March 2015


WORDSTM is the e-newsletter of Worldwide Risk SolutionsTM, a UK based commercial organisation which has the sole objective of facilitating global business strategies and business development in the international insurance industry. For more information, please go to

WORDSTM – March 2015

Comment of the MonthRecently, during a presentation, we were asked what is really different about insurance as one of the financial services industries. The answer is: an insurance contract is based on the principle of utmost good faith (uberrima fides). Most commercial contracts are subject to the principle of caveat emptor (let the buyer beware). Under these contracts, there is no need to disclose information which is not asked for. Insurance contracts are different in that they are based on facts which are within the knowledge of the insured, but of which insurers will not generally be aware.

As the insurer is at a disadvantage, the law imposes a duty of utmost good faith. The principle of utmost good faith requires anyone seeking insurance to disclose all relevant facts. These are facts which would influence the judgement of a prudent underwriter in fixing the premium or determining whether they will take on the risk. Where material non-disclosure can be proved, a contract can be voided.

In February, the United Kingdom enacted the Insurance Act 2015 which replaces the Marine Act 1906 and it will come into force in August 2016. The Marine Act 1906 had provided the framework for all commercial insurance purchased in the UK for over a century and was regarded by many as out of touch with modern business and had been in need of reform for several years.

The new act has rules tackling disclosure issues and has been hailed by the International Underwriting Association (IUA) and the Lloyd’s Marketing Association (LMA), saying it will impact insurers’ day to day operations, consumer policy wordings and the consequences of fraud. The Association of Risk and Insurance Managers in Industry and Commerce (AIRMIC) had described the old rules as draconian and had enabled insurers to avoid paying apparently legitimate claims.

This new law in the United Kingdom provides an example to many other jurisdictions on how insurance legislation must change and adopt the behaviour expected of them in the 21st century. It will be interesting to see if and when other countries feel they need to follow this lead.

Talk around the BazaarWhat has SNS Reaal done in the Netherlands? In the United Kingdom, what is a QROPS? Have you read the Captive Review “Employee Benefits Report 2015”? Were Catastrophe losses up or down last year? What is the latest award Guernsey has won? We keep you abreast of the latest developments with our comments and hyperlinks.

WORDSTM Personality of the Year 2013, Robert Benmosche, RIP.

Sadly, we have seen the inevitable news that Robert Benmosche, former President and CEO of American International Inc, has passed away. Many, many people have spoken highly about his qualities and his achievements. Somehow, he managed to find the time to do a heck of a lot. He was a fine example to us all.

Spotlight – In international business, almost every market around the world does things in a different way. This often leads to misunderstandings and unfulfilled expectations. However, different does not need to mean difficult and knowledge of the needs and characteristics of specific geographic markets is an advantage to those who are active in the global economy. These articles help you understand different aspects of the insurance industry around the world, enabling those who do business there to feel more “at home, abroad.”

In our January issue, we introduced our readers to the WORDSTM Personality of the Year 2014, Martin Cantor of Cantor Atkin ( who has taken the frustrations out of the backroom and provided access to the Lloyd’s Underwriting Room successfully on numerous occasions. People have asked about this process of becoming a Lloyd’s broker and of course, only by doing it yourself can you really experience the misty ins and outs which are involved.

Martin has very kindly provided an overview of some of the issues and we are very pleased to publish this here. Any comments or questions should be directed to him at

The Presse Internationale des Assurances – “PIA”

Our trustworthy  Portuguese PIA member, APS – Associação Portuguesa de Seguros, has picked up some news on the European Commission’s consultations on the Capital Markets Union. This can be accessed at

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  • · Australia
  • · Canada
  • · Denmark
  • · France
  • · Italy
  • · Mexico
  • · Netherlands
  • · Spain
  • · United Kingdom
  • · USA

We continue to work with a growing number of networks to improve and expand their international capabilities.  If you have not already spoken to us about expanding your international markets, now might be the right time for us to conduct a feasibility study. For more information, please see the contact details below.

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As part of the on-going service of assistance to our friends around the globe, Worldwide Risk Solutions is ideally placed to help unlock the mysteries of the Lloyd’s and London insurance market. With new products and market entrants, there is always something new going on. In many cases the solution to your problem is around the corner. Send us an e-mail and we can start the process of finding that elusive solution

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Worldwide Risk Solutions has access to a wide client base of internationally oriented organisations. Why not utilise this knowledge and experience? We can conduct a swift appraisal of your global activities or answer any questions you may have about international developments. Call +44 (0)1444 450 919 or send us an e-mail and we will respond immediately. And should you be passing through London, please let us know.

George Worsley, Editor
WORDSTM a member of

Telephone +44 (0)1444 450 919



Information appearing in WORDSTM is checked for technical accuracy but is not intended to provide a basis of knowledge upon which advice can be given. Worldwide Risk SolutionsTM accepts no responsibility for any loss occasioned to any person acting or refraining from action as a result of the material included in this newsletter.

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