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Beijing authorities cancelled hundreds of flights and shut motorways on Monday as thick smog descended on the Chinese capital, reducing visibility at one of the world’s busiest airports.

Air quality in Beijing reached “hazardous” levels on Monday, according to the US embassy, which conducts its own measurements, while the official Xinhua news agency said pollution was likely to reach “dangerous” levels. By the middle of Monday afternoon, Beijing’s main airport — the second busiest in the world by passenger traffic — had cancelled 233 domestic and 17 international flights, according to its website. Another 400 flights were cancelled on Sunday.

Television footage of the airport concourse showed thousands of stranded passengers being turned away, or waiting around in hope of booking later flights if the smog lifted.

Most major motorways linking Beijing to other parts of north China were closed early Monday due to the smog, but sections of some roads began opening throughout the day as the visibility improved, CCTV reported.

International organisations including the United Nations list Beijing as one of the most polluted cities in the world, mainly due to its growing energy consumption, much of it from fossil fuels.

“Coal burning is the main cause of all the grey hazy days that Beijing gets,” Zhou Rong, an air pollution expert with Greenpeace China, told AFP.

“China has more than doubled its coal consumption in the last 10 years, so we are getting more soot in the air, as well as secondary pollutants like sulphur dioxide and nitrous oxide which also help cause the haze.”

Beijing’s nearly five million vehicles also emit a lot of the particulates that make up the capital’s air pollution, she added. Authorities in Beijing went to huge lengths to clean up the city’s air ahead of the 2008 Olympics, shutting down coal-fired power stations and restricting the number of cars on the roads, but air quality in the city remains bad.

Frequent smog in October and November has given fresh impetus to a growing public debate over air quality in Beijing, whose 20 million residents are increasingly worried.

Their concerns are being fuelled in part by data gathered by the US embassy, which produces its own pollution readings using a different gauge to Chinese authorities and broadcasts them online and on Twitter.

China currently rates air quality by measuring airborne particulates of 10 micrometres or less, adopting a standard known as PM10, while the embassy measures only levels of those that are 2.5 micrometres or smaller. Scientists say Beijing’s pollution is mostly caused by these smaller particles, which are deemed more dangerous to health as they can pass through smaller airways and penetrate deeper into the lungs, and even into the blood.  According to the state-run China Daily, if the US standard was adopted nationwide, only 20 per cent of Chinese cities would be rated as having satisfactory air quality, against the current 80 per cent.

Beijing, Dec 5, 2011 (AFP)

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Liz Latter has been appointed to the role of head of insurer development for Hastings Direct. In her role Liz will be leading the development of the Hastings panel proposition and insurer relationships, supporting the company’s wider growth plan for motor, home, bike and van insurance.

Liz has previously held business development and leadership roles with companies such as Travelers, Lloyd’s, Equity, The Broker Network, SSP and CGI and was director of business development at Sapiens most recently.

Liz will work closely with Adrian Parry, who has led Hastings’ panel development activities over the last two years. Adrian will be stepping back from his full time responsibilities with Hastings early in 2012, but will continue to support the business, in addition to pursuing other outside interests.

Tobias van der Meer, managing director, Hastings Direct: “Liz has extensive knowledge of working with insurance companies. Her knowledge of the industry, systems and her contacts will be instrumental in helping us build the panel and develop products that will benefit both our partners and our customers. I would just like to take this opportunity to welcome her to the team”.

Hastings has more than doubled in size in the past two years and continues to experience strong customer growth.  The multi award winning broker has offices in Bexhill and Newmarket and currently employs in excess of 1100 staff.  The company is on track to become a top five UK broker by 2012.

Source : Hastings Direct  

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Two executives from Aon Corporation have been named to Business Insurance magazine’s “Women to Watch” list for 2011 : Kristi Savacool, chief executive officer of Aon Hewitt, and Kelly Superczynski, senior managing director of Aon Benfield.

At least one Aon leader has been named to the “Women to Watch” list each year since the awards were announced in 2006.

As CEO of Aon Hewitt, Kristi Savacool leads a global organization that is solving our clients’ most pressing issues around health, retirement and talent. Under her leadership, Aon Hewitt is taking full advantage of the organization’s deep advisory and delivery expertise to create superior integrated solutions. The firm is analyzing the data and behavioral patterns from the more than 21 million participants in Aon Hewitt’s industry-leading benefits administration database to offer clients unique insights and thought leadership to solve an increasingly complex set of issues.

Kelly Superczynski is the global head of Aon Benfield’s Rating Agency Advisory team, which is responsible for delivering rating agency and accounting modeling and consultative services for Aon Benfield’s clients. Since joining the firm in 2003, Kelly has developed the team into the foremost Rating Agency Advisory group worldwide, with representatives in seven countries serving Aon Benfield clients across the globe. Kelly also manages Aon Benfield’s global Market Analysis practice group, which is responsible for reinsurer credit risk analysis and providing industry research and analytical insight to clients and brokers on the reinsurers with whom Aon Benfield places business. Under her leadership, the group introduced MarketReView, an award-winning, innovative portal that houses Aon Benfield’s proprietary reinsurer credit reports on more than 200 reinsurers.

“The strength of Aon’s ability to empower results for our clients lies with our people,” said Greg Case, president and chief executive officer of Aon. “Kristi and Kelly represent what Aon does best—understanding the distinct needs of our clients and offering innovative thinking and solutions that address today’s unique risk and people challenges. We congratulate Kristi and Kelly on earning this prestigious award and thank them for the outstanding contributions they are making to our clients, our firm and our industry.”

Business Insurance’s annual “Women to Watch” feature highlights an elite group of 25 women who are doing outstanding work in commercial insurance, reinsurance, risk management, employee benefits and related fields. A panel of the magazine’s senior editors selected this year’s honorees based on their recent professional achievements, influence on the marketplace and contributions to the advancement of women in business.

Source : Aon

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Recent research released by Bupa shows that HR managers blame overindulgence during the festive season for staff absence above any other cause of sick leave.

While 20 per cent of those polled believe that staff pull sickies as a direct result of overindulgence in the party season, a further 22 per cent believe that overdoing it weakens the immune systems of employees, leading to increased illness and absence, meaning that a total of 42 per cent of HR managers attribute December absence to festive overindulgence.

While flu, colds and upset stomachs are the most common reasons given by employees themselves for taking time off in December, just 33 per cent of HR managers believe that an increase in genuine illness over the period is the biggest cause of absence.

It’s mainly younger staff who are calling in sick with 50 per cent of those polled saying that staff under the age of 30 are the ones who take the most time off. Nearly half of HR managers (46%) say that women take the most time off in December, followed by 27 per cent who say men are the worst culprits.

The staff left behind are having to pick up the pieces with the majority of HR managers saying that December absence causes increased workloads for other staff (65%), more stress (35%) and an increase in customer complaints (21%).

78 per cent of the companies polled in the study have introduced policies specifically aimed at tackling December absenteeism, from introducing flu jabs and gym membership to more hard-line policies like threatening to withhold pay from those discovered pulling a sickie.

Dr Jenny Leeser, Clinical Director of Occupational Health, Bupa, said, “The winter months do see an increased rate of absence caused by seasonal illnesses, but the effect of the festive party season on the workplace cannot be ignored either. In any case, widespread absence causes increased workload and potentially increased stress levels for employees in work. Overdoing things isn’t good for anyone’s health.

“Businesses can prepare themselves ahead of this December dip, supporting employees who are being placed under increased pressure and putting measures in place to prevent sickness such as offering ‘flu jabs and encouraging a healthy lifestyle. But it is also up to the employee to take responsibility for their personal health, taking their employer up on the offer of a free ‘flu jab and taking positive steps to prevent illness, such as getting enough sleep, drinking sensibly and eating healthily.”

Healthcare provider Bupa recommends the following to help you stay healthy during winter:

– Ensure you have a balanced diet including at least five portions of fruit and vegetables a day to get the recommended amount of vitamins and nutrients.

– Cold viruses are often passed on by direct contact so, if someone has a cold you may be able to stop it spreading by maintaining good hygiene – and keeping your distance! For example, don’t share towels, do wash your hands in hot soapy water and clean surfaces such as door handles or toys that have been touched by the person who has the cold.

– Exercise helps by giving a sense of wellbeing and can also help relieve anxiety. A brisk walk for 30 minutes every a day can improve happiness and boost self-image. It is also good for keeping those extra Christmas kilos under control.

– Adults generally need eight hours sleep a night to allow the body to replenish energy stores and repair itself, so try to get some early nights if you need to catch up for the odd night out.

Source : Bupa

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Marsh has announced that almost half of U.S. property insurance policies have been renewed in the current quarter have been at higher prices.

Marsh said 48 per cent of property policies renewed in the fourth quarter have been at a rate at least 1 per cent higher. Nearly 20 per cent of policies have been renewed at rate increases of more than 10 per cent.

In addition, Marsh said nearly a fifth of renewals were done at flat rates with the prior policy.

With more than $70 billion in disaster losses worldwide this year, insurers are anticipating what they call a “hard market” or a period of pricing strength where they can consistently raise customers’ rates.

That would follow years of sharp price declines that in some cases left rates at decade-long lows. Marsh said across all policies, the average rate increase this quarter is 1.7 percent.

“While the market is not classified as ‘hard,’ it is increasingly difficult to achieve cost savings and more insureds are faced with modest increases at renewal,” Marsh said in its regular benchmarking report.

Source : Reuters 

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Managing Risks, Recognising Responsibilities

Thursday March 1st2012, Hotel Russell, London

The insurance industry is faced with new responsibilities, new risks and new challenges in a rapidly evolving global market place.

In a global environment where governments can no longer act as sole protector and risk officer of society, the insurance industry has a new opportunity for leadership, responsibility and growth. What role will the insurance industry play?

This unique one-day summit brings together the leaders of the industry to discuss the strategic direction for UK insurance. It brings in the perspectives of insurers, government, regulators and consumers.

 

Speakers include :

Chair: Barbara Ridpath, Chief Executive, International Centre of Financial Regulations

John Nelson, Chairman, Lloyd’s of London

Andrew Moss, Group Chief Executive, Aviva

Simon Lee, Group Chief Executive Officer, Executive Director, RSA Insurance

Rowan Douglas, Chief Executive Officer Global Analytics, Willis Group and Chairman, Willis Research Network

Mark Hoban MP, Financial Secretary to the Treasury, HM Treasury

Julian James, Chief Executive Officer, Lockton Companies and President, The Chartered Insurance Institute

Jeff Prestridge, Personal Finance Editor, Mail on Sunday

Robert Muir Wood, Chief Research Officer, RMS

Otto Thoresen, Director General, Association of British Insurers

 

JOIN THE DEBATE, network with your peers and gain new insight.

Book your place(s) and, as a subscriber of News Insurances, save £135 off the full fee. Quote “News Insurances” in the additional discount section of our online booking form. What’s more you’ll gain 15 CII CPD credits that can be included as part of your CPD requirement.

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Managing Risks, Recognising Responsibilities

Thursday March 1st2012, Hotel Russell, London

The insurance industry is faced with new responsibilities, new risks and new challenges in a rapidly evolving global market place.

In a global environment where governments can no longer act as sole protector and risk officer of society, the insurance industry has a new opportunity for leadership, responsibility and growth. What role will the insurance industry play?

This unique one-day summit brings together the leaders of the industry to discuss the strategic direction for UK insurance. It brings in the perspectives of insurers, government, regulators and consumers.

Subscribers of News Insurances, save £135 off the full fee. Quote “News Insurances” in the additional discount section of the online booking form.

REGISTER 

View Programme  

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Bancassurance for Advanced

Bancassurance aka Bank Insurance Model helps insurance companies to maintain smaller direct sales teams. This is already a well-established link between banks and insurance providers, but it is challenged by popping out technology opportunities and never-ending competition. Forced by the mentioned elements, Bancassurers are looking to improve how they implement these strategies. Unfortunately the up-to-date literature for such a niche topic is seldomly available.

Their ideas or concerns are discussed in the form of intradepartmental meetings or in LinkedIn groups such as ‘Bancassurance Europe’, but still face-to-face networking with competition remains the most efficient tool for knowledge collecting. At a meeting in Rome earlier this year Mr Stephan Moltzen, Head of Product Management Insurance from Deutsche Bank foretold: 2011 will be the most successful year since the past four or five years. It is expected to get to the same level as before the financial crisis, to reach the objectives lost in 2007.  Since no integrated “BIM 2011 bulletin” is being released,  industry experts have the chance to compare the results with prediction, because Mr Moltzen will be speaking at the upcoming 5th Annual Bancassurance Forum, this time about “retaining customer confidence in turbulent times.”

Participating speakers think that 2012 will belong to modifying pension & Life products with their complex presentation to the customer. In the upcoming year, Bancassurers should learn how to manage geographical differences between distribution strategies whilst focusing on the drivers of future growth in Bancassurance. Sharing the experience with industry professionals is boosting the new ideas from which the company can benefit. Readers of News Insurances will benefit from 15% discount of the registration fee. The Forum will take place in Barcelona, February 15-16 and program requests are submitted at barbora.kuckova@flemingeurope.com.

Contact :

Barbora Kuckova

+421 257 272 126

barbora.kuckova@flemingeurope.com

 

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Motorists are reassured by the Association of British Insurers as it has been announced there will be no extra charge on their motor insurance for fitting winter tyres.

Under an ABI commitment, ABI member insurers representing 90% of the motor insurance market confirm that they will not charge any additional premium if winter tyres are fitted, provided that the tyres meet, and are fitted in accordance with, the vehicle manufacturers’ specifications and are in a roadworthy condition.

Nick Starling, ABI’s Director of General Insurance, said: “Insurers do not want to penalise motorists who take steps, like fitting winter tyres, to improve their safety on dangerous winter roads. Last year cold weather came early and there was some uncertainty for customers about the insurance implications of fitting winter tyres. This commitment clarifies the position for motorists.”

While the insurers signed up to the commitment will not charge an additional premium for the fitting of winter tyres, some may require the customer to advise them that these tyres have been fitted. The commitment covers cars used for personal use, under a private or personal use car insurance policy.

The commitment does not cover fitting new wheels. Any motorist who has winter tyres fitted to new wheels should contact their motor insurer for advice.

Source : ABI

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November 30th officially marks the end of the 2011 Atlantic hurricane season. This year has seen 19 tropical storms, 7 hurricanes, and 3 major hurricanes (Category 3 or above on the Saffir-Simpson Hurricane Wind Scale) recorded.

Despite the same total number of storms forming in 2011 as 2010, the total insured losses will be significantly higher than those seen in 2010. RMS expects that total insured losses from the 2011 Atlantic Hurricane Season will be in the region of US$5.0 billion. The majority of losses are driven by Hurricane Irene in the U.S., causing losses in 14 states in total, with the states of North Carolina, New Jersey, and New York driving the majority of the losses.

The 2011 Atlantic Hurricane Season ties third with the 1887, 1995, and 2010 season in terms of number of storms, since records began in 1851. The numbers seen in 2011 is almost twice as high as the long-term average (1950-2010) of 10.5 and higher than the average since, and including, 1995 of 14.4, indicating that the Atlantic remains in a period of heightened storm activity.

The number of hurricanes and major hurricane seen in 2011 is only slightly above the long term average of 6.2 and just below the recent (1995-2010) average of 7.9.  On record, only eight seasons have had a lower percentage of hurricanes to tropical storms, two of which saw no hurricanes develop at all.

This year in the U.S., Hurricane Irene made landfall over the east coast in August, and in September, Tropical Storm Lee tracked over the coast of Louisiana.

Elsewhere across the North American continent, Hurricane Maria and Tropical Storm Ophelia made landfall over extreme eastern Newfoundland, Canada. Arlene, Nate, and Rina made landfall as tropical storms over Mexico, and Tropical Storm Harvey tracked over the Belize coast. Emily, Irene, and Maria tracked through the Caribbean.

RMS will issue a comprehensive review of the 2011 hurricane season in a white paper in January 2012.

Source : RMS

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Insurers for Michael Jackson’s ill-fated London comeback shows can study some of the star’s medical records, a US judge said Thursday, in a ruling that could affect a payout over his death. 

Lawyers for the King of Pop’s estate will get access to the records from medical providers and can show them to lawyers from Lloyd’s of London, Los Angeles Superior Court Judge Malcolm Mackey ruled.

Lloyd’s, which is resisting paying out on a $17.5 million policy because it did not know that Jackson was taking drugs before his death more than two years ago at the age of 50, filed suit against tour promoter AEG in June.

Attorneys for the Jackson estate and for Lloyd’s will both decide which of the medical records are relevant to the case and ask Mackey to mediate in any dispute.

The legal move came days after Jackson’s doctor Conrad Murray was jailed for the maximum four years following his conviction for involuntary manslaughter. He is expected to serve less than half the sentence due to California laws linked to overcrowding and budget concerns.

A six-week trial heard evidence from a number of witnesses about the various drugs Jackson was allegedly taking at least in the months before he died, including the anesthetic propofol.

Jackson died on June 25, 2009 from an overdose of propofol and other sedatives, administered by Murray in an attempt to help the star sleep while in Los Angeles, where he was rehearsing for the “This is It” comeback shows.

The trial also heard claims that Jackson, battling to resurrect his career from child molestation charges that left him with huge financial debts, stood to make $100 million from the 50 planned concerts.

Lloyd’s wants judge Mackey to rule that it does not have to pay out on the AEG insurance policy because it was not told about Jackson’s drug problems when the contract was signed.

Lloyd’s attorney Paul Schreiffer said Jackson waived any privacy rights he might have asserted before he died by signing an agreement for his medical records to be produced for the company. Schrieffer said Thursday’s ruling should help move the case forward, adding that it has sought the medical information for more than two years.

Lloyd’s issued subpoenas for the records on July 12, including two directed at Beverly Hills dermatologist Dr Arnold Klein and Dr Allan Metzger, who accompanied Jackson on a concern tour in the 1990s.

The Lloyd’s lawsuit against AEG claims the promoter did not tell the insurer about the singer’s medical history, “including, but not limited to, his apparent prescription drug use and/or drug addiction.”

The company also alleges AEG did not disclose the star’s use of propofol.  “There is evidence to suggest that Michael Jackson had a history of narcotic use, including but not limited to Demerol and propofol, the use of which may have resulted in his death, the Lloyd’s court papers say.

“Dr Klein was a (dermatologist) for Michael Jackson who administered Demerol to Jackson reportedly on a regular basis.”  The trial heard how Jackson would emerge from Dr Klein’s office drowsy and slurring his speech. In a chilling audio recording played in court the star was barely comprehensible, talking about his hopes for the London shows.

Los Angeles, Dec 1, 2011 (AFP)

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The French insurance market has recorded a 7 per cent drop in contributions in the first ten months of the year according to figures released by the French association of insurers (Association francaise de l’assurance). Bad figures for life insurance are to blame.

By the end of October, the life insurance sector showed a decline of 12 per cent, albeit a largely positive €17.7 billion of net inflows according to the association, which includes the FFSA and Gema.

The life insurance market has seen two consecutive months, September and October, of net outflows, which is a first timer.

Over the first ten months of the year, property insurance and liability insurance (primarily auto, home and business) were up 4 per cent, the highest level of growth since 2004.

Growth is primarily driven in damage insurance, where premiums increased by 6 per cent in late October.

News Assurances Pro  

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Scottish Life announced continued growth for its Governed Range. Around 6.5 per cent of all new individual business in the UK through IFAs is now using the Range.

Scottish Life’s Governed Range aims to make choosing and monitoring investments more transparent, by offering well-defined governance controls and lifestyling options at no additional cost.  The Range is based on a robust four-stage process of risk assessment; asset allocation; fund selection; and regular reviews.  This process helps ensure that the investment selection remains appropriate for the client’s identified risk profile throughout the lifetime of the plan.

Lorna Blyth, Investment Marketing Manager at Scottish Life, said: “The Governed Range has been a tremendous success since launch.  This is particularly true amongst advisers who have recognised the value of the Range in helping fulfil their regulatory obligations to focus on suitability of asset allocation and ongoing advice.

“For the adviser’s clients, the Governed Range can provide the additional peace of mind that their pension is being regularly monitored, and amended where necessary, to ensure the investments remain appropriate in relation to market conditions and client requirements.

“The fact that over 70 per cent of new individual pensions customers now have a Governed Range pension, which constitutes 6.5% of the entire UK new business market through IFAs, is clear evidence that this approach is much more attractive for many people than the traditional ‘one size fits all’ managed fund.

“These figures also demonstrate how providers and advisers can work together successfully to deliver effective solutions to the retirement planning needs of the UK’s mass affluent market.”

Source : Scottish Life

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AXA announces today that François Pierson, a member of AXA Group’s Management Committee and Chairman & CEO of AXA Global P&C, the global business line in charge of AXA’s Property & Casualty operations across the world, has decided to retire effective January 1, 2012.

“It is with emotion and pride that I look at my career at AXA. I would like to warmly praise the employees of AXA Global P&C, AXA Corporate Solutions, AXA Assistance and AXA Global Direct as well as AXA France’s teams who I have been honoured to lead during almost ten years. I am convinced that the quality and the engagement of these teams will help Jean- Laurent and Nicolas achieve our Ambition AXA objectives”, said François Pierson.

“François is a figure of the AXA Group’s history. I know that we will continue to benefit from what he has achieved and the quality of the teams he developed in his various roles. Together with the Board of Directors and the Executive Committee, I would like to very warmly thank him for his contribution. I have personally had the chance to work with François for more than 20 years and to enjoy his leadership skills, his great expertise in the insurance sector and also his sense of humour. I wish him the best in his future endeavours, notably as Chairman of the French national road safety Association”, said Henri de Castries, Chairman and Chief Executive Officer of AXA.

François Pierson will remain a Director of several AXA Group companies, and notably Chairman of AXA Corporate Solutions.

Commenting on the appointments of Jean-Laurent Granier and Nicolas Moreau, Henri de

Castries added: “I am very confident that Jean-Laurent will pursue the strategy initiated by François for the Group’s P&C activities, which have been one of the pillars of our operational performance for many years. I am convinced that he will also bring his experience and his vision to the Management Committee. I would also like to wish the best of luck to Nicolas in his expanded responsibilities. I am confident that Nicolas’ leadership and strategic insight   will help us further develop AXA Assistance and AXA Global Direct”.

Source : AXA Press Release

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New claims for US unemployment insurance rose slightly for the second straight week, the government reported Thursday, a day ahead of the November jobs market data. 

The number of people registering for jobless benefits rose to 402,000 in the week ending November 26, the Labor Department said. The department upwardly revised the prior week’s number to 396,000 claims.

Most analysts expected claims to fall last week amid an easing trend in the weekly data. The four-week moving average, which helps to smooth volatility, rose by only 500 from the prior week to 395,250.

The sluggish US economy is not growing enough to make a significant reduction in high unemployment as the labor force continues to expand. But the claims numbers suggested the ailing labor market has stabilized.

On Friday, economists expect the Labor Department will report the unemployment rate was unchanged at 9.0 per cent for the second month running in November. Since May 2009 the jobless rate has been stuck at 8.8 per cent or higher.

Most analysts expect the Friday data will show that the economy generated a net 123,000 jobs in November: 141,000 from the private sector offset by a net 18,000 layoffs in the public sector.

Washington, Dec 1, 2011 (AFP)

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Allianz announces that its Clear Private Car product is now available via specialist motor insurance broker Adrian Flux.

This is the second Clear product available through Adrian Flux following the successful launch of Clear Home in 2010. Brokers will be able to access the product electronically through Adrian Flux’s software house provider.

Adam Marshall, head of broker sales and distribution, Allianz Retail said: “By providing our Clear Private Car product on the broker’s software house platform, it opens up a new area of business for Allianz. As our relationship with Adrian Flux continues to grow, we hope to eventually promote the full Clear product range with the broker on their operating platform. “

Source : Allianz

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Groupama announces the appointment of the new management team and their reporting lines in the company’s new organization.

Thierry Martel, General Manager and Christian Collin, Chief Operating Officer announced the appointment of Groupama’s principal directors.

Thus, Pierre Lefèvre, Director General International and Subsidiaries, Lungart Michel, Director Insurance, Banking and Services and Sylvain Burel, director of communications, directly report to Thierry Martel.

Benoït Maes, Group Chief Financial Officer reports to Christian Collin.

Head of Supports and Services, Human Resources Management Group and the National Federation Groupama are attached to Thierry Martel. While the Strategy, Mergers and Acquisitions, Audit, Risk and Internal Control Reinsurance and steering and the General Secretariat are attached to Christian Collin.

Source : News Assurances Pro

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Recent years have witnessed unforeseen natural disasters, political upheaval in North Africa and appalling weather conditions affecting travellers across Europe. Yet, in what would seem the perfect conditions to sell travel insurance, the challenges are as great as ever.

Despite the media’s focus on these risks, most travellers regard these incidents as one-offs unlikely to affect them on their long-awaited holiday. Demand for protection often only lasts as long as the media coverage. This is not helped by many travel insurers reluctance to cover such trouble and strife. One of the challenges has been to develop travel insurance that can address these risks with more innovative providers adding trip disruption and volcanic ash cover to their portfolio.

Over the last two years, the number of trips abroad has reduced year-on-year by over 20% as the economic climate took its toll, shrinking the potential travel insurance market. With travellers choosing to reduce the duration of their holiday or opting for short-haul against long-haul, the premium pool has also been dropping, putting pressure on all insurers to manage costs more effectively.

However, in recent months, the impact of these incidents, continuing currency weakness and medical inflation have led many insurers to increase premiums. Provided the upward movement is industry-wide and not short-term, this is no bad thing in a market where travel insurance premiums have stagnated for the last 10 years. But with changes in price comes increased competition – in particular when annual policyholders react to rate change by looking around. This increases the acquisition cost for all direct providers, adding to the challenge.

Turning to customer acquisition, many travel insurance providers have benefited greatly in recent years from the aggregators. As inter-aggregator competition starts to increase across all insurance products, so do the significant marketing costs. Sponsorship of prime-time television and free cuddly toys has meant upward pressure on the cost to the providers to help fund the marketing budgets. The purchase of BeatThatQuote by Google, and the potential competition that this will create, can only add to the aggregator market share.

Consumer Intelligence reported earlier this year that 52% of travel insurance quotations were via comparison sites, with 75% of customers confirming that price was the key motivator for choice of provider. No surprise, then, those such customers are the least brand-loyal and least likely to promote the value of their insurance provider. In other words, the cost of acquisition is higher and the lifetime value of that customer is lower. Now that is a big challenge but one that many of us have to consider.

At the other end of the spectrum, the growth of added-value accounts (AVA) and possibly the customer’s awareness of what is being offered has seen the bancassurance market share increase from 8% to 18% in the 12 months to February 2011. However, too much of a good thing can backfire and many AVA providers are re-considering their travel insurance offering under pressure from the Financial Services Authority (FSA). The regulator has announced a review later this year to determine whether packaged travel insurance offers good value and suits the needs of the typical AVA customer.

As travel insurance providers have learned in recent years, the introduction of further regulation leads to increased fulfilment cost in time and money. However, the cost of regulation for travel insurance with its lower average premiums is proportionately so much higher than other Personal Lines products. At what point does it become too much, especially with other, more rewarding insurance products to sell?

The task for us all is to manage any increase in costs while retaining existing customers, attracting new ones and maintaining our brand identity in a reducing target market. It is survival of the fittest but, then again, that’s always been the case and the travel insurance industry is not alone in facing these challenges.

Greg Lawson, Head of Retail at Columbus Direct

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TD Direct Investing has launched the Global Investor Confidence Study. This is the biggest investor confidence survey that takes the pulse of thousands of retail and expat investors across the globe.

TD has been indexing investor confidence for the past six years and, from today, retail investors across the globe can take part in the survey to share their confidence in investing, the markets, the economy and even pop stars and sportsmen. The survey can be accessed here www.investorconfidencesurvey.com/ and the results will be announced in the New Year.

New CEO of TD Direct Investing, Stuart Welch commented: “The economic crisis has rumbled on for a number of years now and its effects can be felt by investors across the globe. Previous years’ findings show that optimism certainly slumped during the credit crisis, but did not descend into distrust. Indeed the past five years have seen retail investors’ optimism steadily grow in the UK economy.

“But, with ongoing Eurozone issues and worldwide market volatility will investors shift their confidence from Europe and America to the Asian markets? Or is there any difference between the way men and women invest?  And how secure do we feel in the current economic climate across the globe? These are some of the questions we will be looking at this year.”

Research findings from surveys taken between 2006 and 2010 have been mapped out here www.investorconfidencesurvey.com/infographic/ which includes an indication of how investor confidence in the UK stock market has evolved and fluctuated over the years. Surprisingly investors were at their most confident last year: with 45% very confident, higher than investor confidence in the pre-crisis days of 2006 (at 42%) and despite the sharp drops to 29% in 2007 and 14% in 2008.

Source : TD Direct Investing

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HSBC Global Asset Management has launched HSBC GIF Frontier Markets fund. This is a long-only equity portfolio offering institutional and retail investors exposure to the next generation of emerging markets.

The existing HSBC New Frontiers Fund, which was originally launched in February 2008 as a Luxembourg based SIF (Specialist Investment Fund – as Frontier Markets investments were not UCITS compliant at that time), has been merged into the new HSBC GIF Frontier Markets fund.

Until now Frontier Markets have been primarily available to institutional clients however HSBC GIF Frontier Markets Fund will offer a retail share class (Minimum US$5,000) as part of HSBC Global Asset Management’s global flagship platform, the Luxembourg-domiciled Global Investment Funds (GIF) range, which is available for sale in more than 30 countries. The newly launched portfolio will offer daily dealing.

Andrea Nannini, who had been managing the HSBC New Frontiers Fund since launch, and is responsible for managing some US$170m in Frontier Markets assets, (as at 30 November, 2011) will manage the newly created portfolio, with the same objective of aiming to achieve long-term capital growth by investing in the securities of companies located in or operating in Frontier Emerging Markets. As with the former fund, the HSBC GIF Frontier Markets portfolio is benchmarked against the MSCI Frontier Markets Capped Index.

Frontier markets, a subset of emerging market nations, which include countries such as Qatar, Nigeria, Pakistan, Vietnam, Romania and Argentina are typically at an earlier stage of economic, political and financial development, offering potentially higher growth rates and returns over the long term, albeit with a higher risk profile than traditional emerging market nations.

Andy Clark, Head of Wholesale, EMEA, HSBC Global Asset Management, said: “The availability of HSBC Frontier Markets expertise in the GIF format with a retail share class caters for the demand from those investors seeking exposure to the next generation of global emerging markets, offering investors a further level of portfolio diversification.

“The HSBC GIF Frontier Markets fund gels well with HSBC Global Asset Management’s objective of being the world’s leading manager and distributor of emerging market products. HSBC’s research forecasts that by 2050 the collective size of the economies we call ‘emerging markets’ will increase five-fold and will be larger than the developed world, with 19 of the 30 biggest economies being from the emerging world.”

HSBC Global Asset Management is one of the leading managers and distributors of global emerging markets products with US$139bn invested in this asset class.

The fund’s annual management charge is 1.75% for retail investors (A class) and 1.25% for institutional investors (I class). The minimum investment for retail investors is US$5,000 and US$1,000,000 for institutional investors.

Source : HSBC