tag:blogger.com,1999:blog-72132667195377648592024-02-08T11:04:30.746-08:00RA GROUP NEWSWELCOME TO OUR NEWS BLOG WHERE YOU CAN FIND OUT THE LATEST NEWS AND INFORMATION FROM THE INSURANCE INDUSTRYRA Group Newshttp://www.blogger.com/profile/15794601105977249164noreply@blogger.comBlogger9125tag:blogger.com,1999:blog-7213266719537764859.post-82078577409344435842011-01-25T06:41:00.000-08:002011-01-25T06:41:23.010-08:00Economy shrinks 0.5%, latest figures reveal<div class="standfirst">GDP slumps for first time in more than a year<br />
</div>UK gross domestic product (GDP) decreased by 0.5% in the fourth quarter of 2010, fuelling fears of a double dip recession.<br />
The Office for National Statistics (ONS) estimates for October to December 2010 compared with an increase of 0.7% in the previous quarter. <br />
<a name='more'></a>The ONS attributed last quarter's economic decline on the bad weather in December. <br />
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<div class="advert"></div>It is the first time the economy has shrunk since the third quarter of 2009 - driven by construction, which slumped 3.3% compared with a 3.9% increase in the previous quarter, and services, which shrank 0.5% compared with a rise of 0.5% in the previous quarter.<br />
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"These are obviously disappointing numbers, but the ONS has made it very clear that the fall in GDP was driven by the terrible weather in December," Chancellor George Osborne said in a statement on the BBC.<br />
He said the government would not consider changing its austerity programme.<br />
"There is no question of changing a fiscal plan that has established international credibility on the back of one very cold month. That would plunge Britain back into a financial crisis. We will not be blown off course by bad weather," he added.RA Group Newshttp://www.blogger.com/profile/15794601105977249164noreply@blogger.comtag:blogger.com,1999:blog-7213266719537764859.post-48507026867768782932010-11-10T01:07:00.000-08:002010-11-10T01:07:50.218-08:00Aon: Insurers are reluctant to pay BI claims<div class="standfirst">Broker warns companies to develop ERM programs to minimise risk.<br />
</div>Aon has reported an increased demand and enquiries for business interruption (BI) insurance but a decreasing appetite of insurers to pay claims for this type of insurance.<br />
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At a Madrid conference, Aon told delegates that in recent years, although companies understand they face greater risks, insurers have shown reluctance to BI insurance coverage. <br />
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The international broker said insurers are making it more difficult to make a claim under BI insurance by tightening policy wording, reducing the amount they are liable for at policy renewal and employing various tactics to lower the amount paid in claims and delay paying claims.<br />
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Aon said one way to help mitigate risk is to develop an ERM program that minimises risks throughout the business in order to reduce the costs of insurance and additional risk financing measures.<br />
Paul Johnson, regional managing director for Aon’s Asia Pacific risk consulting team, said: “BI reviews are continuing to rise, but we are not seeing a similar correlation with claim payments. It is essential for firms to work with their broker and risk consultant to decrease any wriggle room an insurer may have to decline a claim.”<br />
“Many firms are increasingly retaining risk on their balance sheets to lower insurance costs due to financial pressures, rather than transferring them to the insurance market. In this case, a firm must have an ERM program in place to ensure they have reduced their exposure to losses and are prepared to deal with any issue they may face,”Johnson added.RA Group Newshttp://www.blogger.com/profile/15794601105977249164noreply@blogger.comtag:blogger.com,1999:blog-7213266719537764859.post-45598888799427912042010-10-23T03:03:00.000-07:002010-10-23T03:03:37.675-07:00QBE scales back Evergreen as staff face axe<div class="standfirst">QBE in redundancy talks with four staff as it stops renewing proportion of business.<br />
</div>QBE Europe is scaling back business at its SME underwriting business Evergreen, while four staff are in redundancy talks, <em>Insurance Times </em>understands.<br />
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The insurer is winding down some of its business, although a spokesman would not say how much business was being scaled back. QBE said it had no plans to put Evergreen into run-off.<br />
<a name='more'></a>QBE bought the brand and renewal rights of the <a href="http://www.insurancetimes.co.uk/story.asp?sectioncode=13&storycode=381922">Evergreen portfolio in December 2009</a> from Munich Re-owned Beaufort Underwriting Agency.<br />
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<div class="advert"></div>According to a note on the Evergreen website, Evergreen is set to complete a re-branding to QBE with effect from 15 December 2010.<br />
A QBE spokesman said: "We are currently in consultation with four employees from our London SME portfolio and are using best endeavours to retain them.<br />
"QBE has retained all business that has met its underwriting standards, although it has not renewed business that did not meet its underwriting standards."RA Group Newshttp://www.blogger.com/profile/15794601105977249164noreply@blogger.comtag:blogger.com,1999:blog-7213266719537764859.post-56411955236931656952010-10-20T08:24:00.000-07:002010-10-20T08:24:30.161-07:00Ataraxia acquisitions get own Lloyd’s insurer<div class="standfirst">New Lloyd's insurer, Ataraxia Markets, to underwrite for acquired businesses.<br />
</div>Ataraxia Broking, the brainchild of former Brokerbility chief executive Stuart Randall, is setting up a Lloyd’s insurer to exclusively underwrite business for its acquisitions, <em>Insurance Times </em>reveals this week<br />
The new insurer arm, which will be called Ataraxia Markets, will begin underwriting from the Lloyd’s building next month.<br />
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Randall, who founded Ataraxia Broking five months ago to snap up small brokers, said it would only accept business placed by its acquired brokers.<br />
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Chief executive and founder Stuart Randall said it would only accept business placed by acquisitions of Ataraxia Broking, a company he founded five months ago to snap up small brokers.<br />
Ataraxia Markets is backed by a capacity provider with an AM Best ‘A’ rating, although Randall would not reveal its identity. <br />
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“It has substantial capacity. It’ll cater for 99% of all risks that we come across,” said Randall, who is former chief executive of both Brokerbility and Brett & Randall.<br />
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“We have found a capacity provider that will provide exclusive and unique capacity to Ataraxia. It is only available to Ataraxia brokers. The main core classes will be provided by this provider, but around the edges of that there will be other providers for specialty classes.”<br />
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<div class="advert"></div>Ataraxia Broking has a panel of insurers that it can place business with. If the business cannot be placed through the panel, it will pass it on for Ataraxia Markets to underwrite. Occasionally, Ataraxia Markets will pass on uncommon risks to a Lloyd’s broker for placement. <br />
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Randall said: “We’re starting to go out into the broker community to talk to brokers, and the response has been very good. We’ve got a good pipeline of people now.<br />
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“Everything has worked according to plan so far. We’re cautiously optimistic, and so far so good.”<br />
Adam Boakes is managing director of Ataraxia Markets, while remaining sales director of Ataraxia Broking.<br />
Randall stepped down as chief executive of Brokerbility and Brett & Randall in December last year, following a management buy-out led by chief executive of Brett & Randall and chairman of the Brokerbility Group, Ashwin Mistry.<br />
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Randall started Ataraxia Broking to buy smaller brokers with premium income between £2m and £5m, allowing managers to stay on as long as they want.RA Group Newshttp://www.blogger.com/profile/15794601105977249164noreply@blogger.comtag:blogger.com,1999:blog-7213266719537764859.post-21916070540955254022010-10-15T02:08:00.001-07:002010-10-15T02:08:41.290-07:00Resolution buys Bupa - £102m<div class="standfirst">Bupa Health Assurance becomes part of Friends Provident</div><br />
Resolution has bought the entire issued share capital and business of Bupa Health Assurance for £102m, funded from surplus capital held within Friends Provident’s life operating businesses. <br />
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BHA will be run as a stand-alone business within the Friends group for a period of up to a year. After that Resolution expects £22m of savings through synergies.RA Group Newshttp://www.blogger.com/profile/15794601105977249164noreply@blogger.comtag:blogger.com,1999:blog-7213266719537764859.post-35422113592595975312010-10-15T02:06:00.001-07:002010-10-15T02:06:48.193-07:00Chaucer in takeover rumoursThe buy-out division of Goldman Sachs is rumoured to have teamed up with TPG Capital to bid to takeover Lloyd’s insurer Chaucer, the Telegraph reports. <br />
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But is said people familiar with the matter said Goldman Sachs and TPG are not in takeover talks at the moment and that the buy-out tittle-tattle is "wide of the mark".RA Group Newshttp://www.blogger.com/profile/15794601105977249164noreply@blogger.comtag:blogger.com,1999:blog-7213266719537764859.post-12306876823162882852010-10-12T04:41:00.000-07:002010-10-12T04:41:28.424-07:00Cost of piracy still uncertain, says Actuarial ProfessionThe true cost of maritime piracy is still uncertain, according to a report by the Actuarial Profession. <br />
The report states that the relative lack of statistics on maritime piracy makes risk estimation difficult.<br />
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Neil Hilary, a staff actuary with the Profession and one of the authors of the report, said: "Piracy attacks have been on the increase in the last 15 years. But since 2006, the level of attacks has increased by an average of 125%, and this is almost entirely due to the attacks by Somali pirates. <br />
<a name='more'></a>"However, the challenge to the actuaries involved in pricing maritime insurance products is considerable. <br />
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<div class="advert"></div>"Firstly, actuaries are used to working with statistics which number thousands and tens of thousands. Despite the increase in piracy attacks, the numbers are still relatively small. And secondly, the information about the attacks issued by shipping owners is often vague. Understandably, shipping owners don’t wish to encourage further acts of piracy, but without knowing the full details we cannot come up with the true cost.<br />
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"The authors of the report have been able to come up with an estimated cost of around $9m (£5,686,159) for each attack using publicly available data at the time and, with a success rate of 6 per mile. his produces a kidnap and ransom rate of around $57,000 (£36,008) per vessel using the Suez canal. But this is based on judgement, not on strict modelling. <br />
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"So, without accurate figures, uncertainty will remain – future costs may be significantly different."RA Group Newshttp://www.blogger.com/profile/15794601105977249164noreply@blogger.comtag:blogger.com,1999:blog-7213266719537764859.post-63919501022395558272010-10-08T04:38:00.000-07:002010-10-08T04:38:51.564-07:00Insurers to challenge EL trigger litigation rulingInsurers are set to challenge a landmark court judgment handed down today that could dramatically increase their exposure to mesothelioma claims. <br />
In a series of cases known as the Employer’s Liability Policy Trigger Litigation, the Court of Appeal upheld a high court ruling that employer’s liability policies should respond to claims that were in force at the time of the claimant’s exposure to the harmful cancer causing material instead of those in place when the disease actually developed. However, it ruled that this may not to apply to all policies.<br />
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This means that in many cases, public authorities will now have to make provisions for exposure prior to 1974 and private companies will have to meet claims if they have a pre-1972 policy in place when the claimant’s tumour began to develop.<br />
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<div class="advert"></div>Law firm Buller Jeffries, which acted on behalf of Zurich in the case, is planning to challenge the judgment in the Supreme Court. Buller Jeffries partner Derek Adamson said: “The next step is the Supreme Court for clarity on the wording of such policies as the outcome has massive implications for all employers, their insurers and most importantly the victims of this dreadful and fatal disease.”<br />
Berryman Lace Mawer partner Henry Birmingham said: "The eagerly anticipated Court of Appeal judgment in the EL Trigger Litigation can only be described as complex. <br />
“Private companies, the public sector and their insurers hoped for clarity and certainty on who was liable to compensate victims of historic asbestos exposure. However, in the extraordinary judgment which spanned more than 160 pages, the waters have been muddied somewhat. The lack of uncertainty is deeply troubling for all involved.<br />
He added: “Insurers and their defendants will become liable for an increasing burden of claims and they will no doubt need to fill the insurance black holes that this judgment has left."RA Group Newshttp://www.blogger.com/profile/15794601105977249164noreply@blogger.comtag:blogger.com,1999:blog-7213266719537764859.post-8487034352165151792010-10-06T11:30:00.000-07:002010-10-06T11:30:58.186-07:00Aon warns on Hungary sludge disaster<span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><span class="Apple-style-span" style="font-family: Times;"><span class="Apple-style-span" style="font-size: medium;">Firm facing toxic sludge clean up bill under environmental liablity laws</span></span><br />
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A toxic sludge pollution scare in Hungary should serve as a warning that companies need insurance against the Environmental Liability Directive (ELD), warns Aon Risk Solutions.</span></span></span><br />
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A huge clean up process is underway in Hungary after toxic sludge escaped from a failed reservoir belonging to an industrial company.<br />
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<span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><span class="Apple-style-span" style="font-family: Times;"><span class="Apple-style-span" style="font-size: medium;">Under the ELD, all companies have a liability and many because of the nature of their operations do not even have to be at fault if the environment is damaged due to the actions of a company.<br />
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Simon Johnson, Aon Risk Solutions’ environmental director for the UK, Europe, Middle East and Africa, said: “While most companies are good corporate citizens and take risk management with regards to the environment extremely seriously, occasionally accidents or incidents beyond anyone’s control can happen.<br />
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"Under the ELD, which has some extremely strong teeth, it is entirely possible that an accident such as the tragedy in Hungary could ultimately lead to the total collapse of the company at fault if they do not have suitable insurance coverage in place.<br />
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“In this instance, there is a serious threat to the environment and for contamination including the Danube, which could lead to serious environmental damage in other countries. If the company responsible for the original damage were to collapse, it is not unimaginable to imagine a scenario in which one country seeks another to pay for the subsequent costs of cleanup. Current estimates are that it will take at least a year and tens of millions of Euros."<br />
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Johnson said companies dealing in industrial business needed full insurance coverage.<br />
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“It is absolutely vital that companies are explicitly aware of the risks their operations pose and the financial exposure they face should something go wrong, no matter how remote the possibility. When working with our clients we advise them to take a comprehensive environmental insurance programme," he said.<br />
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"There is a mature insurance market for these types of risks, and it is entirely possible to get insurance coverage for up to €150m for an individual risk. It is worth being aware that when buying insurance, this doesn’t simply pay for the financial compensation you will receive, but also gives you access to experienced professionals who can advise the best way to mitigate damage. Without insurance, dealing with the aftermath of a disaster is completely down to the resources already within a company, something many firms simply will not be prepared to cope with.”</span></span></span>RA Group Newshttp://www.blogger.com/profile/15794601105977249164noreply@blogger.com