April 2015

AN ESTABLISHED AND SUCCESSFUL FORCE in International Insurance

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 www.worldwiderisksolutions.com

WORDSTM – April 2015

Comment of the MonthAs readers will find elsewhere in this edition, insured losses from man-made disasters are exceeded by uninsured losses from man-made disasters – not to mention natural catastrophes. There are various reasons why some losses are not recoverable from insurance, some being: voided or expired policies, insufficient limits or conditions of coverage, lack of capacity, unwillingness of carriers to provide coverage, etc.

During the second quarter of this year, we are going to find out how many billions of profit many carriers earned last year. Yes, shareholders will do all right, thank you. And so will senior executives as they award themselves very nice bonuses. The recent announcement by a bank in the Netherlands withdrawing a sizeable salary increase for its top management will prove to be an exception to the rule.

In many countries, insurance education institutions whinge about comparisons with professions such as lawyers or accountants, merrily ignoring the fact that at the forefront of those two aforementioned disciplines (and others), the interaction, the cut and thrust, the application of knowledge, skills and expertise may only be carried out by qualified practitioners. In principle, any old Tom, Dick or Harry can be an insurance person: professional qualification is not a legal requirement. Fortunately, experience has shown us that underwriters are special individuals as are many other experts and specialist who ply our trade.

Instead of playing catch-up with other professions and getting nowhere, people in the insurance industry should look elsewhere to make a difference and be seen to make a difference. Insurance should accept the challenge of narrowing the gap between insured and uninsured losses around the globe. In fairness, we should add that war-related losses are rarely insured and looking at the increase of violence and terrorism, it is up to another group of professionals – politicians and diplomats – to settle things down. But that is a gamble and those who studied Principles of Insurance will remember that the definitions of insurance and gambling are two different things (Chapter One, page one, wasn’t it?).

Talk around the BazaarWhat has Steadfast done in Australia? In the United Kingdom, what has Pool Re done for the first time in decades? What is so special about the 49% rule in India? How many large ships were lost last year? We keep you abreast of the latest developments with our comments and hyperlinks.

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.”

As referred to in Comment of the Month in our previous edition, in August 2016 a new commercial insurance act will take effect in the United Kingdom. Insurers will no longer be able to hide behind what have been called arcane and draconian rules enabling them to avoid paying apparently legitimate claims. The Insurance Bill tackles disclosure issues: new rules on warranties will apply and policy conditions will have to be re-written.

The British Insurance Brokers’ Association, BIBA (http://www.biba.org.uk/AboutBIBA.aspx) has published an article on the Insurance Bill for the benefit of all but, of course firstly for insurance brokers, in The BIBA Brokers’ Guide to Key Legal Developments 2014/2015 which also discusses many other newsworthy items.

This article can be accessed here and any questions or comments should be addressed to BIBA’s charming Head of Communications, Leighann Forsyth at forsythl@biba.org.uk

The Presse Internationale des Assurances – “PIA”

Our friendly Czech PIA member, Pojistný obzor has published a good overview of the local market. Their Insurance Horizon, here, is mainly in Czech but pages 45 and 46 have an interesting article in English.

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WE ARE CURRENTLY DISCUSSING PROJECTS IN THE FOLLOWING MARKETS AND ARE REGULARLY BEING ASKED TO ATTEND THE ANNUAL CONFERENCES AND MEETINGS OF THE MAJOR NETWORKS AS WELL AS ASSIST INSURANCE ORGANISATIONS IN:

  • · Australia
  • · Belgium
  • · Canada
  • · Denmark
  • · France
  • · Hungary
  • · Latvia
  • · 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 www.piassurance.eu

Telephone +44 (0)1444 450 919
E-mail words@worldwiderisksolutions.com

Website www.worldwiderisksolutions.com

Disclaimer

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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