BOW WAVE 269

Bow Wave Issue 269--Looking Forwards Edition

news and views on trade, insurance and risk

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Wavy Line	sam@wavyline.com
(c)2005 WavyLine.com	Issue No 269 17 Jan 05
Published free of charge to Readers
Editor: Sam Ignarski
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In this issue:

1. Welcome
2. Experiences of FSA Website
3. Thoughts by Lord Levene
4. Propects for 2004 by Roger Foord
5. Judith Crick's Trip Note
6. And Finally...

1. Welcome

New Readers this week include:

Alex Scott of the MCGA in the UK
Bernd Wessel, General Manager of ICA in Hamburg
Brian Odea of CPShips
Supervisory Commissioner Mrs. Marianne Müller of FOPI in Bern Kiwi Mariner Tim Nicol

Readers Write

Mike Miller, the publisher of the AllCovered E-zine writes:-

At Allcovered we're trying to coordinate donors with those who can get the relief supplies moved... mostly in US and some originating overseas...

Cannot stress enough how little comprehensive press coverage it gets here... (except the cliché-ridden "dramatic home video" sensationalistic cover stories).

Despite that, in small towns and large cities individuals, churches, groups are raising funds, gathering supplies, and working as best they can to help. Official figures put funds collected by private charities above $322-million so far with pledges for multiples of that total... but we're all just getting started.

On a more cynical note: I have been receiving a few emails from from clients and those who get our newsletter... people who are in the stricken areas... about what is... and is not being done. I suppose they know they can 'rant' to me because I am not going to pass the disheartening news on.
One pointed me to a blog begun by some relief workers... maddening stuff, but thought you'd want to see it.
http://diplomadic.blogspot.com/

Contact Mike at:-

mike.miller@allcovered.net

Welcome to Bow Wave where we enter a new year of publishing with anticipation.

We do appreciate your advertisements, announcements and job ads. They help to keep Bow Wave a going concern and in touch with the market. Ask us for terms the next time you need to get a message out to our Readers. With our new website there is very little we cannot do these days.

http://www.wavyline.com

Elsewhere, your editor has moved on from CTC with thanks to all the good people there who made the time such an interesting experience.

Stay tuned for news of our forthcoming attractions.

Enjoy.

2. Experiences of FSA Website

A warning by the FSA that the final deadline for on-line applications for authorisation on the existing basis which appeared in the UK's national press was followed by some fairly predictable scenes on-line. As the deadline approached the site got slower and slower. Calls to the help line were queued then answered by an overspill agency. Some users found their applications "locked" by the system neither in nor out as it were.

Yet the overall look of the thing is professional and altogether convincing and the site shows signs of real care and attention. Leave us hope the FSA does not join the rest of the evidence for lamentable e-government on the part of UK PLC:-

Click below to see:-

http://www.fsa.gov.uk/pubs/other/application_pack/.

3. Thoughts by Lord Levene

Caroline Howe has sent in the latest remarks to an audience in Boston by the Chairman of Lloyds on events in 2004:-

"A record year of natural disaster losses and Eliot Spitzer’s investigations into payment practices highlighted the urgent need for the insurance industry to tackle its reputation and practices during 2005, Lord Levene, Chairman of Lloyd’s warned insurers today.

Lord Levene said the Spitzer investigation, the Asian Tsunami disaster and the Silverstein court case regarding the disputed policy wordings in the World Trade Center contracts added up to three "defining events" in 2004 from which the industry must learn.

Speaking to senior Boston insurance professionals, Lord Levene said that, having witnessed the Tsunami disaster first hand, it was clearer to him than ever that "early warning systems" were vital to prepare for global risks -- both natural and corporate.

"It is not only the insurance industry and corporate boards that need to address risk management. The world needs to prepare for the most unthinkable disasters," he said. "Risk management should be addressed by everyone.

"I wish I could report that the defining events were triumphs, which enhanced the standing and reputation of our industry in the eyes of consumers and business leaders-- but that is not the case. Each defining event presents the insurance industry with a major challenge to get our house in order and improve our reputation."

Effective risk management, combined with greater transparency and contract certainty, are urgently needed to restore the insurance industry’s tarnished reputation, he said. In addition, the industry needs to maintain strong balance sheets to fulfill its vital role in helping to re-build after major disasters.

On contract certainty, Lord Levene said only 23 percent of risk managers received their final policies in a timely fashion and error free, according to an Autumn survey by National Underwriter. In the Silverstein case, it was found that only one insurer had issued a final policy on the World Trade Center prior to the September 11th attacks.... "

Read the whole speeech at:

http://www.lloyds.com/index.asp?itemid=9236

4. Propects for 2004 by Roger Foord

The latest edition of the admirable LIMP e-zine contains a shrewd observer's overview of London Insurance and its labours in the waters of automation. Here is one extract:-

Getting onto 2004 and what has happened in the London insurance market it has to be said that there has been 100% for effort from those interested in the in phrases of 2004, Business Process Reform (BPR) and contract certainty. There still appears to be little change in the attitude of the people on the ‘coal face’ who are still sure that the service they supply to their clients is beyond reproach.

In 2004 London has still suffered from its desire at the very top to tell the world how bad they perceive London to be in its processes. To make all of the changes work just about the whole Crest management team, which worked for Iain Saville, has appeared in Lime Street like the cavalry. They, as a group, presumably have a history of working together and delivering at Crest. What has become more obvious is that the top people in the market have begun to express views on the change. Some of these, however, have resulted in an ‘underwriters versus brokers’ discussions as to who is best at going forward. Following the intervention by the US attorney Mr E Spitzer into one of the nuances of the insurance business, broker commissions, there has been some good banter in the insurance press. Firstly Dane Douetil, the deputy CE of Brit made his views felt that commissions should be paid directly to brokers by clients, rather than as part of the London slip process of commissions being deducted on the slip. This gave rise to Denis Mahoney of Aon pointing out that the whole problem in London is that underwriters are reticent about closing risks electronically. He is referring to the Aon Broking Connections system (ABC) which has recently been introduced for ‘faster processing, contract certainty and shorter administration cycles’. This has been seen in some circles as a direct challenge to the Kinnect platform introduced by the CEO of Lloyd’s in 2000. Interestingly the takers, so far, for Aon’s system are companies, Alea, Swiss Re, GE and Scor whereas Kinnect has predominantly a Lloyd’s user base.

This can only augur badly for London, especially when presumably Marsh, Willis’, Jardines et al start to join the bandwagon and London becomes a mish mash of different systems for underwriters to contend with. Will Hiscox want Kinnect and Aon’s ABC or would a one for all system make more sense? Even so it is too late and the London market has been manifestly let down by those in the market who have chosen not to think centrally. One of London’s main benefits over its competitors, that is one central system (Xchanging Ins-sure Services), must avoid being gradually eroded.

It could end in disaster for London and what was meant to be a challenge to global insurance technologies (incidentally this is a myth, there aren’t any!), might result in handing to insurers abroad business it never expected to get because of the complications being added to the processes in London.

Read the entire issue at:-

http://www.rogerfoord.com

5. Judith Crick's Trip Note

Underwriter Judith Crick, who is on gardening leave, has sent in the third instalment of her trip note on the colder, drier parts of the world. The Note is entitled From One Extreme to the Other. Readers who would like to continue following her progress can read the latest piece in full on the WavyLine site by clicking on the link below:-

http://www.wavyline.com/index.php

6. And Finally...

Many thanks to Joke of the Dayster Peter Dixon who sent in these.....

Dysfunctional Greeting Cards.......

1. I always wanted to have someone to hold, someone to love. And now that you've come into my life....
(Inside card) - I've changed my mind.

2. I must admit, you brought religion into my life.... (Inside card) - I never believed in Hell until I met you.

3. As days go by, I think how lucky I am....
(Inside card) - That you're not here to ruin it for me.

4. Congratulations on your promotion. Before you go... (Inside card) - Will you take the knife from my back? You'll probably need it again.

5. Someday I hope to marry .....
(Inside card) - Someone other than you.

6. Happy Birthday! You look great for your age.... (Inside card) - Almost lifelike!

7. When we were together, you said you would die for me... (Inside card) - Now we've broken up, I think it's time to keep your promise.

8. We've been friends for a very long time...
(Inside card) - What do you say we stop?

9. I'm so miserable with out you...
(Inside card) - It's almost like you're still here.

10. Congratulations on your new bundle of joy... (Inside card) - Did you ever find out who the father was?

11. You are such a good friend. If we were on a sinking ship and there was only one life jacket... Inside card) - I'd miss you terrible and think of you often.

12. Your friends and I wanted to do something special for your birthday... (Inside card) - So we're having you put to sleep.

13. Looking back over the years we've been together, I can't help but wonder...
(Inside card) - What was I thinking?

14. Congratulations on your wedding day!....
(Inside card) - Too bad no one likes your husband.

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