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Ace Ltd., the Swiss insurer operating in more than 50 countries, agreed to buy New York Life Insurance Co.’s Hong Kong and South Korean life operations for about $425 million.

The transaction, which is subject to regulatory approvals, is expected to be completed in the first quarter next year, Ace said in a statement today. The purchase will help it expand into the two north Asian markets where it has property and casualty insurance operations and $2.15 billion of assets, it said.

The units are Ace’s third acquisition in Asia after agreeing to buy Malaysian general insurer Jerneh Insurance Bhd. for about $210 million last month. Chief Executive Officer Evan Greenberg is expanding after staying profitable through the credit crisis and has announced $1.75 billion of acquisitions this year.

“Within the first full year of ownership, the acquisition will be accretive to both earnings and book value per share and will achieve a return on capital that meets our targets,” Greenberg said in today’s statement.

Ace last month also agreed to pay $1.1 billion for a majority stake in Johnston, Iowa-based Rain & Hail Insurance Service Inc. It bought a 22 percent stake in Huatai Insurance Co., a Beijing-based property and casualty insurer, for $150 million in 2002, According to data compiled by Bloomberg.

New York Life was earlier in talks to sell its Hong Kong, Korea and Taiwan markets to Manulife Financial Corp., Canada’s largest insurer, and Primus Financial Holdings Ltd., which had bid for the Hong Kong business, two people familiar with the matter said in September.

“We have a new strategy in Taiwan that builds on our multi-distribution capabilities,” said Bill Werfelman, a New York Life spokesman. He declined to comment on whether the company will consider selling its Taiwan business.

New York Life, the biggest U.S. life insurer owned by policyholders, also has operations in India, China and Thailand. The company derived 21 percent of life insurance sales from international markets, according to its 2009 annual report.

Goldman Sachs Group Inc. advised Ace on the acquisition and New York Life was advised by Deutsche Bank AG.

Source : Bloomberg

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Apollo and CVC finally published details of their offer on Tuesday as Brit released an update on its trading performance to the market. The private equity firms are offering up to £871m for Brit, a premium of as much as 51pc to the company’s share price back in June before the deal was first announced.

Under the deal, Brit shareholders will receive a minimum cash payment of £10.75 a share. However, they stand to receive up to 25p a share more if Brit’s net tangible asset value at the end of the year is equal or greater to £11 per share. If the figure is below £10.75 then no additional payout will be made.

“I am pleased that we have reached agreement on the terms of the offer which values Brit Insurance’s shares at a significant premium,” said John Barton, chairman of Brit Insurance.

Brit’s share price hit a 12-month high on the back of the news, with the shares closing up 24p at £10.45 on Tuesday. In an interim management statement, Brit said gross written premiums had declined 8.5pc to £1.22bn in the nine months to September 30, which the company said was the result of what it described as “excessive pressure” on renewal rates.

“Underwriting remained competitive in most classes whilst the group again experienced better than expected investment returns,” said Dane Douetil, chief executive of Brit. Mr Douetil and the rest of Brit’s management team have pledged their support to the private equity firms’ offer, and several of the insurer’s independent directors are also backing it.

Brit, which is best known as the sponsor of The Oval and Test match cricket on Sky Sports, will maintain its domicile in the Netherlands after the deal, according to the private equity firms. The private equity firms have established a set of Netherlands-based companies to acquire the company.

No change of domicile is expected once the deal is completed and the private equity firms confirmed that they would be making no changes to the employment conditions of the company’s staff.

Source : Telegraph

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A survey by Aon Hewitt of over 300 pensions professionals has indicated that companies are seeing the April 2011 deadline for changes to pensions taxation as achievable but definitely challenging.  Nearly a quarter of the survey respondents said they were not confident of being adequately prepared, citing issues with scarce pension resources.  The survey was carried out last week as part of an Aon Hewitt teleconference to discuss the recently announced changes.

Tony Baily, principal consultant at Aon Hewitt and leader of its pension taxation team, said:
“It was clear from the response on our teleconference that these tax changes pose substantial challenges for companies. Between now and next April, companies need to review their pension remuneration and reward policies for the high earners who are affected by the tax changes, make their policy decisions and then communicate the changes in order that members can make informed choices.”

“Given that two fifths of the survey respondents indicated they had between 10 and 100 members impacted by the tax changes, it’s clear that this is not a trivial task.  Companies need to get policies, communication and administration support lined up to deal with a change of this magnitude.  And remember – this is their key talent that is being affected.”

Tony Baily continued: “Although the new tax regime starts in April 2011, for some pension schemes the reduced Annual Allowance of £50,000 already applies. This makes the need for a review of existing arrangements and member communication even more pressing.  It’s a complicated picture that will need careful individual handling.”

Dealing with the changes will also trigger considerable administrative change. June Grant, a principal consultant in the Aon Hewitt Benefits Practice said: “Schemes will have to decide whether to take a proactive or reactive stance to dealing with the new disclosure requirements and the provision of data to members to compute their pension inputs.  With a handful of cases you may be able to deal with ad-hoc requests but for larger numbers a more structured approach will be required. For some it may make sense to realign your scheme year-end with the tax year and change the format of annual benefit statements to be as helpful as possible to your members.”

More positively, the proposals from HMRC offer some welcome changes from previous proposals and give significant flexibility for schemes. Tony Baily said:

“I was quite surprised that over half of the pensions professionals on our call said they had no intention of changing their scheme benefit design to take advantages of some of the new features. This is understandable for pure DC schemes – where a simple cash alternative saving is an obvious solution – but many DB schemes may be missing the full opportunities that the new rules offer.

“We would urge schemes to think about their options in the near future, in order to take advantage of some of the very attractive opportunities that the new regime offers.”

Source : Aon Hewitt Press Release

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Homeowners could get discounts on their home insurance premiums if they carry out a few DIY home improvements to their security.

Graeme Trudgill, technical and corporate affairs executive at the British Insurance Brokers Association, recommends fitting industry-approved locks as he says insurers look favourably on homes with such security measures. Those who install burglar alarms could also get cheaper premiums.

He explained: “Improvements like this will also act as a deterrent to criminals. If a burglar is walking down the road and there are a couple of houses that he is interested in, if one has got an alarm flashing away and other one hasn’t, then he may well take the easy option. Anyone installing alarms or other security measures such as locks and CCTV systems should speak to their insurance broker first. They will advise you on which ones will give you a discount and which ones are the best ones.”

Source : Insurances

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    France’s fiercely-contested pensions reform bill is expected to clear parliament this week and will probably be adopted as law on November 15, a senior advisor to President Nicolas Sarkozy said Sunday.

    The bill, which increases the minimum retirement age from 60 to 62, was approved by the Senate on Friday and will now be reconciled with a version passed by the lower house before getting the final nod on Wednesday.

    Following its adoption, France’s constitutional court may be asked to sign off on its legality and Sarkozy expects to be able to put it into the official gazette on November 15, advisor Raymond Soubie told Europe 1 radio.

    “This reform will pass. It’s a victory for France and the French,” Soubie said, noting that recent protests against the reform had failed to paralyse public services and that labour leaders had been “quite reasonable.”

    Once a French law is in the “Journal Officiel” its individual measures are put into administrative practice through “decrees of application”.

    French workers have enjoyed the right to retire on a state pension at 60 since 1982, and the measure is seen as one of the great social advances of former Socialist president Francois Mitterrand’s time in office.

    But Sarkozy insists that, at a time of rising life expectancy and soaring budget deficits, France can no longer afford to retire earlier than other industrialised countries. He has staked his credibility on pension reform.

    The passage of the bill has triggered a wave of strikes and street protests around France, and two more major days of trade union action are planned in the coming weeks as the bill makes its way onto the statute books.

    Paris, October 24, 2010 (AFP)

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    The ACE Group of insurance and reinsurance companies announced today that it has been named to the 2010 Carbon Performance Leadership Index (CPLI) by the Carbon Disclosure Project (CDP), an independent, not-for-profit organization that gathers and scores primary corporate carbon emissions information from thousands of businesses around the world.  ACE is among 48 companies – and one of only three insurance companies – in the CDP’s Global 500 to earn this recognition.

    The CPLI primarily serves as an evaluation tool for institutional investors by highlighting companies that have demonstrated commitment to strategy, governance, stakeholder communications and emission reductions.  The Global 500 report, compiled by PricewaterhouseCoopers for CDP, is based on analysis of companies’ responses to a series of questions regarding greenhouse-gas emissions and reduction targets as well as the risks and opportunities associated with climate change.  The Global 500 represents the world’s 500 largest public companies in the FTSE Global Equity Index Series based on market capitalization.

    “We’re pleased to be recognized on this distinctive global listing,” said Evan Greenberg, Chairman and Chief Executive Officer, ACE Limited. “ACE takes a broad view of the responsibilities and challenges associated with climate change.  We recognize that there is an opportunity to help clients manage the economic impact from climate related risk, that we can be part of the solution by reducing our own environmental impact and supporting related causes, and that investors, clients and other stakeholders have an increasing interest in companies’ performance in these areas.”

    Paul Dickinson, Chief Executive of CDP, commented: “Companies in this new Carbon Performance Leadership Index are demonstrating leadership in their commitment to manage greenhouse gas emissions.  Companies which manage and reduce their emissions, maximize business resilience and capitalize on opportunities, will be the best placed to succeed as we move towards a low carbon economy.”

    The Global 500 Report including names of companies featured in the CPLI and the methodology can be found at www.cdproject.net.  ACE’s 2010 Environmental Report is available on the “ACE and the Environment” page of its website.

    Source : ACE Press Release

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    Brit Insurance, the international general insurance and reinsurance group, is pleased to announce that Jonathan Mudd, North American Professional Indemnity Underwriter in its Global Markets business, has been promoted to Class Underwriter and takes up this new role with immediate effect.

    Jonathan joined Brit Insurance as a graduate in 2003 and progressed to the role of North American Professional Indemnity Underwriter within two years. In particular, he has been involved in developing groundbreaking technical models to service the team’s broad range of clients.

    He is also an active figure in the London Market, helping to re-form the Young Members’ Committee (YMC) of the Insurance Institute of London (IIL) in 2004 and becoming its Chairman in 2008. He has also just been made one of the youngest Vice Presidents of the IIL in its history.

    In his new role, Jonathan will be responsible for managing the North American PI book of business within the company’s worldwide Professional Lines Division headed by Janet Henderson.

    Matthew Wilson, CEO of Brit Insurance’s Global Markets business unit, commented:

    “Jonathan has shown a huge commitment to his role and to the London Market since joining Brit Insurance seven years ago and his appointment as Class Underwriter is a well-deserved one. He is an extremely talented technical underwriter who balances measured risk taking with trusted and open broker liaison.”

    Source : Brit Insurance Press Release

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    Aon Benfield, reinsurance intermediary and capital advisor, today announces the launch of its latest review of the Lloyd’s marketplace, which analyses the financial performance of the organization during the first half of the year.

    The new report, Lloyd’s Update, reveals that Lloyd’s 1H pre-tax profit totalled GBP628 million – a decrease of GBP694 million on the prior year period – while gross premiums written remained virtually unchanged over 1H 2009, totalling GBP13.5 billion.

    The lower result was due to a combination of factors including decreased investment yields and a softening rates environment. However, a large increase in catastrophe claims was the single biggest factor in Lloyd’s profits decline – exposure to the Chilean earthquake and Deepwater Horizon oil rig disaster resulted in net claims estimated at USD1.4 billion and USD300-600 million respectively.

    Mike Van Slooten, head of Aon Benfield’s International Research team, added: “Catastrophe claims are a fact of life at Lloyd’s and allow the market to reinforce its claims-paying credentials. More importantly, the underlying underwriting performance remains resilient, which is evidence of the good discipline instilled by the Franchise Performance Directorate.”

    Throughout 2010, Lloyd’s continued to be an attractive destination for capital, with interest being shown both from existing players looking to increase their position at Lloyd’s, and new capital seeking to make an entrance into the marketplace.

    Meanwhile, the organisation continues to be proactive in its preparations for Solvency II, the new European regulatory regime that is due to be implemented in 2013. Lloyd’s management forecasts that overall regulatory capital requirements will increase by 5-10 percent under Solvency II provided the market’s internal model is approved by the U.K. regulator.

    Source : Aon Benfield Press Release

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    One in five UK holidaymakers chooses to be uninsured when jetting off on holiday, new research shows. With many Brits currently looking for winter sun getaways, ABTA’s recent Consumer Trends survey revealed that most travellers don’t have travel insurance when venturing abroad.

    With 19 per cent of British travellers opting out of any travel insurance policy and 17 per cent saying that it is travel insurance is not important, a large number of Brits risk large medical bill abroad, according to ABTA.

    Mike Monk ABTA Head of Finance said, ‘It is very worrying that almost 1 in 5 holidaymakers are going abroad without insurance and running the risk of substantial medical bills. Many of these believe incorrectly that the Foreign Office will pay their expenses.’

    ABTA’s figures showed that 16 per cent of people asked believed that the UK government would pay their medical bills if they fell ill while holidaying abroad. Mr. Monk also warned that many UK holidaymakers are in danger of not being covered for cancellation charges due to illness or redundancy.

    But it is not only people who jet off to foreign shores that neglect to insure themselves. The consumer survey showed that 55 per cent of Brits do not purchase travel insurance when holidaying in the UK.

    Source :  I Want Sun

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    Companies for the first time report they are losing more through electronic theft of data than physical stealing of assets, risk consultancy Kroll said on Monday in an annual report on international fraud trends.

    Fraud was most often an “inside job” carried out by a company’s own employees, the poll of more than 800 senior executives worldwide showed. Worries over fraud were deterring many companies from expanding in some key emerging markets.

    China appeared the key emerging market with the highest level of fraud, with 98 percent of businesses affected. This was followed by Colombia with 94 percent and Brazil with 90 percent.

    The 2010 study showed the amount lost by businesses to fraud rose to $1.7 million (£1 million) per billion dollars sales worldwide from $1.4 million a year earlier, the report said — although this might in part be due to better detection and awareness.

    “How much fraud there is depends more on opportunity than anything else,” Tommy Helsby, Kroll chairman for Europe, Middle East and Africa, told Reuters. “Much more work is done electronically, and that creates new opportunities for fraud. It takes time for companies to catch up with that.”

    Previous Global Fraud Reports showed physical theft of cash, assets and inventory as the most widespread form of fraud by a considerable margin. This year’s findings showed electronic and information theft at 27.3 percent of total fraud losses, marginally above physical theft at 27.2 percent.

    Information-based industries particularly financial services had by far the highest level of electronic theft followed by professional services and then technology, media and telecoms.

    “There’s a real range of dangers,” said Helsby. “It can be simple theft or the risk of reputational damage if your firm loses customer data. That itself could be an existential threat to your business.”

    Junior employees and senior management were the most likely perpetrators of fraud. Staff or agents were the most common perpetrators of fraud in every region except Latin America where customers were the principal fraudsters.

    Kroll’s Helsby said the firm had also investigated data theft that appeared to have been carried out by a sovereign nation or state-linked firms particularly in emerging markets.

    Analysts and Western spy agencies are increasingly concerned about “state capitalist” nations such as China stealing intellectual property from firms, but Helsby said from his anecdotal experience he could not say whether this was increasing or not.

    Almost half of respondents said fear of fraud had dissuaded them from pursuing business opportunities in at least one foreign country — particularly China, Africa and Latin America.

    “That means you miss out on some of the fastest growing markets,” said Helsby. “You can’t make the risk go away, but you can manage it through having the right systems in place.”

    But perhaps because of the financial crisis, enthusiasm for new systems was falling. Only 48 percent of companies were planning on spending more on information security in the next 12 months, down from 51 percent last year.

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    Brit Insurance, the international general insurance and reinsurance group, is pleased to announce that Vivek Banga, currently UK Distribution Leader, Small Business and Personal Lines, is to take up the role of Head of UK Distribution with immediate effect.

    Vivek, who joined Brit Insurance in March 2010, will continue to report to Simon Cooter (Director of Market Management & Regional Operations) and will now have additional responsibility for developing and overseeing channel strategy for the UK’s core product range, aimed at businesses with a turnover of up to £300m.

    Vivek will work closely with the UK’s leadership team and regional operations to ensure Brit Insurance optimises its position with target national and regional brokers. This will include the identification and development of scheme business aimed at key target sectors.

    Ray Cox, CEO of Brit Insurance’s UK strategic business unit, commented:

    “Since joining Brit Insurance earlier this year, Vivek has made a real impact on how we look at distribution, both in terms of e-trading and more traditional channels, particularly in the small business arena. Widening his remit brings the benefits of his strategic approach and distribution experience to our entire UK business.”

    Source : Brit Insurance Press Release

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    French President Nicolas Sarkozy on Tuesday vowed action against strike-induced fuel shortages threatening to paralyse the economy as workers and students rallied to defend their right to retire at 60.

    The latest day of protests, the sixth since September, drew more than half a million people onto the streets, police said, fewer than on the last comparable day, with 480,000 nationwide in the morning and 67,000 later in Paris.

    But the CGT, France’s biggest union, estimated turnout in Paris at 330,000, which it said was equal to the October 12 march. Unions’ estimates at recent demonstrations have habitually been several times higher than those of police.

    With more than 200 protests on Tuesday, all 12 French oil refineries shut down by strikes and truckers blocking roads, Sarkozy said the cabinet would draw up a plan to stop France grinding to a standstill.

    “In a democracy, everyone can express themselves but you have to do so without violence or excesses,” Sarkozy told journalists in the French resort of Deauville following a summit with Russian and German leaders.

    “I will hold a meeting as soon as I return to Paris to unblock a certain number of situations, because there are people who want to work and who must not be deprived of petrol.”

    Production at French oil refineries has been shut down since last week and fuel shortages have hit more than 2,600 petrol stations, or around one in five nationwide, according to an AFP tally of oil industry figures.

    Environment and transport minister Jean-Louis Borloo said that “a little under 4,000 petrol stations are awaiting deliveries” — there are 12,500 filling stations in France.

    French fuel and heating federation FF3C said the “extremely worrying” situation “should definitely be called a shortage,” while the International Energy Agency said France has “sufficient stocks” to deal with the situation.

    Authorities in Normandy requisitioned 12 petrol stations for use by rescue and emergency services, while Prime Minister Francois Fillon said a third of departments or local administrations were experiencing fuel shortages.

    Fillon said that the government’s fuel resupply programme would see the situation restored to normal in four or five days’ time. While the Paris metro is running almost normally, people in rural areas are finding it increasingly difficult to get to work, the CPME association of small and medium businesses said.

    The interior minister promised tough action as clashes erupted anew outside a secondary school in Nanterre, near Paris, where youths burned a car and threw rocks at riot police for the second day in a row.

    Police fired tear gas and arrested nine youth protestors in the central city of Lyon who had overturned cars and set one alight.

    The ministry said that 1,158 troublemakers had been arrested at demonstrations since the start of the week, 163 of them on Tuesday morning.

    Truckers staged go-slows on motorways near Paris and several provincial cities, while drivers blocked access to goods supply depots and joined oil workers blocking fuel depots to protest raising the minimum retirement age from 60 to 62.

    The powerful CGT union’s transport section called for their strike action to be renewed on Wednesday, encompassing airport staff, air traffic controllers, public transport workers and employees of national railways operator SNCF.

    Former Socialist prime minister Laurent Fabius appealed to Sarkozy to open dialogue with the unions, warning of possible “excesses”.

    Half of flights from Paris Orly airport were cancelled on Tuesday, and around one in three at the main Roissy-Charles de Gaulle and regional airports.

    Slightly over half of express TGV trains ran, while the Eurostar line under the Channel to London operated normally and nine out of 10 high-speed Thalys connections ran to Belgium.

    As well as train workers and truck drivers, postal workers, telephone employees, teachers and sections of the media are also on strike.

    Unions want to force Sarkozy to abandon a bill to raise the minimum retirement age to 62, which is in the final days of its journey through a parliament in which the right-wing leader enjoys a comfortable majority.

    Most French back the current protests, with a poll published Monday in the popular Le Parisien daily showing that 71 percent of those asked expressed either support or sympathy for the movement.

    Paris, October 19, 2010 (AFP)

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    Paul Hodgson, formerly MMA’s Head of Underwriting, Commercial has been promoted to the newly-created role of Director, Commercial Underwriting.

    Paul will report directly to Colin Batabyal, MMA’s newly appointed Underwriting Director. The creation of Paul’s role recognises the increasing importance and focus on commercial lines as the company seeks to expand and develop in this market.

    Paul has been with MMA for four years during which time he has led the regional expansion of MMA’s office network and its focus on bespoke commercial underwriting. He has held a variety of underwriting, relationship management and marketing posts during his career, which also includes senior roles at Zurich and RSA.

    Commenting on his new position, Paul said: “My job is to demonstrate our commitment to growing our commercial lines book and to ensure that growth is profitable. We’ve spent two years establishing a regional network of strong, flexible underwriting teams around the country and now we’re really seeing the benefits. Having quality underwriters working closely with broker partners in their local market places is a win-win situation as far as I’m concerned. I’ll also be using the lessons we’ve learned from the success of our bespoke business to push harder in micro SME and package business this year and next.”

    Commenting on the appointment Garry Fearn, CEO, said “Paul has a huge amount of experience in the Commercial market and this promotion demonstrates the importance we place on this part of our business. Paul’s contribution over the last four years has been critical to the success we have enjoyed and he will play a key role in our future plans”.

    Paul Hodgson takes up his new role with immediate effect.

    Source : MMA Press Release

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    AIG will close the institutional books for the AIA IPO on Tuesday, two days ahead of schedule due to strong demand.   AIG will sell more than half its stakes in its Asian life insurance unit expecting to raise $20.5 bn.

    Large Chinese institutions such as China Investment Corp, China Life and Ping An Insurance are expected to take stakes in the IPO.

    Online media in Hong Kong on Monday reported that banks are offering record low interest rates for margin loans to invest in the AIA IPO.

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    Your life has been turned upside down by a natural disaster or fire that damages your home, or a burglary resulting in a loss of your personal possessions. Thankfully you are covered by a home insurance policy, but you have to make a claim in the midst of your household chaos. Take a deep breath, follow a few simple steps and the process becomes much less daunting.

    Step one is to keep in mind your home insurance policy is a contract between you and your home insurance provider with set responsibilities for each party. Take the time to look over your home insurance policy to determine what is expected of you when filing a claim. Ideally you have already covered this aspect of your home insurance before needing to file a claim.

    You should contact your agent or home insurance provider as soon as possible after the claimable event, and immediately report any crime involved such as burglary or vandalism to the police. If your home is damaged in a way you can make temporary repairs – broken windows or doors from a burglary or vandalism, damage from high winds or other natural phenomena – take care of those repairs as soon as possible to prevent any further damage to your house and keep track of repair expenses to include with your home insurance claim.

    Your home insurance provider will want a list of everything involved in the claim. This includes damaged items and detailed lists of any lost or stolen possessions. If you have the damaged items on hand keep them for the home insurance adjustor. It’s also a good idea to take photographs to have an immediate record of damages.

    Get your home insurance claim forms and fully fill them out as soon as possible to keep the claim process moving quickly, and be prepared for your home insurance provider to send an adjuster to your home to assess your claim.

    Once the adjuster has taken a look at your home you will likely be given a check as an advance against your claim settlement. This is not your final payment and does not represent your total settlement. If your loss includes both the structure and your possessions you will most likely get two checks, one for each type of claim. Remember if the event that spurred your home insurance claim forces you to temporarily move out of your home, your home insurance probably covers those expenses. If this is the case with your home insurance claim you will receive a third check for your living expenses while away from your home.

    Source : Fbsniper

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    U.S. based insurer MassMutual will sell its stake in a joint venture with partner Mercuries Corp for T$3 billion ($97 million), in the latest exit by a foreign player of Taiwan’s $52 billion life insurance market.

    Mercuries and its units will buy MassMutual’s 39.01 stake in the venture, MassMutual Mercuries Life, adding it to their existing combined 39.01 percent, said Edward Pu, an assistant vice president of Mercuries.

    “The deal comes as MassMutual adjusted its overseas strategy,” Pu said. “Foreign insurers have pulled out the Taiwan market one after another.”

    Prudential Plc, ING Groep and Aegon have all pulled out of Taiwan’s low-growth market, in part to help shore up finances at home during the financial crisis. A stricter accounting system to be put in place in Taiwan also contributed to the exits.

    Bailed-out U.S. insurer AIG and MetLife are both trying to sell their Taiwan assets.

    The MassMutual joint venture is Taiwan’s sixth-largest life insurer with assets of T$416.2 billion, 1.6 million policy holders and more than 12,000 agents.

    Mercuries plans to list the venture in Taiwan around 2012, Pu said.

    At 0200 GMT, Mercuries shares had risen 2.4 percent, while the broader market was unchanged. Mercuries expects to close the transaction at year-end, after submitting to Taiwan regulators later this month, Pu said.

    Source : Reuters

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    New legislation means that parents can keep their children on their individual or group health insurance plans until they are 26 years old, regardless of whether they are still studying, are married or single, or live away from their parents. This gives parents and their offspring another option, apart from programs for low-income individuals or health plans aimed at students.

    Less than 1 in every 3 people in the USA aged between 19 and 29 currently has health coverage. This new legislation aims to address this. The uninsured rate among employed young adults is about 33% higher than older employed adults.
    Authorities say that the majority of companies that have many employees will be offering health insurance for adult offspring, open-enrollment will start this autumn for plans that start at the beginning of 2011. According to HighRoads, a human resources consulting company, approximately three-quarters of companies in their survey will provide employees with information regarding adult-child health-insurance coverage, as well as some other plans.

    Many experts comment that parents should be aware of the financial savings by keeping an adult offspring on the health plan provided by their employer.
    Under group health insurance plans, employers pay 70% of the family coverage premium and the employee pays 30%.

    This does not mean a parent’s offspring will be eligible for coverage straight away. Although the provision is from September 23rd, extending the coverage for an adult child does not have to begin until the start of a new plan year, which in most cases is January 1st. It is important to remember that coverage is not automatic – parents have to add their child when they enroll in their plan for the coming year. If a child becomes eligible after the end of the enrollment period, their parent’s employer will have to give them 30 days to enroll.

    If parents enroll their adult children during the 30-day enrollment period, their plan must cover their adult child from the first day of that plan year or policy year.
    According to the US Department of Health and Human Services, saying that young people do not need health insurance is a myth. Approximately 1 in every 6 young adults in the USA has a chronic illness, such as asthma, diabetes or cancer. Almost half of all young American adults say they have difficulties paying their medical bills.

    Source : Medical News Today

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    Today Resolution has announced the proposed acquisition of Bupa Health Assurance Limited (BHA) by Friends Provident Life and Pensions Limited, a subsidiary company of Resolution. The attached announcement gives full details.

    Commenting on the acquisition, Trevor Matthews, CEO of Friends, said: “This acquisition will strengthen our Group Risk product range and improve the profitability of our Individual Protection business. The BHA management team led by Steve Payne will bring additional highly valued expertise to the Friends team.”

    Key points from today’s announcement are:

    The proposed transaction demonstrates further progress in Resolution’s UK Life project by strengthening Friends Provident’s Individual Protection offering and Group Risk proposition.

    The combination of BHA’s Group life, critical illness, income protection and flexible benefits arrangements with Friends Provident’s group income protection scheme will significantly strengthen our proposition and allow Friends to offer a complete suite of group risk products to intermediaries alongside our corporate pension proposition.

    IFAs will have a range of protection solutions for their clients’ needs available from the Friends/AXA/BHA range which means they can choose the one most appropriate for each client.

    BHA will be run as a stand-alone business within the Friends provident group for a period of up to a year. The Managing Director of BHA, Stephen Payne, will report directly to Trevor Matthews.

    In addition to the proposed acquisition of BHA, and in the context of Bupa’s general review of its distribution arrangements, Friends and Bupa have agreed to explore ways in which Friends can introduce the Bupa private medical insurance product to its distribution channels and markets and Bupa can introduce the Friends insurance products to its distribution channels and markets.

    Source : Resolution Press Release

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    The BGL Group today reported a strong performance in a challenging market, with the announcement of its financial results for the year July 2009 to June 2010.

    Thanks to growth within the Group’s price comparison site, comparethemarket.com, strong cost control and supplier management, the Group delivered a profit of £62 million, up 16 per cent on the previous year.

    BGL Group Chief Executive, Peter Winslow, said: “During the year our margins came under significant pressure, and with customers still driven to control spending, our challenge was to closely manage pricing and find new ways to drive value. We continue to invest heavily in the future growth of the Group. “

    The Group’s financial results for 2009/10 are compared below against the preceding year:

    2009/10 2008/09
    Pre tax profit £62 million £54 million
    Profit growth 16 per cent 24 per cent
    Number of customers 3.5 million 2.7 million

     

    Breif highlights:

    – Comparethemarket.com drove significant income for the Group, outperforming its plans and experiencing 70 per cent growth against a market growth rate of 20 per cent. The ‘meerkat’ marketing campaign continued to play an important role in this success with new initiatives – including a ‘movie-trailer’ advertising approach, an iPhone application and an Aleksandr soft toy – keeping the campaign fresh with consumers. Commercially, comparethemarket.com further developed its established motor and home insurance business and also introduced several new product lines including life insurance, mortgages and pet insurance. These initiatives have led to an improving income per visitor trend.

    – Further growth of Junction, with the pinnacle of its achievements a multi-million pound contract with a major banking group to launch a motor insurance scheme in January 2011. Junction also secured a five year contract with Santander to deliver a new online home insurance product, plus add-ons including legal expenses and home emergency cover. In addition, Junction acquired Bradford & Bingley’s home and motor insurance business and a ten-year brand licence. Existing partner portfolios were expanded for brands including Post Office®, M&S Money and Auto Trader. Junction has an impressive track record in retaining contracts and growing business. Its extensive portfolio of well known, trusted brands includes RAC, HSBC, Co-operative Insurance Services, More Th>n and yesinsurance.co.uk.

    – BGL has invested more than £30 million in leading-edge technology for strategic customer service programme. This replaces legacy systems and will ultimately power all BGL’s customer service activity and sales processes across multiple channels. The system will deliver greater customer MI as well as process efficiency which will ultimately benefit insurer partners.

    – As part of a focus on customer retention, Bennetts, the number one for bike insurance, launched ‘Bennetts Exclusives’, which provides discounts for biking gear including clothing and tyres, money off Silverstone tickets and short breaks, and access to money-can’t-buy events. Customer retention rose by over 18 per cent year on year and is now at record levels.

    – A new knowledge management system was implemented across Fusion, our contact centre business. It enables our contact centre advisors to keep up to date with the product, brand and regulatory information they need to provide customers with a first class service. In addition, we established a ‘Universal Advisor’ approach, multi-skilling our people so that customers need not be transferred to different departments, giving them faster access to the services they require.

    – A new Personal Accident Cover add-on for customers. This provides them with peace of mind. Initial sales surpassed expectations and it continues to be a popular addition to customer policies.

    – the amount donated to good causes doubled, from £150,000 in 2008/2009 to over £350,000, getting a third of the way to the £1 million target by 2012. The Group’s first ever Charity Trek, raised more than £100,000 for the NSPCC and was a strong unifier; not just for participants, but for the Group as a whole.

    Peter Winslow continued: “Customer retention has also been a major focus for us, with satisfied customers three times more likely to renew. To support this, the year saw improvements to online customer journeys and documentation, and steps to ensure exceptional telephone service from our contact centre advisors. Our success has also extended beyond our financial achievements and, with the support and dedication of our employees, we are pleased to have donated a record amount to good causes during the year.”

    Source : BGL Group Press Release

    0 0

    More than 150,000 drivers put the wrong fuel in their vehicles each year, according to the AA. The numbers are likely to increase as new diesel cars now outsell petrol models* and 95% of misfuelling cases involve putting petrol into a diesel car.

    Mistakes can cost up to £5,000 and also carry an environmental cost, which the AA’s Fuel Assist service is helping to address.

    AA Fuel Assist, has now recycled 3.6 million litres of contaminated fuel since it was launched in November 2007 and has been expanded to 60 technicians across the country.

    The technicians are highly trained specialists equipped with the most advanced and safe mobile fuel retrieval system on the market, meeting strict Health & Safety and environmental regulations.

    Donald MacSporran, the AA’s Head of Technical Performance and Training, says: “Unlike many other providers, AA Fuel Assist technicians are certified and equipped to work on garage forecourts, so we come out to you and do the fuel drain on the spot.

    “Not only does this save you time and money but you can rest assured that we operate to the strictest environmental regulations – our unique sealed system pumps out the fuel directly from the fuel line, ensuring no vapour loss, and all the contaminated fuel is recycled.”

    This year alone, the AA expects to recycle around 1.5 million litres of fuel, which is eventually refined back into petrol and diesel for its original purpose.

    Think before you fill

    Donald continues: “With diesel car sales now at record levels, it unfortunately means that more people are likely to misfuel, as they switch from petrol car ownership to diesel. Diesels are now so quiet and refined that it’s easy to forget you’re driving one.

    “If you do put the wrong fuel in, ideally don’t start the engine and call us for advice. Although it’s embarrassing and inconvenient, we try to lessen the pain by offering a speedy, cost-effective solution for the customer, as well as minimising the impact on the environment.”

    Misfuelling problem

    There are an estimated 150,000 misfuels in the UK each year including the 60,000 that the AA attend – three times the number of people who call the AA after running out of fuel (20,000).

    -95% of them are people putting petrol into diesel vehicles due to the wider diesel filler neck and narrower unleaded nozzle

    – Growing problem over last few years due to the high sales of diesel cars, improved and refined diesel engine technology and the rise of multi-car ownership

    – More men than women misfuel

    – One AA Fuel Assist ‘regular’ has used the service three times so far

    – Largely a UK problem – continental Europe has had a higher penetration of diesel cars for longer, so it’s not as big an issue

    – Can be very expensive for some vehicle owners: manufacturers often recommend change of parts (as high as £5,000) and garages often charge &pound300+ for a fuel drain

    AA Fuel Assist Technicians

    – 60 dedicated, trained specialists – only do fuel drains, not general breakdowns

    – Hold ADR Class 3 for the transportation of flammable liquids

    – Hold SPA Forecourt Passport (certified to work on garage forecourts)

    – Operate within a rigorous ‘Safe System of Work’ that is constantly reviewed by trained experts in this field

    – Intensive six-week induction including Health & Safety and environmental training

    – Each technician does an average of five jobs per day

    AA Fuel Assist has now recycled 3.6 million litres of contaminated fuel – close to 800,000 gallons or around one and a half Olympic-sized swimming pools – which would drive the average family car (35mpg) 27.72 million miles, equivalent to the moon and back 58 times or 1,113 times round the equator. Buying this amount of fuel at the pump would cost more than £4 million.

    Source : AA

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