July 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 www.worldwiderisksolutions.com

WORDSTM – July 2015

Comment of the MonthAt the time of writing, Greece is on the verge of dropping the euro and even exiting the European Union. One disaster is likely to compound the other. This is bad news for everyone. There is, however, a lesson to be learned – hopefully not the hard way.

Greece has been living beyond its means for too long and none of the political parties have been willing or able to come up with a recipe to resolve this which would receive electoral approval. In the good old days before political correctness gave weaklings a voice, the parent would pick the child up by its breeches and stick it face forward in the corner or strap it into the bother chair and it would stay there until it changed its tune. Translate that into contemporary examples in Greece and this would mean taking the drastic step, for example, of taking hairdressers off the list of hazardous professions which allows them to retire on a full pension at age 50. The current government would cringe at changing this and Greece’s potential lifelines from the International Monetary Fund, the European Commission and the European Central Bank will, therefore, stay away.

Greece needs a strong and resourceful team to pull the country out of the crisis and stick the hairdressers, to cite just one of many cases of badly arranged financial and taxation deals, into that bother chair or the corner and there they will stay until they agree to become part of the solution. For some, this could lead to hardships but many 50 plus pensioners in Greece go out and get another job and do not pay income tax…..

The lesson for the Greeks is that it would have been better to have put the house in order years ago. Prevention of losses which could occur later is a principle of insurance. Now that losses are around the corner, people should be planning to cope when those losses occur: loss mitigation – another principle of insurance.

Editor’s Note: We do not revel in the discomfort of the many people in Greece who will be suffering financially in the months and even years to come. What we have said is what readers of daily newspapers and web-based commentaries will be seeing in the weeks to come. What a pity.

Talks around the BazaarWhat do you do when you are about to get flooded out? Where do you find information on building codes in Albania? What does the new Indian insurance pool not cover? 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.”

Is it a coincidence that small islands or overseas territories are often regarded as ideal for special financial and insurance solutions such as captives, tax havens, protected offshore jurisdictions and the like? Bermuda – population 65,000, Caymans – population 56,000, Guernsey – population 65,000 and Malta – population 445,000, slightly bigger. Another location with a stable government, a supportive economic and fiscal regime, low corporate tax and no capital gains tax or VAT is Gibraltar. And its population barely reaches 30,000.

Gibraltar has strong ambitions to become the Insurance Linked Securities jurisdiction of choice within the European Union. (Insurance-linked securities – ILS – are financial instruments whose values are driven by insurance loss events – typically hurricanes, windstorms and earthquakes and are the result of the process of convergence between the capital markets and the insurance industry. Catastrophe bonds (or cat bonds) are a segment of the ILS market.) Gibraltar’s ILS Guidelines have been prepared in line with Solvency II so as to be fully compliant based on the most up to date European Insurance and Occupational Pensions Authority (EIOPA) position. Gibraltar offers a new European Union EU domicile for cat bonds, sidecars and collateralised reinsurance based ILS transactions.

This can all get rather complicated and recently Intelligent Insurer teamed up with Gibraltar Finance to put together a special report on “Gibraltar: the EU and ILS domicile of choice” and this can be accessed here http://www.intelligentinsurer.com/page/gibraltar-the-eu-insurance-ils-domicile-of-choice. We are grateful to Intelligent Insurer to be able to provide the link to this clearly-written document and any questions should be directed to David Ward-Penny, commercial manager, at dward-penny@newtonmedia.co.uk

Special Mention – We use our newsletter, WORDS, to get interesting information in front of perceptive and decisive professionals who are often challenged by the relationship between time and priorities. For many people in the communication world, deadlines are the goal but also a pain in the neck. What do you do if you know what you want to say but just do not have the time to ponder over a word, a turn of phrase, put together a keynote speech by yesterday?

One solution is to call in the expert: Gale Strategic Communication. This corporate consultancy can make the difference between frustration and elation with skills in copywriting speeches, coaching, proof-reading and boardroom editing. Take a look at their website http://www.galecommunication.com/index.html and call the founder, Nick Gale, to find more about how help is just around the corner.

The Presse Internationale des Assurances – “PIA”

On the 17th June, UN Secretary-General Ban Ki-moon delivered the keynote address to the delegates of the UN Insurance Sector Summit, part of the UN International Insurance Society Global Insurance Forum in New York. In a primeur for PIA, the chairman and ceo of our foresighted member, International Cooperative and Mutual Insurance Federation (ICMIF https://www.icmif.org/), Anders Sundström and Shaun Tarbuck took part in leaders’ debates during the summit. Ban Ki-moon’s speech can be accessed at http://www.un.org/sg/statements/index.asp?nid=8729. In addition, Shaun commented, “The insurance industry holds one third of the world’s investible assets and the mutual and cooperative sector accounts for almost a third of that which equates to around US$8 trillion. Our sector has been quick to respond to recent calls for leadership from the United Nations in the climate change debate, as by nature our members want to be more accountable…. The insurance industry has great leaders who are ready to develop sustainable solutions to abate one of the greatest threats this planet has ever faced: climate change.”

This month, we are blessed with news about PIA and our members. Another English member, Post, conducted an interview discussing insurance qualifications in the broking sector, an area which traditionally has lagged behind insurers. While the CII qualifications rank amongst the highest in the world, too few people bother to take them. To see how Stephanie Denton handled this so professionally, go to http://www.postonline.co.uk/post/news/2413185/video-qualifications-in-the-broking-sector

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  • · Australia
  • · Canada
  • · Czech Republic
  • · Germany
  • · Guernsey
  • · India
  • · Japan
  • · Netherlands
  • · Romania
  • · Slovakia
  • · Spain
  • · Turkey
  • · 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 ofhttp://insurancepress.eu/

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

Website www.worldwiderisksolutions.com


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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