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QBE and Risk Management Partners, a subsidiary of AJ Gallagher, have announced that QBE Europe is to underwrite RMP’s Public Sector business from July 1st. The deal comprises all the major classes of business with significant premium volume and market share for a full range of Public Sector clients from district councils up to large urban metropolitan boroughs and includes social housing, ambulance, fire and police exposures. Primarily Property and Liability business, other classes include Motor, Officials Indemnity, D&O, EIL, EAR, Personal Accident and Fine Art.

Craig Bennett, Director of UK & Ireland Liability at QBE commented: “QBE again show their ambition by writing a large line on a very complex cross-class facility in a highly developed and sophisticated market. QBE’s ability to handle the diverse and complex risks involved once again demonstrates our entrepreneurial approach to business and our desire to work to find insurance and risk management solutions for their markets.”

Kaz Janowicz, Chairman of RMP, commented: “We are delighted to be working with QBE.  Their underwriting expertise across the wide-range of classes, backed by their A+ security, will enable us to continue to serve the needs of local authorities across the UK and build a strong proposition for the Public Sector market.”

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Fitch Ratings has affirmed Eurco Re Limited’s Insurer Financial Strength (IFS) Rating at ‘BBB’ with a stable outlook.

The rating rationale is based on Fitch’s opinion that Eurco Re would, if needed, receive support from its immediate parent, Dexia Insurance Belgium (now trading as Belfius Insurance) and potentially from Belfius Insurance’s own parent, Dexia Bank Belgium (now trading as Belfius Bank) (‘A-‘/Stable).

Belfius Bank is a leading Belgian bank owned by the Belgian state and Eurco Re performs a useful role as the group’s only active reinsurer with bank counterparties that are significant in Belfius Bank’s banking activities. As a result Fitch believes that, based on its ownership by Belfius Insurance and Belfius Bank, Eurco Re would likely benefit from support from the group if ever it were needed.

About 35% of Eurco Re’s gross premium income comes from intragroup business. In addition, its third party business ultimately derives from its position in Belfius Bank. Fitch therefore considers Eurco Re to be entirely dependent on the wider Belfius Bank group for business. In 2011 Eurco Re wrote around EUR250m of net premium income, little changed from 2010, and equal to around 10% of the group’s net premiums from insurance activities.

The key rating triggers that could result in a downgrade for Eurco Re include any reduction in Fitch’s view of potential support from Belfius Bank or Belfius Insurance, a material change in Eurco Re’s operations, or a downgrade of the parent. An upgrade is unlikely in the near term.

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As Britain enters a double-dip recession, research conducted by TNSon behalf of Age UK suggests that the number of older people owing money has risen sharply over the last year and nearly one fifth (19%) of those in debt are concerned about the amount of money they owe.

One in five people aged 60 and over said they owed money on a mortgage, credit card or loan, with levels being significantly higher among the younger end of the age group. Over one in ten (11%) of those interviewed reported having had to borrow money to pay their rent or mortgage. Further questions showed that over a third of those interviewed did not feel that the income from their pensions and savings was enough to cover a financially stable future. A similar survey undertaken last year by Age UK showed one in ten of the pensioners had loans or debts.

The survey by TNS on behalf of Age UK of more than 1000 people aged 60 and over highlights the importance of Age UK’s ‘More Money in Your Pocket’ (MMIYP) campaign – launched  this month- encouraging people in later life to claim the benefits they are entitled to and maximise their retirement income

The survey showed that just under three-quarters (72%) of those who claim benefits say that receiving the extra money had made a difference to their lives.

There are still 1.8 million pensioners who live in poverty and as much as £5.5 billion in benefits goes unclaimed each year with up to 1.6 million older people who are eligible for Pension Credit not taking up their entitlement7.

Michelle Mitchell, Charity Director General at Age UK says: “It is extremely worrying that such a high number of older people report having debts and have had to borrow money just to keep a roof over their heads. Most older people live on a relatively small incomes so making debt repayments can be a worry.

“Far too many older people are living in poverty and the Government must continue to work proactively on ways of getting money to older people who are in desperate need.

“Many older people have had negative experiences when claiming benefits, finding the whole system insurmountable.  Older people are more likely than any other age group to miss out on their benefits because they are hesitant to claim, don’t think they are eligible, or believe the claiming process is over-complicated and intrusive.  There is a real need to get rid of the stigma that some people associate with claiming benefits.

“Independent information and advice and face-to-face communication are key to improving the take-up of benefits and we would urge any older person who is struggling or worried about money to contact us. Age UK can offer a free benefit check and help with filling in forms so call our free advice line on 0800 169 6565 or speak to your local Age UK.”

‘More Money in Your Pocket’ is part of Age UK’s ‘Let’s Talk Money Campaign’ which aims to help people get the most out is running throughout April and May.  It’s focused on helping people maximise their income through claiming the benefits they are entitled to and making the most of Age UK’s products and services.

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New research from Gocompare.com has revealed that more than half (51%) of UK householders worry about their home being broken into and nearly a quarter (23%) admit to keeping some kind of weapon or heavy object close at hand in case of intruders.

Comparison website Gocompare.com carried out the research as part of a wider study looking at attitudes towards home and personal security and the take up of insurance to protect homes and belongings. However, researchers were shocked by the large percentage of UK householders experiencing the effects of crime at first hand, and the high levels of anxiety Brits felt about their personal safety and that of their property.

The survey revealed that:

– 51 per cent of UK householders worry about their home being broken into

– 17 per cent have been burgled

– 61 per cent keep their doors locked all day even if they’re at home

– 52 per cent would confront an intruder with a weapon

– 23 per cent keep a weapon or heavy object close at hand at home

– 47 per cent don’t answer the door after dark

– 38 per cent don’t go out alone after dark

– 22 per cent have experienced verbal abuse

– 13 per cent have been physically assaulted

– 91 per cent feel householders should be entitled to defend their homes with lethal force

– Londoners have experienced the highest levels of crime

14 per cent of UK householders and 25 per cent of respondents living in London indicated that they didn’t believe they lived in a ‘safe’ area.

10 per cent of respondents said that they kept a baseball or cricket bat to hand in case of an intruder, whilst 9 per cent kept a knife or ornamental/replica sword. 14 per cent had a hammer or other heavy object at hand to fend off a trespasser, and 3 per cent said they kept a firearm such as a rifle, handgun or shotgun. More than half (52%) said they would confront an intruder with a weapon.

Of the five regions surveyed, Londoners had experienced the highest levels of crime with 20 per cent having been burgled, 12 per cent pick-pocketed and 10 per cent having been mugged or had their bag snatched. 18 per cent of Londoners said they had been physically assaulted and 29 per cent had suffered verbal abuse.

Many Brits stay firmly behind locked doors at night with nearly half (47%) not answering the door after dark and 38 per cent not venturing out alone at night. However, 9 per cent of respondents said they had at some time had items stolen from their home by a friend.

Mark Greening, head of home insurance at Gocompare.com said:

“We were shocked by some of the results of this survey. Crime is a major concern for many UK householders with some even suggesting that they’re prepared to defend themselves and their homes with weapons against intruders. Rather than putting themselves in harm’s way, when it comes to home security prevention is much better than cure. Householders can take a range of measures to make their homes less attractive to intruders, and home insurance can help you to replace your possessions if you are targeted by burglars. It’s really not worth putting yourself or your family at risk when you have home insurance to help you pick up the pieces.”

Tips to make your home less attractive to burglars…

– Make your home as unattractive to a burglar as possible by fitting outside security lighting and securing your doors and windows. If you can afford it, consider installing a burglar alarm. Burglars are more likely to go for easy targets.

– If possible protect your boundaries with walls, fencing or dense hedging and have gates at access points.

– Try to make it look like the house is occupied even when it isn’t. Keep a light on in the evening if you’re out or even better use a timed light to go off and on at intervals to give the impression of activity within. When you’re on holiday ask a neighbour to clear the post away from the door and remember to cancel things like milk and newspaper deliveries.

– Keep valuables like laptops, expensive phones, cameras and car keys out of view from windows and close your curtains at night. Leaving valuables on show may tempt a burglar to ‘have a go’.

– Keep outbuildings secure and keep things like bicycles, lawnmowers and power tools safely locked away.

And finally make sure your home and belongings are protected by an adequate home insurance policy, just in case.

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Consumer expenditure, amounting to 56% of EU GDP, reflects the enormous power of the consumer to drive forward the European economy.

Only empowered and confident consumers can fully exploit the potential of the Single Market and enhance innovation and growth. This is why the European Commission’s strategic vision for EU consumer policy for the years to come – adopted today – aims to maximise consumer participation and trust in the market. Built around four main objectives the European Consumer Agenda aims to increase confidence by: reinforcing consumer safety; enhancing knowledge; stepping up enforcement and securing redress; aligning consumer rights and policies to changes in society and in the economy. It also presents a number of key actions to be implemented between now and 2014.

“Growth in the European Union needs both competitive supply and strong demand. Consumers therefore must be as much centre stage of EU policies as businesses. We need confident consumers to drive forward the European economy”, said Viviane Reding, Commission Vice-President and the EU’s Justice Commissioner. “We want to stimulate cross-border shopping online, and this is why the EU and its Member States need to bring consumer rights into the digital age. We have taken first steps with the Consumer Rights Directive and with the proposal for modernised data protection rules to boost consumer confidence online. As a next step, the Commission plans to modernise the EU’s package travel rules of 1990 to take into account that more and more people now book their holidays on the web. However, it takes more than new laws to make the digital single market work for consumers. Member States need to step up the swift and non-bureaucratic implementation of EU rules so that consumer rights become a concrete reality for our 500 million consumers. “

“In the current economic context a strong consumer policy is a necessity. Empowering Europe’s 500 million consumers will be a key contribution to growth in the European economy,” said Health and Consumer policy Commissioner John Dalli. “The strategy adopted today aims to empower consumers and build their confidence by giving them the tools to participate actively in the market, to make it work for them, to exercise their power of choice and to have their rights properly enforced. We will do so for instance by revising the EU framework for ensuring that products and food on the Single Market are safe, by stepping up enforcement of EU consumer laws in close cooperation with national authorities, by providing more support to consumers shopping cross-border through the European Consumer Centres, and by ensuring that consumer interests are more systematically integrated into EU policies of key economic importance for households.”

European consumers enjoy some of the strongest consumer rights and protection in the world whether protecting them from unsafe products, misleading advertising, unpredictable roaming costs or dubious practices online, or supporting them when things go wrong. The proposals for Alternative Dispute Resolution and Online Dispute Resolution (ADR/ODR) currently on the table will enable them to solve problems quickly, easily and at low cost. Another example is the European Small Claims Procedure which simplifies, speeds up and reduces the cost of litigation in cross-border cases for claims up to €2000. As of 2013 via the e-Justice portal consumers will be able to complete the small claims forms online in any official language simplifying saving them further time and efforts.

While the EU has a substantial corpus of consumer law and the consumer dimension is an important part of many EU policies, a comprehensive framework is needed which also addresses imminent challenges such as those linked to the digitalisation of daily life, the desire to move towards more sustainable patterns of consumption, and the specific needs of vulnerable consumers.

Four main objectives

The Consumer Agenda presents measures designed to achieve the objectives of the EU’s growth strategy, Europe 2020. It builds on and complements other initiatives such as the EU Citizenship Report (see IP/10/1390 and MEMO/10/525), the Single Market Act, the Digital Agenda for Europe (see IP/10/581, MEMO/10/199 and MEMO/10/200) and the Resources Efficiency Roadmap (see IP/11/1046). To this end, it is built around four main objectives designed to increase consumer confidence.

– Reinforcing consumer safety: for goods, services and food, strengthening the regulatory framework and making market surveillance more efficient.

– Enhancing knowledge: to cope with the increasing complexity of markets, where consumers need the right tools and information to understand everything from the real cost of consumer credit to finding the right place to complain. This is important for both consumers and traders, and the role of consumer organisations is key.

– Improving enforcement and securing redress, without which rights cannot exist in practice. This is all the more relevant given that the detriment suffered by European consumers incurred from problems causing complaint is estimated at about 0.4 % of EU GDP.1 The role of consumer enforcement networks2 is central.

– Aligning policy to societal change and making it relevant to daily life: to adapt consumer law to the digital age and tackle problems consumers face online; to factor in the needs of vulnerable consumers; to make sustainable choices easy

Five key sectors

The Agenda supports consumer interests in key sectors.3

– Food: to ensure sustainability and safety.

– Energy: so that consumers can get the best value for money in the liberalised market and better manage their energy consumption.

– Financial: to protect consumers’ financial interests and give them the tools to manage their finances.

– Transport: to adapt legislation to modern patterns of travel and to support sustainable mobility.

– Digital: with a view to tackling problems faced by consumers and ensuring their protection online.

 

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Xchanging has appointed Mike Reynolds as Global Sales Director of Insurance with immediate effect. Based in London, Mike will report to Executive Director Jane Tutoki.

With particular expertise in strategic business development, as Global Sales Director, Mike will be responsible for the coordination of all sales activity for insurance clients, leading efforts to create new product and service offerings as well as identifying new target markets.

Previously, Mike held senior positions at iGATE Patni, Accenture and Digital Equipment Co.  At Accenture he was a Partner in Financial Services and was responsible for establishing and leading the Financial Services EMEA Alliance Service Line.

Jane Tutoki commented “I am delighted to announce the appointment of Mike Reynolds as Global Sales Director for Insurance.  With over twenty-six years’ of international business experience, he brings a wealth of knowledge in client relationship management, technology services and business solutions.   We are confident that Mike will provide terrific leadership as Xchanging Insurance Services grows both its client base and product offerings.”

Commenting on his appointment Mike said “I am pleased to have the opportunity to take on this leadership role with as dynamic and innovative a company as Xchanging.  I look forward to working with my colleagues to expand Xchanging’s insurance reach across the globe and to develop new offerings for our clients.”

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XL Group has announced the appointment of Eileen Whelley as Executive Vice President, Chief Human Resources Officer. Ms. Whelley succeeds Elizabeth L. Reeves, who is retiring.

Since 2006, Ms. Whelley has been Executive Vice President, Human Resources for The Hartford Financial Services Group, a diversified financial services company with approximately 24,000 employees. Ms. Whelley’s appointment is effective June 18, 2012. She will report to XL’s Chief Executive Officer Michael S. McGavick and will serve on XL’s Leadership Team.

“We’re thrilled to welcome Eileen to XL,” said Mr. McGavick. “Our ability to address our clients’ needs is only as good as our people, and Eileen has a proven track record of attracting and retaining top talent and designing strategies to drive transformation and accountability at global companies. I’m sure she will only accelerate the already substantial pace with which we have been attracting the industry’s top leaders. We look forward to her contributions both to our Leadership Team and the entire Company.”

Mr. McGavick  continued: “We are also sad to see Beth go. Beth joined XL at my request, to build out a critical function as Chief Human Resources Officer, at a most important time for the Company. Beth’s impact is clearly visible in the leaders and teams we’ve added and in the way we’ve re-thought our approach to talent and development. We wish Beth the best.”

Prior to her time at The Hartford, Ms. Whelley spent 17 years at General Electric where she held a number of human resources leadership roles, including serving as Executive Vice President of Human Resources at GE’s NBC Universal subsidiary from 2002 to 2006. In this position, she oversaw HR through acquisitions of Telemundo and cable channel Bravo and led the HR integration of NBC’s merger with Universal.

Before joining NBCU, Ms. Whelley was the Vice President of Human Resources Excellence for GE Capital. Before that she served in a variety of HR leadership roles at Employer’s Reinsurance and at GE’s corporate headquarters. Prior to GE, Ms. Whelley worked for Citicorp and Standard Oil of Ohio in a number of HR roles. She is a graduate of Potsdam College and has a master’s degree from Bowling Green State University.

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Paul Clark CEO of Charter UK, a provider of enterprise complaint and feedback management software working closely with the banks comments on the fact that Which? has written to the government, urging it to clear up the claims process for people who were mis-sold payment protection insurance (PPI) and stop claims management companies (CMCs) cashing in at their expense.

“The first questions that springs to mind is why is the Ministry of Justice  not saying what they are going to do about it? How is it going to ensure better working practices and why do CMCs fall into a grey zone when the FSA has made it abundantly clear to the banks that they need to revise their way of dealing with complaints?

Industry figures, which suggest that up to 25 per cent of the claims banks are receiving from claims management companies (CMCs) are from claimants who never had a PPI policy in the first place, highlight the size of the problem these firms are creating. I have said in the past that the FSA underestimated the amount of effort that would be required by the banks to resolve the PPI backlog, with up to 20 million consumers who potentially have a claim, and with CMCs adding to this stress with erroneous claims it is clear that for everyone concerned this is a step in the right direction.

CMCs are required to perform a series of checks with a consumer prior to submitting a claim. With such a high number of invalid claims being processed by CMCs, I have to ask if they are doing these checks properly. Those who fail to adhere to this rule should be investigated by the Ministry of Justice and face punitive action. However, because the Ministry is under resourced, it is simply not happening. Our question is who should be looking at this? What is clear is that stricter regulation is badly needed.

What we have witnessed is that banks have been working around the clock to put systems and processes in place to not only respond to PPI claimants in a timely manner, but to proactively contact customers who may have already been sold PPI. Banks have made it easier than ever before for customers to contact them directly, and the technology that is being used is making the end to end complaints and claims system very much more streamlined.  We have always said there is a correct way of making a claim, and banks are now more prepared than they have ever been to respond and resolve them in a way that is efficient to them, and fair to the customers.”

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QBE announces the addition of its Professional Indemnity Combined product to its e-trading platform, Fastflow. The product has been designed to meet the insurance needs of professional SMEs.  The addition of Professional Combined complements the existing range of products available from QBE under Fastflow, notably Business Combined, Tradesman and Office.

The PI Combined insurance will offer up to 13 different coverage sections under one policy. Professional Indemnity will be the only mandatory section of the policy, but there will be the potential to add on buildings and contents, including business interruption, directors & officers liability, employers’ liability, public and product liability cover.

The product will be available to a wide group of 600 trades operating in both emerging and traditional business areas. These include: IT and media risks, estate agents and small accountancy practices. A comprehensive suite of wordings will be available, but will be tailored to each profession’s specific needs. A single policy wording covering all sections will be instantly delivered electronically. Premiums will start from as little as £125.

David Greaves, Head of SME, QBE European Operations, commented; “I am pleased that QBE is today able to extend its comprehensive SME e-trading offering into Professional Indemnity. Our discussions with brokers tell us that there is strong demand amongst clients for easy to understand, comprehensive products that cover their entire risk profile. By offering this product through our e-trading platform we are responding to this demand in a cost effective and efficient manner.  We will continue to develop and refine our e-trading capability so that we can offer real scale and quality distribution channel for our brokers across the UK.”

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Sterling Insurance can reveal that over 60% of brokers are confident about their overall business growth prospects for the next 12 months despite the double dip recession.

These results came about as a result of Sterling’s annual broker survey, which took place between March and April 2012. Brokers were asked to state whether they thought business would deteriorate, stay the same or improve – for their overall business and for business from personal and commercial lines.

In its fourth year the survey also reveals that brokers remain loyal to Sterling as 65% rate the competitiveness of their products as good/excellent. Likewise 75% of those surveyed rated Sterlings claims service as good/excellent which is a dramatic increase of 20% over the preceding 12 months.

David Sweeney, head of commercial and personal lines at Sterling, comments:

“Our annual broker survey is an excellent way of communicating with the brokers who make our business what it is. Reliable products and a strong customer service ethos are as important to brokers as the professionalism of our staff. This is illustrated by the fact that Sterling recently committed itself to the CII Aldermanbury Declaration and also achieved CII Chartered Status for our household, commercial claims and underwriting teams.

“Sterling now has a regional presence in Manchester with local experienced underwriters and regional development managers on hand for all our brokers. Opening this office is part of our overall strategy to ensure that our brokers get access to the right people at the right time and that Sterling understands their individual and specific needs. Once the model has proved successful, we will of course consider other regional offices.”

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At a time when insurers are under greater pressure than ever to deliver value for money for their shareholders, a report published today by PKF Accountants and business advisers and University of Portsmouth reveals that the UK insurance industry could save billions of pounds each year by taking steps to better protect itself against fraud.

Using a 50 point scale, ‘The Resilience to Fraud of the UK Insurance Sector’ survey finds that the insurance industry outperforms much of the corporate world in terms of fraud resilience, achieving an average score of 36.9 points compared with 30.6 points for the private sector as a whole.  Whilst this is an encouraging result, the authors argue that there is still scope for improvement.

Combining the report’s conclusions with the results of a separate study by the same authors, PKF and University of Portsmouth estimate that fraud could cost the UK insurance sector up to £10 billion each year.

In response to these findings, PKF, University of Portsmouth and the Insurance Fraud Investigators Group (IFIG) have today launched a free on-line Fraud Resilience Self-Assessment Tool specifically for the sector. The tool can be accessed at www.pkfapps.co.uk/insurancefraud. It enables insurers to judge how well protected their own individual companies are against fraud and provides an indicative level of annual fraud losses. Underpinning the tool is the largest fraud resilience database in the world with data concerning 29 aspects of fraud resilience covering almost 700 organisations.

Jim Gee – Director of Counter Fraud Services at PKF (UK) LLP, Chair of the Centre of Counter Fraud Studies at University of Portsmouth and co-author of the report – said: “Fraud is a serious issue for the insurance industry and one that has far reaching consequences for the health and financial stability of the sector, as well as the size of premiums being paid by customers.

“The results of the survey are encouraging but it would be unwise for bosses to rest on their laurels.  At a time when stakeholders are demanding greater value for money, reducing fraud losses is one of the least painful methods for insurers to minimise business expenditure because fraud costs – unlike expenses relating to staffing, property and utilities – are unnecessary and unproductive. Staying a few steps ahead of the fraudsters can have a dramatic affect on a company’s bottom line.

“Separate research undertaken by PKF and University of Portsmouth indicates that average losses to fraud (and error) currently run at 5.7% of an organisation’s expenditure. If this figure is applied to the sector’s 2010 net worldwide premium income of £198.7 billion, it suggests that insurers could be losing as much as £10 billion each year to fraudsters. The good news is that these losses can be reduced. Research shows that fraud can be cut by up to 40% within 12 months.”

David Phillips, Chairman of IFIG, said: “We are always keen to stress to insurers and counter fraud practitioners that you are not alone in your fight against insurance fraud.  This report recognises that insurers believe they have good practises and counter fraud strategies.  We also note that, as an industry, there is more we can do to provide training to those working in counter fraud and to improve our confidence and capability at combating fraud.  This report confirms the need for IFIG and our members to continue the commitment to raising the profile of insurance fraud and providing a forum where counter fraud practitioners can share their experiences and best practise.  We would welcome the opportunity to work with the industry to provide counter fraud and specialist professional training and accreditation.”

‘The Resilience to Fraud of the UK Insurance Sector’ is published by PKF (UK) LLP and University of Portsmouth and written by Jim Gee, Dr Mark Button and Graham Brooks.

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The Joint Committee of the European Supervisory Authorities (EBA, EIOPA and ESMA) is launching a three‘month public consultation on the proposed response to the call for technical advice from the European Commission on the fundamental review of the Financial Conglomerates Directive (“the FICOD”). 

This consultation covers three broad areas where advice is sought by the European Commission: the scope of application, the group wide internal governance requirements and sanctions and supervisory empowerments under the FICOD.

In its proposed response, the Joint Committee issues a series of recommendations for the review of the FICOD, including the widening of the scope of supervision, addressing requirements and responsibilities to a designated entity within the financial conglomerate and the framework of supervisory powers provided by the FICOD.

Moreover, the Joint Committee will be providing later this year, a supervisory contribution to the wider fundamental review of the FICOD, which is being carried out by the European Commission.

Consultation process

The consultation paper is available on the websites of the three ESAs: EBA, EIOPA and ESMA.

Send comments by 13 August 2012 cob to the EBA, EIOPA and ESMA, using the template provided, by email to joint-committee@eba.europa.eu (Link: joint-committee@eba.europa.eu ), jointcommittee@eiopa.europa.eu (Link: jointcommittee@eiopa.europa.eu ) and joint.committee@esma.europa.eu (Link: joint.committee@esma.europa.eu ) by indicating the reference “JC/CP/2012/01” on the subject field.

All contributions received will be published following the close of the consultation, unless otherwise requested.

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The British Insurance Brokers’ Association (BIBA) is warning brokers that the revision of the Insurance Mediation Directive (IMD) could result in both mandatory disclosure of commission for the insurance industry by 2019, and the potential for an increase in the regulatory cost burden.

Eric Galbraith, BIBA Chief Executive, is set to warn brokers at BIBA’s 2012 conference that the text for the revised IMD, likely to be published by the European Commission in the coming weeks, could include a clause which means that commission disclosure could become mandatory.

Galbraith will warn brokers in Manchester next week that there is significant political pressure for mandatory disclosure and that political expediency in Europe may force the issue. Ahead of the conference, Galbraith said: “If the clause is published, this becomes real and it is unlikely that any politician is going to call for less transparency in financial services following the financial crisis.”

BIBA said that the publication of the clause could come despite an encouraging cost benefit analysis on the IMD from the European Commission in early 2012 which initially supported disclosure upon request. BIBA does not believe that a case to mandate disclosure had been proven but that political expediency could force the issue even though the BIBA-led industry guidance on transparency, disclosure and conflicts of interest has been championed at European level by Treasury, the Financial Services Authority and BIBA.

Steve White, BIBA Head of Training and Compliance, said: “We understand that the text circulating is not an official publication and therefore to comment in greater detail would be premature.   BIBA and BIPAR, the European intermediaries’ association, believe that commission disclosure upon request is the most appropriate solution for disclosure in the general insurance market and BIBA continues to lobby on this basis.”

Galbraith concluded: “This could be an example of a ‘one size fits all approach’ from Europe which could have a detrimental impact on our sector. We continue to make the case for the BIBA-led industry guidance on transparency, but political interference in the remuneration system could be a by product of the over zealous application of investment type rules into the insurance sector.”

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Xchanging, the business process and technology services provider and integrator, has won the 2012 StrategicRISK Best Business Continuity Approach of the Year.  The Award recognizes firms that “initiated or implemented a well thought-out new business continuity approach in 2011 that reflected current challenges”.  Xchanging was selected as winner after being placed on a shortlist of five companies.    

Nigel Knight, head of business continuity at Xchanging said, “Over the past twelve months we have worked tremendously hard to overhaul our business continuity planning.  We are thrilled that our efforts have been so recognized by the European Risk Management Awards.”

Throughout 2011, Xchanging’s business continuity team undertook a major strategic review to both pinpoint internal weaknesses and encourage feedback from shareholders and customers about steps that Xchanging could take to shore up the market’s trust in its ability to continue to provide services in the event of a crisis.  The resulting new plans were externally tested by both KPMG and Ashurst.

In further recognition of its high quality business continuity planning, in 2011 Xchanging became the first insurance service provider to qualify for a certification to the management system standard, BS25999 by the British Standards Institution. Highlighting Xchanging’s excellence in Business Continuity, Lorna Anderson, EMEA Business Continuity Expert at BSI said: “Business continuity is not a one-off activity. It needs to evolve with the organisation. The key to this is thinking about what may happen and taking appropriate steps as demonstrated by XIS. A further endorsement to XIS’s commitment is having it independently assessed by BSI.”

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Aon Risk Solutions has been appointed by global Solar Tower renewable energy technology developer EnviroMission Limited as the exclusive provider of insurance placement and risk consulting services for the construction and operation of EnviroMission’s first Solar Tower power station development in La Paz, Ariz.

When completed, the La Paz Solar Tower is expected to be one of the world’s tallest built structures.

EnviroMission has a Power Purchase Agreement to sell solar-powered electricity from the 200MW La Paz Solar Tower power station to the Southern California Public Power Authority – a power sale agreement to supply SCPPA member utilities with clean, sustainable electricity, free from carbon emissions or reliance on fresh water resources for more than 100,000 typical U.S. households.

“Aon is delighted to support EnviroMission in its deployment of new technology as they work to deliver this historic and iconic project,” said Marshall Nadel, CPCU, managing director with Aon Risk Solutions’ Power Practice. “The Solar Tower will be a shining example of innovation driving sustainable solutions in the energy and renewable power marketplace.”

“The Aon team has already added value to the project, not only through their engagement with risk and insurance risk analysis in key contracts, but in an expanded role to help project stakeholders understand and manage project risk,” said EnviroMission Chief Executive Officer Roger Davey.

Prior to this appointment, Aon demonstrated its experience with various major solar thermal power plant projects in the Western U.S. as insurance broker and risk consultant to a major contractor, owner/developer and outsourced risk manager. In addition to Aon Risk Solutions’ Power Specialty Group, Aon Construction Services Group will be working to support EnviroMission’s Solar Tower development.

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Hiscox issues its Interim Management Statement for the first three months of the year to 31 March 2012.

Hiscox’s gross written premiums remained broadly stable at £450.7 million (2011: £453.5 million) as the Group withheld some reinsurance capacity in the first quarter anticipating better rates and terms later in the year. After two busy years of claims activity, it has been a relatively benign quarter for most areas of the business.

Bronek Masojada, Chief Executive, commented: “The year has started well with good growth in retail lines, a strong investment return and the reinsurance renewals in April beating our expectations.”

Gross Written Premiums for the period:

Rates
Rates in reinsurance and catastrophe exposed lines, such as US property, continue to improve. For example, rates for Japanese earthquake catastrophe excess of loss have doubled since the Tohoku earthquake and tsunami of March 2011. At the April renewals, our reinsurance businesses more than doubled their budgeted premium income in this area.

Rates in other product lines are either broadly stable or improving gently. The only exception is commercial lines in UK and Europe which remain under pressure.

Investments
The investment result to 31 March 2012 was 1.3% for the quarter on a non-annualised basis. This reflects a strong quarter for our risk assets and a narrowing of corporate spreads in our bond portfolios as a degree of confidence returned to investment markets. Government bonds mostly declined in value during the period. Invested assets totalled approximately £2.9 billion at the end of March and asset allocation remained largely unchanged since the end of 2011.

Despite a good start we expect investment returns for the balance of the year to remain relatively depressed, with the Federal Reserve and the Bank of England continuing to hold down yields available from cash and short dated government bonds. We still see value in corporate bonds and equities but they are likely to be prone to bouts of volatility as political and economic issues, particularly in Europe, create uncertainty.

Hiscox London Market
Hiscox London Market reduced premium income slightly by 0.9% to £180.7 million (2011: £182.4 million). Reductions are largely due to some US reinsurance clients purchasing less cover than in previous years, light claims activity leading to lower inwards reinstatement premiums and reinsurance underwriters holding back US catastrophe capacity in anticipation of better conditions later in the year. The property division is benefiting from more favourable US rates and sees good opportunities in this area.

Hiscox Bermuda
Gross written premiums for Hiscox Bermuda reduced by 15.7% to $117.2 million (2011:$139.0 million). This decrease is mainly due to the non-renewal of a pro rata treaty on a large US account as profit margins did not warrant the risk. Following the April renewal season Hiscox Bermuda’s premium income is growing year on year.

Hiscox Guernsey
Hiscox Guernsey reduced premium income by 10.7% to $26.8 million (2011: $30.0 million) as it maintains a disciplined approach to writing business in the piracy market. Hiscox Guernsey also benefited from a benign claims environment in the quarter.

Hiscox USA
Hiscox USA grew premium income by 21.6% to $47.8 million (2011: $39.3 million). This good growth is coming mainly from our management liability, construction, and terrorism product areas. The direct-to-consumer business is also performing well, benefiting from new distribution partnerships with several leading domestic insurers and agents. Q2 marketing projects to drive growth include a new advertising campaign, the season two launch of Hiscox’s series Leap Year and rolling out similar products to real estate and non-medical health care professionals.

As previously announced, after three years leading the US business to good growth and improved performance, Richard Watson will be returning to the UK to take up the role of Deputy Chief Underwriting Officer for the Group. Ben Walter has taken over as CEO of Hiscox USA, where previously he was COO.

Hiscox UK
Gross written premiums for Hiscox UK rose by 3.4% to £89.1 million (2011: £86.2 million). Strong growth and good retention offset the cancellation of a poor performing partnership (announced at the year end) and the cancellation of an agency agreement during 2011. The business is also benefitting from strong growth in specialty commercial lines and good retention in the art and private client business. The business plans to launch a TV advertising campaign in Q2 and Q3 building on an already strong Hiscox brand in the UK.

Hiscox Europe
Hiscox Europe increased gross written premiums by 7.9% to €69.4 million (2011: €64.3 million). This good growth is driven by the profitable speciality commercial, technology and media lines of business and the strong retention rates across all lines. The direct-to-consumer business in France launched a TV ad campaign during January and February resulting in good new business.

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Hargreaves Lansdown Corporate Solutions, the workplace savings provider and adviser, announces a new strategic alliance with Staffcare, the employee benefits software company.

Hargreaves Lansdown has licensed Staffcare’s software to enhance its Corporate Wrap proposition and functionality and provide total reward statements, flexible benefits and auto-enrolment administration facilities. The result will be the UK’s first fully integrated corporate wrap and flexible benefits solution.

Alex Davies, Managing Director of Hargreaves Lansdown Corporate and Pensions, says: Our Corporate Wrap offers employees an alternative to traditional company pensions and is gaining considerable traction in the market.  39 companies are now live. The additional functionality we can now deliver as a result of licensing Staffcare’s software gives it even more of a competitive edge.

”Hargreaves Lansdown has hired people into its corporate team with extensive experience, including Jeff Fox and Steve Briggs, both of whom have previously used Staffcare’s software and implemented some of the largest reward communication and flexible benefit schemes in the UK.

Alex Davies goes on to say, “After an extensive review of the benefit platforms available, we believe Staffcare is the clear leader. Its continually developed software and its new auto-enrolment service in particular will be a core part of our workplace savings proposition.”

“We are delighted to be working with Hargreaves Lansdown”, says Phil Hollingdale, Staffcare Founder and CEO.

“Their platform is a clear leader in the market and having worked closely with the team at Hargreaves Lansdown for some time I have every confidence they will quickly position themselves as a dominant player in the corporate space.  They have great software themselves and we believe working together we will secure significant market share. Platforms will become a necessity to support new auto-enrolment regulation and to satisfy the demand of internet savvy users in the workplace who want an engaging online experience.”

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Halifax has launched the UK’s first smartphone app which offers a ‘one stop shop’ for UK house hunters. The app combines property search facilities, mortgage affordability calculators, local area information and property buyers’ guides.

Available to download on iPhone, the free Halifax Home Finder app uses state of the art technology to revolutionise the way UK house hunters find and secure their dream home.

Offering more support to buyers than any other app, the Halifax Home Finder also incorporates the functionality of social media apps. The app allows users to manage the complex home buying process by enabling them to book viewings, rate properties, add comments and images of the property during viewings and subsequently share their thoughts with family and friends via an emailed PDF summary.

Other features of the Halifax home finder app include:

– Advanced augmented reality – enables homebuyers to view properties currently for sale in the surrounding area, wherever they are, simply by holding up their smart phone

– Built-in mortgage and repayment estimator – prospective buyers can work out how much they might be able to borrow and estimate their new monthly mortgage repayments

– Access to Land Registry data – giving extra information about previous sold prices which supports the crucial buying decision

– Local area guides – highlighting information such as distance from schools and train/tube stations in the local vicinity

– Homebuyer guides – contain useful hits and tips to support buyers through the home buying process

Whether serious buyers or just property voyeurs, the way people search for properties over the last decade has changed extensively, with more and more people looking to access information on the move. Recent Halifax online research shows that 62% of people who purchased a property in the last five years undertook their property search online, with 80% of those looking to buy in the next five years likely to search for their next property in the same way.
It also revealed that the percentage of buyers looking to use a smartphone to purchase their next property is expected to rise three-fold over the next five years compared to those who used a smartphone in the last five years.

The UK’s fascination with house prices and the desire to know what is happening on their doorstop remains high, with 31% of respondents regularly (a minimum of once a month) searching properties for sale in their local area, with 18% admitting to having no intention of buying them. Those aged between 25-34 (27% were the most prolific, with the highest regional proportion (23%) in the east of the country.

Managing finances and making purchases through online and web based technology is prevalent as almost 1 in 5 (17%) adults have spent more than £500 on an item without seeing it in person. When looking to purchase a property in the future, 13% of adults would initially use a mortgage calculator to estimate the maximum amount that they would be eligible to borrow from a bank/ building society – this rose to 19% of current smartphone users.
Stephen Noakes, Mortgages Director at Halifax, comments: “We know that today’s house hunters want to be able to carry out their searches on a daily basis and when they are on the move. So the Halifax Home Finder app is perfect – it means that you can search properties, book viewings, rate properties and get an indicative mortgage calculation in one place.

“It’s a fantastic development which gives house hunters all the tools they need using the latest technology available. Using augmented reality means that all a house hunter needs to do is lift their handset to see the properties for sale in the streets around them. Our aim is to provide house hunters with information and guidance to help them make sense of the residential property market and make better-informed property decisions. With this new app, our services will be easily and readily accessible whilst on the move.”

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The US Treasury is to sell $5 billion worth of shares in American International Group Inc. (AIG) in a stock offering, with the bailed-out insurer buying $2 billion. 

AIG, seen as a symbol of the excesses that epitomized the global financial meltdown in 2008, was saved from almost certain bankruptcy in September that year by the US government.

The Treasury announced in a statement Sunday that it would sell 163,934,426 shares of its AIG common stock at $30.50 per share in an underwritten public offering, its third such sale since the government intervened at the company.

“The aggregate proceeds to Treasury from the common stock offering are expected to be approximately $5.0 billion,” the statement said.

“As part of Treasury’s offering, AIG agreed to purchase 65,573,770 shares at the public offering price of $30.50 per share — representing $2.0 billion of Treasury’s expected proceeds from the sale,” it added.

The offering will reduce the government’s holding in AIG from 70 per cent to 63 per cent, according to the Treasury which first trailed the sale on Friday but without giving details. AIG shares closed at $32.83 on Friday, down 3.84 per cent.

US government assistance for AIG, which in 2008 was swept into a liquidity crisis by its exposure to credit default swaps on mortgage-backed securities, has amounted to more than $180 billion.

Washington, May 7, 2012 (AFP)

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