March 2010

Talk Around the Bazaar

“The economic environment since the global financial crisis of 2008/2009 proved to be one of low global growth prospects, but without the extreme downside economic outcomes feared. Australia had been a relative outperformer when compared with other developed economies although the prospects going forward may be different. Australia’s economic environment has been a relative safe haven compared with global peers but that may be set to change.” These are the words in an interesting report by Taylor Fry and JP Morgan which can be accessed at http://www.taylorfry.com.au/publications/misc/2013_JP_Morgan_TF_Barometer_media.pdf

Guernsey still leads in LSE listings and added the most in 2013 according to figures recently released. For the full story, please go to http://www.guernseyfinance.com/press-room/news/2014/01/guernsey-still-leads-in-lse-listings,-added-most-in-2013/

Lloyd’s has set out set out the market’s plans for improving the oversight and management of delegated underwriting. These included the Consumer Product Binding Authority project, which combines Coverholder auditing, the introduction of a new level of underwriting authority,  enhanced due diligence and a fifth minimum standard for delegated underwriting focussed on conduct risk. For more detail, the Managing General Agents’ Association reports this at http://www.mgaa.co.uk/news/news-releases/2014/february/members-back-lloyds-delegated-authority-plans-following-montanaros-mgaa-presentation/

From our friends at JMD Ross in Sydney (http://www.jmdross.com.au/) we have some news on the National Disability Insurance Scheme which is being implemented by the Federal Government. The National Disability Insurance Agency (NDIA) is an independent statutory agency, whose role is to implement the National Disability Insurance Scheme (NDIS, http://www.ndis.gov.au/), which will support a better life for hundreds of thousands of Australians with a significant and permanent disability and their families and carers.

The National Disability Insurance Scheme will mean peace of mind for every Australian, for anyone who has or might acquire a disability.

The Scheme’s priority is to ensure people with disability continue to get the support they need. The changes which are required to existing disability support systems are significant. Arrangements are being put in place to ensure the scheme can be introduced gradually, ensuring a smooth transition for people with disability and support providers. From the 1st July 2013, the first stage of the Scheme rolled out in South Australia, Tasmania, the Barwon area of Victoria and the Hunter area in New South Wales. The ACT and NT will join the launch in July 2014.

Insurance Europe has welcomed the recognition by the European Parliament that a “one size fits all” approach to insuring man-made and natural disasters across the EU is unfeasible. The text from the European Parliament can be accessed at http://www.europarl.europa.eu/sides/getDoc.do?type=TA&reference=P7-TA-2014-0076&language=EN and for Insurance Europe’s comments on this and other issues such as Solvency II, Insurance Distribution and more, go to http://www.insuranceeurope.eu/

Another useful observation by Insurance Europe is that the European insurance sector paid a total of €948 billion in claims to its customers in 2012. Insurance Europe’s latest annual report “European Insurance in Figures” is worth studying at http://www.insuranceeurope.eu/uploads/Modules/Publications/european-insurance-in-figures-2.pdf

Insurers involved in the Canterbury earthquake recovery effort have paid out over NZ$10 billion (US$8.32 billion) in commercial and residential settlements, according to the Insurance Council of New Zealand reported by Voxy at http://www.voxy.co.nz/business/over-10-billion-paid-out-insurers-canterbury-earthquake/5/181288 It is interesting to read about the activities of ICNZ such as their report on the history of the general insurance industry in New Zealand, tornadoes in Canterbury, Christchurch earthquake rebuilds and more at http://icnz.org.nz/

The Australian broker network Steadfast (https://www.steadfast.com.au/) has formed two more ‘hubs’, adding to the Sydney and Melbourne hubs already created. Insurance Business Online reports on this at http://www.insurancebusinessonline.com.au/news/broker-network-names-brokerages-in-two-more-hubs-184439.aspx

Lloyd’s recently unveiled a new hub relationship with INEX24 in Germany, a neutral, highly-secure collaboration platform for the industrial insurance sector (http://www.inex24.de/en/). This is one of several hubs highlighted in an article in the Insurance Research Letter of the illustrious Insurance Services Network (http://www.isn-inc.com/aboutus/insurance-services-network.aspx). This monthly newsletter must be the premier source of news helping insurance professionals navigate ‘the ins and outs’ of the international insurance landscape and we recommend our readers to take out a subscription

The city of Zürich recently played a key role in linking the Atlantic and Pacific Oceans. Business Insurance probably did not mean it this way, but their excellent article on the provision of a Surety Bond by the insurer headquartered in that Swiss city of gnomes enabling work on the Panama Canal Expansion to restart can be viewed at http://www.businessinsurance.com/article/20140220/NEWS07/140229987#full_story

Famous quotations. Here are some words of wisdom which have survived the passage of time…

· No-one provokes me with impunity (nemo me impune lacessit)” – Motto of Scotland

· “A government which robs Peter to pay Paul can always depend on the support of Paul” – George Bernard Shaw