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    Australia’s Qantas Airways extended its ban on flights to and from Europe for another 24 hours on Tuesday, as hopes of a quick resolution to the volcanic ash crisis dwindled.

    The airline cancelled Wednesday’s services and said at least two flights would be grounded on Thursday, citing uncertainty over the situation after Britain warned of a new ash cloud headed from Iceland. The announcement comes despite some European governments re-opening airspace and confidence from the continent’s air traffic control officials that flights would normalise by Thursday.

    Qantas spokesman David Epstein said “things were looking fairly optimistic” during exchanges with London’s Heathrow Airport overnight. “The intention was that they would move to a position where Heathrow would be operating normally over a period of time,” he said. “However, since then of course we’ve had additional volcanic activity in Iceland and it would appear there are further issues to consider,” he said.

    The Australian flag-carrier is losing about 1.5 million Australian dollars (1.4 million US) a day in cancellations, hotel bills for stranded passengers and aircraft parking costs. It has about 10,000 passengers stranded in various locations, including a large number waiting in Singapore. Qantas has cancelled flights in and out of Europe since Friday.

    Travel agency Flight Centre said the impact of the disruptions would be felt for months, and would ensure that fares were driven up as fewer discounted fares would be available as airlines cleared passenger backlogs. “Naturally, this means we will have less availability over the next few months, which typically forces prices up for customers who have not yet booked seats,” chief financial officer Andrew Flannery said.

    The nation’s largest travel insurance provider, Cover-More Travel Insurance Australia, said claims related to the disruptions caused by the volcanic eruptions could top eight million Australian dollars (7.35 million US). “With the magnitude of the disruption of flights we expect claims to exceed eight million dollars, and this number will continue to grow as the period of disruption extends,” chief executive David Ferguson said in a statement Monday.

    Sydney, April 20, 2010 (AFP)

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    Insurance giant AIG may pursue Goldman Sachs on losses from six billion dollars of insurance deals similar to those that prompted recent SEC fraud charges, the Financial Times reported Tuesday.

    The US government-backed insurer, saved from collapse in 2008, lost two billion dollars in the deals on mortgage-backed securities, the financial daily said, citing sources close to the situation.

    The civil suit from the Securities and Exchange Commission involved Goldman deals on subprime mortgage-backed securities, a key contributor to the financial crisis because many contained risky mortgages, the FT reported. AIG’s actions might prompt others to redress their losses on the complex bundles, it said.

    If the insurance firm established that their transactions had had disclosure issues like the SEC allegations, they could file a lawsuit, complain to the SEC, or both, said the daily. Last Friday’s SEC charges against Goldman are thought to be the first against a Wall Street firm for speculating on the collapse of the housing market, still struggling to emerge from the worst financial crisis in decades.

    The investment bank is accused of “defrauding investors by misstating and omitting key facts” in the deals. Earlier this month Goldman Sachs refuted allegations that it had profited improperly from the state rescue of insurance giant AIG. The bank, noting that in the last year its relationships with AIG had attracted much interest, said that it had handled its credit arrangements with AIG in the same way as with other big groups.

    Washington, April 19, 2010 (AFP)

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    Thousands of tourists holidaying in Egypt were stranded at airports across the country on Monday as volcanic ash emanating from Iceland swept through European skies.

    Egyptair cancelled 10 flights from Cairo to western and northern Europe on Monday, an airport official said. Flights to European airports that remained open were reinforced by using larger planes. Popular tourist spots like Sharm el-Sheikh were especially affected, with cancellations of half the flights from the Red Sea resort and 44 from Hurgada and Marsa Alam, the official news agency MENA reported.

    The Egyptian newspaper Al-Masry Al-Youm estimated 17,000 tourists were stranded, a figure the tourism ministry was unable to confirm. “We don’t know how many there are. They are scattered everywhere. We have received figures from 4,000 to 40,000, so the figures are completely unreliable,” ministry spokeswoman Omayma el-Husseini told AFP.

    The arrival of more tourists could exacerbate the problem of placing those already in Egypt, many of whom have been put up in hotels. “We arranged with the tourism ministry and hotels to prolong the stay of all the stranded tourists and the expenses will be dealt with by the insurance companies,” said Khaled el-Menawi, president of the Egyptian Chamber of Tourism Establishments.

    “There is no housing problem because the tourists who were to replace them have not arrived,” he said. Some expatriate associations have asked their communities to take in their stranded compatriots. Around 12.5 million tourists visited the country in 2009, including more than two million from Russia.

    Cairo, April 19, 2010 (AFP)

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    Taiwan’s Waterland Financial Holding announced Monday it will pay 112.5 million US dollars for the acquisition of US insurance giant MetLife’s local unit.

    Waterland, a group with interests in bills brokerage and securities, said the two companies had inked the contract and sent it to the Financial Supervisory Commission, the island’s top industry regulator, for approval. The deal will allow Waterland to control fully MetLife’s Taiwan unit, Waterland said in a statement.

    “Waterland has been stable in maintaining profitability since it was founded, but the operation scale has been limited as our business has focused on short-term bills brokerage and securities trading,” it said. “Although MetLife’s Taiwan unit is small, its operation has been healthy and is exactly an investment target we have been looking for.”

    Waterland, established in 2002 through the merger of three companies, pledged that all the more than 630 employees of MetLife’s Taiwan unit will be retained and the interests of MetLife’s clients unchanged.

    Taipei, April 19, 2010 (AFP)

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    Australia’s competition watchdog Monday rejected National Australia Bank’s proposed 12.2 billion US dollar takeover of AXA Asia Pacific Holdings (AXA), but did not oppose a rival bid by Australia’s AMP.

    The Australian Competition and Consumer Commission (ACCC) said the NAB and AXA merger did not raise concerns in superannuation, insurance and banking, but it could lessen competition. “At the heart of the ACCC’s decisions are concerns about innovation, and as a consequence future rigorous and effective competition between retail investment platforms,” commission chairman Graeme Samuel said.

    “Allowing NAB and AXA to merge would significantly diminish incentives to compete for retail investment platforms used by investors that have complex financial needs,” he said in a statement. The body said a merger between AMP and AXA would not have this effect. “The ACCC concluded that because AMP does not own its own wrap platform it is constrained in its ability to compete aggressively,” Samuel said.

    Sydney, April 19, 2010 (AFP)

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      Hundreds of European backpackers remained stranded in Australia on Monday, many low on funds, as travel mayhem from the Iceland volcano extended right around the globe.

      Many hostels said travellers had extended stays after their flights were cancelled, meaning “additional money to spend at the end of their journey, when they don’t have much any more”, a Sydney Harbour Hostel worker said. English traveller Amy Briggs, 25, said the volcanic ash cloud had brought a chaotic end to her six-month holiday.

      “I was supposed to leave tomorrow on British Airways, but they told me it’s been cancelled. So I have to spend more money to sleep here, and it spoils the end of my trip as I spend hours calling the airline,” she told AFP. Oliver Davies, 29, who was due back for duties with Britain’s Royal Navy on Monday after a two-week holiday, was also left out of pocket.

      “I was due to leave three days ago, but there will be no flights until Wednesday,” he said, while cooking his lunch in the Maze hostel in central Sydney. “I asked my travel insurance, and they won’t cover the costs of the additional nights as it is a natural disaster.” Base Tourism group, which owns hostels in Australia and New Zealand, sent an email to its managers warning of an influx of young travellers left in limbo by the crisis.

      “It is not a big issue for us as it is not the peak season,” a spokesperson said. Some backpackers took the opportunity to enjoy extra time at the beach, taking advantage a spell of warm autumn weather. “There are worse places to be stranded than Sydney,” said Peter Miller, owner of the Great Aussie backpackers hostel.

      However Frenchman Lucas Ferret, 27, found the wait frustrating. “We wish we knew when we can fly. This way, we would be able to visit other places and not be stuck here,” he said. Sydney’s international airport was also largely deserted on Monday as flag-carrier Qantas extended European flight cancellations into Wednesday.

      Sydney, April 19, 2010 (AFP)

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      The financial services industry could learn lessons from the plight of Chilean salmon farmers or US wildfire management, a report backed by senior bank and insurance executives said Friday.

      The World Economic Forum report pointed to Chile’s experience in 2007 after a viral disease virtually wiped out the country’s salmon farms — among the world’s biggest — as an example of how the financial industry could manage risk.

      Others included the World Health Organisation’s global flu alert scale, the aviation industry’s surveillance and action on incident data like near accidents, or medicines testing to root out side effects. “Our goal is to provide food for thought rather than an off-the-shelf solution,” said Axel Lehmann, chief risk officer at Swiss insurer Zurich Financial Services, in a statement.

      “There are vital lessons to learn from these findings, particularly the ones that deviate from the conventional wisdom proffered in our industry,” added Lehmann, one of the heads of the steering committee guiding the report. The report argued that most of the ideas to improve or reform financial risk management in the wake of the collapse of big banks and the slump had come from inside the industry.

      Yet, many other areas of human activity or business have developed “sound practices and successful patterns” to deal with the risks they confront, sometimes after things went destructively wrong, it added. In Chile, the salmon were found to be in densely packed farms, dependent on intensive treatment with similar antibiotics, subject to similar preventive measures and as a result all vulnerable to a single contagious threat.

      The report drew a parallel with the presence of similar business and risk management strategies before the financial crisis. As a result, most financial firms rushed “for the same exit door” when the US sub-prime housing bubble burst and also failed to detect the patterns of a broader systemic failure. Instead the financial services industry should “foster diversity in order to make the system more resilient” and avoid the “emotional comfort” of acting like a herd.

      Geneva, April 16, 2010 (AFP)

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      The US Congress on Thursday passed a two-month extension of unemployment benefits, overcoming Republican opposition that stalled the aid package when the programs expired at the end of March.

      The Senate approved the measure by a 59-38 margin, quickly followed by the US House of Representatives with a 289-112 vote that sent the 18-billion-dollar plan to President Barack Obama to sign into law. “We have a responsibility to make sure out-of-work Americans can still access the vital safety-net programs they need to keep a roof over their heads and food on the table,” said Democratic Senator Max Baucus.

      Baucus, chairman of the Senate Finance Committee, said the US Congress would work “to pass a longer-term solution and create the jobs that will get our economy moving again.” The legislation, estimated to cost 18 billion dollars, also extends a stopgap health insurance program, a small business loan program, satellite television licensing, and national flood insurance.

      Republicans had opposed the measure on grounds that it was not paid for, and would swell the ballooning US deficit. “It is tragic that we are condemning our children and grandchildren to a legacy of higher taxes and a lower standard of living because of these reckless and destructive decisions not to pay for our spending,” said Republican Senator Jim Bunning.

      Democratic Representative Sander Levin, chairman of the powerful House Ways and Means Committee, accused Republicans of trying to score “political points” and forgetting their track record when George W. Bush was president. “They seem to have discovered fiscal responsibility when it comes time to extend unemployment benefits but not when it came to paying for tax cuts for the rich and the Iraq war,” he said.

      Unemployment — and the sour-but-improving US economy generally — are expected to shape the November mid-term elections that will decide control of the US Congress.

      Washington, April 15, 2010 (AFP)

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        A ban on flights through UK-controlled airspace will stay in place until at least 7 a.m. on Friday due to the danger posed by a cloud of volcanic ash.

        A huge ash cloud from an Icelandic volcano turned the skies of northern Europe into a no-fly zone on Thursday, stranding hundreds of thousands of passengers. The European air safety organisation said the disruption, the biggest seen in the region, could last another two days and a leading volcano expert said the ash could present intermittent problems to air traffic for six months if the eruption continued. Even if the disruption is short lived, the financial impact on airlines is likely to be significant, a consultant said.

        The volcano began erupting on Wednesday for the second time in a month from below the Eyjafjallajokull glacier. It hurled a plume of ash six to 11 kilometres (3.8 to 7 miles) into the atmosphere, and this spread south east overnight. Volcanic ash contains tiny particles of glass and pulverised rock which can damage engines and airframes and an Icelandic volcanologist said on Thursday the eruption was growing more intense.

        Britain barred flights in its air space, except in emergencies, until at least 7 a.m. on Friday, with a flight returning soldiers from Afghanistan having to be held in Cyprus. It was the first time “within living memory” that a natural disaster had caused such a halt, a spokeswoman for the National Air Traffic Service (NATS) said. Even after the September 11, 2001 attacks on U.S. cities, Britain did not close its air space, she said.

        London, April 15 (Reuters)

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          The British Insurance Brokers’ Association (BIBA) has issued clarification and advice to travellers affected by the cloud of ash from a volcano in Iceland, which has caused major disruption across the UK’s airports.

          BIBA has confirmed that BIBA Protect travel insurance policies, underwritten by Tokio Marine Europe Insurance Limited and purchased from a BIBA broker, will cover travellers for travel delay, or cancellation after 24 hours. All valid travel delay or cancellation claims caused by the volcanic ash will be met by the BIBA Protect travel insurance policy.

          Graeme Trudgill, BIBA Technical and Corporate Affairs Executive, said: “In many circumstances your travel agent or tour operator will simply make alternative arrangements but if you have booked independently you should speak to your insurance broker who can advise you during these unusual circumstances. We are confident that all volcanic ash claims under the BIBA policy will be met.”

          Steve Foulsham, BIBA Technical Services Manager, added: “Not all insurance policies are the same and travellers are urged to contact their insurance provider to clarify their specific policy coverage as not all insurers will necessarily cover this. Of course disinclination to travel would not be covered.” BIBA has clarified that travel insurance is normally transferable to any new travel plans and that travellers should speak to their insurance broker.

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          The economic recession has barely dented global usage of electricity in the long term leaving both power generators and their insurers having to cope with major rises in demand for their products over the next 20 years.

          This was the prognosis from Dr Robert P. Hartwig, President of the Insurance Information Institute, as he spoke at an AEGIS London-hosted energy conference in Prague yesterday. Global energy consumption in 20 years’ time will only be impacted by the recent financial crisis to the tune of 2%, Dr Hartwig said.

          Addressing the issue of the economics of the global property and casualty insurance industry in relation to energy, Dr Hartwig argued that rising demand for energy, fuelled in part by the development of economies like China and India, was driving the need for unprecedented levels of investment in global power generation infrastructure.

          Dr Hartwig put the investment bill for Europe alone over the next 20 years at US$1.351 trillion. Most of this money, he said, would be spent on power generation and distribution, with power transmission as the third priority. This will, according to Dr Hartwig, mean significant demand for energy insurance.

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          Swiss Re announced on April 15 the launch of an enhanced version of Magnum, its automated life and health underwriting system.

          This innovative solution enables Swiss Re’s Life & Health clients to take underwriting decisions on an automated basis without referring to an underwriter. This saves time and money and improves customer relationships. Magnum provides full access to Swiss Re’s leading underwriting expertise,and gives life insurers the strategic information they need to grow their risk business profitably.

          Says Christian Mumenthaler, Swiss Re’s Head of Life & Health: “The need for life insurers to use fast technological solutions is essential to ensuring that consumers can buy protection cover quickly and efficiently. Magnum helps our clients to turn risk into profitable growth, giving them an advantage in an increasingly competitive environment.” With more than 15 years of development and primary insurers in 16 countries using Magnum to assess new applications for life, critical illness and disability insurance, the system already processes more than 1.5 million policies every year.

          Several insurance companies have already opted to use Swiss Re’s enhanced automated underwriting system. Milton Jennings, CEO of Fidelity Life in New Zealand, said: “We need an underwriting solution that helps us compete in the demanding independent financial adviser market. After considering other offerings, we chose Magnum partly because it will get more business on the books, faster and more cost-effectively. It’s also scalable in line with our business needs and those of our distributors.” Paul Hately, Swiss Re’s global Head of Magnum, added: “We are delighted to add Fidelity to our client list and are pleased with our advanced pipeline for further new Magnum implementations in continental Europe, Asia and the UK. Customers chose Magnum to gain access to Swiss Re’s team of experts – people who can support them in reviewing and interpreting their data. This goes well beyond the analysis typically available from a traditional software provider.”

          Swiss Re has enhanced Magnum in order to provide its life insurance clients with a detailed view on how their underwriting performance compares with market trends. In turn, this helps to improve performance across a range of underwriting methods and distribution channels as well as to develop new products and reduce costs. According to Swiss Re’s research publication Underwriting Watch 2009, Magnum clients enjoy the highest level of point-of-sale acceptance rates compared with other systems available in the market. In the UK, Magnum clients have been able to raise decisions taken without referral to well over 70% of the total. This compares to the market norm of 40%. The new Magnum provides Swiss Re’s clients with better workflow efficiency and allows for higher acceptances of underwriting decisions at the frontline.

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            A strong earthquake and aftershocks rattled northwestern China’s Qinghai Province over the last 15 hours, killing at least 400 and injuring over 10,000, according to Xinhua. At least 18 aftershocks have hit the region since the main tremor.

            The quake was measured by the USGS at magnitude-6.9 with at least three aftershocks of at least magnitude-5.0, the strongest being magnitude-5.8. The tremor was centered ten kilometers (6.2 miles) below the earth’s surface and located 375 kilometers (235 miles) south-southeast of Golmud, China, or 1,905 kilometers (1,190 miles) west-southwest of Beijing, China. The epicenter occurred at the Rima Village in the Shanglaxiu Township, deemed as mainly pasture land and sparcely populated. The main quake occurred around 7:49 am local time Wednesday (6:49 pm central time Tuesday) with aftershocks following for many hours after. The USGS stated that at least 17,000 people were subjected to Modified Mercalli Intensity (MMI) values between VII, which equates to very strong shaking, and X, extreme shaking.

            According to Xinhua News, the quake has toppled houses, temples, several schools and gas stations, and the tremor has affected infrastructure by toppling power poles, damaging roads, causing landslides and disrupting communications. Additionally, officials report that a reservoir was cracked by the quake, and officials are currently trying to prevent further damage by leaking water. Gyegu, the seat of Tibetan Autonomous Prefecture of Yushu prefecture with a population of 100,000 and is also known as Jiegu, received the heaviest amount of damage. Officials in Yushu have said that over 85 percent of the homes in Gyegu, primarily made of wood and earth, had been destroyed. They believe that many people were trapped under the rubble of their homes.

            Weather conditions in the coming days may hamper rescue and cleanup efforts, which are being conducted by local military personnel, the China Earthquake Administration, the Red Cross Society of China and surrounding provincial officials. Officials believe that the death toll will increase due to the number of collapsed homes and buildings. The nearest airport, the Batang airport, was damaged by the quake. The Civil Aviation Administration of China was urging local officials to dispatch relief supplies and personnel to the airport to allow it to reopen as soon as possible. The airport was around 30 kilometers (19 miles) away from the epicenter of the tremor. The last devastating earthquake experienced in the region was May 12, 2008, when a magnitude-7.9 earthquake killed over 87,000 people in neighboring Sichuan.

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            The British Insurance Brokers’ Association (BIBA) has launched a new publication to provide clarification to brokers on the issue of limitation of liability when advising clients.

            The new publication entitled “Facts about limitation of liability” was driven by BIBA’s London Market Region Committee (LMRC) and aims to help brokers to manage their financial risk and ensure that it is proportionate to client engagement. Legal opinion was sought from Lawyers Beachcroft LLP in order to produce the publication which provides background on the regulatory and legal position, information on what a limitation of liability clause or agreement might contain and what it should not contain.

            The publication is the first major piece of work to emerge from BIBA’s LMRC, which is chaired by Ken Davidson from BIBA member Crispin Speers and Partners. LMRC set a major objective in its 2010 business plan to achieve greater clarification on the practice that many brokers, and other professions, already undertake. Ken Davidson said: “This is a very complicated subject fraught with potential pitfalls for brokers, with both legal and regulatory restrictions. We have sought legal opinion and I’m delighted that LMRC has been able to drive this forward and has really hit the ground running.” Amanda Blanc, Towergate Deputy Group Chief Executive Officer, added: “It’s about time there was clarity on this subject. This is really about brokers putting their own risk management advice into practice whilst still providing their clients with a good level of protection.”
            Tim Coles, Chief Executive of Howden Insurance Brokers and BIBA LMRC member, commented: “This demonstrates the value of BIBA to its members and to the industry as a whole; it’s the first document of its kind and should allow brokers to understand the legal, ethical and financial risks that are faced when advising a client.” Vannessa Young, BIBA London Market Region Secretariat, concluded: “This important LMRC document is in direct response to members concerns on a key subject that they need to adhere to from a regulatory and legal perspective and will be managed as part of BIBA’s Professional Indemnity Initiative.” As part of the BIBA Professional Indemnity Initiative, there are three BIBA accredited brokers who can help members with issues raised in this document – Lockton Companies International Limited, Towergate Partnership Limited and Howden Insurance Brokers Limited.

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            Commercial lines underwriting specialist Arista Insurance announced today that the company has hired an underwriter with more than three decades experience to help expand its Midlands operation.

            Gavin Benson joins with immediate effect as senior underwriter and will be based at Arista’s Birmingham office. Previously he worked for NIG as the key account manager responsible for national relationships with the Brokerbility Group. As well as underwriting new and existing Arista business in the Midlands Gavin will be particularly focussed on growth and development in the East Midlands. To date Arista has established a strong presence in the West Midlands and Gavin’s knowledge of the area and relationships in the East Midlands are of strategic importance to its continued expansion across the region. In addition to NIG, much of Gavin’s 31 years’ insurance experience were gained at Avon Insurance; latterly as senior underwriter in Leicester; prior to that in Wellingborough and Newcastle in both claims and underwriting.

            Commenting on the appointment, Charles Earle, chief executive said: “We are extremely pleased to welcome someone of Gavin’s proven ability and long track record of experience to Arista. Attracting high calibre staff is essential for any business to make progress and Gavin is an ideal strategic fit to help Arista broaden its Midland’s footprint even further.” Arista currently services over 300 brokers from its network of regional branches in London, St Albans, Bristol, Southampton, Redhill, Manchester and Birmingham.

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            Sterling Insurance Company announced on Monday Kevin Donoghue appointment to a newly created position, Head of Commercial Underwriting.

            Kevin will be responsible for developing and managing the underwriting strategy and providing strategic leadership to the underwriting teams. Kevin will report directly to David Sweeney, Director – General Insurance. David Sweeney said: “Kevin has worked in the insurance industry for over 30 years and will bring a wealth of experience. His longevity within the industry will be a real benefit when developing business opportunities and key broker relationships.”

            “The Head of Commercial Underwriting role has been created to help us in our ambition to increase volumes by providing brokers with excellent products (as seen with the launch of the new Executive Business product) and access to quality people who can help them secure new business. We have appointed Kevin to help manage the business and to ensure that with this growth we do not jeopardise our excellent service and profitability.” Kevin joins Sterling from AXA Insurance where he spent the last 9 years. At AXA, he was Area Underwriting Manager for London and the South East and is an Associate of the Chartered Insurance Institute.

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              XL Insurance, the global insurance operations of XL Capital Ltd (NYSE: XL), today announced the launch of its new Dublin based underwriting operation for Middle Market Casualty business. As part of this move, Michael Cronin has been appointed Regional Manager – Middle Markets Ireland.

              Mr. Cronin has 23 years’ of insurance industry experience, most recently as Managing Director of Cronin Insurance Brokers. Prior to this he was Head of Construction Underwriting at Zurich Insurance in Ireland, having joined from Liberty International’s Casualty Department in 2006. His initial underwriting focus will be on Primary Casualty and Contractors All Risks (CAR) cover, targeted at the mid-market sector of Irish Business, which will be written via XL Insurance’s Lloyd’s Syndicate #1209.

              Denis Burniston, Chief Underwriting Officer Middle Markets UK & Ireland at XL Insurance, said: “This is the first step in building our Irish Middle Market operation, meeting the growing demand for risk managed insurance solutions and access to the Lloyd’s market. We believe that a local underwriting presence will be able to better serve the Irish Primary Casualty market and are looking to grow this operation over time.”
              David Gallagher, Country Manager Ireland for XL Insurance commented: “We are delighted to be able to appoint such an experienced underwriter to our new Dublin Primary Casualty operation. Michael is well known in the local broking community and will build on XL Insurance’s reputation for service and claims excellence. This development underlines our on-going commitment to the growth of our business in the Irish Market”.

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              A European Commission ruling that Philippine airlines are unsafe has dealt a major blow to the tourism sector, the Southeast Asian nation’s tourism minister said in comments published Friday.

              Tour packages from Europe are being cancelled even though no Philippine carrier flies to Europe, Joseph Durano said, according to Business Mirror’s and ABS-CBN television network’s websites. “Major European travel operators from Germany, the UK and France have regretfully informed us of their booking cancellations. The entire industry is affected,” Durano said.

              The European Commission banned from April 1 all Philippine carriers from flying to the 27-nation bloc due to concerns about local aviation safety standards. Philippine carriers have not been flying to EU member-states since 1999. However, the EU ban prompted European insurance companies to advise travel operators that packages to the Philippines — which include inter-island air travel — will not be covered by travel insurance.

              Many tour groups scheduled from April to August have been cancelled while other bookings are on hold to see if the European Union will maintain its ban on the Philippines after an inspection scheduled in May. “The longer we remain on the blacklist the harder it will be for us to recover from these significant losses,” Durano said.

              Durano urged local aviation officials to address the issue quickly so that tour packages expected later in the year might still go ahead. Local civil aviation and airline officials have insisted that Philippine carriers are safe. They are hoping next month’s inspection by the European air safety committee will reverse the ban. Durano was not available for further comment on Friday, a public holiday in the Philippines.

              Manilla, April 9, 2010 (AFP)

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                Aviva said on Friday it will re-enter Asia’s general insurance business with the launch of services in Singapore, one month after rival Prudential bought the Asian unit of AIG.

                “Aviva today announced it has re-entered Singapore’s general insurance market and stated its intent on rolling out the business in key markets in Asia,” the company said in a statement. “Starting with direct online car insurance, the company will gradually increase its portfolio of products to include home and travel insurance.”

                The group had withdrawn from the Asian general insurance market five years ago, selling its regional non-life insurance business in 2005 to Japan’s Sumitomo Mitsui, but retained its life insurance operations. Aviva, Britain’s second-biggest insurance group after Prudential by stock market capitalisation had stated last month that it would seek growth in Europe, in contrast Prudential which is chasing rapid expansion in Asia.

                However, Simon Machell, chief executive of Aviva Asia Pacific, said Friday that Singapore will serve as a launch pad for the group in the region. “Our entry into Singapore marks the first step in our plan to penetrate the rapidly expanding general insurance market in Asia,” Machell said. “The rising affluence of Asian consumers has led to an increasing need to insure their growing assets. Our online model enables us to pass on significant cost savings along with greater convenience and flexibility.”

                At the start of March, Prudential agreed to buy AIA, the Asian arm of US insurance giant AIG, for 35.5 billion dollars (26 billion euros) in a takeover that will make it southeast Asia’s biggest insurer. The cash-and-shares deal, which will see the Prudential double its market value, was masterminded by Chief Executive Tidjane Thiam and marks the insurance industry’s biggest ever acquisition.

                London, April 9, 2010 (AFP)

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

                Published by the company’s Impact Forecasting team, who evaluate global perils for the re/insurance industry, the report highlights that severe thunderstorms and flooding caused damage in Australia and the United States during the month. While the Chilean earthquake that struck on February 27th continued to dominate global news agendas, numerous other catastrophes occurred across the globe, including more than 10 instances of severe flooding and tropical storms.

                Steve Jakubowski, President of Impact Forecasting, said: “Following significant levels of catastrophe activity in the first two months of the year, March proceeded in the same vein with key economic regions being affected by heavy, prolonged periods of rain which caused widespread disruption and considerable economic and insured loss. These events round off one of the costliest ever first quarters for the re/insurance industry, during which individuals, communities and businesses have been severely, and often devastatingly impacted.”

                In the U.S., a slow-moving “Nor’easter” brought days of heavy rains and gusty winds across the Mid-Atlantic States and the Northeast between March 12th and 16th. At least 11 people died due to storm-related accidents and damages were estimated at an initial USD25 million. River flooding in the Northern Plains between the 13th and the 22nd caused at least USD14.7 million in losses in Minnesota. At least 15 tornadoes touched down in the Carolinas and Florida on the 28th and 29th, causing at least USD4.4 million in damages.

                A series of severe thunderstorms crossed the Australian state of Victoria on the 6th, bringing large hail up to tennis ball-size, high winds, lightning and flooding across the Melbourne area, causing economic and insured losses of more than AUD1 billion (USD910 million). In Western Australia, a cluster of severe thunderstorms struck the greater Perth metropolitan area on March 22nd, causing over AUD650 million (USD598 million) in damages.

                In other catastrophe news, at least 86 people died after flooding and landslides damaged and destroyed villages in eastern portions of Uganda on March 2nd. Local markets were destroyed, many homes and some villages were buried by landslides and numerous roads were blocked. Heavy rains between the 6th and 12th killed at least 20 people in Kenya, Mozambique and Uganda. Tropical Storm Hubert made landfall on Madagascar’s eastern coast on the 10th, killing at least 83 people and damaging at least 7,000 structures.

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