Home Authors Posts by John Stewart

John Stewart

Profile photo of John Stewart
3387 POSTS 0 COMMENTS

0 0

Whittington Group, the international insurance investor and services provider, announces today that Ross Bundey, Group General Counsel, has been appointed as a Director of the Group’s holding company, Whittington Group Pte Ltd.  Mr Bundey is based in Singapore, the Group’s Head Office.

Since joining Whittington in March 2007 he has been supporting the development of the Group across its operations in UK and in Asia.  Ross has been a key executive in the development of DirectAsia.com, supporting the Group’s Lloyd’s Managing Agency in London and in realizing the closure of the Group’s Singapore-based insurance run-off companies.

Tony Hobrow, Whittington Group Chief Executive, said: “Ross will further strengthen the board of our holding company as we continue our expansion in Asia . Ross has detailed knowledge of the Group’s operations and his analytical approach to key business issues makes him an invaluable member of the team. I look forward to continuing to work closely with him as we seek new investment prospects and develop the Whittington Group over the coming months and years.”

Source : Whittington press Release

0 0

Specialist engineering and construction insurer HSB Engineering Insurance Limited has appointed Chantell Scott as development executive with immediate effect.

Based at HSB’s head office in London, Chantell will be the main point of contact for brokers in North London and the surrounding areas. Her main focus will be on relationship management, renewals and business development across the region.

Chantell has 14 years experience in commercial insurance, specialising in winning new business and servicing existing clients. She will report to Sian Williams, regional manager for London and the South East.

Prior to HSB, Chantell was a development executive at Axa Solutions, handling renewals and new business for direct clients.  She also has previous experience as a commercial underwriter for General Accident and a development executive for MIA and RHG in Stevenage.

Regional manager Sian Williams said: “Chantell brings considerable experience of commercial insurance and broker relationships in the region to HSB.  Her local knowledge will be a great asset; not only to the team but to brokers and our service provision to them in this important area.”

Source : HSB Press Release

    0 0

    Munich Re is insuring the guarantees which Fuhrländer, a German builder of wind-power plants, is giving its customers. This is the world’s first insurance of this kind and part of a range of innovative covers that Munich Re is using to underwrite risks in the renewable energies sector. By doing this, Munich Re is facilitating business for both vendors and investors and paving the way for future technologies to enter the market.

    The manufacturer Fuhrländer gives buyers of its up to 2.5-Megawatt wind turbines a technical guarantee of five years in conjunction with corresponding service contracts. Munich Re is covering these guarantees and assuming the associated financial risk. This makes it easier for the manufacturer to conduct business and allows it to focus its resources on expanding its position in a market that is still growing at above-average rates throughout the world. At the same time, such insurance is attractive for buyers and investors, as it enables Fuhrländer to offer its customers greater security, planability and creditworthiness at banks.

    “This investment security underscores the reliability of our technology and is a token of our true customer orientation”, declared Joachim Fuhrländer, chairman of the board of management of the international Fuhrländer Group. Before the agreement was signed, Munich Re engineers had conducted an indepth review of the development, manufacturing and logistics processes.

    Thomas Blunck, member of Munich Re’s Board of Management: “We are very pleased that, in Fuhrländer, we have been able to win the first customer for innovative covers of this type in the windenergy sector. Munich Re is thus again the pioneering force in the market, after having also been the first to offer performance guarantee covers for photovoltaic products.” In order to realise this non-cancellable cover, Munich Re brought in one of its specialty primary insurers.

    In recent years, the company has built up considerable expertise in the renewable energies sector. With this know-how, Munich Re is able to write special renewable-energy risks and thus, in many cases, to play a crucial role in making investment in future technologies possible. The new covers fit perfectly into the course chosen by the company, which has declared climate change to be a strategic issue. “We see climate change not just as risk in the form of increasingly frequent and severe natural catastrophes, but also as a great opportunity, as it will lead to a changeover of our power sector to renewable energies”, said Blunck. “This is as area where the insurance industry can make a substantial contribution.”

    Source : Munich Re Press Release

    0 0

    President Barack Obama’s Republican foes in the US Senate set the stage Tuesday for a vote this week on repealing his signature health care overhaul, but were all but certain to fall well short.

    The White House’s Democratic allies, who control 53 seats in the 100-member chamber, echoed Obama’s offer to improve the landmark law but pledged to defeat any effort to repeal it entirely.

    Democratic Senate Majority Leader Harry Reid, in a nod to Republican campaign promises to attack the measure head-on, told reporters the vote would forward because “we want to get this out of their system very quickly.”

    “It’s not going to go anyplace,” Reid told reporters.

    Republican Senate Minority Leader Mitch McConnell, backed by the other 46 members of his party in the Senate, moved to attach an amendment repealing the health law to a broader bill on modernizing US air travel.

    “It’s not every day that you can get a second chance on a big decision after you know all the facts. Today is one of those days,” McConnell said.

    The Senate vote, expected in the coming days, came after the Republican-held House of Representatives voted 245-189 to repeal the health care legislation and then moved to craft their party’s version of the overhaul.

    The law, which Obama signed in March 2010 after a year-long battle, aims to extend coverage to 31 million of the 36 million Americans who currently lack insurance.

    It requires most Americans to buy insurance and offers subsidies for low-income families to do so, while forbidding insurers from denying coverage because of pre-existing medical conditions.

    Recent polls have found the US public deeply divided over the law, but only about one in four favoring outright repeal.

    Although the United States is the world’s richest nation, it is the only industrialized democracy that does not provide health care coverage to all its citizens.

    Republicans meanwhile exulted over a ruling Monday in which a federal judge declared the law unconstitutional — the second to do so after Republicans in 26 US states mounted court challenges against the overhaul.

    US District Judge Roger Vinson said a key provision of the law known as the “individual mandate” exceeds Congress’s regulatory powers by requiring Americans to either purchase health insurance by 2014 or pay a fine.

    The Obama administration immediately pledged to appeal and branded the ruling by a Florida judge as an “outlier” from the judicial mainstream, warning that health care costs would soar if it were allowed to stand.

    The pitched battle was expected to wind its way to the US Supreme Court, where observers were already predicting a narrow 5-4 ruling — which could go either way.

    Washington, Feb 1, 2011 (AFP)

    0 0

    Aon Benfield Natural Hazard Centre at the University of Pretoria has hosted the first ENHANS International Workshop on Extreme Natural Hazards and Disaster Risk in Africa.

    The event brought together Africa’s leading global experts in natural hazards, disaster risk analysis and risk management, who will continue to pool their expertise to mitigate and manage the consequences of extreme natural hazards across the continent.

    Professor Andrzej Kijko of the Aon Benfield Natural Hazard Centre said: “Africa is a continent with enormous natural disaster risks. In comparison with developed countries such as Australia, Japan or the U.S. which are able to recover from natural disasters at a relatively quick pace, most of Africa’s inhabitants are very poor and may lose everything when extreme natural hazards like floods, droughts or earthquakes occur.”

    Dr. Keith Alverson, Director of the Global Ocean Observing System, shared these sentiments: “There is a growing need for more awareness from the government on the implications of extreme natural hazards for the African continent. Preventative disaster measures need to be monitored and the results regularly communicated to the authorities. For example, while water supplies are checked regularly for hygiene purposes, there is not as much emphasis on testing sprinkler systems to ensure they would work effectively in the event of a fire.”

    Dr Alik Ismail-Zadeh, Leader of the Extreme Natural Hazards and Societal Implications (ENHANS) Project and Secretary-General of the International Union of Geodesy and Geophysics, (added: “A natural disaster should not be considered just as a natural phenomenon but as an extreme societal event affecting people and infrastructure. There are needs for integrated research and education on natural and human-induced environmental disaster risks. In response, a decade-long programme – Integrated Research on Disaster Risks – has been recently developed by the International Council for Science together with the International Social Sciences Council and the United Nation’s International Platform for Disaster Reduction.”

    Pieter Visser, Catastrophe Analyst for Aon Benfield Analytics in South Africa, commented: “Research is crucial to understanding the risks facing Africa.  Working with its academic partners, Aon Benfield Research uses our findings to improve catastrophe models and provide insurers, our clients, with the high quality information they need to assess risk and provide cover.”

    By delivering relevant research and practical application, Aon Benfield is helping to create a more risk aware world and enable insurers, reinsurers, governments, and NGOs to protect and grow their organizations.

    ICSU, IUGG and GOOS are the main co-sponsors of the Workshop.

    Source : Aon Press Release

    0 0

    According to a new study from the Insurance Institute for Highway Safety red-light cameras save lives.

    The analysis, released Tuesday, found that camera enforcement at city intersections cut the death toll from drivers running red lights by almost a quarter, on average.
    The study is the first to examine red-light fatalities in multiple and diverse cities across the country, according to the institute, which is financed by the insurance industry.

    Previous research has consistently shown that red-light programs reduce violations, crashes and injuries, but until now, there had been no widespread data to show the cameras’ impact on serious crashes that claim lives, says Adrian Lund, the president of the institute.

    Studying data from 14 cities, all with populations of 200,000 or more, researchers compared the rates of fatal crashes at intersections before and after these cities installed red-light cameras, and also compared the results to dozens of similarly sized cities without cameras. “We saw large reductions in fatality crashes at intersections,” Lund says.

    In fact, the researchers estimate that if all of the U.S.’s 99 large cities had been using red-light cameras during the five-year study period from 2004 to 2008, more than 800 deaths would have been prevented.

    Red-Light Cameras Remain Controversial
    Approximately 500 communities across the country currently use red-light cameras, up from only about 25 in 2000, according to the report.

    While national surveys indicate wide public support for the technology, the programs still remain somewhat controversial. Critics claim that some communities are using camera enforcement to raise revenue by issuing more tickets and argue that the programs violate drivers’ privacy, Lund says.

    But claims of high revenues at the expense of drivers are inaccurate, he says, citing a 2002 California State Auditor report that found that red-light cameras improve traffic safety, but generate little or no additional revenue for most local governments. That report, based on data from 1995 through 2001, found that red-light-camera programs lowered the number of crashes by 10% statewide, but operated on a break-even basis, or at a slight deficit, for most local governments.

    Still, red-light running killed 676 people and injured an estimated 113,000 in 2009, according to the institute’s newly released study. And most of the time, it’s not the lawbreaking driver who pays the price: Other people, including passengers, pedestrians and bicyclists, made up nearly two-thirds of the deaths, the institute says.

    Cameras Prevent Other Crashes Too
    In addition to reducing deaths from red-light violations, the cameras also reduce other types of fatal crashes at intersections, according to the report. The researchers theorize that drivers may be more cautious, in general, when they know cameras are around.

    The report includes profiles of a number of victims, including 3-year-old Marcus May-Cook, from Lansing, Mich, who died two days after the car in which he was a passenger was broadsided by an unlicensed teenage driver who had run a red light.

    “Frankly, one of the things we wanted to do with the study is to bring the focus back to the real victims,” Lund says. “The real victims are not the ones running red lights and getting tickets, but the ones getting injured and killed.”

    In a statement, Barbara Harsha, executive director of the Governors Highway Safety Association, which represents state highway safety offices, called the study’s findings are “welcome news.” Red-light cameras should be included “in state safety toolboxes,” she added.

    “We have known for years that when the public sees a law being enforced, they will respect it and drive more safely. That has been true with drunk-driving and seat-belt laws, and it is also true with red-light cameras,” Harsha said. “This new IIHS study leaves no doubt that red-light cameras are an effective enforcement tool and a key to intersection safety.”

    Source : Daily Finance

    0 1

    QBE, the specialist in business insurance, today announces a series of appointments to its senior management team for Europe. These appointments are effective from 2 February 2011.

    David Winkett, currently Chief Financial Officer, extends his current role to become Chief Financial and Operating Officer. In addition to managing the finance division, David will also oversee the IT and Operations divisions. The remit of Phil Dodridge’s role as Chief Risk Officer will broaden to include responsibility for Claims and Underwriting Review and Reinsurance. These changes follow the departure of Kathy Lisson, Chief Operating Officer, who leaves QBE to take up an external consultancy position back in her native Canada.

    Matthew Gouldstone, Managing Director of Change and Technology, has been promoted to Chief Information Officer, David Spruce, QBE’s current Finance Director, to Operations Director and Rob Stone, Head of Corporate Reporting, to European Operations Financial Controller. All will report to David Winkett.

    David Cooney, previously Operations Director, has been appointed to the newly-created role of Director of Operations for Property, Casualty and Motor, QBE European Operations’ largest division. David will report to Ash Bathia, the Division’s Chief Underwriting Officer.

    Steven Burns, QBE European Operations´ Chief Executive Officer commented:  “QBE’s support teams are committed to providing market-leading expertise and service to their underwriting community. These appointments recognise the value and depth of the experience that these individuals can bring to help deliver on this objective.”

    Source : QBE Press Release

    0 0

    Insurance giant Towergate announces its plans to further extend its investment in Landscape, RDT’s flagship packaged insurance application, to support its growth goals.

    Towergate implemented Landscape as its strategic underwriting platform of choice, across its household portfolio, including high-net-worth, in 2008.

    Towergate consequently enjoys improved speed to market and low cost of entry with no reliance on external parties for changes to rates and product rules. The flexible architecture of Landscape enables re-use of application components via web services and integrated support is provided for additional channels of business such as, Web, EDI and Bordereaux.

    On the back of this success Towergate has extended the footprint of Landscape into its Let properties business line and now plans to roll the platform out across further business portfolios.

    Landscape brings increased business efficiency and flexibility of operational processes to Towergate. Streamlining the IT infrastructure across personal lines with Landscape will support the company growing market share with the ability to harness further competitive advantage.

    Mike Newman, Chief Information Officer, Towergate comments: “We chose RDT’s Landscape solution because we were impressed by the flexible nature of the system. We have replaced four existing underwriting platforms in two of our underwriting businesses with Landscape, reducing our operational support costs significantly going forward. The entire implementation, which might have been daunting, was seamless. At the same time, Landscape gives us a scalable architecture, whilst its intuitive interface means minimal training is required for new starters. The combination of all of these factors make a compelling business case for the extended adoption of the system which will help to power Towergate towards its business growth goals.”

    RDT Chief Executive Mark Bates said: “We understand the risk downtime represents to insurers and the related concerns when considering implementing new technology and applications. We are proud to have a reputation for delivering seamless integration on time, every time, with no perceived disruption to business operations internally or externally. We are delighted to be extending our relationship with Towergate and look forward to continuing to support the business in its strategic growth goals.”

    Source : RDT Press Release

    0 1

    Customers are warned that insurance premiums will be increased this year after the flooding in Queensland New South Wales and Victoria.

    JP Morgan and Deloitte expect insurance rates should rise by more than three times the annual inflation rate.

    Their joint general insurance industry survey shows that before the floods, the industry was predicting an 8 per cent increase in household premiums.

    Deloitte spokeswoman Elaine Collins says the survey is based on responses received in September and insurers will now have to factor in the impact of recent weather events.

    “That number really doesn’t include allowances for the Christchurch earthquake or the Queensland floods, because that was really a number that was from June 2010 to June 2011,” she said.

    “It’s possible that number might be higher because of the Queensland floods.

    “Insurers will be looking at the impact and deciding how much their rates need to increase.”

    While the survey was conducted before the floods, co-author Siddharth Paramesweran says the disaster is likely to have an impact on the way insurers operate.

    “They will try to adjust their models, adjust their rates to the extent that they can,” he said.

    “They will reassess their approach to flood modelling, I think that’s a longer term issue.

    “I think that there is likely to be some change coming.”

    Source : ABC News

    0 0

    Insurance companies are blamed for consumer confusion over what constitutes storm and flood cover, according to Australia’s competition watchdog.

    Floods in Victoria, NSW and Queensland have killed at least 32 people, inundated more than 30,000 houses and businesses and in Victoria along destroyed crops worth $1.5 billion.

    It has been reported that up to 40 per cent of those affected might not be covered, despite believing their policies protected them in the case of flooding.

    Many residents may get nothing from their insurer.

    Most of the confusion comes from what is determined to be storm damage and what is classified as “riverine” flooding, where water rises from natural or man-made waterways.

    Insurers have been blaming the Australian Competition and Consumer Commission for not approving a common definition of inland flooding three years ago.

    But ACCC chairman Graeme Samuel hit back yesterday, saying the industry’s proposed definition was flawed and imprecise.

    He was concerned the Insurance Council of Australia’s planned definition of flooding could have been used “as much to exclude flood cover as it could have been used to include it.”

    Others to raise concerns are the Consumer Law Action Centre, the Consumers’ Federation of Australia, the Australian Securities and Investment Commission, the Legal Aid Commission of New South Wales, Legal Aid Queensland and the Insurance Law Service.

    “We got a response from ASIC and the National Insurance Brokers Association and from several consumer groups who said, ‘No, no, no, this is not going to work’,” said Mr Samuel. “They all believed the definition the ICA came up with was likely to cause more confusion than clarity.”

    The ICA’s common definition of flood was proposed to be voluntary, a guideline rather than a benchmark, and one that insurers could modify at will.

    Last week Treasurer Wayne Swan and Assistant Treasurer Bill Shorten met the ICA to discuss the issue.

    Mr Shorten, referring to anger in the affected areas, said later the community “has an appetite to get this right once and for all”.

    He is due to meet the insurance industry tomorrow.

    Source : The Herald Sun

    0 1

    Amlin plc is pleased to announce that a wholly owned subsidiary has entered into an agreement to acquire Lead Yacht Underwriters Limited (“Lead Yacht”) from members of Lead Yacht’s board of directors. The transaction remains subject to the approval of the change of control by the Financial Services Authority.

    Established in 1997 and based in London, Lead Yacht is an underwriting agency and world-wide leader in the provision of super-yacht insurance. The company underwrites through an exclusive network of insurance brokers and in the current financial year expects to handle approximately US$34 million of gross written premiums of which Amlin initially intends to underwrite approximately one third. As at 31 May 2010, the date of the company’s latest audited accounts, Lead Yacht had gross assets of approximately £6.4 million.

    The acquisition provides Amlin with the opportunity to acquire a first-class niche underwriting agency with an unrivalled reputation in its market and an excellent track record of underwriting profitability. Lead Yacht’s business complements Amlin’s existing yacht portfolio, which is focussed predominantly on smaller yachts. The move also demonstrates Amlin’s continuing focus on further diversifying its underwriting portfolio to better balance its overall risk exposures and thereby enhance the Group’s long term profitability.

    Charles Philipps, Chief Executive of Amlin, commented, “The acquisition of Lead Yacht is a tremendous opportunity for Amlin to build on the success of its existing yacht business through growth into the super-yacht class. Lead Yacht is a proven leader in its field and its quality management team, led by Allan Norton, and specialist underwriting knowledge will provide Amlin with an excellent platform from which to develop this business in the future”.

    Allan Norton, Managing Director of Lead Yacht, said, “This is an exciting milestone for our company and provides an opportunity to enhance our product offering to our panel of brokers and clients. We believe this partnership gives us a strong platform for continued growth”.

    Source : Amlin Press Release

    1 4

    Aon Risk Solutions, the global risk management business of Aon Corporation (NYSE: AON), announced that Shawn Ram was promoted to national Technology Practice leader. Most recently serving as an account executive and the San Francisco Bay area Technology Practice leader, Ram has worked with many clients in Silicon Valley and across the country for more than 10 years to deliver risk advisory services.

    The U.S. technology sector grew nearly twice as fast as the overall economy in 2010 and that trend is expected to continue into 2011, according to Forrester Research. This growth is the result of investments in cloud and smart computing solutions, which will provide the tools for companies to grow profits.

    “This continued boom opens the door to challenges and opportunities for our clients in 2011,” said Shawn Ram, national Technology Practice leader of Aon Risk Solutions. “Evolving risks, such as those emanating from social media, cloud computing and privacy issues will continue to challenge organizations, and clients who manage these risks now will be a step ahead of competitors.”

    “Aon is optimistic about the technology industry this year,” said John Willett, Aon Risk Solutions’ national practice leader. “We are looking to Shawn’s continued leadership in this segment to further develop Aon’s expertise in meeting our clients’ needs.”

    Aon Risk Solutions’ Technology Practice addresses risk exposures, identifies insurance solutions and provides risk program design, risk quantification and analysis for both middle market and Fortune 100 technology organizations. Ram will lead delivery of Aon’s strategies to ensure both client satisfaction and growth in the technology segment. He will be responsible for the brokerage, product development and service quality for Aon’s technology clients. These new responsibilities build upon Ram’s proven expertise in directors’ and officers’ liability, patent infringement risks, cyber liability and privacy.

    Ram is a graduate of Brigham Young University and is actively involved with the Silicon Valley Leadership Group, the Founder Institute – a startup accelerator and entrepreneur training program, and the Churchill Club, a Silicon Valley business and technology forum. He is a frequent speaker at industry events on technology risk-related topics such as cyber liability, patent infringement and privacy.

    Source : Aon Press Release

    0 0

    Mutual insurance, retirement and investment group LV= today announces the appointment of Cath Keers as a non-executive director. Cath has over twenty years marketing and sales experience and will increase diversity on the LV= board by bringing a wealth of knowledge from a wide range of retail markets.

    Most recently Cath worked at O2 as customer director and was responsible for overall strategy and reorganisation of the company to help focus on its customer service and offering. Prior to this, she was marketing director for six years. Before joining O2 in 1996, Cath held senior roles at Next, Avon, BSkyB and Thorn EMI. Cath also is a non-executive director of the Royal Mail group, Telefonica and the Children’s Mutual.

    In her role as non-executive director, Cath brings a wealth of retail industry experience to the LV= board. She will join existing non-executive directors Dennis Holt (chairman), Gill Nott, John Edwards, Ian Reynolds, and Mark Austen and will take the total number of board members to nine.
    Mike Rogers, LV= group chief executive said: “We are pleased to welcome Cath to the LV= board. Cath has strong marketing experience from the retail sector and we believe she will bring some excellent insight to the board.”

    Cath Keers said: “I am very much looking forward to joining the LV= board. I feel a strong affinity with LV= and the journey that the company has undertaken since its rebranding in 2007. I believe that LV= has a great customer offering and I look forward to working with the rest of the board to help the company continue its success.”

    Source : LV= Press Release

    0 0

    Public-private partnership solutions can substantially ease the financial burden natural disasters put on government budgets. The economic costs of natural catastrophes have risen from an average USD 25 billion per annum in the 1980s to USD 130 billion in the 2000s. With climate change unfolding, catastrophic events such as hurricanes, floods and droughts are likely to increase further, hitting in particular emerging markets and developing countries.

    The increasing severity and frequency of natural catastrophes are driving up the cost of disaster relief, especially in developing and emerging markets as they are hurt the most and prepared the least. When hurricane Ivan struck Grenada in 2004, the economic losses amounted to USD 889 million, ie a staggering 203% of the Caribbean island state’s gross domestic product (GDP). One year later, the country defaulted on its foreign debt. In the case of the more recent Haiti earthquake, the losses still stood at 114% of GDP.
    From post-disaster financing to a three step approach

    “The mounting exposure to catastrophes calls for a more diversified approach in financing disaster relief,” says Michel Liès, Chairman Global Partnerships at Swiss Re. The focus of disaster risk management has hitherto been on post-event relief, rehabilitation and reconstruction. Instead, a more balanced approach is preferable, combining both pre- and post-event elements. As a first priority, governments should ensure a functioning insurance market through appropriate legislation. This will help to absorb a big part of disaster losses suffered by individuals and businesses. Then, governments should consider pre-event financing solutions that build up reserves, as well as contingent finance and sovereign insurance solutions. Post-disaster financing of relief, rehabilitation and reconstruction through budgetary means, debt financing or donor aid should only come into play to cover residual losses once all other risk transfer solutions have been exhausted. In a new publication, Swiss Re presents seven case studies showing how these concepts have been put into real life practice.
    Hurricanes and earthquakes: the example of CCRIF

    One such example is the Caribbean Catastrophe Risk Insurance Facility (CCRIF) which insures 16 Caribbean countries and territories against earthquakes and hurricanes. CCRIF works like an insurance mutual, combining the benefits of pooled reserves from participating governments with the capacity of the financial markets. It retains some of the risks insured by the member governments and transfers the remainder to reinsurance markets. Together with others, Swiss Re is supporting CCRIF as the lead reinsurer.
    Financial risk transfer only part of a bigger picture

    “Through its involvement in numerous public-private partnerships, Swiss Re has the track record demonstrating that it can effectively support governments in tackling the financial implications of natural catastrophes and make these societies more resilient in the face of adversity,” states Liès. He highlights, however, that financial risk transfer should not be looked at in an isolated way. An integrated and structured risk management approach should be undertaken that includes a thorough analysis of the risk landscape. This enables political and public sector decision-makers to determine the priorities in advance and to allocate scarce resources accordingly. A comprehensive approach allows governments to minimise risks wherever possible, transfer the costs of peak risks, such as natural catastrophes, where necessary and thus maintain long-term financial health of their countries.

    Source : Swiss Re Press Release

    0 0

    President Barack Obama’s Republican foes in the US Senate introduced legislation Wednesday to repeal his landmark health care law, amid vows by the chamber’s Democratic majority to defeat the effort.

    Led by Senator Jim DeMint, a patron of sorts to archconservative “Tea Party” activists in the US Congress, 34 Republicans backed the legislation in keeping with a campaign vow to dismantle the overhaul Obama signed last year.

    “Republicans are standing with the American people who are demanding we repeal this government takeover of health care,” said DeMint who called repeal “vital to the future of our nation and the health of our people.”

    Opinion polls have found the US public deeply divided over the health law, but only roughly one in five in favor of outright repeal, while others say the overhaul needs to be stronger and some want only some parts rolled back.

    “Republicans are wasting time fighting old battles when we should be focused on creating jobs,” said a spokesman for Senate Democrats, Brian Fallon, who accused Republicans of being “hell-bent on political stunts.”

    The Senate measure was identical to legislation the Republican-controlled US House of Representatives approved one week ago.

    Democratic Senate Majority Leader Harry Reid has said he will not bring the repeal up for a vote in the chamber, though Democrats acknowledge that parliamentary rules make it hard if not impossible to block one outright.

    But Republicans were not expected to rally enough Democrats to approve the measure, which would not survive Obama’s veto even if it cleared the Congress.

    Republicans planned to craft their own alternative to the legislation over the coming months, taking care to safeguard some of the most popular provisions.

    Obama said in his “State of the Union” speech to the nation late Tuesday that he was “eager” to work with Republicans to make small improvements in the law but was “not willing” to reconsider a complete repeal.

    “Instead of re-fighting the battles of the last two years, let’s fix what needs fixing and let’s move forward,” he said.

    Washington, Jan 26, 2011 (AFP)

    0 0

    According to a report released by Aon Hewitt, the global human resources consulting and outsourcing business of Aon Corporation (NYSE: AON), companies have little confidence that workers are taking the actions necessary to meet their retirement savings needs.

    Aon Hewitt’s survey of 210 mid-to-large U.S. companies representing 6.2 million workers reveals that just 38 percent of employers are confident that workers are taking accountability for their financial future, down from 43 percent in 2010. Further, fewer than a third (30 percent) of companies are confident employees are sufficiently prepared for retirement, showing no improvement from 2010. As a result, companies are increasingly focusing on adding features and making plan design changes to boost savings rates and promote responsible investing.

    In an effort to increase participation in savings plans, more companies are automatically enrolling workers into plans. In 2010, 57 percent of plans offered automatic enrollment, compared to just 24 percent in 2006. Of the plans that do not currently have this feature, more than one-third (36 percent) are likely to add it in 2011. Additionally, automatic contribution escalation is now offered by 47 percent of plans (up from 17 percent in 2006) and automatic rebalancing is offered by 49 percent of plans (up from 27 percent in 2006). These features continue to become more prevalent. More than a quarter of employers (26 percent) are likely to add automatic escalation in 2011, and a third are considering adding automatic rebalancing.

    “According to another recent Aon Hewitt report, only half of Generation Y workers who are eligible to participate in a defined contribution plan actually do so, leading to a significant gap in retirement savings,” said Pamela Hess, director of retirement research at Aon Hewitt. “Auto-enrollment is a relatively simple and effective way for companies to help workers plan for retirement—especially younger workers who may not feel the immediate pressure to save for retirement.”

    Once workers are enrolled in 401(k) plans, their investing habits are often suboptimal. Aon Hewitt research shows that many employees are not investing in a diversified portfolio, are taking inappropriate risk and very few rebalance their portfolio regularly, if at all. Therefore, more companies are offering tools and services to help participants make better decisions. To simplify investment decision making, more than half (56 percent) offer online investment guidance and 36 percent offer online investment advice and managed accounts. In 2010, just 28 percent of employers offered managed accounts. Further, a vast majority (83 percent) offer target-date funds, which often appeal to younger workers. As companies make changes to their defined contribution plans for 2011, many are adding solutions. In fact, nearly half (47 percent) are likely to add an online guidance feature, over a third of companies (36 percent) are likely to offer online advice and 30 percent are considering offering managed accounts.

    “Amid the recent market volatility there has been a dramatic difference in outcomes among people who sought out investment assistance versus those who have not,” Hess explained. “Employers are seeing the disparity and realize they need to step-up their efforts to ensure workers are saving adequately for retirement and have an investment strategy. At the same time, companies acknowledge the diverse needs of the workforce and understand that they need to offer a variety of investment advisory tools to meet the various needs and savings habits of their employees.”

    Companies are also increasingly focusing on services and products to help workers manage their nest-egg throughout retirement. Nearly two-thirds of employers (61 percent) provide online modeling tools to help employees determine how much they can spend each year of retirement based on their current savings levels. Additionally, more than one quarter (27 percent) already provide some form of retirement income solution. Nearly one in five plans (19 percent) facilitate annuities either outside, or within a plan and 13 percent plan to add one of these in-plan solutions this year, including managed payout funds, managed accounts with drawdown feature and annuities.

    “While employers continue to remain focused on helping workers save sufficiently to meet their retirement needs, they also understand that there is a need to assist workers in spending down their savings during retirement,” says Hess. “We expect an increasing number of companies to assess the marketplace and begin adopting new services and products, such as managed payout funds, managed accounts with drawdown feature and in-plan annuities.”

    Other key findings of the survey include:

    • Most companies (85 percent) plan to review their defined contribution fund operations in 2011, including fund expenses and revenue sharing. Further, nearly half (48 percent) indicate they will review the total plan cost more frequently and/or thoroughly during the year. Additionally, 69 percent of companies indicate they will increase the amount of employee communication surrounding investments and plan fees.
    • More than a third of employers (34 percent) offer Roth 401(k), up from 29 percent in 2010. Of those not currently offering this option, 38 percent indicate they will add the capability in 2011.
    • Nearly a quarter (23 percent) of employers suspended or reduced company matching contributions in the past two years. Of those, more than half (55 percent) have already reinstated it in some form and 18 percent plan to reinstate or increase it in 2011. Another 11 percent plan to do so in 2012 or later.
    • A vast majority of pension plan sponsors (75 percent) plan to make no changes to plan design in 2011. However, more employers are likely to close or freeze their defined benefit plans in the coming year. Among the plans that have ongoing accruals for some or all employees, 16 percent say they’re very likely to freeze accruals during 2011, compared to just 9 percent in 2010. In addition, among plans that are open to new hires, 13 percent are very likely to close participation to new employees, up 4 percentage points from 2010.
    • Retiree medical benefits will continue to decline. Seven-in-ten employers provide some type of post-retirement medical coverage to their current or future retirees. Nearly two thirds (65 percent) currently offer prescription drug coverage to post-65 retirees and file for the Medicare Part D Retiree Drug Subsidy (RDS). However, only 53 percent of companies plan to keep the same strategy in 2013 when the health care reform law eliminates the tax-free nature of the Medicare Part D subsidy.

    Source : AON Hewitt Press Release

    0 1

    Exposure to road traffic noise boosts the risk of stroke for those 65 or older, according to research published online Wednesday in the European Heart Journal.

    In a survey of more than 50,000 people, every 10 additional decibels of road noise led to an increase of 14 percent in the probability of a stroke when averaged for all age groups.

    For those under 65, the risk was not statistically significant. But the risk was weighted hugely in the over-65 group, where it rose 27 percent for each 10 decibel increment.

    Above 60 decibels or so, the danger of stroke increased even more, the researchers found.

    A busy street can easily generate noise levels of 70 or 80 decibels. By comparison, a lawnmower or a chainsaw gives off 90 or 100 decibels, while a nearby jet plane taking off typically measures 120 decibels.

    “Previous studies have linked traffic noise with raised blood pressure and heart attacks,” said lead researcher Mette Sorensena of the Danish Cancer Society.

    “Our study shows that exposure to road traffic noise seems to increase the risk of stroke.”

    The study reviewed the medical and residency histories of 51,485 people who had participated in the Danish Diet, Cancer and Health survey, conducted in and around Copenhagen between 1993 and 1997.

    A total of 1,881 people suffered a stroke during this period.

    Eight percent of all stroke cases, and 19 percent of cases in those aged over 65, could be attributed to road traffic noise, according to the paper.

    The researchers suggest noise acts as a stressor and disturbs sleep, which results in increased blood pressure and heart rate, as well as increased level of stress hormones.

    The study factored in the effect of air pollution, exposure to railway and aircraft noise, and a range of potentially confounding lifestyle factors such as smoking, diet and alcohol consumption.

    The survey cohort lived mainly in urban areas and was thus not representative of the whole population in terms of exposure to road traffic noise.

    Proximity to road noise is also related to social class, as wealthier people can afford to live in quieter areas.

    Paris, Jan 26, 2011 (AFP)

    0 2

    Although 2010 was marked by many significant and expensive catastrophes, most of these occurred in areas where Hiscox had deliberately reduced exposure due to weak rates. On the 16 March 2010 Hiscox estimated net claims of £100 million for two of these events, the Chilean earthquake and Windstorm Xynthia. Currently the net estimate for Chile, Xynthia and the New Zealand earthquake combined is approximately £115 million. This includes estimated net claims for the New Zealand earthquake of approximately £37 million, based on an insured market loss of NZD 6 billion (NZD 4 billion from the New Zealand Earthquake Commission, December 2010).

    Hiscox estimates net claims arising from the UK’s winter freeze during November and December will reach £16 million. These claims are in addition to the UK winter freeze last January. Despite this, Hiscox UK’s household business remains on track to make a healthy profit.

    Hiscox’s position on the Australian floods is still evolving, however we believe we are underweight in this area.

    Renewal rates

    During the January renewal period the Hiscox London Market division, which underwrites a mix of reinsurance and insurance, saw an average rate reduction of -1.5% on renewal business. Hiscox Bermuda’s open market reinsurance business saw an average rate reduction of -7.5% on renewal business. Hiscox will continue to mitigate falling rates by actively managing the book: walking away from risks that are poorly rated and increasing capacity in areas where rates are more attractive.

    Investment return

    The investment return for 2010 is approximately 3.6% calculated on the average value of the portfolio over the year. Faced with signs of stronger US economic growth, investors generally sold government bonds and bought equities in the fourth quarter. Our bond portfolios were protected by their short duration and allocation to credit, whilst our equities provided a useful return for the period. The value of the portfolio at the end of the year was approximately £2.8 billion.

    Hiscox will report its preliminary results for the financial year ending December 2010 on 28 February 2011.

    Source : Hiscox Press Release

    0 0

    A German doctor on trial for allegedly killing 13 cancer patients has committed suicide, apparently with an overdose of morphine, prosecutors said on Tuesday.

    “We have ordered an autopsy,” the prosecutor’s office in the northern city of Hildesheim said in a statement after an acquaintance found the lifeless body of Mechthild Bach in her bed on Monday. She is believed to have died overnight.

    Bach, dubbed the “Angel of Death” in the German press, went on trial on October 2009 accused of 13 counts of manslaughter committed between 2001 and 2003 at a hospital in the northern city of Hanover.

    Bach, 61, was accused of stopping the patients’ proper drug regimen and injecting them instead with lethal doses of the drugs morphine and Valium — and without proper consultation.

    Prosecutors said the patients, who ranged in age from 52 to 96, were sick but that none was at death’s door.

    Bach had denied the charges, saying that she had never killed a patient but had aimed to ease their suffering with pain medication.

    Prosecutors said Tuesday Bach had written several suicide notes to friends and family citing the trial as the reason she wanted to end her life.

    The court had said last week that two of the 13 counts could be elevated to murder, meaning she could have faced life in prison.

    The case came to light when an insurance company noted a suspiciously heavy use of morphine in the cancer ward of the hospital where Bach worked.

    Berlin, Jan 25, 2011 (AFP)

    0 0

    Eleven people appeared in court on Monday (January 24) charged in connection with an alleged “cash for crash” conspiracy.

    Following a joint police operation between the Insurance Fraud Bureau and Cambridgeshire

    Constabulary, the following 11 appeared at Peterborough Magistrates’ Court, charged with conspiracy to defraud insurance companies between January 1, 2006 and January 5, 2011:

    – Naeem Akhtar, 28, of Clare Road, Peterborough,

    – Wahid Hussain, 38, of Gladstone Street, Peterborough

    – Ali Askher, 44, of Silverwood Road, Peterborough

    – Atia Rasul, 43, of Clarence Road, Peterborough

    – Mohammed Faisal Ali, 20, of Clarence Road, Peterborough

    – Misbah Hussain, 29, of Harris Street, Peterborough

    – Shafaqat Hussain, 26, of Harris Street, Peterborough

    – Shawizia Khatoon, 32, of Hankey Street, Peterborough

    – Ali Arshad, 39, of Harris Street, Peterborough

    – Rozmina Nathoo, 43, of Briar Way, Peterborough

    – Taswin Nathoo, 47, of Briar Way, Peterborough

    The 11 were bailed to return to Peterborough Crown Court on January 31.

    Source : IFB Press Release