to do the job properly first time round; plus it’ll save you making a claim on your home insurance policy should your home improving not go to plan.

      It’s also advisable to notify your home insurer of any major changes you make to your property.

      The study also revealed a link between DIY ability and age with 50% of under 35’s admitting they can’t even wire a plug, and 65% conceding that their dad is much better at DIY than them.

      Source : Lady Motor Insurance

      0 1

      Back in October 2007, new Aviva employee Mike Matwiejczyk had his training put to the test when he took a call from a customer whose husband was seriously ill. Heather Jewitt, from Dewsbury, called to register a claim on behalf of her husband who had a payment protection policy.

      Mike explains: “Mrs Jewitt was very distressed as her husband David was on life support after suffering a brain haemorrhage. When she called she was in a state of shock, not to mention worried about the financial impact of his illness and how they were going to manage, compounded by the fact that her husband normally handled all their financial matters. Although she was very upset I was able to reassure Mrs Jewitt not to worry about the financial side of things, and that I would look after the claim for her and her husband. To do this I took ownership of the case and, after obtaining consent to speak to Mrs Jewitt on all occasions during the claim, I gave her my personal identification number which she could use to get in contact with me any time she called. It meant that she was able to speak to me direct whenever she had a question or simply needed to talk about her and David’s situation.”

      Mike then talked her through how to fill in her husband’s claim forms step by step. Because Mr Jewitt had a payment protection policy on his credit card, Aviva made monthly payments on his behalf throughout the duration of the claim.

      Mr Jewitt said: “Mike made an instant impact to our lives from the moment Heather spoke to him. What struck her was that when she made that first call he wasn’t interested in the claim – he was more interested in how she was coping, and how I was. He really listened and took care of us in a difficult situation and treated us like people rather than customers.”

      During the claim, to keep Mr and Mrs Jewitt up to date and give them peace of mind, Mike would make regular telephone calls to Mr Jewitt to confirm payments were being made, see how his recovery was going and to ask if there was any further help he could provide, which was reassuring to them in time of crisis. After more than seven months Mr Jewitt had fully recovered and was able to start work again. It was at this point that he wrote a letter to Mike’s team manager, commenting on his compassion and understanding dealing with the claim.

      Here is some footage of Mike and the Jewitts talking about their experience:

        0 0

        Life expectancy is shorter in the United States compared with other wealthy nations because of its health care system — and not obesity, smoking, homicide or vehicle accidents, according to a study out Thursday.

        In 1950, the United States ranked fifth for female life expectancy at birth, with only Australia, the Netherlands, Norway and Sweden doing better, according to the study by Peter Muennig and Sherry Glied of Columbia University, published in the journal Health Affairs.

        But by 1990, the United States fell to 46th in the world for women’s longevity, and by 2010 it ranked 49th for male and female life expectancy combined. Americans are not dying younger — the United States has achieved gains in 15-year survival rates between 1975 and 2005. However other countries have seen greater gains, the study said.

        The researchers compared 15-year survival at age 45 and older, risk factors and per capita health care spending in the United States with Australia, Austria, Belgium, Britain, Canada, France, Germany, Italy, Japan, the Netherlands, Sweden and Switzerland. All the comparison countries have universal health coverage, albeit with very different systems.

        Smoking and obesity, the two most important behavior-related risk factors for health in the United States, were ruled out as culprits in the US drop in the rankings.

        “The prevalence of obesity has grown more slowly in the United States than in other nations while smoking prevalence has declined more rapidly in the United States than in most of the comparison countries,” the study says.

        The number of deaths from homicide and traffic accidents remained stable over time, meaning those two causes of death were ruled also out. So the researchers turned their attention to per capita health care spending. Muennig and Glied found that per capita health spending in the United States increased at nearly twice the rate in other wealthy nations between 1970 and 2002.

        The United States now spends well over twice the median expenditure of industrialized nations on health care, and far more than any other country as a percentage of its gross domestic product, the study found.

        But “the unusually high medical spending is associated with worsening, rather than improving, 15-year survival.”

        That could be because, as health spending rises, “so too does the number of people with inadequate health insurance,” they say in the study.

        High spending on health care could be “choking off public funding on more important life-saving programs,” such as public health and public safety programs, they added.

        And they said Americans’ over-reliance on specialty medical care and the country’s system of unregulated fee-for-service reimbursement may be contributing to high US health spending and leading to unneeded procedures — which in turn could cause complications and lead to more expenses.

        Study authors “speculate that the nature of our health care system — specifically, its reliance on unregulated fee-for-service and specialty care — may explain both the increased spending and the relative deterioration in survival.”

        If so, then meaningful health care reforms may save money over the long term and also also save lives, the authors said.

        Washington, Oct 7, 2010 (AFP)

        0 0

        US state regulators are concerned about pressure to measure up to a standard that has not even been implemented yet, in impending European directive Solvency II. At Reactions’ Risk and Capital Management conference in New York on September 29 panellists said regulators worldwide should work together not “jump through hoops” to be equivalent to Solvency II.

        “Our goal should be for an international standard, not foisting a regional model on companies,” said Kevin McCarty, commissioner of the Florida Office of Insurance Regulation. “Solvency II is a theoretical standard – it is not in place yet. It is difficult to say what effect Solvency II would have, because it is not yet implemented whereas we have 130 years of experience. Our system has been ground up through the years.

        McCarty added: “We have concerns over the emphasis on ERM and internal models for Solvency II. Perhaps the biggest concern is that it was designed prior to the financial crisis, and involves increasing regulatory deference to financial organisations to set capital levels. There is also the risk of political pressure.”

        James Wrynn, New York’s insurance superintendent, stressed the importance of the regulatory changes taking place. He believes that regulators worldwide should be working together more.

        “We are in a very important time. What happens now will be in place for a long time, so we need to get it right,” Wrynn said. “Solvency II is not even implemented. We are being asked to do things in anticipation of something that hasn’t even happened. I think that is the wrong approach. We need to work collaboratively to get an international standard in place. I feel it should be an international system, not a regional system because otherwise you will end up with a world of regional systems.”

        In June, the US was left off a list of leading candidate jurisdictions for Solvency II equivalency by the Committee of European Insurance and Occupational Pensions (Ceiops), which is overseeing the implementation of Solvency II. The US was left out because of the complexity of state regulation and Ceiops’ strained resources. In September, however, Ceiops shifted its view on the US, leaving open the possibility that the US may gain equivalency after further dialogue and investigation.

        Equivalence would allow a country’s companies to trade freely in Europe without having to set up separate companies.

        “The ramifications of being found equivalent or not can be profound,” said Wrynn. “But my real objective over the past year has been to get people to step back and say: ‘Let’s put the best system in place.’ Let’s talk and see how far apart we are. The equivalence thing should be secondary. They may focus initially at the group level but at the end of the day we see the same thing. So is the goal to have the exact same system or is the goal to have the same results in the end? If it is the latter I don’t see how the US system doesn’t be seen as equivalent.

        He continued: “My intent is not to tell you that the US system is the best and Solvency II is the worst. No, we can be improved and Solvency II has many good things, but let’s talk! This is an extremely important time and we should be working together, not jumping through hoops to see if we are equivalent. If you took the US system and placed it over Europe, it would work perfectly with the EU member states. We have the NAIC; whereas they have Ceiops and down the road Eiopa [the European Insurance and Occupational Pensions Authority, a more powerful body that will replace Ceiops].”

        Wrynn conceded that one area the US needs to work on is group supervision. But he pointed out a number of weaknesses in Solvency II.

        “There is a lot that is good in Solvency II, but there is an over-reliance on internal modelling. Do we need to go that far? I don’t think so. Doesn’t the over-reliance on internal models complicate the role for regulators? Do they understand it? And people will game it, the Enrons of the world. There is also regulatory forbearance and regulatory capture, where regulators don’t want to upset a certain company, and regulatory error. People miss things. But in the US we have many eyes looking at things.”

        US regulators concede they need to do more to make people aware that they have a national state-based system. The National Association of Insurance Commissioners (NAIC) is conducting a solvency modernisation initiative (SMI), which is a self-examination of the insurance solvency framework in the US. It is focusing on five areas: capital requirements, international accounting, insurance valuation, reinsurance and group regulatory issues.

        “My message is that regulators and NAIC need to encourage fulsome understanding of the state-based system,” said Elise Liebers, special advisor, insurance markets and international prudential supervision at the NAIC, on the same panel. “We announced the SMI initiative in June 2009 but we approach that from the standpoint that the current system is fundamentally sound.”

        Liebers said the US system had many benefits, such as the checks and balances of more than one regulator looking at things. “The NAIC supports a multijurisdictional approach – more eyes is a good thing,” she said.

        Source : Reactions Net

        1 4

        AXA UK today announces changes to the organisational structure of its general insurance business that allows a sharper market focus and closer alignment to customer needs.

        The restructuring of AXA Insurance follows a strategic review which will see the creation of two self-contained business units – Commercial Lines and Personal Lines – each led by a CEO and their own management teams with direct responsibility for profitability. The CEOs of both businesses will report directly to AXA UK Group CEO Paul Evans and will become members of the AXA UK executive committee.

        The new business model allows for the opportunity to improve efficiency and reduce duplication. The proposed structure will not, therefore require a CEO role at the head of AXA Insurance. Philippe Maso, who has been on secondment to the UK from AXA Group, will therefore step down as CEO.

        Commenting on the changes, AXA UK Group, CEO, Paul Evans said:

        “I would firstly like to thank Philippe for his vast contribution to AXA during his time in the UK and wish him well for the future. Moving to this structure will give our people who are closer to our markets a greater sense of empowerment and accountability which will result in us being better placed to respond to market challenges as well as distributor and customer needs. As our portfolio in the UK is now a number of specialist businesses, this change brings the insurance business in line with the rest of our UK operations.”

        The following changes will also take place with immediate effect:

        – John O’Neil, CEO of AXA Ireland will take responsibility for overseeing the setting up of the new business structure and will lead the commercial lines team on an interim basis while a CEO is recruited

        – Steve Hardy, currently managing director, AXA Direct will take over the new role of CEO personal lines. He will report directly to Paul Evans, AXA UK Group CEO, and joins the AXA UK executive committee

        Source : AXA UK Press Release

        0 0

        Aon Benfield, the world’s premier reinsurance intermediary and capital advisor, today releases the latest edition of its Monthly Cat Recap report, which provides an analysis of worldwide catastrophe events in September.

        Published by the company’s Impact Forecasting team, who evaluate global perils for the re/insurance industry, the report highlights that the month was dominated by multiple tropical cyclones across both the Atlantic and Western Pacific basins and a magnitude-7.0 earthquake in New Zealand.

        In North America, cyclones Earl, Hermine, Karl, Igor, Matthew and Nicole all affected land. In the U.S., Hermine and Nicole provided the largest impacts – primarily in the form of flood damage. With Tropical Storm Hermine, the Insurance Council of Texas reported that at least 25,000 insurance claims were filed by residents, resulting in an insured loss estimate of USD115 million. Moisture from the remnants of Tropical Storm Nicole contributed to bring significant rainfall at the end of the month from southern Florida to New England, with the Carolinas sustaining the brunt of the precipitation.

        Meanwhile, a large wildfire swept across Colorado during the month. According to the Rocky Mountain Insurance Information Association, at least 353 claims were filed in Colorado, with payouts totalling USD217 million − the most expensive wildfire in state history.

        Heavy rainfall from tropical cyclones Karl and Matthew brought continued flooding and landslides throughout Central America, with Mexico sustaining the worst of the damage. Hundreds of thousands of homes were damaged or destroyed across the affected states of Tabasco, Veracruz, Chiapas and Oaxaca, with combined total economic losses in excess of MXN50 billion (USD4 billion). Additional heavy rains also caused substantial flood damage in Nicaragua, Honduras, Guatemala and El Salvador.

        Elsewhere in North America, Hurricane Igor skirted Bermuda before eventually causing widespread damage to Newfoundland and Labrador in Canada. Total combined economic losses from Igor were estimated at nearly USD200 million.

        Steve Jakubowski, President of Impact Forecasting, said: “The 2010 Atlantic hurricane season was forecast to be above normal, and while we have not yet seen a large landfalling insured loss event, the season has been active in terms of sheer activity. Several landfalling storms have caused widespread devastation in Central America, though insurance penetration in these regions remains low. With two months left in the Atlantic hurricane season, and atmospheric indicators still showing favorable conditions for development, we need to continue monitoring the tropics for any possible threats.”

        In New Zealand, a strong magnitude-7.0 earthquake struck on September 4, causing extensive damage across the city of Christchurch and in nearby towns. The New Zealand Earthquake Commission anticipated receiving at least 100,000 claims with insured losses topping NZD2 billion (1.45 billion).

        In Europe, wildfires affected areas of southern Russia, killing least eight people and injuring 17 others. According to the Russian government, more than 550 homes and other structures were destroyed, primarily in villages in the Volgograd region.

        Meanwhile, heavy rains between the 26th and the 28th brought flooding to parts of Germany and Poland, resulting in a state of emergency being declared in Germany.

        In Africa, heavy rains that began in early August reached their peak intensity on the 24th, leaving up to two million people homeless in Nigeria.

        In Asia, multiple cyclones affected parts of China, Taiwan and South Korea. Tropical cyclones Kompasu, Meranti and Fanapi each caused economic losses in the hundreds of millions of dollars (USD). Also during the month, heavy monsoon rains brought significant floods to northern India. Economic losses were listed at INR75 billion (USD1.65 billion).

        Source : Aon Benfield Press Release

        0 1

        ‘You are the Big Picture’ is Aviva’s first global brand campaign, demonstrating Aviva’s commitment to putting customers at the heart of its business. There are three key elements:

        – Landmark buildings across six cities globally will be wrapped in portraits of Aviva customers, employees and partners, highlighting stories that bring to life Aviva’s brand promise of individual recognition

        – One building in each city will be handed over to the public for their own moment of recognition by having their photo projected onto giant screens

        – Aviva will also look at the big picture on the major global financial issues of tomorrow with the Future Prosperity Panel, in partnership with the Economist Intelligence Unit, which convenes for the first time in London today

        The campaign features real stories of the people most important to Aviva – its customers, employees, business partners and communities.

        The campaign begins in October in London, Warsaw, Paris and Singapore, with Delhi and Mumbai following a month later. It will wrap buildings such as Sea Containers House in London and the CNIT building in Paris in simple, powerful images of people at the heart of Aviva’s business.

        With a strong digital and social media component, the campaign will give thousands of people around the world the chance to have their own moment of recognition by having their photo projected onto one of the buildings in the six participating cities.  Any member of the public can have their chance to take part by uploading their photograph at youarethebigpicture.com or facebook.com/aviva.

        For the first 250,000 photos uploaded by members of the public, Aviva will donate £1 per image to Save the Children as part of its global Street to School programme; supporting initiatives that help children living and working on the streets back into education or training.  This is part of a five year commitment to helping 500,000 children worldwide fulfil their potential and to raising awareness about the plight of street children who are largely unrecognised by society. Images of children who are being helped by the programme also feature in the campaign.

        In addition to shining a light on those at the heart of Aviva today, the company is also looking at the big picture on the major global financial issues of tomorrow.  Aviva is delighted to be working with the Economist Intelligence Unit (EIU) to convene today the Future Prosperity Panel; comprising nine leading experts in behaviour change, economics and policy. The panel will be chaired by Philip Coggan, Capital Markets editor, The Economist.

        The panel, which includes renowned thinkers such as Alain de Botton, philosopher and author, Carl Honoré, author and financial expert and Matthew Taylor, chair of the Royal Society for the Encouragement of Arts, will take a different look at the role of individuals, business and policymakers in improving future global prosperity.

        Amanda Mackenzie, Aviva’s chief marketing officer, said: “We know insurance isn’t just about policies and pensions; it’s about people. That’s why we’re making our customers the big picture, putting a spotlight on them and our people. ‘You are the Big Picture’ tells the stories of how we’ve provided help and support to people when they needed it most. Putting customers at the heart of everything we do not only makes sense for them, it makes good commercial sense too.”

        Source : Aviva Press Release

        0 1

        The impact your job title has on the cost of your car insurance may we greater than you think, with certain jobs being labelled as high risk because of factors associated with the profession.

        Professions in law and education such as solicitors, police officers and teachers get an easy ride when it comes to car insurance as they are deemed to hold a position of responsibility and are therefore less likely to take risks behind the wheel.

        Students on the other hand are labelled as high risk because of their lack of responsibility. Age is also a factor for students because, as a rule, students are in their late teens or early 20’s so they don’t have a great deal of driving experience.

        Journalists are also deemed risky by car insurance providers, the reasoning being that reporters spend a great deal of time out on the road chasing up stories. Also there’s the implication that they could have important passengers in their car because of their job.

        Sports stars are also at risk of high premiums as a serious car accident could potentially cause bring an end to a sports person’s career, which would lead to a hefty pay out from the insurer. Electricians and builders will also be hit with high car insurance rates as their vehicles could be a target for thieves if tools are left inside.

        However if you do find yourself in the high risk category because of your work, it’s worth spending an extra few minutes getting a quote for a similar job title within your profession as the cost of car insurance for a person whose job title is broadcaster TV/radio, for example, does work out up to £100 cheaper in some cases than a person who states they are a TV Broadcaster.

        Source : Lady Motor

        Prev1...414243...74Next Page 42 of 74

        POPULAR POST

        Seroni Interactive is an independent publisher of information BtoC and BtoB sites in banking and insurance & specialist digital content. Our productions of brand content possible to affirm your image, positioning, demonstrate your expertise and create a traffic or a hearing and therefore advertising exposure for your brand.
        Contact us: contact@news-insurances.com

        SOCIAL

        34FansLike
        6Subscribers+1
        965FollowersFollow

        Popular category

        © Seroni Interactive