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Aon eSolutions, provider of award winning technology-based tools that improve the management of risk, insurance and safety programs, today announced that risk management tools RiskConsole and iVOS will provide clients with solutions to comply with the Centers for Medicaid and Medicare Services, or CMS, mandatory reporting requirements.

Section 111 of the Medicare, Medicaid and SCHIP Extension Act of 2007 adds new reporting rules for group health plan arrangements and liability insurance (including self insurance), no-fault insurance and workers’ compensation. The Act was created by Congress to ensure that the Medicaid/Medicare system does not pay expenses that should be covered by insurance companies or other entities. The deadline to submit these new electronic documents is Jan. 1, 2010.

Kathy Burns, chief executive officer of Aon eSolutions said: “Many of the requirements for reporting are subject to change as CMS continues to address concerns expressed by the industry. RiskConsole and iVOS will expand its solutions to provide increased benefits and value for clients as we monitor and consult with CMS on the reporting requirements.”

RiskConsole and iVOS will support the CMS reporting function in the following ways:

  • Data capture:  Enabling the ability to capture and store all data required for CMS reporting
  • Eligibility query: Generating claimant data to submit for CMS eligibility and processing eligibility responses
  • Claim reporting: Generating Medicare claims reports and importing CMS responses to reported claims
  • Adjuster level notifications: Notifying adjusters of claim errors and responses from CMS using business rules and other alerts
  • File flexibility: Enabling the submittal of liability and workers’ compensation claims in combined or separate plan-type claim files

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Initial claims for US jobless insurance benefits were unchanged last week, official data showed Thursday in a sign of stablization of the troubled labor market.

The seasonally adjusted number of new unemployment claims in the week ending November 14 remained unchanged at 505,000, slightly higher than the 504,000 expected by most economists, the Labor Department said.

It revised higher the claims registered during the week to November 7 to 505,000 from 502,000 previously.

The four-week moving average, which smooths out week-to-week volatility, fell to 514,000, a decrease of 6,500 from the previous week’s revised average of 520,500.

The total number of Americans receiving unemployment benefits also fell.

The Labor Department’s figures showed the number of seasonally adjusted insured unemployment during the week ending November 7 was 5.611 million, a decrease of 39,000 from the preceding week’s revised level of 5.65 million.

It was however still higher than the 5.598 million expected by most analysts.

The weekly report offers an up-to-date snapshot of the job market, critical to US economic recovery from recession since December 2007.

The latest initial claims reading supported a trend of slowing job losses since a March peak and was the lowest since January.

The US unemployment rate shot up to 10.2 percent in October as another 190,000 jobs were shed, the government said earlier this month.

The jobless rate, up from 9.8 percent in September, was the highest since 1983 but the number of jobs lost narrowed to the lowest level in over a year.

The US House of Representatives may pass a new economic stimulus bill by December 18 in a bid to combat unemployment, a top congressional ally of President Barack Obama said Tuesday.

With rising unemployment ahead of mid-term congressional elections in November next year, Obama and his Democratic partners have found fresh urgency in tackling the issue again, nine months after enacting a 787-billion-dollar stimulus package.

Obama has also called for jobs “summit” to be held at the White House next month in a bid to combat joblessness.

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The European Commission on Wednesday approved restructuring plans for British bank Lloyds, Dutch counterpart ING and Belgium’s KBC bank, all rescued by public bailouts during the global financial crisis.

In three separate rulings the EU competition watchdog ruled that the proposed restructuring measures were “compatible with the EU rules on state aid to remedy a serious disturbance in a member state’s economy.”

The banks received substantial state bailouts after being caught in the maelstrom of the financial meltdown last year.

The restructuring measures were designed to make them viable banking operations.

For KBC, the only one of the three not to have announced the nature and scale of its restructuring plan, the commission said it “foresees structural and financial restructuring through the divestment, run-down and listing of various businesses.”

The bank “will divest or run down a significant number of businesses, including in Central and Eastern Europe… Furthermore, it will divest a banking business (Centea) and an insurance business (Fidea) in Belgium,” the EU competition watchdog announced.

Lloyds has announced that it will offload branches in Scotland, its Cheltenham and Gloucester branches, and the Intelligent Finance online unit.

While backing the plans, the EU commission noted that Lloyds would pay “a significant proportion of the restructuring costs, ensure a sustainable future for Lloyds without continued state support” without undue distortions of competition.

Dutch bank ING announced last month that it planned to sell off its insurance operations and raise 7.5 billion euros — five billion of which would go to paying back its government emergency funding.

EU Competition Commissioner Neelie Kroes said ING’s restructuring plan was “adequate to restore ING’s viability… and distortions of competition caused by the aid measures are sufficiently addressed.”

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XL Insurance, the global insurance operations of XL Capital Ltd, today announced the strengthening of its equine capabilities with the acquisition of an underwriting and claims team from London-based Unicorn Underwriting Limited (“Unicorn”), a subsidiary of THB Group plc.

The team of five is headed by Guy Morrison who has over 20 years of underwriting experience in the international equine insurance market. In his new role as Chief Underwriting Officer of Equine, Guy Morrison will head XL Insurance’s global equine operations with underwriting centres in London, UK and Kentucky, USA.

XL Insurance has also agreed to service the book of bloodstock business formerly underwritten by Unicorn.

Neil Robertson, Chief Underwriting Officer for Global Specialty at XL Insurance commented: “The appointment of Guy Morrison and his team further strengthens our capabilities and commitment to bloodstock insurance. The team has a wealth of global equine underwriting and claims handling expertise, particularly in the London market.

“We are especially pleased to have worked closely with Unicorn in ensuring a continued quality service for its existing brokers and customers.”

James Truscott, Managing Director of Unicorn, commented: “It is extremely satisfying when a deal comes together in which all parties win. XL Insurance recognised the value of our market-leading bloodstock team which originally formed the nucleus of Unicorn.  Unicorn’s strategy has subsequently evolved and we recognised that the skills and ambitions of the bloodstock team would be better served within XL Insurance’s infrastructure. I would like to thank the bloodstock team for their excellent work within Unicorn and wish them and XL Insurance all the best in their future ventures.”

XL Insurance’s global equine operations offer a broad spectrum of bloodstock coverage including mortality, theft, specialized perils, barrenness/prospective foal, stallion availability, infertility and loss of income.

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The ABI and AMPS, the Association of Member Directed Pension Schemes, have launched new Good Practice Guidance for Self Invested Personal Pension (SIPP) providers.

The guidance gives providers examples of best practice in writing customer and adviser literature, to ensure that the types of SIPP, their features and, importantly, their charging structures are described clearly and accurately.

Maggie Craig, the ABI’s Acting Director General, said: “With SIPPs becoming an increasingly important part of the pensions landscape, it is vital that advisers and consumers fully understand what these contracts do, who they are appropriate for and how much they cost.

“The guidance gives model definitions of the most important terminology used within SIPPs. It also states that providers should clearly set out all the charges associated with SIPPs, in a simple menu format. The language used throughout customer literature should be clear and simple, and be in plain English.

“This guidance will help to ensure that the product is understood better by customers and advisers and that it is targeted at those for whom it is an appropriate long-term savings vehicle.”

Martin Cadman, AMPS Committee member, said: “This guidance has been agreed following extensive consultation with AMPS, the ABI and other interested parties. AMPS, the ABI and all our members are dedicated to improving the clarity of customer literature and the overall transparency of SIPPs. We want to ensure that consumers and advisers understand what SIPPs do, who they are appropriate for and how much they cost. We believe that this guidance goes a long way towards achieving this and we will be working with our members to implement it in full.”

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Latest research conducted by Towergate Risk Solutions has revealed Allianz and NIG as the top performing insurers servicing its broking operations.

The research conducted among Towergate’s 100 plus broking offices on a quarterly basis consists of a set of questions which mark insurer performance when dealing with: quotations; renewals; policy documentation; mid term adjustments; claims and general service.

The key findings of the Q3 2009 research revealed that:

  • Allianz – Scored consistently high across all key areas. The insurer received particularly high scores on competitiveness/knowledge of underwriters/accuracy of documents/ and speed of claims settlement
  • Aviva – Showed an improvement in competiveness of quotations
  • Axa – Performance across key areas had remained mainly static
  • NIG – Overall second best performing partner in the survey behind Allianz
  • RSA – Showed an improvement in its overall performance from the previous survey

Amanda Blanc, CEO of Towergate Risk Solutions said, “Towergate brokers deliver the highest possible service levels to their customers so we expect insurers to do the same. This research reveals that although we are seeing some signs of progress, insurers could still do more in providing a better service to our brokers.”

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Samsung Life, South Korea’s largest life insurer, said it was aiming to go public in the first half of next year and planning to pick lead managers in December.

The company would be joining a series of planned insurance offerings in Asia estimated to represent as much as $20 billion over the next three years.

The Asian insurance IPO candidate list includes AIG’s AIA, Shanghai-traded China Pacific Insurance, which aims to raise $3.5 billion in Hong Kong, Reliance Life in India and Japan’s Dai-ichi Mutual Life Insurance.

“If the process goes through smoothly, an IPO could be possible within 6 or 7 months,” said Cho Tae-hyun, a spokesman for Samsung Life. He added that no decisions had yet been made regarding the size of the offering.

Tong Yang Life Insurance became South Korea’s first listed life insurer in September. It priced its IPO at 17,000 won, the bottom of its indicated range, and was trading at 14,700 won as of midday Monday.

South Korea’s 73 trillion won ($63.29 billion) life insurance landscape by premium income is divided between three market leaders – Samsung Life, Korea Life and Kyobo Life – and 19 smaller companies such as Tong Yang, Kumho and Mirae Asset.

Korea Life Insurance Co, the country’s No. 2 life insurer, is expected to raise around $2 billion in 2010, in what would so far be Korea’s largest IPO since 2006. It has mandated six banks, including Credit Suisse, JPMorgan and Deutsche Bank, to arrange the IPO.

In 2005, U.S. buyout firm Kohlberg Kravis Roberts & Co. (KKR) was reported to be eyeing a stake in Samsung Life, but no deal was signed.

With Reuters

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Fortis Holding, the insurance company comprising the remains of the former Benelux financial-services giant, said Tuesday that net profit for the third quarter was €196 million ($293.5 million), helped by stable insurance inflows that allowed the company to confirm its full-year outlook.

The company, which now holds the rump of the Belgian insurance business as well as international insurance activities and an investment portfolio, said net profit in its insurance activities was €143 million for the quarter, up from an estimated €12 million a year earlier.

Highlights :

  • Year-to-date total gross inflow, including non-consolidated joint ventures at 100%, of EUR 11.4 billion, in line with last year ; third quarter gross inflow of EUR 3.5 billion, up 1% year-on-year. Year-to-date total gross inflow of nonconsolidated joint ventures of 100% at EUR 2.8 billion, third quarter gross inflow of EUR 0.9 billion.

o Year-to-date Life gross inflow of EUR 9.1 billion (+1%); Third quarter gross inflow EUR 2.8 billion (+2%);

o Year-to-date Non-Life gross written premiums of EUR 2.3 billion (-1%); Third quarter gross written premiums of EUR 0.7 billion (-3%);

  • Year-to-date net profit Insurance after minorities of EUR 371 million (AG Insurance EUR 301 million and Fortis Insurance International EUR 70 million); Third quarter net profit Insurance after minorities of EUR 143 million;
  • Year-to-date net profit General of EUR 711 million; Third quarter net profit of EUR 53 million, including a EUR 83 million positive impact on revaluation call option on BNP Paribas shares;
  • Capital position remained strong; Total insurance solvency ratio at 232%.

CEO Bart De Smet said: “Our insurance operations continued to perform well in the third quarter and remain solid and stable. We continue to expect inflows for the full year to be at least in line with last year. On 25 September we published the conclusions of our strategic review. We have announced new partnerships in the UK and Italy, we demonstrated the creation of value in Thailand and decided to sell or discontinue subscale operations such as Luxemburg Non-Life and Russia. Each of these developments illustrates our firm commitment to execution and the proactive development of our insurance portfolio going forward. We will continue to manage the company in such a way that Fortis is and remains a solid and prudently managed international insurer”.

Total gross inflow first nine months stable at EUR 11.4 billion
Insurance net profit year-to-date of EUR 371 million
Group net profit of EUR 1,082 million

Highlights
 Year-to-date total gross inflow, including non-consolidated joint ventures at 100%, of EUR 11.4 billion, in line with last
year ; third quarter gross inflow of EUR 3.5 billion, up 1% year-on-year. Year-to-date total gross inflow of nonconsolidated
joint ventures of 100% at EUR 2.8 billion, third quarter gross inflow of EUR 0.9 billion.
o Year-to-date Life gross inflow of EUR 9.1 billion (+1%); Third quarter gross inflow EUR 2.8 billion (+2%);
o Year-to-date Non-Life gross written premiums of EUR 2.3 billion (-1%); Third quarter gross written premiums of
EUR 0.7 billion (-3%);
 Year-to-date net profit Insurance after minorities of EUR 371 million (AG Insurance EUR 301 million and Fortis
Insurance International EUR 70 million); Third quarter net profit Insurance after minorities of EUR 143 million;
 Year-to-date net profit General of EUR 711 million; Third quarter net profit of EUR 53 million, including a EUR 83 million
positive impact on revaluation call option on BNP Paribas shares;
 Capital position remained strong; Total insurance solvency ratio at 232%.
CEO Bart De Smet said: “Our insurance operations continued to perform well in the third quarter and remain solid and
stable. We continue to expect inflows for the full year to be at least in line with last year.
On 25 September we published the conclusions of our strategic review. We have announced new partnerships in the UK
and Italy, we demonstrated the creation of value in Thailand and decided to sell or discontinue subscale operations such as
Luxemburg Non-Life and Russia. Each of these developments illustrates our firm commitment to execution and the proactive
development of our insurance portfolio going forward. We will continue to manage the company in such a way that Fortis is
and remains a solid and prudently managed international insurer”.

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Liberty International Underwriters Europe (LIU Europe), a division of Liberty Mutual Group, has appointed John Holmes to the position of Senior Regional Underwriter – Professional Indemnity (PI) to further boost its PI presence in the north of England and Scotland.

Based in Manchester, John Holmes will be responsible for providing technical support to brokers as well as developing Professional Indemnity business in the region.

He joins LIU Europe having held senior underwriting roles with other insurers, most recently as a Regional Underwriting Manager responsible for establishing a Manchester regional underwriting team.

Commenting on Holmes’ appointment, Paul Kurgo, Head of LIU Europe’s UK and Ireland Commercial Unit, said: “Our strategy is to continue to develop our regional operations by offering a greater range and depth of product.  John is an excellent addition to the Manchester team and I am sure his experience and expertise will prove to be valuable to both our brokers and insureds.”

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Commercial broker Moorhouse has been revealed as the fastest-growing broker in Wales, according to an annual survey by the University of Wales: the 2009 Fast Growth 50.

Moorhouse appeared for a fourth year in the survey of 200,000 Welsh firms and was the only insurance broker to be listed among the top 50 fastest growing firms. Moorhouse grew by around 125% between 2006 and 2008 and is the largest independent insurance broker in Wales by a margin of over 30%.

The Wales FG 50 is the brainchild of Professor Dylan Jones-Evans, who is director of Research and Innovation at the University of Wales. Now in its eleventh year, the FG 50 serves as a reminder of the entrepreneurial potential that exists within the Welsh business sector.

Chairman Lyndon Wood said: “The FG 50 is a key barometer of entrepreneurial success in the region and I am honored that Moorhouse has again been counted among Wales’ finest. It is also worth pointing out that competition was extremely tough this year as, despite the downturn, the overall turnover for this year’s top fifty firms is double what it was last year.

“While it is always great to gain accolades and recognition, Moorhouse is not content to rest on its laurels and has set itself some tough targets to further its evolution and growth into the future.”

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    With the cost of car insurance becoming more and more of an issue for the average American family, there are increasing numbers of people looking for cheap car insurance. But although it is possible to find cheap car insurance, the question remains, is it worth buying?

    Everyone knows that car insurance companies are not all equal. Cheap car insurance is wonderful when paying the bill, but make a mistake on the company you select and you could find that the cheap car insurance policy that you found may turn into a nightmare. Cheap car insurance may not turn out to be so attractive when making a claim.

    So if you have found a discount car insurance broker don’t just take the cheapest quote that you get. You need to find out a little about the insurance company that is offering the cheap car insurance rates.

    And there’s ways to reduce the cost of your car insurance even with the best of companies. Here are some tips for those looking for cheap car insurance to help reduce the cost of car insurance without compromising other things.

    7 Cheap Car Insurance Tips :

    1. Look at your deductible amount. This is the amount that you pay first out of any claim. The cost of your policy is directly related to this amount. Many people, particularly those who have had their insurance policy for a long time, have never considered whether they ought to vary their deductible. If you have a good driving record and are prepared to increase the risk of paying a larger amount in the event of a (hopefully unlikely) claim you can save money by increasing your deductible.
    2. Have a look at the type of car you drive. Certain types of cars attract higher car insurance rates. Cars such as sports cars and also certain makes and models that are prime theft candidates cost more to insure. If you are buying a car then find out which makes and models these are before you buy.
    3. Drive carefully. Although it sounds a little trite to say it, your car insurance cost is a factor of your risk profile. You won’t get cheap car insurance if you have had 3 speeding fines and 2 accidents in the last year. These things are all taken into account and you should take care with how you drive. It all adds up onto your bill. There are big safe driver discounts available.
    4. Considering installing safety and anti theft devices in your car. Again these affect your risk profile. If you have a car that is safer and less at risk of theft it should be cheaper to insure. And if you have a car with certain safety devices now check that your insurance company is aware of these, if not tell them.
    5. Look at your policy when it comes to renewal time, don’t just pay. There are some things that you can vary in your policy that will affect the cost. Often there are some things there which duplicate other insurance that you may have that can be eliminated. Be critical, look carefully and ask questions about all these before you renew your policy.
    6. Have a look at who your other insurers are. Many insurers offer a discount for multiple policies. If you insure your house with a certain company then ring them up and find out if they do car insurance. Get a quote from them. Find out what discounts they offer.
    7. Find a good online discount car insurance broker before renewing. The internet is a fabulous resource. Use it. There are all sorts of discount insurance brokers online where you can get fast quotes from a wide range of companies. Don’t just settle for the same company you always use. Car insurance rates vary all the time. Always get comparable quotes before renewing any policy.

    So if you’re in the market for cheap car insurance there’s some ideas for you. Don’t just accept that car insurance is always prohibitively expensive, get out there and do something about it.

    Article Source: http://EzineArticles.com/?expert=Peter_Crump

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      Let us looked into these potential fees through a survey of UK car insurance companies

      NoClaimsDiscount.co.uk questioned several car insurance companies about this administration fee, and what exactly the policyholder was being charged for. Although six insurance companies were contacted, only one responded and that was Swiftcover.com. Craig Staniland, Underwriting Director for Swiftcover, stated: “Swiftcover.com does charge £25 to customers who cancel their policies during the first 14 days. There are two reasons for this nominal fee: to cover our administration costs and to also reduce the number of people who enter into a motor insurance contract and cancel at the first opportunity once they receive their Certificate of Insurance.”

      NoClaimsDiscount.co.uk pointed out in their research that most insurance companies do mention an administrative fee in policy documents. The RAC, Sheila’s Wheels, Sainsbury’s, Churchill, Esure, Co-op and Privilege all use the following terminology in their paperwork to advise of an impending charge: “Less an administration fee to take account of our costs in providing your policy. The fees are detailed in your Schedule.” However, frequently customers don’t find out about the fee until they are charged this sum. Additionally, most companies don’t indicate the amount of the administrative fee.

      As it turns out, car insurance companies assess a wide range of fees to customers who cancel their policies mid-term. Often the insurance companies label this charge an “administrative fee.” This fee can range anywhere from £25 to £55. Some companies will not tell customers the exact fee until the charge is processed. Though its research, NoClaimsDiscount.co.uk tried to confirm actual cancellation costs as examples e.g: Elephant.co.uk charges £47.50, MORE TH>N charges £55.00, Barclays Insurance charges £27.50, Swift Cover and the AA charge £25, LV charges £35.00 and Saga will only charge you if the administration cost incurred exceeds £5.00, although they don’t offer an upper ceiling limit.

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      Following a short, sharp slump in demand, insurance-linked securities are back in business. Apart from a temporary increase in price, the financial crisis has in no way altered the fundamental advantages of insurance-linked securities as an attractive complement to traditional reinsurance. Munich Re’s Risk Trading Unit gives to the clients access to the whole range of products and services that this securitisation segment has to offer.

      After insurance-linked securities (ILS) had successfully withstood the crisis on the securitisation market for some considerable time, they then felt the full force of the Lehman Brothers’ bankruptcy in the autumn of 2008. Insurance securitisation issues came to a complete standstill in the fourth quarter of 2008, suffering the same fate as most other financial markets. However, the demand for financial instruments that securitise nat cat risks from property insurance and transfer them to the capital market has since increased significantly, again attaining the average volume of past years. Securitisation transactions for nat cat bonds alone had reached almost US$ 2bn by the end of July. Given the backlog demand involved, this positive trend is expected to continue and a prediction of an issue volume in the region of US$ 3bn for the whole of 2009.

      The Current ILS Market

      The record figures from 2007, when cat bonds totalling some US$ 7bn were placed, are unlikely to be repeated. However, there are strong arguments for transferring insurance risks to the capital market in the form of securitisation. Firstly, in times of hard markets when conventional reinsurance is expensive, capital-market products such as ILS become more attractive to sponsors. As issuers of cat bonds, (re)insurers are able to ease their equity capital or avoid risk concentration by transferring risks to the capital market. Finally, ILS are a welcome reinsurance instrument where no traditional capacity is available. This applies, for example, to pandemic covers in life or to business interruption in property and casualty.

      The financial crisis has actually enhanced demand for alternative risk transfer: as some suppliers of traditional reinsurance ran into difficulties, capacities for US peak risks disappeared and prompted primary insurers to consider alternative risk transfer in order to diversify their sources of reinsurance. The financial crisis showed investors that ILS offer an investment opportunity that is uncorrelated with conventional investment classes. The returns on diversified ILS portfolios were positive in 2008 in spite of the financial crisis, unlike the returns on almost all other investment classes.

      However, the Lehman insolvency did change the structure of ILS. As the most recent issues on the cat bond market show, investors are more acutely aware of the credit risk, i.e. the credit risk of the assets in the collateral backing a cat bond. A higher level of security is achieved, for example, by investing the paid-in capital in government bonds or in investments with a similar security. Nevertheless, the risk premium remains higher than before for the time being, so that there are only certain segments in which cat bonds can compete with the price of traditional reinsurance. Cat bonds are currently in especially high demand to cover the peak risk US wind. If traditional capacity is available in sufficient amounts and at favourable prices, the current high returns on the capital market make securitisation solutions more difficult. In this connection, Munich Re’s objective is to develop those investor segments that reward the diversification effect of ILS (also within the ILS investment class) with more favourable risk premiums (e.g. pension funds) in order to secure the prerequisites for the further development of the ILS market.

      ILS versus reinsurance

      Munich Re regards insurance-linked securities as an attractive and useful complement to traditional reinsurance. They are particularly suitable for reducing peak exposures, developing additional sources of capacity or for overcoming innovation gaps. However, ILS can never fully replace traditional reinsurance because only certain risks that can be clearly quantified and modelled are suitable for transfer to the capital market. More complex risks whose evaluation requires not only quantitative expertise but also a high level of market and underwriting experience remain firmly a matter for reinsurers.
      Munich Re services the whole value chain

      Munich RE’s objective is to expand and develop the market for cat bonds as an additional source of capacity. Direct contact to a broad investor basis is every bit as important as their know-how in order to successfully conclude placements. For Munich RE’s clients, cat bonds usually constitute just one element of a comprehensive reinsurance concept, so that a good market overview, a wide range of products and speedy implementation are at the forefront of their services.

      As a full-range provider, Munich RE are active in the ILS segment on a variety of levels: they transfer their own risks to the capital market, act as an investor on the cat bond market and, through a Risk Trading Unit, offer to the clients a wide range of ILS services – from product development to structuring and placement. The combination of the risk capacity and the understanding as a risk carrier enables Munich RE to develop individual ILS solutions which optimally link alternative risk transfers with traditional reinsurance products. As part of the latest cat bond transaction “IANUS Capital Ltd.”, Munich RE have added their own risk to a client’s risk to be transferred and thus improved the economic viability of the concept and increased the attractiveness of the transaction for the client.

      Outlook – ILS under Solvency II

      ILS have become firmly established with investors as an alternative investment class and with insurers as an instrument of risk transfer. Under the new framework conditions of Solvency II, ILS will continue to gain in importance for insurers as the impact of risk transfer on the balance sheet will no longer be based on the form of the instrument but on its economic effect (“substance over form” principle).

      Other advantages of ILS under Solvency II result from the explicit consideration of the counterparty risk when measuring the amount of solvency capital to be held. As the transactions are usually fully secured (AAA security), the ceding insurer has lower capital requirements in this respect compared with a traditional reinsurance solution.

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      As you get older, you might develop health problems that could make it difficult to cope with everyday tasks. So you may need help to stay in your own home or you may have to move into a care home.

      The State may provide some help towards the costs of this care, depending on your circumstances, so always check with your local council about any support it offers.

      There are two types of LTCI:

      • immediate-care LTCI – you can buy this when you actually need care
      • pre-funded LTCI – you can buy this in advance, in case you need care in the future. You can buy immediate-care LTCI when you have been medically assessed as needing care, regardless of age.

      You buy it with a lump sum, and it pays out a regular income for your care for the rest of your life. You’ll be assessed medically to see how much you must pay for your chosen level of income.

      Check

      When you die, the income usually stops. Capital is only repaid if you’ve chosen a plan that provides some death benefit (a lump sum paid to your estate). You can buy pre-funded LTCI in advance, in case you need care in the future.

      You can buy it at any age, but some policies have a minimum age of 40 or 50 for receiving the plan benefits.

      You take out an insurance policy that will pay out a regular sum if you need care. It pays out if you are no longer able to perform certain activities of daily living (such as washing, dressing or feeding yourself) without help, or if you become mentally incapacitated.

      You might never need long-term care and, if you don’t claim, you may not get any money back.

      Some existing policies may be linked to an investment bond, which is intended to fund the premiums for the insurance policy. If you are thinking about this kind of policy, you may want to get professional advice first.

      What happens when you die will depend on the type of policy, the options selected and whether you are taking benefits from the plan at the time.

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      The ABI today launches a national campaign to help the UK’s most vulnerable families in rented accommodation cope with a financial shock, such as a burglary or a flood.

      A third – just over 1.5 million – of the 4.8 million people in social housing do not have contents insurance, despite the fact that:

      • People in social housing are twice as likely to be burgled as those who own their home.
      • Arson attacks are 30 times higher in lower income communities.
      • Low-income families are eight times more likely to be living in areas at higher risk of flooding.

      Now, the ABI is urging more local authorities and housing associations to offer tenants’ contents insurance schemes. These provide low-cost insurance protection – sometimes for less than a pound a week – against losses from risks such as burglary, fire, flooding and accidental damage. To spread the cost, premiums are usually paid at the same time as rent.

      The ABI today publishes its guide for local authorities and housing associations on the value to both them and their tenants of providing this insurance.

      Launching the guide, Nick Starling, the ABI’s Director of General Insurance and Health, said: “Many social landlords are missing a trick by not providing tenants insurance. As well as protecting the most vulnerable, those covered are less likely to fall into rent arrears as they will be financially protected should disaster strike. The ABI is committed to improving the take up of contents insurance among those in rented accommodation, and we will work with the Government and social landlords to ensure that the most vulnerable people in society are financially protected against the unexpected.”

      Click here to see the ABI guide for housing officers

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      Marsh, the world’s leading insurance broker and risk advisor, has been named ‘Broker of the Year’ at the 13th Annual Asia Insurance Industry Awards. This is the third year in a row and the fourth time in five years Marsh has taken home this accolade.

      The awards were the result of an extensive review process by a panel of 24 international judges comprised of leading insurance industry professionals. The award was judged according to the following criteria:

      In-depth knowledge and understanding of the market through research :

      • Responsiveness to customer needs
      • Innovation
      • Industry leadership
      • Business retention and growth
      • Sound financial management
      • Outstanding customer service resulting in business referrals
      • Professional standards

      Alan Cheah, CEO of Marsh in Asia, said: “We are honoured and humbled with this accolade, which is a testament to Marsh’s role in the development of the insurance industry across the region. Asia is unique, with markets ranging from extremely mature to truly emerging. It’s clear that Marsh’s approach of local knowledge backed by global expertise is the winning formula to help our clients succeed. I would like to personally thank our 1,400-plus colleagues across the region, who work tirelessly to help clients manage risk in this constantly changing environment.”

      Alex Moczarski, President of International for Marsh, said: “This award is yet another acknowledgment of Marsh’s outstanding capabilities around the world and recognition of the value we bring to our clients. I am particularly pleased that Asia, a significant growth engine for Marsh, has been honoured as we continue to build awareness around risk management and help clients turn risk into opportunity.”

      The awards are organised by the Asia Insurance Review and The Review, both leading industry publications, covering the insurance, reinsurance, broking and risk management industries across the region.

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      AXA Asia-Pacific Holdings Ltd. has made four newly created positions at its AXA Asia Life unit, focused on bancassurance, insurancebrokerage and its agency sales force.

      AXA Asia-Pacific is 53.9% owned by French insurer AXA

      Roderick Shay, who was recently a regional general manager of bancassurance for Allianz SE in Asia, Middle East and North Africa, was named regional director for bancassurance.Bancassurance is the sale of insurance products through a bank.

      Philip Hayman joined as regional director of proprietary distribution from American International Group Inc., where he held a similar role. He will oversee the group’s agency sales in 14 countries in the Middle East, North Africa and South Asia.

      Also joining from AIG is Ryan Quinn. He was appointed as regional director of broker and held the role of regional head of independent financial advisor, brokerage and high net worth clients for AIG in Asia.

      Laura Wang was hired as regional director of customer management and direct marketing. She was most recently with American International Assurance Co.’s direct marketing division.

      The four new hires report to Keith Perkins, the regional chief operating officer of AXA Asia Life.

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      Allianz unveiled forecast-beating quarterly earnings on the back of strong performances in life insurance and asset management, boosting its shares by more than 5.5 percent.

      Europe’s biggest insurer said it was well positioned to take advantage of improvements in the economy after posting a 23 percent rise in operating profit in the third quarter.

      However, it shied away from giving a forecast for 2009 — even though the year’s end is just weeks away — or for 2010, citing financial market volatility and the risk of big damage claims from winter storms as reasons for prudence.

      This circumspection contrasted with French rival AXA, Europe’s second-biggest insurer, which late last month said the outlook for its business had improved, in spite of slightly weaker than expected quarterly sales.

      Allianz said economic weakness was still hitting demand in the broader insurance market, a trend underscored by a drop in operating profit of nearly a fifth in its main business of property and casualty insurance.

      “Property-casualty as well as life insurance face markedly weaker demand due to the economic downturn with rising business insolvencies and rising unemployment,” its quarterly report said.

      “Prices are moving upward only slowly — if at all — and only in specific areas of business,” it added.

      Analysts said Allianz had delivered a solid set of figures and hailed the insurer’s ability to pad its capital cushion in the third quarter. “Allianz is currently one of the best capitalised insurers with a significantly reduced risk profile,” WestLB analyst Andreas Schaefer wrote in a note to clients.

      “In terms of earnings development, we believe, non-life should have seen the worst in the second quarter 2009 while we regard the life and health results in the second and third quarter as unsustainably good,” Schaefer added.

      Allianz had no plans for acquisitions

      Chief Financial Officer Oliver Baete said Allianz had no plans for either acquisitions or a capital hike, adding that it planned to stick to its policy of paying out 40 percent of net profit in dividends.

      It also planned to keep its stake of more than 10 percent in Germany’s second-biggest lender, Commerzbank, Baete said.

      Operating profit in Allianz’s life and health insurance segment nearly quadrupled in the third quarter, while that in financial services doubled, but the insurer remained cautious on the outlook for property and casualty insurance.

      “While pricing is on an upward trend, our volumes remain challenged due to weaker demand, the effects of our portfolio cleaning measures and selective underwriting,” Allianz said of the segment, which normally accounts for 60 percent of group operating profit but in the third quarter contributed little more than half.

      Allianz reported quarterly operating profit of 1.929 billion euros ($2.9 billion), above the average forecast of 1.804 billion in a Reuters poll of 18 analysts.

      It also swung to a quarterly net profit of 1.3 billion euros, above the 1.2 billion expected in the poll, from a 2 billion euro loss in the third quarter of 2008, when it sold its unprofitable Dresdner Bank unit to Commerzbank.

      For further details on Allianz’s 3rd quarterly result click here

      With Reuters

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        About 2,000 insurance agents for a local unit of American International Group protested Wednesday against a proposal to sell the company’s Taiwan unit to a new Hong Kong financial group.

        The demonstrators, many waving placards or wearing yellow headbands, gathered outside the headquarters of Nan Shan, Taiwan’s number two life insurer, to express fears about their pensions under the new ownership.

        The protest came after AIG said last month it would sell Nan Shan to Hong Kong-based Primus Financial Holdings for 2.15 billion dollars as the struggling American giant raised money to pay off a huge US government bail-out.

        Management and employees at Nan Shan have been involved in a lengthy pension row, with staff complaining they did not receive their dues, and Wednesday’s protesters demanded the issue be settled before the company was sold off.

        “AIG shouldn’t sell Nan Shan to Primus at a time when there are still disputes between management and employees,” protester Tsai Wen-hsing told AFP.

        The group also voiced suspicions that Primus Financial lacked experience in the insurance business, and was merely looking for a quick profit.

        The allegations have been rejected by Primus, which has promised not to change Nan Shan’s brand or existing compensation and benefits packages, according to an AIG statement.

        The sale to the consortium still requires approval from Taiwan’s financial regulator.

        With AFP TAIPEI, Nov 11, 2009

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        French insurance giant AXA said Monday it would raise capital of two billion euros (3.0 billion dollars) to finance takeovers, particularly its Australian branch AXA Asia Pacific Holdings.

        “We want to go on the offensive,” Henri de Castries, chairman of AXA’s management board, told reporters, adding that it was “the right moment” to act because of a stabilisation in the macroeconomic climate.

        “AXA has resisted the financial crisis well,” de Castries said. “In the coming quarters, we think there will be a certain number of opportunities, especially in emerging markets,” he added.

        The new shares, with preferential rights for existing shareholders, would be offered at 11.90 euros each, a discount of 29.5 percent to the closing price on Friday, from November 10 to 23.

        AXA said the money would be used to seize opportunities for takeovers, mainly on markets with strong growth potential.

        AXA said part of the strategy involved negotiations with the London-based European Bank for Reconstruction and Development (EBRD) to buy up minority stakes in some of its own subsidiaries in central and eastern Europe.

        The EBRD holds an average stake of 30 percent in such subsidiaries, according to de Castries.

        Shares in AXA ended up 0.41 percent at 16.95 euros on the Paris stock market, where the CAC 40 index showed an overall gain of 2.11 percent.

        On Sunday, AXA made an offer to buy the 45-percent stake of shares it does not already own in Axa Asia Pacific Holdings. It made the bid in partnership with Australian insurance and wealth management group AMP. The headline value of the complex offer was 11 billion Australian dollars (6.8 billion euros, 10.1 billion dollars).

        On Monday, AXA APH rejected the offer on the grounds that it significantly undervalued the business. The rejection came from a council of independent administrators, which is a part of the main board on which AXA has a majority.

        A source close to the matter told AFP that “talks are continuing and AXA could make a higher offer.”

        With AFP, Paris, November 9, 2009