RPC appoints new insurance partner

City law firm, Reynolds Porter Chamberlain (RPC), has announced a new partner hire: insurance lawyer, Victoria Sherratt.

Currently a partner with Barlow Lyde & Gilbert, Ms Sherratt has specialised in property insurance since qualifying in 1999.

Dealing with commercial risks in the UK and in international market, she had handled all types of coverage dispute and developed particular expertise in cases involving business interruption and fraud.

As a member the Insurance Fraud Investigators Group, she also frequently provides fraud training to insurers.

Ms Sherratt takes up her new post in October and the firm’s managing director, Jonathan Watmough, comments: “She is recognised both by the insurance industry and her peers as one of the leading experts in property insurance, having focused on this sector for her entire career.”

He adds: “In business interruption claims in particular she is without doubt the leader in her field.”

Transatlantic Re rebuffs National Indemnity offer

Transatlantic Re has confirmed that it has received an approach from National Indemnity Company, part of the Berkshire Hathaway group, reinstating National Indemnity’s earlier proposal to acquire Transatlantic for $52 per share, in cash.

The move follows the mutually agreed termination of a merger agreement between Transatlantic and Allied World.

However, Transatlantic estimates its book value per share at the end of the third quarter at $69 to $70, and has labelled National Indemnity’s $52 per share offer “opportunistic”.

National Indemnity made its initial approach in June, and while further talks may yet occur, none are planned.

The “merger of equals” once hoped for with Allied World was also announced in June, and its termination has cost Transatlantic a $35 million fee.

Delving into the history of the Square Mile: InsuranceDay.com

London’s insurance market sits at the heart of the City of London, a small but significant part of the UK capital where business powerhouses have helped create the world’s largest financial centre.

As well as being the location for iconic financial buildings such as the London Stock Exchange and the home of Lloyd’s at 1 Lime Street, the City retains a sense of its history with its narrow side streets providing a glimpse of its humbler past.

Visitors to the City will have an opportunity to look inside some of its more iconic buildings at this week’s Open House London event, when notable venues open their doors to the public.

The City of London’s tallest occupied building, Tower 42 on Old Broad Street, will be among those opening its doors.

This weekend also offers an opportunity to look inside Fishmongers Hall, a Grade 1 listed building on the north bank of the Thames, close to Monument Station.

The Landscape Institute is also hosting a tour of some of the newer landscapes in the City of London - visit http://www.landscapeinstitute.org/ for more details.

While the buildings that dominate the City are the physical representation of its history, the characters that have worked within them are the real story behind the Square Mile’s past.

Over the coming weeks and months this column will explore the City of London, examining how the insurance market has developed in London’s capital during recent centuries and how the industry interacts with its local environment.

The Square Mile is bordered by some of the most economically deprived areas of the country, and this column will also look at ways in which the London market is able to reach out to these areas, and identify places within the City where a community spirit still exists.

Next week: A look inside St Ethelburga’s, the church building rebuilt after near total destruction from the 1993 IRA bomb

Munich Re embarks on international roadshows: InsuranceDay.com

Munich Re’s senior management are in full roadshow mode this week at venues across Europe.

Hermann Pohlchristoph, the group’s chief financial officer for reinsurance, will be in Paris on Thursday, before travelling up to Stockholm on Friday to speak to analysts and clients there

On Thursday Christoph Jurecka, chief financial officer for ERGO, will be hosting the roadshow in London.

Last week Munich Re’s chief risk officer Joachim Oechslin was in New York and Boston, spreading the word about the world’s largest reinsurer.

Further roadshows will be held in London and Frankfurt on November 11, while at the beginning of that month, Pohlchristoph will be jetting off for presentation sin Tokyo.

Week ahead - Iumi preview: InsuranceDay.com

A KEY message from the results of the first premium income survey carried out by the International Underwriting Association is that, according to chief executive Dave Matcham, London is the place to go for speciality business. He was able to draw this conclusion despite the fact that marine and energy accounts for only 12% of London company market total premium, and 13% of Lloyd’s premium.

Such figures do not always reflect the relative importance and intellectual capacity of the leaders in London, Matcham said in this regard. London underwriters might, for instance, provide input to weighing up a risk that ended up being written in a company’s parent office overseas,

All the same, marine and energy injected a respectable £1.9bn of premium income into London company market books in 2010, fractionally less than in 2009. Half of such business came from clients outside the UK and European Union. Matcham and the new IUA statistics committee are planning in further surveys to seek more detailed information by line: hull, cargo, liability, and energy for instance in the case of the marine class.

The focus on marine, dwarfed in volume terms by property and casualty, will be welcomed by delegates to the annual meeting in Paris thist week of the International Union of Marine Insurance, and by London’s joint marine market committees.

Meaningful profits from ocean marine are hard to come by, and offshore energy is notoriously mercurial, but it is noteworthy that these lines have dedicated adherents in London and internationally. The paradox in terms of marine hull was explained by Mark Edmondson of Chubb syndicate 1882 in a recent interview. Edmondson, chairman of the joint hull committee, said that the capital allocation needed to support a particular line of business varied, and in these terms hull insurance was popular with capital providers because it was short tail and non-capital intensive relative to many other lines, not tending to aggregate with more natural catastrophe-exposed lines of business.

Some hull underwriters have expressed concern about the effect of recent major casualties on the 2011 year. Edmondson suggests that this has shown that the premium base for hull and machinery underwriters in general needs to be strengthened. “There is no question that this line of business is volatile,“ said the hull committee leader, “not just as a result of very competitive rating premiums, but in terms of our risk environment.”

One area of close attention in the context of both London and IUMI is the commissioning of ever larger ships, with their technological, crewing and risk aggregation challenges. Data compiled during 2010 showed for example that in 2000 there were just six cruiseships of 100,000 gt or over in operation, compared with 41 currently in service and 15 under construction. From 1995 to 2005 the annual average delivery tally of containerships larger than 50,000 gt was 44; from 2005 to 2010 there were 96 a year being delivered; and some 355 are currently under construction.

Equally, we have seen rapid development in hi-tech LNG tonnage, with some 312 large liquefied natural gas carriers exceeding 125,000 cu m capacity operating at the 2010 count, and 47 under construction.

Although marine, energy and aviation might be minority partners in the market, says Matcham, it is quite clear that their global importance is significant.

One should not judge a sector’s value purely by turnover. The words of Robert Hiscox during a market trough are still cited today: volume is vanity, profit is sanity. He said then that he would rather his underwriters were out playing golf than writing unprofitable risks. The rationale is that only profitable operations will be there for the long haul to offer stability for their clients.

Guy Carpenter launches Risk Benchmarks report

Guy Carpenter has published its first Industry Risk Benchmarks report for insurers, which provides risk benchmarks for loss ratios and reserves, by line of business, for coefficient of variation (standard deviation/mean), correlation and cycles.

The benchmarks are based on a database of industry information that includes the reported financial results of hundreds of insurance companies over a thirty-year period.

They can be used to assess the risk parameters used in insurers’ economic capital models.

Developed in conjunction with Risk Lighthouse, the report is available upon request to clients of Guy Carpenter only.

The reinsurance specialist’s head of global advisory, Don Mango, comments: “We developed the risk benchmarks as a timely tool to help insurers in their economic capital
modelling, with detailed explanations on what they mean and how they can be used.”

Lark acquires Cadogan Hanover Park

Lark Group is acquiring the Surrey-based Cadogan Hanover Park business from Barbon Insurance.

On completion of the transaction, Lark, which provides insurance broking services to a cross-section of corporate and personal clients, will see its annual revenues rise to around £23 million and employ around 280 staff across six offices in London and the South East.

The firm’s chief executive, Graham Lark, describes Cadogan as a “top quality broking business and an ideal fit with our strategic objective to become one of the leading independent brokers in the South East”.

All Cadogan management and staff will be joining Lark following the acquisition and will continue working from their office in Croydon.

ARAG launches divorce products

ARAG is launching two new divorce products to the market, following a successful trial run with solicitors Mishcon de Reya and Prolegal.

Pre-nuptial Legal Solutions and Divorce Legal Solutions are aimed at law firms preparing nuptial agreements and provide legal expenses cover from the date of a marriage or civil partnership.

Sold alongside nuptial agreements, both policies cover costs arising from a legal challenge to the nuptial agreement, while Divorce Legal Solutions extends to include the cost of divorce proceedings.

According to the After The Event specialist, the need for nuptial insurance products has been highlighted by the Law Commission giving consideration a statutory framework for pre-nuptial agreements.

This combined with the restriction on legal aid for most divorce cases and proposed reforms to civil litigation, means that the popularity of nuptial agreements is likely to grow.

ARAG managing director, Tony Buss, comments: “While some may see the very idea of ‘divorce insurance’ as unromantic, the realities of modern life and the government’s legal aid and costs reforms will make it harder for ordinary people to access justice before the courts, meaning this is the right time to launch such a product.”

Guy Carpenter condenses management structure

Guy Carpenter has announced a number of changes to its global management structure, as follows:

Chris McKeown has been appointed vice chairman and will in future focus on implementing key strategic initiatives (including capital creation), having previously served as president and chief executive officer of the group’s North American broking operations.

In addition, the firm’s US regions have been reduced from three territories to two and Peter Chandler has been named US Eastern region leader, while Pat Denzer becomes Western region leader.

Both will report to Alex Moczarski, Guy Carpenter’s president and chief executive officer.

Terry Russell, formerly the firm’s US Mid-America region leader, will instead focus on the development of global agriculture, surety and medical malpractice business, reporting to Andrew Marcell, chief executive officer of global practices and head of placement strategy.

Commenting on the changes, Mr Moczarski says: “These appointments condense existing management tiers, thus allowing us to offer more efficient service to our clients.”

He adds: “Our newly aligned structure will enable us to deliver increasingly differentiated solutions that continue to distinguish Guy Carpenter as our clients’ most trusted strategic advisor.”

Crawford UK makes leadership changes

Crawford & Company has made leadership changes in the UK, at its Europe Middle East and Africa/Asia Pacific (EMEA/AP) and global markets operations, in a move aimed at strengthening its relationships with both insurers and brokers.

Greg Gladwell has been appointed chief executive officer UK and Ireland, having joined Crawford in June 2010 from Aviva.

His insurer background should help the group align more closely to its clients and develop mutually beneficial opportunities.

Benedict Burke will be moving from his role as chief executive officer UK and Ireland to join the global markets team, as senior vice president.

He will be responsible for developing key client relationships and assisting with the development of Crawford Global Technical Services SM throughout EMEA/AP.

Clive Nicholls will take up a new role as senior vice president client services for EMEA/AP and will be assisting in business development in addition to his role working with Crawford’s global markets clients.

In other Crawford news, the claims management group recently acquired the Appian Business Process Management (BPM) Suite in a move that should radically alter the way it develops software applications.

The Suite was first introduced to Crawford during development efforts for repairNet, the firm’s managed repair service in the UK.

It can increase efficiency by using a business rules engine to automate processes and also enables better collaboration among employees and clients through an intuitive social media “feed” interface.

Lloyd’s Cycling Club completes 950-mile endurance trip: InsuranceDay.com

Eighteen brave members of the Lloyd’s Cycling Club endured strong winds, the highest climbs in Europe and the most terrifying descents as they journeyed from London to Monte Carlo by bike.

In total the route saw the participants climb a total of 46,000 ft including over the fearsome 8,907 ft Col de la Bonnette, considered so difficult it has featured just four times in the Tour de France.

The trip, including the route, was planned and organised by former Catlin and Aspen underwriter Peter Harris, who also drove the support vehicle.

Anyone wishing to express their admiration to the cyclists for their incredible efforts can make a donation to Combat Stress at: http://www.bmycharity.com/LCCLLOYDSTOMONTECARLO

The team of London insurance market professionals, including underwriters, lawyers and brokers undertook the nine-day, 950-mile ordeal in aid of the Combat Stress charity – especially poignant as the trip started on September 3 (the first day of the Second World War) and ended on September 11 (10 years on from the terrorist atrocities). The route also took the cyclists through the First World War battlefields where they stopped to pay their respects to the fallen of the Somme.

Delving into the history of the Square Mile: InsuranceDay.com

Visitors to the City will have an opportunity to look inside some of its more iconic buildings at this week’s Open House London event, when notable venues open their doors to the public.

The City of London’s tallest occupied building, Tower 42 on Old Broad Street, will be among those opening its doors.

This weekend also offers an opportunity to look inside Fishmongers Hall, a Grade 1 listed building on the north bank of the Thames, close to Monument Station.

The Landscape Institute is also hosting a tour of some of the newer landscapes in the City of London - visit http://www.landscapeinstitute.org/ for more details.

While the buildings that dominate the City are the physical representation of its history, the characters that have worked within them are the real story behind the Square Mile’s past.

Over the coming weeks and months this column will explore the City of London, examining how the insurance market has developed in London’s capital during recent centuries and how the industry interacts with its local environment.

London’s insurance market sits at the heart of the City of London, a small but significant part of the UK capital where business powerhouses have helped create the world’s largest financial centre.

As well as being the location for iconic financial buildings such as the London Stock Exchange and the home of Lloyd’s at 1 Lime Street, the City retains a sense of its history with its narrow side streets providing a glimpse of its humbler past.

The Square Mile is bordered by some of the most economically deprived areas of the country, and this column will also look at ways in which the London market is able to reach out to these areas, and identify places within the City where a community spirit still exists.

Next week: A look inside St Ethelburga’s, the church building rebuilt after near total destruction from the 1993 IRA bomb

Uninsured drivers down 25%

The number of uninsured drivers on UK roads has fallen by 25% in the past five years, according to the Motor Insurers’ Bureau (MIB).

However, illegal drivers in the West Midlands and West Yorkshire are holding back progress, with 17 of the 20 worst postcodes for uninsured drivers located in the regions.

Bordesley in Birmingham tops the hotspot list, followed by two other Birmingham post codes, with Bradford in West Yorkshire coming in at number four.

The Association of Chief Police Officers’ Road Policing lead, Chief Constable Phil Gormley, comments: “Today there are 500,000 fewer of these [uninsured drivers] on the roads than five years ago.

“There are areas of the United Kingdom however that continue to present a challenge for enforcement authorities.”

MIB chief executive, Ashton West, adds: “We are determined to bring UK levels more in line with the rest of Western Europe and that is why the industry is committed to playing their part by making sure that motor policies are recorded on the MID (Motor Insurance Database), thus enabling the police and DVLA to identify vehicles that have no insurance.”

Since 2005, police enforcement at the roadside has removed more than 750,000 uninsured vehicles and levels of uninsured driving are expected to be reduced even further with the introduction of the continuous insurance law earlier this year.

Willis appoints Argentina CEO

Willis Group Holdings plc has announced the appointment of Seth Peller as chief executive officer of Willis Argentina SA.

Peller, whose appointment is made with immediate effect, is to be based in the firm’s Buenos Aires office.

He is a veteran of the firm, having worked for Willis for almost two decades, and was most recently regional placement officer for Latin America.

Willis International Chairman Sarah Turvill said that the appointment came at a time of considerable growth for the firm’s Argentine activities, particularly in areas such as Employee Benefits, Agriculture and Affinity.

Turvill expressed her confidence that Peller’s global expertise in many commercial sectors would help drive the service offering for Argentine companies seeking world class risk management.

Jardine Matheson ups stake in JLT

Jardine Matheson has made a partial cash offer for JLT through its subsidiary, JMHI.

The deal so far agreed will increase JMHI’s existing holding in the broker by 10%, to 40.35%, at a cost of £166.27 million.

FM Global vice chairman to retire

Business property insurer FM Global has announced that Vice Chairman Ruud H. Bosman is to retire in November, after four decades with the firm.

Guy Carpenter condenses management structure

by Gill Montia

Guy Carpenter has announced a number of changes to its global management structure, as follows:

Chris McKeown has been appointed vice chairman and will in future focus on implementing key strategic initiatives (including capital creation), having previously served as president and chief executive officer of the group’s North American broking operations.

In addition, the firm’s US regions have been reduced from three territories to two and Peter Chandler has been named US Eastern region leader, while Pat Denzer becomes Western region leader.

Both will report to Alex Moczarski, Guy Carpenter’s president and chief executive officer.

Terry Russell, formerly the firm’s US Mid-America region leader, will instead focus on the development of global agriculture, surety and medical malpractice business, reporting to Andrew Marcell, chief executive officer of global practices and head of placement strategy.

Commenting on the changes, Mr Moczarski says: “These appointments condense existing management tiers, thus allowing us to offer more efficient service to our clients.”

He adds: “Our newly aligned structure will enable us to deliver increasingly differentiated solutions that continue to distinguish Guy Carpenter as our clients’ most trusted strategic advisor.”

U.S. Safety Board Pushes for Trucker Cellphone Ban

The U.S. government should ban truckers from using cellphones while driving except in emergencies, transportation safety investigators said on Tuesday.

The National Transportation Safety Board (NTSB) recommendation came after it mostly blamed a fiery Kentucky crash last year that killed 11 people on the driver of a tractor trailer who was talking on his mobile phone.

Insurance News - IBM Putting Watson To Work In Health Insurance

WHITE PLAINS, N.Y. -- Enough with the fun and games. Watson is going to work.

IBM's supercomputer system, best known for trouncing the world's best "Jeopardy!" players on TV, is being tapped by one of the nation's largest health insurers to help diagnose medical problems and authorize treatments.

Insurance News - Fitch: Life Insurers' Margins 'Under Pressure'

NEW YORK--(BUSINESS WIRE)-- Operating returns for U.S. life insurers in 2011 have been in line with Fitch Ratings' expectations, according to a report published today. Annualized average operating return on assets, which excludes all realized gains and losses, was 1.29% at the end of the first half, compared with 1.31% for full-year 2010. These results are in line with 2009 returns but are well below 2008 and earlier returns in the 1.50%-1.80% range. Fitch anticipates it will be some time before U.S. life insurers' profitability returns to pre-crisis levels.