| A Week In the Market is the free E-zine brought to you by the publishers of Global Broker & Underwriter Magazine
It is completely free.
Please forward this e-mail to your work colleagues or any one else who it may be of interest to.
To register for your own copy click here
A Week In The Market brings you an authoritative snapshot of the major events in the industry each week. We aim to keep you informed without taking up too much of your working day. If you would like to register for A Week In the Market just click on the link above – and remember it is free
This Issue
---------------------------------------------------------------------------------------------
Fresh climate warning on costs of floods
A rise in global temperatures could lead to more expensive and harder to obtain property insurance in the UK and throughout the world, according to a new report. The Association of British Insurers (ABI) combined with risk modelling experts AIR and the UK’s Met Offices to create the new study which examines the financial implications of the widely predicted temperature increases of two, four and six degrees Celsius on the insured cost of flood and windstorm damage in the UK, and of typhoons in China. The reports findings, while not unexpected still provide further evidence say its authors of the need to tackle climate change or pay the price. The study found that if the temperatures rise in the UK, the average annual insured losses from river flooding and flash floods could rise by 14% to £633 million, based on a four-degree rise in global temperatures which could occur as early as 2060. The average annual windstorm losses could rise by 25% to £827 million, due to changes in ‘storm tracks’, along which cyclones travel. In China average annual insured losses from typhoons could jump by 32% to £345 million, based on a global temperature rise of four degrees. Nick Starling, the ABI’s Director of General Insurance and Health, said: “These findings have serious implications for insurers, householders, businesses and governments. The continued widespread availability of property insurance in the future depends on taking action now to manage the threats of climate change. A two-degree temperature rise may be inevitable, but we can limit further increases. The clear message to world leaders meeting at the UN’s Copenhagen Climate Change Summit in December is that they must reach agreement on ambitious emission reduction targets. And, closer to home, the UK Government needs to push ahead with the Flood and Water Management Bill, and ensure long-term investment in flood management as a priority, so that the long-term flood risk is better managed.”
Willis network to go global
Willis has unveiled plans to expand its Willis Commercial Network business model for serving independent brokers from its base in the UK to countries across the world. Willis Networks was established in the UK in 1999 and is comprised of the Willis Commercial Network, representing more than 81 regional brokers who place in excess of £350 million in premium; and Willis N2, which represents 21 smaller, community brokers who place around £50 million in premium. Members of Willis Networks receive technical and sales training from Willis, as well as strategic marketing, compliance, business development and sales support, along with access to Willis’ global placement and industry resources. In order to deliver the international aspirations Willis has also announced the appointment of the man will spearhead the expansion, with Mark Radburn becoming CEO, Willis Networks International. Mr Radburn, who has developed and led Willis Networks for seven years, will report to Sarah Turvill, CEO, Willis International. Phil Scarrett, currently Managing Director of Willis UK & Ireland’s Commercial business, will succeed Mr Radburn as Managing Director, Willis Networks, in the UK, and will continue to report to Brendan McManus, CEO, Willis UK & Ireland. Commenting on the appointments, Mr McManus said, “The key to the success of Willis Networks has been the independence of its members and their access to our strong trading relationships with leading insurers, cutting-edge technology and business support and training services. We believe that the name we have created for our Networks in the UK will resonate in other markets around the world and have appointed Mark to lead the initial charge into Europe and Latin America. The UK networks remain the jewel in our crown and Phil’s experience will help us reach our goals of growing the Willis Commercial Network to 100 members and Willis N2 to 120 members by 2011.”
Industry warned on the rise of unmanned aircraft
Members of the Insurance Institute of London have been told that the aviation insurance sector has to begin work on how it will offer coverage to the new breed of unmanned aircraft. In his speech at the Lloyd’s Old Library Richard Williams, Programme Director, Future Capability Autonomous Systems for BaE Systems said the issues for the Industry would be ones of history and data. He said it was 101 years since Orville Wright crashed and died on a flight with a colleague providing the market with the first ever passenger aircraft loss and since that time the market has been collecting data on which to base its pricing decisions. “The aviation market has been underway for over 100 year and as such you as insurers have a century of accident and loss data on which to base your underwriting,” he said. “The biggest challenge is that there is not that century of data on unmanned autonomous aircraft. You need to start to consider how you will underwrite and rate a significant new chapter in the future of aviation.”
Estimates say that the market for Autonomous Unmanned Vehicles will hit in excess of £1.2 billion in 2018 as the civil and commercial markets look to utilise the technology. “The world is becoming an ever more dangerous place and the use of technology to provide protection to citizens has been a significant topic,” he added.
Irish insurer looks to highlight drug dangers
Ireland’s Setanta Insurance, is spearheading a campaign to Keep Drama off The Roads through raising awareness among young people of the dangers of drug driving. Launched this week the campaign encourages young people to recognise the terrifying consequences of drug driving by creating short four-minute films to capture the dramatic impact of Ireland’s growing social problem. A recent study illustrated Ireland’s increasing drug problem with one in five admitting they had taken illegal drugs, with young people aged 15-24 coming out on top. In 2008, almost 1,800 tests were carried out on motorists suspected of drug driving with around three quarters of them proving positive. Setanta Insurance, which has operations in both Dublin and Malta said it hoped that through launching a campaign to educate young people on the real dangers of drug driving, “the company demonstrates its commitment to making Ireland’s roads a safer place, underpinning its mission of changing insurance for good”. The Keep Drama off the Roads campaign will see young people across Ireland compete for a national title, a €3,000 prize and the opportunity to have their film screened to the public. A series of regional finalists will also be selected and the regional winners will each be awarded with a €300 prize. Mike Matthews, Chairman and CEO, Setanta Insurance added: “Drug driving is claiming the lives of road users. We believe raising awareness of the dangers and giving young people the freedom to be creative with a serious issue will highlight the problem and discourage the use of drugs behind the wheel. This is a great opportunity for a young Speilberg or Scorsese to get their first taste of filmmaking with a tough and challenging brief. Issues surrounding irresponsible driving won’t just disappear, however we hope the first Keep Drama off the Roads campaign will really raise the profile of a problem which saw 711 recorded offences up to March this year alone.”
New head for British insurance
The Association of British Insurers (ABI) will get a new Director General next year with the current Executive Director and CEO of the Insurance Council of Australia, Kerrie Kelly swapping the Great Barrier Reef for Gresham Street in February. She will replace the current Director General Stephen Haddrill who is to join the Financial Reporting Council. Ms Kelly has led the Insurance Council of Australia since 2006 and was previously CEO of the Financial Planning Association in Australia. She currently holds several non-executive directorships in Australia including HSBC Bank Australia, the Financial Literacy Advisory Board, the Financial Ombudsman Service and the Finance Industry Council of Australia. The ABI’s Chairman, Archie Kane, who led the recruitment process, said: “Kerrie is a proven and energetic leader whose success across the commercial, legal and public sectors will ensure the ABI has a strong and powerful voice at its helm at a crucial time for the insurance industry. Along with her leadership experience, Kerrie will bring a unique perspective to the public policy debate in the UK and EU, and her lobbying expertise will ensure the insurance voice is heard in Westminster and Brussels.” Ms Kelly added: “Stephen Haddrill has been a highly effective leader and ensured the ABI has punched its weight. I am determined to do the same and I am delighted to lead the ABI forward at such a crucial time for the insurance industry and the future of financial services generally.”
Jon Guy
Editor
Global Broker & Underwriter
---------------------------------------------------------------------------------------------
Editorial-Solutions Ltd
The Annexe
7 Birchin Lane
London EC3V 9BW |
