John A. Rolls remains MBIA Board of Directors

MBIA announced that John A. Rolls has resigned from MBIA’s Board of Directors.

Mr. Rolls was elected to MBIA’s Board of Directors in 1995 and served as Chairman of its Finance Committee and as a member of its Audit Committee and Compensation and Organization  Committee. Mr. Rolls previously served as Chairman of the Audit Committee.

“John has been a valued member of MBIA’s Board for 14 years and has provided important insight and perspective,” said Dan Kearney, MBIA Chairman. “We thank him for his many contributions and wish him continued success in the future.”

THB Group expands in Zurich

Specialist broking group THB has announced the appointment of a new Senior Reinsurance Broker in its European Division.

Mr Arjan Tichelaar’s remit is to develop further the company’s premier book of business with existing and new business contacts.  He will take up his appointment with effect from 1st September 2009 and will be based in Zurich, Switzerland.

Arjan is well respected in the reinsurance environment and has a wealth of experience most recently as Client Executive and Facultative Broker for Guy Carpenter with clients in Germany, Austria, Switzerland and the Benelux region.

Joaquim Caria, Executive Director of the Amsterdam office, commented:

“I am delighted to welcome Arjan to THB European Division and I look forward to working closely with him as we continue to develop our core markets.”

Paul Lindeboom, also an Executive Director of the Amsterdam office, commented:

“Arjan has established excellent connections throughout his career in reinsurance and I know that his experience and profile will be highly beneficial to THB European Division.”

Aviva wins an award for its pioneering back-up service

Aviva is delighted to announce that, in conjunction with HCML, it has won the Employer Rehabilitation Initiative of the Year category at the 2009 Rehabilitation First Awards.

The highly coveted accolades officially recognise the excellence of those who lead the development of rehabilitation within the UK. The Employer Initiative of the Year category rewards solutions that offer an innovative approach to ensuring individuals receive prompt and expert care, reinforced by tangible results.

Developed with the UK’s leading professional rehabilitation provider HCML, Back-Up is an expert-led support and rehabilitation service that utilises evidence based medical guidelines for managing back and neck pain.

Rather than having to wait to see their GP, members of Aviva’s staff medical insurance scheme, call the Back-Up service to speak to a dedicated HCML case manager who conducts an in-depth assessment and offers practical and clinical advice and support. A personalised rehabilitation plan is then tailored to the employee’s individual needs. With the employee’s consent, the case manager can also work with their line manager to advise how the employee can be helped safely and effectively at work.

The Back-Up service has significantly improved the speed of recovery and return to work rate for Aviva’s employees. In addition, the number of physiotherapy sessions employees require has been greatly reduced, and far fewer employees have needed to be referred to a Specialist. This has in turn helped reduce the cost and incidence of claims on the Aviva staff medical insurance scheme.

Back-Up has also delivered significant improvements for Aviva’s corporate medical insurance customers.

Key results include:

• 50% of employees said the service prevented them going absent or restricting their duties
• Of the 25% who were absent prior to using the service, 100% successfully returned to work through Back-Up
• Physiotherapy sessions have been reduced by 37.5%
• At least a 15% saving on treatment costs
• 99% of customers found HCML intervention excellent or very good.
• 95% who had physiotherapy rated it excellent or very good.

Mark Sharpe, clinical development manager at Aviva’s UK Health business, said: “Musculoskeletal injury is one of the biggest causes of sickness absence in the UK and one which contributes to Aviva’s own sickness absence figures. We developed our Back-Up service to provide our staff with access to the best possible rehabilitation care and support whilst helping us tackle our absence costs.

“We are extremely proud of our Back-Up initiative which has already delivered numerous benefits for our staff, our bottom line and our customers. The personalised service has proven to help speed up individuals’ recovery, whilst helping control sickness absence and medical insurance claims costs. The feedback we’ve received from employees who have used the service has been absolutely fantastic and we’re delighted to have beaten off stiff competition to win this award.”

Helen Merfield, HCML’s CEO, added: “We are enormously proud of the service that the partnership between HCML and Aviva has created. Winning this award is a welcome external endorsement for an approach that we believe is unique within the private healthcare market; a demonstration that clinical best practice can be successfully delivered in a commercial setting to the benefit of the service user and the employer alike.”

In addition to offering the Back-Up service to its own staff, Back-Up is currently available to customers covering 250 or more employees on an Aviva’s corporate private health insurance policy. The invaluable service will shortly be made available to Aviva’s small group and individual private health insurance customers.

New services launched by Specialists in the Protection of Risks (SPR)

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.”

Fortis in partnership talks with the UK’s largest retailer Tesco

Belgium-based Fortis has emerged as leader of the pack of insurers vying for the contract to manage Tesco’s motor and home insurance businesses.

According to the Telegraph, Fortis is in ‘advanced’ talks to agree an insurance partnership with the UK’s largest retailer. Tesco admitted earlier this week that it is reviewing its long-standing insurance arrangement with the part-nationalised Royal Bank of Scotland.

RBS partnered with Tesco in the late 1990’s to set up Tesco’s motor and travel insurance businesses. Until last year, when Tesco bought out RBS’s stake in the business, the two firms split profits 50-50.

Insurance premiums sold by Tesco are worth an estimated £600 million per year. If Fortis secures the Tesco contract, it could create an extra 1,000 jobs at Fortis UK.

Fortis currently provides insurance for UK-based retailer Marks & Spencer.

MBIA rating has been downgraded by Moody’s

US-based bond insurer MBIA this week had its senior debt rating downgraded by Moody’s.

Moody’s Investors Service cut MBIA’s rating two notches from Ba1 to Ba3, three levels below investment grade.

The rating cut was blamed on MBIA’s exposure to high-risk investments, including residential mortgage-backed securities. Moody’s also cited ongoing litigation against the firm.

“These rating actions reflect further expected insured portfolio deterioration at MBIA Insurance Corporation and the uncertainty stemming from ongoing litigation challenging MBIA’s recent restructuring,” Moody’s said.

In its statement, Moody’s also warned of “meaningful uncertainty about the actual losses that MBIA will incur due in part to the lack of consensus about the direction of the economy and its effect on portfolio credit performance.”

MBIA is currently the target of a lawsuit by a group of 18 financial institutions who claim that the bond insurer’s restructuring earlier this year was fraudulent.

In the first quarter of 2009, MBIA divided its insurance operations into two segments, called National Public Finance Guarantee, and MBIA Insurance.
A statement by MBIA said: “we believe that these lawsuits are without merit and that the New York State Insurance Department’s approval of the transactions will be upheld.”

Broker THB Group revealed a 20% increase in turnover and 29% growth in its THB UK

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.”

Increased excesses can cut cost of car insurance

Higher excess could leave you with a hefty sum to pay if you make a claim.

Insurance policies are designed to protect people from financial hardship when unfortunate events interrupt their lives – or so the theory goes.

Motorists who dare to make claims on their motorist insurance policies could be forgiven for thinking otherwise: often it will be impossible to avoid severe financial penalties following a crash.

Usually these penalties take the form of greatly escalated premiums.

Now stripped of the original no-claims bonus or discount (NCD) of up to 70 per cent on some policies, the new premium could be prohibitive enough to force some younger or less experience drivers off the road.

This week, however, saw the introduction of a new motor insurance company that does it a different way.

Drivers who buy XS Direct’s Excess motor policy won’t lose their NCD if they make a claim, because the policy doesn’t have an NCD in the first place. However, they will have to fork out for a much stiffer policy excess – the part of a claim that drivers must pay themselves – than they would on other policies.

XS Direct charges an excess of €4,000 to male drivers and €2,000 to female customers, meaning they will not be able to claim for amounts lower than these sums.

Excesses on typical motor insurance policies are much more affordable.

FBD – which, alongside Quinn Direct, emerges as a consistently cheaper source of insurance in cost surveys by the Irish Financial Services Regulatory Authority (Ifsra) – charges no excess at all to policyholders aged between 25 and 71 with full licences. (Female drivers who avail of special rates pay €200 in the event of a claim and provisional licence holders pay €125.)

Meanwhile, Quinn Direct is reducing its policy excess from €250 to €190 from June 16th.

At some insurers, higher risk drivers will pay more. For example, at Allianz, the standard excess of €125 rises to €250 for provisional drivers, while at Eagle Star provisional drivers and people aged under 25 pay €315 compared to a standard excess of €190.

Some insurers also charge greater excesses for higher-value or more powerful cars. At Axa, for example, customers driving cars with an engine size of more than 1.5 litre pay €158 in the event of a claim compared to €126 on smaller cars.

Although XS Direct is upfront about the terms and conditions of its policy, burying higher-than-average excesses in the small print is an old trick that insurance companies use to make them appear more competitive than they really are.

For consumers who consider themselves safe drivers, accepting a higher excess can be a good way to keep their annual motor insurance costs down. However, it could prove to be a false economy of they have to make a claim.

At Hibernian Insurance, drivers can choose to reduce their excess to €125 by agreeing to a 2 per cent higher premium. They can also take a 3 per cent discount on their premium by agreeing to an excess of €600.

But this option is not all that popular with drivers. Only a couple of hundred out of Hibernian’s customer base of 427,000 have agreed to a higher excess, according to a spokeswoman for the insurer.

The Hibernian spokeswoman points out that the excess on its policies applies only to claims for accidental damage: the insurer will not ask policyholders to pay anything in the event of a third party claim.

However, on XS Direct’s policy, customers must pay its substantial excesses on all types of claims.

If a policyholder crashes into the back of another car and the other driver makes a claim against their policy, XS Direct will meet the liability but then seek to recover the hefty excess from the insured person.

The insurer says its higher excesses along with the absence of a no-claims discount allow it to offer lower premiums.

However, XS Direct admits that its product, underwritten by Wrightway Underwriting, is a niche one, appealing to those who are currently paying high premiums of €1,000 or more. This group might include drivers who have recently lost their NCD, younger drivers, people with expensive or high-performance cars and those moving from a company car scheme.

The NCD has been done away with because it has “very little basis in probability”, according to XS Direct. So, if customers do have to make a claim, it will set them back up to either€2,000 or €4,000 but their premiums won’t skyrocket afterwards.

All motorists should use the statutory 15-day notice period for motor insurance renewals to shop around for alternative cover to their current insurer. Premiums fluctuate, with companies gaining or losing competitiveness from one year to the next.

The merits of ringing around for quotes are even stronger for drivers who might be in a vulnerable position following the loss of their NCD.

Even if XS Direct does manage to save them a few hundred euro a year, they will have to ask themselves whether the savings are worth the risk of having to pay up to €4,000 in the event of a claim.

XS Direct, which plans to introduce a policy, aimed at younger drivers within the next 12 months claims its excesses incentivise policyholders to adopt a more sensible and cautious approach to driving. Arguably, the threat of losing valuable no-claims discounts on other insurance policies does the same thing.

However, at most of the mainstream insurers, motorists can pay extra for no-claims discount protection, meaning that, if they do need to make a claim, they needn’t suffer unnecessarily come renewal time.

Scotland water supplier & Insurer March enable customers to withstand water-related emergencies

Scotland’s main non-domestic water supplier Business Stream has launched a new service with risk adviser and insurer Marsh to offer customers emergency cover.

Scotland’s non-domestic water supply has been open for competition since April 2008, and this move is the latest in a number of innovative changes that have occurred since then.

The new Business Stream Emergency Cover has been created to enable customers to withstand water-related emergencies such as plumbing issues, electrical and gas pipe faults, heating breakdown and pest infestation.

The coverage costs from £15 a month and includes a guaranteed response time of 2 hours or less and will cover every hour of every day of the year.

Scottish customers have been saved £5.5m in recent times by dozens of innovative initiatives launched by Business Stream.

In April of this year the firm urged businesses to save money and do their bit for the environment using a free, water saving hippo.

The hippo is a small bag fitted in the cistern which can save as much as 3.5 litres per flush, saving money and reducing the amount of water used.

XS Direct launches new motor product

XS Direct, the Irish motor insurer, has unveiled a new Full Cycle EDI motor product aimed at Open GI brokers.

The motor brand began trading four years ago and offers high premium drivers substantial savings on their motor insurance.

International Insurance Company, Hannover, is underwriting the new product and its launch brings the number of Full Cycle EDI motor products available through Open GI in the UK to over 330.

XS Direct, the Irish motor insurer, has unveiled a new Full Cycle EDI motor product aimed at Open GI brokers.

The motor brand began trading four years ago and offers high premium drivers substantial savings on their motor insurance.

International Insurance Company, Hannover, is underwriting the new product and its launch brings the number of Full Cycle EDI motor products available through Open GI in the UK to over 330.

Business Development head David Shaw has explained that the firm’s approach is to provide products that are transparent and also highly efficient.

Shaw added that XS Direct had teamed up with Open GI to take advantage of Open GI‘s large broker base enabling the firm itself to focus upon delivering the best possible service and reducing premiums as far as possible.has explained that the firm’s approach is to provide products that are transparent and also highly efficient.

Shaw added that XS Direct had teamed up with Open GI to take advantage of Open GI‘s large broker base enabling the firm itself to focus upon delivering the best possible service and reducing premiums as far as possible.

Lloyd’s confirms Michael Jackson exposure

Lloyd’s of London has confirmed that concert promoters insured Michael Jackson comeback tour with the market, but said losses resulting from Jackson’s death “are not likely to be significant”.

Early estimates put Lloyd’s potential exposure from events cancellation insurance at $400 million.

However, Lloyd’s said AEG Live, organisers of Jackson’s concert tour, were likely to have taken out several different policies with various insurers.

“We can confirm that some insurance for Michael Jackson’s concerts has been placed in the Lloyd’s market, but any losses are not likely to be significant,” a Lloyd’s spokesperson said.

Chris Rackliffe, underwriter at rival insurance firm Beazley, said not many insurers would be willing to take on the risk of a high-profile artist with serious health problems.

“His prior history, the fact of his health and the difficulties he has had in his life over the past few years mean that, from our point of view, he would have been very high risk,” Rackliffe said.

Jackson had been due to arrive in Britain next month to launch his comeback tour of 50 concerts at the O2 arena on 13 July.

The tour had originally be scheduled to begin on 20 May, but the O2 arena delayed until 13 July saying Jackson needed more time for dress rehearsals.

Over £50 million worth of tickets have been sold for the UK concerts, which would have been Jackson’s first solo performances since 1997.

Are you covered from hosting parties damage ?

Greenbee Home Insurance has conducted a survey of over 2,000 adults and discovered that over a fifth (23%) of 18-24 year olds are wary of hosting parties at home in case of accidental damage.

The figure is threefold that of those aged 65 and older, of whom only 8% share the concern of potential party damage, and over twice the proportion (10%) of 55-64 year olds anxious about damage.

The young adults, dubbed CHAPS (Cautious Hosts Against Party Stress), are bucking the stereotypical view that many hold of them, but are not the only segment of society concerned by the potential financial costs of hosting parties.

Across the board 14% do not enjoy hosting parties due to the possibility of damage occurring.

The research also reveals that one of the reasons for the rise of the CHAPS is that the current economic difficulties mean that the cost of replacing damaged goods is particularly unwanted at this time.

There is also a significant gap between those who are covered by the insurer as standard (13%) and those who believe they are (23%). Greenbee.com’s MD, James Furse, advises homeowners to check their insurance policies to clarify whether or not they are covered.

Legal expenses insurer, MSL : Big success with its new online quote system

The recently launched facility, called MSL Connect, is currently being used by over 90% of the firm’s intermediary and insurance clients.

It allows brokers to log claims and track their progress online via a password-protected system and can generate premium quotes and policy documentation, adding upgrades and product enhancements to suit the needs of customers.

The system is linked to the company’s rating engine and database, allowing quotes to be generated as soon as the policyholder’s details and risk information are entered.

Brokers also have the ability to tailor legal expenses products for their clients depending on their circumstances.

MSL managing director, Nick Garner, comments: “The feedback so far from brokers has been very good. They are able to see immediate benefits in terms of tracking claims online and generating quotes.”

Last month, MSL launched a range of new products: MSL UK & European Breakdown Assistance provides rescue services for motorists including local, national and European recovery and MSL Home Assist offers 24-hour help for householders who experience a domestic emergency.

Finally, MSL ID Theft Assist provides comprehensive assistance to victims of identity theft.

Recession : CBI survey shows Insurance companies are the most optimistic

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.

BIBA to form the London Market Region Committee

The British Insurance Brokers’ Association (BIBA) has announced the formation of the BIBA London Market Region Committee (LMRC), which will represent its London market brokers.

The committee is chaired by Ken Davidson, currently chairman of Crispin Speers, and will be integrated into BIBA’s existing regional committee structure.

The new body replaces the London Market Brokers’ Committee, which was disbanded at the beginning of the year.

It aims to provide a strong voice on behalf of BIBA’s London market broker community to the Financial Services Authority, European regulators, the Government and other stakeholders.

BIBA says the change will allow it to engage directly with London market brokers, who can then influence BIBA’s key industry and lobbying initiatives.

LMRC members will have the opportunity of joining the BIBA Board, General Insurance Brokers’ Committee, regional and technical committees.

They will also be working with other London market bodies, including the London & International Insurance Brokers’ Association, on areas of mutual interest.

BIBA’s chief executive, Eric Galbraith, sums up by saying: “LMRC will provide strong representation for London market brokers and also provides a new opportunity for this important sector of the market to be integrated into BIBA’s well established structure, which has achieved a number of wins for brokers with the regulator and the Government recently.”

Hannover Re expects €25m Air France claims

Hannover Re expects to be hit with net damage claims of €25 million from the Air France plane crash earlier this month.

A spokesperson for the reinsurer said the estimate was preliminary, and that the firm is waiting for additional information on the possible causes of the crash.Investigators scouring the scene of the accident have yet to find flight records.

Flight AF 447 from Rio de Janeiro to Paris crashed into the Atlantic ocean on 1 June, killing 228 passengers and airline crew. French and Brazilian ships continue to search the ocean for debris and bodies.

Rival reinsurer Munich Re said it is expected net claims from the crash in the region of €50 million.

ABI challenges FSA on Retail Distribution Review qualification issues

The Association of British Insurers (ABI) has responded to the Financial Services Authority’s (FSA’s) Consultation Paper on the Retail Distribution Review (RDR) by applauding the work so far but expressing disappointment that it does little to encourage savings and advice for the mass market.

ABI director of life and savings, Maggie Craig, points out that around half the UK population is not currently saving enough and that the review provides an opportunity to help individuals access financial advice that suits their needs.

However, the FSA wants the same level of qualification for those who offer streamlined advice as for those who issue full advice. According to the ABI, this raises “serious concerns” that fully qualified advisers will look towards higher paid work, to the detriment of those who want access to simple products.

The Association is also calling for “clear labelling” to help consumers receiving financial advice for the first time, rather than the range of options proposed by the FSA, such as independent advice, restricted advice, basic advice and streamlined advice sales.

The body also suggests that the regulator and the Financial Ombudsman Service will need to give clear guidance on how they will treat different categories of advice.

John Renz named as Human Resources Director of Novae Group

Novae Group, the specialist insurance and reinsurance carrier, has announced the appointment of John Renz to the post of Human Resources director.

In his new post Renz will be responsible for supervision of operations of Group, syndicate and insurance companies. He leaves behind the post of HR director with Mourant, a financial services administration and advisory firm, to join Novae.

Renz brings with him two decades of experience in HR management and has held senior posts with Standard Life, Grant Thornton, and City law firm Linklaters. Strong leadership is the key to employee motivation and retention, Renz has stated, going on to say that he was attracted to the firm due to its strength of leadership and commitment to its employees.

Chief executive officer Matthew Fosh has warmly welcomed Renz to the organisation and praised his extensive experience in HR.

Be careful about overseas driving

Motorists taking a road-trip overseas this summer should swot-up on the rules of the road in the countries they’re visiting, Sheila’s Wheels said this week.

A survey by the female-friendly car insurer found that one in three (33%) British drivers wrongly believe driving regulations overseas are the same as in the UK.

Nearly a third (32%) of motorists have driven illegally in Europe by not carrying a warning triangle in their car. Over 2.5 million motorists confessed to not knowing the speed limit on foreign roads, while 85% of those polled didn’t know the speed limit on French motorways.

A further 15% thought their UK car insurance gives them the same cover while abroad.

“It’s vital that motorists do their research beforehand by making sure they understand the basic rules and regulations for driving on foreign roads,” said Sheila’s Wheels spokesperson Jacky Brown.
“Being fully prepared by planning their journeys, carrying the essential equipment and giving their car a maintenance check before setting off is also a must – especially as a breakdown with kids in the back of the car is enough to put a dampener on any holiday.”

One in eight (83%) motorists driving overseas this summer are headed for France.

Recession has less impact for Munich RE

The recession has had little impacts on contracts due for renewal in July, Munich Re said this week.

The world’s largest reinsurer by premium income said demand for reinsurance policies “continues to be pronounced”, especially for policies that cover natural disasters.

Some sectors will suffer, Munich Re said, as reduced sales of motor insurance, life insurance, and pensions provisions has knocked demand for reinsurance.

Furthermore, during a recession insurance firms suffer higher damage claims in several areas, including credit insurance, liability insurance, and workers’ disability insurance.
Rate increases of 3% to 5% are needed to compensate for the downturn in demand and the increased claims, Munich Re said.

In January and April contract renewals, the reinsurer secured average rate rises of 3% and 7% respectively. CEO Joerg Schneider said he is cautiously optimistic that rate rises will compensate for the effects of recession.

Byelaws : Insurance Glossary

Rules and practices that govern insurance business.

Buy Back : Insurance Glossary

In the context of general insurance this refers to the purchase of cover in respect of an otherwise excluded peril by means of the payment of additional premium.

Business process reform : Insurance Glossary

An initiative to increase the speed and efficiency with which business is transacted and also to reduce of the cost of doing business. It includes the promotion of contract certainty.

Brokerage : Glossary : Insurance Glossary

The commission that is payable to a broker for placing an insurance or reinsurance contract with an insurer or a reinsurer. Compare fee for service.

Although brokerage is payable by the insured as part of the gross premium the amount of brokerage is agreed by the insurer. The insured may request his broker to state the amount of his brokerage on a given placement. Similar considerations apply to reassureds under reinsurances.

Sometimes the term brokerage may be used to refer the business of a broker.

Broker : Insurance Glossary

There are two types of broker involved in arranging insurance and reinsuranc: insurance brokers and reinsurance brokers. Some brokers act both as insurance brokers and reinsurance brokers.

Box : Insurance Glossary

Each syndicate has a box in the underwriting room at Lloyd’s from which business may be transacted with Lloyd’s brokers. Each box comprises a couple of opposite facing benches and desks at which the underwriters employed by the managing agent of the syndicate sit, plus some loose stools for the visiting Lloyd’s brokers to sit on. Most boxes have computer terminals as well as access to other information technology.

Bordereaux : Insurance Glossary

A list of premiums payable and claims paid or due which is prepared by a coverholder for a managing agent or by a reassured for its reinsurer. Bordereaux are commonly produced on a monthly or quarterly basis. They breakdown block premium payments that are made to underwriters and detail claim payments made on behalf of or due from underwriters.

Binding authority : Insurance Glossary

An agreement between a managing agent and a coverholder under which the managing agent delegates its authority to enter into a contract or contracts of insurance to be underwritten by the members of a syndicate.

Beyond economic repair : Insurance Glossary

Where the cost of repairing the insured property, eg a car, exceeds the market value of that property. In such circumstances the insurer will pay the insured the market value of the insured property at the date of loss, subject to the terms of the policy (assuming the insurer is not under any obligation to provide a replacement).

Basis (of insurance) clause : Insurance Glossary

A clause that makes the declarations contained in an insurance proposal form the “basis” of any contract of insurance that is made in consequence of the completion of that form. Such declarations are thereby converted into warranties with the result that if one of them is found to be untrue then the insurer may disclaim all liability under the relevant contract from the date of the breach, regardless as to whether the false declaration was material to the underwriting of the contract or causative of any loss.

Basis of insurance clauses are not normally found in personal lines insurance contracts sold in the United Kingdom and, where they appear in other contracts, they may be qualified by the inclusion of a term in the proposal form that the declarations made in that document are true to the best of the knowledge and belief of the person making the declarations.

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