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Global risk and reinsurance specialist Guy Carpenter & Company, LLC, has announced that Henry Keeling has been appointed to serve as president and chief executive officer of International Operations.

He began his career in London and spent almost two decades as an underwriter and broker with Lloyd’s and the London market before moving on to Mid Ocean Re, and XL Capital.

Keeling, who assumes his new position as of 1 August, will chair the International Board and take on responsibility for its activities in United Kingdom, Continental Europe, Asia Pacific, Australia and Bermuda.

He will also acquire a seat on Guy Carpenter’s Executive Committee and be directly responsible to the firm’s president and chief executive officer, Peter Zaffino.

Zaffino has described Keeling’s appointment as a milestone for the firm, and praised his experience and reputation within the industry.

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Swiss insurance company Zurich Financial Services AG said Thursday its subsidiary Farmers Group, Inc. has completed the acquisition of 100% of American International Group Inc’s (AIG) US Personal Auto Group, which includes “21st Century Insurance” (comprising the former “AIG Direct” and “21st Century Insurance”), as well as AIG’s “Agency Auto”.

The transaction positions the Farmers Exchanges as the third largest traditional direct writer of insurance in the US and the third largest US personal lines insurer overall.

The purchase price amounts to approximately USD1.9 billion, of which USD1.7 billion (previously indicated at USD1.5 billion) was paid in cash and USD0.2 billion (previously indicated at USD0.4 billion) in Euro denominated Capital Notes.

The purchase price implies a Price to tangible Book multiple of 1 times.

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Britons are becoming increasingly disgruntled over their pension plans, with the number of complaints received by The Pensions Advisory Service (TPAS) increasing by 10% in 2008/2009.

In the 12 months to the end of March, 7,746 individuals contacted the body, compared to 7,026 in the previous 12 months.

According to TPAS, the biggest single driver was poor administration with increases in both delays and mistakes contributing “heavily”.

The majority of complaints involved individual pension plans, whilst occupational schemes appeared to improve their performance with a 2% drop.

TPAS Chief Executive, Malcolm McLean, suggest that the tough economic conditions of the past six months may well have exacerbated problems for pension holders.

He describes a ‘double-whammy’ effect, with many savers seeing the value of their plans fall because of the financial crisis and then experiencing delays in obtaining annuity quotes or awards that reduce their entitlement even further.

With regard to the delays, mergers and takeovers form part of the problem as snags occur in integrating systems.

However, consumers also reported long delays in getting a response to their complaint plus errors and mistakes that sometimes resulted in financial loss.

TPAS says it has been helpful in obtaining compensation where it could be shown that an individual had relied or acted upon incorrect information and lost money as a result.

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Marsh, the insurance broker and risk adviser, has launched a new project professional indemnity (PI) insurance facility for major construction projects.

Designed for projects with an estimated construction value in excess of £25 million, the facility can provide limits of liability of up to £20 million for periods of insurance of up to 10 years and is available globally, excluding projects located in the US.

Created by Marsh’s Financial and Professional Practice in London, the facility can cover all project participants with responsibility for professional services rendered in connection with the construction process. This includes contractors and consultants alike, whether working individually or in joint ventures or consortiums.

Marsh’s construction PI insurance facility provides:

  • Non-cancellable limits of liability that are dedicated to the project
  • Certainty of coverage for the project with periods of insurance of up to 10 years, with the possibility of further periods being available after completion of the construction process in order to comply with contractual obligations
  • Certainty of cost for the PI insurance
  • Indemnity to owners where claims by third parties are made due to professional errors or omissions committed by the construction parties
  • Wrap-up coverage for all construction parties engaged in the provision of professional services

The facility can also be used by project owners as an owner-controlled insurance programme (OCIP), whereby the owner arranges the project PI insurance on behalf of the contractors and subcontractors, thereby ensuring total transparency of cost.

Martin Stubbs, a Senior Vice President in Marsh’s Financial and Professional Practice, said: “Many project owners are now insisting that a construction project PI policy is in place, particularly for the larger, more prestigious projects, as they appreciate the benefits of certainty in these uncertain economic times.

“Marsh’s new construction PI facility provides the construction market with a consistent product, at a reasonable price, enabling project owners to manage and control their risks more effectively.”

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Risk engineering consultancy, Specialists in the Protection of Risks (SPR) has today launched a range of new services for brokers, insurers and reinsurers to help improve the understanding of complex exposures.

SPR, which was acquired by THB Group’s risk management division in late 2008, provides independent onsite survey and audit services across the world.  Today’s launch introduces a new desktop review service and  training programme designed to help brokers and underwriters alike understand the issues and risks associated with major industrial plant.

Commenting on the launch, Graham Fradgley, Managing Director of SPR said,

“Where underwriters and brokers require risk engineering expertise either as part of the broking presentation or as part of the underwriting and pricing decision we can be on hand to ensure full understanding of risks and exposures. We are aware that to send a consultant onsite is not always cost effective so we bring our expertise to bear by reviewing existing data and information.”

The desktop review service is also unique as it works on an hourly rate basis (as opposed to a day rate) so the client only pays for the time taken to review the risk.

SPR will also be holding a series of training courses for underwriters and brokers, starting in October 2009, aimed at providing delegates with an understanding of the major risks associated with complex industrial clients.

Fradgley added,

“We have worked on every continent and have expertise in a number of industries including:

  • Utilities
  • Nuclear production
  • Pulp and paper
  • Oil and petrochemicals
  • Mining
  • Telecoms
  • Hospitals
  • Electronics and semi-conductors
  • Construction
  • Transportation
  • Brewing
  • Food production

Our training courses, all based in London, will give delegates an awareness of critical exposures and the implications of poor risk management. These courses can also be industry specific if a more bespoke approach is required.”

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The Specialist broker THB Group today revealed a 20% increase in turnover and 29% growth in its THB UK operation as it published its interim results for the six months to 30 April 2009.

But Group CEO Frank Murphy also used the results to argue that he believed some carriers were holding back the hard market by under-pricing to maintain market share.

The increase in turnover was in part due to a strong performance by divisions within the Lloyd’s broker Thompson Heath & Bond Ltd including teams from the PWS International business acquired in January last year. THB UK, the group’s non-broking operation, also contributed to the uplift in turnover, driven particularly by progress in its risk management business.

However the effects of the soft market plus the impact of interest rate reductions on investment income held back the overall result.

Underlying profit before tax, after adjusting for amortisation of intangibles and exceptional costs, for the six months to 30 April 2009 was £2.4m (2008: £3.1m). Underlying fully diluted earnings per share were 5.16p (2008: 6.78p).

Earnings per share were down by 21% however shareholders will still receive a dividend payment in August.

Chief Executive Frank Murphy said:

“We are very pleased with the progress made by THB UK and the strong contribution from the PWS acquisition. However the slowdown in global economic activity plus the series of interest rate cuts by US and UK central banks in response to the economic crisis have had a material effect on operating profit in the period.

“We are not immune to the impact of the global recession and indeed the continued decline in insurance markets was forecast in our Annual Report. As such, we continue to focus on making the right decisions, including cost control, to ensure we remain in a strong position when rates harden. Undoubtedly THB has been held back by external factors in the short term but overall is in very good shape going forward.”

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    Many parts of the UK’s financial services sector expect business volumes to rise in the next quarter after 21 months of falls, while optimism about the overall business situation has risen for the first time in two years. But banking remains under pressure. That is according to the latest survey (Monday 29th June) from CBI (Confederation of British Industry) and PricewaterhouseCoopers Financial Services.

    Although the three months to June saw levels of business, income and profitability continue to fall, this was at a much slower pace than earlier this year. This suggests the industry may now be on a gradual path towards recovery, though differences between the sectors remain.

    Insurance companies are the most optimistic about growth in business over the coming quarter, while banks also expect volumes to rise. Building societies have experienced extremely tough business conditions since early 2008, but are now hopeful that volumes, income and profitability will stabilise in the next quarter. By contrast, securities traders and investment managers expect the recent improvement in their business to be short-lived, with volume declines expected to resume next quarter.

    Life insurance

    Every respondent reported business volumes and profitability to be down on the previous three months, the latter no doubt due to sharp falls in income values and spreads staying flat. However, optimism among life insurers was high, most likely due to expectations of growth in both business volumes and profitability over the coming quarter.

    General insurance

    Business volumes fell in the last three months, despite expectations of strong growth. This, along with a fall in income values, outweighed the advantage of falling costs, thus leading to a marginal decline in profitability. Nonetheless, optimism rose further, with business volumes set to increase over the next three months.

    Andrew Kail, UK insurance leader, PricewaterhouseCoopers LLP, said:
    “General insurers continue to feel positive about their outlook however business levels are down when compared to last quarter’s as planned rate increases are not being seen at the levels predicted. Previous plans to increase recruitment have been reversed, bringing the sector in line with other areas of financial services sector. Modest spending on regulatory compliance is a surprise, given the requirements of Solvency II. Despite cost reduction measures, some insurers now expect profitability to fall as the cost of claims will probably increase as the impact of the recession bites.”

    “Life insurers report the most positive results in sentiment for five years, after seven consecutive quarters of negative outlook. Business however, remains subdued for now. The industry is hoping for a recovery in fortunes following recent rises in the equity markets and some positive news on the housing market. Expense reduction and customer retention are still the order of the day and there is nothing in the survey results to suggest an upturn in business has yet materialised.”

    Insurance brokers

    Profitability grew in the current quarter, but at a much slower pace than in March’s survey – likely due to a comparatively stronger performance overall in the previous three months. The increase in profitability is expected to gather pace over the next quarter. Numbers employed fell at their slowest rate over their five quarters of decline so far, and a further easing in the pace of deterioration is expected in the next three months.

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    Lord Levene, Chairman of Lloyd’s, last night hosted the second annual Lloyd’s New York City Dinner, with over 160 representatives from the US and UK insurance and financial services industries in attendance.

    While last year New York and London were seen to be in strong competition for the title of the world’s financial capital, the dinner this year focused on how the two cities should work together to address the challenges of the current economic conditions.

    HRH the Duke of York, in his role as the UK’s Special Representative for International Trade and Investment, gave the keynote speech at the event, focusing on the strong bond that exists between New York and London.

    “London and New York remain the top two global financial centres, it is clear that we are both retaining these positions and showing resilience in the face of this financial storm.

    “There is no denying the scale of the challenges that we face. With the undoubted collaboration between the Finance Centres of London and New York and the engagement between the Financial Services Sector, regulators and legislators the future steps to develop and increase our nation’s prosperity through a sound Financial Services system will be achievable,” he said.

    Lord Levene, Chairman of Lloyd’s, used his welcoming speech to highlight that the insurance industry is in healthy shape, saying:

    “Over the course of the last year, the reputation of the financial services industry has taken a huge battering but I believe that all is not lost. There are a number of sectors that remain vibrant and relatively untarnished by the economic storm that has surrounded them. Insurance is of course one such sector.

    “As I am sure you are aware, Lloyd’s has had its own problems in, what is now happily, the distant past. We learnt our lessons and also stuck to what we are good at – focusing on providing specialist insurance and not being lured into the exotic products that have been the downfall of a number of our competitors. At Lloyd’s we went ‘back to basics’ and it is my belief that the financial services industry now needs to do the same.”

    Lord Levene also paid tribute to Captain Sullenberger III, the US Airways Flight 1549 pilot who saved 155 passengers and crew after crash landing his plane in to the Hudson River.

    Presenting him with the Lloyd’s Medal for Saving Life, Lord Levene said:

    “We at Lloyd’s wish to join the distinguished line of those who have recognised him for his exceptional judgement, calmness, bravery and selflessness in the face of such unexpected and terrifying circumstances.”

    In 1836, Lloyd’s established a medal to recognise acts of courage at sea. The medal’s title went through various iterations in order to recognise bravery in other spheres. In 1974 it became the Lloyd’s Medal for Saving Life. Gold, silver and bronze medals have always been struck.

    The first gold medal was awarded to Captain Edward Evans in 1921, and Captain Sullenberger III is only the second recipient of the gold medal in 173 years.

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    Leaving your handbag in the car may seem harmless, but not when you realise how many are stolen each year from unattended cars. More than 400,000 British women have had their handbags stolen from their car in the past 12 months, and the astonishing total value of those handbags is around £178 million.

    The research, conducted by women’s car insurance specialist Diamond, shows just how easy a target handbags are to thieves who are getting away with a small fortune with each bag they take. Diamond was so surprised by how many were stolen that it decided to find out how much it was costing women.

    Its research revealed the average cost of a woman’s handbag and its contents is £431.68, and that doesn’t include the cost of replacing car and house keys. It then compared this to the number of handbag thefts reported by its policyholders in the last year and to the number of women drivers in the UK to find just how big an issue this is.

    Diamond managing director, Sian Lewis, commented, “It’s shocking to see just how many handbags are stolen each year from cars, and that shows exactly why you should never leave your bag on display in your car.

    “In the run up to the festive season thieves will be on the look out for easy targets so however stressed out and rushed you are to find that perfect present, you should never leave anything on show in your unattended car that could attract a potential thief. Can you imagine losing your bank cards and mobile phone in the run up to Christmas when you need them the most?”

    Here are some top tips to help prevent handbag theft from a vehicle:

    1. Don’t leave anything visible in an unattended car, even if it is worthless, a thief doesn’t know that. When breaking in to look at these they may find something of value if you haven’t taken the necessary precautions.
    2. Never leave your handbag under a seat as a thief is likely to look there.
    3. Lock all windows and doors, not forgetting the sunroof, when leaving the car unattended.
    4. Lock your car when paying for petrol or popping into a shop, and never leave the keys in the ignition.

    If for whatever reason you can’t take your handbag with you when leaving your car, place it in the boot so that it’s out of site. However, make sure that you do this in a discreet manner in case anyone is watching.

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    A MASSIVE 40 per cent* of payment protection insurance claims over the past 12 months have been for accident and sickness, according to independent PPI provider Paymentcare.co.uk.


    • Skewed image overshadowing real value of PPI
    • Before credit crunch 60% of claims were for accident & sickness – not unemployment
    • Threat of job loss will pass but likelihood of accident & sickness remains constant
    • Thousands of consumers saved from financial difficulty by AS protection

    But borrowers who shun PPI because of the recent negative associations with failed claims for unemployment could be putting themselves squarely in risk’s way.

    “The statistics make it quite plain – PPI has protected the financial security of a huge number of borrowers who have lost their income through unpredictable accident or sickness,” said MD Shane Craig fro Paymentcare.co.uk.

    “Before the credit crunch the ratio of AS** claims compared to those for unemployment was 60:40 and when the economy stabilises and job security returns, I expect this pattern to return.

    “Borrowers will cease to be so threatened by job loss but the chances of becoming ill or having an accident will remain the same and if they’ve decided not to bother with protection they could find themselves in trouble.”

    PPI as a personal finance product has been widely criticised over the past year since the Competition Commission investigation into mis-selling exposed bad practice amongst mainstream providers.

    With this coming at the same time as the credit crunch and a huge wave of redundancies, the image of PPI has become seriously distorted.

    “This is a false impression that could put borrowers at risk,” said Craig. “The statistics speak for themselves. Protecting yourself against unemployment and redundancy is just one reason to sign up for PPI. Being unable to work because of accident or illness is something that no-one can predict and can be equally financially devastating.”

    The most recent figures for annual road accident casualties stands at nearly a quarter of a million*** and at the end of 2008, around two million people in the UK were diagnosed with cancer**** – a massive rise from the previous figure of 1.2m and clearly on an upward trend.

    “These figures represent real lives affected by unforeseen events. Those who were unable to work as a result are very likely to have found themselves in financial difficulty,” said Craig.

    “No matter what state the UK or global economy is in, people are always going to have accidents or become unwell ” and if they have loan or mortgage repayments to keep up but no income, they are going to be in trouble.

    “As an independent provider of PPI we have always provided monthly paid policies at realistically affordable prices. We always establish customers’ eligibility before accepting their application, our terms and conditions are easily accessible online for customers to read in full in their own time and unlike PPI bought from a lender along with a loan, there is no connection with the loan provider.”

    * Source: Adminicle, May 2009
    ** Accident & Sickness cover
    *** ONS figures for 2007
    **** Macmillan Cancer Support

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      The AA has provided direction signs for Glastonbury for 8 years It takes around 1,000 AA signs and nine months of planning to guide the 180,000 festival goers to this year’s Glastonbury.

      They have provided signage to the world’s biggest greenfield music and performing arts festival for the last eight years and the challenge of ensuring it goes smoothly falls to Nathan Kendell, AA Signs Manager for the South-west.

      Nathan explains: “It’s a massive logistical exercise and the biggest event we sign for – the equivalent of the population of Sunderland descending at once. “We start immediately after the festival with a debrief, then the planning starts in earnest about nine months before the next one.

      A month to erect

      “We sign the festival from quite far afield and in all directions and it takes 450 route signs and another 500 mandatory ones for things like road closures and one-ways. It takes around a month to erect them all but they come down a lot quicker than they go up!”

      The team

      The signage is not the extent of the their involvement. Three motorbikes will patrol the approach roads providing traffic information to the organisers and 20 volunteers from across the AA’s five offices will marshal traffic in the site’s 35 car parks.

      Last year, they attended around 200 stricken cars on the site itself and dozens more on routes in and out of the festival. This year, 16 patrols will be on hand supported by specialist Land Rovers and two dedicated key cutting technicians.

      AA patrol Steve Evans says: “It’s mostly flat batteries and lost keys but people lose their car too! The car parks are so big that people ask us to drive them round looking for it.

      “To help, we’re issuing all drivers with cards so they can write down the car park number and asking them to mark their keys with something unique to make it easier to identify them.

      “If the worst happens and your car breaks down, AA members and non-members can call our dedicated Glastonbury helpline for service: 0800 072 3642.”

      With ‘green’ issues highlighted at the festival, the AA is asking motorists heading to the festival to do their bit too with its ‘greener driver’ advice on the back of the cards.

      Routes and traffic

      Last year, thousands of drivers used the online AA Route Planner to get to Glastonbury with people travelling an average of 144 miles. The furthest route from within the UK was South Queensferry, near Edinburgh (435 miles) and the top five starting points were London (132 miles), Bristol (31 miles), Leeds (249 miles), Exeter (58 miles) and, somewhat surprisingly, Taunton, just 28 miles down the road.

      Festival goers should allow plenty of time to get to the festival, as there will be inevitable congestion, but they can help avoid the worst of it by using the AA’s traffic and travel advice line, AA Roadwatch. The number is 84322 or enter ‘the AA’ on your mobile phone keypad or call 0906 88 84322 from a landline1.

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      Aviva announces the appointment of Matt Saker as chief actuary for Europe.

      Matt will be responsible for capital management, life and general insurance reserving and market consistent embedded value reporting. He will report to the CFO for Europe, Tim Harris.

      Matt joins Aviva from Watson Wyatt where he worked for more than 18 years, becoming a partner in 2003. He has previously worked on a wide variety of European assignments, including financial reporting, capital management and M&A projects. He holds a first class degree in Mathematics, Operational Research and Statistics from Warwick University.

      Tim Harris, CFO of Aviva’s Europe region, said: “Aviva’s European businesses now account for 42% of group sales, and we’re one of the leading insurers in the region, providing life, general and health insurance to more than 20 million customers. I’m delighted to welcome Matt to Aviva – he brings with him a wealth of industry experience and his professional insights will be invaluable as we continue to drive growth and profitability in the region.”

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        Aviva plc (“Aviva”) announces that it is to sell Aviva Australia Holdings Ltd, its Australian life and pensions business and wealth management platform (“Aviva Australia”) to National Australia Bank (“NAB”).

        • Aviva to sell Australian life business and wealth management platform to National
        • Australia Bank
        • Total cash proceeds of A$925 million (£452 million)
        • Total cash proceeds represent 16 times 2008 net earnings
        • Provides increased financial flexibility and improves IGD surplus by £0.4 billion

        The expected proceeds of A$925 million (£452 million) comprise A$825 million cash consideration from NAB on completion, with a further amount of A$40 million
        representing a dividend to be paid by Aviva Australia prior to completion, and a forecast amount of A$60 million representing a net asset adjustment to be paid post completion.

        The sale supports Aviva’s strategy of focusing on the key growth markets in Asia where leading positions can be achieved. The decision to sell these businesses is based on the belief that it would be challenging to reach a leading position in Australia in the foreseeable future in an increasingly consolidated market. Aviva currently ranks ninth in the life market and its wealth management platform is ranked eighth.

        Andrew Moss, Aviva CEO, said: “This transaction realises excellent value for Aviva shareholders at around 16 times 2008 net earnings and demonstrates the underlying
        value of our business. It gives us greater financial flexibility and we can redeploy the capital to other markets which we believe will deliver better returns to our shareholders
        over the next few years.”

        Simon Machell, CEO Asia Pacific, Aviva, said: “I am delighted that National Australia Bank will acquire Aviva Australia. Looking ahead, we will focus on the significant long-term growth markets of Asia, in particular, China and India. Here we have quickly developed strong market positions and have become the second largest foreign life
        insurer in China in just six years.”

        Aviva Investors’ Australian operation was not part of the sale process. As a global asset management business Aviva Investors remains committed to the Australian market where it is focused on building its external funds under management, benefiting from the growth of the pensions market.

        The sale is subject to regulatory approval and is expected to close in the third quarter of 2009.

        The proceeds will be retained by the group and are expected to enhance the group’s IGD surplus by approximately £0.4 billion, compared to 31 March 2009. In 2008, Aviva Australia contributed 2.6% to group IFRS operating profit and 2.3% to embedded value on an MCEV basis. Aviva Australia generated an IFRS net profit after tax of £28 million, and contributed £335 million to group IFRS net assets and £2.3 billion to group IFRS total assets for the year ending 31 December 2008.

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        Research published by the ABI (Association of British Insurers) on the day of its biennial conference reveals that almost a quarter of people admit to cancelling or not renewing their contents insurance to save money. Other insurances are also being ditched, despite the fear of being unable to cope with the unexpected being the biggest single concern for families in the recession.

        These are the disturbing findings from a national survey of over 2,000 adults conducted by YouGov, on behalf of the ABI.

        The survey highlights that:

        • Nearly a quarter of people (22%) say that to save money in the last year they have cancelled or not renewed their home contents insurance. 17% say that they have cancelled or not renewed their buildings cover. In Scotland, the figures rise to 28% for contents and 21% for buildings.
        • 13% have cancelled their life insurance.
        • One in five (21%) say that they are seriously considering reducing or stopping saving.
        • This lack of cover is leaving many families even more exposed to their biggest fear in the recession: nearly half (49%) of those surveyed said that they currently worry about their in ability to cope with a sudden event, such as a burglary.

        Stephen Haddrill, the ABI’s Director General, said:

        “Cutting back on insurance protection is a false economy. In these uncertain times, insurance provides a vital financial safety net to steer individuals, and families through the recession, as well as helping to provide long-term security.

        “The insurance market remains very competitive, so shopping around can help you get a good deal, while ensuring that you are not at the mercy of the unexpected. Ditching insurance or reducing your cover must only be a last resort.”

        Other findings show that:

        • When asked about the importance of saving: 45% said that they wanted to save more, but could not currently afford to do so. 15% think that the single most important step the Government can take to promote economic recovery is to introduce incentives to encourage saving. Those in Scotland see saving as more important than a year ago: 16%, compared to 10% in England and Wales.
        • There is a difference in outlook between men and women. Over half (53%) of women worry about how they would cope with an unexpected event (compared to 43% of men). And 44% of women are worried about the adequacy of their pension (38% men), reflecting lower pensions among women.
        • Asked what cutbacks people have or would be making: over two thirds (68%) said that family treats, such as eating out, were top of their list, followed by holidays (56%). Six out of ten women are prepared to reduce spending on clothes and shoes.

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        This is the new shorten advert : Compare The Meerkat (comparethemeerkat.com) which advertises the price-comparison website.

        [media id=3 width=320 height=300]

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        A lads tour to Bangkok goes a weee bit wrong when one of them meets a ‘gender blender’… but he’s saved by his travel insurance

        [media id=6 width=320 height=300]

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        The lack of basic vehicle maintenance and knowledge among fleet drivers is causing unnecessary breakdowns, increased repair costs and substantial downtime, says RAC.

        According to RAC’s 2008 Vehicle Fault Analysis (VFA) data, fleet drivers are causing at least 13,715 days1 downtime. This equates to nearly 115,000 fleet breakdowns that could be avoided if fleet drivers conducted basic maintenance checks of their vehicles and undertook driver training.

        Frank Flynn, technical information manager for RAC, says: “Our research shows that fleet drivers are causing downtime. And with the cost of replacement or hire cars, missed appointments, lost business contracts and warranty disputes over vehicle repairs, the impact on businesses can be significant.”

        The findings show that a puncture and the need to change the wheel is the most frequent reason for a call out.

        By adding together all of the call outs for punctures and calculating the resultant downtime, we can see that 2,140 days were lost in 2008 for this reason alone. Basic training on how to look after the vehicle and change a wheel could help reduce the downtime caused. Of course we understand this isn’t always realistic or practical for all fleet drivers but we believe fleets in general could benefit by training drivers on how to change a wheel.

        Where the driver has had a puncture but does not have a usable spare wheel, this could be due to the fact that the driver has not had it repaired following a previous incident, or that they are simply not carrying one. The latter has become quite common with more manufacturers producing vehicles without a spare wheel.

        Where the fault specified states that tyres were the problem, a high proportion of these call outs were for shredded tyres due to excessive wear or when the driver has discovered lumps appearing. Although we haven’t included this in the overall downtime figure, this is largely down to a lack of maintenance.

        Battery problems rank as the second highest reason for a call outs with just over 50,700 occurring last year, equating to 2,113 days downtime.

        Flynn continues: “A flat battery can be the result of a number of things but largely we find that drivers continue to leave lights on accidentally, whether internal or external, or that other technology or gadgets have been left plugged in to the vehicle and drained the battery. Again, driver training would highlight the impact of charging mobile phones and other gadgets used by many fleet drivers on the battery.”

        Ranking seventh on the top 20 fault list is diesel contamination.

        “Although the number of individual call outs for diesel contamination is significantly less than for batteries or punctures, the downtime per instance can be much greater. Taking travel and wait times into consideration, it can take up to a day to drain a fuel tank. This resulted in a staggering 9,349 days downtime in 2008 that could easily have been avoided with a higher level of driver awareness.

        The final avoidable reason for call outs in the top 20 list is due to drivers locking themselves out of their cars, with 2,717 instances last year.

        A large number of last year’s call outs were due to road traffic accidents, at 18,179.

        Although it is near impossible to conclude whether an accident could have been avoided, some typical causes of accidents include driver fatigue, often through not taking breaks or a lack of journey planning, or a car not being suitable for an employee – all of which could be put down to a lack of an effective driver training strategy.

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          Just as supermarkets are tempting customers with ‘buy-one-get-one-free’ deals, car insurance companies are also trying to woo motorists with special offers such as multi-car policies and 52 days’ free insurance

          But research by online car insurer shows that many offers are not as special as they claim to be, with drivers still paying too much for their insurance.

          For example :

          • Admiral’s multi-car cover policy is £283.47 more expensive than swiftcover.com when insuring a Ford Fiesta and a Ford Mondeo – two policies with swiftcover.com would cost a total of £392.01 compared to £675.48 for Admiral’s multi-car cover1.
          • Direct Line’s 52 days free insurance special offer is still £110.05 more costly than swiftcover.com when insuring a Ford Mondeo – insurance with swiftcover.com would cost £185 compared to £295.05 with Direct Line2.

          Low-cost insurance sales have grown significantly since the start of the year as motorists search for cheaper insurance. But the insurer says that although it is good that more people are now shopping-around for quotes, they should be careful not to get sucked into deals that actually don’t save them money.

          Competition in the motor insurance market is fierce at the moment, with many companies offering so-called ‘special offers’ to entice customers. However, these deals can confuse motorists as to the true costs – and potential savings – of their insurance. Getting the lowest possible insurance quote is one thing, but there is a lot more drivers can do to keep their insurance costs down.

          Here is some tips for cutting your insurance costs and identify where else they can save money :

          1. Always compare insurance quotes – Even if you use a comparison website, you should get a couple of quotes from other insurers to compare against. And don’t just accept the renewal price from your existing insurer, it’s unlikely to be the cheapest
          2. Beware of expensive ‘special offers’ – 52 days’ free insurance might sound like a good deal, but if the insurer charges you much more in the first place, it might not be a saving. Always shop around, no matter how good the special deal seems1
          3. Multicar policies are not necessarily cheaper – multi-buy offers might save you money in the supermarket, but it’s not always the case with motor insurance. swiftcover.com found that drivers could save by choosing separate policies2
          4. Downsize your car, not your insurance – If you are downsizing to a smaller car to save money, don’t cancel your insurance as you’ll end up out of pocket due to cancellation fees. Shifting from a Ford Mondeo to a Fiesta and sticking with your existing swiftcover.com insurance could save you £1113 compared to cancelling
          5. Drive green and save money – swiftcover.com encourages drivers to become more environmentally friendly by giving them a 10% discount on insurance for greener cars such as the Honda Insight or the Toyota Prius. If you’re making use of the Government’s £2,000 scrappage rebate, consider one of the latest hybrid vehicles
          6. Don’t go for His n’ Hers insurance policies – You might be able to lower your insurance costs by adding your spouse to your own cover instead of both having separate cover. Compare the quotes to see which offers the best deal.
          7. Don’t drive without insurance – The police know if you are driving without insurance and 150,000 uninsured vehicles are seized every year, so being caught could result in a £1,000 fine, a driving ban and the destruction of your car
          8. Be careful with your voluntary excess – Choosing a higher voluntary excess could bring the cost of your insurance premium down. But if you make a claim you will have to pay the excess out of your own pocket outweighing the initial savings, and don’t forget you will also have to pay the compulsory excess as well, so it can all add up. So choose a voluntary excess that you can afford in the event of a claim
          9. Don’t pay for what you don’t need – Lower insurance costs by ditching extras you don’t need, such as overseas cover. Check the small print and if you’re not sure what certain features are, ask to have them removed if they don’t offer any benefit
          10. Keep you car in tip top nick – Good maintenance can save you money in the long term. For example, a chip in a windscreen can usually be fixed for free on most insurance policies, whereas replacing the entire glass will cost you your excess fee

          Multi-car policy comparison example one:1
          33 year old man living in Harrogate, North Yorkshire, insuring a 2006 Ford Fiesta 1.3 Finesse and a 2006 Ford Mondeo 1.8 Zetec, both petrol and manual. He works as a manager, has five years no claims discount, no convictions and uses the car for commuting/domestic purposes.

          1

          Multi-car policy comparisons example two:
          33 year old man living in Powys, Wales, insuring a 2006 Ford Fiesta 1.3 Finesse and a 2006 Ford Mondeo 1.8 Zetec, both petrol and manual. He works as a manager, has five years no claims discount, no convictions and uses the car for commuting/domestic purposes.

          2

          Single car quote comparisons example one:2
          33 year old man living in Powys, Wales, insuring: a) 2006 Ford Fiesta 1.3 Finesse and, b) 2006 Ford Mondeo 1.8 Zetec, both petrol and manual. He works as a manager, has five years no claims discount, no convictions and uses the car for commuting/domestic purposes.

          3

          Single car quote comparisons example two:
          33 year old man living in Harrogate, North Yorkshire, insuring: a) 2006 Ford Fiesta 1.3 Finesse and, b) 2006 Ford Mondeo 1.8 Zetec, both petrol and manual. He works as a manager, has five years no claims discount, no convictions and uses the car for commuting/domestic purposes.

          4

          Downsizing your car, not your insurance3

          5

          *Pro-rata cost is based on the balance of the annual cost of the original insurance for the original car after the six month refund, plus the annual cost of the original insurance for the downsized car, at a pro-rata rate of 12 months.
          **Savings by not cancelling your insurance based pro-rata insurance cost minus revised annual insurance of the downsized car.

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