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In order to continue the success of recent times, insurance companies must adapt to the changing needs of the customer. Mandy Aitchison takes a look at just how flexible companies are becoming

New offerings from some insurers have made it clear that in order to continue to grow, policies must be adapted to cope with the demands of the ever evolving marketplace. The advent of the Internet has also increased competition among insurers and

brokers, as comparing like-for-like policies has never been quicker or simpler. In order to distinguish themselves from their competitors then, some companies are adapting quickly in order to grab their share of the market. More than 17 million travel insurance policies are sold each year in the US, according to

the United States Travel Insurance Association (UStiA), whose membership numbers have increased dramatically since 9/11. And as the market matures, companies are ‘leapfrogging one another to expand coverage’, said Chris Harvey, chief executive of Squaremouth.com, the online travel insurer. AIG Travel Guard, one of the biggest players in the North American travel insurance business, is introducing a new array of options by early June, including coverage for travellers who need to

cancel a trip due to work obligations, and even for those who change their plans on a whim. It is also increasing its maximum trip cancellation insurance to $100,000 from $30,000 for travellers with big holiday budgets, and, in an attempt to address the ubiquitous baggage problems, it is more than doubling its maximum coverage for baggage loss.Another insurer, Travelex, added benefits to some existing policies in November last year, including reimbursement to travellers for their unused theatre, sports or concert tickets purchased with a credit card while on holiday. The company also helps travellers cope with identity theft, and

ISSUE 77 • JUNE 2007International Travel Insurance Journal

ESSENTIAL READING FOR TRAVEL INSURANCE INDUSTRY PROFESSIONALS

Page 20 Page 24 Page 32 Page 36

Evolution or extinction

International travellers whose insurance does not have negotiated discount contracts with American hospitals are likely to be charged two to three times more than those covered by domestic private insurance, confirms a new survey. Milan Korcok counts the dollars

Authored by Gerard Anderson, professor of health policy and management at Johns Hopkins School of Public Health in Baltimore, the study, which first appeared in the journal Health Affairs, notes that the uninsured and self-pay patients were charged on average two and a half times more for hospital services in 2004 than those who were covered by domestic insurance covered by negotiated discount contracts. Such contracts are normally negotiated between hospitals and/or their networks and ‘wholesale’ buyers of services such as PPOs, managed care or insurance companies.Anderson wrote that the gap between the rates hospitals charge self-pay patients or the uninsured and what the federal Medicare programme for the elderly and disabled pays them has more than doubled over the past 20 years. On average, hospitals charged self-payers or the uninsured more than three times the Medicare allowable rate.American hospitals traditionally have what are called chargemasters: lists of the retail rates charged for every item and service in their inventory. These compendia run to hundreds of

Aussies urge insuranceMiles Clarke in Sydney has details of the governmental push towards a greater uptake of travel insurance

Australia has undertaken a £5.4-million campaign over four years to encourage the more than half a million Australians who leave the country each month to take out travel insurance. Veteran Foreign Minister Alexander Downer launched the print and television campaign, called Smartraveller, which aims to provide Australians with information to ensure that their travel remains a safe and positive experience through their understanding and taking into account risks such as ill health, natural disasters, civil unrest, terrorist attacks or even simple mishaps that can mar a holiday.The campaign is aimed at all travellers, but has a particular focus on adventure travellers, who are deemed prepared to take a greater risk with their health. While the number of Australians taking out travel insurance has soared in recent times, still around 25 per cent of people leave these shores uninsured. The government points out that hospitalisation, medical evacuations, or even the return of a deceased’s remains to Australia can be very expensive. Daily hospitalisation costs in Southeast Asia regularly exceed £350; return of remains from Europe in excess of £5,000; while the cost of medical evacuations from the United States range from £30,000 to £70,000 and sometimes up to £120,000. The government’s Smartraveller website carries a

comprehensive consumer guide to travel insurance and says it is not its intention to discourage Australians from travelling. Indeed, it points out that only 0.6 per cent of Australians travelling overseas each year encounter difficulty. Nonetheless, the Australian consulate staff handles over 20,000 cases involving Australians in difficulty

overseas on an annual basis. This includes over 700 hospitalisations, 600 deaths and 100 evacuations of Australians to another location for medical purposes. The government notes, meanwhile, that some insurance policies will not always cover claims originating in those countries to which the Department of Foreign Affairs

continued on p.2

No deals cost big bucks

continued on p.4 continued on p.5

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The importance of having all the relevant paperwork with you whilst away on holiday was brought to the forefront again recently, following the case of a 79-year-old woman from the UK who became ill in France, and was left behind in a hospital by her tour group. Beatrice Archer set off on an Easter pilgrimage with Tours for Churches, part of the larger NST travel group, but she developed a chest infection, and went to hospital when she began having difficulty breathing. When it was discovered that the pilgrim lacked the necessary declaration of fitness to travel from her doctor, the travel group departed for Britain, leaving the non-French speaking diabetic in hospital. Tours for Churches insists that clients over 75 years of age obtain a letter from their GP to declare them fit for travel. In Mrs Archer’s case, however, this letter was not received in time because her GP was on holiday. Mrs Archer’s daughter was not impressed with the treatment her mother received by Tours for Churches, and commented, “The emphasis the whole time was on the letter – not on my mum out there. I phoned the British Embassy, who told me to phone the Home Office. The Home Office told me that she would have to take out a personal

loan of £5,000 in order to get herself home.”It was only after another tour operator became involved that the situation took a turn for the better. As soon as John Tangney of pilgrimage specialists Tangney Tours heard of the situation, he took action and told the family his company would sort the mess out for a maximum charge of £500. Two days later, the company arranged for Mrs Archer’s son to be flown out to join her, and then for a nurse to bring them back. In total, the company spent £2,000 on repatriating Mrs Archer, but hopes to get this back from its insurer. Mr Tangney said of the matter: “I’ve been in this business for 30 years and I’ve never heard of anybody being treated so badly. They certainly should have double-checked that a lady of 79 had all the (necessary) paperwork before sending her.”A spokesman for NST said it was only notified very late that a client of theirs was in hospital. “Unfortunately, it became apparent that the client had not complied with certain insurance conditions prior to travel, which caused some administrative delay whilst necessary retrospective action could be taken.” The spokesman went on to say that NST regretted any inconvenience caused to the client, and that the company’s approach is always to support its clients.

ITIJInternational Travel Insurance Journal

WHAT’S IN THIS ISSUE?

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News 1

Editorial comment 5

Company brief 7

Insurance matters 8

Travel matters 14

Air ambulance news 16

Health matters 18

News analysis: Covering the big ‘C’ 20

World markets: Australia 36

Grapevine 39

Marketing matters 39

Service directory 40

Diary dates 47

On the move 47

Contributors 47

FEATURES

ITIC European review 24

Embracing the fear 32

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International Travel Insurance Journal

The World Economic Forum recently ranked Canada as one of the top ten best nations to visit on holiday. Its Travel and Tourism Competitiveness Index

gave the country high scores for transportation infrastructure, health and education. So, for the 35 million visitors who travel to Canada every year, everything seems fine. However, the one thing the country can’t offer tourists is free medical care. Uninsurerd visitors to Canada, should they become ill or be injured, have to pay such costs out of their own pockets, which can end up being very high. Cecile Langlois, national director of claims and travel assistance for Travel Insurance Co-ordinators Ltd, said, “We’ve seen Canadian hospitals charge non-residents $4,300 a day for treatment in the intensive care unit.” National organisation Citizenship and Immigration Canada has therefore issued a recommendation to all visitors to its country that they make sure they take out emergency health and medical cover for their trip.

Visitors to Canada bewareNew figures issued following a study by online

insurer Swiftcover has found that one fifth of tourists arrive at their holiday destination only to find that their luggage has not followed them there. The study also showed that 55 per cent of baggageless holidaymakers had to wait more than 24 hours for their bags to be returned by their air operator. Twenty-two per cent of respondents, meanwhile, collectively claimed to have spent at least £212 million replacing lost items. Director

of underwriting for the company, Craig Staniland, claims that the statistics are contributing to holidaymakers facing increased travel stress, as they spend the first few days of their break replacing lost objects ‘instead of winding down and relaxing’.He added that, “As long as you have adequate travel insurance, losing your suitcase should not hit you in the pocket, but for the majority of people, it’s often the sentimental value of personal belongings that cannot be replaced.” Despite this, the study revealed that a number of holidaymakers are leaving valuable items in their checked luggage, most likely thanks to security restrictions. Four per cent were reported to have put cash or travellers cheques in their suitcases, with five per cent packing personal documents in hold baggage.

More luggage misery

Barclaycard Business put the onus well and truly on the consumer recently, when it came out and claimed that travellers have a responsibility to take the right steps to be safe when away from home. The financial services provider said that whether it comes in the form of making sure a holidaymaker has the right kind of insurance, to keeping an eye on hand luggage during transit, the traveller is the person responsible. Denise Leleux, director of commercial cards at Barclaycard Business, said simply that “Increased personal security among travellers leads to safer and hassle-free trips.”A survey carried out by the company revealed that 96 per cent of business travellers said that they felt safe or mostly safe when travelling for work, despite a perceived threat of terrorism. More than two-thirds of respondents said they felt as safe or safer than a decade ago, some time before the terror attack on the Twin Towers in 2001.

Travellers are responsible

includes reimbursement for specified expenses incurred when restoring your identity. Access America’s BizPack, meanwhile, is a business-themed travel insurance offering to reimburse travellers if they can’t go on a trip due to unexpected business obligations.Hurricane insurance is also gradually becoming more comprehensive. Small print loopholes that previously stated the policyholder would not receive reimbursement if they could reach their hotel destination, even if, for example, the hotel had been destroyed by bad weather the week before are being removed. Jim Grace, president and chief executive of InsureMyTrip, said, “We’ve seen more and more companies – about 30 to 40 per cent – allow travellers to cancel their trip if a hurricane makes a destination uninhabitable.” More policies will also let consumers cancel if there is a hurricane warning in place. TravelSafe recently started insuring travellers for non-refundable deposits if such a warning prompts them to cancel in the 24-hour period before their scheduled departure.Credit card insurance usually receives pretty bad press when it comes to the coverage it typically offers, but again, these offerings are being improved upon all the time. A traveller who reserves and pays for their holiday with an American Express card, for example, is automatically covered against theft of rental cars, or damage to them. For some card holders, the company has also just increased combined coverage for lost or damaged carry-on or checked luggage.So, it would seem adaptation is the name of the game for travel insurers – who can offer the best coverage, for the most competitive price, while still looking after their bottom line? It is a tough market in which to operate, and one where a balance must be struck if profits are to be made whilst keeping holidaymakers protected.

Evolution or extinction continued from p.1

Travel insurers in the UK had better brace themselves for an upsurge in claims this month, after more than 2,000 cruise passengers had their holiday cancelled because of a technical problem with their ship. The Sea Princess was due to leave Southampton for a two-week cruise in

the Mediterranean, and although a team worked throughout the night on the vessel, the decision was taken to cancel the trip. It is not the first problem to hit the liner in recent times – it had to be disinfected after a virus struck down around 200 passengers in May last year.

Insurers at the ready

Pensioner left behind

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International Travel Insurance Journal n www.itij.co.uk

The problem of insuring cancer patients, or those who are in remission, is a constant battle, both for travel insurers and the sufferers who seek cover. Recent research by UK charity Macmillan Cancer Support has revealed that two in five (30 per cent) cancer patients have been quoted higher insurance premiums than a ‘healthy’ traveller, or one that has never suffered with cancer, while 21 per cent have resorted to going on holiday without the protection of an insurance policy as the cost has been prohibitive. Macmillan also claims that it is not just patients undergoing treatment who have difficulty purchasing a reasonably priced policy – whole families are sometimes forced to pay much higher premiums too, even if only one member of

the family has had cancer in the past.Judy Beard, acting chief executive of Macmillan Cancer Support, said: “Cancer patients and those who have recovered tell us they are being charged high premiums and they don’t understand why. We want to educate patients on how to prepare for and go about buying travel insurance, and to work with the industry to help it understand cancer and make it easier for people who have had cancer to buy policies.”

Industry interaction needed

and Trade recommends against travel, and advises travellers to consult and monitor the Smartraveller website for updated information.With advice that will be manna from heaven for the travel insurance industry, the government says with accidents or illness often unavoidable, proper travel insurance is essential. The all-too-common occurrence of theft and loss of personal belongings is also something all Australian travellers should insure against. Each year, the Foreign Affairs department handles over 16,000 cases involving the welfare of Australians who have suffered illness, theft, robbery or assault.

Aussies urge insurance continued from p.1

A BOTTLE OF ChAMPAgNE TO BE WON

We have stepped up our campaign to find the weirdest, wackiest travel insurance claim, paid or not, and are now offering one bottle of champagne every month for the best claim story we receive!We have had a good response so far, but we know there are more funny claims out there and we want to hear them from you. So, send a quick email to mandy@itij.co.uk with details of any crazy claims you receive – it only takes a few minutes, and you could be handsomely rewarded!

British tourists are unsure what they should to do in the event of an unexpected emergency whilst abroad, according to the results of a recently released study. Research by Fisher’s Travel SOS has indicated that 60 per cent of foreign holidaymakers do not have the information or the means to cope with a problem whilst they are away. Publisher of the survey, Julian Fisher, said: “Even the simplest of tasks when dealing with people in a foreign country, especially when unable to speak the language, has contributed to high stress levels already acknowledged throughout the industry.” The study also showed that 85 per cent of those who have suffered a holiday mishap put the blame onto a third party, such as their tour operator or travel agent. However, just over half of these tourists claimed they sought reparations after the incident.

Don’t panic!

The Engineers Club in Khartoum, Sudan, has recently borne witness to two agreements on medical and travel insurance, which signify the

first experiment between Shiekan Insurance and Reinsurance Company and the Sudanese Engineers Union. In attendance was the Minister of Irrigation, who called on engineers all over the country to sign up for the medical insurance plan, which offers many privileges that would otherwise be beyond the reach of the average worker in Sudan. Under the terms of the coverage, Shiekan Company is offering clinical treatment for all engineers who have a medical

insurance card. One engineer noted the important role the company played in increasing the number of insured workers and families from 200 to 1,000.At the same meeting, Shiekan also stated that it had registered 200 engineers from various sectors as a first batch under the new umbrella of travel and medical insurance. The agreement includes all clinical benefits such as surgeries, drugs, rescue, dentistry and ophthalmology treatments at a number of hospitals, with 300 physicians already signed up to the programme. The insurance network originally covered all Sudanese states, but now the company has agreed contracts for treatment in Jordan and Egypt.

Sudanese tie-up

�NEWS

International Travel Insurance Journal n www.itij.co.uk

Editoral commentWe’ve slightly amended our request for ‘quirky claims’ this month and are now giving away a bottle of bubbly each month to the person that sends us the craziest travel insurance claim story. We’ve been kept amused in the office over the last couple of months with some very strange stories indeed, but we know you’ve got some even better ones up your sleeve, so do send them in and we’ll publish them, sending you a nice bottle of champagne for your troubles.I also should remind you to send in your nominations and votes for this year’s ITIC Awards, as the deadline will be here before you know it. All the usual categories will recognise the leaders in the various sectors of the global travel insurance industry, as decided by you – the readers of ITIJ. Remember: every vote counts! The awards ceremony itself has a lot to live up to following last year’s event, but Venice promises to provide a fitting backstop to yet another spectacular event. I won’t be there myself this year, as I will be in the midst of maternity leave, but I shall give you plenty of warning before I go and will be back before you’ve had time to miss me.Anyway, back to business. The other item I must mention this month is our forthcoming supplement – this time aimed at the assistance and repatriation industry. If you would like to be included, we’d love to hear from you. We are finalising the content as we go to print, so any last requests for articles or features you’d like to see in the supplement, or indeed that you would like to write yourself, need to be sent to me as soon as possible. Thank you and I look forward to hearing from you.

There were no survivors on an aircraft that nose-dived into a Cameroonian swamp at the beginning of May, with 114 people on board, including five Britons. The wreckage of Kenya Airways flight KQ507 was located after more than 40 hours of searching dense rainforest. The pronouncement of no survivors was made after the water-filled crater left by the crash was examined. The Boeing 737-800, which was only six months old, crashed

into the mangrove swamp at midnight on Saturday 5 May. The aircraft began its journey in Abidjan in the Ivory Coast, but stopped in Douala to pick up more passengers, including all five Britons. It took off again for the Kenyan capital Nairobi, but shortly afterwards sent out an automatic distress signal. Officials said it was too early to tell what might have caused the plane to go down between 11 and 13 minutes after take-off.

No survivors in Cameroon

Sarah LeeEditor

sarah@itij.co.uk

In the last issue of ITIJ, we drew attention to an article by the Consumer Federation of America that said travel insurance was a waste of time and money. And we were not the only ones to notice it: the Travel Health Insurance Association of Canada (THiA) resultantly issued a statement that serves as a warning to Canadian consumers. The assertion in the article was that other forms of insurance would cover a traveller on holiday for any emergency medical treatment, but what was not made clear in the article, says THiA, is that it was based on a survey that targeted American consumers, not Canadians, who are not in the same boat. Canadian provincial health insurance plans do not

adequately cover out-of-country medical service: nominal claim benefits range from $75 per day to approximately $500 per day, depending on the

province. These payout amounts, when compared to typical US hospital charges of $5,000 to $10,000 a day, serve to underline the importance of travel insurance for Canadian consumers.

THiA rebuts articleIndependent financial research company Defaqto has warned holidaymakers in the UK that some travel insurance policies are too cheap to be able to pay out in the event of a serious claim being made. The company found 30 single trip policies that charge £10 or less for a week’s travel to Europe, with one insurer quoting just £5.49 per person. In its report, entitled Travel Insurance in the UK – cheaper is rarely better, which is based on an analysis of 968 travel insurance policies, it urged travellers to be wary of buying insurance based on price alone.Brian Brown, author of the report and Defaqto’s head of insight, said: “The insurance industry and the government must do more to ensure that

all consumers are aware that when it comes to travel insurance, cheapest is not always best.” He went on to say that areas of particular concern for him included a lack of understanding over how baggage cover works, and a requirement from insurers that the consumer must provide receipts for all items being claimed for. In Brown’s opinion, “Consumers are being let down by the insurance industry, which has made travel insurance policies jargon-heavy to the point that the only thing

they can easily compare is price.” Compounded with the issue of ever-increasing competition, these problems mean that too many

people are travelling abroad with either inadequate or no cover at all. In fact, Defaqto estimates that around 10 million overseas visits are made each year without any insurance.

Beware the cheap deal

The Association of British Insurers (ABI) has defended those members who increase the cost of travel insurance premiums for those over the age of 65. Director of corporate communications, Alan Leaman, told a BBC programme that the Association’s members were right to raise costs for older travellers’ insurance policies. He commented, “It’s important to remember that travel insurance particularly is a relatively low-cost product and therefore some of the risk assessment is going to feel rather arbitrary, as in some aspects of life.” He went on to say that people over the age of 65 are found to be three times more likely to make a claim than younger people, and when they do claim, it generally costs the insurer three times as much. Mr Leaman’s comments follow a lobby in Parliament Square, in which campaigners urged for a ban on age discrimination.

ABI defends increase As the strong pound increases its value over the

American dollar, Britons rushing to book cheap trips to the US are reminded by American Express Insurance Services that no matter how formidable the exchange rate is, or becomes, medical treatment in the US is among the most expensive, if not the most expensive in the world. American Express, as a global travel insurer, is well placed to comment, as it has dealt with thousands of US medical bill claims. Joanne Field, marketing manager for the company, noted one particular case: “One customer had sixteen hours of tests in an American hospital, which generated a bill of $20,000.”

Timely reminder

Britons buying travel insurance could drastically reduce the amount they pay for their annual premiums simply by shopping around, research from InsureandGo has found. The average cost for one year of cover is currently £123.03, but the average for the most competitive insurers is only £61.12, according to data from the insurer. For a single trip policy, meanwhile, the average cost stands at £54.84, yet this figure drops down to £33.03 for the most competitive companies. All told, Britons spend around £670 million a year on travel insurance,

but the research has demonstrated that this total could be significantly reduced, were people to shop around for a cheaper option. Company director Perry Wilson commented, “The difference in travel insurance premiums between the most expensive and the most competitive is huge so it really pays to shop around for cover.” He went on to add that one way for consumers to avoid paying over the odds for a policy is to avoid travel agents and tour operators selling insurance, as research has shown their prices are far higher than the Internet.

Travellers told to shop around

No deals cost big bucks

continued from p.1

pages and are used by hospitals as their starting point for negotiating discounts with insurers and other service consumers. It is not unusual for insurers and managed care companies who can refer large numbers of patients to the respective hospitals to pay a third, sometimes less, of those chargemaster rates. On the other hand, those with no insurance or whose insurance has not negotiated a discount contract will be billed 100 percent of that retail rate.Anderson noted in his study that in 2004, hospitals collected, on average, $39 for every $100 they charged. That is roughly double the ratio collected in 1984. The highest markups were noted in California, New Jersey and Pennsylvania. In the meantime, dozens of class action lawsuits have been filed against hospitals in various states for charging the poor and the uninsured more than they do large insurers. Some state legislatures are also cracking down on hospitals, requiring them to post not only their chargemaster rates online, but to list their average payments per key procedures from all of their payers - large and small. In speaking of his study, Anderson told the media: “I hope it can change how hospital boards price for the uninsured and get the American public to see what’s going on.”In response, a spokesperson for the American Hospital Association said the Anderson study was ‘out of date’, that since 2004 - when the data were collected - hospitals have changed many of their pricing practices and the real problem was not the way hospitals set their prices, but that so many Americans - more than 45 million - are without health insurance. The AHA has reported that hospitals provide $25 billion a year in uncompensated care for those who have no insurance, or whose insurance does not cover their bills. Other data show that up to five per cent of a hospitals’ expenses, on average, are attributed to uncompensated care.

Larger, safer and more beneficialThe PTC of Lufthansa sets new standards

www.lufthansa.com Advertorial

With its Patient Transport Compartment (PTC), Deutsche Lufthansa offers a solution for the transport and intensive medical care of critically-ill patients on long-haul flights that has been systematically developed and perfected since 1996.

The PTC is a closed space unit specially developed for this purpose. As a result, the private sphere is preserved and consistent intensive medical care of the patient made possible.As an independent fully-functional space unit, when required the PTC can be installed in wide-bodied aircraft like the B 747-400 and the A 340 fleet during routine time spent on the ground in Frankfurt. Measuring 6 square metres and with normal standing height, in comparison to an ambulance aircraft, the PTC offers plenty of space for the treatment of patients.In addition to the patient bed, the compartment contains two seats for the medical crew, intensive care equipment, 13,000 litres of oxygen and the required consumable materials and drugs.

LogisticsSince spring 2004, the PTC has been flying not only to the B 747 destinations, but also on all intercontinental flights that are flown by the new A-340-300/600 fleet . Thus the number of destinations that can be reached directly with the PTC system has

increased from 25 to more than 60 worldwide.In the event of an inquiry for the PTC system, approx. 30 minutes time is required for checking the system, in order to provide an approval. The PTC transport is handled on the basis of a priority system, irrespective of the capacity utilization of the flight. In order to guarantee smooth repatriation, the chronological course of the flight is discussed in advance together with the customer. This includes transport to and from the airport. Here, precise planning is very important as the planned flight routine of a schedule flight should not be affected by a PTC tour.After the commissioning of the transport order and the immediate operative preparation, on day 1, as a rule, the medical crew sets off from Frankfurt to travel to the patient. It is made up of the doctor provided by the customer and the LH PTC Escort. The PTC Escort is a male or female flight attendant with training as an intensive care nurse/paramedic. In addition to providing medical assistance, he/she is responsible for the safety and coordination of the PTC Transport. Thus, the doctor has an experienced assistant by his side, enabling him to concentrate exclusively on the

medical care of the patient.On arrival at the destination there are usually at least 24 hours before the return flight. The doctor takes a look at the patient’s documents and examines the patient in order to assess his/her transportability. All the

other preparatory work is completed during this time.If the patient is not fit for transportation at this time, there is still time to stop the installation of the PTC in Frankfurt. It is thus possible to avoid the main cost element in the event of a cancellation or a temporal delay without the PTC being used. In this case, together with the customer, LH will discuss what alternatives are then realizable. That could mean: later use of the PTC or the return of the medical crew without the patient. In order to guarantee that the flight with the PTC is conducted on time and all waiting time for the patient is avoided, the flight can be registered with a high priority with the Central Flow Management Unit (CMU) in Brussels.Thanks to the well-coordinated logistics it is guaranteed that the patient can be brought on board without problems and a reciprocal impairment of passenger and medical transport does not occur. In the normal case, the patient is back home about two and a half days after the medical crew departs on its mission.The transfer at all airports is conducted, on principle, by Lufthansa. In Frankfurt a special ambulance highloader

is available. At other stations use is made of a catering vehicle. This is safer and simpler than bringing the patient aboard via the aircraft’s steps. If the patient is to be further transported by rescue helicopter or ambulance aircraft, provisions can be made in advance for the LH aircraft and the other aircraft to be positioned immediately next to each other. This ensures an immediate transfer of the patient.The total transport time must be kept to the absolutely necessary minimum. The PTC system fulfils this precondition, it facilitates a shortening of the transport time by up to 50%. Another important factor is the price of the intensive care transport. Included in the PTC price is a B-Class ticket for the accompanying doctor from or to the patient, the medical equipment in accordance with the requirements for intensive care transport, drugs as well as medical consumable materials plus the PTC Escort.The price comparison is clearly in favour of the scheduled flight. The difference compared to an ambulance flight is so substantial that the difference not only covers the feeder and collection flights but, in addition, also produces a clear cost advantage for the scheduled flight. With clear economic, operative and medical advantages on long-haul routes, the PTC is less a competing product, but rather a meaningful alternative to the ambulance aircraft with a very specific performance profile.

Medical team and equipmentWhile the customer, as a rule, provides the accompanying doctor for the transport, LH provides the assisting medical personnel (intensive care nurse/paramedic). The PTC Escort instructs the doctor if necessary in the use of the medical equipment, he is in possession of all the necessary licenses required by the Federal Aviation Agency, and he assumes before and during transport all organizational and safety-relevant responsibilities. This leads to a significant relief of the doctor, he can concentrate fully on the medical treatment of his patient and is thereby integrated in the LH-internal flight procedure by the assistant. The doctor, as a rule, is a specialist and has both intensive care and emergency medical experience.With Lufthansa’s Patient Transport Compartment a closed intensive care unit is available for civil aviation which can be used on scheduled services. In 6 square metres, this unit offers a treatment room with standing room.The medical equipment includes intensive care equipment which offers a high degree of patient safety. If necessary, further equipment can be transported. Due to the clearly shorter flying times and lower costs in comparison to the ambulance jets, this system is an ideal alternative for patients requiring intensive care, particularly on long-haul flights.

lufthansa 76 1 23/4/07 14:53:12

�COMPANYBRIEF

International Travel Insurance Journal n www.itij.co.uk

Halifax and Bank of Scotland (HBOS), the UK’s fourth largest retail bank, has, for the first time, appointed a vehicle breakdown company to provide its current account customers with roadside assistance. The new agreement signed with the RAC will provide rescue services to over eight million existing HBOS customers – current account holders will automatically receive the new benefit if they sign up to an ‘Ultimate Reward’ package. The three-year contract sees RAC managing its first bank account partnership in the added value sector.

AIG/Saigontourist deal completeVietnam’s leading tour operator, Saigontourist Travel Service Co., has made a deal with AIG General Insurance (Vietnam) Co. Ltd to provide global travel insurance for Vietnamese tourists. Under the deal, signed recently in Ho Chi Min City, AIG will be the insurance partner to provide travel cover for Saigontourist’s thousands of consumers. Vo Anh Tai, director of the tour operator, said that the global travel insurance service not only applies to Vietnamese people who travel abroad, but also for overseas Vietnamese and foreigners who buy outbound tourism services from the company. Since June 2005, the company has offered free insurance for tourists, but with the increasing numbers of tourists travelling to far-flung destinations, the company wished to extend its

insurance for tourists on a global scale to better protect them. Mr Tai said that ‘the partnership with AIG also creates an advantage for Saigontourist in competing with other companies because few tour operators provide global insurance that covers terrorism, natural calamities and epidemics like we do’.

Travelodge enters the gameUK accommodation specialist Travelodge is the latest in a string of companies to launch its own brand of travel insurance, with offers for single trip European cover starting from £6. The price is very competitive, highlighting the battle for customers that is currently underway in the UK market. Despite the low cost of travel insurance nowadays, and single trip cover in particular, as many as 28 per cent of British holidaymakers are prepared to travel without cover, research by Travelodge has revealed. Guy Parsons, the company’s COO, emphasised the necessity of travel insurance in today’s climate: “There are many reasons why you should always be insured on your travels, but fluctuating foreign medical costs mean that treatment for even the most innocuous injury can seriously dent your finances.”

Online comparison site OnTheGoInsure has recently been launched in the US, enabling global travellers and recent immigrants to the country, as well as missionary, school and corporate groups, to research and purchase global medical and travel insurance products from anywhere in the world. The menu of products offered includes guaranteed issue policies, pre-existing condition waivers and

deductibles from zero to $5,000. Other elements include accidental death and dismemberment, emergency medical evacuation coverage and a multi-lingual claims and assistance centre that is open 24/7. Robert Bent, creator of the website, said, “Our goal is to assist today’s active senior travellers, who are becoming increasingly aware that Medicare does not provide medical and hospital coverage outside the US.”

Amadeus, a technology and distribution solution for the travel and tourism industry, has recently announced the implementation of Amadeus Gulf to enable travel agents across the UAE and Oman to

issue AIG travel insurance policies at the booking stage of a holiday. Travel agents will be able to book products courtesy of the insurer through the current Amadeus system. Ghulam Saleh Al Bloushi, general manager of Amadeus

Gulf, said, “Amadeus has taken the local partnership approach by joining forces with insurance launch partners such as AIG in the Middle East and African market to deliver a solution adapted to the specific requirements of both providers and sellers.”Amadeus Insurance is a fully automated booking tool, employing proven Amadeus technology to delver a fast and intuitive system that integrates fully with a travel agency’s existing booking systems and back office. Information stored in the travel details included in the passenger record is then used to calculate the insurance premium value, so the information does not need to be re-entered. Since the whole process takes place online, time is not wasted waiting in a telephone queue or on hold to an insurer. In addition, the details of the sale are automatically sent to the travel agency’s back office and the insurance provider, so agents have less paperwork to do and more time to spend with customers.

HBOS ties up with RAC

Insurance for those on the go

NU adds travel optionNorwich Union Healthcare is offering travel insurance as an optional extra for companies with between 50 and 249 employees covered on its Solutions health scheme. The travel option aims to help intermediaries take care of their clients’ healthcare and travel insurance needs and ensure they are properly protected abroad as well as in the UK. The policy can cover business and personal travel, travel for dependents of employees, emergency medical treatment and delayed baggage. The benefits of the policy include no underwriting, no limit to the number of days spent outside the UK and paying the same premium regardless of age.

Travel adds valueThe Employer Markets division of the US-based Lincoln National Corporation has announced the addition of travel assistance services as a value-added feature to its group life insurance policies. Based on employers’ need to control the cost of employee benefits, while still providing high-quality health plans, Lincoln added the travel assistance programme, TravelConnect, to deliver further protection for its group life insurance clients.Benefits of the TravelConnect service include travel, medical and safety-related services for covered employees and their family members. The services are available when travelling more than 100 miles from home, regardless if the trip is for business or pleasure. By packaging the service with

group life insurance coverage, the company hopes to provide its employees with an additional benefit that can be utilised anytime, anywhere.

Amadeus launches in UAE

Banks are onboardYet another UK-based bank has decided to move further into the travel insurance market – Bradford & Bingley is now offering competitively priced annual policies, tailored to both families and the single parent. Customers with pre-existing conditions are able to choose whether or not their condition is covered by the policy, and pay the corresponding premium. And cover is available to those over the age of 79. Dave Foyle, head of insurance at the bank, said, “Our travel insurance range has been designed to meet the different needs and requirements of our customers, offering them peace of mind while they are away from home.”

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AM Best Co.’s 2007 outlook for the global reinsurance industry is stable, which is a change from the negative outlook that was originally assigned to the sector two years ago. This revision of fortune implies, according to some analysts, that the majority of 2007 reinsurer rating actions are likely to be affirmations with stable outlooks, and only a modest amount of anticipated rating or outlook changes. However, AM Best has warned, should price deterioration and competition persist at a faster pace than was originally anticipated, the outlook could be revised back to negative by the end of the year.The positive revision by the ratings company follows very strong 2006 full-year financial performance of companies operating in the global reinsurance sector, with many carriers reporting record earnings. Additionally, although mixed, the 1 January renewals set the tone for near-term optimism, despite increased

competition primarily associated with non-catastrophe exposed business lines.Given the potential for favourable underwriting margins in many lines of business, it is AM Best’s expectation that the sector is posed for a profitable year. Moreover, reinsurers are entering a softening phase of the market with replenished balance sheets due to strong earnings and improved loss reserving positions. So, whilst it is expected that this should be another good year for the sector overall, the eventual outcome will, as always, be based on how well reinsurers manage their catastrophic exposures relative to capital risk, given that the benign catastrophe season of 2006 is unlikely to be repeated this year.Nonetheless, it was made clear by the company that the optimism for long-term robust performance from the reinsurance segment is somewhat dimmed, due to the

resounding feeling that market conditions will continue to deteriorate, particularly for non-catastrophic exposed business lines. Moreover, many companies enjoying the strongest industry results in decades are continuing to retain more risk, thereby reducing the overall demand for reinsurance. With only recent history to serve as a guide, it is critical for participants to remember how quickly the good times can turn sour when the next unforeseen disaster unleashes itself on the industry.

Reinsurance looks stable

Under a bill the US House panel approved in April, national insurance companies would be prevented from setting up new, Florida-only subsidiaries – a move that forms part of an effort to force property insurance rates lower in order to appease angry residents. In a further nod to consumers, the panel also defeated an effort to take away the state regulator’s ability to reject rate increases it considers to be excessive. Florida-only subsidiaries,

sometimes called ‘pup companies’, have been the target of governor Charlie Crist, who argues that they allow insurance companies to insulate their national profits, especially where the Florida subsidiary may have lost money due to hurricane activity. The bill, HB 1267, would also allow state regulators

to take into account the profits of national companies when considering the rates of existing pup companies. One House member, Rep. Julio Robaina, commented, “When [insurers] have a satellite company, that’s not spreading the risk.” Insurance companies have countered that risk is supposed to be spread among people with like risks. Therefore, with insurance being regulated state by state, they say it is not realistic to ask regulators to force homeowners in the relatively safe Midwest to subsidise the hurricane risk in Florida.Although the ruling may seem harsh on insurance companies, the council did reject one provision that should go some way to protecting the industry – it is not able to spell out exactly how much profit a national insurer should have. The move, had it been agreed, would have prevented Florida rate increases when the parent company made a 15 per cent profit or more. Also stripped from the bill was a provision that would have made it easer for people to choose Citizens Property Insurance when private companies’ rates are higher.

Consumer paramount in Florida

NEWSWIRE

Royal & SunAlliance has marked the end of a radical reshaping with a step up in its dividend

policy. The insurer proposed a 35-per-cent increase in the final dividend after completing the disposal of what was left of its US arm.

Liberty Mutual, the second largest US private auto insurer, will enter the Polish market by

selling insurance via the telephone and Internet, according to a local newspaper.

The Co-operators Group Ltd announced strong financial results, changes to its board of

directors and an expansion of its co-operative ownership base at the company’s annual general meeting in Calgary.

Around 80 per cent of insurance companies in Hong Kong have agreed to extend accident

and employees compensation insurance coverage to include the Hong Kong port area, when a bridge linking the territory to Shenzhen opens in July.

A study by LifeSeach has shown that the number of Britons under 35 years of age

purchasing life insurance fell by five per cent over the past 12 months. The survey also indicated that when they did purchase it, it tended to be inadequate.

New York-based Integro Ltd has announced the formation of an international insurance

and reinsurance business unit to be based in London. The group will offer worldwide insurance and reinsurance capabilities for independent brokers and partners.

CNP Assurances, France’s leading personal insurer, has completed the acquisition of 94

per cent of Spanish insurer Skandia Visa SA de Seguros y Reaseguros, from Skandia Insurance Company, a subsidiary of Old Mutual plc.

Assicurazioni Generali has been granted a definitive licence to operate in the non-life

sector in China by the China Insurance Regulatory Commission. The new company is called Generali China Insurance Company, co-owned by Generali and the China National Petroleum Corporation.

Amana Takaful Insurance reported a 57-per-cent growth in gross written premiums to $6.2

million last year, thanks to a growing acceptance of Takaful concepts in Sri Lanka, said chairman Tyeab Akbarally.

The number of US-based companies that bought extra personal liability protection for their board members rose by 53 per cent last year, amid a softening market for directors’ and officers’ insurance, according to a recent study by Towers Perrin, the corporate consultancy. The survey, of nearly 3,000 companies, added that 66 per cent received a record number of enquiries from potential board members anxious about their current level of liability cover, representing a 16-per-cent increase from a year earlier.In response to these concerns from board members, the survey said, companies purchased

higher rates of so-called ‘Side A coverage’, which pays high-ranking company officials directly for loss – including defence costs – when they are not indemnified by the organisation. About 38 per cent of public companies surveyed purchased Side A-only coverage in the past year.Michael Turk, a senior consultant at Towers Perrin, said of the matter, “Directors are concerned about their potential liability, and are keenly aware of the risks associated with being a board member.” He also noted that the bulk of stock option backdating cases so far have resulted in shareholder derivative claims, a common source of Side A claims by directors and officers.

Liability protection on the up

The Coalition to Insure Against Terrorism (CIAT) and the American Insurance Association (AIA) recently announced their agreement on a set of common principles that the two organisations believe must be considered by Congress as its prepares to take up legislation that would renew the federal backstop for terrorism insurance. Importantly, the CIAT/AIA joint principles call for the new legislation to be permanent, for the distinction between foreign and domestic acts of terrorism to be eliminated and for a recognition of the extreme nature of nuclear, biological, chemical and radiological (NBCR) attacks through a lower deductible, together with certainty with respect to the role of private insurers in managing NCBR terrorism risk. Marc Racicot, AIA’s president, said, “These principles represent a set of parameters that we believe should be considered as part of any Terrorism Risk Insurance Act extension bill.”

CIAT and AIA join together

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A group of non-life insurers in Korea are set to be penalised for collusion in setting premiums for insurance products between 2000 and 2006, according to officials from the Fair Trade Commission (FTC). The anti-trust body said it plans to refer the 10 firms to the prosecution for further investigation. Although the FTC has been investigating the firms for some time, and has now completed its examination, the penalties have yet to be finalised. One official said the non-life insurers face up to 170 billion won in penalties for their collusion, and if this penalty were to be fixed, it would be the largest in the industry’s history.The firms are suspected of having colluded in setting basic data to calculate insurance premiums, which resulted in similar levels of premiums for various

insurance products, according to the FTC. The companies then all raised their premiums at the same time: for instance, in March 2005, they raised premiums simultaneously for housing fire insurance by 232 per cent. The insurers are said to be considering taking counteraction against any type of punishment decisions by the

FTC, claiming they had no choice but to offer similar product prices to retain price-sensitive consumers.

Korean collusion

Aviva has announced expansion plans for the Russian market, confirming it is on track to achieve a top five position in the country within the next five years. A year after the launch of Aviva Russia, the company has already gained a leadership position in the life insurance market, providing life insurance contracts to more than 200 companies and establishing a non-state pension fund aimed at the corporate market. Outside of the insurance sector, the company has also forged partnerships with three retail banks in the country, Credit Europe Bank, Banque Accord and Probinsnesbank.Building on its current business model, the company is now poised to enter the direct sales market with the launch of a Moscow-based direct sales force, and it is driving product innovation with a campaign to introduce a type of unit-linked product to Russia, a first for the emerging market. In order to further strengthen its position among Russia’s corporate life insurance market, the company has also become the Associate Insurer in the Russian Federation for the IGP – the largest pooling network in the world. This provides Russian subsidiaries of the IGP’s 770 multinational corporations with the opportunity to choose Aviva for their employee benefits needs.

Aviva ventures further into Russia

NEWSWIRE

The 14 members of the Arab Forum of Insurance Regulatory Commission signed a memorandum

of understanding recently to enhance co-operation among regulatory members, facilitate the exchange of information, provide technical support and ultimately protect the rights of policyholders in Arab markets.

AM Best Co. has affirmed the financial strength rating of A- and the issuer credit rating of a- of

Guild Insurance Limited Australia. The outlook for both ratings is stable.

SeaBright Insurance Holdings announced that for the first quarter of 2007, net income increased

to $10.1 million, compared to a net income of $6 million for the same period in 2006. Total revenue for the quarter increased 13.9 per cent to $54.9 million.

Minority shareholders are threatening to derail Fortress’s £162-million purchase of Alea,

the London-listed, Bermuda-based reinsurer, in an attempt to squeeze more cash out of the US hedge fund and private equity group.

MAPFRE released its results for the first quarter of this year, showing an increase

in pre-tax revenue of 14.3 per cent, or €331.9 million, with total consolidated revenues amounting to €3,994.3 million.

Aviva plc, the insurance, savings and investment group, is to enter an agreement with First

Financial Holding Co. Limited to form a joint venture company in Taiwan, called First-Aviva.

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NEWSWIREInsurance brokerage Assurex Global has

added an Indonesian brokerage to its partner list. Mitra, Iswara & Rorimpandey Insurance Brokers was selected ‘based on its outstanding commitment to client service’.

AM Best has confirmed its ratings of MAPFRE TEPEYAC, a direct insurance subsidiary

of MAPFRE in Mexico, with A- for its financial strength rating and a- for its issuer credit rating.

Aviva has received regulatory approval for its Chinese joint venture company,

Aviva-COFCO, to establish a branch based in Shijiazhuang, the capital of Hebei province.

AXA Asia Pacific has posted a 51-per-cent increase in net retail inflows to A$782.9

million in Australia and New Zealand, ahead of the 30 June superannuation changes announced in the 2006 budget.

New research has found that only 50 per cent of people read the small print on insurance,

loans and credit card agreements, according to price comparison website BeatThatQuote.com

The Allianz Group has had a good start to the year, announcing an operating profit that has

increased by seven per cent, from €2.7 billion to €2.9 billion, which includes claims paid arising from winter storm Kyrill.

The Zurich Group is in legal hot water in the UK at the moment, as a gay activist and

entrepreneur claims the insurer tried to ruin him. The case hinges on a £330,000 loan the Swiss-based company made to the man’s company.

Figures released by the CIRC have shown that China’s insurers made a profit of 73.76 billion

yuan on their investment in securities in 2006, accounting for 77 per cent of the total profit.

Declining life insurance sales in Japan and the slowing growth in variable pension insurance,

together with a smaller customer base are likely to have a negative impact on the premium income of the nation’s life insurers in fiscal 2006, said industry sources recently.

Japan’s six major life insurers together failed to pay 382,492 valid insurance claims worth an

estimated 29.4 billion yen, according to the latest figures released by the Financial Services Authority.

In Taiwan, Cathay Life Insurance, Shin Kong Insurance and Fubon Insurance have retained

their positions as the top three life insurance companies in terms of first-year premiums for the first quarter of the year.

A preliminary joint venture agreement has been signed between the Generali and PPF Groups to combine their Central and Eastern European businesses to create one of the region’s leading insurers. The agreement accelerates both groups’ strategies for expansion in one of the insurance industry’s most attractive regions, and creates a strong platform for further expansion into adjacent territories. The new joint venture, called ‘JV’ for the time being, will be 51-per-cent owned by the Generali Group, and 40-per-cent owned by the PPF Group, part of Ceska Pojistovna, which is one of the Czech Republic’s leading insurance companies.Based on pro-forma 2006 data, it has been predicted that the JV’s annual gross written premiums will exceed

€2.6 billion, with an embedded value of €2.3 billion and over nine million customers in 12 countries. Sergio Balniot, co-CEO of Assicurazioni Generali, will be chairman of the JV, and Ladislav Bartonicek, chairman of Ceska Pojistovna’s board of directors, will be CEO.

Generali and PPF combine

The Atlantic Task Force in Insurance Availability and Affordability released a report recently, highlighting the progress made by insurers, the government and commercial insurance buyers towards implementing recommendations to improve the commercial insurance marketplace on a long-term basis. Don Forgeron, vice president of the Atlantic Insurance Bureau of Canada and chair of the task force, said, “There is much more to be done to ensure that businesses, not-for-profit groups and insurers are prepared for future challenges concerning commercial insurance.”In general, however, the progress report found that the Canadian insurance marketplace has improved over the last 16 months. Respondents to a survey conducted to gather information for the report indicated that insurance availability and affordability is no longer the top-of-the-mind issue it once was. But, there are still challenges to be faced, and more work to be done to better safeguard against future crises. Initiatives completed to date include the insurance industry’s efforts to improve communication and provide more educational tools on risk management; governments in each of the Atlantic provinces beginning to take action; and commercial insurance buyers beginning to take ownership of the insurance process.

Work to be done in Canada

Sales at Prudential’s underperforming UK life business fell by 23 per cent in the first quarter of this year, overshadowing progress made elsewhere, and doing nothing to quell the enthusiasm among some investors for a break-up of the company. Sales in the UK life business, which is currently being overhauled, fell from £238 million to £183

million on an annual premium equivalent basis. The figures were in part hindered by the absence of £66 million of sales from a big bulk annuity deal in the first quarter of 2006, and the loss of £15 million of sales from a contract that was not renewed. Mark Tucker, chief executive, defended the company’s UK performance, pointing to a 16-per-cent increase in UK retail sales from annuities, corporate pensions, equity release and with-profit bonds.Prudential Group sales rose one per cent to £640 million in the same period, while US sales rose eight per cent to £180 million, or 21 per cent at current exchange rates. Asian sales, in an area where Prudential has expanded its sales force to 335,000, rose by 23 per cent to reach £277 million.

Falling sales overshadow progress

With Louisiana’s hurricane recovery stymied at least in part by rocketing property insurance premiums, governor Kathleen Blanco has come up with a plan to ease the US state’s problem: offer insurers $100 million in incentives. But in

an election year, she might struggle to convince local lawmakers to hand taxpayer’s money over to their insurers, who are already deeply unpopular in the state. Blanco’s goal is to lower insurance rates by luring more companies to Louisiana and thereby increasing competition. If the legislature approves the plan, it would be the first time a state has offered grants to insurance companies in an effort to persuade them to write homeowners policies, said the state insurance department.Blanco wants to set up a fund with $100 million in state money, and then invite insurance firms to apply for amounts ranging from $2 million to $10 million. Qualified companies would then match the state money, and 25 per cent of their new policyholders would have to come from the high-risk homeowners now insured by the Louisiana Citizens Property Insurance. Any game insurer would also be required to agree to insure homeowners for at least five years. The plan is designed to reduce the number of properties insured by state-funded Citizens Insurance, which writes policies for those who can’t find insurance elsewhere.

Insurance incentives

Giant German group Munich Re is starting to roll out a string of new initiatives to insure new risks, sharpen its marketing and make the company more nimble. Thanks to sharpened risk controls and tighter monitoring of underwriters, Munich Re, which has a market value of €29.55 billion, has earned higher profits from flat premiums in recent years. But, its share price has lagged far behind those of close rival Swiss Re and several other large insurers, partly because the company has been less aggressive taking on debt and pursuing new business. The company’s board has now mapped out a series of efforts to boost business, from selling new types of coverage to cutting down paperwork and redrawing pay incentives. It said the steps incorporate ideas gleaned from shareholders, clients and analysts.The company is testing new coverage lines tied to climate change, including the writing of various kinds of coverage for green projects. The firm is also looking at writing technology coverage for damages caused by viruses, an area many have seen as uninsurable thus far. In the meantime, it is weighing new approaches to marketing, including selling directly to companies through trade associations and building better relationships with small, fast-growing insurers. Internally, Munich Re is seeking to cut layers of bureaucracy, rather than staff, mostly at underwriting units. It is also considering changes to pay and bonus structures that reward creativity rather than simply precision.

Munich Re repositions

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When Swiss Re issued an innovative flood bond recently, it raised some eyebrows in the London marketplace. While financiers have known for some years that there is a theoretical risk the river Thames will flood and damage Britain’s capital city, the arrival of an instrument that seeks to quantify and price the risk has starkly highlighted the issue. Aside from the rising water threat, the $150-million bond was striking for another reason – it marks the first time that a financial institution has attempted to issue a security linked to flooding.Although similar instruments have emerged in the past five years that cover the danger of hurricanes and earthquakes, flood risk has, until now, been left put out in the cold. The new bond, however, points to a much bigger trend developing in the financial services industry – the convergence of the capital markets,

derivatives and the insurance world. Luca Albertini, head of European insurance-linked securities at Swiss Re, said, “It really demonstrates how insurance and the capital markets can be complimentary.”Insurance and capital market spheres used to be regarded as fairly separate entities. What insurance companies essentially did was to underwrite the risk for companies or individuals, and then seek to lay off part of that risk by taking out a secondary contract with a reinsurer. But this decade has seen a revolution spread throughout financial services: bilateral contracts for transferring risk have started to be replaced, and the tendency instead is to share risks with a wide pool of investors, usually via capital market instruments. In practical terms, this means the insurance industry is scrambling to find ways to spread its risks, not just with reinsurers, but with a much wider pool of investors

in the capital market via the creation of derivatives or bonds linked to insurance claims.A key uncertainty in this new modus operandi is whether this appetite will remain if interest rates start to rise again, making ‘normal’ debt instruments more attractive. Many say it will, given that insurance-linked securities tend to be uncorrelated with other financial assets, which can be a useful addition to any investment portfolio. One executive at a London-based broker said investors are ‘very, very keen for more of this stuff’. However, if a spate of disasters were to strike, and cause sudden losses for the holders of the bonds, the investment industry might well turn tail and run.

Thames fears realised

Insurance companies in the UK have been ordered by the chief City watchdog to improve standards of cold calling when selling policies over the phone. The Financial Services Authority (FSA) told insurers they must stop putting pressure on customers to make quick decisions, and must ensure that they are treating customers fairly. Vernon Everitt, director of retail themes at the FSA, said, “The quality of cold calling in general insurance sales was disappointing – consumers were pressurised and the benefits of the product were sometimes exaggerated.” The FSA reviewed 43 insurers to examine their sales processes, systems and controls, and whether they were treating customers fairly when selling insurance products over the telephone. Mr Everitt commented that action had been taken to deliver improvements at the insurers visited by the FSA, and that it was following up with others that used cold calling as part

of their sales strategy.

Insurers warned over cold calling

When the concept of catastrophe bonds took off earlier this decade, Wall Street’s investment banks took credit for the innovation, but behind the scenes, one of the biggest driving forces behind the market has reportedly been Swiss Re. The reinsurance sector had a reputation for being slow moving, traditional and staid. But these days, companies such as Swiss Re are becoming increasingly active in some of the cutting-edge areas of capital markets as well, and are introducing pioneering ideas.Company data suggests that over the past four years (the period in which the bonds really took off) the capital markets arm of the insurance group has underwritten $8.5 billion worth of catastrophe bonds, $4.5 billion of which were issued last year. The company’s nearest competitors are Lehman Brothers and Goldman Sachs, which have respectively underwritten $6.6 billion and $7.3 billion worth of such bonds over the past four years, with Barclays Capital and UBS also playing significant roles in the market.The activity has come amid a noted change of pace for the Swiss insurer. As

the insurance industry has embraced capital markets techniques, Swiss Re has established operations in London and New York, which now trade products such as equity and credit derivatives. It is also starting to poach teams from investment banks to trade the instruments. However, this shift has not always occurred smoothly – the business style of the Swiss insurance sector has traditionally been quite different from the investment banking world, meaning there could be challenges ahead.

Swiss Re takes hold

Life insurers in South Korea have been given the green light from the Financial Supervisory Commission (FSC) to list their shares on the Korean stock exchange in a move that is expected to help local companies become more competitive. A spokesman from the FSC said that the Commission expects the listings to help promote mergers and acquisitions, which will result in bigger and therefore more competitive life insurers entering overseas markets, while consumers will benefit through better products and services.Currently, only Samsung Life Insurance, Kyobo Life Insurance, Hungkuk Life Insurance and two other companies meet the requirements for initial public offerings; Kyobo Life is expected to be the first to list its shares later this year. Under the guidelines for listing, insurance policyholders are defined as creditors, not shareholders, thus freeing insurers from sharing capital gains made by an IPO. As a result, NGOs in the region are threatening legal action against the FSC chairman Yoon Jeung-hyun, who they claim is helping to increase insurers’ capital at the expense of policyholders. In response, life insurers have said they are planning to contribute 1.5 trillion won (US$1.61 billion) to a public insurance fund over the next several years.

Life insurers get the green light

After a four-year enquiry into the risks posed by direct offshore foreign insurers (DOFIs), the Australian government has finally announced that DOFIs will be subject to prudential regulation through amendments to the Insurance Act of 1973. Hence, anyone carrying on insurance business in Australia, either directly or through the actions of another, must become an authorised insurer.The Australia Prudential Regulation Authority (APRA) issued a statement outlining its response to the government’s ruling on DOFIs, saying that the proposed amendments are consistent with APRA’s principles-based approach to prudential standards for insurers, which aims to maintain adequate protection for policyholders, while at the same time applying standards that reflect the nature of different insurance categories. APRA member John Trowbridge, said: “[The government’s amendments] will streamline the regulation of categories of insurers posing a lower risk and give added clarity to all insurers, including DOFIs.” He went on to comment that insurers stand to benefit from the move, as the new framework will be more transparent. The Insurance Act will apply to DOFIs, including captives, foreign insurers and reinsurers operating in Australia as APRA-authorised branches or subsidiaries, domestic insurers and reinsurers. There will, however, be some limited exemptions, where the capacity of the Australian insurance market does not meet the full needs of large or specialised buyers of insurance.

DOFIs subject to regulation

Credit rating agencies are reviewing the way in which they assess the capital requirements of financial companies, which is expected to lead to more favourable treatment of highly diversified companies such as America International Group (AIG). Christopher Mahoney, head of corporate ratings at Moody’s, said that the move to a more ‘dynamic’ approach to capital modelling should result in lower capital requirements for groups composed of businesses with largely uncorrelated risks.In response, Steven Bensinger, chief financial officer of AIG, said he expected rating agencies to move closer towards the company’s own analysis of its economic capital, which currently shows it has excess capital of between $15 and $20 billion. In an interview with the Financial Times, Mr Bensinger said the changes would allow AIG to demonstrate the value of its highly diverse business mix, amid increasing investor scepticism. Reportedly, investors are frequently asking why they should buy AIG stock, when they could try and obtain the same exposure to the same businesses by acquiring stakes in specialist rivals: “What a portfolio manager investing in companies can’t do is get the kind of correlation benefits in terms of capital efficiency by investing in a bouquet of companies … [but] because we are managing these businesses under one capital umbrella, we can,” said Bensinger in response. Bruce Ballentine, Moody’s lead analyst for AIG, said that

some assessment of the diversification benefit had been built into its ratings in the past, but that the new process would ‘help quantify the diversification benefit more precisely than has been done in the past’.The action by Moody’s and others forms part of the trend towards risk-based modelling by companies, rating agencies and regulators. European insurers have been leading this trend, thanks to the new Solvency II regulatory regime, which will give credit for internal capital models. An economic capital model assesses how much capital a company needs to stay solvent with a specified probability, given the risks to which it is exposed.

AIG set to benefit

For those Chinese people rich enough to open an 80,000-yuan ($10,350) account, Citigroup Inc. and Standard Chartered are now promising an alternative to the queues at China’s big state lenders. The two

foreign banks, along with HSBC Holdings and Bank of East Asia are hoping to tempt the newly wealthy Chinese market into the lucrative retail banking niche industry by offering them free tea and insurance products. Lu Lugang, a manager at a foreign firm, opened an account recently with Citibank, because he wanted ‘better and more professional banking services’. “If the service at Citibank is really good, I will deposit more and probably try more products at the bank,” he said, holding a glass of (free) champagne.

Insurance lures wealthy Chinese

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NEWSWIREThe planned merger between Thomas Cook and

MyTravel is expected to be finalised in the next few months, following approval given by the European Commission in May. The Commission said it had concluded that the deal ‘would not significantly impeded effective competition’ in the European Economic Area or any substantial part of it.

Hong Kong’s Cathay Pacific and Emirates Airlines have stopped all fights to the capital

of Sri Lanka, Colombo, in light of a terrorist attack by the Tamil Tigers on a Shell oil storage facility there. Singapore Airlines, meanwhile, has stopped all night flights to the city.

UK consumer body Holiday Which? has highlighted the ‘confusing mess’ surrounding

passenger protection for those who arrange DIY holidays. The latest issue of its magazine puts the issue of financial protection under the spotlight in the wake of ABTA’s court victory against the CAA over whether travel agents selling component holidays should carry ATOLs.

ABTA’s board of directors will be halved in size and its name changed from the Association

of British Travel Agents to ABTA Limited under shake-up plans revealed recently. The current 18 directors will be cut to nine, and the board will include one non-ABTA member.

Michael O’Leary, CEO of Ryanair, has said he was planning to bring his no-frills approach to

transatlantic flights, offering one-way tickets from as little as £7. His intervention came less than 24 hours after Zoom UK said it planned a Gatwick to New York service for £129 one way, including taxes.

Holidaymakers could be phoning home for a fraction of the price this summer

after a European parliament committee voted overwhelmingly for strict caps on so-called roaming charges across the EU. There is now a mandatory tariff of 27 pence per minute to make a call, and about seven pence to receive a call.

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The Japanese government is planning to ease access for international carriers to the country’s regional airports, in the hope of precipitating what would be the equivalent of the US-UK open skies deal. The Asian Gateway Plan, as it is known, would cut ticket prices and stimulate trade between the world’s second biggest economy and the rest of Asia. If it does happen, it would be the most radical liberalisation of the country’s highly regulated skies that the government has undertaken in decades.In an interview with the Financial Times, Takumi Nemoto, special advisor to the prime minister, said Tokyo wanted to open access for foreign airlines at all the regional airports, and wanted to expand operations at Haneda,

Tokyo follows Europe

US low-cost carrier JetBlue is apparently considering the possibility of introducing an in-flight text messaging service, highlighting efforts by US carriers to exploit onboard communications as a way of boosting revenue. David Neelman, founder and chief executive of the company, shares the misgivings of many US airline executives about the onboard use of mobile phones for voice calls, but said text communications could prove attractive to customers. JetBlue has already blazed a trail among low-cost carriers in the US: it was the first to offer live television on its aircraft, and bought additional radio spectrum in a federal auction that could be applied to launch the first in-flight text service. Meanwhile, Southwest Airlines, the largest domestic carrier in the US, said it is also exploring in-flight wireless access as part of its shift away from the ‘no-frills’ business model. At the moment, it seems to be the European carriers who are at the forefront of introducing mobile phone technology into their aircraft, however – Air France-KLM is due to start a six-month trial on short-haul routes, while Ryanair has announced plans to equip half of its fleet with the technology to allow mobile phone use.

JetBlue ponders in-flight messaging

It may claim to be the world’s favourite airline, but when it comes to making sure passengers’ bags arrive on time, and at the right destination, British Airways (BA) is less than impressive. A study by the Air Transport Users Council (AUC) has revealed that BA has the worst record for losing passengers’ luggage – for every 1,000 passengers carried by the airline, 23 bags went missing in 2006. The AUC said that BA had admitted its baggage handling last year was not acceptable, and it apologised to consumers who had been affected. But the carrier also claimed that changes to the way in which security at British airports is operated has led to

more bags being handled, and a striking increase in the number of bags going astray.For the purposes of the research, 24 airlines, all of which are members of the Association of European Airlines (AEA), submitted their data on baggage for official scrutiny. The total number of missing bags reached more than 5.6 million – an average of 15.7 for every 1,000 passengers. A total of 85 per cent of the mishandled bags were returned to their owners within 48 hours, but this meant that about one million took more than two days to reach their intended destination, and some were simply never found.Other poor performers included Lufthansa of Germany, Air France, Italy’s Alitalia and KLM of the Netherlands. The AUC added that the actual figure for European carriers could be even worse because some AEA members, such as Virgin Atlantic and Bmi, do not provide luggage data. In addition, the popular budget airlines, such as Ryanair and easyJet, are not part of the Association.

Fly the flag and lose your bag

Leading accommodation booking companies Lowcostbeds and OnHolidayGroup/Jet2holidays were the first to sign up to a new holiday accommodation safety scheme. The Travelsafe health and safety accreditation system will mean hotels, apartments and villas face blacklisting if they fail to pass new stringent safety standards. The aim is to make it safer for Britons to holiday abroad and avoid tragedies like the one last summer, where two children died from carbon monoxide poisoning at a holiday apartment in Corfu. The two companies so far enrolled in the scheme will require the 5,000 properties they collectively represent to complete an assessment of their current safety precautions.The Travelsafe system, which has taken more than three years to perfect, gathers information, whether online or by visiting experienced health and safety officials, about safety standards in such areas as fire,

food hygiene and swimming pool surveillance. There is also a dedicated child safety section, where hotels are rated gold, silver, bronze or non-compliant. The information can then be shared between hotels, tour operators and travel agents. If a hotel’s rating is poor or it does not meet required standards, it will be assisted in implementing the necessary improvements. Travelsafe chief executive David Perl claims the system provides a cost-effective way of helping the travel industry ensure the safety of its customers, and that ‘while it is impossible to legislate against all eventualities, the Travelsafe system sets a safety standard for the industry and provides detailed information that can be shared by all the companies and organisations’.

Unsafe accommodation blacklist

British consumers, whilst being concerned about the state of the environment, are not about to change their travel habits to take it into account, says research from YouGov. Citing figures from the government’s website, Prudential Travel Insurance has reported that 24 million Britons will head abroad for a holiday this year, and while most of them agree ‘in principle’ to the increase to air passenger duty for short-haul flights, 19 per cent said they would not adjust their holiday plans accordingly to reduce their carbon footprint. Only 11 per cent of respondents to the survey suggested that they would fly less in future to reduce their negative impact on the environment. Only three per cent said they were ‘greatly discouraged about flying’ on the back of the tax hike.The survey followed the announcement from the Intergovernmental Panel on Climate Change that there is now overwhelming evidence that humans have contributed significantly to global temperature increases in recent decades. Phil Southgate from Prudential Travel Insurance observed, “We all have a responsibility to protect the environment so it will be interesting to see over the next few years what impact, if any, the tax will have on the travel industry.” A separate report on the industry from Fool.co.uk has found that most consumers are wiling to adopt green practices ‘if the price is right’.

Brits betray green ambitions

continued on p.39

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NEWSWIRE

British scientists have warned a summit on the Antarctic that soaring numbers of tourists flocking to the region on cruise ships could have very serious environmental implications for the world’s last great wilderness. Delegates at the annual meeting called for tougher safety regulations to be placed on the ships – just one single fuel spill from a stricken vessel close to shore could cause pollution so significant it would endanger the region’s already dwindling wildlife and take years to rectify. The meeting comes in the wake of the first accident involving a tour boat in the region: the Norwegian MS Nordkapp ran aground in January, spilling just a small amount of fuel. However, John Shear, of the British Antarctic Survey, said that although no one was hurt, and ships nearby helped, the incident was a ‘wake-up call’.It is predicted that close on 30,000 people will descend on Antarctica to observe penguins, seals and seabirds this year – nearly four times as many as 10 years ago. In recent times, huge numbers of tourists have started to visit the remote, icy landscape

of the Antarctic, but now they are not just coming in former research vessels; instead they emerge in vast liners, which spend a few days in the region as part of a holiday. Earlier this year, the 109,000-tonne Golden Princess became the biggest cruise ship to sail through the region, carrying 3,700 passengers and crew.Tourism in the area is currently regulated by the International Association of Antarctic Tour Operators (IAATO), which sets out strict guidelines for vessels. But, the catch is that the system is voluntary, and there are a number of operators who, for several years, have not been members. The IAATO welcomed the comments from the British scientists, saying they would give the body more teeth and encourage tour operators to sign up to the Association.

Wilderness threatened by tourism

Research by tour operator Thomas Cook has found that 16 per cent of consumers who research their holidays online will then go out and book it in a high street branch of a travel agent. The company said that the information had prompted them to make sure it offered its customers a variety of booking channels. Ian Derbyshire, executive director of Thomas Cook’s Holidays Division, said, “The trend is that a lot of our customers want to be able to touch our organisation how and when they want to, whether that’s the ability to go into a shop, through a call centre, or online.”

The company’s latest industry report also predicts that as people’s lives become busier, many will actually turn their backs on the Internet as a way to book holidays. Instead, states the report, consumers will turn to experts who provide a ‘concierge-style personal service’. Some travel agents, it was predicted, will adapt to take advantage of the new wave by re-branding themselves as ‘personal travel consultants’ or similar.Mr Derbyshire said Thomas Cook has managed to keep the package holiday element of business alive

only by adapting over the years. Rob Burgess, however, the company’s executive director for sales and distribution, said the industry first needs to re-define the term ‘package holiday’: “We need to make people more aware of the value it gives,” he said. “My friends tell me they’ve never been on a package holiday, when in fact they have been, but it’s not the kind where you’re on a coach singing songs all the way to the hotel!”Elsewhere in the report, the future hot favourites

for holiday destinations

have been considered, and the hot tips for 2008 are China, Vietnam and Oman, with China in the lead thanks to its hosting of the Olympics. Mr Derbyshire commented, “Also, China and Vietnam are examples of a different trend we are seeing where people are looking for culture and history as well as great beaches.” According to the report, bookings to Sardinia are also tipped to soar over the coming year, due to new flight routes to the destination, while Egypt, Dubai, Cuba, the Maldives and Mauritius are also set to benefit from increased tourism revenues in 2008.

Booking trends revealed by Thomas Cook

Just three years after the Olympic Games were hosted, Athens has established itself as a key city break destination and is now gearing up to host

the Reed Travel Exhibition’s City Break 2007 show, which will see buyers and suppliers of city breaks descend on the Greek capital. According to IPK’s World Travel Monitor, city-based tourism accounts for almost 40 per cent of total European outbound trips. In light of this, Athens is making the most of its post-Olympic potential and is promoting the capital city as a year-round destination. Hotels and airlines are teaming up to create enticing packages highlighting the city’s cultural attractions alongside more contemporary options like casinos, fashionable restaurants and chic bars.

The key to post-Olympic growth in the city’s tourism sector has been the overall increase in international passengers travelling to Athens for leisure, which, since 2004, makes up 40 to 50 per cent of foreign visitors. As reported by Athens International Airport (AIA), in 2006 alone, international leisure travel to Athens enjoyed a 20-per-cent increase. In addition to the dense network of conventional carriers, AIA also reported a 30-per-cent increase in low-cost carrier passenger traffic for 2006.Meanwhile, a Travelcare survey of the top 10 best-selling European cities has found that Prague is the cheapest for a weekend break, followed by Budapest, London, Barcelona, Rome, Copenhagen and Dublin. The survey also found that the largest European metropolises are the true winners when it comes to city-break tourism. Over the five years between 2000 and 20005, Berlin, Barcelona and Prague were the leading cities in terms of growth, with a reported increase of more than 550,000 bed nights each year.

Athens capitalises on potential

The office of the prime minister in Australia has announced a package of additional funding to the Royal Flying Doctor Service (RFDS) to the amount of AU$154.4 million over the next four years, bringing the government’s total funding support for the organisation over this period to $250 million. The funding will ensure that Australians in remote and rural communities continue to have access to vital health services such as emergency medevac, primary health clinics, teleheath consultations and community care clinics. For the first time, the government is also going to provide additional funding to support the capital

requirements of the RFDS, including aircraft updating and replacement; it will also provide a contribution towards the purchase of an aircraft for the delivery of services to Central Australia. Another first for the government is that it has decided to provide funding for the RFDS to provide primary care services to the remote Bass Strait Islands. The overall funding package is a major boost to the Commonwealth’s 75-year commitment to the RFDS, and will help to ensure the long-term sustainability of this iconic organisation.

Air ambulances often fly into rough terrain in bad weather in an attempt to save lives. These conditions, combined with competition for business, can often contribute to air ambulance helicopter accidents. Increasingly, air ambulance companies are turning to better technology to try and improve their safety records, but company officials are aware that the tendency among pilots to fly in unsafe conditions is still causing accident rates to rise. Ed Stockhausen,

director of safety for Air Methods, said, “We’ve been struggling with these issues for as long as I’ve been in this business. The reasons we were having accidents 25 years ago are still the same reasons we’re having accidents today.” Following two accident-free years at the company, three people died last December in the crash of an Air Methods helicopter in California, operated by subsidiary LifeNet Inc. A Government Accountability Office (GAO) report released last month to the public drew attention to an accident rate within the air ambulance industry that is higher than historical norms, and subsequently called for better oversight by the Federal Aviation Authority (FAA), together with a request for more data on the industry’s safety record. The number of accidents involving

A popular maker of air ambulance helicopters, US-based MD Helicopters has announced recently that it has achieved its primary goal of ‘bringing back the American legacy’. As the company nears the two-year anniversary of its acquisition by investment funds, managed by Patriarch Partners, company chairman and CEO Lynn Tilton said, “Today MD is a strong, viable company with a core of world-class operation talent and a product line that customers love.” The latter is certainly true – with 20 aircraft deliveries made

to date so far this year, the company is certainly proving itself to be popular among all segments of the aviation sector.As MD continues to reach major milestones and to execute its strategies

for new aircraft, Tilton expressed frustration that the industry rumour mill had suggested the company was for sale – a notion she confirmed was not true. In addition to robust aircraft delivery figures, MD Helicopters is, said Tilton, a much stronger and better-managed company. Customer confidence has increased significantly, because aircraft are constantly being booked, manufactured and flown. She emphasised her point by saying, “Two years ago, the company doors were being shuttered, but now they are open and we welcome our customers to walk through them. The rumours are rooted in the past, and we have closed that door. We are quietly focused on the future.”

LIghTWIRE

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International Travel Insurance Journal n www.itij.co.uk

An appeal to get Hertfordshire, UK, its own air ambulance is now up and running thanks to an

initial donation given by a local solicitors firm. There is currently no air ambulance serving the county, but the neighbouring Essex air ambulance trust has started an appeal to pay for Hertfordshire to have its own service.

Canadian Global Air Ambulance has announced that it has recently acquired an ICU-equipped

Learjet aircraft, making it the company’s fifth purchase of a Lear35.

A donation of vital medical equipment worth £2,567 from Paycare Healthcare Cash Benefit

Plans has been given to County Air Ambulance in the UK. The contribution includes paediatric spinal boards and rescue blankets.

Carolinas Medical Centre, in North Carolina, is seeking regulatory approval to replace a fixed-

wing air ambulance with a twin-engine helicopter. The projected cost of the aircraft is $6.3 million. Currently, CMC’s air ambulance programme comprises two helicopters and three fixed-wing aircraft to transport patients in NC to other states and countries.

The Dorset and Somerset Air Ambulance, in the UK, has moved its operating base from

Henstridge Airfield to AgustaWestland in Yeovil. The charity can now reach all parts of the two counties it serves within 19 minutes of an emergency call.

European Air Ambulance, formerly DRF and Luxembourg Air Rescue, has taken delivery

of a brand new Eurocopter EC135P2i direct from Eurocopter. Serial 0556, the aircraft arrived fully equipped and is expected to be in service immediately.

REACH Air Medical Services has ‘reached’ a hallmark of 20 years of service to the residents

and visitors of Northern California and Western Oregon. The service has transported more than 30,000 patients throughout its operation.

A £15,000 fundraising appeal for life-saving defibrillation equipment has been launched by

Wales Air Ambulance. The charity says it needs the equipment for its helicopter covering mid and southeast Wales in time for the busy summer period.

Commonwealth boost for RFDS

Physicians join crewEngland’s Sussex Air Ambulance is adding to its life-saving repertoire, with the addition of three new paramedics to the crew. The charity has recruited the physicians to join the paramedic crews on the helicopters that fly to emergency medical scenes across the county. When the positions were posted, the service was inundated with applications from caregivers around the world.South African Colin Mitchell was embarking on a trip around the world when he saw the job advertised and has decided to postpone his trip to come and work in the UK as one of the new paramedics. The second recruit is Dr Rosie Furse, a former specialist registrar in emergency medicine at Oxford University. She regularly tours with the British Motorcycle Racing Team and is an extrication doctor for the F1 team at Silverstone. Rounding out the team is Richard Forbes from Perth, western Australia. An accident and emergency consultant, he was also team physician for Rally Australia and the Australian V8 Supercar Championship.David Philpott, chief executive of Sussex Air Ambulance and chairman of the Association of Air Ambulance Charities, said, “We believe the unique combination of skills possessed by paramedics and doctors benefits the patient and enables us to save more lives. Across the UK, air ambulances are following this model and we believe that it will make a real difference.” Recent research conducted in the UK on physicians in the pre-hospital setting showed that, in 15 per cent of cases, the early availability of a doctor made a critical difference in a patient’s recovery.

Silver State partners with Sun CareJerry Airola, president of Silver State Helicopters, has recently announced a new joint venture with Sun Care Air Ambulance in Yuma, Arizona, to supply helicopters for its critical care medical transport service. With this new partnership, Sun Care Air Ambulance will be renamed Silver State Air Rescue. Currently, Sun Care has no fixed-wing aircraft, but as a result of the new venture, Silver State Helicopters will provide three Bell 222 helicopters and one Bell 230 helicopter in addition to its existing fleet.For 13 years, Sun Care Air Ambulance has been an EMS provider offering services such as hospital-to-hospital transport and on-scene accident response. Each air ambulance is equipped with an intensive care module unit, designed specifically for the transport of critically ill patients.

The phoenix rising

Industry information needed

continued on p.39

photo©RFDS

Another row about the new Scottish Air Ambulance Service (SAS) has broken out, following an incident involving an 89-year-old woman who had to wait almost 48 hours for the air ambulance to airlift her to hospital from the remote isle of Foula. The SAS has blamed bad weather for the delay in picking up Edith Gray Dykes, who was in need of hospital treatment on the mainland. Islanders are furious about the delay, saying it casts serious doubt over the quality of the service, which was brought in in April last year. In its defence, the SAS said that as Mrs Gray’s condition was not life threatening, it was not prepared to travel until conditions improved.One islander said to a local paper, “The excuse was it had been bad weather, but I understand flights were flying in and out of [local airport] Sumburgh on Friday and Saturday and the weather was OK in Foula.” The airport manager has confirmed that commercial flights ran as normal on those days, despite the weather not being ideal. SAS spokesman John Morton said that the weather was worse for flying than had been intimated, and added, “Just because flights are managing to get out of Sumburgh, we are not going to start risking the lives of our staff unless there is another life at risk and that was not the situation in this case.” The debate over the effectiveness of the new SAS continues apace.

Reviving aviation technology first mooted more than �0 years ago, a British company plans to develop an entirely new type of VTOL aircraft. Robin Gauldie has the latest

Rescued by flying saucers? It sounds like something from the golden age of science fiction. But a UK-based company, GFS Projects, is planning to build something that looks alarmingly like the UFOs of the 1950s – and medical evacuation is just one of the possible applications of a new type of vertical take off and landing (VTOL) vehicle that could eventually make the helicopter obsolete and which is certainly the first completely new VTOL technology to be floated in the last 40 years. GFS has released details of its initial plans for ‘Coanda-effect’ aircraft and plans to have a prototype in the air later this year, according to managing director Geoff Hatton.Unmanned aircraft with a diameter or ‘disc span’ of around 1.2 metres could be commercially available by the end of the decade, and one of the key applications – along with military and police surveillance uses - could be unmanned deployment of medical facilities. Hatton also says a larger crewed version, with a disc span of 30 metres, could revolutionise aeromedical evacuation. Pretty good going, you may think, for a company that got its first test vehicle, powered by a car radiator fan, off the ground less than 18 months ago. But former hovercraft engineer Hatton (GFS stands for ‘Geoff’s Flying Saucers’) is already being taken seriously by the US defence establishment.

According to Flight International magazine, GFS has already been awarded a US Army contract to demonstrate Coanda-effect flight, which generates lift by driving airflow downward over a curved surface.Discovered in 1930 by the Romanian aerodymanic physicist Henri-Marie Coanda, the

effect allows vertical take off and landing, fully controlled flight and hovering, and is aerodynamically stable. With no exposed rotating parts and very little downwash, it could prove especially useful for medevac in urban environments and other cramped situations that pose problems for conventional rotorcraft. So much for blue-sky development. The reality is rather different. In ITIJ’s April 2007 Air Ambulance Supplement, paramedic Serge Avice du Buisson bemoaned the lack of cutting edge inventions and discoveries being regularly tested and brought on line

for the aeromedical sector, while recognising that most companies in the sector do not have the profit margin to invest in futuristic technology. In the public sector, many air ambulance operations run by health trusts in the UK and elsewhere depend on charitable donations to buy and maintain aircraft and equipment. It would be nice to think that we could develop new inventions and technologies for humanitarian purposes such as medevac on our own, but history shows us that without the bottomless pockets of the defence establishment projects to fund them, projects such as Geoff Hatton’s – like Coanda’s before him – tend to get left on the drawing board.

Flying saucers

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International Travel Insurance Journal n www.itij.co.uk

CAA issues warning

Spotlight on Beechcraft King Air 200

Emergency caller waits for weekend

… GFS has already been awarded a US Army contract to demonstrate Coanda-effect flight, which generates lift by driving airflow downward over

a curved surface. Capacity: Flight crew of one or two Medical crew - two Stretchers - one or two Range: 3,254 kmMax take-off weight: 5,670 kgCruising speed: 523 km/hWingspan: 16.61 metresLength: 13.34 metresToilet: YesMaximum altitude: 35,000 feet

King Air 200 Specification

Consumers in the UK are being warned to check that their holidays are covered against insolvency during the peak booking period for the summer holidays. The Civil Aviation Authority (CAA) has estimated that more than 18 million people will organise their own ‘DIY’ holidays using different travel components this summer, and has subsequently issued a warning advising consumers to double check their insurance coverage. The move was prompted by the failure of HCCT (Holidays) Limited, trading as CT2 and Loco Flights, which collapsed just before Christmas. Following the company’s demise, the CAA had to repatriate 1,000 holidaymakers from Tenerife and is giving refunds to all customers with advance bookings. CAA spokesman David Clover said: “The failure of HCCT Holidays highlighted to many people who booked flights with the company the value of Air Transport Operators Licence (ATOL) protection, the organisation of repatriation flights by the CAA at no extra cost, and the guarantee of a full refund for those unable to travel.”

©Phil Vabre

Raytheon Aircraft Company’s Beechcraft products are used throughout the world in a variety of air ambulance and medical evacuation roles. The pressurised fuselage makes the Beechcraft King Air 200 well suited for air ambulance missions, while providing patient and medical attendant comfort. The standard cabin entry doors accept air ambulance equipment without any modifications, and an optional cargo door with integral ‘airstair’ door is also available.The cabin interior can easily support both single and dual-base medical units with stretchers, and it also provides the necessary medical storage cabinets and seating needs for flight attendants and one family member.

1� HEALTHMATTERS

International Travel Insurance Journal n www.itij.co.uk

The water supply to the town of Galway, Ireland, has been hit by an outbreak of the parasite cryptosporidium, with up to 170 people now confirmed to have been hit by a serious stomach bug as a result. The outbreak has severely affected homes and businesses in Ireland’s third-biggest city, and residents have been warned that the crisis could last for months. Doctors have issued warnings that the parasite could be life threatening, especially to young children, the elderly and those with a low immune system. Tests found that the city’s water supply contained nearly 60 times the safe limit of cryptosporidium pollution, meaning that residents have been unable to drink or use water for food preparation, and

have also complained that the authorities have provided no free alternative. Galway City Council told the BBC that health authorities had advised it that tankers of free water could create further health problems, by increasing the spread of bacteria. The mayor of Galway, Niall O’Brolchain, has called on the Irish government to provide more funding for water treatment services.Business leaders have expressed concern over the impact the crisis will have on what is traditionally the beginning of the tourist season in the west of Ireland. One hotelier said it was costing him up to €2,000 a week to provide bottled water for his guests, and he was now being forced to install his own filtration system.

Cholera reaches Congo’s capitalAn outbreak of cholera has claimed its first victims in the capital of the Republic of Congo, after 80 deaths in the port town of Pointe-Noire this year. Official figures show four deaths and 10 cases in the capital so far, mainly continued within Brazzaville’s densely populated southern suburbs. There are fears the disease could spread quickly, overwhelming ill-prepared medical services, according to sources in the area. The outbreak reportedly began in November last year, but was only confirmed

recently. The head of the infectious diseases unit at a hospital in Makelekele in southern Brazzaville warned that they were simply not ready to cope with an outbreak: “We have just six beds located in just one room where we are isolating the sick – even the personnel currently caring for these cases have not been trained to deal with this situation.” Medical charity Medicins Sans Frontieres is on standby in the area to offer isolation tents should the outbreak spread.

Asia to test human flu vaccineAn experimental H5N1 bird flu vaccine for humans will be tested in Hong Kong, Singapore, Thailand and Taiwan this year, and will involve more than 1,000 people, says a co-ordinator on the project. Developed by a European drug-maker, the vaccine uses an inactivated strain of the H5N1 virus isolated in Vietnam, where the disease has killed 42 people since late 2003.Daniel Chu, principal investigator for the project in Hong Kong, told Reuters that the test is a multinational Phase three trial, but declined to identify the pharmaceutical company behind the project. The key to the new vaccine, said Chu, is an adjuvant, which reduces the dose of the vaccine. Adjuvants are additives that enhance the effect of drugs or vaccines; dosage is important because if a small amount of vaccine is effective, it allows more people to be vaccinated.This vaccine is one of a small but growing number of inoculations being developed to fight the H5N1 virus, which experts fear could trigger a pandemic killing millions if it learns how to transmit itself effectively between humans. The vaccine, to be produced using egg cultures, will require three injections, with the second to be administered on the 21st day and the third six months after the first shot. There are now at least four major strains of the H5N1 virus, some of which are already being used by pharmaceuticals to design pre-pandemic or experimental vaccines.

The World Health Organization (WHO) is expanding its global effort to eradicate chagas disease – a killer that still affects nine million people across the world – through a partnership with Bayer Healthcare. The German-owned company has agreed with the WHO that it would ‘provide funds to expand the Organization’s

chagas elimination efforts, along with 2.5 million [nifurtimox] tablets free of charge’. Nifurtimox is one of the two drugs used in the treatment of the disease. The hope is that the agreement will allow the treatment of an estimated 30,000 patients over a period of five years.Chagas disease is a parent affliction of trypanosomiasis, and for decades has mainly affected those living in rural areas of Latin America. However, large migrations, blood donations and poor safety in blood banks in many countries have led to the infection spreading outside the Latin American continent: chagas in now present in Europe, and various parts of the US. The remarkable point about the disease is that it is almost completely silent – symptoms can appear many years, even decades, after the patient has been infected, which occurs through picking up the triatomine bug from contaminated faeces.

Partnership made to fight chagas

Irish parasite troubles

US President George Bush has recently unveiled his latest measures in the US government’s efforts to combat malaria in Africa. Speaking at a White House event on Malaria Awareness Day, he said that 500,000 insecticide-laced bed nets would be sent to Zambia and Uganda. At the same time, he announced the launch of an initiative in Madagascar to address the dual threat there of malaria and polio. According to US officials, the government’s two-year programme has already helped an estimated 11 million people in Africa. However, there are currently tens of millions of Africans that are affected by malaria, and more than one million people die each year from such infection.Mr Bush – whose $1.2-billion plan aims to halve the disease’s mortality rate in target nations within five years – said malaria was both preventable and curable. In order to stem the tide of the disease, he continued, there needs to be provisions of insecticide-treated bed nets, expanded insecticide spraying, the provision of anti-malaria medicine to pregnant women and the delivery of cutting-edge drugs to sufferers. He also pointed out the success Washington DC had in eradicating the disease a century ago, noting that hot conditions in the capital used to force Congress to flee for months at a time – something, he said, that was perhaps not a wholly bad idea!

Bush announces plan for malaria

Australian Prime Minister John Howard has said that the country should refuse to allow migrants or refugees with HIV to enter the country, after being asked about the issue during a visit to Victoria state, which has seen a sharp rise in HIV cases. Mr Howard said that there could be some special cases where an exemption could be considered, but that as a rule, HIV positive people should be denied entry. Victoria’s public health officials have blamed the rise in HIV cases partly on overseas immigrants, but also on Australian residents relocating from other parts of the country. Between 2000 and 2005, infection rates rose by 41 per cent across Australia.Any ban for migrants with HIV/AIDS would need a change in federal law, but Mr Howard, who has now been in power for 11 years, is known for his tough stance on immigration. He likened his proposal to the ban already imposed on people suffering from tuberculosis. David Puls, a solicitor from New South Wales HIV/AIDS Legal Centre, said the law allowed immigrants to be denied access where there are public safety concerns, but that ‘the Medical Officer of the Commonwealth does not consider HIV to be a public safety concern’. He added that HIV couldn’t be compared to TB, as the latter is airborne and contagious, while HIV is transmissible, but not contagious.

Howard calls for HIV migrant ban

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A tropical worm disease that has plagued people since ancient times could be eradicated in less than two years, according to experts from the World Health Organization (WHO). The WHO said Guinea worm disease, or dracunculiasis, now affects just 25,000 people in nine countries around the world; whereas in the 1980s, an estimated three million people were infected in over 20 countries. The worm causes crippling leg ulcers that can grow to the size of a tennis ball.Newly worm-free countries include Mozambique, Tanzania and Zambia, which were some of the 12 countries that were announced to be clean in March this year. If progress continues at the current rate, the disease could be eradicated within two years, said Lorenzo Savioli, WHO director of Neglected Tropical Diseases. At present, the disease continues to be endemic in certain parts of sub-Saharan Africa, but hopes are high for an end to dracunculiasis once and for all.

Worm disease on the way out

In Africa, three people have died in a cholera outbreak caused

by water contamination in Zimbabwe’s increasingly chaotic towns and cities. The deaths are the first fatalities to be

officially reported since the disease first appeared

in the country last month. Nineteen people in the eastern

Mabvuku township have been taken to hospital and residents

have reported that although many more are ill, the majority cannot

afford to go for treatment. Health minister, David Parirenyatwa, said the cholera threat was under control, but outside health experts have disagreed. One doctor from Harare, who did not wish to be named, said that the outbreak was a direct result of the government’s ‘neglect of basic services’. “The systematic decline in standards is a threat to public health. Child mortality is rising, life expectancy is dropping,” he said. The cholera deaths serve to highlight Zimbabwe’s rapidly declining health system – until recently, the country enjoyed the reputation of having one of the highest standards of public health in Africa; but since 2000, the quality of sanitation in the country has fallen dramatically.

Cholera takes hold

Despite vaccines for the disease no longer being in short supply, more and more people are perishing at the hands of bird flu across the world. The latest news is that three people in Indonesia have died from the disease, taking the country’s death toll to 69, according to local health officials. The virus has claimed the lives of a boy aged 15, a 22-year-old woman and a 40-year-old man in separate parts of the country. Meanwhile, in Egypt, a 15-year-old girl has died of bird flu, after apparently contracting the disease merely by buying a chicken at a market, a WHO official stated. The patient was admitted to hospital in Cairo, but died four days later of respiratory failure, despite treatment with Tamiflu and being placed on a respirator. The death brings to 14 the number of Egyptians to have succumbed to the H5N1 virus since it first appeared in the country last year.

Bird flu update

Extra help is now at hand for those travellers who are concerned about the risk of deep vein thrombosis (DVT) when travelling on a long flight. The circulation booster mobile is a little gadget – no bigger than a phone or iPod – that will keep circulation in the legs flowing freely while a traveller happily lies back and snoozes away an eight-hour flight with no worries. The simple to use, take-anywhere gadget works by sending scientifically designed electrical impulses to stimulate the nerve endings and muscles in the legs via unique silver-woven socks. The only way a person knows he has them on is by a slight tingling sensation in the calves and toes.The risk of DVT related to long periods of immobility has been known for some years, however it is not known whether air travel itself is a risk. A recent history of travel was found in 24 per cent (39 out of 160) of patients who presented with the problem. Of the 39 people,

nine had undertaken air travel, two had travelled by train and 28 by car. A further study then concluded that the risk of DVT was increased during the two weeks following a long-haul flight, with the severity of the problem determined by the length of the flight. It has also been claimed that an estimated eight to nine thousand British airline travellers develop DVT each year, with the condition claiming between 500 and 1,000 lives.

Keep DVT at bay

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People today are more aware of cancer - possibly because of better diagnostic tools that allow the disease to be detected earlier, meaning sufferers have a better chance of living longer. The average patient also has access to better care, so is eager to rejoin life. These factors, together with improved drugs, all mean cancer patients have a vastly improved chance of living to old age.In the UK alone, there are over 1.2 million people living with cancer and more than 5,000 people diagnosed each week: one in three people will be affected by cancer at some point in their lifetime. Having said this, 80 per cent of cancers are in those aged over 50. Nevertheless, patients will more than likely want to continue with as normal a life as possible, and doctors will advise taking a holiday after treatment, for which those patients will need travel insurance.

Flat refusalUK charity Macmillan Cancer Support says people affected by cancer are being short changed when it comes to travel insurance, and so is launching its Recovered But Not Covered campaign to help cancer patients get a better deal on this type of insurance. In a recent survey, patients complained about the difficulty of obtaining insurance (one enquirer was quoted over £2,000 for cover that eventually cost them £60), and were unhappy in particular at the insensitive way staff often questioned them. Mrs Stam from Glasgow, inquiring about insurance for her cancer patient husband, was asked: “Is your husband going to die?” and “How long has he got?” Anger at treatment like this is repeated time and time again by patients taking

part in a current Macmillan and Royal Bank of Scotland (RBS) survey looking at the way in which travel insurance enquiries for cancer patients are handled.One particular problem was highlighted by travel lawyer Alan Bowen of AGB Associates: “Patients tend to book a holiday before they have booked travel insurance,” he said, and this can lead to massive problems when they try to sign up for their tour operators’ insurance. It is likely they will be refused cover, or

they may have decided – or had the decision made for them – that as they have, or have recently had, cancer they

must find their own medical insurance. Either way, this can be a minefield, resulting in anguish and dismay when they have their

confidence undermined by refusal, through no fault of their own.

When challenged, the tour operator often cannot justify why they are refusing cover. Ayesha

Owusu-Barnaby, head of campaigns and public affairs at Macmillan Cancer Support,

says: “Hundreds of people contact us about travel insurance every month. They tell us they’re being refused travel insurance or quoted massive premiums and they just don’t understand why. Some people also tell us that the insensitive attitudes of some

travel insurance sales staff leave them deeply upset.”Why does this happen? One explanation in the UK is that when, in January 2005, the Financial Services Authority took over regulation of insurance brokers, many insurance

companies took a long, hard look at their policies, and decided to tighten up on the conditions they were prepared to cover.

Clients have since complained of the

Covering the big ‘C’

Specialist travel insurers cover cancer patients seemingly with little difficulty. Verite Reily Collins, therefore, asks how the wider travel insurance industry can better respond to their requirements

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common ‘tick box’ screening process where every company seems to be asking the same questions - rather than assessing each individual and liaising with their doctor on health issues. Where next?So, where do cancer patients find companies prepared to insure them? First stop might be their country’s association of travel agents, but as Jada Irmin of the American Association of Travel Agents says: “Unfortunately, we do not have that kind of information.” The association has travel insurance companies as members, but it does not know if they provide specialised cover. There are companies in North America, however, such as Canadian company World Travel Protection, which provide cover for cancer patients. Its CEO, Dr Ron Mayer, commented: “Our company offers an individual medical underwriting service that includes cancer. The programme risk rates the individual, and evaluates risk of an event during a defined trip, assigns a premium and if accepted covers the condition without a pre-existing exclusion.”The Association of British Travel Agents, meanwhile, provides a list of companies that do insure cancer sufferers, and also advises callers to contact cancer research charities. However, some patients claim that even those insurers recommended by charities can leave them angry and frustrated due to a lack of understanding. At the end of the day, everyone’s cancer is individual to them, and there is no blanket travel cover that extends to everyone - you get what you pay for. A specialist broker is needed to ensure that everything necessary will be covered. In actual fact, though, cancer patients are probably one of the healthiest groups to insure. Modern drugs mean patients are able to live a long and healthy life: the diagnosis often acts as a wake-up call, and most patients will voluntarily start to live a far healthier life than before. Many patients go abroad to take advantage of specialist medical spa pampering that gives them a better quality of life. The benefits of massage and reflexology for cancer patients is widely acknowledged, and citizens of France, Germany and other countries are often able to have monthly massages on their health scheme insurance during the five years after their cancer has been diagnosed. Even if they aren’t going to a specialist treatment spa, travellers with or recovering from cancer will take advantage of therapies on offer in the majority of hotels today – and this has to be good for health. Spas such as Klinic Bad Sulza in Germany (notably

good for overall post-cancer treatments) and Annecy in France (renowned for its treatments following all cancers, but particularly throat and mouth) and La Roche Posay (especially skin problems from cancer drug side effects) are well used to treating their own countrymen, while slowly but surely a few pioneer visitors from overseas are also tasting their benefits.

Seizing the opportunitySeeing a gap in the market for accessible and affordable travel cover for cancer patients, bio-scientist and ex-director of a Lloyd’s syndicate Krish Shastri started UK company Medi Travelcover five years ago at the request of cancer charities. The company developed a pioneering insurance risk assessment and underwriting methodology to enable the provision of travel insurance to individuals on active treatment for cancer including chemo

continued on p.22

doctors will advise taking a holiday after treatment, for which those patients will

need travel insurance

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and radiotherapy. This innovative underwriting technique is responsive to all cancers and enables risk assessment by each treatment stage of the different chemotherapy protocols. This year, the company was awarded the Queen’s Award for Enterprise (see ITIJ 76, Insurer picks up Queen’s award) to add to its already impressive list of accolades. Shastri commented: “Many patients are badly bruised by their experiences trying to obtain insurance, so I changed the company name to InsureCancer and put a label on the tin.” The management and treatment of cancer has come along in leaps and bounds, and mortality rates have declined – if you look at bare statistics there has been a complete turnaround. So, when considering a client, specialist cancer insurers look only for ‘fitness to travel’. “General insurers tend to draw a line in the sand,” said Shastri. “We are strongly clinically focussed. We factor in the destination of a trip and ethical issues associated with travel, and feel unable to offer travel cover for long-haul destinations without good medical care locally.” General insurers may offer good, medically based advice, but if they employ doctors rather than cancer specialists to evaluate risks, they are not specialists. However, national cancer charities are still clearly letting patients down as they take little interest in providing meaningful support and advice, especially regarding insurance. But Shastri says there are a number of aspects to travel, such as choice of destination, where national cancer charities can and should offer more insight. For example, they could suggest suitable areas to visit: for instance, inoculations for some areas can’t be administered to some cancer patients because they react with certain cancer drugs, and other long-haul destinations have

spent a fortune on building a glitzy international image but next to nothing on their hospitals and clinics. Also, it should be pointed out that anyone who has had chemotherapy or is on drugs such as Tamoxifen has a greater risk of deep vein thrombosis.

A helping handThe insurance industry does not have to be so brutal with cancer patients: even if they don’t provide cover, insurers should learn to say ‘We know a man who can’. As Shastri says, “Some patients call over 40 companies before they find [a

specialist cancer insurer].” Or else they end up not disclosing their condition. Alan Bowen advises all clients to ‘disclose your condition and previous treatment’, citing a case where a customer, who had bought a travel policy from a travel agency, collapsed at a bowls tournament in South Africa. The man admitted he had been refused insurance when he disclosed cancer, so went to another agency. Even though his collapse was due to an entirely unrelated condition, when the insurance company looked at his records and discovered he had had cancer, they refused to pay out. As part of its current research with Macmillan Cancer Support, RBS is asking people affected by cancer who need to purchase travel insurance to consider obtaining a quote for an RBS product from Direct Line Insurance. The company will look at how it interprets the medical information with the help of an expert clinical panel, assess the customer experience and make recommendations for staff training. In terms of the future, Shastri has so many enquiries from abroad that he is thinking of extending beyond the UK and Ireland, demonstrating the vast potential cancer patients provide the travel insurance market with – for those willing to take on the risk.

some patients claim that even those insurers

recommended by charities can leave them angry and frustrated due to a lack of

understanding

continued from p.21

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EUROPEAN

2007 InternatIonal travelInsurance conference (euroPean)9-10 May 2007

The World Heritage city of Bath was the backdrop for the eighth annual domestic ITIC, and what an event it proved to be! Hosted at various historic venues throughout the Georgian city, the conference attracted a broad range of international delegates from all sectors of the travel insurance industry, with the agenda provoking great debate on matters that are paramount to today’s industry. Social and networking functions were as popular as ever, with a Welcome Function at the dramatic Roman Baths proving a most enjoyable way to round off the first day’s proceedings, and a spectacular Finale Black-Tie Dinner concluding the conference at the famous Pump Room. Sarah Lee reports

Day oneChanges in travel insurance: market share and distribution

Speaker 1: Todd Davis, Senior Finance Analyst – Mintel

Todd Davis began his presentation with a look at the economic climate in Britain today, which he said is experiencing strong growth, with high levels of consumer confidence and retail spending, and room

in the economy to permanently increase prices for goods and services. This situation, he said, is unlikely to change any time soon. He also confirmed that air travel as a percentage of consumer spending is back

to record pre 9/11 levels, with independent travel gaining ground from package holidays and reducing the role of the travel agent – including their role in the insurance market. Continuing with his market analysis, Davis showed that a trend towards taking a couple of short trips a year instead of the traditional fortnight in the sun, together with a rise in overseas property purchases, is resulting in more people taking out annual travel cover. It has also likely boosted the number of overseas holidays taken annually, which has risen steadily since 2002 and is expected to reach 54 million by 2012. Changing consumer priorities, meanwhile, show that in just the last two years, greater importance is placed on spending on short breaks and eating and drinking out, whilst paying off debt has dropped in the priority stakes. Thus, “the travel market continues to boom

the Assembly Rooms

The next ITIC event will be held from �th - �th November �00� in Venice.

For further information, please visit

www.itic.org.uk. We look forward to seeing you there.

Additional information on future and past ITIC conferences is available at www.itic.org.uk.The website features a complete range of photographs taken throughout this year’s Bath event, which are available to download.

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as the holiday becomes a necessary spend amongst the British”, said Davis.This has inevitably led to the travel insurance market increasing in size in terms of gross written premiums (GWP). In fact, showed Davis, since reporting GWP of £490 million in 1997, the UK market has gown to be worth an expected £694 million this year. However, the cost of premiums is falling in real terms. Taking into account inflation, Davis showed that the average cost for a travel insurance premium has actually fallen slightly year on year since 2001, leading insurers to invest heavily in IT in an attempt to maintain margins in an increasingly competitive market. The good news is that, according to Mintel research, most travellers (86.3 per cent) take out travel insurance for trips abroad. This is despite a shift in the source of travel insurance purchases – from the traditional travel agent, which reigned supreme in 2000, towards purchasing from direct insurers, who have the largest market share in 2007, or the Post Office, and even free travel cover. Annual cover is also gaining ground from the single-trip market, added Davis, and AXA is the firm leader in the UK travel insurance market, with a 31 per cent share. Other prominent players include RBS and AIG, both of which hold a 10 per cent share.

Panel session – Is the travel trade equipped to sell travel insurance?

Panellist 2: Malcolm Padgett, Head of Insurance Regulation, Coffin Mew LLP

Malcolm Padgett is a specialist in law and regulation affecting the sale of general insurance in retail environments, and

came to talk to the ITIC audience about how travel agents will need to prepare for the likelihood of forthcoming Financial Services Authority (FSA) regulation. Having guided ‘secondary’ and ‘tertiary’ sellers of payment protection insurance (PPI) from code of conduct regulation to FSA regulation in recent times, Padgett now fully expects to soon be offering a very similar service to travel agencies. In fact, he said, these insurances are similar in that they are both sold as a ‘secondary’ product, where the focus of the consumer is on the primary product purchase, both are ‘sold’ rather than bought, and both are complex insurances.So, what will the impact of FSA regulation be? The new system will require those selling regulated

insurance to be authorised by the FSA, which is not just a matter of paying the fee and registering, but of meeting and maintaining specific criteria that will affect the whole system and management of a business. Accepted

businesses then have to comply with the rules of the extensive FSA handbook; but at least, said Padgett, these rules will allow a sales process to be developed to allow non-specialists to make an FSA-compliant sale. However, the FSA now places its emphasis more on a principles-based approach to regulation, with rules becoming subsidiary to concepts of fairness and integrity in business. Thus, explained Padgett, the FSA has started to look at whether a product treats customers fairly and whether the secondary sales environment allows insurance to be sold fairly; whether non-specialists can work to concepts of good practice in financial services; and whether it’s fair to customers if secondary sellers sell without advising. In the PPI market, he said, the FSA seems to think ‘not’ to most of these. Certainty, simplicity and risk – core issues at the heart of business – will all thus be affected by FSA regulation. And travel agents will begin to be monitored more closely by consumer groups, the Office of Fair Trading, politicians and the Competition Commission, said Padgett. But the overriding concern is that FSA regulation will mean travel agent staff will have to be equipped to the standard of a professional insurance broker to sell FSA regulated travel insurance.

Panellist 3: Andy Juggins, Chairman – ABI Travel Insurers’ Committee

Expressing his own opinion on the subject of whether travel agents are equipped to sell travel insurance, Andy Juggins thinks that they are probably not equipped to sell it properly. In the insurance industry it was found that self regulation was tantamount to no regulation, and despite the fact that FSA regulation has led to increased and unnecessary paperwork, hassle and expense, as a proponent of the ‘level playing field’ argument, Juggins feels that regulations should be the same irrespective of the sales channel. He doesn’t accept any of the Association of British Travel Agent’s (ABTA) exemption arguments concerning why it feels its code of conduct is sufficient

in place of FSA regulation, and believes that a travel agency is the least logical place to buy competitively priced travel insurance. Even if a travel agent passed all the required exams, said Juggins, they still would not have knowledge of

all the products on the market, nor would they have the necessary technology to be in a position to advise customers on travel insurance. And despite the small sample size of the Which? survey, its results ring true, he said: although ABTA may not receive many complaints relating to mis-selling, this is probably because it is the insurer’s name that is all over the policy, so they are the ones that deal with customer dissatisfaction.

As a secondary product, continued Juggins, travel insurance should especially qualify for regulation, and with people increasingly purchasing such cover from sources other than travel agents, it would be no big deal if some agencies stopped selling it. So, who should enforce

the regulation? None of the interested parties in this debate agree on all points, but the Association of British Insurers (ABI) has shied away from saying the FSA should be the body to regulate travel agents. Instead, it advocates the implementation of a regulatory model together with the development of an industry-wide code of practice, industry trading standards, and an extension of the Foreign Office remit. In effect, it would like to see a lightening of the regulatory regime for everyone involved in the sale of travel insurance, but it would nonetheless like a form of regulation that is the same or similar for all sales channels. Too many customers already do not understand what they are buying, said Juggins. Giving them additional paperwork will not help matters, but therein lies the challenge. Whatever the outcome of the Treasury Select Committee’s report, any regime must have teeth, he said, ensuring penalties for non-compliance.

Panellist 4: Mike Monk, Head of Finance – Association of British Travel Agents (ABTA)

The UK Treasury’s 2002/3 consultation on the regulation of the sale of travel insurance by travel agents concluded that such regulation was inappropriate, stated Mike Monk. Giving the audience background information on the current Treasury investigation, he explained that few respondents in the 2002/3 consultation provided evidence of consumer detriment in the market, and it was found that FSA regulation would have a ‘potentially significant impact on the profitability and viability of small independent travel agents’. The argument for a level playing field was found to be ‘less compelling’ than for general and motor insurance, and, added

Monk, misses the fact that ABTA doesn’t believe insurers should be regulated to the extent they are. The Treasury’s position was set to be reviewed in 2007, hence the current consultation, the findings of which are now overdue.Following the 2002/3 consultation, ABTA introduced compulsory training and exams for its insurance sellers, but apart from that, not much has changed, said Monk. There is no more evidence of mis-selling, which is a factor that must be apparent before the Treasury will enforce increased regulation and one that would also be balanced against additional costs. Thus, he believes there will be a new ‘light touch’ set of regulations, based around the issue of disclosure at the point of sale. This approach to regulation is backed up by other government bodies and review panels that generally advocate a reduction in government bureaucracy. Mis-selling, expanded Monk, is not about price, but selling inappropriate cover or giving incorrect information, although ABTA has not had to deal with any complaints in this area. Likewise, bodies such as the Treasury, the FSA and the Financial Ombudsman Service (FOS) have received minimal complaints relating to this issue. ABTA research meanwhile shows that the cover available from travel agencies is the same as that from direct insurers, brokers and banks, and that although the cost of cover varies it does so whatever type of outlet it is purchased from. For an industry that now sells around five million travel insurance policies a year, there appears, concluded Monk, to be very little evidence of mis-selling, and new ABTA research has found no evidence of consumer detriment in the marketplace. FSA regulation, however, would mean a reduction in consumer choice, as many travel agencies would stop selling travelling insurance, which would ultimately lead to more people travelling uninsured.

Panellist 5: Greg Lawson – Association of Travel Insurance Intermediaries

Ten years ago, began Greg Lawson, the travel trade accounted for 75 per cent of all travel insurance sales in the UK, but despite this

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figure having dropped to around 24 per cent, travel agents remain in the best position to convert a travel insurance sale. Where direct insurers have to spend on marketing to acquire travel insurance business, travel agents are poised to sell this insurance at the time the customer purchases

their holiday. They also have details of holiday duration, destination, ages of travellers, and so forth, on hand, so can provide suitable and immediate cover, maximizing market penetration – “Good news for both the traveller and government,” said Lawson.So why do travel agents come in for so much criticism? The ‘level playing field’ argument has become paramount for the regulated sector of the industry, but this is somewhat ironic, suggested Lawson, considering its recent lobbying of the FSA to reduce the burden of regulation it currently shoulders. The prices charged by travel agents for insurance has also come in for criticism, but this is not mis-selling, he explained. As long as a sale is transparent and the customer understands what they are buying, there is no ‘detriment’ even if the same policy is clearly available at a lower price elsewhere.The key word in this debate, then, is ‘equipped’, stated Lawson: “If a travel organiser is provided with selling tools by a regulated insurer or broker, there is no reason to believe the customer will be at risk of mis-selling.” The agent, though, has to work to implement necessary sales procedures and the insurer should ensure they are being followed. At the end of the day, tools and training determine competence over time. It is the experience of the ATII, continued Lawson, that an unregulated sale does not, however, mean an increased risk of consumer detriment. But the reputation of the whole industry is at risk while there are still unregulated travel organisers, so there is a case for some form of regulatory responsibility to protect consumers. The same level of product information should be given no matter where the policy is purchased and this should be regulated across the whole industry, suggested Lawson. Despite the changing nature of the travel trade, there are tools and sales methods available to assist it if it can adapt its attitude to price and distribution. In effect, he concluded, the ‘founding fathers’ of the travel industry and their suppliers need to ‘move with the times to avoid extinction’.

Panellist 6: Reidy Flynn, Insurance Division – Financial Ombudsman Service (FOS)

Reidy Flynn gave us her expert ombudsman opinion on how to sell travel insurance properly, stating that the limitations on these ‘exceptionally complicated’ and ‘widely misunderstood’ policies need to be made clear. The travel trade, she suggested, could sell ‘emergency’ or ‘disaster’ cover instead of ‘all-inclusive’ or ‘extra-wide’ cover. And why, she asked, do insurers continue to cover for baggage, when this is often covered on a home insurance policy?

Travel insurance seems to be based, said Flynn, on exclusions instead of questions, when really this ‘contract of good faith’ should be collecting full and frank information from customers at every stage – application, renewal and claims – rather than choosing instead to include a

variety of limitations. Pre-existing medical conditions are the most important exclusions, she said, and they should be made clearer to travellers, especially as some insurers use wider exclusions than others. In such cases, the ombudsman would look at the questions asked at the point of sale if a complaint arose. The FOS is also concerned that many policies do not include cover for cancer suffers, and the problem here lies especially with annual or ‘indefinite’ policies, where a person’s condition could reasonably change after the policy is bought. Other common exclusions include extreme sports, alcohol consumption and valuables – all of which need to be highlighted at the point of sale. And insurers’ use of the term ‘reasonable care’ is often applied in strange ways or interpreted too stringently. The market is changing very quickly, said Flynn, and the FOS is seeing more complaints about policies bought in non-traditional ways, but sales channels

such as the telephone or Internet have the advantage of being able to better prove what information was collected from and given to the customer at the time of purchase, compared to over-the-counter sales channels. If a policy summary is clear and not mis-leading, surmised Flynn, the ombudsman is unlikely to uphold a complaint.So, who is responsible for explaining the insurance cover? This, said Flynn will come back to the policy documentation and summary, so underwriters play an important role in making wording simpler. Wording should at least avoid the cross-referencing of points and should include a clear table of benefits, suggested Flynn.

After a brief presentation from each of the panellists, questions were taken by the panel from the audience. Andy Cooper, Director General of the Federation of Tour Operators joined the panellists for these open forum sessions and helped provide a valuable insight into the tour operator’s stance on the sale of travel insurance and issues relating to mis-selling.

Day twoPanel session – Insurance fraud: who’s to blame?

Panellist 7: Professor Graham Lucas, Psychiatrist – Priory Healthcare

Giving us an insight into the mind of a fraudulent claimant and why they feel their actions are acceptable, Professor Graham Lucas explained to the audience that people are vulnerable when angry, hungry and/or tired, so their mood is accentuated when they arrive after a long trip to find their luggage has been lost. There is also ‘anticipatory anxiety’ related to travel, which is where a person may be worried about whether their luggage will arrive or not. Travel in itself, said Lucas, is an emotional experience as most reasons for a trip have some

form of emotional attachment – whether it’s a holiday, business trip, relocation, or a trip for compassionate reasons. And there are other factors about most journeys that accentuate frustrations, such as delays, annoying passengers, and a heightened fear of

flying post 9/11. Add to this the traumas or medical conditions a person may be harbouring before even embarking on a journey and you begin to see how and why travel accentuates vulnerabilities, which could very well lead to a greater attachment to one’s personal belongings and a greater feeling of subsequent loss if those things go missing in transit. Thus, said Lucas, there should be better support at airports for people who have lost or damaged baggage to deal with the stress they are feeling.When stressed or depressed, a person may act out of character, hence the ability for some people to exaggerate a claim or indeed make up details altogether. People’s memory may also be worse than others, so they may not remember what they packed or how much it cost, but this is often not helped by the fact that people tend to drink alcohol or coffee on a flight, thus becoming dehydrated, so their concentration is impaired when it comes to making a claim upon landing. There is, meanwhile, the attitude that as a claimant, you are a ‘small man’ fighting the ‘corporate bully’, and many people are obstreperous about claiming as they feel they are often deceived by the small print in a policy. So, what can insurers do to combat fraudulent claims? Essentially, people are more likely to be dishonest, told Lucas, if filling in a form as opposed to being asked questions over the telephone or in a face-to-face interview, so policies could make it clear that claims could be dealt with in this way.

Panellist 8: Lynda Calloway, Claims Director – Claims International

Who’s to blame for insurance fraud? Well, it comes down to human nature and greed, but the insurance industry has let people get away with it for too long, began Lynda Calloway. Fraud, she explained, cost personal lines insurers £1.5 billion in 2006, according to the Association of British Insurers. If this isn’t incentive enough to do more to combat the problem, the Financial Services Authority (FSA) requires insurers to work towards reducing financial crime; but, said Calloway, it is still essential to protect the genuine claimant/insured - why should they have

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to pay a higher premium because of other people’s fraudulent behaviour?So, the industry needs an effective screening process to detect false claims, which should begin with a ‘key indicator list’ that would look at such factors as whether all the lost items were receipted, whether the luggage or items lost were consistent with the type of trip, whether the loss occurred at the end of the trip, and the general behaviour of the claimant – are they aggressive or persistent? This process needs to be simple and easy to enable the claims handler to carry it out properly. It should also include a clear and robust referral procedure to make sure procedures are being followed, and an experienced decision-maker to deal with claims that require further investigation. Calloway went on to explain the various methods for containing suspected fraudulent claims. Simple correspondence with a claimant is often enough, she said, to make a person think further about going ahead with a fraudulent claim. Other systems used include cognitive telephone interviewing, voice stress analysis, document analysis and case-managed field investigation. It is important, she stated, to look at all documentation when processing a claim, as technology today makes it ever easier to produce genuine looking items such as receipts, cheques or booking forms. Whatever claim you’re dealing with, however, it is essential not to forget the FSA’s underlying principle of ‘treating customers fairly’ (TCF). So, while it is necessary to protect genuine claimants from unwarranted investigation, it is also vital to apply the TCF rule to suspected fraudulent claims cases. Various methods of fraud prevention were also discussed, including claim forms, replacing goods instead of providing cash compensation, keeping underwriters in the loop, and generally sharing information. It is good practice to send underwriters comprehensive reports of claims outcomes, said Calloway, to allow them to identify trends and adjust policies accordingly, if they see fit. Essentially, fraud prevention and detection allows savings to be made, and proper reporting allows fraud prevention measures to be proven effective

or otherwise. Margins in travel insurance are so low, concluded Calloway, that any saving is a positive outcome. ‘Who’s faking it?’ she asked, ‘Well, it’s certainly possible to find out.’

Panellist 9: Andy Hancock, Managing Director – Prontac

As an investigator of fraud, Andy Hancock sees some very interesting cases and understands the various states of mind or ‘mens rea’ that can be present when fraud occurs. Some people do it for the thrill, he said, others because they are desperate for the money, or greedy or sad. Investigating fraudulent claims needn’t be like ‘nailing jelly to a wall’, but is rather all about logical processes and the gathering of evidence.How can insurers detect and prevent fraud? By filtering at the point of claim. Making sure claims handlers know what to look for allows genuine claims to be paid quickly and fraudulent ones to be detected, so staff training is paramount: claims handlers need to be assertive but friendly and they must be knowledgeable about the relevant policy’s terms and conditions. Also, correspondence with the claimant, explaining a decision to investigate further, will deter many people from pursuing a fraudulent claim, while databases of past fraudulent activity and investigations have proven effective, especially in the US. The auditing of suppliers is also recommended, said Hancock, as sometimes assistance companies or medical providers bump up the prices charged. Essentially, though, a sound in-house investigation unit

is key, although the investigative process or parts of it can be outsourced once such avenues have been exhausted. So, what else can investigators do about fraud? Interviewing claimants in the field, although ideal, is expensive

and time-consuming, thus telephone interviews have become more popular, especially with the introduction of cognitive and voice stress analysis. Databases of fraudulent activity are especially useful because often if a person is unsuccessful in making a claim against one insurer, they will try again with a different company in order to get their money back. Forensic analysis is also very beneficial, although this can be expensive to do in-house. Liaising with local authorities is a good way to build up contacts that could be helpful in advising on where to get additional information, while the Fraud Act of 2006 is helping fraud investigators submit relevant cases to the police. All in all, concluded Hancock, investigators should handle each claim on an individual basis, advise the client as to its processes and costings at each step of the investigation process, and act in an ethical manner despite often being under pressure to produce a favourable result.

Panellist 10: Stella Jones, Major Account Manager – Europ Assistance Holdings Ltd

Stella Jones spoke to the ITIC audience about the problem of supplier fraud, which although seems like a strong term, is sadly prevalent throughout the industry. Supplier fraud, she said, often represents a greater cost to insurers than customer fraud and as

such a whole industry has developed to combat the problem of dishonest medical suppliers: namely, the cost containment industry. Medical charges in many countries have and continue to increase, in some places well above what might be considered a

reasonable rate of inflation, while there are medical providers, said Jones, who are purely out for profit. Thus, some medical establishments deliberately over-treat patients and then overcharge for that treatment. It is very difficult for a patient to challenge medical opinion, especially when they are abroad and alone or frightened, and so over-treatment ends up costing insurers a lot of money. And when it comes to overcharging, which is also seen where appropriate treatment has been given, some medical providers routinely quadruple the amount charged for an overseas visitor compared to the price they would charge for the same treatment given to a local resident. Overcharging is especially relevant in the US, where medical costs are already extremely high. But if the situation makes the cost of travel insurance

prohibitive and people start venturing abroad uninsured, US hospitals will then be faced with having to recover costs, which could end up being disastrous for the treated traveller.The industry is also faced with the prospect of totally fraudulent medical suppliers, who encourage

tourists to make fraudulent claims and in return give them kickbacks, coerce people into attending their facilities when there is no need, and bribe holiday representatives to channel patients to them. Insurers are getting better at facing up to some of these fraudsters, but there’s a long way to go to stamp out these practices altogether. Cost containment companies, thus, exist to help insurers overcome fraudulent suppliers by establishing networks, pre-agreed discounts, auditing bills and verifying treatment, and this sector of the industry employs a large number of people these days. They do a great job for insurers, said Jones, but if all was fair and above board, they really shouldn’t be necessary. Honest providers now have to go to great lengths to satisfy an insurer that any payment requested is above board, but until unethical practices are completely eradicated, insurers will continue to check and verify these invoices in order to keep insurance affordable for their policyholders.

House debate – Do travel insurers discriminate against the elderly?

Panellist 11: Ian Nowell, Internal Consultant – Age Concern

The overall feeling amongst older people is that they are discriminated against when it comes not just to travel insurance, but insurance in general; although UK charities Help the Aged and Age Concern report dealing especially with complaints regarding travel and motor insurance. In 2006, research by Help the Aged showed that 95 per cent of annual travel policies have an upper age limit, along with 86 per cent of single-trip policies, while a ‘mystery shopping’ exercise by the charity in the same year – using the Internet, telephone and face-to-face enquires - found that 20 per cent of attempts by those aged over 65 to get a quote were unsuccessful. This compares to a third of attempts by those aged over 75. Naturally, many older people were thus found to feel frustrated and discriminated against, explained Ian Nowell, especially when a policy jumps in price when reaching an age threshold despite the person’s health being exactly the same as the previous day. The huge variation found in the range of quotes

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was also baffling to older people, and many feel a resultant mistrust in the industry, he said. What is important to the older traveller, however, is recognising a brand, and customer service. They also like claims to be settled quickly to avoid prolonging a stressful situation. And insurers would be wise to keep this travelling sector informed and happy: with an increasing older population, who are time-rich, frequent travellers, with a significant disposable income, this is a lucrative market for the travel and related insurance industry – especially as this sector is keen to travel with insurance. So, concluded Nowell, the older traveller presents both challenges and opportunities, with key areas for insurers to tackle being ‘access’ and ‘cost’. This sector should be encouraged to shop around, he said, but they often don’t, possibly because they don’t use the Internet as much as younger travellers. But they should certainly be given better information about where they can purchase travel cover if declined, and they should be told exactly why they have been declined. Ultimately, ‘age shouldn’t be used as a proxy for determining risk’, said Nowell, and while it still is, the perception is ‘yes’ - older travellers are discriminated against.

Panellist 12: Sean Worth, Policy Adviser – Association of British Insurers (ABI)

There is a difference between perception and reality when it comes to the discrimination of older people in travel insurance, said Sean Worth.

There is certainly a higher risk involved in insuring older people, he said, and the ABI acknowledges that there are access issues for this sector of the population when it comes to purchasing insurance, but there is a healthy insurance market for older travellers. The over-65 travel market is small, but it is growing. With an ageing population and longer life expectancy, this travel sector is increasing in significance, especially given its notable spending power. As stated, however, this sector does bring with it extra risks. It is a known fact that long-term illnesses, such as metabolic and musculoskeletal disorders and heart and circulatory problems, are more prevalent in those over the age of 65, and

more common again in those over the age of 75. At the same time, the likelihood of a traveller making an insurance claim increases after the age of 65, but rises sharply after the age of 75, which is, naturally, an important risk factor for travel underwriters. Travel insurance is a low-cost, mass market product, said Worth, but claims can be enormous, especially if they involve surgery in the US. ABI research has shown, meanwhile, that travel claims by older people are often for cancellation due to a medical-related problem. And that despite fewer policies being sold to those over 65, claims made by this age group are generally three and a half times more expensive than for those aged 50. It is not surprising, therefore, that not all insurers can cater for this market.Having said this, around two-thirds of travel policies do cater for those aged 65-plus and four-fifths of people in this age category have no problem accessing a suitable policy. This, pointed out Worth, corresponds with the stats given by Ian Nowell from Age Concern. But the fact that there are still access issues for one-fifth of older travellers is obviously a worry and something that prompted the ABI to put together a task force at the beginning of this year to look into the matter. One of its conclusions has been that the industry needs better ‘signposting’, so if an older person is refused cover by one insurer, they should automatically be directed to a suitable alternative insurer. The ABI is now looking at initiatives to move this idea forward. This is certainly one way, concluded Worth, that the travel insurance industry could bolster its reputation and its perception amongst older travellers.

Panellist 13: Paul Beven, Director of Risk Rating – Healix International

Yes, travel insurers do discriminate against the elderly, began Paul Beven, but they also discriminate against other groups. What insurers need to be mindful of is the principle of ‘treating customers fairly’, so the real

question is: Do travel insurers unfairly discriminate against the elderly?At the end of the day, certain travelling sectors subsidise other travelling sectors when it comes to travel insurance, which essentially isn’t fair. For example, said Beven, travellers buying policies for France subsidise those going to Spain, where medical costs are generally higher; people vacationing for 17 days subside the insurance of those going for 11 days; and healthy people subsidise those with pre-existing medical conditions. This keeps policies at an affordable rate for everyone - and age is just another example of this ‘discrimination’. Although premium prices increase for older travellers, so do

claims costs, so those between the age of 18 and 65 are being discriminated against as they subsidise the over-65s!It is a fact that the older you get the proportion of people in your age group who are in good health gets smaller. So, how do insurers

make discrimination of the elderly fair? Essentially, explained Beven, it has to be borne in mind that most claims value is health-related. Thus, it needs to be considered that older people are more likely to have a pre-existing medical problem when they purchase a policy; they are more likely to have multiple medical problems; and they are also more likely to develop new problems whilst insured. Bearing these things in mind, health assessments need to be made at the point of sale using methods that are simple to put into practice. Medical risk should ideally be assessed in an automated fashion, therefore, using uncomplicated questions. The sales and screening processes could also be integrated to make the transaction easier, and should be available to the consumer via a convenient medium. Products fair to both the consumer and insurer ‘can be, and indeed often are, made easily available to people of advanced age’, stated Beven. Yes, he said, insurers do discriminate on the basis of age and health, but the future will see a move towards more individual underwriting, based on the specific trip being planned. This, he concluded, is how we will treat customers fairly.

Panellist 14: Scott Roberts, Product Manager Travel & Pet – NIG Insurance Ltd

Scott Roberts began his presentation by giving a definition of discrimination: ‘the unfair treatment of a person or group on the basis of prejudice’. And the necessary definition of prejudice: ‘a partiality that prevents objective consideration of an issue or situation’.

In his opinion, insurers don’t discriminate against the older traveller, but they are prejudiced. Bearing these definitions in mind, he went on to take a look at the changing nature of the older traveller marketplace, showing that this segment is the UK’s main demographic growth area, with the number of over-55s set to increase by 25 per cent between 2001 and 2010. Not insignificantly, this age group also holds 70 per cent of Britain’s wealth and is an increasingly adventurous sector when it comes to exploring the wider reaches of the globe. It is a myth, continued Roberts, that older people can’t get insurance, citing the ABI’s research from March this year, which shows that the majority of older people have no problem getting insurance. Furthermore, the main complaints from older people with regards to insurance tend to be that they are unhappy with the concept of step change premiums and flat exclusions, and they are often baffled by unclear products. So, why is there a differential when it comes to premiums for older travellers? Well, the over-55s experience more illness and the cost of medical claims for older people are generally a lot higher. These risks need to be managed and this is done through higher premiums that reflect the elevated risk such travellers pose. Unclear products, on the other hand, are a topic that insurers and underwriters have been addressing for some time and one that obviously remains a problem. In fact, Roberts pointed out that making policies understood and clarity of policy wording has been talked about at several past ITIC events.Presently, the 37 members of the ABI that write travel insurance pay out £4.5 million each week in travel insurance claims, said Roberts. And this constant stream of claims puts pressure on insurers’ bottom line, especially in a market where premiums are generally extremely low, so that some insurers resultantly avoid the older market altogether. What insurers need to do, however, is tailor policies to individuals on a lifestyle basis. In this respect, the sharing of information between different sectors of the travel insurance industry is vital as it allows for correctly underwritten products that enable insurers to better tap into the older market.

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The ITIC European conference 2007 kicked off with a guided Jane Austen walking tour of the beautiful city of Bath, sponsored by Rowland Brothers. A fitting start to any stay in this part of the world, the tour finished back at the Assembly Rooms in time for lunch and the start of the conference sessions. The first day was concluded with a Welcome Function at the original Roman Baths – a dramatic torch-lit setting, where canapés were washed down with copious amounts

of wine and locally-brewed ales in true Roman style. This event was sponsored by Hygeia, which is now a United Health Group International company, who hosted a most enjoyable evening, with entertainment provided by a local harpist. The following morning’s well attended conference sessions were concluded, after lunch, with a number of panel sessions that rounded off official proceedings before the evening’s grand finale black-tie dinner.

This spectacular event at the impressive Pump Room was made all the more special by the after-dinner entertainment sponsored by Wings Medical Group. For a full review, see p. 30.The other ITIC sponsors this year included ADAC, who supplied the conference bags, and Clinica Benidorm, who sponsored the delegate badges. The ITIC team would like to thank all sponsors of the Bath conference for their generous support.

ITIC 2007Welcome Function

Hosted at the historical Roman Baths, this event was an enjoyable

introduction to the eighth ITIC European conference.

Thank you to the conference sponsors

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A MEMORABLE EVENING OF CLASSICAL MUSIC AND SONG

THE ITIC GALA DINNER

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The finale black-tie dinner at this year’s ITIC European conference was held

at the fabulous Pump Room, where the champagne flowed freely and guests enjoyed a five-course gastronomic feast. Wings Medical Group provided delegates and guests with a memorable after-dinner programme of classical music from the Bath Philharmonia. The evening featured a local choral group and the renowned soprano Rosa Mannion. But the highlight was surely the industry’s very own tenor – Wings’ medical director Carlos Alonso. A standing ovation followed his every performance, and was guaranteed

following the on-stage serenading of his sweetheart, which resulted in a proposal of marriage. And who said romance was dead?!The evening drew to a close in the early hours after the obligatory ITIC disco. No prizes for guessing the best dancer: Volker Lemke safely retains his title. An enjoyable time was had by all and we look forward to seeing you again in Venice.

Photography by Leonora Saunders leonora@leonorasaunders.co.uk

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Terrorism has shaped the world in which we now live, but when it comes to obtaining adequate travel insurance to deal with such an event, most travel insurance companies’ policies contain terrorism exclusions. Andrew Holt examines the market

The move to exclude cover in the event of terrorist activity began, not surprisingly, following 9/11, but such travel insurance exclusions still apply today and are likely to do so for the foreseeable future. Peter Gerrard, a senior researcher at price comparison site moneysupermarket.com, says: “Many insurers will not cover terrorism. As it’s a growing risk, wherever we travel, I doubt anyone will cover for it in the future.” This is hardly reassuring news. Typical exclusions, he says, are even extending to delays and the cancellation of travel caused by the threat of terrorism, adding: “As demonstrated by many airlines, cancellations and re-bookings are generally honoured; similarly many travel agents allowed people to transfer locations or dates with no penalty, although there is nothing set in stone around this; but from an insurer’s perspective it is excluded from the outset.” He adds further that if you are injured as a result of a terrorist attack while on holiday, then medical cover will pay out, citing both Norwich Union and AA as having ‘a more flexible stance where terrorism is concerned’. With terrorism, like all insurance, travel insurers base their premiums on the risk that they are exposing themselves to. But with more and more competition in the marketplace, there is commercial pressure for

them to keep their prices as low as possible. “The knock on effect of this, given the constant threat of terrorism we now live under – which could see costs could run into millions for emergency repatriation and medical attention – is that while travellers affected by terrorism will still generally be helped out by their government, insurers will exclude such cover,” says Gerrard. Brian Brown, associate director of financial research company Defaqto, agrees. What most insurers do, he says, is simply exclude cover for terrorism altogether (see table), although in reality, many, if not most, would probably pay any medical claim arising from terrorism. “A small percentage will also cover baggage lost or damaged due to terrorism,” he added, “while around seven to 10 per cent have no terrorism exclusions in their policies whatsoever.”

New world disorderPerhaps not surprisingly, following the Bali bombings, insurers are less likely to cover terrorism for long stay/backpacker type trips than they are for the standard single and annual policies. But as part of the ongoing new world of disorder, holidaymakers in general do face an increased risk of being caught up in a terrorist incident, according to US government data analysed by travel insurer InsureandGo. Figures from the US National Counter Terrorism Center show that the number of terrorist incidents around the world has increased by 6,249 per cent since 2003 – from 175 that year to 11,111 in 2005, the last full year for which data is available. And of the 40,000 people killed or injured by terrorist incidents in 2005, 14,500 (36 per cent) were civilians. Yet despite the increased risk of terrorism,

Embracing the fear

seven to 10 per cent have no terrorism exclusions in their

policies whatsoever

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or maybe because of it, most travel insurance companies’ policies continue to contain exclusions for any claims made following terrorist attacks. As the insurance industry is more sophisticated and developed in the UK than it is in Europe, it is not surprising that a UK company has led the way when it comes to removing these exclusions: travel insurance company InsureandGo has bucked the exclusion trend, taking the step last November to amend its policies and remove the terrorism exclusion from the sections of its policy where it previously applied. The company finds it curious, however, that more insurers have not followed its lead and removed their exclusions to ensure all customers are covered. Perry Wilson, director of InsureandGo, says: “Terrorism is an unfortunate fact of the modern world and insurance providers have a responsibility to their customers to offer a suitable range of policies to reflect this. It is strange that more insurers are not taking our stance. After all, it is just another risk.”

Justifying actionsTourists are becoming much more adventurous in their holiday choices, increasingly travelling to areas like the Middle East, South-East Asia and South America, where terrorism is a much more common occurrence. This being the case, doesn’t it make sense, and is it not justifiable to exclude terrorism from such a travel insurance policy? No, says Wilson. “It’s outrageous that terrorism exclusions on travel insurance policies have not been removed before,” he says; his argument being that insurers can assess the risks involved and should apply clauses and exclusions for parts of the world, but not as a generic approach. “If you are going on holiday to the Gaza Strip or Iraq, an exclusion makes sense, given the risks involved, but having a complete terrorism exclusion cannot be justified.” The increased range of holiday destinations that have seen terrorist activity is also creating new insurance challenges. “Over the last few years, we have sadly seen increasing numbers of attacks occurring in popular holiday destinations such as Egypt, Bali, Turkey and Spain,” continued Wilson. “We are constantly analysing the market to ensure that our policies are meeting the needs of travellers today. As such, we felt that we had no choice than to remove the terrorism exclusion to enable us to really protect our policyholders.” Interestingly, and a key point for other insurers to consider, is that InsureandGo’s change has resulted

in no increase to policy prices. When you compare the number of trips taken each year, the likelihood of a being caught up in a terrorist attack is thankfully minimal, says the company. However, it advises travellers to check their policies to see that if the worst ever did happen to them, they’d know what they would be covered for. Travel insurance providers have indeed been criticised on this point, as there appears to be a big lack of clarity on what travellers will and will not be covered for if caught up in a terrorist act, partly due to the broad range of policy exclusions in the market. Earlier this year, a Treasury Select Committee in the UK slammed travel agents for failing to ensure policyholders are covered for medical expenses in the event of terrorist attacks abroad - putting further pressure on the government to regulate the sale of travel insurance by travel agents and tour operators. Committee chairman John McFall said: “All too often exclusions are buried in the small print of policies. Holidaymakers are risking damage to their health, or considerable financial loss, if they require treatment while abroad.”According to the Treasury Select Committee, ten million Britons travelling last year would not have been covered for medical costs caused by a terrorist attack. This is in context of around 20 million people having

purchased travel insurance policies, worth around £670m last year.Director of general insurance at Association of British Insurers (ABI) Nick Starling retorted: “The Committee implies that terrorism cover should be made

compulsory. Over half of all travel insurance policies already cover the cost of medical treatment following a terrorist attack.” The ABI view is that the UK travel insurance market is highly competitive and there is only a low risk of customers getting the wrong deal.

there appears to be a big lack of clarity on what

travellers will and will not be covered for if caught up

in a terrorist act

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A different viewThe British Insurance Brokers’ Association (Biba) takes a different view. Biba says travel insurance is not sold appropriately, especially via travel agents, because often those selling it are not skilled enough to outline the terms and conditions of policies. Worse, Biba estimates that 78 per cent of travel insurance providers surveyed do not provide terrorism cover for medical costs as standard. Further to this, only 29 per cent of those providers who do not offer terrorism cover allow a ‘write-back’ facility for medical expenses and repatriation. Biba surveyed 75 per cent of those providers offering travel insurance to determine what proportion of the industry offers terrorism cover to consumers purchasing travel insurance. The research also revealed that:

• 49% have a total exclusion with no write-back• 29% have an exclusion but write back medical expenses (and sometimes other areas)• 15% have no terrorism exclusion• 7% of companies did not make the policy information available to the public Commenting on the findings of this research, Graeme Trudgill, technical services manager at BIBA, said: “We find these figures striking. They clearly demonstrate that there is consumer detriment around the provision of terrorism cover in travel insurance policies.” The Association’s previous research revealed that 72 per cent of customers

who recently bought travel insurance - from a travel agent or tour operator - had not been advised whether terrorism cover was included in their policy. “This new data increases our concern that many people are not being made aware that their policy excludes terrorism cover,” commented Trudgill. “It is absolutely vital that travel insurance providers inform consumers of all significant exclusions.” Biba has been campaigning for the Treasury to fully regulate the travel insurance industry to ensure that this happens and to guarantee that all consumers are treated fairly. For Lord Sheikh, chairman and chief executive of insurance brokerage Camberford Law, however, it is not down to travel insurers to deal with terrorism cover. He says: “Insurers who provide travel cover are committed to paying claims as quickly as possible, but it must be pointed out that travel insurance is not primarily designed to cover personal injury or death claims.” A travel insurance policy, he elaborated, is a type of packaged insurance providing cover under various sections, including personal accident, medical expenses, baggage, cancellation and curtailment benefits, loss of personal money and personal liability. “Cover in regard to death, injury and long-term care are more appropriately provided under personal accident, life insurance and income protection policies,” he suggests.

Terrorism cover provided Single Trip Annual Travel Extended Tripno cover 58% 57% 71%hijack only 0% 0% 2%medical only 10% 11% 1%medical, hijack, kidnap 1% 1% 0%medical, pa 18% 17% 17%medical, pa, hijack 3% 1% 2%medical, pa, baggage 2% 2% 0%full cover 8% 11% 7%Source: Defaqto

If you are going on holiday to the Gaza Strip or Iraq, an exclusion makes sense, given the risks involved, but having

a complete terrorism exclusion cannot be justified

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Boosting your reputationBut while terrorism is occurring in more popular tourist destinations, there has also been seemingly little movement by governments, including the British government, since 9/11 to provide financial support to those that have fallen victim to these atrocities, or for the bereaved families of those killed. The reason this is the case in the UK is that the Criminal Injuries Compensation Authority only compensates victims hurt in their own country. The result has been that many injured abroad have been left to fend for themselves or are reliant on the generosity of others to help them heal their lives. The good news for the travel industry, however, is that despite the disruption to travel plans and increased waiting times due to terrorism threats, travellers and holidaymakers are still willing to fly around the world in ever-increasing numbers. From an underwriting level, terrorism rates in commercial property lines fell by over 12 per cent in 2006 due to a glut of new capacity entering the market, according to Aon. Will Farmer, director of Aon Crisis Management, says capacity had been driven up by a combination of existing players and new entrants in the market, adding: “Although the market is generally soft, demand for terrorism insurance continues to grow. New buyers have added to the market’s capacity, enticed in by reduced rates.” A few existing providers have increased capacity for 2007. “Hiscox is now using its $100m line more regularly, while Talbot and Beazley have increased their lines from $35m to $50m,” says Farmer.But he has a word of caution: “The market is quite patchy and there are still lots of capacity hotspots and capacity restraints, such as Manhattan, central Brussels and Dublin.” Perry Wilson, meanwhile, has a warning for travel insurers excluding terrorism cover now and in the future. “Ten or more years ago, many viewed travel insurance as not being worth the paper it was written on. That has all changed. It now has real credibility and is seen as an important, even crucial purchase, but that could change if exclusions such as that

on terrorism remain the norm in the market. The reputation of travel insurance will come crashing down like a pack of cards.” You have been warned.

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There’s a burning desire to travel that can be found deep within the psyche of almost every true-blue Australian. Filling in the gap year between finishing university and starting the serious business of

working and raising families was an Australian norm long before the youth of the rest of the developed world cottoned on to the idea. Not surprisingly, therefore, this nation of just over

Antipodean adventurers

Australians are born travellers and they like to be well covered, as Roger St Pierre finds out

20 million souls is an enticing market for the purveyors of travel insurance, especially since most travellers have income levels that make insurance premium payments less painful than they might be for others.

An appetite for travelAt 7,686,850 square kilometres, Australia is the world’s smallest continent, but it is also the largest island after Greenland and the sixth largest country in the world, and while the population has grown steadily since the first British convicts arrived in the late 1700s, there are plenty who want to get off, if only to see a bit more of the world before settling back home. Thus, the travel business in Oz is big and getting bigger. According to a long-term study by Tourism Australia, short-term outbound departures by residents of the country are set to grow by an average annual rate of around four per cent to reach an impressive seven million – or more than a third of the population – by 2015.There was a spectacular burst of growth in the travel industry – some 29 per cent – in 1994, as

it recovered from the long-term shockwaves of 9/11; and an increasing desire to travel abroad is being fed by the strong expansion of low-cost air capacity to outbound markets. Domestic travel has been growing, too, after a seven-per-cent decline

in 2005, with the 2006 figure up by a modest 1.8 per cent to 281 million bed nights last year. The contribution of domestic tourism to the national economy is expected to have increased by two per cent to $57 billion when the 2006 final

figures come in.According to the Tourism Forecasting Council, however, increased fuel prices are adversely affecting domestic travel, while the strength of the Australian dollar, high oil prices, the rapid expansion of low-cost carrier routes within Asia, and a reduction in Australia’s domestic aviation capacity, created a drop in incoming visitor levels during 2006. “We expect this to improve in 2007, with a 1.8-per-cent expected increase in visitor numbers to around 5.5 million a year,” says the Council’s latest survey.

Market mechanicsThe Australian travel insurance market is a mature one, and with the cost of medical evacuation back to Australia often running well into six figures - given the huge distances involved - it finds strong demand for its products. The message is clear, according to World Nomads, an insurance provider that is a selected partner of Lonely Planet and is underwritten by Allianz, with claims and assistance support from Mondial Assistance: “Aussies are

insurance-minded these days and don’t leave home without it.”There’s a big battle on for conventional assurance operators to retain their market share, however, with Internet operations like Travel Insurance Direct offering massive savings. Internet usage is high in Australia, though online buying is yet to take off in a really big way. When it does so, and that’s likely to be sooner rather than later, insurers will have to wholeheartedly embrace this new media or fight hard to make sales through conventional outlets more attractive, placing a firm emphasis on personal service and expert advice rather than the impersonal and still often haphazard and confusing approach of Internet sales. This is confirmed by consultancy PricewaterhouseCoopers, which says insurers face a very real commercial challenge to strengthen their customer relationships, offering an effective one-stop solution for a wide range of insurance needs, and developing carefully tailored and targeted products and services in the face of ever more exacting customer demands and increased competition. For the present, the travel agency sector is still an important outlet, says Carl Buerckner, managing director of HRG Australia and chairman of the Australian Federation of Travel Agents: “We are vigorously defending all of our revenue streams,” he says, adding, “Quality service and reliable advice for clients are our trump cards.” AFTA represents around 80 per cent of the nation’s travel agencies, including all the major chains. “Our membership includes 2,300 retail outlets across the country and some 500 allied industry organisations, hotels, tour operators and travel wholesalers,” explained Buerckner, “Our aim is to work with everyone in the industry, including the very important travel insurance sector, to move Australian tourism forward.”With outbound departures from China alone set to exceed 20 million this year – close to Australia’s total population at

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an increasing desire to travel abroad is being fed by the strong expansion

of low-cost air capacity to outbound markets

present – there is obviously a lot of potential to be had from such relatively nearby visitor sources, and travel insurers will be delighted to know that it is going to be a two-way trade as the Australian yearning for travel grows ever stronger.

Economies of scaleEconomic performance in Australia has been encouraging, with consumer confidence and spending levels continuing to rise. New Zealand remains the number-one destination for those who venture abroad, followed by the US and the UK, but Asia, given the lower costs involved, is fast becoming increasingly popular. However, given favourable exchange rates and competitive holiday

pricing, New Zealand would seem unlikely to lose its marketplace lead anytime soon.As elsewhere, Aussies are getting older. Just 12.4 per cent of the population was aged 65 or over back in 2000 but this could rise to 19.4 per cent by 2025. The median age is currently 37 years and life expectancy runs to 77.75 years for men and 83.63 years for women. People live long and tend to stay healthy, which means that the so-called grey market, with time and enhanced disposable income to spend, could represent as big a market opportunity as that among youngsters with a burning desire to travel.

On the other hand, while at one time renowned for taking long holidays in order to squeeze as much out of the holiday experience as possible - largely because it takes so long to get anywhere and is relatively expensive in air fare terms – Australians

are now moving towards shorter trips. Around 15 per cent of outbound trips today are of a week’s duration or less, compared with 8.1 per cent in 1988. Trips of between one and two weeks have grown from a 23.7 per cent market share in 1998 to 32 per cent. And far fewer people are taking the month-long vacation trips that used to be quite normal. Price sensitivity in the wake of devalued currency and a decrease in most people’s available leisure time have had their role to play in this, though lots of people are now taking more, if shorter trips – a trend that has increased the popularity of annual over single-trip travel insurance policies.People can travel on 336,962 kilometres (km) of paved roads and 47,738 km of railway in Australia, while flying between the country’s widely spaced centres is the norm and helps keep travellers insurance-minded even though it is still demonstrably the safest means of travel.

Modus operandiAustralia’s insurance industry is well regulated. The representative body is the Insurance Council of Australia (ICA), whose members sell 37.8 million insurance policies annually, handling some half a million claims in the process. There is controversy over the extremely high taxes levied on insurance policies, however, and according to the ICA, in some states there is a world record level of such taxation. New South Wales and Tasmania, for instance, have a triple compounding tax on some types of insurance, while in Victoria the combination of taxes can be as high as 77 per cent above the premium on some types of cover. Not surprisingly, there is a worrying tendency to under insure.At present, there are more than 150 commercial insurance companies operating in the Australian market: among them are more than 100 underwriting organisations that either market directly to the public or through brokers and agents. There are also around 30 reinsurers to support the market, which

in total currently employs a workforce of more than 25,000 people. A mix of commonwealth, state and territory laws govern the ways in which these companies operate: Australian insurers and Australian insurance policies are largely regulated by commonwealth law under the constitutional power relating to insurance, while the sources of liability among citizens are largely regulated by state and territory laws. According to the experts at PricewaterhouseCoopers, though, as a mature market, the Australian insurance industry is in good shape at present. Insurance stocks have been among the top performers in recent times following several years of firming prices and a relatively benign claims environment: “Competitive pressures, however, are demanding greater focus on growth strategies, operating efficiency and customer satisfaction. This may mean pushing into new products and emerging markets both locally and offshore.”

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continued from p.37

insurers will have to wholeheartedly embrace this new media or fight

hard to make sales through conventional outlets more

attractive

The value of brand: part twoBranding is important, but needn’t cost the earth. Steve Manton shows how to make your brand work

The golden rule to remember is that your brand is what differentiates you from the competition. It embodies your business values, reputation and offering and it forms the visible identity of the business. Therefore, a brand must relate to its target market and represent what the business stands for. Ideally, it should be easily identifiable and memorable but here we are principally talking about corporate identities. The ability to win and retain customers is the most important aspect of branding. To achieve this it is important to establish your brand values, which then drive the brand message. Start by defining your brand essence. This should be summed up in two to three words and should embody the heart and soul of the brand. It is usually stated in the following three word format: adjective, adjective, noun. For example, Nike’s essence is ‘genuine athletic performance’ and Hallmark’s is ‘caring shared’.The next step is to establish and define your brand proposition. This is the most important part of the brand’s structure and is a promise to the consumer about what the product or service delivers. It needs to offer a relevant, compelling, and differentiated benefit to the target market. For example, Volvo uses a brand proposition that provides an emotional benefit to its customers - they feel reassured that their passengers are safer in a Volvo than in other cars. At all stages of the branding process it is vital your product or service delivers, i.e. the brand experience – what you promise and more in your brand proposition. While your brand is supposed to embody all the good things about your business it can easily become embedded with a bad reputation. By keeping your promises you can begin to position your brand firmly within the market segment you are targeting, whether it is niche, mass, national or international. Next month, we will look at some of the design aspects of branding and how these can be interpreted to reinforce the strength of your brand and we will also look at how to promote your brand profile and capabilities.

Steve Manton is a Fellow of the Chartered Insurance Institute and a Fellow of the Chartered Institute of Marketing and is chief executive of M Consulting Limited – a full service marketing agency, specialising in the insurance, professional and travel service sectors.

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Double check!‘Please check you have everything before leaving the aircraft!’ These words are uttered hundreds of times a day by cabin crew all over the world, but never has it been more important than in the case of a Chinese couple, who were in such a rush to meet their relatives that they left their three-year-old son on the plane. An attendant on the China Southern Airlines flight from Guangzhou to Dalian city found the child after landing.The attendant told Bandao Morning News that she spotted an unclaimed red coat on a window seat after the passengers had disembarked: “I lifted the coat, and found a child sleeping underneath!” The couple eventually contacted airport guards when they overheard them ask other passengers if they had lost a child. The father’s explanation was, “We were in such as rush to meet our relatives that we didn’t realise we were going without him!”

Flight maps misplace airportMore bad news for British Airways – the maps used by the company show Stanstead Airport, in the UK, to be 40 miles out of position, in a tiny Kent village with the same name. The airline’s in-flight maps appear to show the UK’s third-busiest airport in the rural parish of Stanstead, Sky News reported. The error is believed to affect the airline’s 67-strong airbus fleet, but the problem

has not been replicated on pilots’ navigation systems. A spokesman for the airline said, “What we need to find out is whether whoever was responsible for the maps intended for a little village with a population of 200 to be highlighted as the airport. Probably not.” BA would have to install new software to correct the airport’s position on the maps. However, according to local villagers, the confusion has happened more than once. One said that the village regularly deals with massive articulated lorries with cargo for the airport going

round in circles.

Friday 13th really is cursedNew research from Norwich Union, Aviva’s UK arm, has shown that Friday the 13th is the most

unlucky day for motorists, with more accidents occurring on this day than any other in the year. The UK’s largest insurer researched claims over a five-year period, during which time there were six Friday the 13ths, and discovered that the number of claims made on these days was significantly higher (a spooky 13 per cent) when compared with other days of the month.Nigel Bartram, motor underwriting manager for the company, said: “Though it’s difficult to say for certain why these figures go up, one reason could be that people alter their diving behaviour in reaction to a perceived risk, which does not necessarily translate to safer driving.” The safest day to drive, according to the results of the survey, was the 26th, which saw an eight-per-cent drop in the number of claims compared to the average day.

3�

International Travel Insurance Journal n www.itij.co.uk

an air ambulance tripled from six in 1998 to 18 in 2003, but declined to 12 in 2004 and 11 in 2005. The report said that the drop might be a reflection of increased industry safety levels, but what remains unclear is the rate of accidents per flight operation. Currently, there is no industry-wide flight-hour data, which makes it difficult to determine whether the industry has become more or less safe.A National Transportation Safety Board special investigation in 2006 called for the FAA to require air ambulance operators to comply with stricter regulations and improve safety records. Still, however, the FAA’s approach is not geared towards air ambulance operators, using the same set of rules for them as it does for air-taxi services, according to the GAO report. Recommendations are being followed by most companies, although some are encountering problems with getting hold of necessary equipment – Stockhausen commented that they had been unable to buy night-vision goggles, as there are ‘only a few companies that make them, and the war effort has taken up a lot of that capacity’.Another problem facing the industry, especially as competition for business hots up, is the practice of ‘helicopter shopping’ – whereby an agency calls an air ambulance operator for transport but is turned down, so calls another service that accepts, even if conditions are unsafe. Last year, the air ambulance industry in Colorado started a paging system to share information on which services had turned down a flight and why, aimed at preventing the practice.

Industry information needed

continued from p.16

Tokyo follows Europe continued from p.14

Tokyo’s main domestic airport, while reducing the limits currently in place regarding which carriers can fly from there. He commented: “The focus is how to maximise benefits for consumers, how to revitalise local regions, and continue the growth of the Japanese economy.” Mr Nemoto said that in addition to encouraging an Association of South East Asian Nations agreement, it was also hoped that the plan would prompt other countries to follow suit.Narita, Tokyo’s main international airport, has some of the highest landing fees in the world, while the two main domestic carriers, Japan Airlines and All Nippon Airways, have operated as a duopoly, until recently setting the same fares on many flights. Deregulation and increased competition would bring, particularly if low-cost Asian carriers entered the market, reduced ticket prices and easier travel between Japan and other Asian countries. Peter Harbison, executive chairman for the Centre for Asia Pacific Aviation, said: “If the regional markets of Japan, Korea and China were opened there would be the potential for incremental growth of 300 million people.”

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AFRICA Air Ambulance Worldwide Inc. Mark Jones – President

35246 US Hwy 19 North mjones31@tampabay.rr.com #210 www.airambulanceworldwide.com Palm Harbor Tel: +1 727 781 1198 Florida 34684 Fax: +1 727 786 0897 USA

AMREF Flying Doctor Service Dr Bettina Vadera – Medical Director Wilson Airport emergency@flydoc.org LangataRoad www.amref.org PO Box 18617 Tel: +254 20 600 090

Nairobi Fax: +254 20 344 170 KENYA

European Air Ambulance Patrick Schomaker – Director Sales & Mkt 175A, rue de Cessange alert@air-ambulance.com L-1321 www.air-ambulance.com LUXEMBOURg Tel (24 hr): +49 711 7007 7007

Fax: +49 711 7007 7009

JET ICU Carlos Elcoro – International Program Director 15725 Fairchild Drive email@jeticu.com Clearwater www.jeticu.com FL 33762 Tel: +1 877 453 8428

USA Tel: +1 727 524 9825 Fax: +1 727 524 9826

Netcare 911 Aeromedical Shane Marais Netcare 911 House flight@traumalink.co.za

49 New Road www.netcare911.co.za Halfway House Tel: +27 11 254 1392 Midrand 1685 Fax: +27 11 254 1405 SOUTh AFRICA

AUSTRALASIAAir Ambulance Worldwide Inc. Mark Jones – President

35246 US Hwy 19 North mjones31@tampabay.rr.com #210 www.airambulanceworldwide.com Palm Harbor Tel: +1 727 781 1198 Florida 34684 Fax: +1 727 786 0897 USA

Asia Medical Assistance Abhijeet Sachdev – Vice President DLF City-ll asiamedassist@vsnl.net M.G Road www.privathealthcaregroup.com New Delhi Tel: +91 9899 198 198

Gurgaon 122002 Fax: +91 1242 235 2527 INDIA

CareFlight International Colin Robshaw – Co-ordinator Westmead Hospital Campus international@careflight.org PO Box 159 www.careflight.org Westmead Tel: +61 1300 655 855

NSW 2145 Fax: +61 2 4751 2995 AUSTRALIA

European Air Ambulance Patrick Schomaker – Director Sales & Mkt 175A, rue de Cessange alert@air-ambulance.com L-1321 www.air-ambulance.com LUXEMBOURg Tel (24 hr): +49 711 7007 7007

Fax: +49 711 7007 7009

JET ICU Carlos Elcoro – International Program Director 15725 Fairchild Drive email@jeticu.com Clearwater www.jeticu.com FL 33762 Tel: +1 877 453 8428

USA Tel: +1 727 524 9825 Fax: +1 727 524 982

Medical Wings Dr Sommart Somsiri – Medical Director 222 Room 3259 m.w@medicalwings.com

Bangkok Int Airport www.medicalwings.com Viphavadee-Rangsit Rd, Sikan Tel: +662 247 3392 Don Muang, Bangkok 10210 Fax:+662 535 4355 ThAILAND

Mediflight Debra O’Brien – Operations Manager Royal Adelaide Hospital info@mediflight.com.au

North Terrace www.mediflight.com.au Adelaide Tel: +61 8 8223 6618 SA 5000 Fax:+61 8 8223 6340 AUSTRALIA

Pacific Flight Services Pte Ltd Katherine Yeo – Assistant Marketing Mgr ST Aerospace Engineering Bldg charter_flight@pacific.net.sg

Seletar West Camp www.fly-pfs.com Seletar Airport Tel: +65 6481 3756 797796 Fax: +65 6482 1727 SINGAPORE

South Pacific Air Ambulance Scotty Watson – Managing Director NEW ZEALAND ops@spaanz.co.nz AUSTRALIA Tel: +649 256 9000

SINgAPORE Fax: +649 256 9111

EUROPEADAC-Ambulance Service Robert glueck – Marketing Director Am Westpark 8 info-ambulance@adac.de 81373 Munich www.adac.de/ambulance gERMANY Tel: +49 89 76 76 52 85 Tel: +49 89 76 76 36 00

Fax: +49 89 76 76 50 70

AeroMed 365 Paul golder – Commercial Director Worth Corner Business Cntr paul.golder@aeromed365.com

Turners Hill Road www.aeromed365.com Pound Hill Tel: +44 8707 596 999 Crawley RH10 7SL Fax: +44 8707 559599 UK

Air Ambulance Worldwide Inc. Mark Jones – President 35246 US Hwy 19 North mjones31@tampabay.rr.com

#210 www.airambulanceworldwide.com Palm Harbor Tel: +1 727 781 1198 Florida 34684 Fax: +1 727 786 0897 USA

AirMed International LLC Jeffrey T Tolbert – President 1000 Urban Center Drive mgoodwin@airmed.com Suite 470 www.airmed.com Birmingham Tel: +1 205 443 4840

AL 35242 Fax: +1 205 443 4841 USA Toll Free: +1 877 633 5387

Air Medical Ltd glenn Salt – Flight Operations Manager Oxford Airport operations@airmed.co.uk Kidlington www.airmed.co.uk Oxfordshire Tel: +44 1865 842 887

OX5 1QX Tel: +44 1865 370 642 UK

Alba Consulting Ltd. Andrew Mcgill – Managing Director Unit G11, Hanger 4 enquiries@albaconsulting.org Shoreham Airport www.albaconsulting.org Shoreham-By-Sea Tel: +44 (0) 1273 453999

BN43 5FF Fax: +44 (0) 1273 455118 UK Mobile: +44 (0) 7810 876762

Augsburg Air Ambulance Roland Schoberth – Director Roseggerstr 17 info@ambulanzflugdienst.de D-86368 www.ambulanzflugdienst.de Gersthofen Tel: +49 821 299 1020

gERMANY Tel: +49 821 299 2030

EMC Meditrans Servé de Klerk – President Hoevestein 23 info@emc.nl Postbus 4190 www.emc.nl 4900 CD Tel: +31 162 496 000 Oosterhout Fax: +31 8 42 24 64 86

ThE NEThERLANDS

Euro-flite Air Ambulance Juani Missonen – Coordinator Helsinki International Airport juhani.missonen@jetflite.fi PO Box 187 Tel: +358 20510 1900 FIN-01531 Fax: +358 20510 1901

Vantaa FINLAND

European Air Ambulance Patrick Schomaker – Director Sales & Mkt 175A, rue de Cessange alert@air-ambulance.com L-1321 www.air-ambulance.com LUXEMBOURg Tel (24 hr): +49 711 7007 7007

Fax: +49 711 7007 7009

FAI – rent-a-jet Ag Volker Lemke – Director Sales & Marketing Flughafenstrasse 100 lemke@fai-ag.de D-90268 Nuremberg www.rent-a-jet.de

gERMANY Tel: +49 911 36009 31 Fax: +49 911 36009 59

global Medical Support Otto Karud – Marketing Director Ullevaal University Hospital gms@snla.no 0407 Oslo www.globalmedicalsupport.com NORWAY Tel: +47 22 96 50 50

Telfax: +47 22 96 50 51

IFRA Dr Christian Steindl – Director Bahnhofplatz 13/5 office@ifra.at POB 160 www.ifra.at 3500 Krems Tel: +43 2732 825 610

AUSTRIA Fax: +43 2732 851 01

Jet Executive International Charter günter Krahé – Ground Ops Manager Mündelheimer Weg 50 sales@jetexecutive.com D-40472 www.jetexecutive.com Düsseldorf Tel: +49 211 602 7775

gERMANY Fax: +49 211 602 77766 “Homebase FRA & MUC”

1. AIR AMBULANCE (CONT.)1. AIR AMBULANCE

�1SERVICEDIRECTORYcall +�� (0) 11� ��� �1�1 To make an alteration to a listing email: dave@itij.co.uk

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European Air Ambulance Patrick Schomaker – Director Sales & Mkt 175A, rue de Cessange alert@air-ambulance.com L-1321 www.air-ambulance.com LUXEMBOURg Tel (24 hr): +49 711 7007 7007

Fax: +49 711 7007 7009

JET ICU Carlos Elcoro – International Program Director 15725 Fairchild Drive email@jeticu.com Clearwater www.jeticu.com FL 33762 Tel: +1 877 453 8428

USA Tel: +1 727 524 9825 Fax: +1 727 524 9826

Life Flight International Inc. Chris Connor – Operations Victoria International Airport info@lifeflight.ca Viscount Business Center www.lifeflight.ca

103-9800 McDonald Pk Rd Tel: +1 250 655 1630 Sidney, British Columbia Fax: +1 250 656 9394 CANADA

Skyservice Air Ambulance David Ewing – VP Int. Market Development YUL/Trudeau Int Airport skyservicemiami@aol.com 9785 Avenue Ryan www.skyservice.com

Montreal (Quebec) Tel: +1 514 497 7000 H9P 1A2 Fax: +1 514 636 0096 CANADA

2. AIR AMBULANCE INTERIORAir Ambulance Technology Egon Kuntner – President A-5282 aat@airambulancetechnology.com Ranshofen www.airambulancetechnology.com

AUSTRIA Tel: +43 7722 85051 Fax: +43 7722 85051-22

3. AIRCRAFT PERFORMANCE SOLUTIONSRAISBECK Engineering Scott W.Barringer – Sales Manager 4411 South Ryan Way sales@raisbeck.com Seattle WA98178 www.raisbeck.com

USA Tel: +1 206 723 2000 Fax: +1 206 723 2884

JET ICU Carlos Elcoro – International Program Director 15725 Fairchild Drive email@jeticu.com Clearwater www.jeticu.com FL 33762 Tel: +1 877 453 8428

USA Tel: +1 727 524 9825 Fax: +1 727 524 9826

Med Call gmbh Michael Diefenbach – CEO Bahnhofstrasse 22 info@medcallgmbh.com 65185 www.medcallgmbh.com

Wiesbaden Tel: +49 611 9310 310 gERMANY Fax: +49 611 9310 311

Medical Jet Services & Partner W Dichtl Radetzkystr 19 office@medicaljetservice.com Vienna www.medicaljetservice.com 1030 Tel: +43 1 713 2799 AUSTRIA Fax: +43 1 713 2799-19

Red Star Aviation Mustafa Atac – CEO Sabiha Gokcen Int Airport redstar@redstar-aviation.com J Blok Kurtkoy www.redstar-aviation.com 34912 Tel: +90 216 588 0216

Istanbul Fax: +90 216 588 0225 TURKEY

Swiss Air Ambulance/REgA Walter Stunzi – PR/Marketing Mgr PO Box 1414 ops@rega.ch Zurich Airport www.rega.ch

CH-8058 Tel: +41 333 333 333 SWITZERLAND Fax: +41 44 654 3590

Tyrol Air Ambulance Jakob Ringler – Managing Director PO Box 81 taa@taa.at A-6026 www.taa.at Innsbruck Airport Tel: +43 512 224 220

AUSTRIA Fax: +43 512 288 888

NORTh AMERICAAerojet Stuart hayman – President 4631 NW 31st Ave info@aero-jet.com #220 www.aero-jet.com Ft Lauderdale Tel: +1 954 730 9300

FL 33309 Fax: +1 954 485 6564 USA

Aeromedevac Air Ambulance Jesus Mendez – Provider Relations 681 Kenney Street flightrequest@aeromedevac.com Gillespie Field Airport www.aeromedevac.com El Cajon Tel: US: +1 619 284 7910 CA 92020 Tel: Mexico: 00 1-800-832-5087

USA Fax: +1 619 284-7918

Air Ambulance Professionals, Inc. Brian L. Weisz – President Ft. Lauderdale Executive Airport sales@airambulanceprof.com 1535 South Perimeter Rd www.airambulanceprof.com Hangar 36B Ft. Lauderdale Tel: +1 954 491 0555

Florida 33309 Fax: +1 954 491 6114 USA

Air Ambulance Specialists, Inc. Donald Jones – President 8001 S.Interport Blvd. info@airaasi.com Suite 250 www.airaasi.com Englewood Toll Free: +1 800 424 7060 CO 80111 Tel: +1 720 875 9182

USA Fax: +1 720 875 9183

Air Ambulance Worldwide Inc. Mark Jones – President 35246 US Hwy 19 North mjones31@tampabay.rr.com #210 www.airambulanceworldwide.com Palm Harbor Tel: +1 727 781 1198 Florida 34684 Fax: +1 727 786 0897

USA

AirMed International LLC Jeffrey T Tolbert – President 1000 Urban Center Drive mgoodwin@airmed.com Suite 470 www.airmed.com Birmingham Tel: +1 205 443 4840

AL 35242 Fax: +1 205 443 4841 USA Toll Free: +1 877 633 5387

American Care Air Ambulance Joel Reynolds – General Manager 8775 Aero Drive americancareair@aol.com Suite 120 www.americancareairambulance.com San Diego Tel: +1 858 627 0515

CA 92123 Fax: +1 858 627 0534 USA

Canadian global Air Ambulance Jeff McIntosh – President Toronto jmcintosh@canadianglobalair.ca Winnipeg www.canadianglobalair.ca Vancouver Toll Free: +1 800 563 3822 CANADA Tel: +1 204 888 5555

Fax: +1 204 888 9111

1. AIR AMBULANCE (CONT.) 1. AIR AMBULANCE (CONT.)

�� SERVICEDIRECTORY To have your company listed in the Service Directory email: dave@itij.co.uk

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4. ASSISTANCE COMPANIESAFRICA

AIMS Bernadette Breton – Managing Director Private Bag X5 contact@aims.org.za Benmore Gardens 2010 www.aims.org.za

Johannesburg Tel: +27 11 245 5777 SOUTh AFRICA Fax: +27 11 783 9277

AMREF Flying Doctor Service Dr Bettina Vadera – Medical Director Wilson Airport emergency@flydoc.org Langata Road www.amref.org PO Box 18617 Tel: +254 20 600 090 Nairobi Fax: +254 20 344 170

KENYA

Connex Assistance Egypt Lara helmi – Int Network Director Office II info@connexassistance.com Ist Floor www.connexassistance.com 6 Sad El Aali Street Tel (24hr): +2 02 336 0005

Dokki, Cairo Fax (24hr): +2 02 762 0003 EgYPT

Netcare 911 Aeromedical Shane Marais Netcare 911 House flight@traumalink.co.za

49 New Road www.netcare911.co.za Halfway House Tel: +27 11 254 1392 Midrand 1685 Fax: +27 11 254 1405 SOUTh AFRICA

AUSTRALASIAAsia Medical Assistance Abhijeet Sachdev – Vice President

DLF City-ll asiamedassist@vsnl.net M.G Road www.privathealthcaregroup.com New Delhi Tel: +91 9899 198 198 Gurgaon 122002 Fax:+91 1242 235 2527 INDIA

Blue Dot Assistance haryanto Sutadi – President Director Blue Dot Center bluedot.assistance@idn.co.id

Blok K, L, M www.bluedot.web.id Jl Gelong Baru Utara 5-8 Tel: +62 21 5696 1177 Tomang, Jakarta Barat 1440 Fax: +62 21 5696 1169 INDONESIA

Customer Care Pty Ltd Janine Benson – Operations Manager Level 3 janineb@customercare.com.au

60 Miller Street www.customercare.com.au North Sydney 2060 Tel: +612 9202 8222 NSW Fax: +612 9202 8220 AUSTRALIA

First Assistance Mary-Jo McDonald – General Manager PO Box 17-310 rescue@firstassistance.co.nz Greenlane www.firstassistance.co.nz Auckland Tel: +64 9 356 1650

NEW ZEALAND Fax: +64 9 525 1278

global Assistance & healthcare Mario Babin – Chief Executive Officer Jalan Pattimura global@global-assistance.net 15 Kebayoran Baru www.global-assistance.net Jakaita Tel: +62 21 725 8115 12110 Fax: +62 21 725 7961

INDONESIA

South Pacific Air Ambulance Scotty Watson – Managing Director

NEW ZEALAND ops@spaanz.co.nz AUSTRALIA Tel: +649 256 9000

SINgAPORE Fax: +649 256 9111

EUROPE & ThE MEDITERRANEANADAC-Ambulance Service Robert glueck – Marketing Director Am Westpark 8 info-ambulance@adac.de 81373 Munich www.adac.de/ambulance gERMANY Tel: +49 89 76 76 52 85 Tel: +49 89 76 76 36 00

Fax: +49 89 76 76 50 70

ARC Transistance hans Biekmann – Network Director 11 Avenue Pleiades hans.biekmann@arctransistance.com B-1200 Brussels www.arctransistance.com BELgIUM Tel: +32 2 776 04 70

Fax: +32 2 776 04 99

Atlantic Assist Adriano gouveia – Operations Manager Rua da Alfandega 10-2.D info@atlanticassist.com PO Box 750 www.atlanticassist.com 9000-056 Funchal Tel: +351 291 214 200 Madeira Fax: +351 291 214 202

PORTUgAL

4. ASSISTANCE COMPANIES (CONT.)Express Assist Vardan Azatian – General Director

11-th Radialnaya, 2 eac@expressassist.ru 115404 www.expressassist.ru Moscow Tel: +7 495 775 2090 RUSSIA Fax: +7 495 775 2091

global Voyager Assistance Costas Danilenko – CEO PO Box II cdanilenko@gvassistance.com 125124 www.gvassistance.com Moscow Tel: +7 495 775 0999

RUSSIA Fax: +7 495 775 0998

Mapfre Asistencia Natalia Jorquera – Int Com & Mkt Mgr Sor Ángela de la Cruz, 6 najorqu@mapfre.com 28020 Madrid www.mapfreasistencia.com SPAIN Tel: +34 91 581 4998

Fax: +34 91 581 1850

Marm Assistance Jill Atac – CEO Sabiha Gokcen Int Airport marm@marmassistance.com J Blok Kurtkoy www.marmassistance.com 34912 Tel: +90 216 588 0588 Istanbul Fax: +90 216 588 0602

TURKEY

MK International Emergency Services Minas Kaloumenos – General Manager 95, Ioanninon Street mkassist@hol.gr 10444 Tel: +30 210 5154600 Athens Fax: +30 210 5131660

gREECE

SOS International helle Drager – Marketing Manager Nitivej 6 sos@sos.dk DK-2000 www.sos.dk

Frederiksberg Tel: +45 7010 5055 Copenhagen Fax: +45 7010 5056 DENMARK

TBS Team 24 d.o.o Edvard hojnik – General Manager Ljubljanska Ulica 42 info@tbs-team24.com

2000 Maribor www.tbs-team24.com SLOVENIJA Tel: +386 2618 2301 (Croatia, Slovenia, Fax: +386 2618 5800 Bosnia-Herzegovina, Macedonia, Serbia-Montenegro, Kosovo)

NORTh & CENTRAL AMERICAASISTUR Emilio guevara – Managing Director Prado 208 asisten@asistur.cu e/ Colon y Trocadero www.asistur.cu Habana Vieja Tel: +537 8664499

Ciudad Habana 10100 Fax: +537 8668087 CUBA

Assured Assistance Inc. Martha Turnbull – Director of Operations 6880 Financial Drive martha.turnbull@rbc.com Mississauga Tel: +1 905 816 2495

Ontario Fax: +1 905 813 4719 L5N 7Y5 CANADA

global Excel Management Brian Allatt – CEO 73 Queen Street corpinfo@globalexcel.ca Lennoxville, Quebec www.globalexcel.ca JIM IJ3, CANADA Tel: +1 866 566 1130

4242 Cranmore Court Fax: +1 819 566 8335 Belle Isle, Fl 32812, USA

Medex Assistance Corporation Linda Mcgee – SVP of Sales 8501 LaSalle Road info@medexassist.com Suite 200 www.medexassist.com Baltimore Tel: +1 410 453 6300

MD 21286 Fax: +1 410 453 6301 USA

OneWorld Assist Taka Katsube – Dir Assist & Cost Mngment 10th Floor tkat@oneworldassist.com 6081 No.3 Road www.oneworldassist.com

Richmond, BC Tel: +1 604 303 2113 V6Y 2B2 Fax: +1 604 276 4593 CANADA

TMCA Margaret Whartom – Ops Manager 217 Broadway margaret@tmcatravel.com Suite 600 www.tmcatravel.com NYC Tel: +1 212 964 8580

NY 10007 Fax: +1 212 406 1520 USA

World Travel Protection Canada Inc. Dr Ron Mayer – President & Chf Med Officer 400 University Avenue ron.mayer@wtp.ca 5th Floor www.wtp.ca

Toronto Tel: +1 416 977 3565 Ontario M5G IS7 Fax: +1 416 205 4676 CANADA

ITIJ Awards �00� – Venice

After the phenomenal success of the Prague �006 ITIJ Awards, we are proud to announce that this year’s ceremony will both borrow from and better last year’s event to once again provide the industry with an outstanding occasion that celebrates excellence and achievement in the global Travel Insurance industry.

ITIJ is read by the top players in Travel Insurance today and it is this readership that allows us to compile the most comprehensive vote available. Each individual that subscribes to ITIJ will have the opportunity to vote for their top-rated company in each of the nominations categories.

Once all the votes are in, a shortlist of the top three to fi ve companies in each category will be drawn up (based on the number of votes received). Each of these fi nalists will then be asked to create a presentation that will be considered by an independent judging panel, which will decide the ultimate winners on the night.

The fi nalists’ presentations will be screened at the ITIC Gala Dinner awards evening in Venice on Friday �th November.

The categories:• Air Ambulance provider of the year• Assistance/Claims Handler of the year• Cost Containment company and provider of the year

(to include PPOs and general services)

• Insurer/Underwriter of the year• Intermediary of the year

(to include all retailers of travel insurance)

• ITIJ marketing campaign of the year(judged independently)

ITIJ AWARDS �00�

The rules:

• One vote per category per subscriber to ITIJ

• Votes/nominations must be received by 31st August 2007 to: awards@itij.co.uk

• Only registered company domain names will be accepted. Hotmail, Yahoo and other Web-based emails will not be accepted

• The fi nalists within each catergory will be contacted on Monday 3rd September and provided with the criteria and deadline for submitting their presentation

ITIJ AWARDS �00� : : ITIJ AWARDS �00� : : ITIJ AWARDS �00� : : ITIJ AWARDS �00�

Visit www.itij.co.uk/awards for more information

ONE READER – ONE VOTE!

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International Travel Insurance Journal n www.itij.co.uk

hygeia Corporation Philip Brun – Director of Business Development 15500 New Barn Road p.brun@hygeia.net Suite 200 www.hygeia.net Miami Lakes Tel: +1 305 594 9291 Ext.3312 FL 33014 Fax: +1 305 594 9201

USA

Medsave USA Jeffrey Baker – President 1400 Old Country Road jbaker@medsaveusa.com Suite 109 www.medsaveusa.com Westbury Tel: +1 516 622 1784

NY 11590 Fax: +1 516 294 6761 USA

Star healthcare gigi galen – President 850 7th Avenue ggontheroad@aol.com Suit 803 www.starhealthcarenet.com New York 10019 Tel: +1 212 581 8228

USA Fax: +1 212 581 8272

TMCA Margaret Whartom – Ops Manager 217 Broadway margaret@tmcatravel.com Suite 600 www.tmcatravel.com NYC Tel: +1 212 964 8580 NY 10007 Fax: +1 212 406 1520

USA

7. CLAIMS MANAgEMENTglobal Assistance & healthcare Nathan hannah – TPA Mgr Asia/Pac Jalan Pattimura nathan.hannah@global-assistance.net 15 Kebayoran Baru www.global-assistance.net Jakaita Tel: +62 21 725 8115

12110 Fax: +62 21 725 8951 INDONESIA

global Excel Management Brian Allatt – CEO 73 Queen Street, Lennoxville corpinfo@globalexcel.ca Quebec, JIM 1J3, CANADA www.globalexcel.ca 4242 Cranmore Court Tel: +1 866 566 1130

Belle Isle, FL 32812 USA Fax: +1 819 566 8335

Star healthcare gigi galen – President 850 7th Avenue ggontheroad@aol.com Suit 803 www.starhealthcarenet.com New York Tel: +1 212 581 8228 10019 Fax: +1 212 581 8272

USA

8. CLAIMS SUBROgATION

Medsave USA Jeffrey Baker – President 1400 Old Country Road jbaker@medsaveusa.com Suite 109 www.medsaveusa.com Westbury Tel: +1 516 622 1784

NY 11590 Fax: +1 516 294 6761

9. CRITICAL CARE PATIENT TRANSPORTEUROPE

Lufthansa german Airlines Lufthansa Medical Desk FRA XJ ksfxrmed@dlh.de Frankfurt Airport Tel: +49 1805 838 038

D-60546 Fax: +49 561 9933 117 gERMANY

1. Air Ambulance

2. Air Ambulance Interior

3. Aircraft Performance Solutions

4. Assistance Companies

5. Catastrophic Claims Specialist

CATEGORY KEY 6. Cost Containment

7. Claims Management

8. Claims Subrogation

9. Critical Care Patient Transport

10. Funeral Directors

11. healthcare Clinics

12. hospitals

13. Medical Escort on Commercial Airlines

14. Medical Provider

15. Medical Screening

16. Re-insurance

17. Travel Agents

IF YOU WANT TO BE INCLUDED IN ThE LISTINg OR YOU hAVE ANY ENqUIRES PLEASE CALL OUR

SALES DEPARTMENT ON: +44 (0)1179 25 51 51

5. CATASTROPhIC CLAIMS SPECIALISTDr Colin Plotkin Consulting Dr Colin Plotkin – Managing Director 27-3088 Francis Road colin@plotkinconsulting.com Richmond Tel: +1 604 241 9677 British Columbia Fax: +1 604 241 0733 V7C 5V9

CANADA

6. COST CONTAINMENTAFRICA

AIMS Bernadette Breton – Managing Director Private Bag X5 contact@aims.org.za Benmore Gardens www.aims.org.za 2010 Tel: +27 11 245 5777

Johannesburg Fax: +27 11 783 9277 SOUTh AFRICA

EUROPEChargeCare International Christiane Burniston – Managing Director Monument Business Park admin@chargecare.co.uk 1D, Park Offices www.chargecare.co.uk Warpsgrove Lane Tel: +44 1865 400 007

Chalgrove, Oxford Fax: +44 1865 400 707 UK Mobile: +44 777 44 35 649

M & V Administrators gmbh Jennifer Venables – Corp. Ops Director Obergütschstrasse 33 jennifervenables@mv-administrators.com Postfach 7622 www.mv-administrators.com CH-6003 Tel: +41 41 210 6040 Luzern Fax: +41 41 210 6039

SWITZERLAND

Marm Assistance Jill Atac – CEO Sabiha Gokcen Int Airport marm@marmassistance.com J Blok Kurtkoy www.marmassistance.com

34912 Tel: +90 216 588 0588 Istanbul Fax: +90 216 588 0602 TURKEY

Medical Claims International Spain Fatima guillen grande – Managing Director C/Ciudad de Aguilas No.2 mcispain@mcimanager.com Local 2A www.mcimanager.com Madrid 28030 Tel: 00 34 913 016 145

SPAIN Fax: 00 34 913 016 160

OneWorld Assist Jeanette harper – Business Dev. Manager 89 Fleet Street jhar@oneworldassist.co.uk London www.oneworldassist.co.uk

EC4Y 1DH Tel: +44 7786 982 624 UK Fax: +44 1189 32 80 68

NORTh AMERICAglobal Excel Management Brian Allatt – CEO 73 Queen Street, Lennoxville corpinfo@globalexcel.ca Quebec, JIM 1J3, CANADA www.globalexcel.ca

4242 Cranmore Court Tel: +1 866 566 1130 Belle Isle, FL 32812, USA Fax: +1 819 566 8335

global Medical Management Raija Itzchaki – Assistant VP Marketing 7901 SW 36th Street contact@gmmusa.com Suite 100 www.gmmusa.com

Davie Tel: +1 954 370 6404 FL 33328 Fax: +1 954 370 8613 USA

health Systems International Peggy Novotny – VP / Gen Mngr Intl Bus. 5975 Castle Creek Parkway pnovotny@us-hsi.com Suite 100 www.us-hsi.com Indianapolis Tel: +1 317 806 2000

IN 46250 Fax: +1 317 806 2033 USA

��SERVICEDIRECTORYcall +�� (0) 11� ��� �1�1 To make an alteration to a listing email: dave@itij.co.uk

International Travel Insurance Journal n www.itij.co.uk

NORTh AMERICABaptist health International Center of Miami Yohandra Fuentes – Finance Manager 8940 North Kendall Drive international@baptisthealth.net Suite 601-E www.baptisthealth.net/international Miami Tel: +1 786 596 2373 Fl 33176 Fax: +1 786 596 5979

USA

Jackson Memorial hospital International Shai gold – Vice President Jackson Medical Towers info@jmhi.org East Tower, Suite 829 www.jmhi.org 1500 NW 12th Avenue 24 hr: +1 786 367 4914 Miami, FL 33136-9998 Tel: +1 305 355 5544

USA Fax: +1 305 355 5545

13. MEDICAL ESCORT ON COMMERCIAL AIRLINES

AFRICAAMREF Flying Doctor Service Dr Bettina Vadera – Medical Director Wilson Airport emergency@flydoc.org Langata Road www.amref.org PO Box 18617 Tel: +254 20 600 090

Nairobi Fax: +254 20 344 170 KENYA

AUSTRALASIACareFlight International Sue Robshaw – Co-ordinator Westmead Hospital Campus international@careflight.org PO Box 159 www.careflight.org

Westmead Tel: +61 1300 655 855 NSW 2145 Fax:+61 2 4751 2995 AUSTRALIA

Medical Wings Dr Sommart Somsiri – Medical Director 222 Room 3259 m.w@medicalwings.com

Bangkok Int Airport www.medicalwings.com Viphavadee-Rangsit Rd, Sikan Tel: +662 247 3392 Don Muang, Bangkok 10210 Fax:+662 535 4355 ThAILAND

Mediflight Debra O’Brien – Operations Manager Royal Adelaide Hospital info@mediflight.com.au North Terrace www.mediflight.com.au

Adelaide Tel: +61 8 8223 6618 SA 5000 Fax: +61 8 8223 6340 AUSTRALIA

10. FUNERAL DIRECTORSBONgO International Funeral Services Marek Cichewicz – Intl Manager ul. Skrzetuskiego 34A m.cichewicz@bongo.com.pl 02-726 www.bongo.com.pl Warsaw Tel: +48 22 831 00 36 POLAND Fax: +48 22 635 21 93

Funeralcare International Roger Waddington 221 Upper Richmond Road funeralcare.international@letsco-operate.com Putney www.co-operativefuneralcare.co.uk

London Tel: +44 20 8788 5303 SW15 6SQ Fax: +44 20 8788 2525 UK

global Networks Funeral Assistance Cristina Almudi – Managing Director 23 Blindmans Lane info@gnfa.info Cheshunt www.gnfa.info Hertfordshire Tel: +44 1992 640 066 EN8 9DR Fax: +44 1992 785 030

UK

MK Funeral & Transportation Services Minas Kaloumenos – General Manager 95, Ioanninon Street mkassist@hol.gr 10444 Tel: +30 210 5154600 Athens Fax: +30 210 5131660

gREECE

Rowland Brothers International Melanie Walkling – Manager Int. Dept 299-305 Whitehorse Road info@rowlandbrothersinternational.co.uk West Croydon www.rowlandbrothersinternational.co.uk Surrey Tel: +44 20 8684 2324

CR0 2HR Fax: +44 20 8684 8000 UK

Servilusa Vanda Castro – Manager Int Dept Agencias Funerarias SA internacional@servilusa.pt International Dept. www.servilusa.pt Rua do Entreposto Industrial Tel: +35 121 470 6300

8-2 Esq, 2610-135 Amadora Fax: +35 121 470 6499 PORTUgAL

11. hEALThCARE CLINICSNumber One health group Dr Charlie Easmon – Director 1 Harley Street info@numberonehealth.co.uk London www.numberonehealth.co.uk

W1G 9QD Tel: +44 207 307 8756 UK Fax: +44 207 504 3758

Privat Travel Clinics Abhijeet Sachdev – Vice President DLF City-ll sos@privathealthcaregroup.com M.G Road www.privathealthcaregroup.com New Delhi Tel: +91 9899 198 198

Gurgaon 122002 Fax: +91 124 235 3794 INDIA

12. hOSPITALSASIA

Bangkok hospital Medical Center Judy Mitchell – Third Party Payor Services Bangkok International Hospital judy@bgh.co.th 2 Soi Soonvijai 7 www.bangkokhospital.com New Petchburi Road Tel: +66 2310 3000

Bangkok 10320 Fax: +66 2310 3105 ThAILAND

Privat hospital Abhijeet Sachdev – Vice President DLF City-ll sos@privathealthcaregroup.com M.G Road www.privathealthcaregroup.com New Delhi Tel: +91 9899 198 198

Gurgaon 122002 Fax: +91 124 235 3794 INDIA

Wockhardt hospitals Pradeep Thukral – Head International Marketing Mulund Goregaon pthukral@wockhardt.com, wockhosp@gmail.com Link Road www.wockhardthospitals.net Mumbai Tel: +91 9819015749 400 078 Tel: +91 22 26596502

INDIA Fax: +91-22-55994242

EUROPEXanit hospital de Benalmadena Dr. Juan Bosco Rodriguez hurtado – Director Camino de Gilabert s/n xanit@xanit.net Benalmadena www.xanit.net 29630 Tel: +34 952 367 190

Malaga Fax: +34 952 367 191 SPAIN

12. hOSPITALS (CONT.)

�6 SERVICEDIRECTORY To have your company listed in the Service Directory email: dave@itij.co.uk

International Travel Insurance Journal n www.itij.co.uk

EUROPEAeroMed 365 Paul golder – Commercial Director Worth Corner Busn Cntr paul.golder@aeromed365.com

Turners Hill Road www.aeromed365.com Pound Hill Tel: +44 8707 596 999 Crawley RH10 7SL Fax: +44 8707 559599 UK

EMC Meditrans Servé de Klerk – President Hoevestein 23 info@emc.nl Postbus 4190 www.emc.nl 4900 CD Tel: +31 162 496 000 Oosterhout Fax: +31 8 42 24 64 86

ThE NEThERLANDS

Voyageur Aeromedical Travel Marc Lucas – General Manager Voyageur Buildings marc@voyageur.co.uk 43 Colston Street www.voyageur.co.uk Bristol Tel: +44 (0)117 927 3554 BS1 5AX Fax: +44 (0)117 925 5940

UK

NORTh AMERICAAeromedevac Air Ambulance Jesus Mendez – Provider Relations 681 Kenney Street flightrequest@aeromedevac.com Gillespie Field Airport www.aeromedevac.com El Cajon Tel: US: +1 619 284 7910 CA 92020 Tel: Mexico: 00 1-800-832-5087

USA Fax: +1 619 284-7918

Air Ambulance Worldwide Inc. Mark Jones – President 35246 US Hwy 19 North mjones31@tampabay.rr.com #210 www.airambulanceworldwide.com Palm Harbor Tel: +1 727 781 1198

Florida 34684 Fax: +1 727 786 0897 USA

American Care Air Ambulance Joel Reynolds – General Manager 8775 Aero Drive americancareair@aol.com Suite 120 www.americancareairambulance.com San Diego Tel: +1 858 627 0515

CA 92123 Fax:+1 858 627 0534 USA

Life Flight International Inc. Chris Connor – Operations Victoria International Airport info@lifeflight.ca Viscount Business Center www.lifeflight.ca

103-9800 McDonald Pk Rd Tel: +1 250 655 1630 Sidney, British Columbia Fax: +1 250 656 9394 CANADA

MedEscort International Craig Poliner – President 1730 Vultee Street medescort@fast.net Allentown www.medescort.com PA 18103 Toll Free: +1 800 255 7182

Tel (US): 610 791 3111 USA Fax: +1 610 791 9189

13. MEDICAL ESCORT ON COMMER. AIRLINES (CONT)

IF YOU WANT TO BE INCLUDED IN ThE LISTINg OR YOU hAVE ANY ENqUIRES PLEASE CALL OUR SALES DEPARTMENT ON: +44 (0)1179 25 51 51 OR EMAIL DAVID FITZPATRICK: DAVE@ITIJ.CO.UK

14. MEDICAL PROVIDERAMREF Flying Doctor Service Dr Bettina Vadera – Medical Director Wilson Airport emergency@flydoc.org Langata Road www.amref.org PO Box 18617 Tel: +254 20 600 090 Nairobi Fax: +254 20 344 170

KENYA

Atlantic Assist Adriano gouveia – Operations Manager Rua da Alfandega 10-2.D info@atlanticassist.com PO Box 750 www.atlanticassist.com 9000-056 Funchal Tel: +351 291 214 200

Madeira Fax: +351 291 214 202 PORTUgAL

15. MEDICAL SCREENINgTravel & Medical Insurance Services Lara Suttie – Call Centre Manager 1st Flr Suite, West House sales@travelandmedical.co.uk 46 High Street www.travelandmedical.co.uk Orpington Tel: +44 845 058 8000

Kent BR6 0JQ Fax: +44 845 053 3000 UK

Travel Screen Sandra howell – General Manager The Seedbed Centre info@travelscreen.co.uk Vanguard Way www.travelscreen.co.uk Shoeburyness Tel: +44 1702 587 007 Essex SS3 9QY Fax: +44 1702 584 731

UK

16. RE-INSURANCECrispin Speers & Partners ltd David Stirling – Marketing Manager St Clare House david.stirling@cspinsurance.com 30-33 Minories www.cspinsurance.com London Tel: +44 20 7977 5700 EC3N 1PE Fax: +44 20 7702 9276

UK

17. TRAVEL AgENTSVoyageur Aeromedical Travel Marc Lucas – General Manager Voyageur Buildings marc@voyageur.co.uk 43 Colston Street www.voyageur.co.uk Bristol Tel: +44 (0)117 927 3554 BS1 5AX Fax: +44 (0)117 925 5940

UK

The claimers - ITIJ’s new monthly comic strip

��ONTHEMOVE

Miles Clarke is a Sydney-based writer and has a de-gree in Journalism. He has some 27 years’ media expe-rience in newspapers, radio and for the past 14 years as a freelance contributor to print and online publications on business and travel matters around the world.

Verite Reily Collins ran Ambassadors of Britain, the largest temporary tourism staff agency in Europe, which she subsequently sold to Sight and Sound Education. She has written the Association of British Travel Agents guide to working in travel and has sat on two councils of regional tourist boards.

Robin Gauldie is a freelance journalist specialising in travel, aviation and related sectors. A former editor of the pan-European travel industry newspaper TTG Eu-ropa, he has also edited Destination ASEAN (the offi-cial publication of the Association of South East Asian Nations), ABTA Magazine (the official publication of the Association of British Travel Agents), and Travel Agent International. He contributes to The Times, The Sunday Telegraph, The Scotsman, The Sunday Mirror, and to numerous specialist magazines. He is also the author of more than 20 travel guidebooks.

Andrew Holt is a features editor for Insurance Times.

Milan Korcok is an award-winning freelance health policy and economics writer who covers travel insur-ance, public health, and medical education issues in Canada and the US. He has been writing about health financing and policy issues in these countries since the 1960s and is a frequent contributor to leading North American professional journals and consumer media. He lives in Fort Lauderdale, Florida.

Steve Manton FCII, FCIM is the founder and chief executive of M Consulting and is a Fellow of both the Chartered Insurance Institute and the Chartered Insti-tute of Marketing, where he has just been appointed as a member of the Insurance Marketing Interest Group. He has more than 30 years’ experience in the insurance industry, having directed insurers, brokers and special-ist service providers, and was a name at Lloyd’s for many years.

Roger St Pierre is an avid traveller who has visited 119 countries and rising. He writes and broadcasts extensively on the tourism industry, motoring, cycling and music. He is also fascinated by how the global economy works. At 15, he already had five regular newspaper columns covering sport but also happens to be a qualified associate of the Chartered Insurance Institute and writes regularly on business and financial matters for a number if prestigious publications.

Ian Youngman ACII is a specialist freelance insurance writer and researcher who writes for a wide range of publications. As well as researching and publishing specialist management reports on insurance, he is a ghostwriter for various companies and organisations. He previously had extensive industry experience with insurers and brokers.

CONTRIBUTORS

Published on behalf of Voyageur Publishing & Events Ltd, Voyageur Buildings, 43 Colston Street, Bristol BS1 5AX, UK

The information contained in this publication has been published in good faith and every effort has been made to ensure its accuracy. Neither the publisher nor Voyageur Ltd can accept any responsibility for any error or misinterpretation. All liability for loss, disappointment, negligence or other damage caused by reliance on the information contained in this publication, or in the event of bankruptcy or liquidation or cessation of the trade of any company, individual or firm mentioned is hereby excluded

Printed by Pensord Press, South Wales, United Kingdom

Copyright © Voyageur Publishing 2007. Materials in this publication may not be reproduced in any form without permission INTERNATIONAL TRAVEL INSURANCE JOURNAL

ISSN 1743-1522

Diary D

ates

3-6 JuneCaribbean Insurance

Conference 2007The Marriott Hotel

St Kitts & Neviswww.loma.org

3-6 JuneIASA 2007 Annual

Educational Conference & Business Show

Minneapolis, USwww.iasa.org

5-6 JuneCompetitive Advantage

Through Risk Management

Queen Elizabeth Conference Centre, London, UK

www.airmic.com

7-8 JuneAlternative Risk

Financing ConferenceSingapore

13-15 JuneUV Europe (air

ambulance)Le Meridien Etoile Hotel

Paris, France

17-19 June1st Middle East North Africa CEO Insurance

SummitAmman, Jordan

www.asiainsurancereview.com

27-29 June4th Annual Life

Insurance Forum – Life, Health and Protection

Hilton, KensingtonLondon, UK

www.centaurconferences.co.uk

27-28 JuneCEO Capital Forum

Hotel George, Washington, US

2-3 July6th Conference on

Catastrophe Insurance in Asia

Shanghai, China

11-13 JulyCompliance Section

Annual MeetingHotel George

Washington, USwww.acli.com/acli/events

11-13 JulyInsurance and the Law

SeminarMarriott Harbor Beach Resort

Ft Lauderdale, FL, USwww.acli.com/acli/events

17-19 JulyNational Workers’

Compensation and Occupational Medicine

ConferenceHyannis, MA, US

www.seak.com

25-26 July1st Asian Conference on

MicroinsurancePeninsula Hotel

Manila, Philippines

5-8 AugustAnnual Meeting of the

American Risk and Insurance Association

Loews Le Concorde HotelQuebec, Canadawww.cpcuiia.org

12-15 August62nd Annual Workers

Compensation Educational Conference

Marriott Orlando World CentreOrlando, FL, US

www.fwciweb.org/Conference.html

13-16 August2007 Unemployment

Insurance National Tax Conference

San Diego, CA, USwww.icesa.org

17-18 AugustInsurance Brokers Association of NZ

ConferenceWellington, New Zealand

www.ibanz.co.nz

International Travel Insurance Journal n www.itij.co.uk

Consumers need more assistanceEurop Assistance recently undertook an analysis of major social trends in Europe, which has led to a strategic overview of the company’s four main disciplines: travel, motor, home and health. In response to the review, the company has strengthened its business management team.Emmanuelle Lavenac, previously with International SOS, Jason Sparrow from the RAC and Martin Dexter from General Legal Protection Limited have all joined Europ Assistance’s management team; Martyn Armitage has been appointed as marketing communications manager, and Gareth Barrett as head of product development, both of whom previously worked for Mondial.Rob Upton, sales and marketing director for the

company, said, “The new team faces an exciting and challenging time as Europ Assistance moves into its next phase of growth. We have invested heavily in market research at both a UK and European level and are now in the process of redefining and redeveloping our product offerings based on some very interesting findings.” A key finding

of the analysis relating to insurance revealed that despite developments in products and new technologies, customers increasingly value the human element of personal advice and assistance, especially when faced with an emergency situation.

James Ruttledge joined Stones Solicitors’ Travel and Insurance team at the beginning of May and will mainly undertake defendant work. He has been acting for insurers for 20 years. Bronwen Courtenay-Stamp, partner and head of the team, said: “In an increasing market we have to remain proactive in order to meet our clients’ needs. James brings a wealth of expertise to the team and has worked closely with insurers in both private and public sectors.” Mr Ruttledge qualified as a solicitor in 1987, and has joined Stones from a local firm.Stones’ Travel and Insurance team advises on travel accidents and travel liability matters throughout the world, acting mainly on behalf of insurers. The team is placed to give responsive and commercially practical advice to bring a cost-effective resolution to claims.

Specialist joins Stones

Rowland Brothers International, the UK-based global funeral director, has recently announced that the great, great, great grandchildren of the founder of the company are to get

involved with leading it. Melanie and Stephen Rowland have both been made partners within the company,

having received transferred partnership from the previous partners in the company, David, Robert and Jackie Rowland, who have decided to trade in their partnerships to pursue different ambitions. Melanie is now responsible for the international side of business, along with her father Tony. Stephen is responsible for their rapidly expanding sister company, Golden Leaves Prepaid Funeral Plans, in conjunction with the overall running of the company, also with father Tony.

New sister for Rowland brothers

The US National Association of Insurance Commissioners (NAIC) has named Brady Kelley as the Association’s new chief strategic business officer. Kelley, who worked at the NAIC from 1998 to 2006, rejoins the Association in this new position to oversee strategic planning projects and other major business initiatives. Executive vice president of the Association, Catherine Weatherford, commented: “The NAIC officers have decided to actively pursue integrating strategic planning throughout the Association. In correlation with the project,” she continued, “the officers and I thought it was essential to hire someone to provide leadership and oversight to these very important projects.” Kelley served as the NAIC’s chief financial officer from May 2002 until June 2006, and prior to this position he was director of the former financial services division of the NAIC.

NAIC recruits Kelley

Chubb Insurance Company, based in Europe, has announced the appointment of Paul Chapman to the new position of head of personal insurance. Paul will have responsibility for the company’s personal lines and accident and health business across the European region. Paul has worked for Chubb for the last 15 years in various management positions, most recently as worldwide underwriting manager for accident and health.Chris Giles, CEO of Chubb, said: “The new role means we have one divisional manager for our products that covers employees, affinity groups and personal lines policyholders. It’s a natural business fit to manage these together.” Paul, meanwhile, said he was looking forward to ensuring the products were innovative and invaluable to the company’s brokers and policyholders in the future.

Chubb creates new role

Aetna has announced that Mark Bertolini, 50, has been named as the new head of business operations, effective immediately. In this new role, Bertolini will be responsible for the management of all of the company’s businesses. He currently serves as executive vice president for regional businesses and reports directly to chairman of the company, Ronald Williams. Mr Williams said he was pleased Mr Bertolini had agreed to accept the ‘significant responsibilities’ placed upon him by his new role, an added, “As a member of our senior management team, he has been instrumental in helping to shape and implement our business strategy, as well as articulating our views on public policy at the state and federal levels.”Bertolini joined Aetna in March 2003 as senior vice president of speciality products, and since that time, he has had increasing responsibilities, assuming the management for Aetna’s regional businesses. Prior to joining Aetna, Mr Bertolini held positions with Cigna and NYLCare, and had been chief executive officer of SelectCare.

Aetna names Bertolini

AXA has announced the appointment of two new members to its executive committee – John Dacey, former member of Winterthur Group’s executive board and head of strategy, and Frank Keuper, who holds the position of CEO of AXA Konzern in Germany. Mr Dacey has held a number of senior positions as a member of Winterthur Group’s executive board including CFO and head of strategy. As of 11 April, he became the AXA Group regional CEO for Japan Asia

Pacific, and takes over all the executive responsibilities previously held by Philippe Donnet. Frank Keuper, appointed to the position of CEO of the AXA Konzern AG in January 2007, joins the group executive committee and reports to Alfred Bouckaert, group regional CEO for northern and eastern Europe. Prior to joining AXA, Mr Keuper was chairman of the management board of DBV Winterthur, the German insurance subsidiary of Winterthur.

AXA welcomes new committee members

Chubb’s Paul Chapman

James Ruttledge of Stones Solicitors

Melanie Rowland of Rowland Brothers

Aetna’s Mark Bertolini