May 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 – May 2015

Comment of the MonthAfter months of being told it would never happen, people are now hearing that Greece may soon drop the euro and possibly even leave the European Union. At the time of writing the country has only a few weeks before it goes bust. There is not enough money to repay loans from the International Monetary Fund or even pay many government employees. This is a very serious situation and EU leaders are devoting countless hours and rollercoaster emotions to finesse a solution with seemingly intransigent Greek ministers will not consider.

When it came to power in January, the Syriza party had promised voters, lenders and the EU that it would resolve the country’s financial crisis. A further message to voters was that the country would not be dictated to by international financial markets . One of the issues has been to tackle or not to tackle the notoriously  ineffective tax collection system.

The Syriza party has a dilemma: renege on election promises and devise economic and fiscal measures which will satisfy future lenders or leave the Eurozone and maybe also the EU and subject the country to total misery with terrible prospects for the unemployed and the unpaid.

The issue with tax collection is partly due to the complicated way it is structured. As an example, Insurance Premium Tax is sometimes 20% but it can be 10% or even nil; an additional Insurer Tax for pension funds (TEAIT) can be 1% or more, up to 5%; the general rule for non-Life policies is that premium tax is 2% but there are many exceptions; the Private Life Insurance Guarantee Fund is taxed at 1.5% except where it varies between 0.3% and 1%. While you do not necessarily need a Cray computer to handle these, other countries do it far better, thus minimising the chances of error or abuse.

One way to avoid a Grexit and pacify the voters is to take away the grey areas, simplify the systems where that can be done effectively and efficiently and set a realistic timetable which can be monitored to the international financial community’s satisfaction.

Talks around the BazaarWhat is the CMA in Oman? What does CCRIF stand for? Who is the Lloyd’s general representative in Finland? 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.”

Wherever you look in the insurance press these days, you will come across Cyber Risk. A recent survey has placed it within the top ten risks threatening global firms; it is currently in ninth place and will rise. As computer and internet technology become more sophisticated, so will the risks and hazards of misuse and abuse increase. Cyber attacks have affected individuals, small firms, large firms, multinational corporations and government agencies. Little wonder, then, that brokers, carriers and risk management associations are pulling together to address the challenge. Even governments such as Singapore, US Congress and the UK, no less, are getting involved.

In March, a report was published on the joint initiatives between the UK government and the insurance sector to tackle cyber risk – see the attached press release issued on the 23rd March

There are calls for a comprehensive and functional regime of global cyber security and at ground level, the right questions in assessing risk need to be identified. But what actually constitutes cyber risk, what forms of insurance are there to protect oneself against such risks and how does one manage cyber risks? Two peerless organisations have joined up to address these issues and we are very pleased to provide links to their reports. This one document is available on the website of both of them. Lloyd’s ( and the Association of British Insurers (

We encourage our readers to study these and any questions or comments should be addressed to Lisa Hunter, Senior Manager, Media Relations, Lloyd’s, at or Malcolm Turling, Chief Media Relations Officer, ABI, at

The Presse Internationale des Assurances – “PIA”

The World Economic Forum in Davos saw the launch of a new microinsurance consortium and venture incubator, and it has attracted big name participants and considerable attention. So why is it being launched – and will small ticket business bring rich rewards? Our illustrious English PIA member, Post ( has reviewed this and their article “Starting Small” can be accessed here.

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  • · Australia
  • · Brazil
  • · Canada
  • · Costa Rica
  • · Denmark
  • · France
  • · Guernsey
  • · India
  • · Indonesia
  • · Netherlands
  • · Norway
  • · Philippines
  • · Portugal
  • · 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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