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Welcome to our Monthly Newsletter – September 2007

Talk Around the Bazaar

  • A Forum of the Chief Risk Officers of some of the largest insurance undertakings in Europe has welcomed the European Commission’s proposals for a directive to set out a new framework for the supervision of insurers – Solvency II
  • The U.S. state of Missouri has passed legislation creating special licensing rules for captive insurers
  • In Japan, AXA is continuing its energetic introduction of new products with a whole life medical insurance policy. They have recently launched a variable annuity as well. Something similar is happening in Qatar, where AXA is making great strides with its healthcare products
  • Fitch has made a first attempt to analyse important facets of financial security in rating Takaful firms. In Bahrain, the Institute of Banking and Finance is to introduce the world’s first formal qualification in Takaful. And in Pakistan, the Pak-Qatar Group has become the first to offer family and general takaful
  • Life Assurance of India and New India Assurance have joined forces with the Al Hokair group to create a composite insurer in Saudi Arabia: Saudi New Co for Cooperative Insurance    
  • ACE has formed a global construction unit to handle the perceived upgrading in infrastructure in many countries around the world
  • Like the U.K., Denmark has had a summer of flooding and the Danish Storm Council is considering a proposal to make flood cover compulsory for property owners in coastal areas
  • The Egyptian government is planning to merge at least three of the state insurance companies to create one of the largest insurers in the region and list it on the stock exchange
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    We are currently discussing projects in the following markets:

  • Portugal
  • India
  • U.S.A.
  • Germany
  • Serbia
  • Turkey
  • Vietnam
  • Romania
  • Italy
  • Australia
  • Canada
  • Iran
  • United Kingdom
  • Netherlands
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    If Worldwide Risk Solutions can help expand your international markets, we would be happy to listen to your needs or conduct a feasibility study. For more information, please see the contact details below.

    What Clients Say

    “Worldwide Risk Solutions is playing a vital role as our organisation grows internationally”

    “With their skills and experience, we can outsource some of our global team activities”

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    Worldwide Risk Solutions LLP
    20 Blunts Wood Road
    Haywards Heath
    West Sussex
    RH16 1NB, England

    Telephone: +44 (0)1444 450 919
    Mobile: +44 (0)7968 191 511



    Information appearing in WoRdS is checked for technical accuracy but is not intended to provide a basis of knowledge upon which advice can be given. Worldwide Risk Solutions 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.

    A New Force in International Insurance

    Worldwide Risk Solutions is a U.K. based commercial organisation facilitating global business strategies and business development in the international insurance industry. For more information about us, please go to www.worldwiderisksolutions.com.

    Since Our Last Newsletter

    Although in the media and business world summer is traditionally relatively quiet - the literal translation of the Silly Season in Dutch is “Cucumber Time,” we have established contacts with brokers from such far flung countries as Iran, Serbia and Vietnam. There has been a lot of interest following last month’s article on India and we suggest you distribute this to your contacts who you think would also be interested to read it. If you feel you are under-represented in India or have any questions, please contact us and we can discuss how to help you.

    In our SPOTLIGHT series we will help understand the way different markets around the world operate so that those who do business there can feel more “at home abroad.” Different does not need to mean difficult but knowledge of the needs and characteristics of specific geographic markets is an advantage to those who are active in the global economy.  This helps avoid misunderstandings and unfulfilled expectations. We have now done articles on Brazil, Takaful and India; if you would like copies, please let us know.

    Reputation Risk

    The Consortium Approach

    A recent survey identified “reputation risk” as a major concern for risk managers and insurance buyers. In the national press in quite a few countries some of the world’s most well-known brands have been committing themselves to “green ethical” production and manufacturing methods.

    This is a risk management issue and the question is, with limited resources and more than usual scrutiny from inside and outside the organisation, what tools does one need in order to set up and monitor an effective programme and which market will reward such efforts with well-designed and –priced insurance or ART protection?

    Yes, we know that there are many experts out there and some so-called tailor-made products which, when actually pulled off the shelf, lack the necessary flexibility. Increasingly there are alternative sources of knowledge, skills and expertise and it is no longer just the mega-brokers who can come to the rescue. In fact “coming to the rescue” is sometimes a bit like closing the stable door after the horse has bolted: reactive.

    There are firms out there whose offering is broader, more focussed on the client and who have the ability to design the sort of programme which will take the pressure off the buyer as their out-sourced arm.

    They can bundle certain risks to facilitate the identification and monitoring of risk control programmes:  take for example clothing manufacturers using third country labour. They need to avoid the sweat shop syndrome which could harm their sales and marketing reputation. Similarly tour operators struggle with the fear that their hotels in exotic destinations are not anything like what they should be and the resultant bad publicity is damaging.

    Teams of advisers, intermediaries and underwriters are forming pro-action groups targeting those organisations whose risks, if a crisis were to occur, could have disastrous consequences for the clients’ balance sheet. The London market is developing the expertise to prepare risks for placement (and place them) on a specialty basis. Key personnel are now approaching selected customers in a proactive manner and explaining how they can bring the latest tools to identify sensitive scenarios and monitor production and manufacturing behaviour and take them to specialist markets. These consortiums of independent firms which comprise the best individual skills in the market are not only looking at reputation risks but a whole host of business performance issues whereby risk profiling and continuity planning play an important role.

    Undoubtedly an integrated approach combining risk identification, control and customised insurance protection is in the best interests of the client. By adopting a consortium approach one has an opportunity both to satisfy the needs of the client and to differentiate oneself from the pack.

    In preparing this Spotlight article we received invaluable assistance from the leading independent risk advisers, idRisk (www.idrisk.com) for which we are grateful.

    If you would like Worldwide Risk Solutions to conduct an economic, business and insurance survey of any international markets please contact us – Details below.

    Worldwide Risk Solutions has a wide client base of internationally oriented organisations. Utilising the knowledge and experience gained over many years, we can put this capability at your disposal. If you would like us to conduct a swift appraisal of your global activities or if you have questions about international developments, just give us a call +44 (0)1444 450 919 or send us an e-mail and we will be happy to look at some of these questions and to start providing answers.

    In our next e-newsletter we will look at Spotlight: Australia. There are some interesting changes afoot. We will catch up with some of these developments and discuss some of them in our next edition of WoRdS.

    See our Contact Details

    George Worsley, Director
    Worldwide Risk Solutions
    Telephone +44 (0)1444 450 919
    E-mail info@worldwiderisksolutions.com

    © Worldwide Risk Solutions LLP 2007