Friday, November 29, 2024
Home Authors Posts by John Stewart

John Stewart

Profile photo of John Stewart
3387 POSTS 0 COMMENTS
http://www.news-insurances.com

0 1

Fitch Ratings has assigned Societe de Financement Local (SFIL) Long-term local and foreign currency ratings of ‘AA+’ and a Short-term foreign currency rating of ‘F1+’. The Negative Outlook mirrors that on France’s ratings (‘AAA’/Negative/’F1+’).

RATING RATIONALE The ratings reflect the strong commitment of support from the French state to SFIL as its majority and reference shareholder (75% of capital), and due to SFIL’s high strategic interest as an essential funding source for the French public sector.

SFIL, which was fully created on 31st January 2013, is considered a “development bank” by the European Commission (EC) as it aims to address a structural market deficiency regarding the funding of the French local public sector. Considering the political and economic importance of the French local authorities, Fitch believes SFIL will remain a highly strategic asset for the state.

The state does not guarantee SFIL but has explicitly pledged its full support to SFIL or its subsidiary Caisse Francaise de Financement Local, a covered bond issuer formerly known as Dexia Municipal Agency. The state’s ability to bring support is underpinned by SFIL’s status as a “development bank”, which allows direct state capital intervention under European state aid regulations.

Fitch considers that the state is the only entity able and willing to ensure the long-term viability of SFIL’s business model and its potential capital needs, notably with regards to potential losses stemming from existing loans portfolio. Therefore we consider SFIL a state-dependent entity and notch down its ratings from those of France.

The state will tightly control SFIL’s administrative board, as all important decisions will require its approval as majority shareholder. The possible gradual sale of state shares to La Banque Postale (LBP, ‘AA-‘/Negative/’F1+’) in the medium term could slightly dilute the state’s control of the board’s decisions.

Long-term compliance with the business model approved by the EC conditions the applicability of the “development bank” status and the state’s leeway in terms of support.

SFIL is not expected to originate loans, but will provide middle and back-office services for loans originated by a joint venture (JV) between Caisse des depots et consignations (CDC, ‘AAA’/Negative/’F1+’) and LBP. Caisse Francaise de Financement Local will refinance loans originated by the JV if the loans comply with SFIL’s lending policy and asset liability management. Loans extended by SFIL will be limited to plain vanilla long term loans to local authorities and public hospitals.

SFIL expects its regulatory Tier 1 ratio, consolidated with Caisse Francaise de Financement Local, to reach a high 23%, which would increase to 26% in the medium term.

With 20% and 5% of SFIL’s capital, respectively, CDC and LBP are committed to providing long- and short-term funding at market rates. Cumulated funding from CDC is capped at EUR12.5bn, while LBP will provide liquidity support in proportion with its share of newly-originated loans.

RATING SENSITIVITIES The ratings could be downgraded if we perceived a weakening of potential support from the state. A downgrade of France would also be reflected in SFIL’s ratings.

KEY ASSUMPTIONS SFIL’s ratings depend on those of France, which are based on some key assumptions regarding macroeconomic and budgetary performance, notably Fitch forecast of 0.3% GDP growth in 2013, 1.1% in 2014 and 1.6% until 2016.

The rating is potentially sensitive to policy actions that would materially increase public debt and/or contingent liabilities as a result of state intervention in the domestic economy and industry.

The difference with the government’s forecast of 0.8% growth in 2013 rising to 2% in 2014 largely accounts for the higher general government gross debt (GGGD) to GDP ratio projected by Fitch compared to official projections. Fitch expects GGGD to GDP to peak at 94% in 2014 and gradually decline thereafter to 89% by 2017 while the government projects a peak of 91.3% in 2013 declining to 82.9% by 2017.

Fitch assumes that commitments made by eurozone policymakers at recent summits, including the creation of a single supervisory mechanism for European banks will be implemented. The agency also assumes that the risk of fragmentation of the eurozone remains low and is not incorporated into Fitch’s current rating of France, although Fitch’s ‘CCC’ rating of Greece does reflect a material risk of Greek exit from EMU over the new few years.

France’s ratings also incorporate Fitch’s assumption that the government will adhere to its commitments under the Stability and Growth Pact, Fiscal Compact and as set out in its Multiyear Public Financing Plan.

A significant weakening of France’s financial profile would likely undermine its ability to provide support to its dependent entities. Therefore, under Fitch’s rating criteria on public sector entities outside the US, this could potentially justify a further notching down of SFIL’s ratings from those of France, up to a total of three notches.

The ratings also factor in the possible gradual sale of state-owned shares to LBP, which would ultimately bring the state’s shareholding to 47%, and would not affect the likelihood of state support in Fitch’s view.

0 0

QBE has launched CreditFlex, a top up commercial credit insurance facility that operates above an existing, non-QBE, primary whole-turnover policy.

Designed for clients domiciled in Continental Europe who are trading in their home and OECD markets, CreditFlex supports businesses in circumstances where the level of cover provided by their primary insurer is considered insufficient. With the potential to secure additional cover, up to 100% of the value of their underlying primary limit, clients can manage their business confident that adequate credit insurance cover will be in place for selected buyers across their ledger.

Clients can select the buyers they require the supplementary cover on without any obligation to insure all their sales above their underlying whole turnover policy.  In addition, because clients pay premium only on the value of positive limits that are written during the policy period, CreditFlex allows them to maximise the sales they have insured while minimising the cost of doing so.

CreditFlex is the result of a partnership between QBE and Tinubu Square in Belgium. Under the partnership, CreditFlex policies are underwritten by QBE’s specialist trade credit team and Tinubu provides all policy management services through its bespoke online system.

Trevor Williams, Head of Credit & Surety Europe at QBE said: “In discussions with brokers, it became clear that businesses do need cover for certain exposures, beyond the limits that they can obtain through their existing credit insurance provider.  It therefore made sense for QBE to use its experience of top-up products in Europe and to leverage its capabilities to underwrite these risks and respond to the market’s needs.  We’ve designed CreditFlex to be a straightforward, responsive online solution. Clients pay for what they use and can select which risks they apply for, in the knowledge that this additional cover is provided by an A+ rated leading European credit insurer.”

0 0

The European Insurance and Occupational Pensions Authority (EIOPA) launched on 28 January 2013 a technical assessment of the long-term guarantee (LTG) package agreed by the Trilogue parties (the European Parliament, the Council of the EU and the European Commission) in the context of the Omnibus II Directive negotiations.

Its aim is to test various options contained in the Solvency II LTG measures in order to assess the effects that the implementation of such measures may have on: policyholders and beneficiaries, insurance and reinsurance undertakings, supervisory authorities and the financial system as a whole.

The assessment will focus on the evaluation of the following key features (individually and in combination): adapted relevant risk-free interest rate term structure (“Counter-cyclical Premium”); extrapolation; matching adjustment (“Classic” and “Extended”); transitional measures; and extension of the “Recovery Period”.

In providing quantitative data for the purposes of this assessment, insurance undertakings should follow the Technical Specifications published today by EIOPA:

– https://eiopa.europa.eu/consultations/qis/insurance/long-term-guarantees-assessment/index.html

Insurance undertakings will have until 31 March 2013 to carry out their estimation of the impact of the measures covered in the LTGA. In the course of April and May the data submitted by insurance undertakings will, first, be validated by the national competent authorities (NCAs) and, then, be analysed by EIOPA at the EU level. The report presenting the technical results of the LTGA exercise together with EIOPA’s conclusions is planned to be published in the second half of June 2013.

The assessment covers life as well as non-life insurance companies in the different national markets. The sample captures a range of undertakings of diverse size and nature.

Gabriel Bernardino, Chairman of EIOPA, said: “EIOPA’s independent supervisory assessment will provide a reliable basis for an informed political decision on the long term guarantee measures to be included in Solvency II. It is essential for policyholder protection and financial stability that Solvency II appropriately reflects the long term financial position and risk exposure of insurance and reinsurance undertakings carrying out insurance business of a long-term nature.”

0 2

Reputation and loss of brand value remain top concerns of large UK companies according to the Allianz Risk Barometer 2013. The concern relates to the rise in popularity of social media, with phenomena such as viral messaging and re-tweeting allowing negative comments to spread globally, regardless of merit, within very short time frames. However, priorities change with mid size enterprises which are more concerned about the availability of credit, with loss of brand value less of an issue.

One particular concern unites companies around the world: their operations come to a standstill due to force majeure. Business and supply chain interruption, natural disasters and fire and explosion are the key risks faced by companies globally, with regulatory or market-related changes also highlighted in the report.

In the UK concern about reputation ranked more highly than other territories in the survey as globally, damage to reputation ranked in 10th place. In 2012 the strength of concern about reputation in the UK prompted development of the Reputation Protect policy by Allianz Global Corporate & Specialty (AGCS), the Allianz Group’s center for corporate and industrial insurance.

The top ten concerns of businesses globally rank as follows:

– Business interruption, supply chain risk

– Natural catastrophes such as storm, flood, earthquake

– Fire, explosion

– Changes in legislation

– Intensified competition

– Quality deficiencies, serial defects

– Market fluctuations e.g. exchange or interest rates

– Market stagnation or decline

– Eurozone breakdown

– Loss of reputation or brand value

The Allianz Risk Barometer 2013 survey, conducted by AGCS, gathered opinions from 529 corporate and industrial insurance experts from across the Allianz Group on the most important risks that companies, in particular regions and sectors, face in 2013.

Companies are poorly prepared for IT failures and power outages

According to the research, while many businesses are ensuring they are fully protected against the risks they class as serious they are simultaneously underestimating others. For example, IT failures – whether self-inflicted by human error or due to cyber crime – can entail high economic losses in an increasingly digitized economy. Nonetheless, just six percent of Allianz experts think that their clients are really aware of this risk. Similarly, the risk of supra-regional power blackouts features on few companies’ risk radar. “Reliability of power supply will decrease in the future due to aging infrastructure and the lack of substantial investments,” explains Michael Bruch, Head of R&D Risk Consulting. If a blackout occurs, the impacts are much higher today than 10 to 15 years ago due to the high dependence on information and communication technologies and the lack of preparedness on the part of businesses.

Clement B. Booth, Member of the Board of Management of Allianz SE commented: “Allianz has been a reliable partner to businesses all over the world for many years. We have in-depth knowledge about the risks that businesses face and we also know which issues they may be underestimating.”

Axel Theis, CEO of AGCS added: “Today’s global companies operate in a complex risk landscape that features traditional risks such as fire as well as ultra-modern risks like supply chain interruptions and cyber crime.”

Losses caused by natural disasters on the rise

In many cases, business interruption is caused by natural disasters, the second-largest business risk (44 percent of responses). Although 2012 was a relatively moderate year for natural catastrophes – with the exception of Hurricane Sandy – this is no reason to sound the all-clear: “Insurance claims caused by natural disasters have risen 15-fold over the past 30 years. And they will continue to grow because of the increase in insured assets in Asia, in particular, and the ongoing shift towards development in high-risk coastal regions,” explains Markus Stowasser, meteorologist at Allianz Re. Europe, too, can expect more frequent local weather extremes such as heavy rainfall.

One “age-old risk” features surprisingly prominently on corporate agendas: fire and explosion was named as the third-most important global business risk. Fires are relatively rare, but can cause high property and business interruption claims especially in manufacturing industries. AGCS’s loss statistics speak for themselves: Of seven large industrial property losses exceeding 10 million euros each in 2012, six were caused by fire. “Companies shouldn’t compromise on high fire protection standards due to economic pressure,” stresses Paul Carter, Global Head of Risk Consulting at AGCS.

0 0

In advance of European Privacy and Data Protection Day on 28th January, new research from Iron Mountain reveals that more than half of UK businesses expect to lose data. The information storage and management company found that the majority of businesses remain unprepared to accept the greater responsibility that the EU wants them to assume to protect the information of European citizens.

A year has passed since the publication of the European Commission’s draft revision to data protection legislation, which includes fines of up to one million Euros or two per cent of annual revenue for a data breach. However, these penalties appear to have had little effect on most firms. Two-thirds (66.7 per cent) of UK respondents to the Iron Mountain survey stated that the threat of fines was having little impact on their company’s data protection policies to protect sensitive information.

Despite this claim, 84 per cent of UK survey respondents either have insured or are looking at insuring their business against the financial impact of a data breach. Commenting on the survey findings, Christian Toon, head of information risk at Iron Mountain Europe said, “The fact that more than half of European organisations see data loss as an inevitability is worrying. It illustrates that businesses of all sizes are failing to take appropriate steps to protect information. It seems many would rather insure against the cost of a breach than take steps to prevent it.

“By thoroughly understanding the risks to both paper documents and digital data, and by developing a culture of information responsibility, or what people are calling “Corporate Information Responsibility”, firms can protect against data loss and restrict the impact of any breach to a minimum.”

European Privacy and Data Protection Day on Jan. 28 aims to draw attention to the importance of privacy and data protection. To support the day, PwC and Iron Mountain have launched an online tool to help businesses assess their exposure to information risk. The tool allows businesses to assess where they sit on the Information Risk Maturity Index, which represents a balanced approach to preventing information risk, including measures that evaluate strategy, people, communications and security. The Index is based on a set of indicators that, if put in place and frequently monitored, will help protect the digital and paper information held by an organisation.

0 9

KPMG has warned that the insurance industry could face further delays to the Solvency II timeline after the launch of today’s long-term guarantees assessment impact study. 

Following agreement of the terms of reference by the European Parliament, the Council and the Commission, European Insurance and Occupational Pensions Authority (‘EIOPA’)  has today launched the long-term guarantee impact study.  This study will test the application of Solvency II to products with attaching long-term guarantees.  Although predominantly a life assurance issue, this also affects general insurance products that have similar features, and the study considers the application to both sectors.

Peter Ott, European Head of Solvency II at KPMG, welcomed the launch of the study – but expressed concern over the timing of the exercise.

“Nine weeks to complete such a critical study is not long, especially when that period coincides with the key financial reporting period.  This will put a lot of pressure on resources for those insurers that are participating. Given the delays in issuing the full specifications, significant time will be spent in the first few weeks assessing the detail required before the numerical assessment can even commence.”

There are 13 scenarios set out in the study covering each of the areas being assessed (matching adjustment, extended matching adjustment, extrapolation of interest rates, countercyclical premium and transitional measures) and these are considered at three dates (31 December 2011, 2009 and 2004). The first part of the technical specifications was issued in October and revised shortly before Christmas.  However the key elements relating to the calculation of insurance technical provisions and the capital required for the affected contracts was only launched today.

Janine Hawes, insurance director at KPMG, commented: “The late release of the full requirements has limited the amount of preparation that firms have been able to do in advance of today’s launch, so detailed planning now is likely to be the key to successfully completing both the study and the year-end accounts.

“Completing all scenarios to the level required will require significant dedicated resources.  Where firms have only limited resources available to support the work, they will need to determine how best to meet the requirements of the study.  In some instances, they may decide to employ external resources to assist them, either directly in the study or to backfill other roles.  Others may decide to adopt simplifications or perhaps not to cover every scenario required.

“Simplifications or reduced participation levels will impact on the final results.  If Solvency II is to end up in a position that is viable for the [UK] insurance market, then results need to be representative of the market.  It is not clear that this will be the case if a range of potentially inconsistent approaches is adopted within a market.  Firms will need to clearly articulate the approach taken and explain in the narrative responses the practical issues they encountered during the exercise as well as the solvency impacts of these.  EIOPA will need as much information as possible to enable it to suggest a way forward.”

KPMG warns that the time required for EIOPA to produce its report, expected in the second half of June, could itself result in further delays to the Solvency II timeline.

Janine Hawes, insurance director at KPMG, concluded: “The European Parliament plenary vote on Omnibus 2 was pushed back to accommodate this study and is currently scheduled for 10 June.  However, it seems unrealistic to assume that a mutually acceptable solution to the long-term guarantees issues, as well as all remaining outstanding differences on Omnibus 2, will be fully resolved in the trilogue process before that date.  We are expecting that this vote will be further delayed until after the summer recess, with a second ‘quick fix’ directive required to amend the implementation date.”

0 2

AXA Business Insurance study reveals that van drivers who drive both a van and another vehicle are more likely to commit traffic offences and have accidents in their van than their other vehicle.

Research among several hundred van drivers found that they appear to become more irresponsible when behind the wheel of their van than when in charge of another vehicle. When driving their van, drivers were 25% more likely to have picked up a speeding ticket in the last three years and were 38% more likely to have committed a drink driving offence.  Around 29% more had been caught reckless driving while the number caught running a red light in their van compared with their other vehicle was a massive 47% greater.

In addition to this, the data showed that of those that drive both a van and another vehicle, around 16% had had an accident in their other vehicle in the last three years, but this figure climbed by 25% to 20% who had had an accident in their van.

Of those surveyed, nearly half (47%) owned the vans themselves and 38% said they preferred to drive their van to their other vehicle.  Interestingly those who owned their van were more likely to have had an accident than those who didn’t.

Van drivers tend to update their vans slightly more often, with 58% updating their vans at least every 3 years compared to 54% updating their other vehicles so regularly. This probably reflects the disparity in miles covered, since van drivers spent an average of 15.6 hours behind the wheel of their van each week, compared to just 8.7 hours driving their secondary vehicle.

Darrell Sansom, Managing Director at AXA Business Insurance commented: “It’s interesting to see the apparent difference between the way people drive their van and their other vehicles.  There are clearly many factors that may influence the number of accidents and traffic offences committed such as numbers of hours behind the wheel, the miles covered and the often stressful nature of driving a van to get to jobs on time.  But we were surprised to see such big differences in some areas and would encourage van drivers to think carefully about how they drive before they commit an offence or get involved in an accident that keeps them off the road and as a result takes away their livelihood.”

0 0

Fitch Ratings says its outlook for the global reinsurance sector remains stable, as capital, underwriting and operating trends are expected to support reinsurers’ current ratings over the next one to two years. Fitch anticipates further strengthening of the sector’s already-strong capitalisation and continued premium growth into 2013.

“While 2012 earnings are likely to improve, low investment yields and questions over the sustainability of prior-year reserve surpluses will make it more challenging for reinsurers to maintain profitability levels in 2013,” says Chris Waterman, Managing Director in Fitch’s EMEA Insurance rating group.

Fitch expects price increases to slow, with the supply of reinsurance forecast to exceed demand across most classes in the next 12 months. However, in Fitch’s view, pricing remains adequate to support profitability across most reinsurance classes.

Reinsurers are likely to maintain underwriting discipline in 2013 as they continue to be cautious after the high losses of 2011 and uncertainty continues about the global macroeconomic outlook. The high cost and difficulty of replacing lost capital are also likely to reinforce caution among reinsurers.

Fitch expects reserves to develop favourably for most classes, but the level of surplus being generated by prior years is expected to decline somewhat, which will add pressure to run rate profitability.

“A further catastrophic loss coupled with an inability for reinsurers to replenish lost capital is the most likely threat to the sector’s stable outlook at this time,” says Martyn Street, Director in Fitch’s EMEA rating group. “Historically, this has been a rare combination.”

0 1

Shares in troubled Dutch banking and insurance group SNS Reaal plummeted further on Thursday amid heightened speculation that the government will nationalise the bank which has a heavily indebted property subsidiary.  Shares in the bank fell 9.9 per cent to close at 0.69 euros ($0.92), after having plunged 11.7 per cent on Wednesday. 

SNS shares were worth about 15 euros in 2008, before the financial crisis.  The sharp drop is the result of market jitters resulting from speculation that authorities may intervene to bail out the bank, the fourth-biggest in the Netherlands, which according to Dutch financial daily Financieele Dagblad (FD) may have to post up to 1.8 billion-euros in writedowns on festering property finance loans.

Some Dutch MPs have called for state intervention and a writedown of ordinary bonds, the first time ordinary bond holders would be drawn into a bank rescue, the paper said.  Earlier this month, the European Commission blocked a plan by three other Dutch banking giants, ABN Amro, ING and Rabobank to help SNS with a capital investment, on competition grounds saying that ABN and ING themselves previously received state aid, Dutch media reported.

SNS Reaal is considered a systemically important bank, meaning it is too important to allow it to go bankrupt.

A writedown of bonds however would affect the ratings of Western banks, the FD daily quoted ratings agency Fitch as saying on Thursday.

“If an important country in Europe writes down the ordinary bonds of a problematic bank, that means a complete change in how we look at banks,” Bridget Gandy, head of European bank credit ratings at Fitch said.  An ordinary or corporate bond is distinct from a sovereign bond, as it is issued by a company rather than a state.

The financial crisis has seen sovereign debt writedowns in countries such as Greece, but not writedowns of ordinary bonds issued by banks which have as a result been regarded as relatively safe.

In effect it meant that ordinary bond holders for the first time will be drawn into a state-initiated bank rescue, causing bonds issued by banks to be seen as higher risk and in turn spook investors.

Bonds are seen as safer investments than shares, Dutch public broadcaster NOS said, adding that even during the banking crisis rescue the European Central Bank insisted on ordinary bond holders’ protection “out of fear that investors would panic.”

“Until now ordinary bond holders have been kept out of the vortex of bank rescues,” it added.

The Hague, Jan 24, 2013 (AFP)

0 4

UK renewable energy group, Renewable Energy Generation Ltd (REG), has moved its full banking mandate to HSBC’s West and Wales Corporate team and secured a €15 million trade finance facility to support the acquisition of wind turbines.

Using this facility, the company has recently purchased three 2MW G80 turbines from Spanish manufacturer Gamesa SPA for a new onshore wind farm project at Burnthouse Farm in Cambridgeshire. Construction has commenced with the aim that it will be fully operational later this year.

The deal to move to HSBC was led by Stefan Gunn, Senior Corporate Banking Manager within the West and Wales corporate team. Stefan, who is based in Bristol, specialises in supporting companies in the renewable energy sector and works with a number of other businesses in this field.

REG was established and listed on the London Stock Exchange’s Alternative Investment Market in May 2005. The group’s main business is the development, construction, financing and operation of onshore wind farms in the UK. The company operates eleven wind projects in Cornwall, County Durham, Cumbria, Cambridgeshire, Yorkshire and Gwynedd, with a total capacity of 57.15MW, and has six projects with planning permission awaiting construction.

REG Commercial Director Simon Wannop said: “The UK has a pressing need to reduce levels of harmful emissions and play its part in tackling dangerous climate change. We have the necessary expertise in development, financing, construction and operations to play a significant part in delivering the renewable energy capacity required for 2020 and beyond, and projects such as Burnthouse Farm are part of this.

“We are pleased to have found a supportive banking partner in HSBC; one which understands where the business is heading and what we need to help us achieve our targets. HSBC’s international credentials were particularly important to us because we trade with overseas wind turbine manufacturers on a regular basis.”

Mark Bennett, HSBC West and Wales Head of Corporate added: “We are pleased to support this innovative and ambitious company. Renewable energy will play an increasingly important role in our future energy provision and REG is leading the way in the field of onshore wind energy production.”

0 28

Obese people face a much higher risk — of up to 80 per cent — of dying in a car collision compared with people of normal weight, researchers reported Monday in a specialist journal. 

The cause could be that safety in cars is engineered for people of normal weight, not for the obese, they said.  Transport safety scientists Thomas Rice of the University of California at Berkeley and Motao Zhu of the University of West Virginia delved into a US databank on road accidents, the Fatality Analysis Reporting System (FARS).

They dug out data from 1996 to 2008, covering more than 57,000 collisions that involved two cars. This was whittled down to cases in which both parties involved in the collision had been driving vehicles of similar size and types.

The team then compared the risk of fatality against the victim’s estimated body mass index (BMI), a benchmark of fat, which is calculated by taking one’s weight in kilogrammes and dividing it by one’s height in metres squared.

An adult with a BMI of between 18.5 and 24.9 is considered of normal weight. Below this is considered underweight. Between 25.0 and 29.9 is considered overweight; and 30.0 or above is obese.

The researchers found an increase in risk of 19 per cent for underweight drivers compared with counterparts of normal weight.  For those with BMI of 30 to 34.9, the increased risk was 21 per cent; for BMI of 35-39.9, it was 51 per cent; and for the extremely obese, with BMI of 40.0 or above, it was 80 per cent.

Obese women were at even greater risk. Among those in the 35-39.9 BMI category, the risk of death was double compared with people of normal weight.

The estimates were made after potentially confounding factors — age and alcohol use, for instance — were taken into account.   Further work is needed to explain the big differences, but the researchers noted that obese people suffer different injuries from normal-weight individuals in car accidents.

Data from intensive-care units say that obese patients tend to have more chest injuries and fewer head injuries, are likelier to have more complications, require longer hospital stays — and are likelier to die of their injuries.

Another question is whether obese people properly use their seat belt, rather than leave it unbuckled or partially fastened because it is uncomfortable — and whether safety designs in cars are flawed.

Crash tests, conducted with cadavers, found that in a frontal collision, people of normal weight lurched forward slightly before the seat belt engaged the pelvis bone to prevent further movement, says the study.

But obese cadavers moved substantially forward from the seat, especially in the lower body. This was because abdominal fat acted as a spongy padding, slowing the time it took for the belt to tighten across the lap.  “The ability of passenger vehicles to protect overweight or obese occupants may have increasing important public health occupations,” says the study, published in the Emergency Medicine Journal.  In the United States, “currently more than 33 per cent of adult men and 35 per cent of adult women are obese,” the paper notes.

“It may be the case that passenger vehicles are well designed to protect normal-weight vehicle occupants but are deficient in protecting overweight or obese patients.”  The final dataset used in the study entailed 3,403 pairs of drivers for whom data on weight, age, seat belt use and airbag deployment were available.  Almost half of these drivers were of normal weight; one in three was overweight; and almost one in five (18 percent) was obese.

Paris, Jan 21, 2013 (AFP)

0 1

The Parabis Group is putting its insurance claims services under a new Parabis Claims Solutions brand to raise awareness for the comprehensive range of expertise it has to offer.

Parabis Claims Solutions will become the market-facing ‘shop window’ to access services from claims management to rehabilitation, and fraud investigation to claimant legal services, making access easier for insurers, brokers and corporate self-insureds.

“We risk being an undiscovered gem,” said Eddie Longworth, Sales and Marketing Director for Parabis Claims Solutions. “We have recognised the need to make it easier for the market to see that, for example, our counter fraud offer within Parabis Risk Solutions and our third party management services through Parabis Limited are part of the same organisation and that their services can come as a package or individually.

“We are already a sizeable operation and we aim to extend what we can offer through Parabis Claims Solutions by organic growth and also by acquisition, building a complete end-to-end outsourcing and supply chain operation for all motor, injury and employer/public liability claims services.”

Together the individual businesses that Parabis Claims Solutions represents currently have a turnover of around £100 million and employ 1,000 people in the UK and a South African-based offshore capability.

“The insurance market has limited understanding of Parabis currently and lacks an appreciation of our size and the extent of our expertise,” said Mr Longworth. “Parabis Claims Solutions will help us change that. It is the hub around which we are building on the innovation and creativity that has underpinned our development to date.”

Tim Roberts, Commercial Director of Parabis, commented: “The claims services within the broader Parabis Group have undergone dynamic expansion over the last 10 years and we have run ahead of market understanding of what we now offer.  By creating the Parabis Claims Solutions brand we are making access easier and giving our expert team a better platform from which to explain to the market all that we can do.”

The businesses represented by the Parabis Claims Solutions brand will also continue to trade in their own right.

0 0

The heavy snow falling over many parts of Britain on white Friday has, up to 3.45 pm brought in 182 car insurance claims already, compared with the 129 average expected for the whole of a typical January Friday. Of those, approaching half (43%) are snow and ice related.   

Simon Douglas, director of AA Insurance says: “Our claims team has been kept busy today although traffic levels are generally lighter than usual, with many people heeding AA advice and staying at home.

But some people have little choice but to drive to work and no matter how carefully they do so, there is a much higher risk of losing control or someone else hitting your car.

“Fortunately, injuries in snow-related collisions are rare because they tend to happen slowly – almost in slow motion, so usually it’s dented pride as well as dented panels on the car that results.

“However, I would urge drivers not to travel unless absolutely essential.  Try to stick to main roads too, as they are most likely to be gritted.”

The most common claims are for tail-end crashes, especially at road junctions and roundabouts.  That’s followed by parked cars being hit by vehicles that are sliding out-of-control.

Mr Douglas adds: “Many more drivers have fitted winter tyres this year and that will be paying off – even conventional cars so fitted are less likely to lose traction on snow and ice than a 4×4 vehicle not so equipped.   In addition, insurers don’t consider winter tyres to be a modification so car insurance premiums won’t be affected.”

“If you do have to drive, follow the AA’s advice: take plenty of warm clothing and a rug, some food (chocolate is good) and drink, make sure your mobile phone battery is well charged; take a shovel and boots in the car too. Keep your windscreen wash topped up with a low-temperature solution and keep a can of de-icer and scraper in the car.

“When you are driving, allow much more space between your car and the vehicle in front; avoid sudden braking, cornering or acceleration.  If pulling away on an icy surface, put your car in a higher gear and accelerate very gently: the moment the wheels start to spin you have lost traction so ease off and try again.  It’s worth keeping some pieces of old carpet or cardboard in the car which may help you to get out of an icy rut.”

Battle scars

A quick analysis of snow and ice claims on 18th January show that inanimate objects come off worst from out-of-control vehicles.  More than a third were claims following collisions with fences, hedges, walls, kerbs, trees and lamp-posts.  A third were tail-end crunches and 10 per cent were collisions with oncoming vehicles.  Most of the rest involved hitting parked cars.  An unfortunate few ended up in deep water – one driver sliding off the road and ending up in a Norfolk dyke.

0 1

Clients of the insurance software house Transactor Global Solutions Ltd (TGSL) will be the first to benefit from the new Classic Vehicle products launched from Groupama Insurances.

Optima Classic Car and Optima Classic Bike are the first Classic Vehicle products to benefit from full-cycle Electronic Data Interchange (EDI). Both products have been built on Transactor’s complex motor lines of business and are ideally suited given the company’s specialism for non standard risks.

Simon Macray, Director of Insurer Relations, TGSL, said, “We have several customers which specialise in Classic Cars and Bikes so we’re delighted that Groupama has chosen to distribute these products on Transactor first. The Groupama team have been a pleasure to work with throughout the new launch.”

Kevin Kiernan, Personal Lines Director, Groupama Insurances, said, “We spent some time researching the market to ensure our new Optima Classic products would fulfil customer needs.  What we were also conscious of was that brokers wanted a simple way to deliver agreed value policies. TGSL worked closely with us to ensure that we could launch a product that brokers can use and that customers want. I’m delighted with the results so far seen through TGSL’s system.”

To enquire about access to the Optima Classic products TGSL customers are advised to contact the Groupama team.

0 2

Covéa Insurance has joined forces with Insurance Initiatives Limited (IIL), to implement the Informed Quotes service on all of its key software house platforms for its personal lines business.

IIL are leading data specialists in the personal lines intermediated marketplace and provide their clients with the ability to make a real time call to their data hub providing data enrichment into their rating engines.

Covéa Insurance has selected IIL’s data services to further enhance the sophistication of its pricing.

Colin Batabyal, Personal Lines Director at Covéa Insurance said: “Our aim, as Covéa Insurance, is to operate at the leading edge of technology initiatives and we firmly believe that the implementation of these solutions that provide enriched sources of data are vital in precision pricing.

 “A more accurate assessment of underwriting, claims risk and fraud at the point of quotation is a major benefit to our brokers and their clients as we continue to expand the range of tools available to us, to enable us to offer the most accurate and competitive premiums possible.”

Peter Lacey, Sales Director of Insurance Initiatives commented: “Our Informed Quotes product provides the intermediated marketplace with powerful data which is quickly becoming an indispensable part of the pricing process and a crucial tool to underwriters. One of the key benefits of the IQ product is that it is able to cost effectively deliver value in a high volume environment and we are delighted to add Covéa Insurance to our ever increasing list of clients.”

Covéa Insurance has been working very hard this year to bring together Provident and MMA to establish a new force in the general insurance market and this project is just one of a range of initiatives that form part of the Company’s strategy to deliver the quality, consistency and financial reassurance their brokers and partners value.

0 0

Aria Assistance has joined forces with Medical Support Solutions to provide a full range of integrated assistance and medical services for employers with personnel in remote areas. This range of services, which includes insured solutions, covers pre-deployment OH review, healthcare delivery on site, fully backed up robust emergency response plans, medical evacuations and recovery capability.

MSS specialises in the provision of remote site medical services and medical and emergency risk management. MSS offers a range of risk management solutions for clients operating in austere or remote areas – from the supply of medical equipment and consumables to delivering medical care through on-site medical facilities and medical personnel.

This agreement between Aria Assistance and MSS gives clients the assurance that the UK-based assistance leader’s 365-day 24/7 assistance centre stands ready to work with on the ground MSS clinical assets, as required by the customer, as well as accredited host nation facilities and air evacuation providers to provide a seamless emergency response package through a single point of contact.

With a growing string of partnerships in place, Aria Assistance is extending the reach of its services to every continent.

Aria Assistance chief executive Patrick Leroy said:  “We pride ourselves on being able to help people wherever they are and whatever situation they find themselves in.

“MSS provides an essential service for people working in some of the most challenging environments in the world, and we are confident that the partnership with Aria Assistance will support its future growth and success.”

0 0

Aon Benfield is advising the insurance industry to consider the potential ramifications of a severe space weather event, especially as solar and geomagnetic activity is predicted to peak in the coming 12 months. In response, Aon Benfield Analytics has launched a new report entitled ‘Geomagnetic Storms’ to review the potential threat and risk management implications.

Although the probability of an event occurring is low, solar activity roughly follows an 11-year cycle with the peak in solar activity expected to occur in early 2013.

Geomagnetic storms and extreme solar weather are a realistic threat to three critical areas of modern infrastructure:

– Electrical power distribution: Massive ground currents resulting from geomagnetic storms can flow through electricity distribution networks, resulting in large scale blackouts and permanent damage to transformers.

– Telecommunications: Enhanced X-ray and extreme ultraviolet solar radiation during a solar flare has implications for radio propagation and telecommunications systems, including blocking of global communications.

– Global satellite navigation: Solar radiation trapped in belts around Earth interacts with satellites leading to orbit decay, static electrical discharges and disabling of GPS services with particular consequences for aviation in high latitudes.

Few attempts have been made to estimate the potential costs of space weather events. However, a 2004 report of the US National Academy of Sciences estimated the economic costs of a repeat of the 1921 event for the US alone at USD2 trillion for the first four years but with recovery taking up to ten years.

Insurance policies and reinsurance treaties are likely to contain the legal triggers for liability in the event of the catastrophic failure of electricity distribution, telecommunications or satellite navigation networks. However, these contracts are unlikely to have been drafted for specific extreme solar weather losses. Looking forward, risk managers and insurance brokers can utilise this threat to develop broad-based contingent business interruption and extra expense products that currently require a physical damage trigger.

Stephen Mildenhall, CEO of Aon Benfield Analytics, said: ““Insurance and reinsurance industry awareness of geomagnetic storms has grown in recent times, but accurate assessment of risk still remains in its infancy for all but a few niche sectors. The report details five major geomagnetic events that have occurred over the last 150 years, highlighting the need for a better understanding the risk management, pricing and coverage implications of this very credible type of event. We also outline some of the critical insurance issues involved in responding to the risk of geomagnetic storms.”

This report forms part of a new series for 2013 from Aon Benfield that explores “pear-shaped phenomena”. These are relatively low probability, high consequence events that pose substantial risks to industry and the economy. With careful research and communication, the insurance industry can be at the forefront of risk mitigation for pear-shaped phenomena.

0 0

Baby buggy theft is on the rise as new models increase in value and cash-strapped parents are buying second-hand to save money. 

New research from LV= home insurance reveals that one in 14 (7%) parents with small children have had a buggy stolen, with the number of thefts increasing year on year since 2009. The most targeted brands are Maclaren, Graco, Silver Cross, Chicco and Bugaboo.

The increase in thefts can be attributed to the rising cost of buggies in recent years, with parents spending 20% more today than they did three years ago. The most popular buggies sell for £427 on average, with the more desirable brands costing over £1,000.

As the cost of buggies increases, many parents are now choosing to buy used models to save money. One in eight parents (12%) say their current model was purchased second-hand and over a third of these were bought through online auctions. In fact, one in 20 parents (5%) say they would turn a blind eye and buy a stolen buggy if the price was right. Yet by doing so parents are effectively fuelling a ‘buggy black market’ and exacerbating the problem.

Official Police data obtained by LV= reveals that buggy thefts have increased by almost a quarter since 2009 and that the problem is getting worse each year. However, 42% of parents who have had buggies stolen say they did not report the crime to the Police, therefore the number of actual thefts may be far higher than the official figures. It is estimated that nearly 340,000 parents have had a buggy stolen costing them over £70 million collectively.

According to the data available, Police in Greater Manchester reported the most thefts since 2009 with 546 stolen buggies. Northumbria (193 thefts), Lancashire (177) and Kent (176) have also been identified as other buggy theft hotspots.

The figures also reveal that most buggies are stolen from just outside the owner’s home. Nearly a quarter (24%) of those who have had a buggy stolen say it was taken from a porch, outbuilding or similar. However a significant number of thefts take place away from the home where it is harder to conceal a buggy from opportunistic thieves. Nearly a fifth (18%) have been stolen from public parks and a further 15% were taken from cafés, restaurants and pubs. One in 10 (9%) theft victims say their buggy was stolen while it was in their car and a similar number (9%) say it was taken while they were out shopping.

Modern buggies now often double up as extra storage for the parents pushing them, who frequently store handbags, purses, mobile phones and MP3 players in them[8]. One in six (16%) buggy theft victims say they also had their mobile phone stolen, while others lost their handbag (13%), purse/wallet (9%) or MP3 player (9%) when their stroller was taken.

Parents often make the mistake of thinking they are automatically covered on their home insurance for theft away from the home when this is not the case. Personal possessions cover usually needs to be added to a policy to include cover for theft away from the home, meaning parents could be left out of pocket if their buggy is taken while out and about.

John O’Roarke, Managing Director of LV= home insurance, comments: “Baby buggies have soared in value in recent years with some designer models costing as much as a small car. This, combined with the fact that they can easily be sold on to cash-strapped parents has effectively fuelled a ‘black market’. It is easy to forget about your valuables when minding a small child but parents need to take care that they don’t fall victim to opportunistic thieves and ensure they have the correct insurance in place to cover them should the worst happen.”

0 1

Wayne Pontin has been appointed as executive director mergers and acquisitions for Jelf, reflecting the Group’s ambitions to grow its Employee Benefits arm.

Wayne has a wealth of experience in the healthcare insurance market, most recently as a sales development director for Jelf Employee Benefits. He has built up a huge network of contacts within the intermediated and insurer communities over the last 35 years, and is well placed to identify opportunities for growth via the purchase of businesses, along with the recruitment of individuals and teams, to complement Jelf’s organic growth. Wayne himself became part of Jelf through an acquisition – his own consultancy, Pontin & Stein Medical Insurance Specialists, in 2003.

Commenting on Wayne’s appointment Alex Alway, Jelf Group chief executive said: “To maintain the success of our Employee Benefits business, and to deliver our targets, we believe our organic growth should be coupled with acquisitive growth, as and when the right opportunity arises. With all the experience and contacts Wayne has, he is ideally placed to identify these opportunities.”

Wayne, who was recently honoured with a Health Insurance Lifetime Achievement Award, is currently Chairman of the Association of Medical Insurance Intermediaries and will continue this role as part of his appointment. He will also retain an advisory position on Jelf’s Healthcare Management team.

0 0

British insurance group Aviva said it had sold its remaining minority stake in Dutch insurer Delta Lloyd to unnamed investors for £353 million ($567 million, 433 million euros). 

The announcement comes a week after Mark Wilson began his reign as Aviva chief executive following a turbulent time for the company. Aviva said on Wednesday that it had sold its 19.4-percent holding for 12.65 euros ($16.55) per Delta share.

“Following completion of the offering, Aviva will no longer hold any stake in Delta Lloyd,” it added in a statement.  Aviva had in July already sold 21 per cent of shares Delta Lloyd as part of a large restructuring of the British group, which last month agreed to sell its US life insurance business for $1.8 billion to Bermuda-based Athene Holding.

Aviva decided to withdraw from 16 non-core business areas after the shock resignation of chief executive Andrew Moss in May amid spreading shareholder revolts over high pay for chief executives judged to have underperformed.

The appointment of New Zealand national Wilson, a former chief executive of Asian insurance giant AIA, was announced in November.

London, Jan 09, 2013 (AFP)

Prev1...107108109...170Next Page 108 of 170

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