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Retirement specialist LV= has declared the first return for its investment-linked annuity (Pension Income Plus Annuity) of 3.75%, to which LV= will also apply a mutual bonus of 1%.

Michelle Cutler, Head of Investment-Linked Annuities said: “Despite the tough economic climate, LV=’s Pension Income Plus Annuity (PIPA) has weathered the storm and performed strongly.

“The return that PIPA provides clients, coupled with the strength of our with-profits fund which has outperformed the FTSE in 5 of the last 6 years, makes it a compelling proposition.

“Adviser feedback indicates increasing client interest in investment-linked annuities from those looking for an alternative to a standard lifetime annuity. As both the time spent in retirement and the cost of living rise, the chance to allow a client’s fund to benefit from possible growth becomes more desirable.

“In response to the greater need for flexibility in retirement, we expect to see increasingly more clients using all or part of their pension pots to purchase an annuity that offers them potential growth compared to a lifetime annuity.

“LV= has continued to innovate in the retirement market. The structure of annual investment returns providing advisers and clients with greater clarity over the bonuses they can expect to receive, making it one of the strongest offerings in the market.”

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Hi, my name is ali navid and I am an insurace professional and a sales trainer. This video will teach you how to get sales every single day in the field.Please like my new facebook page called success

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Employers say price is important, but aren’t making the most of the options available to them when it comes to healthcare for their staff, says Jelf Employee Benefits.

In research conducted by Jelf Employee Benefits at a recent seminar, the majority (81%) of companies said that price is a principle factor when they carry out their annual review of healthcare policies.  The service they receive from the intermediary is seen as much less important.

However, Jelf Employee Benefits says this demonstrates that employers aren’t appreciating the true value of good intermediary service.  Solutions are available that will help employers reduce and/or control costs, and intermediaries can provide the specialist advice to help employer’s locate these savings.

The same survey showed that employer awareness of a new tool in the healthcare kitbag: Corporate Deductible, was low, despite the option being available since 2010.  75% of respondents surveyed said they wouldn’t be making use of corporate deductible, or weren’t sure if they would.  And only 34% believe it will help control costs in the healthcare market.

Steve Herbert, head of employee benefits strategy for Jelf Employee Benefits says: ‘It’s this kind of area that really highlights the value of good advice from an intermediary.  The corporate deductible solution has been available for some time now, and whilst not suitable for all, intermediaries worth their salt are discussing all options with their clients to find the most suitable solutions and lowest cost.  Savings are there to be made, and this is a time when the relationship with the right intermediary is everything.’

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1st Central launches ‘Simply Rescue’, cost effective breakdown cover for the day to day problems faced by motorists.  The entry level product, fit for purpose in the current economic climate, provides roadside recovery and assistance and consists of cover for punctures, running out or filling up with the wrong fuel and recovery following an accident.

Prior to launching ‘Simply Rescue’, 1st Central conducted research to understand the buying patterns associated with the UK breakdown cover market.

Findings showed that owners of German vehicles are statistically least likely to buy traditional breakdown insurance compared to owners of vehicles manufactured in any other country. Owners of Italian & American vehicles are the most likely to buy, being 34% and 24% respectively more likely than their German owning counterparts. Perhaps surprisingly, women are only 5% more likely to buy breakdown cover than their male counterparts.  Age had more of an impact with 31-50 year olds being 7% more likely to take cover than those under 30, and this percentage rises to 16% for the over 50’s.  Age of the car was naturally a factor; brand new car owners are 45% less likely to take out cover, compared to an owner of a 5 year old car. Owners of diesel cars are 9% less likely to buy breakdown cover than petrol car owners.  Neither geographical region nor car colour influenced buying habits.

Tom Acott, head of business development at 1st Central commented: “Recognising current pressures on household budgets, we identified a gap in the market for a cost effective, entry level package. Simply Rescue offers drivers affordable peace of mind for the basic car troubles suffered, regardless of the age, make or country of manufacture of the car driven.  We continue to listen to our customers and strive to deliver against their needs.”

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The Lloyds TSB property sales report tracks home sales movements across England and Wales. The review is based on Land Registry data and covers the 500 largest postal towns and London boroughs. Property sales hotspots are defined as those locations that recorded a rise in home sales on an annual basis.

The number of towns recording a rise in home sales has more than doubled over the past year, according to research by Lloyds TSB. Almost two-thirds – 324 out of 500 (or 65%) – of the towns tracked in England and Wales were property sales ‘hotspots’ (i.e. towns that recorded a rise in home sales in the past year) in the first half of 2012. This was 115% higher than the 151 (or 30%) towns that recorded a rise in the first half of 2011.

North-south divide in location of property hotspots

60% of the towns that saw a rise in home sales in 2012 are in southern England1. This is in contrast to 2011 when towns in the north accounted for a larger share of the country’s property sales hotspots (58%).

Felixstowe records the biggest rise in home sales

The Suffolk seaside town of Felixstowe recorded the biggest increase in home sales in the first six months of 2012 with a 60% rise, followed by Brighouse in West Yorkshire (53%). In contrast, the two locations with the largest declines in home sales in the first half of 2012 are in Lancashire. Salford saw the biggest fall (-28%), followed by Leigh in Wigan (-27%). Overall, there were 282,086 home sales in England and Wales in the first half of 2012; 2.2% higher than in the same period in 2011 (275,953).

Areas with the biggest increase in home sales driven by better affordability…

House prices in the 10 towns that saw the biggest increases in property sales in the first half of 2012 stand at an average of 5.8 times local gross annual earnings.  This is nearly a fifth (18%) lower than the average multiple of 7.1 among the 10 towns that recorded the largest falls in property sales over the same period. There were notable exceptions to this trend with homes in Felixstowe (5.1) – the town with the largest rise in sales – less affordable than properties in Salford (4.2) – the area with the biggest drop in home sales over the past year. (See Tables 2 and 3)

 …amid lower house prices

House prices in the 10 areas that saw the biggest increases in home sales in the first half of 2012 have fallen by an average of 7% over the past four years.  This was bigger than the decline in the towns that saw the largest falls in home sales over the same period (-5%). As a consequence, the average house price in the 10 top performing areas (£186,940) is 8% (£15,334) lower than in the 10 worst performing locations (£202,274).

Suren Thiru, Lloyds TSB Housing Economist, said: “It is encouraging that the number of towns across England and Wales seeing a rise in home sales has increased significantly over the past year. This highlights the very mixed state of the housing market at a local level compared with the rather subdued picture at a national level. Many of the top performing towns are in areas where improved levels of affordability over recent years have helped support demand for those able to enter the housing market.”

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    The European Insurance and Occupational Pensions Authority (EIOPA) published a Report on Industry Training Standards applied by national competent authorities. The Report is part of EIOPA’s activities in the area of consumer protection and is related to the task of developing training standards for the industry as required by the Regulation establishing EIOPA.

    The Report summarizes the responses by national competent authorities (NCAs) during a mapping exercise carried out by EIOPA Members in March-September 2012. The report looks at different requirements as regards knowledge and ability for insurance intermediaries, laid down by NCAs.

    The Report concludes that knowledge and ability requirements are generally a combination of academic and professional experience, however in some countries academic qualifications can be waived if professional experience is long enough. In many Members States, the requirements for knowledge and ability are more stringent for insurance brokers than for insurance agents.

    The Report indicates that Member States have considerably different approaches towards the regular update of knowledge and ability requirements: in some Member States, there are no formal requirements at all; other jurisdictions request a minimum number of hours of continuous professional development courses per year and some countries require the passing of an updating exam.

    There is a limited experience amongst NCAs with receiving applications for mutual recognition of knowledge and ability requirements. Instead, the NCAs prefer to rely on existing Union legislation on professional qualifications for dealing with applications for mutual recognition.

    According to the Report, national sanctions for failure to possess adequate knowledge and ability vary from a refusal to register the intermediary to a withdrawal of the licence/authorisation. Some Member States have stricter sanctions such as suspensions/disqualifications, administrative fines or even imprisonment.

    The areas targeted in this report are also broadly in line with the areas which EIOPA currently expects the Commission to request EIOPA to work on in the future in terms of preparing delegated acts on professional requirements and guidelines on sanctions under the proposal for a recast version of the Insurance Mediation Directive (“IMD2”).

    As a follow-up to this report, it is envisaged that EIOPA will work on a Report on best supervisory practices applicable to industry training standards, with a view to publishing the report for public consultation in 2013. This Report on best practices may in turn be used to feed into work envisaged by the European Commission on delegated acts on professional requirements and guidelines on sanctions under IMD2 later.

    Gabriel Bernardino, Chairman of EIOPA, said: Ensuring distributors of insurance products have adequate knowledge and ability from the outset, understand the products they are selling to consumers and update their knowledge and ability on a regular basis, is crucial to enhancing consumer protection. This is particularly important given the increasing complexity of product offerings. This Report clearly shows a very wide diversity of national rules in place, arising out of the national implementation of the current Insurance Mediation Directive (IMD1). This publication provides us with a suitable evidence base for further work on enhancing the level of supervisory convergence in this area. It is also a very useful starting point for any follow-up work on IMD2”.

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      The European Insurance and Occupational Pensions Authority (EIOPA) has published technical specifications for the quantitative impact study (QIS) of EIOPA’s advice to the European Commission (EC) on the review of the IORP Directive. The advice recognises the importance of performing a QIS and remains conditional on the results of the study. 

      Between 15 June and 31 July 2012 EIOPA conducted a public consultation on the draft technical specifications for the QIS and received 117 responses from Belgium, France, Germany, Ireland, Italy, the Netherlands, Sweden and the UK as well as from several European and international organisations.

      41% of all the responses were submitted by employers, 24% by pension funds and the remaining 35% of feedbacks originated from other organisations, such as trade unions, insurers, actuarial consultants and asset managers.  The Occupational Pensions Stakeholder Group of EIOPA also submitted its opinion on the draft technical specifications (Link: https://eiopa.europa.eu/fileadmin/tx_dam/files/Stakeholder_groups/opinions-feedback/20120801-EIOPA-OPSG-Opinion-CP-003-12-QIS-TS-IORPII.pdf ).

      The consultation responses have been carefully considered and in some cases the technical specifications were adjusted in the light of the comments and suggestions received. EIOPA identified a number of areas in the technical specifications that needed to be further developed and tested in follow-up QIS exercises. A reasoned feedback on all the (non-confidential) responses has been made available on EIOPA’s website.

      The draft technical specifications have been submitted to the European Commission (The Internal Market and Services Directorate General). The EC will consider the contents of the draft technical specifications and – after possible amendments – will take ownership of the final technical specifications.

      The QIS exercise is expected to start in the first half of October and run until mid-December 2012. EIOPA plans to publish the results of the QIS in the second quarter of 2013.  The draft technical specifications, the responses to the public consultation as well as EIOPA’s reasoned feedback can be viewed here: https://eiopa.europa.eu/consultations/consultation-papers/2012-closed-consultations/june-2012/cp-0032012-draft-technical-specifications-for-the-qis-of-eiopas-advice-on-the-review-of-the-iorp-directive/index.html

      (Link: https://eiopa.europa.eu/consultations/consultation-papers/2012-closed-consultations/june-2012/cp-0032012-draft-technical-specifications-for-the-qis-of-eiopas-advice-on-the-review-of-the-iorp-directive/index.html )

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      Swiss Re’s latest sigma study reveals that global overall premiums declined 0.8% in real terms in 2011.  While non-life premiums expanded 1.9% on solid economic growth in emerging markets and selective rate increases in some advanced markets, global life insurance premiums fell 2.7%. Capital and solvency remained solid despite extraordinarily costly natural catastrophe events and historically low interest rates that lowered insurers’ overall profitability.

      Non-life premium growth continued in 2011
      Global non-life insurance premiums grew 1.9% in 2011. In the emerging markets, non-life premium growth remained robust at 8.6%, backed by strong economic expansion. The advanced markets recorded marginal 0.5% growth, supported by rate increases in some regions and lines of business. However, the unfolding recession in Europe and the weak economy in the US dampened demand for insurance cover. Daniel Staib, one of the authors of the study, says: “Non-life premium growth in the advanced markets has been supported by gradual rate increases in personal lines of business and in regions affected by large natural catastrophes. Despite the adverse environment in 2011, non-life insurers’ capital position remained sound, putting the industry in a strong position to grow steadily in the future.”

      Life premiums decreased 2.7% worldwide
      Life insurance premiums declined overall. However, many markets continued to show firm growth. In fact, the decline was primarily caused by a few large markets where insurance premiums fell steeply. In the advanced markets, premiums dropped 2.3% overall, even though premiums grew in the US and Japan, the two largest markets. In the US, premiums from new life insurance business rebounded, led by strong demand for variable annuity products with guarantees. In Japan, sales of individual whole life policies strengthened and annuity products recovered. However, the advanced markets suffered from a steep decline of in-force life insurance business in Western Europe.
      Tighter regulations on bancassurance distribution in China and India, the two largest emerging markets, led to an overall decline in emerging market life premiums of 5.1%. However, other emerging regions such as Latin America and the Middle East showed healthy, continuing growth, even though insurance penetration in the Middle East still remains very low compared with other emerging markets.
      Regarding profitability, Staib explains: “The profitability of the life insurance industry has stabilized, but remains low. Low interest rates remain the key issue for the life insurance sector, affecting investment returns and eroding the profitability of guarantee products.”
      Outlook: non-life insurance ready for take-off
      Going forward, moderate premium growth overall is expected in 2012. In non-life, robust growth in the emerging markets and hardening prices are expected to support premium growth. However, the turn of the pricing cycle will likely be gradual and limited to certain markets and lines of business.

      Slower economic growth in the advanced markets will weigh on insurance demand for life and non-life insurance. However, life insurance premium growth is set to revive in the emerging markets. In India and China, insurers are already adapting to the new regulations by consolidating their distribution channels and restructuring products. Elsewhere in the emerging markets, life premium growth is set to continue to benefit from rising income and increasing risk awareness. Savings products and credit life insurance in particular are expected to make further inroads into Latin America. Very low interest rates will continue to be a challenge for the entire insurance industry.

      “Last year was not a great one for premium growth, but 2012 should be a lot better as rates continue to improve in non-life markets and India and China return to robust growth in life markets,” says Kurt Karl, Swiss Re’s Chief Economist.

      This sigma study is the first public assessment of the performance of global insurance markets in 2011. The 84 markets where data or estimates for 2011 are available, account for 99% of global premium volume. Overall, the report is based on 147 insurance markets.

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      Fitch Ratings has published Amlin AG’s Insurer Financial Strength (IFS) rating of ‘A+’. Fitch has also published Amlin plc’s Long-term Issuer Default Rating (IDR) rating of ‘A-‘. Amlin plc’s subordinated notes are published at ‘BBB-‘. The Outlooks for AGG’s IFS and Amlin plc’s IDR ratings are Stable. Amlin Corporate Insurance N.V.’s (ACI) IFS rating is affirmed at ‘A’, and the Outlook remains Positive.

      The strength of Amlin’s capitalisation, as assessed by Fitch on a risk-adjusted basis, underpins the group’s ratings. Capitalisation based on this measure is expected to return to being commensurate with the current rating level at end-2012, following a reduction in shareholders’ funds at end-2011. The agency views the key short-term risk for Amlin’s capital position as the industry’s common risk of a level of catastrophic loss in excess of the historical norm, in 2012.

      The re-insurance industry incurred an unprecedented level of insured natural catastrophe losses in 2011, which led Amlin to report a combined ratio of 108% (2010: 89%), including 27 percentage points of catastrophe losses. While 2011 results fell short of Fitch’s expectations, Amlin’s cross-cycle performance metrics remain commensurate with the published rating level. The agency also anticipates that a recovery of earnings through 2012 will restore performance metrics to historical levels. This expectation is reflected in the Stable Outlook.

      Fitch considers that the consistent level of cross-cycle profitability achieved by Amlin in recent years is the result of a combination of its strong franchise, underwriting discipline, prudently administered investment strategy and solid management. The agency considers that Amlin is potentially better placed than some peers, to weather a protracted period of low investment returns, noting that the insurer has historically used this source of income to supplement, rather than drive profitability.

      The Positive Outlook on ACI’s IFS rating indicates that Fitch would consider upgrading ACI if the integration process in the Amlin Group is successfully finalised and if the company were able to restore profitability and sustain a combined ratio below 100%. The ability for Amlin to successfully execute its strategic plan to develop and diversify its business by geography and insurance class is viewed as an evolving rating factor. While all operating companies are considered to be core, the scale of the ACI acquisition in relation to Amlin’s existing business highlights the importance of achieving its successful integration, as well as the potential cost if this is not achieved. Fitch views Amlin’s current senior management team as being the key factor in determining the outcome of this venture.

      Fitch considers that an upgrade of Amlin’s ratings is unlikely in the near term. The continued expansion and development of Amlin’s operating profile, resulting in the successful entry into, and gains of meaningful share of new markets, while maintaining leading positions within existing markets, is viewed as the most likely trigger. Fitch’s measure of risk-adjusted capitalisation and the insurer’s earnings profile would also need to be commensurate with the higher rating.

      A downgrade may be triggered by a prolonged weakening of Fitch’s measure of risk-adjusted capitalisation, although any downgrade would consider the insurer’s ability to raise fresh capital in the event that it was required, following a further significant loss. A combined ratio consistently above 103% or fixed charge coverage consistently below 5x could also lead to negative rating pressure.

      Amlin is a specialist international non-life underwriting group focusing on a range of commercial and reinsurance business classes, with 2011 gross written premiums (GWP) totaling GBP2.3bn (2010: GBP2.2bn). The group is organised as a small number of underwriting businesses: Syndicate 2001 represents Amlin’s Lloyd’s operation, writing more than 30 re-insurance classes through four main business units; Amlin AG contains Amlin Bermuda, an international reinsurer and Amlin Re Europe, established in 2010 to write non-life treaty reinsurance in Continental Europe; Amlin Corporate Insurance (ACI), writing marine, commercial property and liability insurance in the Benelux region. Amlin plc is the ultimate UK-domiciled holding company of Amlin Group.

      The rating actions are as follows:

      Amlin AG: IFS published at ‘A+’; Outlook Stable

      Amlin Corporate Insurance N.V.: IFS affirmed at ‘A’; Outlook Positive

      Amlin plc: Long-term IDR published at ‘A-‘; Outlook Stable

      Amlin plc subordinated debt published at ‘BBB-‘

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      Tell Me About Yourself? Top 10 Interview Questions by Kary York, Insurance Resourcing (Servicing the greater Seattle, Washington and Portland, Oregon – Pacific Northwest Region)

      About Insurance Resourcing:
      Insurance Resourcing was created to address the changing hiring needs of the insurance industry. We specialize in three areas: permanent contingent and retained search, specialized industry consultants who are available for short term assignments, and referral alliance programs targeted to help you build new revenue streams.

      Contact us to discuss hiring needs or career opportunities, call (425) 298-0278 Seattle Area (PST USA) or email via our website.

      Kary York, Insurance Resourcing: http://www.insuranceresourcing.com
      Web: http://www.InsuranceResourcing.com
      Twitter: http://www.twitter.com/iresourcing
      LinkedIn: http://www.linkedin.com/company/2575992

      Specialties: Insurance industry consulting and recruitment services

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      Commercial lines underwriting specialist Arista Insurance has strengthened its North East offering with a new appointment and promotion at its Leeds office, which opened last year. Adam Hirst joins as underwriter and Pamela O’Loughlin has been promoted to the role of senior fleet underwriter.

      In his new role Adam will be responsible for commercial underwriting, developing broker accounts and helping to grow Arista’s operation in the North East. He will report to branch manager Neil Wormald. Prior to joining Arista, Adam was a commercial underwriter at Allianz Commercial, also in Leeds.

      Pamela O’Loughlin has been with Arista for over 2 years. Her promotion is in recognition of her contribution to the successful launch of the Leeds office last year and her 11 years’ industry experience.

      Chief executive Charles Earle commented: “This appointment and promotion supports Arista’s growth strategy and highlights our commitment to maintaining service excellence to brokers during a period of expansion. Arista is actively recruiting and developing talent to expand the business and broker access to decision makers with expert local knowledge.”

      In April 2011 Arista announced its target for 2014 of achieving £120 million in gross written premiums.

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      We take you through fundamentals of Insurance Industry in this informative video. Very useful to build basic understanding of the industry, understand its key drivers, business model, products and services and revenue model. Great video to help gain domain expertise in Insurance Industry.

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      This video was created by after I have had several Insurance agents from around the company inquire as to how I was being successful in the Insurance Business. I developed and Instituted this survey as a marketing tool, and a way to prospect for Insurance clients, and set appointments. I started doing this in August of 2011. Many agents are spending a ton of money on shared leads, and other expensive marketing tools. This seems to be the most inexpensive approach for me, and other agents.

      For More Information about how I can help Independent Insurance Agents send me an email at mikematosinsurance@yahoo.com.

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      Kames Capital will strengthen its property fund management proposition by recruiting part of a leading specialist property multi-manager team from ING REIM.

      The move marks Kames Capital’s first major announcement since it rebranded from AEGON Asset Management last month and is consistent with the business’s stated strategy of building scale in the selected specialisms it offers in the third party marketplace, namely property fund management, fixed income, UK equity and multi-asset investing.

      Mark Bunney, Matt Day and Tony Yu join Kames from the ING REIM UK team that is responsible for more than £2billion assets including the Osiris Property Fund, one of the biggest real estate fund of funds in the UK, as well as a number of other institutional mandates.

      Bunney and the team have over 30 years experience and will join Kames Capital’s existing property fund management team headed by Phil Clark. The Kames Capital team currently run a number of funds including the Kames Active Value Fund and the Kames Target Healthcare Fund which specialises in high-end care and acute nursing care facilities.

      Reporting to Kames Capital’s head of property investment Phil Clark, the new team will work with the existing team in supporting and developing a comprehensive range of indirect property investments.

      Kames Capital chief executive Andrew Fleming says: ‘These appointments mark a major milestone in the evolution of Kames Capital. Mark and his team are recognised as leaders in the field of property investment fund of funds and their appointment is consistent with our strategy of building scale in our chosen investment specialisms which includes property.’

      Clark says: ‘Capturing such a well respected team, who are among the leaders in the property fund of funds market is an outstanding addition to our business and I am looking forward to working with Mark and the team as we look to enhance our indirect property proposition.’

      Source : Kames Capital

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      After a major operation in London last week targeting uninsured drivers, the MIB has taken the highest number of calls to their dedicated police helpline since it has started in 2007. A total of 558 vehicles were seized and 76 arrests were made in London in one day.

      1000 MPS officers were posted in a co-ordinated series of operations, targeting uninsured drivers, who are more likely to be involved in criminal activity, five times more likely to be involved in collisions and less likely to have vehicles in a road-worthy condition. Roadside check points using automatic number plate recognition (ANPR) were used at number of locations in London, while officers actively pursued uninsured drivers using fixed cameras or routine number plate checks.

      Metropolitan Police Commissioner Bernard Hogan-Howe and the Mayor of London, Boris Johnson launched the operation and used a pile of crushed cars to demonstrate the consequences of being uninsured.

      Over 1000 calls were made by the police across the UK to MIB’s contact centre, of which more than 500 were made roadside from the Met. The Motor Insurance Database (MID) which holds records of over 36 million insurance policies, was instrumental in assisting MIB’s police helpline service with Operation Reclaim and identifying uninsured motorists.

      Neil Drane, Head of Database Services at MIB said: “We were pleased to support the Met and other police forces across the country in tackling the menace of uninsured driving. At times it was a real challenge with the calls coming in to our contact centre but  Operation Reclaim is proof of the crucial role that the MID plays in assisting the police with on-road enforcement and keeping our roads safe. We are continually learning how to improve things and look forward to working with the Met and others to repeat this soon.

       “Combined with new legislation under the Continuous Insurance Enforcement (CIE) scheme, which is the systematic comparison of the DVLA registered keeper database and the MID to identify potentially uninsured vehicles – it means that there is nowhere to hide for uninsured motorists.”

      Since the police have had the power to seize vehicles with no insurance since 2005, they have taken possession of approaching 900,000 uninsured vehicles. It is estimated that uninsured and untraced drivers kill 160 people and injure 23,000 every year. Uninsured driving also adds around £30 a year to every motorist’s insurance premium amounting to more than £500m a year in additional premiums.

      Leader of the operation, Commander Steve Watson from the Metropolitan Police said: “It is our intention to really step up our levels of enforcement activity in respect of uninsured vehicles and last week’s operation was the first of many which are now being planned. Given that the vast majority of uninsured drivers are also habitual criminals, this is a really targeted way of bringing the police into contact with the type of person who will use vehicles for all manner of unlawful activity. As uninsured drivers are also five times more likely to be involved in collisions, there is also a really important road safety aspect to this type of initiative. I am particularly grateful to the MIB for their invaluable support in assisting the Met to make such an impact. We will be working together to coordinate our resources even more effectively for future operations.”

      Source : MIB Press Release

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      The IMF’s European chief stated that the international fund is not considering the purchase of bonds in the European debt markets in cooperation with the Euro zone bailout.  

      “We do not have any additional requests for support from European members and we are not contemplating any market involvement with the EFSF,” Antonio Borges, head of the IMF’s European Department said in a statement. The European Financial Stability Facility, or EFSF, is the euro zone’s EUR440 billion bailout fund.

      Earlier Wednesday, Borges said the IMF could intervene in the secondary bond markets alongside the euro-zone’s bailout fund. Under such a proposal the IMF would create a special purpose vehicle to buy bonds under stress in secondary and primary markets, Borges said at a press briefing in Brussels, Belgium.

      Borges said in his later statement that current fund resources cannot be used to intervene in bond markets directly. Any alternative financing such as bond-buying “would require a different legal structure and the use of a different source of financing,” he said.

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      A decision by the FSA to begin the implementation of Solvency II requirements in 2013 despite the expected EU-delay until 2014 would result in significant savings for the UK insurance industry according to new research by Marketforce.

      Initial results from the survey, which will be launched in full at Marketforce and the IEA’s 11th annual The Future of General Insurance conference in November, show that 75 per cent of the insurance industry expects to incur additional costs in the event of an extension to the Solvency II deadline until January 2014. Furthermore, whilst the industry broadly supports the aims of the new regulations, 73 per cent do not believe that the overall costs of implementation will be proportionate to the benefits that the new measures will achieve.

      Tom Woolgrove, Managing Director of Personal Lines at RBS Insurance said:  “There is an understandable concern in the industry over the implications, both in terms of opportunity costs and real costs, of having prepared for compliance a year early. Solvency II will deliver tangible benefits for the UK market, but we need improved clarity over the timescales and expectations of regulators to ensure current implementation efforts remain relevant and to avoid the need to replicate efforts in the interim period.”

      Amanda Blanc, CEO, AXA Commercial said:   “AXA is fully supportive of Solvency II and already manages its business on an economic basis with a strong internal model in existence. We are making good progress on our transition to the new regime. However, we are disappointed with the extended implementation deadline as it creates ongoing uncertainty around the FSA’s expectations and leaves material issues outstanding.”

      With 73 per cent of UK insurers uncertain that the cost of implementation will be proportionate to the benefits that the new measures will achieve, it is not surprising that the industry is openly opposed to a delay which would penalise them for being on-schedule for implementation.

      A decision by the FSA to enforce the introduction of the Solvency II rules as of January 2013 would be welcomed by UK insurers, many of which have remained committed to the initial deadline from the outset.

      John O’Roarke, Managing Director, General Insurance, LV= said:  “After such a lengthy period of preparation, the prospect of a deferral to 2014 is unhelpful.  At LV= we have decided to press ahead and operate on an ‘as if’ Solvency II basis from January 2013 in order to sustain our focus on the programme and to minimise costs.”

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      Tropical Storm Talas is the season’s 12th named storm, the seventh severe tropical storm and the fifth typhoon of the 2011 Pacific typhoon season. Insured losses are estimated to be between JPY 12 billion (USD 150 million) and JPY 46 billion (USD 600 million).

       “Tropical Storm Talas came ashore at Kochi Prefecture on Japan’s Shikoku island—the smallest and least populated of the country’s four main islands—at roughly 6 am local time Saturday, September 3,” said Dr. Peter Sousounis, principal scientist at AIR Worldwide. “Overnight on Saturday, the slow-moving storm crossed the southern island of Shikoku and the central part of the main island of Honshu, passing near the cities of Kobe, Osaka, and Kyoto, all the while delivering heavy rain. Record rainfall fell on central and western Japan and wide sections of the country experienced damaging winds. On Monday, September 5, Talas finally moved offshore into the Sea of Japan.”

      Though a weak storm at landfall, Talas was unusually large, with tropical storm force winds extending outwards up to 600 kilometers. According to current measurements from Tropical Rainfall Measuring Mission satellites, total accumulated precipitation of 100-200 mm impacted much of Japan, while higher amounts of 1,600 mm impacted a mountainous area in the prefecture of Nara. The storm was record-setting: it broke Japan’s previous rainfall record (1,322 millimeters, set in September of 2005 in a town in Miyazaki Prefecture) and exceeded the yearly average of precipitation that falls over the city of Tokyo.

       “After making landfall, Talas moved into an area of moderate wind shear (15-20 knots); this shear—located along the western edge of a deep-layered subtropical ridge—slowed the storm considerably,” continued Dr. Sousounis. “Since Talas was slow-moving, taking a full day to track across Japan, which is almost twice as long as had been forecast, its heavy precipitation was particularly damaging. Indeed, the decreased forward speed alone can account for an increase in precipitation totals by a factor of two, in certain locations. Further exacerbating the precipitation damage from this storm was an elongation of its cloud mass to the northeast, as well as its interaction with an approaching mid-latitude front.”

      The damage picture from Talas continues to emerge. Japan’s Fire and Disaster Management Agency (FDMA) reports that roughly 3,000 homes have experienced inundation above the first floor level and more than 13,000 homes have experienced inundation below the first-floor level.

      Dr. Sousounis commented, “The majority of damage from Talas has been on the Kii Peninsula, in central Japan. The peninsula includes Wakayama Prefecture, the location of most of Talas’s fatalities so far, and Okayama Prefecture, located just west of the cities of Kobe, Osaka, and Kyoto. Okayama Prefecture, which was in the direct path of Talas, has sustained the heaviest property damage. In Tokyo, to the northeast of Kii Peninsula, roads have been flooded.”

      Though certainly damaging, Talas is not as destructive (nor as deadly) as another “wet” typhoon to come ashore on Shikoku Island in recent history; in 2004, Typhoon Tokage, which tracked east of where Talas tracked this weekend, caused 95 deaths from high winds, flooding and mudslides. The storm also flooded more than 14,000 homes above first floor level, according to the FDMA. Losses from Talas are not expected to be as high as those from Tokage, which AIR estimates would cause insured losses exceeding JPY 186.9 billion if it were to occur today.

      As Talas approached Japan late Friday night (local time), the country’s mountainous coast enhanced precipitation on the north and east sides of the storm.

      According to AIR, Japan has strict and well-enforced construction codes; modern structures withstood Talas’ forecast wind speeds with minimal damage, again, making the primary concern from Tropical Storm Talas flood damage. Flood damage in Japan is not automatically included in wind policies. In typical flood policies here, a specified payout is made only when the actual damage falls within a specified range.

      According to AIR, the vulnerability of buildings to flood damage varies by construction type. For a given flood depth, a residential wood-frame building is expected to sustain more damage than a residential masonry building. Concrete construction is less vulnerable to flood than steel or masonry. Commercial and apartment buildings usually have stronger foundations than residential buildings, and are thus better able to resist flood loads.

      Flood vulnerability also varies by building height. Because damage is usually limited to the lower stories of a building, high-rise buildings will experience a lower damage ratio—the ratio of the repair cost and the total replacement value of the building—than low-rise buildings because a smaller proportion of the building is affected.

      Due to Talas’s unexpected slow forward motion across Japan, precipitation and the resultant flooding were more significant than had been forecast last week.

      Source : AIR Worldwide

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      “Never forget!” was the motto of the first responders who rushed to the burning World Trade Center on 9/11, but 10 years  on some say they have been abandoned by their country to fight cancer and  mounting medical bills.   

      Once hailed as heroes, thousands now say they have fallen victim to a host of ailments — from asthma to cancer — due to their exposure to the toxic debris pile left by the Twin Towers’ collapse on September 11, 2001.

      Compensation funds set up by the US government do not recognize cancer as a condition caused by exposure to the World Trade Center clean-up operation, and a political battle is brewing.

      “This is almost 10 years later. I mean, how do you praise guys after 9/11 and then just turn your back?” asked Jeff Stroehlein, 47, a retired New York City firefighter who is battling brain cancer after working at Ground Zero.

      Stroehlein and others with cancer have no doubt that their illnesses took root a decade ago as they scoured the debris for human remains and helped clean up the mess for time spans ranging from weeks to nearly a full year.

      But until last week — when a study in the Lancet showed that New York City firefighters who rushed to the doomed twin towers were 19 per cent more likely to have cancer than their non-exposed colleagues — there was scant scientific data to back up their claims. In July, the government’s first periodic review of cancer as part of the World Trade Center Health program found that there was “insufficient evidence” to add cancer to the list of WTC-related health conditions.

      “Very little has been published addressing the association of exposures arising from the September 11, 2001, terrorist attacks and cancer in responders and survivors,” said the WTC Health Program report.    According to the Fealgood Foundation, an advocacy group for first responders run by John Feal, a construction worker who was injured at the site, 1,020 of the estimated 40,000 WTC workers and volunteers have died from health complications.

      A total of 345 members of the fire department and 45 police officers have since died from cancer, surpassing the death toll on the day itself when 343 firefighters and 23 police lost their lives, Feal said.

      First responders now have revived hope for a reversal in the US government’s decision that cancer would not be included in a list of health problems paid for by the US government in recognition of their service.    “The importance of its findings cannot be understated,” said Feal, referring to the Lancet study led by David Prezant, chief medical officer of the Fire Department of the City of New York.

      “This study now allows all 9/11 First Responder advocates to argue that these various forms of cancer should be monitored and treated in accordance with the James Zadroga Health & Compensation Act,” he said of the legislation named for a fallen New York City police officer who died at age 34 of cancer.

      Under the Zadroga Act, more than $4 billion has been allocated to pay for medical treatments and doctors’ visits for asthma, post-traumatic stress, anxiety, back pain and carpal tunnel syndrome.

      One major study of nearly 10,000 Ground Zero workers and residents released about five years after the attacks found that 70 percent of them faced new or worsening lung problems after 9/11.

      In New York, about 5,000 responders regularly see doctors at the World Trade Center Medical Monitoring and Treatment Center on Long Island as part of an effort to track their health over time.

      “Most often what we see are the breathing problems — the sinus issues, the heart burn issues and mental health issues, those are quite common,” said one of the doctors, Vrajesh Patel.    Some of the patients have medical insurance, others do not. Some who have fallen sick and lost their jobs face doctors’ bills in the tens of thousands of dollars, said Feal.

      In Stroehlein’s case, he has insurance coverage but it does not include all his medication, so his prescriptions can cost hundreds of dollars each month.

      For heavy equipment operator John Devlin, 50, who worked at the pile for almost 10 months, the problems began a few weeks after the attacks with the hacking that many workers experienced, coined “World Trade Center cough.”    In 2009, he was diagnosed with stage four throat cancer. Haggling with insurance carriers, hospital billing departments, and state officials in charge of worker’s compensation has become a regular part of his struggle to survive.

      “I promised God, when I was dying in the hospital and I was in the cancer ward for two and a half months, that if I ever got out and had the ability to speak that I would stand up for my brothers and sisters who were down there,”  he told AFP.

      “The government said that the air was clean. They lied to us.”

      New York 5, 2011 (AFP)