ITIJITIJ Page 22 Page 26 Page 28 Page 30 International Travel Insurance Journal ISSUE 58 • NOVEMBER 2005 ESSENTIAL READING FOR TRAVEL INSURANCE INDUSTRY PROFESSIONALS

Europe panics at Pakistan overwhelmed by quake crisis avian flu threat On 8 October, a massive earthquake rocked Pakistan and northern India, The deadly strain of bird flu that has killed resulting in the extensive destruction of approximately 60 people in Asia has spread to property and the loss of thousands of Europe and the continent is in panic. Leonie lives. Initial estimates suggested that at Bennett reports on what is being done to stem the least 33,000 persons perished, now it spread of the virus seems this number is more likely to be around 80,000. Leonie Bennett reports On 13 October, scientists confirmed that the bird flu virus was found in poultry in Turkey, the first time Most of the casualties from the that the virus has been found outside Asia, marking earthquake, which measured 7.6 on the a new phase in the virus’s spread across the globe. Richter scale, were from Pakistan. The Then, on the 17 October, it was established that epicentre of the quake, which lasted for the virus had infected Romanian birds. It was over a minute, was near Muzzaffarabad, confirmed as the H5N1 strain that it is feared can capital of Pakistan-occupied Kashmir, at mutate into a human disease, potentially spiralling 9:20 a.m. Indian Standard Time. Tremors out of control and threatening the lives of millions of were reported in Delhi, Punjab, Jammu, people worldwide. European Union officials Kashmir, Uttaranchal, Himachal, Pradesh confirmed that the latest spread was likely due to and Rajasthan, although no casualties or birds migrating across the Black Sea from Russia to damage were reported in those areas. head south for the winter. Survivors have been wading through The discovery has led European governments to mountains of rubble in search of place rush orders for millions of doses of vaccines, survivors, food and clean water. With as such as Tamiflu, and to prepare emergency plans for many as five million people left homeless an outbreak. Health officials throughout Europe are and living in the open, and freezing urging people, especially those in high-risk groups, temperatures, rescue and recovery such as the elderly and children, to get inoculated teams are much needed. with the standard winter flu jab immediately. The “Indications are that almost 50 per cent mass orders are not just to protect vulnerable of the homes have been destroyed,” citizens, but also to provide drug firms with the capital Prime Minister Shaukat Aziz said. Twenty-four hours may trigger landslides in the region’s still unsettled government has established a Federal Relief they need to build up manufacturing capacity so they after the earthquake, President Pervez Musharraf hills and mountains. Helicopters have been Commission to boost co-ordination of the massive can quickly make mass doses of the vaccine against a made an urgent televised appeal for international grounded during the storms, further delaying the relief operation, in the hope that it will streamline mutated virus in the event of a general outbreak. aid. Medicine tents and blankets for the displaced delivery of emergency supplies. After four days, relief operations in collaboration with the provincial The virus originated in Southeast Asia, has moved are urgently required. areas still had not received supplies. government, relevant ministries, NGOs, the Red through China and Russia, and has resulted in the Rescue efforts have been slow to get underway. Islamic Relief spokesperson, Waseem Yaqhoob, said Crescent and other international agencies. slaughter of more than 140 million birds. In ITIJ’s last Heavy equipment is still in short supply, and many he thought the deaths would reach 80,000, maybe Countries around the world have launched appeals report on the virus’ deadly path (see ITIJ 56, remote towns and villages are still inaccessible, more: “This could get close to tsunami levels. It’s to fund relief efforts, in much the same way as September 2005, Bird flu threat keeps growing), it expect by air or on foot. Authorities fear the rains horrific. It really is terrible.” The Pakistan continued on p.38 was still moving through Southeast Asia. So far, however, it is thought that the virus appears to only have the ability to pass from bird to bird. “There is no evidence that the virus has mutated into a form allowing it to pass from person to Canadian travel insurers see continuing market growth person,” David Nabarro, the United Nations (UN) co-ordinator for avian and human influenza, said in a Thanks to a resilient snowbird community, in inbound and outbound traffic after the 2003 SARS the snowbird market – retired Canadians aged 55 statement on 11 October. However, although the burgeoning traffic with the Orient, and diversifying experience caused tourism to Canada, particularly and older travelling out of the country for at least 30 World Health Organization (WHO) said that it has travel trends among younger flyers, Canadian the province of Ontario, to plummet. Since 2003, consecutive days, usually during the winter, to the ‘no convincing evidence’ of sustained human-to- travel insurers can anticipate a buoyant market when Canadians took just over 15 million trips out southern US. The CBoC data reveals that in 2003, human transmission, it suspects ‘limited transmission well into the foreseeable future, suggests new of the country, the outbound trip figures have there were approximately 526,000 Canadians in between humans’ in cases in Cambodia, Thailand research data from the Conference Board of ‘bounced up resiliently’ to 16.8 million in 2004 and this snowbird category who travelled abroad – and Vietnam. Canada (CBoC). Milan Korcok investigates Canada’s are projected to hit almost 19 million in 2006. This mostly to the US, some to Mexico. That is up “If it acquires the capacity to co-opt humans as a potential is up substantially from the previous recent low of substantially from 457,000 in 1998. The CBoC carrier, it will set off a pandemic that could end the 14.3 million outbound in 1998, but the 2006 projects the 2005 number of snowbird trips to hit lives of millions and, if history holds true, could alter Speaking to the annual meeting of the Travel Health projection will still not top the previous all time peak 654,000 (a healthy 7.2 per cent more than the the culture, the politics and the prosperity of Insurance Association of Canada, in Toronto, in of 19.5 million in 1991. previous year), and to attain 687,000 in 2006. millions more,” US health and Human Services September, David Redekop, principal research For travel insurers, the biggest variable in this The CBoC rates the value of the Canadian travel secretary Michael Leavitt said. He did add though: associate for the CBoC, reported a strong rebound outbound trend may be the continued resilience of continued on p.2 continued on p.38 2 NEWS

Lessons learned in Bali bombs

Suicide bombers destroyed the lives of 23 people and International SOS, another major regional maimed 100 others on the resort island of Bali, at medical assistance company, air-lifted five three restaurants in Jimbaran, with their shrapnel victims on a Beechcraft 1900D air ambulance ITIJITIJ and nail-laced explosives. At the bigining of October to Singapore and two victims to Darwin from International Travel Insurance Journal another bomb went off in Kuta, where bombings in Bali. Three air ambulances – a Beechcraft October 2002 killed more than 200 people. They 1900D, a Lear 35 and a Lear 45 – were also were, however, met with a smooth response from activated and made four trips to evacuate WHAT’S IN the emergency services. Miles Clarke reports seven patients. The hunt for the masterminds behind the Admittedly, the bombs on the evening of 1 October massacres continues in Bali and on the island of THIS ISSUE? wreaked far less havoc than those of the Sari Club and Java. Public anger is swelling against the Islamist Paddy’s Bar in Kuta in October 2002, but lessons radicals behind the bombings, with Balinese have clearly been learnt. As the nearest country with openly questioning why terrorists receive an Western medical services, Australia was quick off the easier run through the justice system than drug REGULARS mark, with the Royal Australian Air Force evacuating a couriers. It is suspected that the bombers may dozen of the seriously injured to Darwin. The 12 be linked to Jemaah Islamiyah; the al-Qaeda- News 1 Australian patients, all on stretchers and some with affiliated group the government holds Editorial comment 4 extensive burns, were loaded into individual responsible for the earlier Bali attack. Grapevine 5 ambulances parked in front of Sanglah general hospital Bali hoteliers implemented an emergency plan before setting off for the airport. The patients were immediately after the bombings. Some 66 Insurance matters 8 flown on a special military evacuation Hercules hotel general managers were alerted by SMS Company brief 14 airplane that was also used to help victims of last within 30 minutes of the first blast and set about Health matters 16 year’s tsunami in Indonesia’s Aceh province. An locating their guests and confirming their wellbeing. If Air ambulance news 18 Indonesian patient, accompanied by his wife, was also they were unable to find their guests, they set about Canadian travel transported to Australia aboard the same flight for advising the embassies of the country of origin of the Travel matters 20 emergency surgery. guests. Tight security was also put in place at all hotels News analysis: The chief executive of Mondial emergency response in the wake of the attacks. insurers see growth The cost of natural disasters 22 in Brisbane, John Colless, said a disaster plan swung The Bali Hotels Association, meanwhile, hosted continued from p.1 ITIJ Awards finalists 24 into action within minutes of the news of the accommodation for inbound family members of the World markets: France 28 bombing: “We learnt a lot from the 2002 bombing injured, with all arriving holidaymakers receiving special insurance market at CA$260.7 million in individual Hot spots 33 and worked closely with the Department of Foreign gifts of flowers in appreciation of their commitment to policy sales, CA$103.6 million in annual policy sales, Affairs and Trade (DFaT). They managed the situation continue their holiday plans. The association reports and CA$139.8 million in trip cancellation. Also Dick’s hotline: From Cancun to Timbuktu 33 on the ground and we gave expert assistance an overall drop in demand for available rooms of encouraging for travel insurers is that surveys show Service directory 34 wherever required. Without doubt, the medical around 10 per cent and is confident business has not Canadians to be ‘dauntless’ in insisting on their winter Diary dates 38 facilities in Bali have been improved significantly since been damaged to the same extent as in 2002. vacations. The CBoC report noted that in the Smile corner 38 the bombing and they are far better equipped to A measure of resilience to terrorism is building with summer of 2001, 4.1 million Canadians said they handle burns cases than before.” regard to tourist traffic to Bali. While there was intended to take an outbound winter vacation in the On the move 39 Mr Colless said that, while the terrorism attacks were determined effort by some visitors to leave coming year. By June 2005, that number had risen to Contributors 39 horrendous in themselves, the expertise and immediately after the bombings, Qantas reported less 6.8 million. Canada’s population is just over 32 million. preparedness to deal with these situations was well than 500 customers cancelling their forward bookings, One particularly significant trend among Canadian FEATURES developed. “We estimate some 85 per cent of while another 300 deferred their travel plans for Bali. travellers is their tendency to diversify their travel Australians now have travel cover, up about 15 points No flight schedules were changed. Garuda Indonesia destinations, with lower ratios travelling to the US Should travel insurance be compulsory? on two years ago and we now need to factor allowed passengers to defer or cancel their flights and more to other countries. In fact, for the first Part 2 26 terrorism into the equation – remote a chance as it without penalty and maintained full flight schedules time, almost as many ‘insurance risk nights’ will be Fair regulation: does Europe have the still is,” he added. from all destinations to and from Bali. spent at non-US locations as in the US, says the answer? 30 CBoC. A risk night is an insured night spent out of the country. Another significant trend is that ITIJ TEAM Canadian travellers today are older, they travel Risk management top of the list farther and they stay longer. Editor-in-chief: Ian Cameron Between 2004 and 2011 there will also be 21 per Editor: Sarah Lee With an increasing number of new risk areas, it is • Despite recent terrorist attacks, less than half of cent more people 65 and older going overseas, essential that businesses recognise these and companies are reassessing their risk management and that will be the greatest increase in overseas Sub-editor: Leonie Bennett incorporate them into everyday working practice. strategies. For natural hazards it is less than a travel in any age cohort. The next highest increase Staff writer: Hannah Langfield However, in a report published by Lloyd’s recently, quarter. will be an estimated 16 per cent among people in Designers: Eli Butler research demonstrates that board directors at global According to Julian James, Lloyd’s director of the 55 to 64 year age group, says the report. Chris Marke businesses are failing to do exactly this. In a worldwide markets, business leaders are not One of the greatest potential travel insurance comprehensive survey carried out with the prepared for the likelihood of costly risk market changes will be the increasing shift of traffic US correspondent: Milan Korcok Economist management failure. to Asia, particularly China, says the CBoC, which India correspondent: Saby Ganguly Intelligence Unit, Although it is notes that, while there has been an average annual Legal correspondent: Dick Atkins more than 100 encouraging that 3.4 per cent reduction in visitors from the US to business leaders from they have increased Canada since 1990, and only a 1.6 per cent Conference manager: Denise Clements a range of countries time and resources average annual increase from Europe, there has Production: Adele Brown and sectors were spent on risk been a 7.7 average annual increase of visitors from asked for their views management, they Asia over that time. And though there was a slump Production assistant: Helen Watts on how they thought should still be doing due to SARS in and around 2003, there was a big Advertising sales: Jude Edwards their organisations more to recognise rebound in 2004 with travel from Thailand David Fitzpatrick coped with risk. The and prepare for the bouncing up 9.9 per cent, from Japan 12.7 per Finance: Helen Parker overall consensus potential crippling cent, and from China 51.1 per cent. was that they failed effects of the risks Another remarkable demographic is the increase in Cartoonist: Chris Duggan to effectively identify they face. “The first air capacity between the two countries. In the May and manage step is for to October 2003 SARS season, there were emerging risks. New businesses to 121,468 seats offered by carriers from Canada to FREE SUBSCRIPTIONS FOR areas, such as cyber recognise the China. In the same period in 2005 there were TRAVEL PROFESSIONALS crime and the rising complex global risks 208,826 seats available, with China East Airline prediction of they now face and growing its capacity by a staggering 243 per cent. ITIJ manmade and natural disasters, have not been dealt put risk management at the top of their agenda,” The CBoC report suggests that Canadians can be with swiftly, as the survey results show: directed James. expected to substantially increase their travel to Voyageur Buildings • The overriding results showed at least half of the Further findings reveal that some obstacles Eastern Europe, where borders are opening up 43 Colston St companies had at least one ‘near miss’. organisations have to deal with are structural as and dollars are flowing in to build up the tourism Bristol BS1 5AX • One in three companies suffered significant much as they are attitudinal. With much disparity in infrastructure. Travel can also be expected to UK damage as a result of failure to manage risk. the way organisations manage risk, there needs to increase to Central America and Caribbean editorial: +44 (0)117 922 6600 The amount of time boards are spending on risk be an embedded culture of risk management locations, which are upgrading many of their advertising: +44 (0)117 925 5151 management has risen four-fold in the past three throughout, so that it becomes an integral part of facilities, and destinations are becoming much more fax editoial: +44 (0)117 929 2023 years. office practice. Currently, only half of all companies active in competing for tourism dollars. Finally, the fax advertising: +44 (0)117 925 2040 • Boards are now assessing a wider range of risks in surveyed have centralised risk management with CBoC also notes that to date Africa and the Middle the light of corporate scandals and regulatory two thirds of boards not having received training in East have been underperforming in the tourism email: [email protected] intervention, but they are ignoring other headline either identifying emerging risk or implementing risk market, but that may well change and they offer web: www.itij.co.uk risks such as terrorism and the weather. management across their organisations. great tourism potentials.

International Travel Insurance Journal www.itij.co.uk

4 NEWS

Governator protects Hurricane Stan Airline compensation travellers devastates Guatemala laws are confusing Editorial After a number of US states introduced legislation Just weeks after hurricanes Dennis and Rita Following the new European Union (EU) ruling in denying life insurance companies the right to destroyed parts of the Gulf Coast, parts of Mexico February that applies to all flights to or from the EU, decline coverage for applicants travelling to what and surrounding areas witnessed major destruction all air passengers experiencing a flight cancellation or € € comment is considered high-risk countries, Florida has been from Hurricane Stan at the beginning of October, long delays stand to receive 250 to 600 petitioning for the same legislation (See ITIJ 56, with many people reported dead in Central compensation (see ITIJ 50, March 2005, New September 2005, Congress debates insurance America. passenger compensation rights). Since these new exclusion zones). Miles Clarke reports on the The category one storm fortunately lost strength rules came into effect, however, the number of latest development quite quickly. However, consequential high winds complaints and queries has increased fourfold, and mudslides were blamed for many fatalities. The causing uproar among commercial airlines. It is a California Governor and former movie star, Arnold worst hit by Stan’s spawned rains has been particular problem for low-budget airlines that keep Schwarzenegger, has Guatemala, where authorities their costs down by eliminating paperwork – they signed into law a bill say 652 people have died and do not have the capacity to deal with increased that prohibits a life another 337 people from the administration that bigger airlines do. Slow and disability insurer Mayan Indian town of Panabaj government implementation of new rulings, from denying a policy are missing, feared dead. coupled with challenges on behalf of the to anyone travelling About 130,000 have been left International Air Transport Association (IATA) and to a country on the homeless in Guatemala, and the European Low Fares Airlines Association, as well US State three million more have been as other associations, has prompted the European Department Travel left without electricity, water Court of Justice to reassess the situation. Advisory List, unless and other basic services. Simon Evans, chief executive of the Air Transport the risk of exposure Central American Users Council, the UK organisation that represents has been governments are struggling to airline passengers, can certainly vouch for the substantiated. reach isolated, devastated fourfold increase in complaints from his own The countries on the areas. Rescue efforts were increased workload: “These rules have certainly It seems at times that things are getting a list, which include abandoned on 9 October raised expectations among passengers about what little too far out of our control: that our Israel, have not been after it became too dangerous they can get if they have had a bad travel harnessing of the earth and her resources shown to have to dig for survivors. Diego experience.” Although an attempt to curb airlines are but a meagre bid, compared to the higher fatalities Esquina, mayor of Panabaj, from deliberately overbooking and ‘bumping’ might of our planet when she decides to among tourists than says his village “will no longer passengers onto later flights, the legislation put strike back. Our lead stories this month tell any other exist. We are asking that it be forward by the EU has proven to be complicated of immense devastation in Pakistan due to destination. “It is not declared a cemetery. We are and not very effective. Some airlines say that the the powerful earthquake that occurred right to deny tired; we no longer know rules have left them with an unsustainable financial there on 8 October, and the increasingly coverage based on where to dig. The bodies are risk, especially low-cost carriers who could be apparent spread of the deadly strain of bird any past or future so rotten that they can no forced to reimburse many times the actual price of flu that has migrated from Asia into Europe. travel without longer be identified. They will a ticket. The failing comes about through the In our News analysis section, we consider showing real risks,” said Jonathan Bernstein, Anti only bring disease.” compensation scheme not being based on the the effect of the recent spate of natural Defamation League director, who lobbied hard to The hurricane is seen as the region’s worst natural actual ticket price, but instead implements a disasters – hurricanes and the Asian Tsunami bring the ruling into law. Similar bills have already disaster since Hurricane Mitch, which killed 268 complex rising scale for what passengers can claim – on the global insurance industry, and in passed in Illinois, New York and Washington. people in 1998. for events such as delays. In the word of Ryanair’s our Health matters section we learn of an head of regulatory affairs Jim Callaghan, the new increasing West Nile virus threat in the US rules are ‘a complete mess’. One woman who paid and serious typhoid alert in Africa. €46 for her flight asked for €400 in compensation! But the wrath of Nature seems only to According to IATA, applying the rules will cost EU reinforce our determination to work airlines €560 million a year, over and above existing together to overcome our differences and compensation. That could amount up to as much as unite in a common cause. In India, the €40 million a year for medium-sized carriers – prime minister pledged aid and support to about a fifth of its operating profit. The new EU long-term adversary Pakistan to help with rulings also take European airlines legislation out of rescue operations after the earthquake; and sync with the rest of the world, despite the the insurance industry in the US is bending intentions of airline legislation to be a uniform the rules, with some insurers saying they will worldwide system. not cancel coverage for non-payment of Brussels remains hopeful, however, that the rules premiums in the wake of Katrina, and will will provide an incentive for airlines to reduce delays extend grace periods for those policyholders and cancellations, as there has been a notable drop affected by the hurricane. in the number of routine over-bookings by airlines. Even in the face of man-made atrocities, Mitigating circumstances are catered for with the such as the recent bombings on the ‘extraordinary circumstances’ clause, a ruling that law Indonesian island of Bali, the co-ordinated firms have been busy advising airlines to use to their and efficient emergency assistance effort advantage as European passengers become more shows that we, as an industry, have learnt litigious. The lawyers, who have become the short- valuable lessons from previous disasters. term benefactors, have highlighted the flow of And people are continuing to travel. Not questions that have been flooding in on behalf of only that, they are increasingly thinking to airlines as well as passengers. “Uncertainty and take out travel insurance. From India, we obscurity in the law is the main source of why have a news report on the growth of the people come to us,” says Mark Franklin, from Anglo- travel insurance sector and in our Travel American law firm DLA Piper Rudnick Gary Cary. matters section, we learn of an increasing gap-year travel market amongst the over 50s. So, it’s not all bad news. The travel insurance industry is unique in bringing together so many elements from various related markets, and working together to provide a service that straddles borders, crosses language barriers, and even unites to pick up the pieces in the event of calamity – whatever its source.

Sarah Lee Editor

International Travel Insurance Journal www.itij.co.uk NEWS 5

GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEV INE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRA Indians demand Zambia keeps travel insurance visitors covered GRAPEVINE Regulating jet skis The Dubai Department of Tourism and Indian travellers are increasingly accepting the As the Visit Zambia 2005 campaign continues Commerce Marketing has been holding talks with need to have travel insurance for overseas trips. apace, the Zambia State Insurance Corporation Banned due to the representatives of Dubai Municipality, as well Ian Youngman reports (ZSIC) has begun talks with airlines to build in as hotels and resorts, to discuss new regulations some premium in the ticket for visitors coming to t-shirt for jet skis and beach safety issues. The attendees The foreign travel market growth rate in India is Zambia. By Benedict Tembo in Lusaka were briefed on a new ban on the use of jet skis above 15 per cent a year. As well as growth in When deciding what to wear on a flight, it’s usually in certain places on Dubai beaches, specifically in business and holiday travel, Indians make long The increase in premium is a bid to ensure that best to opt for comfort – just be careful what is front of beach hotels. The move is an effort to journeys, often staying several months at a time, to visitors coming to Zambia are thoroughly covered written on your t-shirt. Southwest Airlines ejected reduce noise, pollution and accidents. relatives in America and Europe. Ian Youngman for medical and insurance expenses while visiting a Washington woman from a flight in Reno after Under the new legislation, all jet skis will need to reports the country. ZSIC head of corporate development, passengers complained about her t-shirt. be registered and new licensing rules will also Although some policies are sold direct and a few by Chibamba Kanyama, said in Lusaka that under the Apparently, the t-shirt had pictures of US come into effect. The importance of insurance intermediaries, most are still sold by travel agents. tour-pack, the firm has also come up with a President Bush, Vice President Dick Cheney and for jet-ski users was also highlighted at the Trip cover is still the most common, though annual personal accident scheme, which provides cover to the Secretary of State Condoleezza Rice. What meeting. Other new laws include the banning of policies are increasingly bought, mostly by the family while on holiday as well as family travel harm is there in that you might well ask? Well, unauthorised vehicles from the city’s beaches. companies. However, it has to be said, that cover is accident. beneath the three faces was a phrase similar to mostly bought on price, with little consideration “ZSIC’s current process is to negotiate with airlines the film Meet the Fockers. given to cover or medical limits, by the individual. to build in some premium in the ticket for visitors The woman said it was a joke for her Corporates buying coming to Zambia so Democrat parents to see when they annual policies are, that they are picked her up in Portland, Oregon. The however, increasingly thoroughly covered woman is intending to file a civil rights looking at the cover even for medical and case against the airline. provided. funeral expenses while It is a mere five years visiting the country,” since the liberalisation Mr Kanyama said. of the insurance He said the discussions Kuala Lumpur sector. Previously, just were still ongoing but the four state-owned ZSIC anticipated a on camera general insurance breakthrough soon, companies offered particularly with Following the huge success of Kuala fairly basic cover. Zambian Airways. Lumpur’s 14 CCTV cameras installed in Although there are still “Other insurance the city to help catch thieves and bag only a handful of companies can offer snatchers, an additional 200 of the devices are set private insurers in the this policy but it to be implanted by next year. Making it one of country, several offer travel. The main players are depends on their underwriting competence,” Mr the most monitored cities in the region, the Powder spill closes Tata AIG, Bajaj Allianz and Royal Sundaram. The Kanyama said. He explained that tourism was a cameras will help city police closely observe any state companies allow trips up to 180 days, but highly specialised risk and as such, it required illegal activity, 24 hours a day. Adelaide airport private insurers mostly have much lower limits. experience. During the holiday season, when Kuala Lumpur India’s travel market is one of the fastest growing Mr Kanyama said the International Air Transport receives an influx of tourists, especially from the In these days of heightened terrorist alerts, staff at markets in the world. The overseas travel insurance Association requirement, now, is that visitors be Middle East, crime is rife, so to protect visitors, airports and other places around the world are market is growing, while in such a large country insured for about US$1 million. “For an insurance cameras will be installed in the most crime-prone getting increasingly twitchy about any suspicious there is potential for the growth of domestic travel company to give this kind of cover, there is need to areas, items left unattended or cover. Because of the significant medical costs in the have reinsurance companies that are on a treaty including substances that could be US and Canada, travel agents and others have little arrangement, in other words, entrusting the the tourist dangerous. difficulty in persuading people to have cover. But a corporation to pass on any further risks based on belt of Adelaide domestic air person travelling within India or to Malaysia remains the initial annual agreement,” Mr Kanyama said. Arab Street terminal, in Australia, was a much harder sell. “ZSIC, like any other insurance company, is a risk in Bukit closed for two hours management company. ZSIC is well known for Bintang. recently, after a staff engaging professionals who are able to The police member noticed a white advise clients on the need to prevent will also be powder leaking from loss. In the case of tourism, there are granted luggage onto the check-in various risks. The assets for all access to conveyor belt. The companies engaged in this business the city’s terminal was evacuated must be managed against risk so that Integrated and three inbound and there is no danger to tourists. Motor Transport four outbound flights vehicles must be in good working Information were delayed, affecting condition; buildings (lodges, hotels) System hundreds of passengers. must have fire extinguishers and not be cameras, After forensic testing, the in a state that would pose danger. The which substance was found to environment must be secure enough presently number 255 and are placed along be harmless and the terminal re-opened. Better etc. In short, the risk managers take major roads around the city. to be safe than sorry.

time assessing every asset and possible P liability to the public and tourists.” RAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVIN EVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•G

www.itij.co.uk International Travel Insurance Journal 6 NEWS

www.lufthansa.com Advertorial Larger, safer and more beneficial The PTC of Lufthansa sets new standards

With its Patient Transport Compartment (PTC), concentrate Deutsche Lufthansa offers a solution for the exclusively on the transport and intensive medical care of medical care of the critically-ill patients on long-haul flights that has patient. been systematically developed and perfected On arrival at the since 1996. destination there are usually at least The PTC is a closed space unit specially developed 24 hours before for this purpose. As a result, the private sphere is the return flight. preserved and consistent intensive medical care of The doctor takes a the patient made possible. look at the patient’s As an independent fully-functional space unit, when documents and required the PTC can be installed in wide-bodied examines the aircraft like the B 747-400 and the A 340 fleet patient in order to during routine time spent on the ground in assess his/her Frankfurt. Measuring 6 square metres and with transportability. All normal standing height, in comparison to an the other ambulance aircraft, the PTC offers plenty of space preparatory work is for the treatment of patients. completed during In addition to the patient bed, the compartment this time. contains two seats for the medical crew, intensive If the patient is not care equipment, 13,000 litres of oxygen and the fit for transportation required consumable materials and drugs. at this time, there is Logistics still time to stop the installation of the PTC in is a B-Class ticket for the accompanying doctor equipment, he is in possession of all the necessary Since spring 2004, the PTC has been flying not Frankfurt. It is thus possible to avoid the main cost from or to the patient, the medical equipment in licenses required by the Federal Aviation Agency, only to the B 747 destinations, but also on all element in the event of a cancellation or a accordance with the requirements for intensive and he assumes before and during transport all intercontinental flights that are flown by the new A- temporal delay without the PTC being used. In this care transport, drugs as well as medical organizational and safety-relevant responsibilities. 340-300/600 fleet . Thus the number of case, together with the customer, LH will discuss consumable materials plus the PTC Escort. This leads to a significant relief of the doctor, he destinations that can be reached directly with the what alternatives are then realizable. That could The price comparison is clearly in favour of the can concentrate fully on the medical treatment of PTC system has increased from 25 to more than mean: later use of the PTC or the return of the scheduled flight. The difference compared to an his patient and is thereby integrated in the LH- medical crew ambulance flight is so substantial that the difference internal flight procedure by the assistant. The without the not only covers the feeder and collection flights doctor, as a rule, is a specialist and has both patient. but, in addition, also produces a clear cost intensive care and emergency medical experience. In order to advantage for the scheduled flight. With clear With Lufthansa’s Patient Transport Compartment a guarantee that economic, operative and medical advantages on closed intensive care unit is available for civil the flight with long-haul routes, the PTC is less a competing aviation which can be used on scheduled services. the PTC is product, but rather a meaningful alternative to the In 6 square metres, this unit offers a treatment conducted on ambulance aircraft with a very specific performance room with standing room. time and all profile. The medical equipment includes intensive care waiting time equipment which offers a high degree of patient for the patient Medical team and equipment safety. If necessary, further equipment can be is avoided, the While the customer, as a rule, provides the transported. Due to the clearly shorter flying flight can be accompanying doctor for the transport, LH times and lower costs in comparison to the registered with provides the assisting medical personnel (intensive ambulance jets, this system is an ideal alternative a high priority care nurse/paramedic). The PTC Escort instructs for patients requiring intensive care, particularly on with the the doctor if necessary in the use of the medical long-haul flights. Central Flow Management Unit (CMU) in Brussels. 60 worldwide. Thanks to the well-coordinated logistics it is In the event of an inquiry for the PTC system, guaranteed that the patient can be brought on approx. 30 minutes time is required for checking board without problems and a reciprocal the system, in order to provide an approval. The impairment of passenger and medical transport PTC transport is handled on the basis of a priority does not occur. In the normal case, the patient is system, irrespective of the capacity utilization of the back home about two and a half days after the flight. In order to guarantee smooth repatriation, medical crew departs on its mission. the chronological course of the flight is discussed in The transfer at all airports is conducted, on advance together with the customer. This includes principle, by Lufthansa. In Frankfurt a special transport to and from the airport. Here, precise ambulance highloader is available. At other stations planning is very important as the planned flight use is made of a catering vehicle. This is safer and routine of a schedule flight should not be affected simpler than bringing the patient aboard via the by a PTC tour. aircraft’s steps. If the patient is to be further After the commissioning of the transport order and transported by rescue helicopter or ambulance the immediate operative preparation, on day 1, as aircraft, provisions can be made in advance for the a rule, the medical crew sets off from Frankfurt to LH aircraft and the other aircraft to be positioned travel to the patient. It is made up of the doctor immediately next to each other. This ensures an provided by the customer and the LH PTC Escort. immediate transfer of the patient. The PTC Escort is a male or female flight attendant The total transport time must be kept to the with training as an intensive care nurse/paramedic. absolutely necessary minimum. The PTC system In addition to providing medical assistance, he/she fulfils this precondition, it facilitates a shortening of is responsible for the safety and coordination of the the transport time by up to 50%. PTC Transport. Thus, the doctor has an Another important factor is the price of the experienced assistant by his side, enabling him to intensive care transport. Included in the PTC price

International Travel Insurance Journal www.itij.co.uk

8 INSURANCEMATTERS

Marsh sets sights on Royal & SunAlliance ACIC opposes Catastrophe support Beijing Olympics buys Cruz del Sur insurance regulations committee set up

Royal & SunAlliance The Association of California Insurance Companies The International Committee of the Red Cross Insurance Group has (ACIC) has strongly opposed recent Department of (ICRC), which has been helping victims of announced the acquisition of Insurance proposed regulations. According to catastrophes and conflict for over 140 years, has Chile’s leading general executive vice president, Jeff Fuller, the regulations been joined by eight founding members to create insurance business will be detrimental for insurers and the Corporate Support Compañia de Seguros Americans alike and will increase the cost Group – a group that Generales Cruz del Sur S.A. of insurance, while preventing insurers will support the aid and its Argentinean sister from accurately pricing the repair and organisation’s global company La República replacement of damaged property. humanitarian efforts. Compañía Argentina de The criticism of the new proposed The latest company to Seguros Generales S.A. for regulations are that, firstly, they would announce its intentions $119 million (£68 million). impose restrictions on insurers’ use of to join the Support The amalgamation of Cruz databases that contain extensive Group, along with del Sur and Royal & information that helps to establish the companies such as SunAlliance creates Chile’s value of insurance claims. The insurers Zurich Financial number one general would only be allowed access to Services, is Swiss Re. insurance company with a databases if the owners of those Board chairman Peter 22 per cent market share. databases provide the Department of Forstmoster stated: Cruz del Sur’s 2004 gross Insurance full access to this information. “Respect for Despite the tide of negative press that Marsh & written premiums were $195 million (£102 million), Being that some of the information may humanitarian values is McLennan has been generating of late, subsidiary its gross assets were $166 million (£86 million) and be proprietary, insurers will not be able indispensable to our company Marsh Inc. has managed to secure a its combined ratio was 95.8 per cent. Chile has a to assure that this information will be society’s sustainable consulting and risk management services contract stable and developed insurance market and the made available to the department. development. And for the 2008 summer Olympic Games in Beijing. acquisition is in line with the Group’s strategic aim of Therefore, according to insurers, the Swiss Re, as a leading Marsh was selected, by the Beijing Olympic Games building strong positions in selected markets to regulations would jeopardise insurers’ use of global reinsurer, has made a commitment to organising committee, after a highly competitive deliver sustainable profitable performance. databases that they use to achieve fair settlement of sustainable development and thus wishes to support bidding process. “We are honoured to be selected Simon Lee, chief executive of Royal & SunAlliance claims. Other criticisms stated that the regulations the ICRC.” to provide risk and insurance services for this International Businesses, said: “We have developed would prevent insurers from depreciating labour for Swiss Re is to pledge a substantial sum to the ICRC prestigious global event,” said Patrick Vajda, head of a strong Latin American portfolio which has been actual cash value claims. The Department of over the next six years. It is a mutually beneficial Marsh’s global events practice. Marsh will work in built through a combination of organic growth and Insurance is proposing the insurers, in determining arrangement for the companies involved, as these collaboration with China Sports Insurance Broker acquisitions. This deal combines the technical the cost of a loss, separate the materials from funds will assist the ICRC in continuing its work and Co Ltd to provide risk identification and assessment expertise of Royal & SunAlliance with the labours costs, thus the materials could be finance for further education and training. In return, in conjunction with a host of other services. distribution of Cruz del Sur. It positions us well for depreciated, but the labour would not. Fuller firmly this partnership also fosters the sharing of PICC Property & Casualty Co Ltd was picked as the growth and generates significant operational concludes: “Insurers are opposed to these information related to risk management, human official insurance partner for the games – the 10th synergies. In Chile it creates a powerful and regulations because we want to do everything resources, logistics, IT and communication. “This corporation to sign on as a partner for the Beijing dynamic market leader whilst in Argentina the possible to keep costs down and to accurately and commitment represents the first institutional and Games. As in previous Olympics, terrorism transaction further extends our geographic reach.” efficiently evaluate the cost of claims. These long-term co-operation agreement between the coverage will be one of the primary concerns for The transaction is subject to regulatory approvals regulations would prevent us from achieving both of ICRC and the private sector,” a spokesperson from insurers and risk managers. and other conditions. these goals.” the ICRC added.

International Travel Insurance Journal www.itij.co.uk INSURANCEMATTERS 9

Japan Post sell-off ABI calls for bond Tighter rules for the US P&C industry in

The Japanese Prime Minister, Junichiro Koizumi, has investigation insurance industry profit despite storms agreed to privatise the country’s postal system, which has $3 trillion in assets and has a number of The Association of British Insurers has quietly urged Following an increasing number of complaints from Rating agency, A.M. Best, has announced that the US other services under its belt, including the sale of credit rating agencies to modify the way they grade customers and consumer groups about the way property and casualty (P&C) industry has recorded an savings and insurance products. European corporate bonds, so that investors are policies are sold, the Financial Services Authority (FSA) underwriting profit of $13.2 billion during the first six Analysts are mostly behind Koizumi’s efforts to end able to gauge better where they will stand in the in the UK has announced plans to review regulation months of 2005. the practice of government borrowing at low cost event of a leveraged buy-out. of the insurance industry. The agency said stable operating results drove the from Japan Post in order to finance Japan’s huge Such a move has been prompted by recent The review will not start industry’s surplus base to a new high, despite debt load, which is approaching 150 per cent of the concerns that many traditional bondholders, such as until next April – a fact unrealised capital losses, increased shareholder country’s GDP. It is said that Japanese insurers will insurance companies or pension funds, could, in the that consumer watchdog dividends and other losses in surplus as insurers gain from the privatisation, as it will level the playing light of a recent boom in private equity buy-outs in Which? is not happy continued to reap the benefits of the hard market. field for financial and insurance products, and Europe, face unexpected losses on their about, deeming that six Good news is that the overall impact of the recent stimulate the country’s investments. These worries have been months is still a long time storms is not expected to create widespread highly competitive private highlighted by Goldman Sachs’ for people to continue to solvency issues. Rather, A.M.Best expects a few insurance sector. unexpected take over of ISS, a Danish buy these products. insurers that will not be able to recapitalise their The first step of the cleaning company. The move caused Nevertheless, the FSA’s balance sheets to the level that supports their privatisation is the unexpected losses for investors, as ISS’s campaign to improve ratings, or whose risk management capabilities formation of a holding bonds moved from investment grade to payment protection have been called into question, will suffer company, in 2007, which junk bond status without any insurance will start as early as this November. Last downgrades to their financial strength and will take over control of compensation for bondholders. For January saw the introduction of tougher rules to credit ratings. the system, and separate those who have challenged Goldman counteract mis-selling, which will have been in place Despite the solid results posted for the first six months it into four divisions: Sachs over the loss, it is unclear for 16 months when the general review starts. Added of 2005, A.M. Best Co. is concerned, however, with savings, insurance, postal whether they have a case, since when pressure also came from Citizens Advice, the debt the reduction of year-over-year premium rate services and human these ISS bonds were issued there counselling service, which filed a ‘super complaint’ increases that persisted for consecutive reporting resources and property were no covenants preventing a change with the Office of Fair Trading to obtain a fast-track periods since 2003 and gave way to premium management. The of corporate control. review of payment protection insurance. decreases across most lines of business and sizes of company will begin to In the light of these events, however, The issues that have prompted most complaints, aside accounts in 2005. gradually self off parts of the ABI is now meeting bankers, from payment protection, include critical illness cover Through the first six months of 2005, the P&C Japan Post, but the lawyers, investors and issuers to draw and key facts documents. It is often the case that industry continued to build upon its capital base savings and insurance up a new framework for bond issuance insurance companies and brokers sell these policies to through strong operating results. These results were divisions will be permitted that can give bondholders better clarity people who are not suitable or do not fully explain driven by both a significant underwriting profit and to maintain cross over their rights. Whilst some rating the exclusions on critical illness policies. Key fact increased investment income from a larger shareholdings in one analysts welcome the move, others, documents that are meant to provide a summary of investment base. However, while the first half of the another to protect them from takeovers. such as Standard & Poor’s, warn against it on the cover and exclusions are not always provided, or are year had relatively low catastrophe losses, the full year The sell-off remains controversial, however, as grounds that its ratings narrowly focus on the ability far too lengthy. 2005 will end up being one of the worst catastrophe many of Japan Post’s 25,000 branches are in rural of a company to repay debt, rather than other The FSA has said: “We are determined to improve years for the US P&C industry, driven by Hurricane areas and local populations largely depend on them issues such as event risk. Analysts warn that the standards in this market and intend to publish Katrina losses. for banking and insurance. There’s also the question issues could gain more urgency in the months examples of good and bad practice so firms know Nevertheless, A.M. Best believes that 2005 will be a of how many of the approximately 260,000 ahead, as the growing size of private-equity funds what we expect.” Which? said it wanted to see profitable year for the P&C industry, although a workers currently employed by Japan Post will allows buy-out groups to become more ambitious tougher rules applied to the selling of payment second consecutive year of underwriting profit may retain their jobs. in their deals. protection. be in question.

www.itij.co.uk International Travel Insurance Journal 10 INSURANCEMATTERS NEWSWIRE Katrina causes an AXA plans expensive France insurers

insurance stir claims change bounce back he fastest growing reason for travel in the UK is T effecting the travel insurance market; latest In the ensuing devastation of AXA chief executive, The French insurance industry has recovered its reports have revealed that visits to friends and Hurricane Katrina, insurance Peter Hubbard, has health after the shaking it received from the relatives was the fastest growing segment in terms of technicalities are rife, leading to revealed that the World Trade Centre terrorist attacks in 2001 and reasons to travel in 2004, and in terms of the number lawsuits being filed left, right and company has the two hurricanes that battered parts of France of trips grew by 14.7 per cent. The travel insurance centre. With tens of thousands planned a at the end of 1999, according to the national market grew by over eight per cent in 2004 due to a of homeowners invariably going fundamental change insurance authority. Barbara Casassus reports resurgence in the number of visits abroad, premium to discover that their insurance in the way that they from Paris rate hardening throughout the industry and a claims will not cover the cost of handle their claims, substantial rise in the number of package holidays, rebuilding their homes, epic by deploying a The Commission de contrôle des assurances, particularly to North America. battles are set to ensue, many of multi-million pound des mutuelles et des institutuions de prévoyance which will have to be settled in investment in a (CCAMP) said in its annual report for 2004 that loyd’s announced an interim profit of £1.38 court leaving home owners in drive to bring all both the life and non-life sectors had picked up well, L billion ($2.47 billion) for the six month period limbo until such time. claims handling in-house under a single system. while officials added that cyclone Katrina should not ended 30 June 2005, a 21 per cent increase One of the first claims to be made was by The insurer plans to invest £10 million in a move cause major problems since French exposure to the compared to the same period in 2004. Despite the Mississippi Attorney General, Jim Hood, who has that will create a claims settling process into the main disaster is fairly limited. This was the first annual severe hurricane impact and in the absence of any accused five US insurance companies of trying to selling point of the company. Currently, it can take as report drawn up since the two insurance further major catastrophe or unforeseen events, the trick Hurricane Katrina survivors out of millions of long as six months to settle claims, and Hubbard is authorities, the CCA and CCMIP, were merged in market is still expected to make a profit in 2005. dollars in damage payouts. The issue has become intent on changing this. He believes that within five July 2004. an extremely grey area, as insurers and years, the bulk of AXA claims will be handled within In France, the industry scored a five per cent ingfisher Assistance Limited, an emergency policyholders are trying to discern exactly what is seven working days. He plans for both commercial increase in activity last year, and reported total K medical subsidiary of Whiteley Insurance covered in policies. The intricacies in the difference and personal lines claims to be handled on a single profits of more than €7 billion. Even so, the mutuals Consultants (WIC), went into insolvency on 15 August between wind and rain damage, storm surge and system by the end of the year, bringing everything are still too dispersed and many do not have the 2005. The liquidation of WIC on 15 June 2005 is the flood damage has become a very volatile issue. in-house. The idea is to create a paperless office critical mass they need to survive the competition, reason stated. At the close of business they had debts Hood is insistent that insurance companies are with a new workflow and image system so that all officials say. Of the 2,400 mutuals in France, 100 are in excess of half a million pounds. asking policyholders to acknowledge that damage is communications will be on screen. responsible for two-thirds of their total turnover. flood related, which they are not covered for. It also aims to substantially cut the level of The authority also took disciplinary action against a rofitability among New Zealand’s non-life (P&C) Louisiana’s commissioner from 1992 until 2004, Jim outstanding claims, and believes that a shift to number of operators who stepped out of line last P insurers is expected to remain sound for the Brown, believes that only a quarter of houses in the electronic handling of claims would drive forward all year. Fédération Continental, a subsidiary of remainder of 2005 and into 2006, according to poorest areas affected by Hurricane Katrina had these changes. AXA currently already processes Generali France, was fined €300,000 for failing to Standard & Poor’s latest report card on the sector. It flood insurance. Standard insurance, held by the 99.9 per cent of all new business on a single respect its obligations in cracking down on money has rated 25 non-life insurers in New Zealand with a vast majority of homeowners, will cover storm electronic system which will help lead to a rapid laundering. Another case now in appeal before the ratings distribution firmly skewed toward the strong damage but not flood damage. Realistically only speed of service. Council of State involves Predica, the life-insurance rating categories. Seventy-five per cent are rated ‘A’ about 20 per cent of damaged homeowners would subsidiary of Crédit Agricole. It is under fire for category and above, and there is an emerging sector have thought about purchasing flood insurance altering group contracts and for the terms covering of ‘B’ ratings in the small start up insurers who provide because the water had never been known to reach underwriting provisions. During the year, the credit insurance and property-type insurance. such areas before. General Re chief authorities opened 12 disciplinary procedures, Even for the minority who did purchase flood including six against top executives, and issued six ardine Lloyd Thompson (JLT) has announced the insurance, the compensation falls very short; offering faces civil charges warnings. Despite this, the future is definitely opening of its new reinsurance office in Tokyo. It is losses of up to only $250, 000. Contentiously, looking brighter for French insurance companies. J to be a liaison operation rather than a many won’t even receive that much as many of the Due to an alleged role in overseeing a controversial transactional broker, offering access to London- accused insurers have been insisting that their reinsurance transaction with AIG, Joseph Brandon, headquartered JLT’s global reinsurance expertise and policies specifically excluded flooding caused by chief executive of Berkshire Hathaway’s General markets. storm surge. Thus, even those with hurricane Reinsurance and one of Warren Buffet’s closest protection clauses stand to lose out as they exclude confidants, is facing civil charges from the Securities lea, the London-listed Bermuda-registered water damage. “There is a big insurance gap,” Mr and Exchange Commission (SEC). A reinsurer, said it is considering putting itself up for Brown said. “In all likelihood, many people will Repercussions are serious, as Mr Brandon stands to sale yesterday after it suffered a ratings downgrade by suffer great financial loss.” be barred by the SEC from serving as an officer and Standard & Poor’s, the rating agency. The hardest decision, which will have to be deferred director of a public company. Two former senior to the courts, is whether damage was caused by General Re executives have already given guilty ssicurazioni Generali S.p.A has issued a statement wind or rain, in which case insurance companies will pleas to charges of fraud for their involvement in A to clarify rumours regarding the acquisition of a be liable, whereas if water comes from the ground, arranging the transaction and have since been fired. minority of the subsidiary company Alleanza they forgo responsibility and the Federal Flood It appears that federal regulators are taking a tough Assicurazioni S.p.A. It said that such an initiative has not Insurance Programme is liable (See ITIJ 57, October stance of Berkshire Hathaway’s alleged involvement been subject to evaluation by the company and is not 2005, Katrina: wind or water). Many homeowners in inappropriate accounting practices and that currently part of the Generali Group’s plans. will argue that the flooding was caused by the wind possible charges against Mr Brandon may be used and torrential rain, which led to the bursting of as an example to the insurance industry. .M.Best Co. has downgraded the financial levees in New Orleans. Reconstruction cannot begin The transaction, which involved General Re paying A strength rating (FSR) to ‘A’ from ‘A+’ and has until insurance money has been procured, and AIG $500 million in premiums in 2000 and 2001 to assigned issuer credit ratings of ‘a+’ to Allianz Life insurers are certainly not going to concede take on the payment of claims that General Re had Insurance Company of North America and its responsibility for flooding in a hurry, to do so would incurred in earlier years, served to inflate the subsidiary, Allinaz Life Insurance Company of New York bring down many smaller insurers. financial figures. (collectively known as Allianz Life).

International Travel Insurance Journal www.itij.co.uk

12 INSURANCEMATTERS NEWSWIRE Eliot Spitzer keeps industry on its toes Allianz in radical A merican International Group Inc. (AIG) has Eliot Spitzer’s campaign to clean up the insurance brokers prompting an investigation: Despite no reorganisation issued an estimate of its total expected losses relating industry continues apace. Whilst following up further mention of complaints by risk managers in Australia, to third quarter catastrophe events, principally claims against Marsh & McLennan, the New York no suspicious activity reported or leaks by Hurricane Katrina, totalling approximately $1.1 billion Attorney General has seen his probes encourage whistleblowers, Mr Spitzer’s actions prompted Aussie after tax. They estimate a total loss after tax, of countries farther afield to action responsible regulators to launch a six-month investigation of their reinsurance recoverables to be approximately $900 insurance measures. own. Fortunately, a clean bill of health was issued, but million, with an expected after-tax charge of around Spitzer may have sued Marsh & McLennan, in the main reason for prompting such investigations was $170 million relating to reinstatement premiums. October 2004, for an agreed $850 million, due to due to a substantial increase in contingent claims of bid rigging schemes, but that was not the last commissions. It also prompted Australian brokers to einsurers slumped after the double punch of of the company’s troubles. The world’s largest re-examine their own compliance procedures and R Katrina and Rita. Bermuda-based reinsurer insurance broker remains under numerous make sure the highest ethical standards were being PXRE Group led the declines, losing 13 per cent to investigations by state attorneys general and maintained. Although this did little to foster trust in $15.04. Endurance Specialty Holdings fell more than commissioners of insurance. Moreover, Spitzer has brokers, it reassured the consumer that the regulator six per cent and Montpelier Re dropped almost five announced the indictment of eight former executives is a responsible vigilant protector of their interests. per cent. Shares of property and casualty insurers also of insurance giant Marsh Inc., due to accusations of Meanwhile, Jeffrey Greenberg, former chief executive fell, Allstate Corp. declined by 2.9 per cent to collusion with executives at other leading insurance of Marsh & McLennan, who was ousted almost a year $51.55. companies to artificially inflate the price of excess ago by Spitzer under bid-rigging allegations, has casualty insurance. marked a come back. unich Re has issued an overall estimate on The indictments follow guilty pleas from 17 individuals, He is starting a private equity fund that will invest in M behalf of the insurance industry of US$40 including former Marsh employees. As Spitzer insurers and other financial services companies. billion as to the total impact of Hurricanes Katrina emphasises: “These indictments are part of a Although the exact amount to be placed into the fund, and Rita. It has also raised its own exposure to around continuing effort to hold individuals accountable for bid which is to be called Acqualine, is unsure, there have €650 million ($782 million) after tax. rigging and other illegal activities that defrauded been suggestions of as much as $1 billion, all of which insurance clients.” Investigators have spent hours will be raised from private investors. he US P&C insurance industry’s net income after trawling through internal documents and reviewing Spitzer has also issued a recent subpoena to St Paul T taxes rose 29.1 per cent to a record $30.9 billion thousands of internal emails in an attempt to work Travellers, requesting documentation and information in the first half of 2005, from $23.9 billion for the same their way up the Marsh chain of command, in the about the reporting of workers’ compensation period in 2004. In a reflection of the industry’s income, hope that they will discover those who orchestrated premiums. The Hartford Financial Services Group was its consolidated surplus increased 4.7 per cent to the fraud. The indictment charges the eight individuals questioned over this matter also, but both companies $412.5 billion at 30 June from $393.8 billion at year- with Scheme to Defraud in the First Degree as well as have refused to elaborate, outlining only that they Allianz, Germany’s largest insurance group, has end 2004. It will need such good results, however, as it other various accounts of felony. were co-operating with Spitzer’s office. announced a radical structure transformation. has to deal with the forthcoming insured losses for A further problem, highlighted by Spitzer, is trying to According to the Wall Street Journal, a top lawyer for Having come from boardroom machinations across Hurricane Katrina and Rita. bring under control contingent commissions that insurer AIG warned the company’s chief executive in Germany, through cross-shareholdings and shared also artificially inflate the price of commercial 1992 that the reporting of workers compensation directorships five years ago, few would have GF recorded better than expected results with insurance – although legal, insurers tend to use premiums was ‘permeated with illegality’. predicted its current move forward. In what is a A an 8.5 per cent rise in interim profits amid them to funnel to brokerages in return for more The company then allegedly booked some of the huge streamlining operation, it is to pioneer a new speculation that Allianz, its German parent, is business, linking them to kickbacks, a practice that premiums as coming from general liability policies, to European company structure – a move that creates considering buying out minority shareholders. has had international reverberations. reduce certain state assessments that are based on a new legal framework and avoids the company Executives say that such a deal might make sense in Spitzer’s influence caused red flags as far afield as premium volume. It is undetermined whether this having to adopt different forms in each jurisdiction the mid to long-term but is not currently on the Australia, with his probes into bid rigging and practice being more widespread in the industry is at in the European Union (EU). Such a move also agenda. contingency fee abuse on the part of insurance the root of Spitzer’s concern. sees it claim to be the most international business on the continent. quitable policyholders have demanded the The company, which is to call itself Societas E resignation of Vanni Treves, chairman of the life Europea, or SE Allianz, is staging a €5.7 billion assurer, after the collapse of the company’s court case ($7.05 billion) buy-out of its main Italian subsidiary against its auditor Ernst & Young. Riunione Adriatica di Sicurta SpA (RAS), a move that will enable it to behave as one company across the on, the world’s second-biggest insurance broker, entire EU. According to Paul Achleitner, chief A is to cut its UK workforce by 750 in the next financial officer at Allianz: “We think it sends a very two years to rationalise UK operations. Falling strong signal that even though our headquarters are insurance premiums and changes to commission that in Munich, we are a European player and we use have been bought about by challenges to practices by that base to compete globally.” This move will make Eliot Spitzer have been blamed. cross-border acquisitions more efficient as well as streamlining its corporate governance and reducing urich Financial Services Group announced today red tape. Although a very important milestone, it Z that, based on preliminary assessments, it still runs the danger of becoming an operational expects aggregate claims payments related to millstone. Allianz shares fell more than three per Hurricane Katrina of approximately $600 million cent as it moved to raise up to €2 billion ($2.5 after tax. billion) in fresh equity capital to finance the RAS deal. Moreover, losses from Hurricane Katrina have ermuda-based Max Re Capital Ltd said that been reported by Allianz to be as much as €470 B preliminary estimates indicate that the million, affecting net income by €300 million – company’s 2005 third quarter earnings will be nonetheless, it maintained its full-year profit targets. negatively impacted by $60 to $90 million as a result of Hurricane Katrina. Max Re is still calculating losses from the previous hurricane that hit the US in late August. FirstAssist returns erkshire Hathaway (BKRA) (BKRB) said it B expects to pay between three per cent and five to core business per cent of total industry losses from Katrina. Leading health and wellbeing services provider, ebraska-based Physicians Mutual announced it FirstAssist, is selling its private medical insurance arm N will not cancel any coverage for non-payment of of the business to Standard Life Assurance premiums and will extend grace periods for those Company. The latter has boosted its own portfolio policyholders impacted by the effects of Hurricane and increased its number of customers for its Katrina. These extensions give policyholders important subsidiary company, Standard Life Healthcare leeway as they begin to rebuild their lives. Limited, to 650,000 with this acquisition. Tim Ablett, chief executive of First Assist, has ccording to catastrophe modelling firm, Eqecat dubbed the sale a collaborative venture. He stated: A Inc., wind damage from Hurricane Rita may “This sale gives FirstAssist the opportunity to cost insurers between $9 billion and $18 billion. The accelerate development of its health and wellbeing estimate was made based on Rita hitting land propositions which have been at the heart of our between Port Arthur, Texas and Orange. Rita also hit business strategy since the management buy out in the Florida Keys before moving into the Gulf of Mexico 2003.” FirstAssist will now be able to focus solely on and insured losses from that could range from $300 its travel and assistance arms of the business. The million to $800 million. acquisition is completed in the first quarter of 2006, subject to FSA approval.

International Travel Insurance Journal www.itij.co.uk INSURANCEMATTERS 13

Guarding against terrorism losses AIG goes it alone in Lost property hits

The recent National Symposium on the Future of commercial interests will not be able to secure any China $3.5 billion Terrorism Risk Insurance has created a debate terrorism coverage at all, thus current capacity is among insurers. Aon is the first insurer to come very limited. Aon Re, the company’s reinsurance American International Group Inc. (AIG) isn’t UK tourists on holiday appear to show little regard forward, insisting that the private insurance market brokerage group, has put forward its proposed looking for a joint-venture partner in China, chief for their own personal property, returning for home will not be able to operate properly, without some framework of a solution. It is a proposal that executive Martin Sullivan has insisted, and the from summer breaks with significant items missing. form of public backstop against catastrophic terror involves the creation of a privately funded, federally company plans to continue expanding its wholly The new research from Lloyds TSB Insurance losses. mandated ‘facility’ and bonding process that would owned insurance operations in the country. shows that personal belongings totalling as much as Aon believes that the Terrorism Risk Insurance Act support insurers’ ability to provide adequate and AIG has been allowed to own 100 per cent of its £2 billion are being left behind in tourist destinations 2002 (TRIA), although not affordable terrorism coverage. Its local Chinese operations – while other foreign – negligent packing has been blamed. Moreover, 15 perfect, went a long way long-term solution, which insurers are required to operate through joint per cent of these travellers are uninsured. towards providing the proposes significant federal ventures with local firms. The concession was Of those questioned, 56 per cent said they’d left terrorism insurance government legislative action, is negotiated many belongings abroad, the most market with tremendous outlined in the following key years ago and common forgotten item being benefits, in terms of principles: AIG was allowed toiletries (25 per cent), clothes (23 increasing capacity and • Facility will be structured to to keep it even per cent), sunglasses (17 per cent) decreasing the price of fund up to two $40 billion events. after standard and jewellery (five per cent). The terrorism coverage. Vice • US Government to attach in terms for all main theory suggested for this president of Aon Property excess of $40 billion up to $100 foreign insurers problem is the reluctance of Syndication, Aaron Davis, billion, with losses above $100 were imposed in people wanting to admit that the commented: “Insurance is billion to be reviewed by 2001, when holiday is over and they have to a lynchpin in any congress. China joined the return home soon. Phil Loney, economy recovery • Losses up to $40 billion in World Trade managing director, Lloyds TSB following a catastrophe excess of cash accumulated in the Organization. Insurance, advises: “The post loss.” Davis went on to facility will be funded through “We would like holiday blues are hard enough to emphasise that the less issuance of tax-exempt bonds. to expand our handle, without the added stress of insurance risk transfer, the • Facility will be tax exempt. branch lost property. Leaving behind the greater exposure there • Facility to provide 95 per cent operations on a odd toothbrush isn’t so much of a was to the general quota-share reinsurance coverage wholly owned problem, but forgetting more economy. Much of the on covered losses up to a total basis,” Sullivan valuable items can cause real economic burden will fall industry loss of $40 billion. said. “That’s our headaches.” Bad planning is blamed upon governments, • Losses covered by the Facility strategy at the for such losses, with a simple particularly if there is a large percentage of will be above a reasonable industry and company present moment.” checklist providing a sensible alternative. uninsured. Thus, it seems to makes sense, in the level threshold from a foreign or domestic terrorism AIG’s plans are, however, controversial. European Ultimately, travel insurance is your best bet against light of escalating terrorism risks, for the event. insurers argue that the WTO deal means AIG can loss as even the most diligent bag-packer can’t public/private partnership that emerged after 9/11 to • The pool will cover all commercial and personal keep its existing branches, but that any future ones guarantee to remember everything, and it’s be further developed until such time as a private lines of insurance. would have to be in the same 50 per cent-owned reassuring to know it can be replaced. Lost property solution can be created. Byron Ehrhart, president of Aon Re Services, is of joint-venture structure required for other insurers. lockers in tourist hotspots worldwide are Aon has already witnessed a number of commercial the belief that none of the plan requirements are But at the moment, AIG seems to be moving overflowing once again, but very few people ever clients opting for terrorism cover in their property outside the realm of possibility. Although a long- forward alone. AIG has eight life insurance branch try to reclaim their personal belongings – less than insurance policies, as well as a substantial increase in term solution, many are key features of both TRIA licenses and three general insurance licenses in a fifth even make an attempt to retrieve the items pricing. Due to limited facilities however, many and other public/private services. China, Sullivan said, and hopes for more. they’ve left behind.

www.itij.co.uk International Travel Insurance Journal 14 COMPANYBRIEF

Hi-tech Doha Bank launches Kanetix system Crystal clear at AIG

luggage travel insurance offers Internet savvy Insurance provider AIG Europe (UK) Limited (AIG) has joined forces with reunited Doha Bank has launched a A national online insurance independent Lloyd’s broker new travel insurance marketplace in Canada, John Holman and Sons Customers purchasing product that covers kanetix, has introduced Travel Limited to launch a new their holiday cover with medical expenses and Underwriters to its list of travel travel insurance product American Express Travel hospitalisation, as insurance providers. The available to brokers through Insurance, are being well as many other kanetix system allows users to a high-tech extranet system. offered a permanent losses. Qatar obtain customised quotes that The Websure extranet solution to the General consider factors such as the technology, developed in problem of lost Insurance and number of people travelling, response to the Financial luggage. By giving Reinsurance travel dates and frequency of Services Authority’s rules on every customer hi-tech Company underwrites travel. Within minutes, insurance sales, is reportedly luggage labels, the company the travel insurance, and consumers can view side-by- very easy to use, guiding the is making an innovative effort the traveller can buy a policy up to a maximum side policy comparisons and broker through the necessary to reunite lost luggage with its rightful owner. period of 90 days. view policy details and costs. regulatory steps to selling a Those taking out an annual travel policy are issued Annual multi-trip policies are also available to The application for coverage policy and allowing key facts with a set of i-Trak luggage labels that carry a frequent travellers and senior executives. can then be completed online documents and policy personal barcode. In the event that luggage is lost, R Seetharaman, acting general manager, said that or over the telephone. wordings and certificates to whoever finds the luggage can contact the owner by this policy can cover travel anywhere in the world The move is reflective of the be downloaded and printed email, text or the airline’s own Telex system. including the US and Canada and is accepted by ever-growing trend in Internet at the point of sale. Embassies for Schengen Visa requirement. advertising and an expanding The obvious benefit of the Moreover, it is an unusual policy in its willingness breed of Internet-savvy system is the elimination of to cover travellers up to the age of 85. shoppers. Online insurance the traditional pad-based Solid as a rock Manoj Kumar, head of bancassurance, comparison sites are becoming fulfillment method, which commented: “The insurance policy, however, is more popular around the means brokers do not need Also getting on board the online sales boom is Rock subject to deductibles that are different for world, as people become used to the simple and to store stocks of pre-printed material, and it also Insurance in the UK. The company has re-vamped different age groups.” Other terms and swift method by which to purchase cover when does away with the need for brokers to re-key its website to provide travel agents, tour operators conditions apply. traveling away from home. information onto computer systems, streamlining and brokers the tools they need to sell travel the sales process. insurance online, including the ability to issue Additionally, AIG has been working with policies, access reports of their online sales and find InsureandGo to obtain the Plain English Campaign the answers to common questions. The system is Fortis bags a little extra Crystal Mark for the travel policy is provides for backed up by a dedicated technical support team. them. The Crystal Mark is the Plain English Now in its fifth year of trading, the company seems Fortis Insurance, in the UK, has recently secured the as tour operator Travelsphere, and from 1 Campaign’s seal of approval to say a document is as to be going strong. Recent account wins with travel travel insurance business for Holiday Extras. The December, these will also be distributed via a clear as possible for its intended audience, taking agent network Travel Counsellors and cruise retailer deal follows an extensive appraisal of offerings and network of over 1,500 travel agents and tour into account language and design. To enhance the Cruise Control have meant the additional capabilities within the insurance market, and builds operators. The company further announced the travel product further, assistance providers First recruitment of call centre staff to support the on an established working relationship. acquisition of OutRight, a solutions provider focused Assist and AIG International Services have been existing team in their fulfillment of travel insurance On 1 October, Fortis began underwriting travel on delivering intermediated solutions to the UK appointed to jointly provide the emergency medical contracts sold through the travel trade. policies for some of Holiday Extras’ accounts, such affinity, brand assurance and broking sectors. assistance of the policy.

International Travel Insurance Journal www.itij.co.uk

16 HEALTHMATTERS

Holiday drinking may cause early death Scientists come closer to SARS origin

A study carried out in Copenhagen has revealed that commented: “Holiday heart Bats have been pinpointed by a SARS, the Chinese must ‘cut down the use of the holidays could be bad for your health – if your syndrome refers to heart team of international scientists as bat for food and medicine’. However, Klaus Stohr, a holiday consists of heavy drinking that is. Researchers rhythm disturbances, which the original hosts of the deadly virologist at the World Health Organization, has in the US have discovered evidence to support the develop while a person is on severe acute respiratory syndrome stated that despite this being an important finding, existence of a ‘holiday heart syndrome’. vacation or away from work, virus (SARS). SARS emerged in many questions remain unanswered. For example, it For those who believe that heavy drinking is an and appears to be linked to southern China in 2002, infecting is still unknown how long the virus stays in bats or integral part of a relaxing break, by which scientists heavier than normal alcohol about 8,000 people and killing what specific genetic changes it undergoes. It is also mean more than 35 alcoholic drinks a week, they consumption.” more than 700. The results of a unclear whether the virus has to be passed through could be causing themselves atrial fibrillation: a rapid, The study was carried out on recent study suggested that SARS other intermediate animals before humans can irregular heartbeat. This is what happens when the 16,415 individuals with an is loose in the wild and could re- contract it. It does, however, take scientists one-step heart’s upper chambers contract too quickly. The average age of 50, between emerge to infect humans. The further towards determining the outbreak of SARS. heartbeat becomes not only irregular, but also less 1976 and 1994. The upside of this finding is that now Early research highlighted masked palm civets effective at pumping blood from the heart. In the researchers considered factors the authorities know the original (weasel-like animals) as the source of SARS. Last most extreme cases, the blood may pool and form such as smoking, education, animal host they can try to September further breakthroughs reported the clots which can travel to the brain and cause a income, body mass index and interrupt the transmission of the discovery of a SARS-like virus in Hong Kong bats. stroke. consumption of beer, wine virus before it infects people. The latest study backs up that finding and strongly Atrial fibrillation gives a person nearly a fivefold and spirits and 1,017 cases of Peter Daszak, an author of the indicates that the original SARS host was the increase in their risk of stroke. The leading author of atrial fibrillation were study, has said that in order to horseshoe bat, which is eaten and used for a paper written on this subject, Kenneth Mukamal, discovered. prevent another outbreak of traditional medicine in China.

Simple precautions to avoid DVT

Not so long ago, horror stories about the death threat from deep vein thrombosis (DVT), dubbed ‘economy class syndrome’, were commonplace. Now the furore has died down, it is necessary to consider its effect rationally. DVT is the formation of a blood clot in a vein deep within the leg, as a result of prolonged immobility. It has been suggested by some studies that as many as one passenger in 100 suffers DVT as a result of a long-haul flight. DVT can be hard to spot as there are no symptoms, although on occasion it will cause the leg to become swollen, red or painful. In the most serious situation a clot can break away and travel up to the lungs where it can cause a fatal blockage (pulmonary embolism). Sensible precautions, however, are all you need to reduce the risk of DVT. These precautions fall into two main categories: physical and chemical. Physical mobility is the best preventative action, getting up and walking around every hour or so will help. Even wiggling your feet around or pressing the balls of the feet down while raising the heel is enough to make a difference. Elastic compression stockings are worth the fashion faux pas as they really can help too. On the chemical front, what you eat and drink can affect the risk. There is debate as to the effectiveness of aspirin; some say that taking a low dose of it just before take-off will thin the blood. Others disagree. The UK Health Department said: “There is no evidence that aspirin is effective in preventing travel-related DVT.” You can never go wrong with water though. It keeps you hydrated and will get you up to use the toilet from time to time. Willpower may be in order to heed official advice, as alcohol is said to dehydrate you. Apparently, though, drinking beer rather than wine could offer a compromise.

Typhoid alert in South Africa

Since August, 596 people have been admitted for treatment in Mpumalanga, Delmas, in South Africa, due to a typhoid outbreak. Netcare Travel Clinic’s Dr Andrew Jameson has advised travellers visiting the area to get immunised against the fever. “The real risk for the average person is pretty low, but if people are visiting Delmas, they should be immunised,” he said. He went on to confirm that the cases of typhoid reported in parts of Gauteng were probably as a result of workers commuting from Delmas and preparing food in the province. He emphasised that he was quite confident that there is no risk that these particular cases are connected with water.

International Travel Insurance Journal www.itij.co.uk HEALTHMATTERS 17

Genetically modified mosquitoes may save thousands of lives

It appears that scientists at Imperial College London, offspring, wiping out mosquito populations in target UK, have overcome the long-term difficulty of areas within weeks. recognising male mosquitoes from female ones, by Depending upon the success of this practice, the next making genetically modified (GM) versions of the stage will be to scale-up the technique, providing insect. Whether such advances will be made in time to millions of GM insects needed to make a large-scale tackle the current protestations of low drug orders for release effective. Professor Crisanti has said that this malaria-prone areas is another question. practice will be able to be applied long-term to all The team, led by Andrea Crisanti, believes that its species of mosquito. Moreover, because the new GM West Nile cases 100 stricken with genetically modified mosquitoes could soon be mosquitoes are sterilised, they pose no significant risk released into the wild in an attempt to combat malaria. by being released into the environment. keep rising in US food sickness Previous attempts to release sterile mosquitoes into This comes as promising news, following the latest the wild have been hampered by an inability to reports of unexpectedly low orders for a pioneering Following last year’s pattern for West Nile cases in the The Colorado River, which attracts about 25,000 distinguish the males, which do not bite people. Testing malaria drug – although the chances of the tests being US, California has led the country this season with visitors a year on its river trips, witnessed a serious has continued however, as this practice has been tried ready in time to combat such failure are slim. Swiss the number of cases in the state topping 800 in bout of food sickness in recent months. North and tested for other species, such as the screwworm pharmaceutical group Novartis said it had only October 2005. Arizona authorities are still trying to determine the fly, which was eradicated from the US, Mexico and received orders for 13 million treatments of Coartem, Sacramento County still leads all of the counties in source of the tainted food that has sickened about Central America. its artemisinin combination therapy (ACT), despite California with a total of 170 cases. Only two other 100 people on the boat trips. The gastrointestinal The team has added a gene that makes the testicles of health expert estimates that realistic number necessities states have witnessed more than 100 cases this illness has affected tourists on 12 different trips with the male mosquitoes fluorescent, allowing the scientists fall closer to 30 million. Such news has forecast the season – South Dakota, with 208, and Illinois, five different tour companies, all based in Utah. to distinguish and easily separate them from the possible deaths of thousands of people unnecessarily with 172. According to Adam Kramer, a public-health specialist females. from malaria in the coming months. This shortfall Despite a continuous climb in numbers, state officials for the National Park Service, a sample of analysed The plan is that these males will be bred, sterilised and highlights failings in the complex international have confirmed that the pace of the disease is slowing. food has tested positive for norovirus, not a good sign released into the wild in the hope that they will breed mechanisms set up to fund, procure and supply “It appears the peak transmission season was the end for the Grand Canyon river runners. An outbreak of with the wild female mosquitoes but produce no treatments for malaria. of August, as West Nile activity is tapering off,” said Dr norovirus, a group of viruses that cause stomach flu Bicki Dramer, chief of the vector-borne disease typically lasting for 24 to 48 hours, caused the NFL’s section of the state Department of Health Services. Arizona Cardinals to move their entire training camp When dealing with West Nile virus, prevention is the last July. Dengue fever on the increase best bet. Fighting mosquito bites reduces the risk of Most of the victims appeared to have gotten sick at getting the disease. Symptoms can include high fever, the beginning of the trips, some of which last for two Brazil has reported over 100,000 cases of Dengue dengue virus stereotypes one, two and three has been headache, neck stiffness, stupor, disorientation, coma, weeks if the parties travel the more than 200 miles fever in 2005, with an increase in 19 states. The identified in 24 states or federal units. At the moment tremors, convulsions, muscle weakness, vision loss, from the beginning point at Lees Ferry to Lake Mead. secretariat of Health Surveillance has reported that 72 cases of DHF with five deaths have been numbness and paralysis. One tourist’s medical complications became so severe after two years of decreasing results, the numbers are confirmed. What is disturbing about this increase is that The federal Centres for Disease Control and that he had to be airlifted from the river inside the on the up again. this occurrence has taken place before the traditional Prevention reported in October a total of 1,804 Canyon. The investigations so far have been focusing From January through to May 2005, 79,674 cases dengue season, which is during the rains in November, human cases of West Nile virus in 2005, more than on meat products in warehouses owned by the have been reported, 30 per cent more than the same December and January. Moreover, dengue type four the total of 1,784 reported in all of 2004. So far this river-tour companies, many of which rely on period in 2004. Eight states have shown an overall has not been seen in Brazil since the 1980’s, but is year, 52 people have died from West Nile in the US, placing food in containers in the river water to reduction compared to 2004, but 19 states have currently circulating in Venezuela, French Guiana, 16 of them in California. maintain its preservation. shown an increase. The autochthonous circulation of Colombia and Peru, all neighbouring Brazil.

www.itij.co.uk International Travel Insurance Journal 18 AIR AMBULANCENEWS

Tragedy strikes medical air industry A call for larger rotorcraft In what comes as sad news to the air ambulance 47-year-old pilot, a 51-year-old physician, as well as industry, the intensive care helicopter stationed at a 44-year-old paramedic were on board and all four Natural disasters are hitting the headlines a lot infrastructure to maintain, crew and keep in Stuttgart airport crashed during a mission on 28 were killed in the accident. The experts of the these days, and getting casualties from the readiness large numbers of large rescues helicopters. September, near Weilheim/Teck, Germany. German Federal Bureau of Aircraft Accidents disaster zone is the highest priority among rescue Equally, mobilising Air Force, Coast Guard, or other The helicopter, Christoph 51, operated by the DRF Investigation could not find any evidence referring to teams. Robin Gauldie asks whether the search and rescue helicopters from North America (Deutsche Rettungsflugwacht e.V./German Air a technical defect of the crashed helicopter. The aeromedical insurance sector should be turning its or Europe to a rescue theatre in Asia, Africa or Rescue), was on its way from Gerlingen, near cause of the accident is still unknown and police collective mind to acquiring the capability to use South America requires resources that are currently Stuttgart, to Munich. A 28-year-old female patient, a investigations are ongoing. large rotorcraft only available to the military. But, as the American response to Musharraf’s pleas for help may show, Passing through Lima’s international airport recently, the military may have other calls on those resources. my eye was caught by a flotilla of a dozen ex-Soviet The US has plenty of helicopters in Iraq and on bloc military helicopters parked next to the cargo carriers and bases around the Gulf. Unfortunately, Luxembourg buys Devon gets second terminal. Among them was the largest rotorcraft I right now they are mostly earmarked for use in Iraq. have ever seen – a giant of a helicopter that looked Disasters like Katrina, the 2005 tsunami, and the third aircraft helicopter capable of lifting King Kong. Kashmir earthquake are not going to go away – but Prone as Peru is to earthquakes, volcanic eruptions nor will tourists be permanently deterred from Due to an ever-increasing demand for its services, Devon Air and El Nino floods, its air force needs a chopper visiting holiday paradises that can turn in hours, Luxembourg Air Rescue (LAR), an independent, Ambulance, fleet that can be used in a rescue and med-evac role minutes or even seconds into disaster zones. non-profit organisation, has purchased a third which used a (it’s also useful for the Geologists now claim that Learjet 35 to complement its fleet. The new Learjet second occasional bout of Governments should be the entire Himalayan region 35 is one of the youngest 35s on the market and is helicopter for sabre-rattling when – including popular tourist being upgraded with the summer, Peru is on the outs seeking to beef up their zones in India, Pakistan, the latest Raisebeck has recently with its northern Nepal, Bhutan and as far upgrade, which announced neighbour Ecuador, airborne search and east as Burma – has will give the that it is to with which it had a become highly active and aircraft higher stay on full series of border rescue capability. could experience a future speeds, longer range and time, skirmishes in the Diverting money away earthquake of 10 or more less fuel consumption. making 1990s). on the Richter scale. Even The second advantage of the new Devon the While I was in Peru, from blue-sky military familiar destinations close to Learjet is that it will be equipped with a only single around 4,000 people home are not immune: double stretcher. With the ever-increasing county in the UK to have two air ambulances. It is were made homeless research into outré France in recent years has amount of airline companies refusing due to the amount of support received that they by earth tremors in seen disastrous forest fires stretcher flights, LAR will have been able to keep hold of the helicopter the southern weapons and tried and and a heat wave that was be able to take one after their temporary period. Moquegua region – an tested emergency blamed for up to 10,000 critical and one They are very proud about this news, event that would not deaths. Turkey and Greece less critical especially in light of the influx of holidaymakers into have made big world management fleets might have both suffered lethal patient on the Devon during the summer period. New buildings headlines in any case, earthquakes. Italy has its same flight, thus are being constructed in order to accommodate and which was quickly be a good idea. brood of active volcanoes. reducing costs for both police and air ambulance crews, which saves a eclipsed by the Arguably, it is only a matter assistance companies. great deal of costs for the charity. Kashmir quake. of time until huge numbers of tourists again find In Kashmir, Pakistan President Pervez Musharraf’s themselves in the wrong place at the wrong time. calls for aid highlighted the role of helicopters in Imagine, for example, an earthquake in the Greek getting help to crisis areas in a hurry: not just the islands at the peak of the summer tourism season. small rotorcraft that are employed in an air Perhaps governments should be seeking to beef up ambulance role in smaller incidents, but a flotilla of their airborne search and rescue capability. Perhaps military heavy-lifters. The response from the US was diverting some money away from blue-sky military to promise just eight military helicopters to help in research into outré weapons and into tried and succoring some 2.5 million people made homeless tested emergency management fleets might be a by the quake. good idea. And perhaps the aeromedical sector As the relief effort progressed, disaster relief teams should be considering ways of developing joint had around 30 helicopters available, but estimated initiatives with government to share its expertise and that they needed at least 100 to cope with the even make some imaginative contribution towards emergency. sharing the cost burden, providing that government- In an age of mass travel to areas that can become owned aircraft can also be made available to the natural or political disaster zones – whether that is private aeromedical sector too. Phuket, Sri Lanka, Kashmir or New Orleans – it is Downtime costs governments just as much as it tragically possible to imagine a need for aircraft that costs the private sector – more, probably, given big can perform mass med-evacs of large numbers of government’s notoriously spendthrift ways. tourist casualties. Does it mean that the state will Maximizing aircraft use, and charging the private become a larger supplier of such services – sector to use government aircraft could be one way potentially in competition with the private sector? of defraying the cost and expanding capability of Arguably, only governments have the cash or the dealing with large-scale emergencies.

IFRA celebrates 25th anniversary

On 21 September some 100 people met to Krems, and saw many representatives from different celebrate the International Flight Rescue Service countries, including Austrian ministries and Austria’s (IRFA) first 25 international politicians, years. Founded 1980 in pilots, doctors and Krems, Austria, the IRFA more. started out offering After a salutation by Dr ambulance flights and Christian Steindl, IFRA medical escorts on managing and medical commercial flights, but director, many people the main business grew spoke about their and after a time it began experiences in the last to provide medical 25 years of IFRA. assistance, The company was the predominantly in creation of Christian Austria. Steindl, medical doctor Today, it handles medical and pilot, and was cases worldwide and also provides road assistance in founded in December 1979. “I wanted to connect nearly every European country. The celebrations my hobby ‘flying’ with my profession and the result took place in the monastery Stift Göttweig, near was the air ambulance,” he commented.

International Travel Insurance Journal www.itij.co.uk

20 TRAVELMATTERS

Middle East wants NYC subway terror Castro slams cruise Spanair gets ready more travel initiatives finally tackled ships to battle

Despite being awarded Outspoken Cuban leader, Fidel Castro, has Spain’s second biggest airline, Spanair, has federal funds of nearly whipped up another hurricane in the Caribbean by announced plans to expand its domestic network, in $600 million over three saying out loud what many island nations only an attempt to head off future incursions into the years ago to develop whisper – that cruise ships bring little in the way market by budget carriers. David Ing looks at the security systems, the of benefits. David Ing reports on Castro’s airline’s proposal to beat off the competition Metropolitan disenchantment with the cruise industry Transportation The company, controlled by the owners of the Authority (MTA) US, Having seen tourism grow to become Cuba’s Marsans travel group and majority owned by SAS, has used barely a biggest money earner – with two million foreign says it hopes to grow its share of the domestic fraction of this grant. arrivals a year and almost US$2.5 billion in receipts passenger market to 30 per cent by the end of 2008. Up to now, the MTA’s – the commander in chief has accused the cruise To achieve this, it aims to launch a series of transversal post-9/11 strategy companies of filling the country’s ports with ‘rubbish’ routes that avoid passengers having to change planes against terrorism in the and, by staying only a few hours, failing to in Madrid. With both easyJet and Ryanair eyeing up subway system has contribute to the country’s coffers. the Spanish internal market, Spanair said its objective is been based upon the A recent government resolution declared that all the to ‘be ahead of them, flying point to point’. awareness of 7.7 ‘goods, equipment and installations used for offering Ireland-based Ryanair said earlier this year that it was Tourism ministers of Israel, Jordan, Egypt and the million harried passengers. A poster campaign (cruise) services will revert to the domain of the state’ looking at a network that will link Girona, in the Palestinian Authority are to request that the US lifts the throughout the subways displayed the message: “If – a statement that has been widely interpreted as the northeastern region of Catalonia, and the new Don travel advisory it has currently issued to citizens, you see something, say something.” The majority of beginning of the end for cruise ship visits. Tourism, Quijote airport, being built near Ciudad Real, with the warning against travel to the Middle East. these commuters, however, could not make a especially cruising, used to be big business for the other 12 Spanish airports where it currently operates. The ministers will also be requesting their respective phone call to report something in the subway island until the 1959 revolution and the consequent The Irish airline plans to be one of the launch heads of state to launch pro-active tourism campaigns through lack of reception. fallout with its then major market, the US. customers for this new airport, some 200 kilometres in the region. In a historic meeting, which saw the Following heavy criticisms for delaying further south of Madrid, when it opens in the second four ministers meeting in Hurghada, Egypt, all parties actions, the New York transit authority, in a bid to half of 2006. A direct high-speed AVE train announced their intention to work towards promoting harden itself, has unveiled two programmes – a connection at the airport will enable passengers integrated tourism between the countries. Due to $212-million surveillance system and a plan to wire to reach the central Atocha station in Madrid in certain issues over past agreements, namely the Paris the city’s subway platforms for mobile phone an hour. Agreement from the 1990s, which contained an service. Despite criticism on the expense of such a In a new study on the impact of budget obligation to accelerate the development of the Gaza move, and the added risk (it was a mobile phone carriers, the Institute of Tourism Studies (IET) Airport and Gaza strip tourism, the parties didn’t that was believed to have detonated the Madrid reports that they have already carved out a manage to sign a declaration of understandings but bombs of March 2004), the overruling consensus is substantial share of the country’s inbound now are in a favourable position to do so if such an that cellular service on subway platforms will help tourist market. Last year, they brought in 14 agreement were revalidated. New Yorkers report suspicious activity. million passengers – equivalent to 29 per cent Between the months of January and August 2005, Furthermore, ‘cell yell’ (overloud chat happy mobile of all arrivals. approximately 450,000 Israelis plus 160,000 tourists phone users) will be avoided because service would With annual growth for budget carriers leaping entered and departed through Egypt’s Taba terminal, cut out once trains enter a tunnel. by a third – compared with a one per cent fall and it is estimated that approximately two million New York is not alone in exploring mobile phone for traditional airlines – the UK’s easyJet and tourists will visit Israel until the end of the year, a 33 service; London’s Underground is also planning trials German airline Air Berlin were surpassed only per cent increase on last year. of mobile phone services on its system, the Tube. The new communist regime turned its back on such by Iberia in the number of passengers they carried. capitalist caprices until the 1990s when, as his old allies began to disappear, Castro accepted tourism as a necessary evil to bolster his country’s floundering economy. Cruising returned in 1998, when the Italian-Cuban group Cubanco was given a Airline profits blown concession to administer dock facilities. While the island’s biggest foreign cruise operator, away by storms Spain’s Pullmantur, is continuing to operate, sources suggest that although contracts will be honoured, Traditionally, the third quarter, July–September, is cruising appears to be on the path of extinction. the best period for the airlines to turn a profit due Cuba’s tourism minister, Manuel Marrero, has tried to the high volume of travel. Unfortunately, to calm troubled waters – for European operators hurricanes Katrina and Rita have put an end to the at least – by saying that relations with Pullmantur slim hopes that US airlines had for a profitable third ‘are very professional’ and that they are ‘ready to quarter. listen to offers’ from German and UK companies. Disrupted storm flights and jet fuel prices that have But, he added: “As a philosophy, we are not going been pushed to previously unimaginable levels are to support our tourism with cruising. If we are the resulting factor for lack of profit. The carriers building hotels, it’s for people to stay in them.” that were on target, previous to 29 August, for a profitable third quarter are Southwest, JetBlue, Continental, American and AirTran. But the effects of the storms on flight schedules and energy markets have reduced the list of likely money- Japan to introduce makers to just Southwest, the discount leader. This will see an extension to its streak of profitable Taiwan visa waiver quarters dating as far back as 1991. As the market leader in New Orleans, they used to run 57 daily Relations between Taiwan and Japan look set to flights in the area; now service has resumed with improve, despite criticism from China, with Japan just two flights operating daily. They hope to see a planning to introduce a permanent visa waiver gradual increase, as conditions in the area start to programme for Taiwanese tourists visiting the country. improve. The three Texas-based carriers – Although the two countries don’t enjoy official American, Continental and Southwest – are the diplomatic relations, the Japanese House of most vulnerable to widespread schedule disruptions Councillors seconded a bill of revisions to Japan’s because of their volume of flights in Gulf Coast cities law on the management of entry into the nation, and in Texas. and qualifications for refugee status. Such a bill will Whether operating widely in the Gulf Coast region see the visa-free perk that was initially introduced to or not, carriers have been slammed by the storms encourage Taiwanese tourists to visit the Aiichi financially, due to fuel considerations rather than just Exposition, on global harmony, which ended 25 disruptions. JetBlue, the New York-based September, expanded into a permanent system for discounter, has been given a final push into the red visa-free entry for Taiwan citizens generally. for the quarter by Hurricane Rita, according to CEO Taiwanese tourists visiting Japan for up to 90 days to David Neeleman. According to consulting firm Oil promote tourism and other exchanges between the Price Information Service, the price of Gulf Coast jet two sides will now easily be able to do so, fuel bumped up to about $2.25 a gallon amid according to the Foreign Ministry. It is not clear, worries about Rita disrupting refining and pipeline however, whether this waiver system will operations. The price just before Katrina hit was automatically cover private visits to Japan by $1.89 a gallon. Since 2000, US airlines have lost Taiwanese politicians. about $35 billion.

International Travel Insurance Journal www.itij.co.uk TRAVELMATTERS 21

Airlines furious over Europe says yes to Shift to airline e- Gap year travel is compensation laws in-flight calls ticketing big business

The international airline industry’s campaign to Contrary to the decision made by the US and The International Air Transport Association aims to The gap year market is still a relatively new overturn the European Union scheme for reported in last month’s issue, (ITIJ 57, October convert the entire airline industry to e-tickets by phenomenon, having only come into common improved compensation to travellers suffered 2005, In-flight mobile phonetalk quashed), two 2007, but there appears to be much disparity in the practice in the early 1990s. It is, however, an ever- serious setbacks when it was rejected recently. European airlines have convinced the Federal change-over. growing market, no longer reserved for The rules, which came into effect from February, Aviation Administration (FAA) to let them go According to a new students. Recent research from Mintel’s Travel are designed to compensate air travellers who ahead with in-flight mobile phone testing. survey, fewer than 20 and Tourism Analyst shows that older ‘career are denied boarding or whose flights are British carrier bmi and Portugese TAP, are per cent of European gappers’ and ‘pre-retirement travellers’ are cancelled or seriously delayed. The airlines, proposing to start trials of in-flight mobile calls on airlines have replaced breaking into the gap-year mould. however, have claimed that they should not be short-haul flights as early as 2006, subject to magnetic strip boarding According to analysts, the market is worth expected to pay compensation for events outside regulatory approval. The planes, which will be passes with bar-coded around £5 billion, accounting for between their control, such as delays caused by bad the first to allow passengers to make and receive versions, which can be one and 1.5 million trips a year. Predictions weather or strikes. calls with their own cell phones while onboard, printed out by for the future show a staggering doubling of The arguments, put forward by the International Air will give OnAir the chance to assess its service passengers at home. these figures, so that by 2010, an estimated Transport Association and the European Low Fares before its general release. Technology company However, across the two million gap-year trips will be made by Airlines Association (Elfaa), were rejected in their OnAir is to provide the testing facility and George water, 67 per cent of travellers from around the world, equalling a entirety by the advocate-general. He claimed there Cooper chief executive has allayed initial North American total expenditure of £11 billion. Mintel was ‘no doubt’’ the obligations imposed on air concerns: “During those three months [of carriers have made this research predicts that it is the older carriers were a ‘suitable and proportionate’ means testing], we’ll be evaluating how it’s going, what change-over. generations of travellers who will provide this of reducing the trouble and inconvenience to the usage is, how we handle the crew issues The suggestion is that boost to the market as changing work passengers resulting from and so on.” by 2007, common-use patterns, from long-life to more portfolio delays or cancellations. In response to accusations of OnAir’s system will be used by TAP on its Airbus self-service kiosks will careers, has enabled a wider number of discrimination between airlines and other modes of 321 model and by bmi on its Airbus 320s, both have become widely people to take career breaks between jobs. transport, he said that the rules on consumer single-aisle planes primarily used for traffic within deployed at airports The changing demographic population has protection must be of general application western Europe. Passengers will be allowed to and will allow also leant to this trend, as increasing numbers irrespective of the price paid for the ticket. turn their phones on after the plane reaches passengers to check in of older people in developed countries with Elfaa, which still hopes to annul the legislation, 10,000 feet, at the same time as other electronic regardless of the airline improved health and wealth are finding it state that the regulation had ‘created huge devices are allowed, such as laptops and portable they are flying with. But there still remains one easier to travel just prior to retirement. These confusion’ among consumers since its music players. In response to alleged fears that quarter of European Airlines who have not yet even 50–55 year olds, or ‘denture venturers’ as they introduction and this had been increased by they might interfere with a plane’s navigation moved to electronic ticketing. The survey, have been affectionately termed in the industry, are misleading information issued by the European system, OnAir explains that its facility is based in commissioned by SITA, the communications able to take a travel sabbatical now when money Commission. Under the current regulation, the plane, which it says ensures cell phones and company, and Airline Business magazine, shows that has been made and most commitments fulfilled, as compensation for denied boarding varies other devices operate at lower transmission 63 per cent of North American tickets are booked opposed to when they were younger when it according to the length of the flight from €250 power and avoid affecting the avionics. The other online, while in Europe and the Asia-Pacific region, simply wasn’t feasible. for flights under 1,500 kilometres to a maximum challenge would be persuading other passengers the respective figures are 24 and 10 per cent. It It is the UK gappers who account for half of all of €600 for flights of over 3,500 kilometres. of the benefit, rather than the ‘nuisance’ factor goes on to suggest that by the end of 2007, 44 per expenditure within this booming sector – the UK If the airline can prove that cancellation was posed by a cabin of chattering passengers. OnAir cent of carriers will offer some form of gap-year travel market today compromises of caused due to unavoidable or extraordinary responded that it had the technology to restrict communication between air and ground, whether approximately one per cent of all UK outbound circumstances then paying out compensation can the service to a text-only service at certain short messaging, e-mail, Internet access or the trips and around 10 per cent of outbound travel be avoided. prescribed quiet times during the flight. ability to make mobile phone calls. expenditure.

www.itij.co.uk International Travel Insurance Journal 22 NEWSANALYSIS

The cost of natural disasters

Natural disasters have become the single biggest More and more people are being caught up in a It is also salutary to remember that nature’s and southern Italy killing 123,000 people. Lesser risk both for insurers and policyholders. In the growing number of natural disasters, the UN’s awesome power can strike any community and not quakes have struck Italy since, and in 2003 there last issue of ITIJ, we reported on the devastating International Strategy for Disaster Reduction (ISDR) just those in exotic places. France’s southeast region was substantial volcanic activity on Mount Etna in effects of Hurricane Katrina (ITIJ 57, October 2005, says. The number affected this year is likely to run saw visitor numbers plummet two years ago as a Sicily. The Big Agony), and this month an earthquake in into hundreds of millions with a record number of result of unrelenting forest fires and the Prestige oil Pakistan. Robert Bailey surveys the wreckage fatalities. In the 10 years up to October last year, tanker disaster that polluted beaches from Bordeaux A changing climate the US alone had experienced 292 disasters to Biarritz. Most travellers and insurers have, at least until now, Nobody needs reminding, this year in particular, resulting in claims totalling $105 billion. ISDR’s The UK village of Boscastle in north Cornwall was been prepared to take such risks in their stride. The about the devastating effects of catastrophic natural director Salvano Briceno said: “Not only is the virtually washed away in a flash flood in 2004. frequency and severity of natural disasters, including disasters, with the losses from the Asian tsunami as world globally facing more potential disasters, but Many parts of Italy lie on a major seismic fault line. hurricanes, windstorms, earthquakes, floods, fires and well as earthquakes and hurricanes elsewhere still increasing numbers of people are becoming In December 1908, a 7.2-magnitude earthquake explosions, are, after all, inherently unpredictable. being acutely felt. vulnerable to hazards.” struck the Messina-Reggio Calabria region of eastern But are things changing? Estimates by the Association

International Travel Insurance Journal www.itij.co.uk NEWSANALYSIS 23

of British Insurers show that the worldwide costs of over health or safety after bookings were made. major storms are likely to increase by as much as However, some bespoke policies can be much more two-thirds to a total of $27 billion in an average year. flexible about trip cancellations, albeit for a premium. The UK’s Allianz Cornhill estimates that climate If a planned destination suddenly features in the media change is increasing the potential of property damage as the latest world trouble spot, rather than the at a rate of two to four per cent a year. CEO Andrew attractive location originally imagined, claims for Torrance said: “We agree with scientists who say that, refunds could depend on what advice is given by while natural catastrophes cannot be conclusively government – the Foreign and Commonwealth Office linked to climate change, the severity and frequency of in the UK, State Department in the US and other natural disasters have increased as a result of a foreign ministries in Australia, Canada and elsewhere changing climate.” that provide regularly updated travel advisory notices Premiums seem to be heading steadily upwards – on individual countries. certainly if travellers begin to demand more in terms Tour operators will, usually, exchange the booked of cancellation cover. Katrina and Rita are being seen holiday for another of the same value somewhere as vivid illustrations of the increasing severity of natural else, or defer the departure date to the same catastrophes and the complex world of risk that destination and, as a last resort, provide a refund if the underwriters operate in. According to ex-Lloyd’s chief original contract has in legal terms become frustrated. executive Nick Prettejohn, the severity of this year’s windstorm season and Katrina, in particular, will have a Predictable losses significant bearing on full year results. Policies are usually invalidated if losses are deemed to “The hurricanes are also likely to have the effect of occur through terrorist acts or civil unrest. In general it stemming the softening of rates in a number of classes seems to be a case of how predictable, if at all, the of business and indeed some rates are now circumstances were. As yet, predicting natural increasing,” he added. disasters is much more difficult than advising on However, the stark truth is that the amount of loss to political instability, but there are some guidelines. the insurance industry from natural disasters depends The typical Atlantic hurricane season, for example, almost entirely on where the catastrophes occur. runs from 1 June through 30 November. In the Anything major impacting on the US, or other eastern North Pacific, the season starts earlier, running economically advanced countries, sounds an alarm. from 15 May through 30 November. Anyone Elsewhere, even if huge loss of life takes place, the travelling between these times in the Caribbean, impact is not going to be felt in financial terms purely Mexico, and Central America and on the coast of the because of the low possession of insurance in certain US needs to look closely at their insurance, especially communities. if they are covered for trip cancellation. Recent events Fortunately for the insurance industry, the claims point to the hurricane season lasting even longer. arising from the tsunami disaster at the beginning of Speaking just months before the impact of Katrina and Rita, Professor Mark Saunders of the Benfield Hazard Research Centre at London’s University College, commented: “Following the ravages of 2004, the current and projected climate signals now suggest that we should prepare for another exceptionally active Atlantic season in 2005, a factor that underlines the ongoing need for vigilance on the part of government and citizens alike.” Allianz AG’s meteorologist, Matthias Klawa stated: “Hurricane frequency is influenced by both natural 2005 have proved much more modest than first variability and climate warming. We agree with predicted. Initial estimates by Lloyd’s put its members’ scientists who say that a changing climate is affecting losses at £100 million. Munich Re and Swiss Re the severity of natural disasters.” similarly estimated modest losses of £69 million and Munch Re’s chairman, Nikolaus von Bombard, said: £45 million respectively. “The natural events to date have cost substantially As a result, the insurance world, by and large, was more than for the first nine months of this year. We prepared to be flexible in interpretation of exclusion are nevertheless optimistic of achieving our result clauses when claims resulting from the tsunami were target of 12 per cent return on equity.” considered. A strict interpretation of standard Lloyd’s is also putting on a brave face announcing an exclusion clauses would have seen policies invalidated, interim profit of some $2.37 billion for the first six since the tsunami, a violent and sudden act of nature, months of 2005, a 21 per cent increase over the which could not have been foreseen or prevented, same period of the previous year. Even with the could legally have been deemed an Act of God. impact of the hurricane season, full year results are still The reaction by insurers amounted to good public expected to be positive. relations, but ‘bending the rules slightly’ might not Yet there are concerns. The UK Financial Services have been so easy if claims had run into tens or Authority has asked UK insurers for details of potential hundreds of thousands instead of the relatively low liabilities arising from Hurricane Katrina. Munich Re numbers experienced by companies such as Axa and puts the overall insured market loss for Hurricane Norwich Union. Katrina at up to $30 billion. However, there are said to be still ‘significant uncertainties regarding coverage To cover or not to cover issues and thus also about the actual loss burdens The most popular type of travel insurance consists of facing the insurance industry’. package plans that are pre-bundled by insurance With such uncertainties over the impact of natural companies and sold as a package of covers. However, disasters it is not surprising that demand is steadily trip cancellation is usually not included in these, since it increasing for catastrophe reinsurance and modelling is seen as a peril. Some natural disasters caused by as insurers face the prospect of big payouts from weather are covered by certain policies, as long as the disasters in the coming years. insured’s common carrier is delayed or cancelled as a Munich Re stated: “Catastrophes on the scale of direct result. Katrina and Rita can occur on virtually all continents. Claims for trip cancellations are usually only accepted The upcoming round of renewals in reinsurance if a claim meets clearly conditions defined in the body business must take account of the rising loss trends of the policy. For natural disasters, the claim is most and greater risk potentials. Substantially higher prices commonly considered to be valid using language such are necessary to continue covering natural hazard risks as the hotel or vacation provider was not functioning in the future.” for more than 24 hours. The climate appears to be changing before our eyes, After 9/11 and during the SARS epidemic in Asia, holiday for whatever reason, but one thing is for certain – or trip cancellation claims were invalid if a traveller insurers need to create strategies to prevent their decided simply not to go because of general concerns companies being broken by natural disasters.

www.itij.co.uk International Travel Insurance Journal INDUSTRY AWARDS 2005 We are delighted to present the finalists (in alphabetical order) for this years ITIJ Awards. The winner of each category will be announced at the awards ceremony at Hotel Alfonso X111, Seville on Friday 11th November 2005

Insurer/Underwriter of the year

AIG (Europe) UK Ltd

AIG is the largest travel insurer in the world, with a technology and operations structure. We see this as strong global infrastructure and a culture based on the route to fully optimize the travel insurance sales integrity and quality. AIG are uniquely positioned to potential of this opportunity on an international scale. service existing and intended operational areas. AIG has a history of product innovation, and unlike It is out intention to not only to provide superior other insurers, AIG now offers the removal of the products and servicing, but also to demonstrate terrorism exclusion, giving greater peace of mind to AIG’S unparalleled capability to integrate with your your passengers.

Churchill Insurance Unlike many competitors, we still aim playing golf or getting married abroad which to provide cover for people of all ages follows the popular holiday trends. who want to travel and have annual As travel insurance policy wordings in general get and single policies available for people more complicated, we’re working to ensure our over 65. As well as the usual option customers understand what they’re covered for, to add winter sports cover, customers so our policy wording has been awarded the can now buy tailored cover if they are Crystal Mark by the Plain English Campaign.

Fortis Insurance Ltd

Represented at the Travel Underwriting product development philosophy. Ultimately, Group and the ABI Travel committee, the retailer/partner is in the best position to FIL is committed to developing and identify what products their customers want. delivering products that meet both the FIL has established itself as the UK’s 4th needs of the customer (in terms of largest travel insurer (based on GWP), cover and end pricing) and the retailer providing cover for more than 50 million (in terms of competitiveness and retail travellers in its 35-year history of being a margins). Collaboration is at the heart of FIL’s leading travel insurer.

Medi Travelcover

Medi Travelcover is the UK’s only specialist cancer clinically stable and be travelling with the consent of insurer with over 90 per cent of our travel insurance their attending specialist consultant. policies being issued to Medi Travelcover is individuals who have regulated and had a diagnosis of Medi Travelcover Ltd. authorized by the cancer. With a special Financial Services focus on children, our policies are specially designed Authority. We work closely with UK charities, cancer for those living with cancer. networks, specialist medical centres and support Each case is individually underwritten and with groups and have a close working relationship with specialist knowledge of the treatment and the Christian Lewis Trust, which seeks to offer management of cancer, we are ready to consider support to families and individuals affected by a child individuals undergoing treatment such as with cancer. We actively support a number of chemotherapy. cancer charities and ask our customers to help them A key requirement is that holidaymakers should be by choosing to make a donation.

Mondial UK Mondial took the decision to provide a single point of meet the new Financial Services contact for customers’ Authority regulations with needs. This is made enthusiasm by giving customers possible as only the best possible level of Mondial manage all service and security when they aspects of the product purchased their insurance through the Internet, via a development, from risk assessment, underwriting, all broker or over the phone and by ensuring the documentation and fulfillment, policy sales (online regulations are rigorously maintained through and offline), 24 hour emergency assistance, claims comprehensive training and monitoring. handling and settlement. Our core strength is derived from our ability to Medical & Cost Containment Company of the year Assistance/Claims Handler of the year Global Medical Management Europ Assistance Our mission is to support Applying leading technologies and Europ Assistance was customers worldwide. the success of health taking a consultative view, we work founded in France in 1963, On call around the clock – 24 insurers, re-insurers and efficiently and effectively to deliver which means that last year hours a day, 365 days a year – assistance companies via high value and significantly reduced we celebrated our 40th we provide assistance in 208 complete cost containment administration that help enhance anniversary. As the original countries and territories services for medical management, cost savings and our clients’ reputation for service in the uniquely creator of the travel throughout the world. The 24 hour customer care in the US. challenging US healthcare environment. assistance concept, Europ Assistance has been at the ability to offer such a truly global service is achieved forefront of an ever-changing assistance world. We through our international network of agents and possess an established reputation for innovation, representatives, our 33 telephone customer Medical Claims International linked to a true worldwide ability to render multi- assistance centres and the support of over 400,000 facet assistance services to over 109 million service providers. Medical Claims International professionally processed and approved to delivers actual results and maximize savings and avoid any risk of performs the way you would overcharging. We simply believe that expect of a true cost containment medical costs need to be managed. company. Our methodology, with Hence, we employ insurance and Fortis Insurance Ltd respect to cost containment, in healthcare industry professionals to ensure Europe is very unique. Our claims that each and every one of your claims FIL is proud of its multi-lingual in-house AI is wholly owned by FIL, and has the handling department specializes in analysing the cost will be treated with the highest level of both medical assistance team, Assistance sole purpose of assisting travellers in of all medical treatment. We assess each claim and financial scrutiny. International (AI), who ensure that help need of medical help, specifically thoroughly, with predetermined authorization levels To this end we have established an extensive is on hand 24 hours a day, 365 days a providing a professional, caring and so as to ensure that no claim is considered too small network of medical facilities throughout the major year, to arrange medical and efficient service. In 2004 AI dealt with to review and apply a discount. All claims are tourist resorts in Europe. repatriation solutions for its customers. 12,255 travel cases from across the This level of commitment is vital in world and over 500 doctors and providing the high level of service that nurses were flown from the UK to Travel and Medical Insurance Services customers have come to expect from various destinations to bring travellers the UK’s 4th largest travel insurer. home following medical emergencies. Established in January 2002, developed underwriting Travel and Medical currently tool designed specifically handles over 25,000 calls per to evaluate the risks month, managing in excess of associated with insuring 250,000 cases per year for pre-existing health many high profile accounts including the Post Office, conditions under travel insurance policies. Mapfre Asistencia British Airways, Alliance and Leicester and Kwik-fit. Travel and Medical Insurance Services Limited is Our objective is over 2,500 Travel and Medical provides both telephone based authorized and regulated by the Financial Services to protect the professionals in risk assessment and policy fulfillment services, Authority (FSA), Firm reference Number 311274 insured 40 companies operating a state of the art call centre, using the UK’s and is a member of the Association of Travel whenever and accessing one leading risk management software; a highly Insurance Intermediaries wherever they single global need us. This is achieved by forming part one of the database able to take action in the minimum amount most important international insurance groups, of time in the face of any eventuality. Sistema Mapfre. Mapfre Asistencia has been providing assistance for Air Ambulance of the year A network offering over 150,000 service locations, over 15 years. During this time, we have grown on ensuring swift, effective operation worldwide. With every front in order to offer our customers the very 31 assistance centres and an international team of best service. Canadian Global Air Ambulance

Canadian Global Air Ambulance is attend to all patient and patient family an international air ambulance member needs, and who are highly trained organisation, providing a wide to co-ordinate all aspects of bedside-to- SOS International range of aeromedical solutions for bedside transfers. We own and operate We help people in service and lower private individuals, the insurance Learjet series aircraft specifically dedicated distress no matter prices for our industry and government to the air ambulance role, equipped with where they are in customers. organisations, across Canada and the latest aeronautical technology, providing the world – for SOS International has around the world. for unrestricted worldwide operations. their benefit and developed and Our approach is unique in that we Strategic base locations in Vancouver, for the benefit of implemented an offer a fully integrated, client-centered service. This Winnipeg and Toronto, Canada, maximize our the insurance companies that bear the financial electronic monitoring system to further improve means our medical, flight and customer relations geographic coverage and provide for rapid dispatch. responsibility. efficiency in the emergency centre. The new system departments operate under one roof. Extensive experience in long-range operations has We have developed a strategic partnership with two measures the employees’ performance linked to the Canadian Global’s 24-hour call centre is staffed by positioned us as a world leader in the provision of other major European Emergency Centres, namely ‘balanced scorecard model’, thus evaluating their on-site flight co-ordinators and nurse managers who international aeromedical transports. EuroCross in the Netherlands and Roland Assistance performance and contribution in terms of quality, in Germany, to achieve an even better worldwide efficiency, economy and social skills.

FAI FAI undertakes worldwide missions by medical staff under the supervision of leading Ambulance-Jet or airliner with attending physicians guarantee the most professional TRM Assist physician and medical stretchers. Airlift medical treatment for the patients. between hospitals by EMS-helicopter, FAI operates three Rescue Helicopters (2ea Recently we have Despite mainly dealing organ-transportation and transportation Eurocopter EC 135 one Backup Helicopter progressed by creating a in travel insurance of short-life radioactive medications. BO 105 CBS-5 +) from Leipzig Airport, since UK assistance company, claims handling, we also State-of-the-art medical equipment on 1990, on behalf of the Government of Saxonia which is tailored to the specialize in other board our Ambulance-Jets and EMS- and in co-operation with IFA Internationale coach tourism industry. services allied to the Helicopters and our highly experienced Flugambulanz e.V. We provide assistance industry. These include and assess the claim from passenger luggage the onset, minimizing costs for underwriters and claims for coach companies who self-insured the increasing client relationships. We have dedicated liability, tour operator failure claims, and consultancy Luxembourg Air Rescue staff to deal with these calls. for the CPT and risk management services. LAA is based in the heart of Europe, Luxembourg and around the world by which means that we are able to applying the highest safety and quality evacuate patients rapidly and safely from standards. countries in Europe, Africa, the Near East Highly qualified professionals servicing and Eastern Europe and repatriate them you 24 hours a day, state of the art to any location in Europe and worldwide. equipment to respond to all medical To book a place at this years dinner and awards Our mission is to save human lives by needs and two fully medical dedicated operating rescue helicopters and Learjet 35A aircraft and Four MD 900 ceremony please log-on to bookings at www.itic.org.uk ambulance aircraft 24 hours, 365 days in helicopters. 26 FEATURE

illness abroad or the consequences of it when Knowledge is power you return to your home However, there are two groups to consider and some country? solutions may be possible: those who travel without Some governments have insurance through lack of knowledge and the obstinate. thought about this and Much has been done in the last few years to try and within the European deal with this. In 2001, the UK’s Foreign and Economic Area (EEA) a Commonwealth Office (FCO) launched its ‘Know degree of reciprocity Before you go Campaign’ with the Association of exists. The principle is British Travel Agents. A key component of this was to that we will either not raise awareness about travel health insurance. In the charge your citizens at all, last three to four years, the World Health or charge them only a Organisation booklet on international travel health has percentage for acute also emphasised insurance. And now, most UK travel problems if you do the health professionals ensure that insurance is a key part same for ours. This is the of their advice. However, many people travel without principle behind the seeing a travel health professional, an agent or visiting E111, which now comes the FCO website. in the form of a card. More could possibly be done at the airports, by However, having an working with the airport authorities to raise awareness E111 does not cover all of the need for insurance. In fact, just a few weeks costs in all countries. For ago I noticed on Eurostar from London to Paris a last example, in Belgium you minute text insurance service advertisement – a piece are expected to of clever marketing by the travel insurers and a step in contribute at least 30 per the right direction to increase awareness of travel ills. cent of the costs as the In the law, lack of knowledge is not regarded as Belgian citizen does. This sufficient defence for doing the wrong thing and it can means that a heart attack be argued that those who do not take insurance can be quite expensive. should not be let of the hook and should pay their Outside of the EEA, the associated health costs. The advantage of this is that traveller really is on his or with just a few ‘I lost my house’ stories, the message her own, and in many would be very clearly received. And it may well be countries a guarantee of time to shock people in to a greater awareness of the payment will be required need for travel insurance. before medical staff will People still drive without insurance and fail to insure even touch you. their homes, despite one being illegal and the other Travellers without being shortsighted. To make travel insurance insurance may assume compulsory for this group would be met by a great that no one could be so deal of resistance and would need very robust and heartless, or that their possibly costly systems to ensure compliance. Who embassy is ready and would have the authority to check? It is unlikely that UK willing to write a cheque. or overseas customs would see it as their duty, and the We all know that this is airport authorities would be unlikely to resource such a not the case. move. Certainly, the airlines and the agents would resist Insurance ensures that anything that adds to the cost of a ticket. everyone who needs to Education, information and communication may all get paid gets paid and help the stubborn to purchase travel insurance, rather reduces a lot of stress for than relying on the country they are visiting to pick up all involved. Insurance the bill, but the message needs to be got across in a requires forward thought way that successfully communicates costs versus and the ability to realise benefits. This is not easy to do and it is my view that that a smaller cost now the insurance industry itself could help here by Should travel insurance can protect against greater collating its vast resources of data on those who do cost later, but some get ill abroad. Surprisingly, none of this data is ever people see it is a cost published and some years ago when I attempted to without a clear benefit. talk to insurers about pooling and analysing such data Richer countries, it can be there was a distinct lack of interest. I also believe that be compulsory? Part 2 argued, can cope with the we should be looking at insurance that extends costs of ill tourists, beyond the holiday period, since diseases may take People get ill abroad – it’s an undisputable fact. But Illness is not limited by time or place; indeed, some although even here, it can cause tensions to run high, several weeks to reveal themselves. what is the cost of the sick traveller to national health aspects of travel actually make you ill. Far from home but can we expect the increasingly popular travel Despite the UK efforts through the Foreign and services? Dr Charlie Easmon, medical director, The and unwell is not necessarily a good combination – destinations of poorer countries to subsidise the Commonwealth Office and the International efforts Number One Health Group, offers a personal view of away from loved ones and in a foreign country. health needs of tourists – opportunist or accidental? through the World Health Organization there are still the situation, after many years as a doctor conducting However, being ill abroad can be a blessing because Most of us agree that they should not, but in a culture many millions who travel without insurance. medical evacuations from around the world you may get better care than you would get at home. of cheap holidays it would probably not be found Unfortunately, there is no collection of data that could The key question, though, is who should pay for your acceptable to make travel insurance compulsory. compare tourist income to unremunerated tourist TMCA ‘Celebrating 20 years of Travel Assistance and Cost Control and over 50 years of Marine and Cargo insurance’

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International Travel Insurance Journal www.itij.co.uk FEATURE 27

medical costs to the local health services. Countries surrounding foreigners away from home is still road It would be interesting to assess willingness to pay holiday insurance, at the moment, stops when you get with mainly private health services, such as the US, accidents. This requires more than just insurance, it amongst tourists if you phrased it this way – would you back from holiday. have the least problem since there is no question of requires international action for safer roads, improved be prepared to contribute £2 to a campaign to reduce Medical tourism is also an increasing phenomenon, the health care facilities not being paid. The problem driving skills, use of helmets and seat belts and some your chances of getting diarrhoea, which by the way whereby people go abroad because they know they lies with the inefficiency and sometimes lack of sense on the part of the traveller. However attractive are very high and could ruin several days of you and will get treated quicker and cheaper by hospitals motivation or organisational capacity to collect money the Muttutu crammed to the gunnels in Malindi, Kenya, your family’s holiday? abroad. It is especially increasing amongst the elderly owed by public sector health services. However, as may be, how smart a move is it to sling your bag on One study amongst general travellers showed that: population, who often face long waiting lists in their national healthcare costs rise, it is likely that more and the roof and stand there at forty miles an hour with half 30-50 per cent get ill, five per cent visit a doctor and own countries. Therefore, slipping abroad on a so- more public sectors will at least start to analyse how the village? one per cent need hospitalisation. called holiday has become a very effective way to take much ‘visitors’ cost the health service. However, many Every year, several UK tourists paralyse themselves A problematic sub-group is those from overseas who advantage of a foreign country’s healthcare system. public sectors, unlike the private sector, do not know from diving into too shallow waters. You can only try visit friends and relatives (VFRS). This group often In conclusion, I do not think it’s practical to make travel the costs of care provided. to educate. Perhaps, we do not need insurance, just assumes it does not need any travel advice and health insurance compulsory, but I do think we should ‘Darwin awards’. although there is no data, I doubt they actively seek constantly push to raise awareness of the benefits to the What can go wrong and who should pay? Infection is the next big problem. None of us can travel insurance. However, they do get ill and In individual and to the host country of insurance. I also The biggest and probably most expensive problem quantify the cost to individuals or the Egyptian health London alone they contribute more than 60 per cent think we should encourage the insurance industry to service of the ongoing high incidence of diarrhoea of imported malaria cases. Sex abroad and sexual promote a combined holiday and private medical amongst tourist to that country. Insurance is not the tourism are another predictable cost to host and home insurance scheme for travellers that would cover at least solution here. Investment in public health may be, but health services but this would be difficult to cover by some of the cost of their return to their home country. CASE STUDY: SPAIN who would pay – the local government or the tourists? insurance because of the incubation period. After all,

One country to highlight the burden that its national health service has to bear is Spain and its surrounding islands. As well as being a popular holiday destinations, it also has liberal views on immigration, thus has had the biggest influx in the whole of Europe in recent years: Indeed, the Spanish healthcare system is now in need of a dose of tender loving care. The Spanish open door policy to immigrants and its leniency towards unhealthy, badly behaved British tourists has become a thorn in its own side. With more than four million immigrants entering the country in the last five years, increasing the population by 10 per cent to 44 million, José Luis Rodríguez Zapatero faces his first big political crisis. As leader of Spain’s Socialist government he has to discern how to provide free healthcare and education to an entire population full of new arrivals. Tourists prove only to compound the situation as with free medical care to those that fall ill, the some 55 million that visit Spain each year often take advantage of this. In a new wave of what is known as ‘medical tourism’, it is surprising how many tourists, particularly elderly ones will make their way to Spain only to slip off the gangway as soon as they get to Bilbao, just to get hip replacement surgery. Many of the Islands off Spain are demanding extra funds to cover the cost of treating non-residents, as they receive the majority of tourists. Although the central government funds the Spanish healthcare service with €45 billion ($55 billion), tensions are rising with the regional administrations as they are responsible for the provision of services. As a result of the devolution of the healthcare services, regions took their share of the money but no common strategy or no common guidelines were followed on how the money was to be spent. Thus despite the big rise in healthcare spending there has been very little internal co-ordination. It has also opened up regional rifts between rich regions with little immigration and tourism and poorer regions with high numbers of immigration and tourists draining its healthcare funds. In Madrid alone, one million new arrivals in recent years have stretched the healthcare service to breaking point. The emergency services have to deal with a 30 per cent increase in casualties and a 40 per cent increase in medical consultations. Emergency rooms are overflowing and medical equipment availability is at an all time low. Madrid’s government have announced a need for more that €1.7 billion to cut waiting lists and attend to its immigrant community. Mr Zapatero has offered regional leaders €1.7 billion (this will cover one third of the €5 billion shortfall) but in exchange expects the regions to curb costs and raise local taxes to fund extra spending - something that they are not willing to do.

www.itij.co.uk International Travel Insurance Journal 28 WORLDMARKETS Vive la France!

They live in the capital of world tourism, but the French are not great travellers. That’s changing though, as Roger St Pierre reveals

According to the latest World Travel been fuelled by the long-standing strong relationship Organisation statistics, la belle France they enjoy. Today Ireland welcomes around 330,000 remains the most popular travel French visitors a year. destination of them all, with a staggering Overall, neighbouring Spain, just across the 71.6 million visitors last year. But the gap Pyrénées, enjoys the largest share – some 21 per is narrowing. In quite recent times cent – of the French outbound holiday market of Europe’s top holiday playground had 16.9 million trips and 148.5 million bed nights. This more than twice the combined annual is followed by the two popular North African number of visitors of its two major rivals, destinations of Tunisia and Morocco, which not only Spain and the US. But the 2004 figures have the requisite sunshine in abundance but also showed Spain on 53.4 million and the have strong historical links with France. These two US on 43.2 million, while Europe’s countries have a 10 per cent share of the French number three, Italy, had 33.4 million, outbound market each, followed by Italy on eight well ahead of the UK on 25.8 million. per cent. Just one in five French outbound holiday France’s total of travellers attracted into trips is to a destination outside Europe, with the US, the country each year is equivalent to South Americas and the West Indies – especially the more than one visitor per head of French islands of Guadeloupe, Martinique, St Martin population, which at the last census and St Barts (politically not colonies but fully stood at 60,180,529. All that business integrated constituents of the French Republic) – as adds up to a lucrative 148.5 million the most popular options. overnight stays and a massive Total spend by the French on private travel abroad contribution to the national GDP of now exceeds €20 billion annually, which is just €1.5 trillion, which gives France the fifth under a quarter of the total French private travel largest economy in the world and the expenditure of €75 billion. third largest in Europe, after Germany City and short breaks are becoming popular, but and the UK. unlike the growing pattern among German and British overseas travellers who often seek culture, Sun seeking history, countryside and other distractions, the However, while they are consummate French motivation is predominantly sun-seeking and hosts, the French don’t match the therefore travel time is not generally spread through globetrotting tendencies of either the the year but is concentrated in the summer months Germans or the British, who spend a total of US$64.7 of July and August, when many French businesses billion and US$48.5 respectively on travel abroad and towns virtually close down as everyone flocks to annually. The figure for France is a far lower US$23.6 the beaches. Since they have so many good sands of billion, also putting it below the US and Japan. The their own, as well as verdant countryside and all that cheap packages holiday abroad simply has not history, it is no surprise to find that only 10 per cent impacted the market to the same degree as elsewhere of travel as a whole – business and leisure – takes and less than a quarter of all French people venture the French beyond their national borders and 33 per abroad in any given year. Indeed, their outbound travel cent of holidays are taken abroad, with nearly half figures for the period from January to May this year pre-booked more than a month in advance of showed a worrying 12.1 per cent decline though, departure date. Nearly half of all French travellers interestingly, that trend was bucked by a whopping abroad opt for hotel accommodation. great 109.6 per cent increase in French visitors to the Interestingly, both ferry crossings to the UK and Irish Republic in March, and an overall increase of 27.7 cheap flights between French and UK airports are per cent over the whole of the period concerned. The patronised overwhelmingly by British rather than March phenomenon was in part explained by the French passengers, despite massive promotional mighty rugby football international clash between the efforts by the companies concerned. Those French two nations, while the general growth has no doubt people who do travel abroad tend to be students,

International Travel Insurance Journal www.itij.co.uk WORLDMARKETS 29

book assets. substituted the ‘act committed’ as a trigger, with Encouraged by recent almost unlimited run-off coverage to all liability harmonisation with insurances. standard European However, as reported by Cohen, the insurance practices, other industry eventually succeeded in overcoming the insurance companies judiciary’s opposition by lobbying the legislature for a from the EU and change in the law. “Described as one of the most beyond have been dramatic over-ruling of case-law in French history, testing the French the measure was passed as an amendment to some waters, causing home- apparently innocuous legislation about grown outfits like AVI competitiveness in the French financial sector while to sharpen their act. A most of France was on holiday. The new law means heartening that the detrimental act must have been committed development has prior to the contract’s expiry or termination and that been last year’s end of the claim must be made no later than five years after the 13-year war such time.” between the industry As applied to travel insurance claims, the new act will and the courts over close a potentially expensive loophole and makes the status of ‘claims ‘claims made’ clauses legal. Hopefully, business in the made’ clauses in sector will also see a bright horizon once the French insurance contracts. economy regains the buoyancy of earlier times. Ever highly protective What could help this is a growing penchant for travel of consumers and among the young many of whom now see travel their rights, the French and the opportunity to work in other EU countries Supreme Court took as part of the growing-up process. an ever stronger stand In Budapest recently, I sat next to a table of 10 against ‘claims made’ youngsters, all were speaking in perfect English yet clauses and on 19 not one of them from UK (or, for that matter, from December 1990 Hungary). Homing in on his French accent, I started a handed down seven conversation with Jean-Paul, a 24 year old from ABC1s or those visiting family or friends abroad. locomotives, turbines, nuclear power technology, decisions whereby ‘claims made’ clauses were Nimes: “I’ve been spending the past year travelling Along with 10 other nations, France enthusiastically pharmaceuticals, cosmetics, fashion garments and deemed nul and void. According to expert round Europe, doing a few weeks work at a time adopted the euro back in January 1999, and the at much more. The nation’s foreign trade balance for commentator Helene Cohen, of Elborne Mitchell, then moving on.” He almost informed me that as the time rather stagnant economy showed promising goods was in surplus between 1992 and 2001, reporting on the subject: “The Supreme Court’s important as his shaving kit and comb were his travel signs of revival, but since then unemployment has reaching US$25.4 billion but, hit by economic rationale was that the payment of premiums for a insurance documents: “I have friends who don’t crept back above double digits. The country has downturn, had become a US$15 billion deficit by given period is meant to indemnify the insured bother, because they are used to the state health considerable agricultural resources, a still substantial 2003. against losses incurred as a result of detrimental acts coverage we enjoy in France. But then they get their industrial base and a skilled workforce. It is also a committed during that period. Any provision, wallet stolen or have a flight cancelled and realise that leader in high technology and a strong services A country of contradictions whereby a loss is compensated only if the claim is they should have put a little of their budget into sector now accounts for around 72 per cent of all It’s a nation of enigmas. The French spend more on made during the policy period, may deprive the adequate insurance.” Most French people don’t business but GDP seems to have reached a plateau, beauty products than any other nation on earth yet insured of the benefits of cover. In these travel much, but as it becomes more and more at least for the short-term. only 47 per cent of them take showers on a daily circumstances, the insurer would potentially receive popular to see something of the world they are basis – a piece of trivia that drew the headline ‘Pretty the premiums yet fail to give adequate becoming increasingly aware of the risks travel entails. International powerhouse Dirty’ in one newspaper report. They are a compensation, which is illegal.” The Supreme Court In the 18th Century, France stood as one of the notoriously conservative nation in the small ‘c’ sense richest and most powerful nations in the world, in yet, emboldened by what is arguably the finest trade as well as military terms. Industrialisation kicked socialised medical service on earth, they are off early but lost much of its momentum so that notoriously sales resistant when it comes to buying agriculture still dominated the economy until after health associated insurance products, including travel World War Two, when manufacturing flowered and cover. Yet insurance companies, like the banks, have companies like Citroen, Thomson and Alcatel a high profile and do big business nationally. became international powerhouses. Interestingly, the core of much such activity is not to The railways were be found in the bustling nationalised in 1937, and big city of Paris but in a during the era of the rather small and sleepy daring Monet Plan just regional town called after the war, such key Niort. Here, more than sectors as coal mining, half the working electricity production, population finds banking, natural gas and oil employment in the came under state control, insurance sector, earning as did Air France, Renault this otherwise and a number of other unpretentious capital of major businesses. At the the Deux-Sevres region tail-end of the 1990s, the epithet: ‘The Most things see-sawed as Bourgeois Town In Socialist governments France’. nationalised and Local farmers banded Conservative ones together at the beginning privatised. Economic of the century to form the recovery was doing little first mutual insurance to lower the company in France, unemployment rate, then providing the agricultural hovering around 12 per community with cover cent. So, on arrival in against fire, hail damage office in 1998 the and mortality to livestock. government, headed by Then Edmond Proust, a Lionel Jospin, introduced country schoolteacher, the controversial 35-hour and a group of his friends working week. For a while banded together in 1934 the unemployment rate dropped to 9.4 per cent, its to create a company that would provide motor lowest level since 1991, but in the years since it has insurance cover for teachers – a business that grew crept up again. into the massive MAIF organisation with its wide In the manufacturing sector, France was in the 1990s portfolio of products. These pioneers were joined in the world’s fourth largest manufacturer of cars, after the 1950s by mutual insurers serving the self- Japan, the US and Germany, and third, after Japan employed (MAAF), the public services (SMACL) and and the US, in commercial vehicle production. The shopkeepers and manufacturers (MACIF). In 1991, multi-nation Airbus consortium plus military aircraft MAAF caused a global insurance industry sensation manufacture made France an aviation powerhouse, with its audacious bid to take over America’s at the while it was also a major player on the world stage time highly troubled Executive Life, a company with for steel and aluminium production, electronics, more than three times its own US$3.5 billion in

www.itij.co.uk International Travel Insurance Journal 30 FEATURE

In many countries throughout the world, the regulation of travel insurance ranges from uneven to barely noticeable. In a bid to find a model guideline, Milan Korcok scrutinises insurance regulation around the world

Though it accounts for growing billions of dollars worth of coverage, travel insurance remains largely a lonely stepchild within the family of insurance producers, tagging along as an adjunct to accident and sickness, or property and casualty lines of business. But with international travellers increasingly aware that ‘going bare’ can be fiscally suicidal, travel insurers have the opportunity to carve out a distinct identity for themselves, so long as they can deal with growing legions of regulators and their sometimes vaporous and conflicting rules. In the wake of global financial industry failures, growing reliance on cross-border purchases (by the Internet or otherwise), international consolidation of companies and marketing efforts, and a growing consumerism that demands accountability of vendors, the responsibility for tighter regulation of financial services such as banks and insurers has become a top priority of governments worldwide. Allesandro Iuppa, chairman of the International Fair regulation Association of Insurance Supervisors, which represents more than 180 jurisdictions in 120 countries, earlier this year told a World Bank, Board seminar: “Banking, insurance and securities eliminate cross-border inconsistencies that impede According to the Consumers’ Association (CA), International Monetary Fund and Federal Reserve sectors [must] co-ordinate on regulatory issues and efficiency of the global financial system, while at the such exemption is bad news for consumers and the same time [improve] insurance supervision through industry alike, as consumers will be denied the the setting of global supervisory standards.” The protection they deserve, and the reputation of message is gaining currency. travel insurance, whether sold by a travel agent or direct seller, will suffer as a result. Travel insurance is a complex, financial service, said the CA, not a FSA-fit to sell in UK holiday add-on. “We advise consumers to buy their When the UK’s biggest travel broker, Whiteley travel insurance as a stand-alone product from Insurance Consultants, was forced into liquidation in specialised insurance providers,” said a CA April for selling policies not underwritten by an spokesperson. “Do not buy from travel agents, tour authorised insurer, the Financial Services Authority operators, or as part of a package. These products (FSA) stepped in and used its public interest powers are likely to be poor value, and are not subject to to liquidate the company and bail out thousands of FSA regulation.” clients who otherwise would have been left holding The Association of British Insurers of the exemption worthless travel insurance policies. said: “We are disappointed with this decision. More Ironically, it was only in January of this year that than 12 million people a year buy travel insurance travel insurance was shifted to the regulatory through travel agents and tour operators. Excluding jurisdiction of the FSA whose rules require sellers of these sales from regulation will lead to confusion for insurance to be licensed or authorised by it. customers and a two-tier system of regulation.” According to the rules, anyone who is paid to help The underlying justification for channelling buyers to people buy insurance (which includes introducing insurance specialists, as opposed to travel agents, is people to an insurance broker or insurer), to that those who sell only insurance will know their recommend specific products, or to help people product more intimately than will travel apply for policies or prepare claims, needs to ask professionals whose expertise is the selling of travel the FSA if they require authorisation to carry on and whose interest in insurance may be only their activities. But more than that, the FSA also peripheral. It’s like consigning one’s heart artery requires insurance producers and sellers to meet certain fitness and competency standards, to provide clear, comprehensible information about the products being sold as well as plain-language policy summaries, explanations about exclusions and pre- existing conditions, and any potentially troublesome fine print. They must also allow aggrieved clients access to the Financial Ombudsman Service, and disclose means of redress should the seller fail. Good things for the consumer. But at the same time, the FSA exempted travel agents who are selling insurance as part of holiday packages from its rules – for now, anyway. The failure to encompass travel agents within FSA’s rules angered the UK’s consumer groups and many insurers as well. A review of that issue will come up in 2007.

International Travel Insurance Journal www.itij.co.uk FEATURE 31

bypass to a cardiac team as – a consortium of provincial agencies – advocating APRA united opposed to a general greater uniformity of licensing, education and With the increasing globalisation of financial services, practitioner. But so simple a certification standards between the provinces, and the pursuit of some degree of uniformity or concept often gets muddied seeking uniform standards for consistent rules that consistency is being pursued by individual nations when thrown to third party require all vendors to meet the same qualifications, within their own borders, as well as international or regulators. nationwide. supranational groups representing entire industries. This is particularly important, says THIA past In Australia, still sensitive about the HIH, the US regulation by president Kieran Bridge, as travel insurance is “a country’s second largest insurer, collapse in 2002, application only national business that is caught up in the the regulation of Direct Offshore Foreign Insurers In the US, roughly 40 per cent telecommunications industry, as is the entire travel (DOFIs) (e.g. Bosnia, the Solomon Islands, The of all travel insurance is sold business. Travel Cayman Islands) in certain through travel agents, according insurance is increasingly lines, illustrates the to the US Travel Insurance sold across provincial With the increasing difficulty of trying to create Association, and in close to 45 boundaries.” THIA’s a level playing field. states, travel agents are required policy states that globalization of financial DOFIs are not authorised to be licensed according to regulators in one by the Australian limited license lines. In such province should be able services, the pursuit of Prudential Regulation cases, a travel agent has only to to rely on the qualification some degree of uniformity Authority (APRA), since apply for a license, but does not of a travel insurance they are not physically have to complete an vendor in another or consistency is being present in the country but examination. The most the province. they have been applicant needs to do is fill out a In Canada, for example, it pursued by individual recognised by some form, perhaps get fingerprinted, is quite normal for a nations within their own authorities as ‘critical to and pay a fee. Although in some resident of British maintaining viable jurisdictions, he may need to get Columbia to call a toll borders … insurance arrangements in a full property and casualty free number and speak Australia’. DOFIs sell into license. directly to an agent in the Australian market “The truth is, says Jon Ansell, Ontario or Quebec to purchase 180 days of travel through intermediaries (brokers and agents). Should president of the US Travel insurance for a winter vacation in Arizona. Wherein they be exempted and held to the standard of Insurance Association (UStiA), lies the jurisdiction if that selling agency, or insurer, comparable prudential regulation? “travel agents don’t want to sit should fail? And if so, how, asks the Insurance Council of another exam. And travel One of THIA’s initiatives has been to try to get Australia – which believes they should be fully insurance suppliers don’t want to regulators from each province to agree on uniform regulated by APRA – can one determine make it any more difficult for licensing or other regulatory requirements so that comparability in those countries? their distributors to sell their qualification in one province can be treated as a products. Though UStiA’s position in this respect is many it appears inevitable. passport for registration or permission to sell in Meditating the way forward that ‘we follow the law.”Ansell added: “We are not in But how, while regulations and rules remain so that other province. “It is slow going, however,” Before the FSA assumed jurisdiction for regulation of favor of states looking to make licensing more difficult uneven, can a supplier of travel or expatriate says Bridge. general insurance in the UK earlier this year, the … because in the end we don’t think travel agents insurance licensed in one state or country, be General Insurance Standards Council (GISC) had the will do this (sit an exam). And because about 40 per confident that it can sell its products in another – cent of Americans get their travel protection through quite a critical dynamic for a product that breathes travel agents, if consumers don’t have an easy way to across borders. get this coverage we think the public will not be able to benefit from the protection travel insurance Canada’s fluctuating licensing provides.” In Canada, where more than 80 per cent of out-of- In the State of New York, for example, the General country travellers purchase travel insurance (primarily Counsel of the state insurance department, in for the medical benefits), plan comparisons and August, issued a legal opinion to Governor George discussions about content, pre-existing conditions, Pataki that a travel agent wishing to sell only baggage and other exclusions are given a high priority. The and accident insurance must be licensed by the state media has been quick and merciless in jumping on to sell such insurance, but the law did not require insurers hiding behind small print to deny client him to pass any examination or have any particular claims. Consumers are highly aware that lapses in training or education that is generally required as a coverage, due to slip-shod wording, can cost them prerequisite for the issuance of other insurance agent dearly, since provincial health insurance plans cover licenses. very few out-of-country medical costs. To Canadian In the US, as in many other countries, jurisdictional travellers, this is a fundamental pocket book issue. disputes mar the way to clean, distinct, Despite this high visibility, the training, licensing and comprehensible regulatory authority over financial overall regulation of travel insurance has been a hit services. For years, the National Association of and miss affair, fluctuating among the 10 provinces. Insurance Commissioners, representing state level Here too, any attempts to consolidate or even out regulatory agencies in all states and territories, has such regulatory issues as agent licensing, continuing been fighting off efforts, primarily by legislators, to education requirements, product validation and have insurance regulation moved to the federal level disclosure, or client redress are obscured by a fog of where more measured oversight might eliminate the conflicting rules and provincial jurisdictions. inconsistencies that are inevitable when 51 different As a result, the Travel Health Insurance Association regulators set the rules for an industry. But of Canada (THIA) has made several submissions to momentum for federal oversight continues, and to the Canadian Council of Insurance Regulators (CCIR)

www.itij.co.uk International Travel Insurance Journal 32 FEATURE

job of overseeing, or trying to, the self-regulatory states were given until 14 January 2005 to integrate market. efforts of various insurance groups. In the publication the Directive rules into their domestic laws, but only “The Directive also Financial Services Review, published in February 2005, seven states met the deadline: Austria, the Czech guarantees customers a Chris Woodburn, chief executive of the GISC, noted Republic, Denmark, Hungary, Ireland, Lithuania and high level of protection … that the goal of the council was to unify the the UK. More recent surveys indicate that France, [and] lays down precise regulatory efforts as they already were, and then Germany, Italy, Luxembourg, the Netherlands, rules on disclosure and the draw unregulated areas of the insurance industry in. Poland, Slovakia, Spain and Sweden are on track to advice to be given by “It was a bit of a mish-mash,” he admitted. “Lloyd’s implement the Directive during 2005. insurance intermediaries, did some regulation, there was the Insurance Essentially, what the Directive aims at is a single who will provide Brokers Registration Council (IBRC), but that only European ‘passport’ that enables insurance customers with the covered people who intermediaries to conduct appropriate information wanted to call themselves their activities anywhere and advice enabling them insurance brokers, and Essentially, what the throughout the European to make the right choice,” the Association of British Union (EU), but still be he concluded. Insurers (ABI) employed Directive aims at is a under the regulatory Actually, the UK did not Price Waterhouse control of their home state have a lot of choice about Coopers to monitor single European – so long as that state is on going along with the EU these intermediaries ‘passport’ that enables a level and even playing directives. Were they to do (brokers and agents) that field with all others. In nothing, they would have didn’t come under the insurance intermediaries effect, any firm or individual been liable to infraction IBRC scheme. None of authorised by its own proceedings and could these things worked as to conduct their activities country according to the have been fined by the well as they might have anywhere throughout the EU’s Directive rules, is also European Commission. done.” Up until that point, authorised to do business But more important, is that said Woodburn, European Union, but still in any other complying EU they might have been shut government was totally country. That home out from a very large part supportive of the concept be under the regulatory country is also free to of a burgeoning insurance market. The UK has the University of North Carolina at Charlotte, outlined a of self-regulation. strengthen the rules, or largest insurance industry in Europe at well over complete overhaul of the US insurance regulatory But then came control of their home ‘gold plate’ them, but the £150 billion. system, modelled on the EU paradigm, blending the government’s “sea state … gold plate applies only to Now, those authorised in the UK automatically have right of states to set the complementary rules for change,” said Woodburn, intermediaries domiciled or the right to carry on insurance intermediary activity in licensure, etc., with the responsibility for oversight and “what was fatal to our headquartered within. It any other EU country. Similarly, registered insurance resting with a Federal Insurance Office. cause was the government changing its mind and cannot impose those additional requirements on intermediaries of other EU states automatically have If, despite rejection of its constitution and the failure deciding regulation of the industry should pass to the intermediaries from other countries doing business in the right to operate in the UK. In effect, once of its budgetary plans Europe can still move ahead FSA.” That it did early in 2005. But in passing to the that country. granted by the insurer’s home country, authorisation with the 42 Directives that comprise its Financial FSA, insurance regulation was also channelled into Charlie McCreevy, European commissioner for to carry on a particular line of business is valid for the Services Action Plan (of which the Insurance the runway that would bring it in line with the internal market and services, told a Brussels meeting entire European Community. Mediation Directive is but one), it would achieve a European Union Insurance Mediation Directive, of European insurance intermediaries this summer: In the way it integrates distinct jurisdictions, while new way of doing business for countries and which stated that the insurance industry in member “By providing a regulatory system … in their home leaving their powers intact, the EU paradigm has companies working in a truly integrated marketplace. states should be regulated by a competent authority. member state, subject to the fulfillment of attracted the attention of some American regulators And that would be a practical template for insurers The Insurance Mediation Directive is a European professional requirements, the Directive ensures that and insurance academics. In a paper prepared for the and other financial service providers looking to do initiative, designed to create a single market for insurance intermediaries possess a high level of International Insurance Society annual meeting in business across borders without losing their own European insurance intermediaries and a Europe- professionalism and competence, which is an 2004, professors of insurance Robert Cooper of leverage to evenly and consistently regulate it, wide regulatory regime for reinsurers. Member essential requirement for working in an integrated Drake University and Mark Dorfman of the something that escapes them today.

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International Travel Insurance Journal www.itij.co.uk DICK’SHOTLINE / HOTSPOTS 33

From Cancun to Timbuktu

Incidents in Mexico, at hotels that are not up to standard, are on the up. Meanwhile, letters from Africa pertaining to be get-rich-quick schemes are Bangladesh: The landing people in a legal quagmire. Dick Atkins emerging terrorist threat brings the situation to our attention Calls come to our legal hotline from a wide variety The consequences for these young women vary of travel destinations, but in the past several widely depending on the location of the offense. Over the past few years, the international overthrow the government of Bangladesh is an months, calls from the Yucatan Peninsula (Cancun) Results range from conditional discharge with no community has been warning Bangladesh that increasingly valid question. to our legal hotline have substantially increased. record, to a guilty verdict with a permanent record. Islamic extremist groups were using its territory as a Recently, I described in this column, a frightening In addition, there is the possible collateral safe haven. Until recently, Bangladeshi officials A symbolic show of strength incident that took place in Riviera Maya, south of consequence of denial of future US visas. denied this and the opposition Awami League It appears the August operation was meant as a show Cancun, where an eight-year-old American boy, Incarceration is rare, but substantial fines are often accused the ruling coalition government of ignoring of strength rather than an attempt to kill. The bombers visiting a resort with his mother and sister, imposed. the more-extreme Islamic organisations, including targeted a wide range of facilities, focusing on local disappeared while swimming in the resort’s pool. My favorite cases typically involve distant, more Jamayet-ul-Mujahideen Bangladesh (JMB) and government and judicial buildings. By targeting these The boy’s lifeless body was discovered 20 hours exotic locations. One such call came from Mali Harkat-ul-Jihad Islami Bangladesh. iJet Risk symbolic sites, the militants appear to have been later in an open, unprotected drainage pipe, which where a married French couple was held hostage Management examines the situation sending a message that a crackdown on extremist sucked him in with enough force to fold him in half. by Timbuktu Tours, their Malian land tour arranger. activities could be costly. The attacks were almost At the family’s request, our Cancun lawyer sought The tour company had not been paid by the Following the surprisingly sophisticated string of certainly in response to February’s government-issued criminal prosecution of the responsible hotel couple’s travel agency and knew that payment bombings throughout the country on 17 August – ban of several Islamic extremist outfits, including the employees as an adjunct to the civil lawsuit brought would not occur once the couple departed. With approximately 450 homemade bombs detonated in JMB, which is now suspected of spearheading the plot. against the hotel chain in the US. just a few telephone conference calls, we were able one hour in 63 out of the country’s 64 districts – the The ban came after the European Union, a major I had hoped that publicising this tragedy would alert to solve the missing funds issue and the couple was government arrested hundreds of suspects and vowed economic partner for Bangladesh, increased the other Mexican hotels and resorts to the need for permitted to board an Air France flight from to crack down on extremist groups. But the incidents pressure on the Bangladeshi government to crack safety precautions to eliminate dangerous conditions Bamako to Paris. of 17 August may portend more violence to come, down on extremists. The bombing operation in their swimming pools, and thereby prevent more Another African country, Nigeria, remains the and it is far from clear that the government has the undoubtedly involved the co-ordination of perhaps deaths, but I was wrong. Unfortunately, on 27 source of frustrating legal problems. We have capacity, or willingness, to eradicate the growing hundreds of different cells – likely operating in discrete August 2005, a 13-year-old boy, visiting a popular previously described the horrors encountered by Islamic extremism in Bangladesh. networks across the country – and was surely meant Cancun resort with his family, died as a result of the victims who respond to Nigerian advance fee Political support for Islamic extremist organisations is to demonstrate the capability of the extremists to another faulty swimming pool drainage pipe. The fraud letters. Now we feel compelled to describe nothing new in Bangladesh: Over the past three conduct operations anywhere in the country. boy’s bathing suit was sucked into the drainpipe, the next generation of scams, which now arrive by decades, a succession of governments – both civilian According to a French diplomat in Dhaka: “The well- trapping him at the bottom of the pool. The boy’s email. With Nigeria’s bad reputation as the source and military – have supported fundamentalist groups as planned, well executed attack [of 17 August] proved father, along with several other people, attempted of fraudulent solicitations, the emails now originate a tool to repress their political opponents. Following a the existence of a strong terrorist network that is to rescue him but by the time they were able to from other African countries, including otherwise September 2002 bombing in the southwestern capable of doing anything they want.” Indeed, the fact cut off the bathing suit and free the boy from the lawful South Africa and Ghana. It is our Bangladesh town of Satkhira, a spokesperson for the that the authorities were oblivious indicates that the pipe’s strong suction, he could not be revived. understanding that the sources of these emails are Awami League said that certain people in Bangladesh, terrorists were either disciplined enough to avoid These incidents were met with relative indifference transplanted Nigerians. including some government ministers, were detection, or enjoyed some degree of protection from by the resorts, both of which are popular Despite increasingly sophisticated scenarios, the ‘unquestionably sympathetic to the Taliban’. the security forces. While an inquiry by Bangladeshi internationally known destinations. Reports of emails are still requests for assistance in exporting The comment likely referred to certain political leaders military intelligence has drawn no apparent links serious but easily preventable incidents in this huge sums of money. A recent story is of a dying of Jamaat-e-Isami and Islamic Oika Jote (IOJ), the between Army personnel and JMB, accusations to the Mexican state, Quintana Roo, continue to come to father who informed his eldest son that the Islamic parties that share power with the ruling contrary continue to circulate. A member of JMB our attention. Lawsuits against the offending hotel proceeds from the sale of the family’s Zimbabwean Bangladesh National Party (BNP). Awami members arrested soon after the 17 August operation and resort corporations are difficult, expensive and farm (alleged to be at least $15 million) had been allege that elements of these Islamist parties have links reportedly identified eight officers in the Army that had frustrating. Inconsolable parents and other grieving secreted in a safe box in South Africa. The email to the Taliban and Al-Qaeda, and provide material trained JMB operatives in the fabrication of explosives. family members are further upset by roadblocks to requests a bank account and personal banking support and protection for Islamic extremist groups. justice built into the Mexican legal system. information, allegedly needed to deposit the Following the 17 August attacks, which left two dead Security outlook It is a relief to deal with callers with routine contents of the box. and 140 injured, Awami League leader Sheikh Hasina The security outlook in Bangladesh is not good. While problems. Recently, there has been an increase in We continue to receive calls from recipients of such alleged that ‘Jamaat has been supervising activities of the government has arrested hundreds of suspects calls from foreign work experience programme emails who ask for African legal referrals to assist various terrorist groups in the country for a long time’. and agreed to crack down on terrorism funding, there participants arrested for shoplifting in the US. them in obtaining the money. Despite our dire In Bangladesh, as in some other countries, is no evidence that Islamist parties are ready to sever The typical offender is a young woman citizen of a warnings, perhaps because of a strong desire to get fundamentalists have been free in the past few ties with the extremists and pursue the steps necessary developing country arrested at a chain store and rich quick, some are still willing to risk life, limb and decades to establish religious schools, or madrassas, to eliminate the terrorist networks. To achieve such a charged with stealing cosmetics. fortune in an attempt to obtain the promised funds. which may number in the thousands and are often strategic shift, the Islamist parties would have to These matters come to us as a result of the legal We have stopped at least a dozen of these email attended by foreign jihadists with revolutionary publicly renounce all political violence, cut off the consultation and referral benefits that are part of recipients from falling victim to this scam, protecting aspirations. Whether these jihadists will follow the lead financing of extremist activities, and help bring the JMB the programme participants’ mandatory travel their bank accounts from the fraudsters, and saving of Pakistan’s Islamic extremists and ultimately seek to leadership to justice. insurance coverage. them from personal peril.

www.itij.co.uk International Travel Insurance Journal 34 SERVICEDIRECTORY To have your company listed in the Service Directory email: [email protected]

AIR AMBULANCE AIR AMBULANCE cont. AFRICA Global Medical Support Otto Karud – Marketing Director Ullevaal University Hospital [email protected] AMREF Flying Doctor Service Dr Bettina Vadera – Medical Director 0407 Oslo www.globalmedicalsupport.com NORWAY Tel: +47 22 96 50 50 Wilson Airport [email protected] Telfax: +47 22 96 50 51 LangataRoad www.amref.org PO Box 18617 Tel: +254 20 600 090 Nairobi Fax: +254 20 344 170 KENYA IFRA Bernhard Fantner – Assistant to Director Bahnhofplatz 13/5 [email protected] Netcare 911 Aeromedical Shane Marais POB 160 www.ifra.at 3500 Krems Tel: +43 2732 825 610 Netcare 911 House [email protected] 49 New Road www.netcare911.co.za AUSTRIA Fax: +43 2732 851 01 Halfway House Tel: +27 11 254 1392 Midrand 1685 Fax: +27 11 254 1405 SOUTH AFRICA Luxembourg Air Ambulance Andy Breeden – Operations AUSTRALASIA 175A, rue de Cessange [email protected] L-1321 www.air-ambulance.lu CareFlight International Colin Robshaw – Co-ordinator LUXEMBOURG Tel (24 hr): +352 420 440 1 Fax: +352 420 440 366 Westmead Hospital Campus [email protected] PO Box 159 www.careflight.org Westmead Tel: +61 2 9891 1644 NSW 2145 Fax: +61 2 9891 1284 Med Call GmbH Michael Diefenbach – CEO AUSTRALIA Bahnhofstrasse 22 [email protected] 65185 www.medcallgmbh.com Medical Wings Jarin Kiatfuengfoo – Director Wiesbaden Tel: +49 611 9310 310 GERMANY Fax: +49 611 9310 311 222 Room 3602 [email protected] Bangkok Int Airport www.medicalwings.com Viphavadeo-Rangsit Rd Tel: +662 247 3392 Sikan, Donmuang Fax: +662 535 4355 Medic’Air International Dr Herve Raffin – General Manager Bangkok 10210, THAILAND 35 Rue Jules Ferry [email protected] 93170 Bagnolet www.medic-air.com – Operations Manager Mediflight Debra O’Brien Paris Tel: +33 1 4172 1414 Royal Adelaide Hospital [email protected] FRANCE Fax: +331 4857 1010 North Terrace www.mediflight.com.au Adelaide Tel: +61 8 8223 6618 SA 5000 Fax: +61 8 8223 6340 AUSTRALIA Medical Jet Services & Partner W Dichtl Radetzkystr 19 [email protected] South Pacific Air Ambulance Scotty Watson – Managing Director Vienna www.medicaljetservice.com 1030 Tel: +43 1 713 2799 NEW ZEALAND [email protected] AUSTRIA Fax: +43 1 713 2799-19 AUSTRALIA Tel: +649 256 9000 SINGAPORE Fax: +649 256 9111 North Flying A/S Jef Sorenson – Sales Director EUROPE Aalborg Airport [email protected] Norresundby www.northflying.com DK-9400 Tel: +45 96 32 29 00 Aeromed 365 Ltd Alida Benton – Managing Director DENMARK Tel: +45 96 32 29 09 Worth Corner Business Cntr [email protected] Turnershill Road www.aeromed365.com Pound Hill, Crawley Tel: +44 8707 596 999 Swiss Air Ambulance/REGA Walter Stunzi – PR/Marketing Mgr W Sussex RH10 7SL Fax: +44 8707 559 599 UK PO Box 1414 [email protected] Zurich Airport www.rega.ch Alba Consulting Ltd. Andrew McGill – Managing Director CH-8058 Tel: +41 333 333 333 SWITZERLAND Fax: +41 44 654 3590 14 Belvedere Gardens [email protected] Crowborough www.albaconsulting.org East Sussex Tel: +44 1892 610 560 TN6 2LR Fax: +44 1892 652 620 Tyrol Air Ambulance Jakob Ringler – Managing Director UK PO Box 81 [email protected] A-6026 www.taa.at Ambulanzflugdienst Augsburg Roland Schoberth –Director Innsbruck Airport Tel: +43 512 224 220 AUSTRIA Fax: +43 512 288 888 Roseggerstr 17 [email protected] D-86368 www.ambulanzflugdienst.de Gersthofen Tel: +49 821 299 1020 GERMANY Tel: +49 821 299 2030 NORTH AMERICA

Aerojet Stuart Hayman – President – Director, Fixed Wing DRF German Air Rescue Frank Spirgatis 4631 NW 31st Ave #220 [email protected] Raiffeisenstr 32 [email protected] Ft Lauderdale www.aero-jet.com 70794 Filderstadt www.german-air-rescue.de FL 33309 Tel: +1 954 730 9300 GERMANY Tel (24hr): +49 711701070 USA Fax: +1 954 485 6564 Fax: +49 711701071

Air Ambulance Professionals, Inc. Brian L. Weisz – President Euro-flite Air Ambulance Juani Missonen – Coordinator Ft. Lauderdale Executive Airport [email protected] Helsinki International Airport [email protected] 1535 South Perimeter Rd www.airambulanceprof.com PO Box 187 Tel: +358 20510 1900 Hangar 36B Ft. Lauderdale Tel: +1 954 491 0555 FIN-01531 Fax: +358 20510 1901 Florida 33309 Fax: +1 954 491 6114 Vantaa USA FINLAND

Air Ambulance Specialists, Inc. Donald Jones – President FAI – Flight Ambulance International Sven Mueller – Operations Manager 8001 S.Interport Blvd. [email protected] Flughafenstrasse 100 (GAT) [email protected] Suite 250 www.airaasi.com D-90411 Nuremberg www.flightambulance.com GERMANY Tel: +49 911 36009 0 Englewood Toll Free: +1 800 424 7060 Fax: +49 911 36009 59 CO 80111 Tel: +1 720 875 9182 USA Fax: +1 720 875 9183

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AIR AMBULANCE cont. ASSISTANCE COMPANIES cont. Air Ambulance Worldwide Inc. Mark Jones – President Global Assistance & Healthcare Mario Babin – Chief Executive Officer 35246 US Hwy 19 North [email protected] #210 www.airambulanceworldwide.com Jalan Pattimura [email protected] Palm Harbor Tel: +1 727 781 1198 15 Kebayoran Baru www.global-assistance.net Florida 34684 Fax: +1 727 786 0897 Jakaita Tel: +62 21 725 8115 USA 12110 Fax: +62 21 725 7961 INDONESIA Air Trek Air Ambulance David Bump – Vice President Medical Wings Jarin Kiatfuengfoo – Director 28000 A-5 Airport Road [email protected] Punta Gorda www.medjets.com 222 Room 3602 [email protected] FL 33982 Toll free: +1 800 633 5387 Bangkok Int Airport www.medicalwings.com USA Tel: +1 941 639 7855 Viphavadeo-Rangsit Rd Tel: +662 247 3392 Sikan, Donmuang Fax: +662 535 4355 Bangkok 10210 THAILAND Canadian Global Air Ambulance Jeff McIntosh – President – Managing Director Toronto [email protected] South Pacific Air Ambulance Scotty Watson Winnipeg www.canadianglobalair.ca NEW ZEALAND [email protected] Vancouver Toll Free: +1 800 563 3822 CANADA Tel: +1 204 888 5555 AUSTRALIA Tel: +649 256 9000 Fax: +1 204 888 9111 SINGAPORE Fax: +649 256 9111

Global Air Response Carlos Elcoro – Int. Programme Director 7355 S Peoria Street [email protected] EUROPE & THE MED A3/ Suite 209 www.airresponse.net Englewood Tel: +1 800 631 6565 Antalya Assistance Murat Arslanoglu – Network Manager CO 80112 Fax: +1 888 631 6565 USA Muratpasa Mah. [email protected] Adnan Menderes Bulvari 19 www.fempatr.com Gazihan K:4 D:21 Tel: +90 242 243 6219 JetWest Shawn Crocker Antalya Fax: +90 242 248 7724 16644 Roscoe Blvd [email protected] TURKEY Van Nuys www.jetwest.com California 91406 Tel: +1 818 787 9100 91406 Fax: +1 818 787 4473 ARC Transistance Hans Biekmann – Network Director USA 11 Avenue Pleiades [email protected] B-1200 Brussels www.arctransistance.com BELGIUM Tel: +32 2 776 04 70 National Air Ambulance George Martinez – Mgr Flight Co-ordination Fax: +32 2 776 04 99 3495 SW 9th Ave [email protected] Fort Lauderdale www.nationalairambulance.com FL 33315 Tel: +1 954 359 9900 Atlantic Assist Adriano Gouveia – Operations Manager USA Fax: +1 954 359 9500 Rua da Alfandega 10-2.D [email protected] PO Box 750 www.atlanticassist.com 9000-056 Funchal Tel: +351 291 214 200 Skyservice Air Ambulance David Ewing – VP Int. Market Development Madeira Fax: +351 291 214 202 YUL/Trudeau Int Airport [email protected] PORTUGAL 9785 Avenue Ryan www.skyservice.com Montreal (Quebec) Tel: +1 514 497 7000 H9P 1A2 Fax: +1 514 636 0096 CANADA Express Assist Vardan Azatian – General Director 11-th Radialnaya, 2 [email protected] 115404 www.expressassist.ru ASSISTANCE COMPANIES Moscow Tel: +7 095 775 2090 RUSSIA Fax: +7 095 775 2091 AFRICA Global Voyager Assistance Costas Danilenko – CEO AMREF Flying Doctor Service Dr Bettina Vadera – Medical Director PO Box II [email protected] Wilson Airport [email protected] Langata Road www.amref.org 125124 www.gvassistance.com PO Box 18617 Tel: +254 20 600 090 Moscow Tel: +7 095 775 0999 Nairobi Fax: +254 20 344 170 RUSSIA Fax: +7 095 775 0998 KENYA

Connex Assistance Egypt Lara Helmi – Int Network Director Life Assist Igor A Striganov – General Director Office II [email protected] House 3/7 [email protected] Ist Floor www.connexassistance.com 5th Passage of Marinoi Roshi www.lifeassist.ru 6 Sad El Aali Street Tel (24hr): +2 02 336 0005 129594, Moscow Tel: +7 095 755 5678 Dokki, Cairo Fax (24hr): +2 02 762 0003 RUSSIA Fax: +7 095 631 0465 EGYPT AUSTRALASIA MK International Emergency Services Minas Kaloumenos – General Manager Blue Dot Assistance Dr Faustinus Wirasadi – President Director 95, Ioanninon Street [email protected] 10444 Athens Tel: +30 210 5154600 Blue Dot Center [email protected] GREECE Fax: +30 210 5131660 Blok K, L, M www.idn.co.id Jl Gelong Baru Utara 5-8 Tel: +62 21 5696 2399 Tomang, Jakarta Barat 1440 Fax: +62 21 5696 2499 INDONESIA SER Assistance Ltd. Dr S Zareceansky – Gen Mgr & Director Customer Care Pty Ltd Janine Benson – Operations Manager 50/2206 Dizengoff Street [email protected] Level 3 [email protected] Dizengoff Tower Tel: +972 544 370 002 60 Miller Street www.customercare.com.au 64332 Tel-Aviv Fax: +972 362 919 91 North Sydney 2060 Tel: +612 9202 8222 ISRAEL NSW Fax: +612 9202 8220 AUSTRALIA SOS International Helle Drager – Marketing Manager First Assistance Mary-Jo McDonald – Sales & Marketing Mgr Nitivej 6 [email protected] PO Box 17-310 [email protected] DK-2000 www.sos.dk Greenlane www.firstassistance.co.nz Frederiksberg Tel: +45 7010 5050 Auckland Tel: +64 9 356 1650 Copenhagen Fax: +45 7010 5056 NEW ZEALAND Fax: +64 9 525 1278 DENMARK

www.itij.co.uk International Travel Insurance Journal 36 SERVICEDIRECTORY To have your company listed in the Service Directory email: [email protected]

ASSISTANCE COMPANIES cont. COST CONTAINMENT cont. Global Excel Management Brian Allatt – CEO TBS Team 24 d.o.o Edvard Hojnik – General Manager 73 Queen Street, Lennoxville [email protected] Ljubljanska Ulica 42 [email protected] Quebec, JIM 1J3, CANADA www.globalexcel.ca 2000 Maribor www.tbs-team24.com 4242 Cranmore Court Tel: +1 866 566 1130 SLOVENIJA Tel: +386 2618 2301 Belle Isle, FL 32812 Fax: +1 819 566 8335 (Croatia, Bosnia, Macedonia, Fax: +386 2618 5800 USA Kosovo, Herzegovina & Serbia)

NORTH & CENTRAL AMERICA Global Medical Management Raija Itzchaki – Assistant VP Marketing 7901 SW 36th Street [email protected] Assured Assistance Inc. Martha Turnbull – Director of Operations Suite 100 www.gmmusa.com Davie Tel: +1 954 370 6404 6880 Financial Drive [email protected] FL 33328 Fax: +1 954 370 8613 Mississauga Tel: +1 905 816 2495 USA Ontario Fax: +1 905 813 4719 L5N 7Y5 CANADA Health Systems International Peggy Novotny – VP / Gen Mng. Int Bus. 5975 Castle Creek Parkway [email protected] CMN Inc. Peter Lozier – Vice President Suite 100 www.us-hsi.com Indianapolis Tel: +1 317 806 2000 140 Renfrew Drive [email protected] IN 46250 Fax: +1 317 806 2033 Suite 103 Markham www.canmednet.com USA Ontario Tel: +1 905 669 4333 L3R 6B3 Fax: +1 905 669 2221 CANADA Health Management Network Rhett Crosby – Nat PPO Network Sales Mgr Southwest Corporate Center [email protected] Global Excel Management Brian Allatt – CEO 1600 W.Broadway Road www.healthmanagementnetwork.com 73 Queen Street [email protected] Suite 300, Tempe Tel: +1 480 446 2413 Lennoxville, Quebec www.globalexcel.ca AZ 85282 Fax: +1 480 894 313 JIM IJ3, CANADA Tel: +1 866 566 1130 USA 4242 Cranmore Court Fax: +1 819 566 8335 Belle Isle, Fl 32812, USA Hygeia Corporation Joe Radigan – Chief Operating Officer

– SVP of Sales 15500 New Barn Road [email protected] Medex Assistance Corporation Linda McGee Suite 200 www.hygeia.net 8501 LaSalle Road [email protected] Miami Lakes Tel: +1 305 594 9291 Suite 200 www.medexassist.com FL 33014 Fax: +1 305 594 9201 Baltimore Tel: +1 410 453 6300 USA MD 21286 Fax: +1 410 453 6301 USA Medsave USA Donald Moyle – Chief Marketing Officer

– Ops Manager 1400 Old Country Road [email protected] TMCA Margaret Whartom Suite 109 www.medsaveusa.com 217 Broadway [email protected] Westbury Tel: +1 516 622 1700 Suite 600 www.tmcatravel.com NY 11590 Fax: +1 516 622 1733 NYC Tel: +1 212 964 8580 USA NY 10007 Fax: +1 212 406 1520 USA OneWorld Assist Calvin Ball – Business Development Manager

World Travel Protection Canada Inc. Dr Ron Mayer – President & Chf Med Officer 10th Floor [email protected] 6081 No. 3 Road www.oneworldassist.com 400 University Avenue [email protected] Richmond, BC Tel: +1 604 278 4108 15th Floor www.wtp.ca V6Y 2B2 Fax: +1 604 303 2142 Toronto Tel: +1 416 977 3565 CANADA Ontario M5G IS7 Fax: +1 416 205 4676 CANADA Star Healthcare Network Inc. Gigi Galen – President 850 Seventh Avenue [email protected] Suite #803 www.starhealthcarenet.com New York 10019 Tel: +1 212 581 8228 AIR AMBULANCE INTERIOR USA Fax: +1 212 581 8272

Air Ambulance Technology Egon Kuntner – President TMCA Margaret Whartom – Ops Manager A-5282 [email protected] Ranshofen www.airambulancetechnology.com 217 Broadway [email protected] AUSTRIA Tel: +43 7722 85051 Suite 600 www.tmcatravel.com Fax: +43 7722 85051-22 NYC Tel: +1 212 964 8580 NY 10007 Fax: +1 212 406 1520 USA

COST CONTAINMENT CLAIMS MANAGEMENT EUROPE Global Assistance & Healthcare Nathan Hannah – TPA Mgr Asia/Pac ChargeCare International Philip Marshall – Director of Operations Jalan Pattimura [email protected] 15 Kebayoran Baru www.global-assistance.net PO Box 18 [email protected] Jakaita Tel: +62 21 725 8115 Holsworthy www.chargecare.co.uk 12110 Fax: +62 21 725 8951 EX22 7WB Tel: +44 1409 261 368 INDONESIA UK Fax: +44 1409 261 633 Global Excel Management Brian Allatt – CEO

M & V Administrators GmbH Jennifer Venables – Corp. Ops Director 73 Queen Street, Lennoxville [email protected] Obergütschstrasse 33 [email protected] Quebec, JIM 1J3, CANADA www.globalexcel.ca Postfach 7622 www.mv-administrators.com 4242 Cranmore Court Tel: +1 866 566 1130 CH-6003 Luzern Tel: +41 41 210 6040 Belle Isle, FL 32812 Fax: +1 819 566 8335 SWITZERLAND Fax: +41 41 210 6039 USA

NORTH AMERICA CRITICAL CARE PATIENT TRANSPORT

CMN Inc. Peter Lozier – Vice President Lufthansa German Airlines Doris Ehring – Product & Process Management 140 Renfrew Drive [email protected] Suite 103 Markham www.canmednet.com FRA SQ/B [email protected] Ontario Tel: +1 905 669 4333 Frankfurt Airport Tel: +49 172 367 7929 L3R 6B3 Fax: +1 905 669 2221 D-60546 Fax: +49 69 690 58147 CANADA GERMANY

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FUNERAL DIRECTORS HOSPITALS cont.

Bangkok General Hospital Jane Bailey – Int Marketing Executive EUROPE International Medical Center [email protected] Defin Funeral Services Murat Arslanoglu – Network Manager 2, Soi Soonvijai 7 www.bangkokhospital.com New Petchburi Road Tel: +66 2310 3460 Muratpasa Mah. [email protected] Bangkok 10320 Fax: +66 2310 3367 Adnan Menderes Bulvari 19 www.fempatr.com THAILAND Gazihan K:4 D:21 Tel: +90 242 248 8389 Antalya Fax: +90 242 248 7724 TURKEY Baptist Health International Center of Miami Yohandra Fuentes – Finance Manager 8940 North Kendall Drive [email protected] – General Manager Funeraria Officia Roberto Zega Cristina Zega Suite 601-E www.baptisthealth.net/international Via Clelia 26-28 [email protected] Miami, Fl 33176 Tel: +1 786 596 2373 Roma www.zega.it USA Fax: +1 786 596 5979 ITALY Tel: +39 067 840 300 Fax: +39 067 802 488 Hospital Clinica Benidorm Ana DaPaz Brown – Medical Director Funeralcare International Roger Waddington Avenida Alfonso Purchades 8 [email protected] 03500 Benidorm www.clinicabenidorm.com 221 Upper Richmond Road [email protected] Alicante Tel: +34 96 585 3850 Putney Tel: +44 20 8788 5303 London SW15 6SQ Fax: +44 20 8788 2525 SPAIN Fax: +34 96 586 4345 UK

Xanit Hospital de Benalmadena Dr. Juan Bosco Rodriguez Hurtado – Director Global Networks Funeral Assistance Cristina Almudi – Managing Director Camino de Gilabert s/n [email protected] 22 Falcon Crescent [email protected] Benalmadena www.xanit.net Enfield www.globalnetworksfa.com 29630 Tel: +34 952 44 3119/0032 EN3 4LT Tel: +44 208 350 0645 Malaga Fax: +34 952 57 6661 UK Fax: +44 208 482 0742 SPAIN

MK Funeral & Transportation Services Minas Kaloumenos – General Manager 95, Ioanninon Street [email protected] MEDICAL ESCORT ON COMMERCIAL AIRLINES 10444 Athens Tel: +30 210 5154600 GREECE Fax: +30 210 5131660 AFRICA

Rowland Brothers International Melanie Walkling AMREF Flying Doctor Service Dr Bettina Vadera – Medical Director 299-305 Whitehorse Road [email protected] Wilson Airport [email protected] West Croydon www.rowlandbrothersinternational.co.uk Langata Road www.amref.org Surrey Tel: +44 20 8684 2324 PO Box 18617 Tel: +254 20 600 090 CR0 2HR Fax: +44 20 8684 8000 UK Nairobi Fax: +254 20 344 170 KENYA Servilusa Vanda Castro – Manager Int Dept AUSTRALASIA Agencias Funerarias SA [email protected] International Dept. www.servilusa.pt Medical Wings Jarin Kiatfuengfoo – Director Rua do Entreposto Industrial Tel: +35 121 470 6300 8-2 Esq, 2610-135 Amadora Fax: +35 121 470 6499 222 Room 3602 [email protected] PORTUGAL Bangkok Int Airport www.medicalwings.com Viphavadeo-Rangsit Rd Tel: +662 247 3392 NORTH AMERICA Sikan, Donmuang Fax: +662 535 4355 Bangkok 10210 THAILAND Bergen Funeral Sevice Scott Nimmo – Funeral Director 129 E 7th St. [email protected] Mediflight Debra O’Brien – Operations Manager New York www.bergenfuneral.com NY 10009 Tel: +1 212 254 2864 Royal Adelaide Hospital [email protected] USA Fax: +1 201 288 5694 North Terrace www.mediflight.com.au “Servicing all of the USA, Canada, South & Central America” Adelaide Tel: +61 8 8223 6618 SA 5000 Fax: +61 8 8223 6340 HEALTHCARE CLINICS AUSTRALIA EUROPE LuzDoc International Medical Serv. Ltd Dr Maria Alice Silva – Medical Director Medic’Air International Dr Herve Raffin – General Manager Medical & Assistance Services [email protected] Rua 25 de Abril, 12 www.luzdoc.com 35 Rue Jules Ferry [email protected] Villa da Luz Tel: +351 282 780 700 93170 Bagnolet www.medic-air.com 8600-174, LUZ LGS Fax: +351 282 780 709 PORTUGAL Paris Tel: +33 1 4172 1414 FRANCE Fax: +33 1 4857 1010

Number One Health Group Dr Charlie Easmon – Director 1 Harley Street [email protected] NORTH AMERICA London www.executivescreen.com W1G 9QD Tel: +44 207 307 8756 Air Ambulance Worldwide Inc. Mark Jones – President UK Fax: +447092 196 169 35246 US Hwy 19 North [email protected] #210 www.airambulanceworldwide.com Palm Harbor Tel: +1 727 781 1198 Florida 34684 Fax: +1 727 786 0897 HOSPITALS USA

Global Air Response Carlos Elcoro – Int. Programme Director AmeriMed American Hosp & Med. Cnt. Mark R Engelman – MD 4340 E Indian School Road [email protected] 7355 S Peoria Street [email protected] STE 21, PMB 564, www.amerimed-hospitals.com A3/ Suite 209 www.airresponse.net Phx, Az 85018 Tel: +1 602 952 0405 Englewood Tel: +1 800 631 6565 USA Fax: +1 602 952 1668 CO 80112 Fax: +1 888 631 6565 USA 38 SERVICEDIRECTORY

MEDICAL PROVIDERS cont. Europe panics at avian flu threat continued from p.1 AMREF Flying Doctor Service Dr Bettina Vadera – Medical Director “If we can identify it quickly enough and get to the antiviral drugs to prepare for a future pandemic. He Wilson Airport [email protected] Langata Road www.amref.org source with speed, it’s possible we can very said that the commission was proposing to set aside € PO Box 18617 Tel: +254 20 600 090 carefully contain it, sparing the rest of the world 1 billion to help make and distribute antivirals and Nairobi Fax: +254 20 344 170 from its damage.” new vaccines. KENYA Roberto Bertollini, head of the European branch of Mr Kyprianou said: “We have received confirmation the WHO, commented: “We are not in the that the virus found in Turkey is an avian flu H5N1 presence of a human pandemic and the fact that virus. There is a direct relationship with viruses Atlantic Assist Adriano Gouveia – Operations Manager the H5N1 virus has arrived at Europe’s doors does found in Russia, Mongolia and China.” Rua da Alfandega 10-2.D [email protected] not mean that we need a change in strategy.” He added that hundreds of millions of vulnerable PO Box 750 www.atlanticassist.com It is strictly an animal-borne disease at this point, he people in Europe, including young children, should 9000-056 Funchal Tel: +351 291 214 200 added, although its spread “raised be given the standard flu jab, but Madeira Fax: +351 291 214 202 the probability that some people, sought to calm fears of an PORTUGAL like farmers, in direct contact with imminent human pandemic the sick animals, could get bird flu, spreading across Europe. The SOS – Hungary Assistance Dr Peter Felkai – Medical Director but still it would be through fear is that flu sufferers that exceptional circumstances.” come into contact with avian flu Szentendrei Street 301 [email protected] The H5N1 strain is believed to be could act as a catalyst for the Budapest www.soshungary.hu genetically related to the Spanish flu virus to mutate. H-1039 Tel: +36 1240 0475 that caused 40 million deaths in Meanwhile, economists say that HUNGARY Fax: +36 1439 1440 1918, according to research a pandemic of bird flu could shut published in the journals Nature and down travel, disrupt supply Science. It can be contracted through contact with chains, overwhelm healthcare systems and faeces, raw meat or exhaled air of the infected birds. devastate economies globally. Industries hardest hit MEDICAL SCREENING The UN’s Food and Agriculture Organisation said it could include airlines, travel-related services, has $7 million to use for a bird flu education and insurance firms and healthcare; say economist prevention programme, and expects another $175 Sherry Cooper and global portfolio strategist Risck Solutions Ltd Ian Findlay – Commercial Director million to be raised for use by other international Donald Coxe in Investor’s Guide to Avian Flu. The Medical Centre [email protected] organisations. Almost $20 million has been Australian tourism minister, Margaret Keech, has 238 Broomhill Road www.risck.co.uk promised in assistance to Cambodia, Laos, warned that a bird flu outbreak could be more harmful Brislington Tel: +44 117 300 7007 Indonesia and Vietnam, while Australia has pledged to tourism than SARS: “SARS really did devastate the Bristol BS4 5RG Fax: +44 117 300 7003 an additional AU$10 million. tourism industry here in Queensland because people UK Shigeru Omi, the WHO’s regional director for the were afraid to travel. I think that potentially the impact Western Pacific, said: “One of the biggest coalitions of the bird flu could be even greater.” The Medical Screening Company Glenda Cardenas – Accounts Manager in the history of public health is now taking shape. An Association of Corporate Travel Executives Of course, I have no illusions about the danger the (ACTE) has met the Centre for Disease Control in Monitor House [email protected] world is in, because we are dealing with a virus that the US amid concerns of a pandemic. The ACTE’s 2a Belmont Road www.monitorinternational.com is unpredictable, firmly entrenched and continuing website will begin listing the most credible links to Sutton, Surrey Tel: +44 208 770 2778 to spread.” health and travel advisories, plus other available SM2 6DW Fax: +44 208 770 2756 The European Union (EU) health commissioner, resources. The task force will monitor the activities UK Markos Kyprianou, has urged countries to stockpile of the CDC and WHO and report accordingly.

Travel & Medical Insurance Services Michael J Turner – MD 1st Flr Suite, West House [email protected] 46 High Street www.travelandmedical.net Orpington, Kent Tel: +44 845 058 8000 Pakistan overwhelmed by quake crisis BR6 0JQ Fax: +44 845 053 3000 UK continued from p.1

people rallied around to help those affected by the parents accompanied the frantic work in the Balakot Asian tsunami of last year. The European Union valley in the mountains of the province bordering RE-INSURANCE Commission pledged $4.4 million in emergency Afghanistan,” according to a reporter on the relief aid to the region, the US has sent $50 million, ground. On the other side of the border in the while Australia has given $5,500,000. China offered Indian-administered part of Kashmir, authorities said Crispin Speers & Partners ltd David Stirling – Marketing Manager $6.2 million and sent seismologists, medical at least 1,300 people are known to have died. St Clare House [email protected] workers, search dogs and supplies, along with Meanwhile, in neighbouring India, at least 600 30-33 Minories www.cspinsurance.com Turkey, Japan and Russia. people were reported killed. London EC3N 1PE Tel: +44 20 7977 5700 American International Group Inc. (AIG) is donating Indian tour operators have said that tourists in the UK Fax: +44 20 7702 9276 $1 million to support relief efforts in the areas area are reported to be safe and tours are affected by the earthquake. In addition, Martin continuing as normal. Rajeev Kohli, marketing Sullivan, AIG president and chief executive officer, director of Creative Travel India, said: “There is no said, “While we are grateful that none of AIG’s information of any damage to any areas of interest TRAVEL AGENTS employees were harmed in this tragedy, the to tourists or of any tourists coming into harm’s earthquake in South Asia has left hundreds of way. We feel all tours to India can run normally thousands homeless with no access to the most without any deviations.” Voyageur Aeromedical Travel Marc Lucus – General Manager basic necessities. The funds donated will be given to Amid the disaster there is a ray of hope, as both organisations throughout India and Pakistan that will India and Pakistan laid aside their ancient quarrels Voyageur Buildings [email protected] be able to most efficiently and effectively provide for the moment of shared grief. India offered rescue 43 Colston Street www.voyageur.co.uk much needed relief.” and relief assistance to neighbouring Pakistan, parts Bristol BS1 5AX Tel: +44 (0)117 927 3554 UK Fax: +44 (0)117 925 5940 AIG has long-standing presence in the region. of which also suffered extensive damage in the Through a joint venture in India, Tata AIG has natural calamity. offices throughout the country that provide general India’s Prime Minister Manmohan Singh, in a and life insurance. In Pakistan, AIG Companies, message to Pakistan’s President Pervez Musharraf, The 24 Hour Aeromedical Travel Service headquartered in Karachi, also provide general and said: “While parts of India have also suffered from life insurance. There are as yet no estimates of this unexpected natural disaster, we are prepared to insured losses from this event, although these are extend any assistance with rescue and relief which not expected to be high as insurance penetration in you may deem appropriate.” Pakistan generally is very low, according to Willis Re. An editorial comment in the Indian newspaper The The enormous cost in human lives is made even Hindu, expressed it thus: “The terrible tragedy may more poignant as many of the dead were children, have taken place in disputed territory but it has crushed when schools collapsed. “Amongst united the two parties in a common grief. The countless tragic sights, perhaps most pitiful was that earthquake has damaged the bridge connecting the of hundreds of parents using picks, shovels and their two parts of Kashmir that symbolises the thaw in Contact: Marc Lucas, Voyageur AeroMedical Travel, Voyageur bare hands in a desperate attempt to reach 850 their ties. It will be repaired shortly, but the tragedy Buildings, 43 Colston Street, Bristol BS1 5AX children trapped in the rubble of two schools in has offered New Delhi and Islamabad a greater Tel: +44 117 921 0401 Fax:+44 117 925 5940 Email: [email protected] Northwest Frontier Province. The frightened voices opportunity: that of establishing an emotional bridge of trapped children and the anguished wails of between the two countries.”

International Travel Insurance Journal www.itij.co.uk ONTHEMOVE 39

Lloyd’s loss is CONTRIBUTORS Dick Atkins is chief counsel for International Prudential’s gain Recoveries, Philadelphia, which provides global legal assistance to the travel insurance industry. He is in charge of International Recoveries’ legal Diary dates The Board of the UK’s Prudential plc announced hotline and has been involved in handling international legal incidents for the past 20 years. that Nick Prettejohn has left his post as CEO of He can be reached via email on [email protected] 1 November 9–10 November Lloyd’s of London to head the domestic operations Manage Risk, Control Costs, and Improve Operational Management Risk Forum of the country’s second largest life insurer. He will Robert Bailey is an experienced international ROI with Master Data Integration The Renaissance, DC Washington Hotel, US replace current UK head Mark Wood as of 1 journalist and an expert on the Middle East and Africa. He has contributed to several financial InterContinental The Barclay, NY, US www.sourcemediaconferences.com January 2006. publications including the Wall Street Journal. www.sourcemediaconferences.com Prettejohn has been Lloyd’s CEO since 1999, and 12–16 November has been instrumental in steering the London Barbara Casassus is a Paris-based freelance journalist. 2–4 November International Association of Emergency She contributes to the American weekly magazine market through some of the most dramatic Contingency Planning & Management Expo Managers – IAEM 2005 Annual Conference ‘Science’, the daily newspapers Chicago Tribune and restructurings in its 300 plus years. Prettejohn has ‘Baltimore Sun’, and to specialist magazines and – CPM 2005 East & EMEX newsletters on economics, law, tourism and publishing Gaylord Palms Resort, Florida, US Phoenix Civic Plaza, Arizona, US overseen the changeover from self-regulation to in France. She wrote for the Financial Times, the Times www.contingencyplanningexpo.com www.iaem.com/events/annual/intro.htm supervision by the UK’s Financial Services Authority; Educational Supplement and a number of periodicals the adoption of a franchise system; the while living in the Middle East and Japan. 3 November 18 November establishment of new processing for back office Miles Clarke is a Sydney-based freelance journalist Attaining Optimal Shareholder Value – a Individual Capital Assessment: Lessons procedures in partnership with Xchanging; with more than two decades’ experience in Performance Management Strategy From the First Year (ICAS) harmonization of wordings and procedures with newspapers, radio and trade press. As a business and The Peninsula, NY, US Grange City Hotel, 8 - 10 Coopers Row, London travel writer, his work takes him throughout the Pacific, London’s International Underwriting Association, Southeast and East Asia, Australia and New Zealand. www.sourcemediaconferences.com www.abi.org.uk and the changeover from three year accounting to an annual system – to name a few. He also guided Dr Charlie Easmon trained at St George’s, London. His 6–8 November 28–29 November route in to travel medicine and public health was through The Insurance Technology Conference – 2nd Conference on Pensions & Retirement Lloyd’s through 9/11, last year’s hurricanes, as well medical evacuations, working abroad and stints at the ISOTech 2005 Planning as working on Katrina, and leaves Lloyd’s with a Hospital for Tropical Disease’s travel clinic. He enjoyed solid balance sheet. several years on the board of the British Travel Health Rio All-Suite Hotel and Casino, Las Vegas, US The Mandarin Oriental, Hong Kong Association and is one of the few UK medical practitioners www.iso.com/conferences/isotech05 www.asiainsurancereview.com/Conferences Prudential’s Group CEO Mark Tucker commented: to have obtained the International Certificate in Travel “Nick’s background and experience mean that he is Health from the International Society of Travel Health. 7–8 November 29 November – 1 December well suited to lead our UK Insurance Operations to The 4th Annual BITS/American Banker EIBTM (The Global Meetings & Incentive Robin Gauldie is a freelance journalist specialising in the next stage in their development. He is widely travel, aviation and related sectors. A former editor of Financial Services Outsourcing Conference Exhibition) respected in the industry and across the financial the pan-European travel industry newspaper TTG The Renaissance, DC Washington Hotel, US Fira Gran Via, Barcelona, Spain community. He has broad and relevant experience Europa, he has also edited Destination ASEAN; ABTA www.sourcemediaconferences.com www.eibtm.com Magazine; and Travel Agent International. He contributes of the financial services market and has a track to the Times, the Sunday Telegraph, the Scotsman, the record of implementing strategic change successfully Sunday Mirror, and to numerous specalist magazines 7–8 November 1 December and is the author of more than 20 travel guidebooks. China Rendezvous – Meeting the Maximizing Productivity, Service and Agility and will bring a fresh, external perspective to the Reinsurance Needs of the Dynamic Fast in Insurance business. I look forward to working with him at this iJET Travel Intelligence (www.ijet.com), the travel risk Growing Market Intercontinental The Barclay New York, NY exciting time for the UK and the Group.” He also management company, provides real-time travel intelligence information through its award-winning Shanghai International Conference Centre, China www.sourcemediaconferences.com thanked Wood for his contributions on behalf of Worldcue (copyright) technology platform for tracking www.asiainsurancereview.com/Conferences Prudential. and communicating with travellers. iJET services are 5 December “I am delighted to be joining Prudential at this backed by regional and category specialists from the 8–11 November 2005 Saver Summit fields of intelligence, security, travel, and health who staff exciting time in the Group’s development,” an around-the-clock operations centre in Annapolis, MD. International Travel Insurance Conference BAFTA, 195 Piccadilly, London Prettejohn stated. “There is huge potential for the (ITIC) www.abi.org.uk business in the UK, and I look forward to working David Ing is a freelance journalist covering mainly travel Alfonso XIII, Seville, Spain and tourism issues in Spain. He writes on air transport with the Board and the management team to www.itic.org.uk for a leading international news agency, as well as deliver strong, profitable growth. contributing special features to Newsweek and writing in in-flight magazine articles and guidebooks.

Milan Korcok is an award-winning freelance health policy and economics writer who covers travel insurance, public health, and medical education issues Change at helm of in Canada and the United States. He has been writing about health financing and policy issues in these countries since the 1960s and is a frequent contributor National Jets to leading North American professional journals and Smile corner consumer media. He lives in Fort Lauderdale, Florida. National Jets Inc. of Ft. Lauderdale, Florida, has Corporate Lesson 3: “Me next! Me next!” says the sales rep. “I announced the appointment of Sam Robbin as Roger St Pierre is one of the UK’s most experienced travel, music and motoring writers and has visited 111 A sales representative, an administration want to be in Hawaii, relaxing on the president, as Thomas Boy steps aside after 45 years countries on five continents. His insights appear in a wide of service. Robbin has several years of airline clerk, and the manager are walking to beach with my personal masseuse, an range of consumer and trade publications. Roger’s 33 management experience and has been National’s published books include a history of McDonald’s, guides lunch when they find an antique oil endless supply of Pina Coladas to such destinations as Orlando, Moscow, Edinburgh and vice president for the past nine years. the Costa del Sol, biographies of Marilyn Monroe, James lamp. They rub it and a Genie comes and the love of my life.” Poof! He’s gone. Dean, Bob Marley and Jimi Hendrix and a range of cycling out. “OK, you’re up,” the Genie says to the books, the latest of which is A Bike Is For Life. The Genie says: “I’ll give each of you just manager. Benedict Tembo is a journalist working for the Zambia one wish.” The manager says: “I want those two European expansion Daily Mail, one of the country’s mass circulation newspapers as deputy production editor. Prior to “Me first! Me first!” says the admin clerk. back in the office after lunch.” moving to the production department three years ago, “I want to be in the Bahamas, driving a for OneWorld he was on the sports desk, as sports editor. He has covered some of the high-profile events such as the speedboat, without a care in the world.” Moral of the story: Always let your African Nations Cup (1998 in Burkina Faso and 2002 in Jeanette Harper has been appointed Business Mali), the 2000 Sydney Olympic Games, among others. Poof! She’s gone. boss have the first say. Development Manager Europe for OneWorld He is also board member of the Press Association of Assist, and is located in London, UK. With over 14 Zambia (PAZA), the country’s media professional body. years of experience in marketing consultancy and Ian Youngman is a specialist freelance insurance business development, Jeanette is responsible for writer and researcher who writes for a wide range of expanding markets for OneWorld Assist’s claims publications. As well as researching and publishing specialist management reports on insurance, he is a Woods joins TMCA adds assistance and cost containment services to UK and ghostwriter for various companies and European insurers and third party administrators. organisations.He previously had extensive industry Swinglehurst consulting expertise experience with insurers and brokers. Lloyd’s broker Swinglehurst Ltd has announced the TMCA is pleased to announce the addition of Dr Published on behalf of Voyageur Publishing & Events Ltd, appointment of Neil Woods, formerly general Colin Plotkin as medical director to their team. Moving on from Voyageur Buildings, 43 Colston Street, manager of Mercury Assistance, to the position of Previously working as a consultant for the well-known Bristol BS15AX, UK business development manager for travel and media New York-based assistance and cost containment Penningtons services. organisation, he brings with him 14 valuable years of Costas Andrea has recently resigned from The information contained in this publication has been published in good faith and every effort has been made to ensure its “Neil brings with him a broad range of skills and experience in the travel insurance industry. Pennington Solicitors and has been placed on accuracy. Neither the publisher nor Voyageur Ltd can accept any expertise in the travel insurance and assistance In addition to TMCA, Dr Plotkin has and still does garden leave. Prior to Penningtons, Costas ran his responsibility for any error or misinterpretation. All liability for loss, disappointment, negligence or other damage caused by industry, which will be invaluable to us and our work as a medical director to several travel insurers. own practice, Andrea & Co, for just over six years reliance on the information contained in this publication, or in the event of bankruptcy or liquidation or cessation of the trade of clients as we continue to expand our bespoke travel Dr Plotkin will be heading up the medical referrals before merging with Penningtons in November any company, individual or firm mentioned, is hereby excluded. offerings to the UK and international markets,” said and giving expert medical advice on complex and 2003. Costas has run a focus group at both the Gordon Devlin, partner at Swinglehurst Ltd, an legal cases. His expertise will also be utilised to European and International Conference for a couple Printed by St. Ives (Roche) Ltd independent Lloyd’s and international broker based determine the transport and moving needs of years as well as writing a number of articles for in London, with representation in Shanghai, Rio de of patients. ITIJ. When ITIJ contacted Penningtons, no-one was Copyright © Voyageur Publishing 2004. Materials in this publication Janeiro and Miami. available for comment. may not be reproduced in any form without permission. INTERNATIONAL TRAVEL INSURANCE JOURNAL ISSN 1743-1522

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