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Greece’s debt crisis and ensuing cutbacks have played havoc with public health with a spike in ailments, suicides and depression, experts say, amid warnings of a “Greek tragedy” in the making. 

“Overall, the picture of health in Greece is concerning,” said David Stuckler from Britain’s Cambridge University who piloted a letter published in The Lancet recently entitled “Health effects of financial crisis: omens of a Greek tragedy”.  “It reminds us that, in an effort to finance debts, ordinary people are paying the ultimate price: losing access to care and preventive services, facing higher risks of HIV and sexually transmitted diseases, and in the worst cases losing their lives.”  An Athens osteopath, speaking to AFP, said patients only came to him in dire condition with “either frozen backs or unable to walk”, whereas earlier about half the number came “for wellness treatments”.

“I find my patients very much more under pressure and stressed, their incomes are declining,” the osteopath said, adding that their relations at work and in the neighbourhood were strained, leading to muscular and bone ailments.

“Often they do not understand why they are in this state and tell me that they have not made any sudden movements or picked up heavy weights,” he said.

The Lancet document underlined that the number of suicides had risen by 40 per cent in the first quarter of this year compared to the first half of 2010 and that many were prompted by the inability to pay back loans.

However the suicide rate is much lower than in northern Europe. In 2009, it stood at three per 100,000 people or about a third lower than the European average, according to Eurostat.  “Violence has also risen, and homicide and theft rates nearly doubled between 2007 and 2009,” The Lancet said.

A depression helpline operating on a daily basis from May 2008, also said it had seen a spurt in callers.

“In particular, from January to June 2010, 14.3 per cent of the phone calls had to do with the economic crisis whereas from January to June 2011, 28.7 per cent of the phone calls address this issue,” said Eleni Louki from Depression Helpline.   Louki said 64.4 per cent of callers were women and 61.6 per cent were from Athens and surrounding areas.  The health ministry meanwhile said one Greek man in four and one woman in three suffered from depression — far higher than the global average of one out of eight and one out of five respectively.  Greece has a sovereign debt of over 350 billion euros ($480 billion) and faces interest repayments of 17.9 billion euros in 2012, up from 16.3 billion euros in 2011.

Athens has been kept waiting for two months for a slice of bankrupcy-saving funds, part of a 110-billion-euro ($150-billion) loan from the European Union and the International Monetary Fund contracted last year.

Accused by its peers of dragging its feet over tough economic reforms promised in return for the money, the government has gone into spending cuts overdrive this past month, pushing through new austerity legislation that has caused wide protests. Budget cuts in vital sectors such as health could lead to a spike in HIV infections, “after the loss of a third of the country’s street-work programmes” between 2009 and 2010, The Lancet warned.

“The latest data suggest that new infections will rise by 52 per cent in 2011 compared with 2010 (922 new cases versus 605), with half of the currently observed increases attributable to infections among intravenous drug users.

“Many new HIV infections are also linked to an increase in prostitution (and associated unsafe sex),” it said.

The budget cuts have also hit psychiatric and mental health institutions, according to Stelios Stylianidis, a psychiatry professor at the Pantion University in Athens.

The only silver lining in the crisis and resultant budget cuts is that Greeks are drinking less and alcoholism is on the decline, The Lancet said.

“There have been marked reductions in alcohol consumption and, according to police data, drink-driving has decreased,” it said.

Athens, Oct 18, 2011 (AFP)

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A South African outbreak of a multi-drug resistant “superbug” has been contained after it infected nine patients of whom three were still in quarantine, a hospital group said Monday.   

Two patients infected with the NDM-1 (New Delhi metallo-beta-lactamase 1) died but are suffering from other chronic diseases, said Joy Cleghorn, infection prevention risk manager at Life Healthcare.

“Four have been discharged and three remain isolated,” she told AFP about the patients at the hospital east of Johannesburg.

The NDM-1, first detected in 2009, is a gene that enables some types of bacteria to be highly resistant to almost all antibiotics.

Only two other cases have been recently reported in South Africa.

“Around the same period, one month ago, there has been an outbreak in a public hospital of Johannesburg,” said Cleghorn.

The patients at the private Life Glynnwood Hospital, in Benoni east of Johannesburg, had not travelled to India and the illness was “a secondary contact”, she said.

The first African infections were reported in Kenya and they have also been found around the world including in Australia, Britain, Japan and the United  States.

Johannesburg, Oct 17, 2011 (AFP)

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To ensure auto enrolment plan will go smoothly, Standard Life launched a report detailing new research into the measures that need to be taken by government, employers and industry.

According to the report, developed with academics from the University of Edinburgh, people want to save more – but need clear communication and guidance to help them. On the back of the report Standard Life is calling for a number of initiatives to be considered by UK Government to maximise the positive impact of auto-enrolment.

The key findings of the report are:

– Auto-enrolment could create an additional six million people saving, adding £12.5bn annually to retirement savings by 2017

– With the right communications, opt out rates could be as low as 18%

– Possible extensions to auto-enrolment could each see employees saving an extra £13bn-14bn annually by 2025, doubling the impact of next year’s reforms

– Almost a third (31%) of employees surveyed who plan to stay enrolled would be willing to pay more than the basic 4% contribution rate and would also be willing to increase their contributions automatically whenever they receive a pay rise

– 48% of employees surveyed said they would find it easy to save an additional £50 a month right now if they had to.

David Nish, Chief Executive of Standard Life, said:

“Standard Life fully supports auto-enrolment into workplace pensions which we believe offers a unique opportunity to put in place an affordable and sustainable pension system for millions of people working in the UK.  We believe that auto-enrolment can help re-introduce a savings culture in the UK and be an important first step in bridging the savings gap.

“The ‘Keep on Nudging’ Report makes some practical recommendations which can help make auto-enrolment a resounding success. It may seem obvious, but carefully designed communication is essential in achieving results.  By presenting information about auto-enrolment that is clear and effective, which provides a clear picture of the value of employer contributions and the tax advantages, our research found that 82% of people would remain enrolled in their pension scheme. This is a hugely encouraging finding.

“The current economic climate presents many challenges. Yet our research found that the majority of people are still keen to prioritise saving, particularly when they are helped to understand what it means to them, both now and in the future.

“This is just a first step however, and our report also highlights two potential extensions to auto-enrolment.  Each of these could add £13-£14bn in retirement savings annually by 2025, over and above the £12.5bn we expect from auto-enrolment alone, and as such are worthy of further investigation.

“I believe that, working together, employers, the long-term savings industry and government can realise the full potential of auto-enrolment.”

Keep on Nudging was developed in partnership with Professor Dr. Ed Hopkins and Dr. Tatiana Kornienko, behavioural economists at The University of Edinburgh. Its aim was to identify how to maximise the potential of workplace savings to help those on low to medium incomes (the squeezed middle) to save for retirement. The research is based on a survey of over 600 employees nationwide, all earning between £18k-45k a year – the “squeezed middle”.

The key finding from the report indicated that when information is presented clearly and effectively, 82% of employees who would be auto-enrolled would not opt out. Of those who would opt out, a fifth said they save in other ways, through property for example.

Interestingly, over a third of those who would remain enrolled suggested they could be encouraged to save more. More surprising was that over 70% of all respondents said they would not find it difficult to save an additional £50 a month if they had to, with 48% saying it would be easy to do so.

The research also investigated two high impact extensions that could build on the principles of auto-enrolment and boost savings rates further:

– Auto-escalation of pension contributions, where an employee is enrolled at the 4% default rate and this contribution level increases by 0.5% automatically each time they have a pay rise. Only 4% of people who currently have some form of pension savings said they would opt-out.

– Auto-enrolment into workplace ISAs, where employees are auto-enrolled into both a workplace pension and a workplace ISA (investing 2% of income). When this was tested, only a minor increase (3%) in opt outs occurred.

On the back of the report Standard Life is calling on policy makers and industry to:

– Develop guidelines for auto-enrolment communications that create a greater propensity to save – to be applied widely and consistently.

– Agree a set of fact-based messages to be used in communications around retirement savings and in financial education for the next three years. The success of the “5 a day” campaign is an excellent example of this.

– Consider sending a letter to everyone on their 30th birthday, with education and guidance on retirement planning, as this seems to be a pivotal moment in a person’s attitude to long term saving.

– Reserve the use of the word ‘pension’ for the State Pension, which would only be one component of people’s retirement income.

– Start working on the design of the next step in auto-enrolment now, so that changes may be implemented quickly after the 2017 review.

Source : Standard Life

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Babies who are born early and small are five times as likely as normal infants to develop autism, according to a  two-decade-long US study released Monday.   

Premature babies have long been known to risk a host of health problems and cognitive delays, but the study in the journal Pediatrics is the first to  establish a link between low birth weight and autism.

US researchers tracked 862 children from birth to young adulthood. Those in the study were born between 1984 and 1987 in three counties in New Jersey. The children weighed between 500 and 2,000 grams (1.1 to 4.4 pounds) at birth.

Over time, five percent of the low-birth weight babies were diagnosed with autism, compared to the one percent prevalence in the general population.

“As survival of the smallest and most immature babies improves, impaired survivors represent an increasing public health challenge,” said lead author Jennifer Pinto-Martin, director of the Center for Autism and Developmental  Disabilities Research and Epidemiology at the University of Pennsylvania  School of Nursing.

“Cognitive problems in these children may mask underlying autism,” she  added, urging parents to get their child tested if they suspect autism  spectrum disorder.

“Early intervention improves long-term outcome and can help these children  both at school and at home.”

Autism is the term for an array of conditions ranging from poor social interaction to repetitive behaviors and entrenched silence. The condition is rare, predominantly affecting boys, and its causes are fiercely debated.

Washington, Oct 17, 2011 (AFP)

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New research from Confused.com shows too many drivers use their phones behind the wheel. Almost half 40% (38.95%) of motorists actually check their phones whilst driving, with 27% admitting to logging onto Facebook behind the wheel. Almost half (45%) will not start their journey unless they can see their phone. Knowing that drivers are four times more likely to crash when using a mobile phone these findings are

The increasing popularity of Facebook and Twitter means that the ‘Twitch Factor’ is on the rise, with one fifth of motorists not being able to last more than 15 minutes without checking their phones.  15% of workaholicmotorists take advantage of time stuck in traffic to catch up on their workcalls or emails, and over one fifth (21%) update their status whilst caughtbehind a red light.

Surprisingly, although 75% of motorists are aware of the penalty for being on their phone behind the wheel, 60% of them still answer their phone when they’re driving. The ignorance of drivers suggests a harsher penalty should be introduced, with over 50% of motorists supporting this idea.

Adrian Walsh, Director of RoadSafe says: “It’s a frightening thought that people are checking their smartphones whilst driving. Many studies from across the world prove that drivers using phones are slower to respond than those who are just over the drink-drive limit.  It is dangerous to use a phone – even hands free when driving.”

To encourage drivers to stop using their phones while on the road, Confused.com have teamed up with iSpeech, creators of the iPhone app ‘DriveSafe.ly’.  The app speaks email, SMS, Facebook and Twitter messages aloud and lets you respond by voice allowing drivers to concentrate on the road and stop texting while driving.

Confused.com developed an application with iSpeech that can read the content of an email, SMS, Facebook and Twitter messages out loud. This should already help reduce the number of drivers manipulating their phone behind the wheel. Yet what can help them responding to these messages they receive ?

Gareth Kloet, Head of Car Insurance at Confused.com says: “Our research shows that although people are aware of the consequences involved, they struggle to tear themselves away from their mobile phones and social media.  Using these devices while driving is incredibly dangerous and app’s such as DriveSafe.ly which are designed to protect drivers should be welcomed.”

Source : Confused.com

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Axa Real Estate announced it has completed the acquisition of the IBIS London City Hotel for £38.35 million, on behalf of the Co-operative Insurance Society from Mangrove Securities.

Providing a total of 348 rooms, arranged over 10 floors, with a 150 cover restaurant and bar, the IBIS London City Hotel is situated in a prime location on 5 Commercial Street in the City of London. Conveniently positioned for both business travellers and tourists, it is within walking distance from three underground stations, as well as Liverpool Street, the City’s largest mainline station. It is anticipated to profit from the increased number of visitors expected for the upcoming 2012 Olympics, particularly given its location on the Eastern fringes of the City and its connections to the Olympic Site in Stratford.

The hotel is operated by leading hotel group, Accor, which already operates 70 of the hotels within Axa Real Estate’s managed portfolio, further expanding the relationship between them. The current rent for this hotel is £2.6 million per annum (£7,600 per room per annum), with a total of 19 years left on the FRI (Fully Repairing and Insuring) lease to Accor UK Economy Hotels Ltd.

The hotel trades under the IBIS brand, as a “contemporary economy London Hotel”, which is the European leader and fourth globally within this market. With a well secured tenant and the opportunity to benefit from rental increases linked in part to turnover, income from this acquisition is expected to grow in line with an increasingly profitable economy hotel market.

Commenting on the acquisition, Huw Stephens, Head of UK Transactions at Axa Real Estate, said:

“This acquisition further demonstrates Axa Real Estate’s ability to source deals that are specifically tailored to clients’ investment requirements. This is made possible through our specialist local teams who have a specific understanding of value drivers in each real estate sector.”

Gael Le Lay, Head of Hotel Investment at Axa Real Estate, said:

“The hotel offers a visible and long term income stream with growth potential, given that we continue to see increased profitability in the economy hotel market. It strengthens our belief that, as an asset class, the hotel sector fits well with our clients’ current investment strategies. The acquisition of this latest asset takes our portfolio of European hotels close to 100.”

Source : Axa Real Estate

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A panel of insurance technology experts have concluded that business leaders and IT managers should better interact to maximise benefits.

The conclusion is that to achieve maximum benefits from standardisation, multinational insurance companies must tighten relations between IT managers and business managers.

The panel discussion at the annual Insurance Technology Congress entitled ‘Can Systems Really Differentiate Your Business?’ assessed the challenges national and multinational insurers face and how IT can ease those.

The panel agreed that systems are an important component in differentiating organisations and that further investment in legacy systems would be necessary to bridge the gap to more permanent solutions. The debate then turned to the issue of standardisation in the context of driving consistency within organisations spread across different territories.

Jim Sadler, Chief Information Officer for Xchanging UK insurance sector, said: “The trick is configurability within IT systems, to allow the back-office to operate consistently, while allowing the front end to be tailored to each location.”

In doing so and with close IT and senior team collaboration, the panel felt insurers would gain the most from both standardisation and customisation. “In this way, global standards are achievable through back-office consistency while allowing the front end and customer facing aspects to be more bespoke”, Jim added.

The panel also viewed standardisation, as a means of achieving consistency across multiple territories, was in itself a differentiator. For such large-scale projects to work, the panel were unanimous that strong partnerships between IT managers and business managers were essential.

At the end of the session, 78% of delegates voted ‘yes’ to the question: can systems differentiate your business?

Source : Xchanging

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Scottish Widows’ insurer financial strength rating has been downgraded to ‘A’ from ‘AA-‘.  Fitch Ratings also downgraded long-term insurer default rating to ‘A’ from ‘A+’, and gives both ratings a stable outlook.

Fitch has additionally downgraded Clerical Medical Investment Group Ltd’s (CMIG) IFS rating to ‘A’ from ‘A+’ and Long-term IDR to ‘A-‘ from ‘A’. The Outlooks on CMIG’s IFS and IDR are Stable. The agency has also downgraded SW’s subordinated debt rating to ‘BBB+’ from ‘A-‘ and Clerical Medical Finance plc’s subordinated debt ratings ‘BBB’ from ‘BBB+’.

The downgrade of SW and CMIG’s ratings reflect the downgrade of the companies’ ultimate parent, Lloyds Banking Group (LBG), from ‘AA-‘/Stable to ‘A’/Stable based on Fitch’s expectation of a weaker probability of support (see “Fitch Lowers UK Support Rating Floors” dated 13 October 2011 at www.fitchratings.com).

The bank’s IDR constrains the insurance companies’ IDRs and IFSs reflecting the strong strategic link between the insurance operations and the banking parent. Fitch considers the standalone financial position of both insurance companies’ to be strong with solid capitalisation. SW’s standalone financial profile is stronger than the rating incorporating the drag from the bank. In Fitch’s opinion, SW’s franchise and market position is stronger than CMIG’s, which is largely closed to new business.

CM’s Outlook is Stable, reflecting Fitch’s opinion that there is greater certainty over the business’s continuing position in the group following the strategic review in June 2011 by LBG.

Both entities’ ratings are linked to LBG’s ratings. An upgrade or downgrade of LBG could lead to corresponding rating actions on SW and CMIG. In particular, CMIG could be downgraded if its strategic importance to the group declined, or if Fitch considered that its standalone profile had worsened. An upgrade of either SW or CMIG is unlikely in the near term.

Source : Fitch Ratings

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German, French and UK motor insurers should face an uphill struggle for profitability, and may not reach breakeven on their underwriting results before 2012 at best in the U.K., likely later in Germany and France. This is according to a new Standard & Poor’s report entitled “Motor Insurers in Germany, France and the UK, Face a Long road to Recovery”. 

Here is S&P’s release :

“This is because they operate in mature and highly competitive markets, where competition for customers has depressed insurance premiums in Germany and France, while in the U.K. premium increases could not keep track with rising claims,” said Standard & Poor’s credit analyst Johannes Bender.

“This has dampened underwriting performance, known in the industry as technical results, in all three markets.

“Meanwhile, given the currently strained capital market conditions, we expect companies will find it difficult to compensate these poor technical results with income from investing the premiums they collect from insured parties,” said Mr. Bender.

The report says that motor insurers in all three markets have been able to increase their prices recently, which has lead to signs of recovery in underwriting performance. However, the markets still face challenges and we therefore think it unlikely that motor insurers will over the next two years be able to achieve combined loss and expense ratios much below 100%, the industry’s measure of profitability that is calculated by taking the sum of incurred losses and expenses and then dividing them by earned premium. In Germany, for example, we expect motor insurers will expand premiums modestly 2011 and 2012 through new pricing strategies, which should benefit their technical results, the report says. Yet, we don’t expect this will be enough to prevent further technical losses given the rise they are seeing in winter claims as well as ongoing competitive downward pressure on insurance tariffs. We also don’t expect the recovery in pricing will be enough to offer German insurers such a pronounced cyclical upswing in the coming years as they experienced in the past cyclical upturn.

Similarly, our outlook for the U.K. market is only mildly positive, mainly because insurers are experiencing a rise in bodily injury claims. Companies’ have responded to these mounting claims primarily by instigating hefty price rises, which, along with other underwriting initiatives, gave underlying performance a boost in 2010. We expect that this upward earnings trend will persist in 2011 as recent price increases flow through into premiums. Yet, we doubt the sector will achieve overall profitability until 2012 and don’t believe price rises offer a long-term solution to compensate personal injury claims inflation.

In France, too, market players have responded to rising bodily injury claims by hiking insurance prices. High numbers of market players, in particular the significant presence of mutual insurers, are keeping up the competitive pressure. Nonetheless, given the low GDP forecast for France and likely subdued investment income, we see stringent pricing as the main source of growth in this market.

Source : S&P

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Ten people have been sentenced for a ‘crash for cash’ conspiracy to defraud insurance companies. Ringleader Ali Askher, 45, of Silverwood Road, Peterborough was jailed for three-and-a-half years at Peterborough Crown Court yesterday (Wednesday).

Askher ran two claim management companies in the city – Millfield Accident Claims Specialists and Premier Claim Specialists – and was the main player in the plot which had the potential to defraud insurance companies out of more than £439,000.

Police launched an investigation into fraudulent insurance claims in 2008 – more than 30 incidents were investigated and 10 claims found to be fraudulent. The claims included accidents that had never happened, exaggerated injury claims and incidents where vehicles were taken to remote locations and crashed.

Askher pleaded guilty to conspiracy to defraud along with: Shawizia Khatoon, 33, of Hankey Street, who was sentenced to 51-weeks in prison, suspended for two years, and ordered to carry out 220 hours’ unpaid work; Ali Arshad, 39, of Harris Street, who was given a 38-week prison sentence, suspended for two years, and ordered to carry out 200 hours’ community service; Rozmina Nathoo, 44, of Briar Way, who was sentenced to a 40-week jail term, suspended for two years, and 200 hours’ unpaid work while her husband Taswin Nathoo, 47, of Briar Way, was sentenced to 28 weeks’ imprisonment, suspended for two years, and ordered to carry out 200 hours’ unpaid work.

Four others pleaded guilty to fraud and were sentenced as follows: Naeem Akhter, 28, of Clare Road, Millfield, was given a 28-week prison sentence, suspended for two years, and 200 hours’ unpaid work; Wahid Hussain, 39, of Gladstone Street, 28-weeks’ imprisonment, suspended for two years; Misbah Hussain, 30, of Harris Street, 12-month community order and 200 hours’ unpaid work; Shafaqat Hussain, 27, of Harris Street, 28-week prison sentence, suspended for two years, with 200 hours’ unpaid work.

Mohammed Faisal Ali, 20, pleaded guilty to two counts of fraud and was sentenced to a 12-month community order with 260 hours’ unpaid work.Detective Constable Greg Page, who led the investigation, said: “This was a sophisticated conspiracy where the main players sought to cash in by making false claims.

“This type of offence is very serious and is not a victimless crime. Fraudulent claims cost the insurance industry a vast amount of money and that ultimately has a significant effect by pushing up premiums for everyone else.”

Insurance Fraud Bureau (IFB) director Glen Marr added: “The insurance industry has effective controls in place to systematically, on a daily basis, root out individuals and networks attempting to defraud insurers. Collaboration with police forces across the UK is an integral feature of these industry efforts and this is bringing organised fraudsters to justice. Commit insurance fraud and the likelihood is you will be caught and face the personal consequences, including the prospect of a criminal record.

“The criminal activity commonly known as ‘crash for cash’, has an impact on genuine insurance consumers. Insurance fraud adds on average an extra £44 to each annual insurance premium.

Protecting the interests of genuine consumers is at the very heart of the industry counter-fraud strategy.

“The IFB urges anyone with information on any kind of insurance fraud, to do the right thing and help identify these criminals. Calls can be made to the free and confidential IFB Cheatline on 0800 328 2550, or reports made online at www.insurancefraudbureau.org/report”

Source : IFB

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Standard & Poor’s new report entitled “Sovereign Exposure and Market Volatility Could Pose Heightened Threat To Ratings On Global Multiline Insurers” was released today. This report shows that the continuing adverse conditions in investment markets are putting insurer financial strength ratings on global multiline insurers to the test.

Here is S&P’s release :

“Our attention is particularly focused on capital adequacy, which we have flagged as a rating weakness for many of the global multiline insurers (GMIs) covered in this report, particularly given the once again tumultuous investment markets,” said Standard & Poor’s credit analyst Lotfi Elbarhdadi.

“However, our concerns are tempered by our positive views about their broad geographic spread and asset and liability diversification,” added Mr. Elbarhdadi.

We are also looking at the ability of management teams to weather stormy markets through efficient enterprise risk management and adequate management actions. Besides lower equity prices, widening credit spreads and decreasing interest rates, which are dampening investment returns, are weighing on earnings. Plus, they have probably offset the positive impact of management actions in the past few months to restore capital strength and operating performance. Falling stock prices for the GMIs and widening credit spreads in our view are further constraining their financial flexibility.

The substantial exposure of GMIs’ fixed-income portfolios to sovereign bonds and banks in general makes them vulnerable to the consequences of a potential turn for the worse. This could also pressure the ratings, depending on the size of a particular GMI’s exposure. However, based on our view of their diversified and strong credit quality investment portfolios, as reflected by their on average strong credit ratings, we have not carried out any negative rating action on a GMI on the back of the recent downgrades of the U.S. and Italy. The ratings have also held up well after the downgrades of Greece, Ireland, and Portugal.

Under our criteria, we believe that relatively deficient capital adequacy is likely to become an increasing source of pressure on ratings. Our rating analysis factors in, however, earning generation abilities and actions that management may take to preserve capital. These actions include asset and liability derisking measures, conservative crediting rates for policyholders, and earning retention policies.

We continue to view capital adequacy as a rating weakness to varying degrees for many of the Europe-based GMIs covered in this report. Current market conditions have, we believe, largely erased the improvement in GMIs’ risk-adjusted solvency ratios in the first half of 2011. These market trends are also likely to put an even greater drag on GMIs’ efforts to rebuild capital adequacy through earnings generation, in our opinion.

Source : S&P

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Britain motorists have suffered an average year-on-year rise of 12.3 per cent in the cost of their comprehensive motor insurance. This adds up to an average £92 jump in the last 12 months.

North England has the biggest annual price hikes. As of quarter three 2011, Bradford has suffered a 27.5% year-on-year rise in the cost of average comprehensive cover and Oldham has fared even worse with a 27.9% year-on-year increase. Liverpool and Manchester have also seen insurance prices driven up significantly as has the Ilford area of Essex.

Third party, fire and theft (TPFT) customers have not gone unscathed however, suffering an annual rise of 19.9%, equating to an increase of £192 over 12 months.

This rise of 12.3% year-on-year is especially significant when compared to the Consumer Price Index – a measure of inflation – which currently stands at 4.5% making the rises in car insurance prices almost three times as high as inflation in the UK. The national average comprehensive car insurance premium currently stands at £843.

Top 5 UK areas with the highest annual premium rises year-on-year, based on the Confused.com/Towers Watson Car Insurance Price Index

Postcode area Annual percentage change Average premium, private car comprehensive Quarterly change
Oldham 27.9% £1437 3.1%
Bradford 27.5% £1394 1.7%
Liverpool 26.8% £1383 2.5%
Manchester 26.6% £1361 2.2%
Ilford 23.7% £1510 1.9%

This table is based on a statistically reliable number of quotes.

5 UK areas with the lowest annual premium rises year-on-year

Postcode area Annual percentage change Average premium, private car comprehensive Quarterly change
Perth 0.3% £564 -1.2%
Kirkwall 0.8% £620 2.2%
Motherwell 2.2% £694 -5.9%
Dumfries 2.4% £580 -5.1%
Edinburgh 2.5% £608 -5.6%

This table is based on a statistically reliable number of quotes.

Despite the year-on-year hikes, there is some good news for drivers as the average price of a comprehensive car insurance policy fell by 1.6% in the third quarter of 2011: the first quarterly decrease for over three years.

Source : Confused.com

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A recent study performed by Gracechurch shows the claims service from the London market has improved gradually year-on-year since 2009.

The research also reveals that there is a group of 7-8  high performing larger Lloyd’s insurers whose claims service is improving much more rapidly than the average;  in fact without these, the performance is fairly flat.

The finding is significant in that it is based on over 6000 individual broker service ratings collected since the beginning of 2009.  The benchmarking study is used by many of the leading insurers to help in figuring out how to improve claims service.

The study also shows that a gap has opened up between Lloyd’s and the companies market with Lloyd’s on average outperforming companies on service.

The study’s findings were welcomed by the CEO of the Lloyd’s Market Association (LMA), David Gittings, whose organisation has been at the forefront of efforts to boost claims performance in the Lloyd’s market.

Gracechurch notes that more and more Lloyd’s insurers are switching-on to delivering better claims service for brokers and this is driving improving standards.

Ben Bolton MD of Gracechurch commented:  “When we first started measuring London claims service in 2005 it was distinctly mediocre; now looking at 2011 data an increasing number of insurers have the majority of their brokers rating their service as ‘excellent’ – that represents exemplary service for any market and shows what can be achieved.”

However Bolton warned:  “The average improvement is good news but service improvements are not consistent across the board and there is still a rump of poor claims service providers who seem reluctant to accept that great service is a vital component of London’s high quality reputation; this is creating a real drag on the pace of improvement.  The other issue is that insurers are often too modest about publicising good performance.”

David Gittings commented;  “This is again positive news for Lloyd’s on claims – the study also highlights positive acceptance of ECF as delivering real benefits for brokers and client,  showing that process improvements are contributing too – we must though keep up the pressure to make sure that we are the leading market in claims service – and recognised as such.”

Claims performance in the London market has been the focus of a number of initiatives including ECF2 and the Market Processes project.

Source : Gracechurch and LMA

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Eurco Re’s insurer financial strength rating has been downgrade to ‘BBB’ from ‘BBB+’ by Fitch Ratings with a stable outlook.

The downgrade follows Dexia Group’s announcement on 10 October 2011 that Dexia Bank Belgium (DBB) was to be purchased in its entirety by the Belgian State. Consequently, DBB’s Issuer Default Rating (IDR) was downgraded to ‘A’ (see “Fitch Downgrades Dexia Bank Belgium to ‘A’; Affirms Dexia at ‘A+'” dated 11 October 2011 at www.fitchratings.com) , reflecting the Belgian Support Rating floor of ‘A’. Previously, Dexia SA was considered the ultimate parent of Eurco Re. Dexia SA’s IDR rating of ‘A+’ is based on the French Support Rating Floor after the company received support from the French, Belgian and Luxembourg states. Eurco Re’s one notch downgrade reflects the downgrade to DBB, now its ultimate parent.

The rating reflects potential support for Eurco Re, which Fitch believes would be provided by Eurco Re’s immediate parent, the insurance company, DIB and, if required, by DBB. Fitch believes that this support would be provided to Eurco Re because of both its importance to DIB and the reputational damage which could follow from any potential absence of support. The agency does not consider the willingness of DBB to provide support to its rated insurance operations to have diminished as a result of the change in its ownership.

Eurco Re’s ratings could be downgraded if its importance to DIB were to decline. Furthermore, were DIB to be sold by DBB, Eurco Re’s rating would need to be reconsidered and its viability assessed. DBB’s rating is at the Belgian Support Rating Floor. If the Support Rating Floor was lowered, DBB would be downgraded. In this instance, it is possible that Fitch would not automatically downgrade the rating of Eurco Re.

Eurco Re’s ratings could be upgraded if DBB’s rating was to be upgraded or if Fitch were to view Eurco Re as substantially more important to DIB. Fitch does not consider an upgrade as likely in the medium-term.

Eurco Re itself is small, and entirely reliant on business from DIB. It is well capitalised and has been consistently profitable. It is based in Dublin and licensed by the Central Bank of Ireland to operate as a reinsurance company. It is a fully controlled subsidiary of DIB. DIB obtains the majority of its gross written premium from sales of life insurance products to retail customers through DBB’s bancassurance channel using DBB’s network of branches.

Source : Fitch Ratings

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Britain’s National Health Service should pay the funeral expenses of organ donors to encourage more people to register amid  a shortage in organs for transplant, a think tank has said.   

The Nuffield Council on Bioethics said people may be more likely to sign up  as donors if they knew it would spare grieving relatives the cost of a  funeral, which averages £6,800 ($10,624, 7,847 euros) in Britain.

“Paying for the funerals of organ donors would be ethically justified — no  harm can come to the donor, and it would be a form of recognition from  society,” said Marilyn Strathern, who led an 18-month inquiry by the council.

“The possibility of sparing relatives the financial burden of a funeral  might encourage more people to register as donors.”    Britain has 8,000 people on the waiting list for an organ transplant and patients wait an average of three years for a suitable organ donor to become available. Three people die every day waiting for an organ.

Around 18 million people in Britain, or 30 percent of the population, are signed up to the Organ Donor Register. The NHS aims to increase this to 25  million by 2013.

The council suggested that a pilot scheme be launched to determine the  public’s view. It looked into the ethics of encouraging people into donating in a range of areas including major organs, eggs, sperm and whole bodies.

Britain’s Department of Health said it would consider the recommendations  of the report, but added that becoming an organ donor should not be motivated  by money.

“Signing up to the Organ Donation Register is a selfless act that can save the lives of others. It is an independent personal decision that should befree from any financial consideration,” a spokesman said.

Kevin Gunning, a consultant at Addenbrookes Hospital in Cambridge, eastern England, said the scheme could distract people from registering as donors.

“I dont think its going to have a great impact on the number of people who  sign up… In Britain our tradition of altruism is that this is a gift, and we  need to maintain that,” he told the BBC.

The council’s ethics report concludes that altruism should be at the centre  of all types of donation, but said this does not exclude the possibility of  allowing some form of payment in some circumstances.

London, Oct 11, 2011 (AFP)

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London leads the way in the global competitive market place according to a panel of market leaders. The panel discussion sponsored by Xchanging, entitled ‘London Market Reform: How is the Market Responding?’ addressed a number of key issues about the market’s technological progress at the annual Insurance Technology Congress.

For different reasons, each of the four panellists agreed that the collaborative efforts of a wide range of participants across the market over many years had contributed to London maintaining its position on the world stage. One panellist cited the example that seven years ago around one third of clients received contract documents within 30 days; today it is over 95%.

Others felt that, for complex contracts, there was no faster place in the world than London, which bore testimony to the effectiveness of the collective reforming efforts.

Other reasons the panel felt reforms had given London the edge include:

– ECF has reduced settlement times by 60%

– The repository has reduced processing time from five days to three

– The levels of contract certainty and use of ACORD messaging in London are unseen elsewhere in the world

– e-Accounts and e-Endorsements were also hailed as crucial factors in London’s leading position.

While the panel agreed there is still a lot more work to be done, in particular with endorsements, the gauntlet was thrown down that the real challenge was in brokers and underwriters overcoming their own resistance to change. One panellist summed up: “Courage and determination are the key characteristics required as the technology is there; it works and is producing tangible results.”

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Ian Fordham has been appointed as Head of Accident & Health Division at Lloyd’s Channel Syndicate 2015.

Ian has worked in the London Market for over 40 years for previous Syndicates and brings to Channel Syndicate 2015 a depth of experience. Ian will be joined, in due course, by an another experienced Underwriter, with further members of the team joining shortly.

Tom Corfield, Active Underwriter of The Channel Syndicate said “We are  pleased to welcome Ian to the Syndicate to establish the Accident & Health Division.  He has a huge amount of experience which will be invaluable as we build our portfolio”.

Source : The Channel Syndicate

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Brit Insurance has announced that its CEO Dane Douetil will step down with effect from October 27 2011. Douetil will be succeeded, subject to FSA approval, by Mark Cloutier, who has recently been working as an advisor to Brit Insurance in developing the group’s future strategy.

Over time, Fitch will determine what implications this change in management will have for the future profile of Brit Insurance as well as any potential risks that may materialise as a result of the relatively short transition period.

Fitch will assess any change in strategy as part of its ongoing evaluation of the insurer’s credit quality, and will take appropriate rating action as necessary. The announcement follows the takeover of Brit Insurance on 9 March 2011 by Achilles Netherlands Holdings B.V, a holding company majority owned by funds managed by Apollo Management VII, L.P. and funds advised by CVC Capital Partners Ltd.

The group reported an overall profit before tax for H111 of GBP6.8m (H110: GBP77.5m).

The current ratings were affirmed on 28 September. The affirmations and Stable Outlook reflected the group’s solid financial profile, which was supported by a strong level of risk-adjusted capitalisation and strong underlying earnings.

Source : Fitch Ratings

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Plum Underwriting has appointed Paul Evans as senior underwriter with immediate effect. In April already two underwriters have joined Plum in response to increased activity.

Previously, Paul held the position of UK household underwriter at Brit Insurance where he began his career in 2007. Based in the City of London, he specialised in mid and high net worth products distributed via binding authority and e-trading arrangements.

Paul’s appointment is the latest step in Plum’s growth strategy and will help the company to maintain service to brokers and underwriting flexibility as the business grows. His main areas of responsibility will be senior technical underwriting with an emphasis on linking the day-to-day case underwriting with the overall underwriting strategy set by the business.

Plum managing director, David Whitaker said: “We are extremely pleased to announce an important addition to our underwriting team. Paul is a very capable practitioner who will be an asset in upholding Plum’s core values of service excellence to our brokers in our specialist non-standard household niche. Our experience shows there is an ever growing appetite from brokers for underwriting flexibility, to accommodate those risks that do not fit the ever narrowing acceptance criteria of the mainstream markets and Paul’s experience makes him ideally suited to helping us to satisfy that demand.”

Source : Plum Underwriting

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Doctor Shinsuke Muto runs an unusual health service in the tsunami-battered Japanese city of Ishinomaki. Patients come to his clinic to be treated for physical pain or therapy to help their bodies recover from the injuries they received when a 15-metre (45-foot) wave swept through their homes on March 11.  But many also come to the health centre he established nearby to have their emotions healed, to have the mental wounds patched up and the loneliness and isolation soothed. 

Elderly people who lived their whole lives in Ishinomaki saw their homes, their families and their friends and neighbours washed away, says Muto.

“I found that the treatment of the elderly lacked warmth. They of course need treatment, but they also needed a place to meet,” he told AFP.

His health centre aims to provide just that. Of the 20,000 people killed nationwide in the massive waves generated by the magnitude 9.0 offshore earthquake, a fifth were from Ishinomaki. The once-thriving fishing port sits around 100 kilometres (60 miles) north of the Fukushima nuclear power plant where workers are still trying to tame the world’s worst nuclear emergency since Chernobyl.

Piles of rubble still scar the city where many of the 165,000 inhabitants were made homeless by the devastating waves. Muto arrived in the city two months after the disaster, when the need for acute medical care had subsided a little. He founded the You Home clinic, offering the normal array of medical services. Then, with a grant from French charity Secours Populaire Francais and the Nippon Foundation, he founded a health centre nearby to offer all-round care to his patients.

It offers free consultations, including with specialists in Tokyo, using equipment that allows them to examine patients remotely. The centre, which opened its doors in September, provides pastoral care for its clients and much needed employment in a region whose economy took a battering in the disaster. Of its 10 employees, seven are local.

One of Muto’s main aims is to give patients the chance to meet with other people. Many of those he sees are living in the temporary accommodation thrown up in the months after the tsunami, often cut off from the people they know.

“At the health centre, young people can organise a film screening, older people have a coffee or dinner with friends,” said the doctor. This chance for human interaction is vital if Ishinomaki is to get back on its feet, says Julian Laupretre, president of Secours Populaire, who came to inaugurate the centre.

“Friendship does not solve everything, but it is irreplaceable,” he said.  For him, the centre is a place where patients can feel that they are not alone and have not been abandoned to their fate.

In the immediate aftermath of the disaster, donations and offers of help flooded in from all around the world, but it is long-term care that is needed now, says doctor Ismail Hassouneh of Secours Populaire, who worked in Aceh, Indonesia, after the 2004 Asian tsunami.

“It is important that we keep a close eye on what happens to those caught up in the disaster,” he said.

“An event of this magnitude brings with it long-term psychological issues that must be addressed.”

IShinomaki, Japan, Oct 7, 2011 (AFP)