ITIJITIJ Page 18 Page 20 Page 26 Page 28 International Travel Insurance Journal ISSUE 53 • JUNE 2005 ESSENTIAL READING FOR TRAVEL INSURANCE INDUSTRY PROFESSIONALS

Travel trends Insurance industry targeted by FBI increase malaria risk Determined not to be caught off guard by another Enron or International travellers are increasingly visiting savings and loan scandal, the areas that have malaria. Richard Forsyth reports on US Federal Bureau of an alarming new trend Investigation (FBI) has parachuted into the middle of Thousands more travellers are being exposed to the the continuing probe of threat of malaria each year, as visitor numbers insurance industry continue to increase in high-risk areas. In total, over irregularities triggered last fall five million people travelled to malarious areas in by New York Attorney General 2004. Eliot Spitzer. Report by Milan New research has found that there is a higher risk to Korcok travellers to South East Asia than previously estimated. This area alone contributes 25 per cent of the 500 Announcing that it had mobilised million cases noted worldwide of the most harmful special agents from its 56 field type of malaria – falciparum – each year. There has offices to funnel all insurance- also been an increase in the number of malaria cases related investigation data amongst international travellers returning from coastal through its national offices in resorts in the Dominican Republic, including areas that Washington DC, spokesmen for were previously malaria free. the federal agency confirmed A European airport study revealed in its findings that that they had been looking at 60 per cent of people failed to seek travel health accounting problems and advice before venturing abroad, with one quarter of corporate fraud schemes within those who were visiting a high-risk malaria area the industry for over a year. unaware of the risk. By joining investigators from Dr George Kassianos, GP and member of the UK Spitzer’s New York office, the Malaria Guidelines Committee, commented: “What Securities and Exchange we are seeing far too often is people not taking anti- Commission (SEC) and malarial medication, taking the wrong medication for attorneys general from several other states, the FBI insurance accounting, finite re-insurance, and those Maurice Greenberg as chief executive and chairman the country they are visiting, or not completing the brings with it the compelling weight of criminal sectors now being probed by other agencies. of AIG, and prompted the board of directors to course for the prescribed time after leaving the prosecution and the spectre of hard jail time. Though Swecker demurred from naming specific admit that the company had overstated its net worth malarious area. Malaria is a dangerous and potentially In announcing the mobilisation, Chris Swecker, targets of investigation and potential prosecution, the by $2.7 million. Greenberg remains under fatal disease, but is preventable with good bite Assistant Director of the FBI and Head of its criminal timing clearly implicated the Spitzer/SEC investigation investigation for, among other things, stock prevention measures and the correct anti-malarial division, said the FBI wanted to be prepared if the of American Insurance Group (AIG)’s reinsurance manipulation prior to his departure from AIG. medication.” current insurance problems now swirling through the contracting with General Re Corp, as well as its The FBI also noted that it was casting its net far Malaria is currently endemic in over 100 countries. industry turned out to become the nation’s next transactions with reinsurers in Bermuda and beyond the current AIG probe and the bid rigging From 2002 to 2004, travel to malaria-inflicted India financial crisis. elsewhere. According to prosecutors’ allegations to and kickback schemes uncovered by Spitzer last fall, increased by 42 per cent. And since 1995, there has Swecker also confirmed that the FBI had enlisted the date, reinsurers had improperly issued reinsurance to investigate corporate fraud, premium diversion, been an increase in travel, generally, to regions that aid of the National Association of Insurance contracts to AIG to help that company – the largest fraudulent accounting, unauthorised sale of are affected, such as Asia, the Caribbean, and South Commissioners (NAIC), the New York Insurance insurer in the world – ‘smooth out’ its earnings and insurance-related products and workers’ and Central America. Exposure to the disease has Department and other state regulators in briefing its mask its true reserve status. compensation fraud. been increased, due to several countries in these special agents in the intricacies of corporate Those allegations led to the ouster of the legendary See News analysis, p .18 regions having become more accessible over the last few years, particularly Vietnam, Cambodia, Myanmar, and Thailand in Asia. FSA forces Whiteleys into receivership

The Financial Services Authority (FSA) has put “They were acting as an insurer. It was also FSA. PwC is particularly concerned about travel business. The watchdog would not comment on Whiteley Insurance Consultants, one of the UK’s discovered that some of their insurance policies policies where ARISA Assurances S.A. is named as the how many other brokers may be in breach of its biggest travel insurance brokers, into the hands of were not underwritten,” FSA spokeswoman Vanessa underwriter, fearing that there is no insurance cover in rules, although Wood noted: “We are looking at liquidators. By John Sanders Wood told ITIJ. She added that the regulator opened place on these policies. Whiteleys, which was based in certain areas as a priority, but at the moment it is too an investigation into Whiteleys in January following Halifax, West Yorkshire, also traded as Kingfisher Travel early to say whether there is a widespread problem The FSA took the decision after discovering that information received from an underwriter. Insurance and Kingfisher Insurance Services. out there.” Whiteleys had been acting without permission as an At the end of April, the High Court appointed This is the second time that the FSA, which began The FSA regulates the sale of annual travel policies, insurer and that some policies were not worth the PricewaterhouseCoopers (PwC) as provisional regulating insurance intermediaries in January, has but not one-off policies sold, for example, as part of paper they were written on. liquidator of Whiteleys following an application by the used its powers to force a broker to wind up its a package holiday. 2 NEWS

Travel agents are Croc threat in Oz blasted again National Park Editorial A UK-based online financial comparison website has ITIJITIJ strongly criticised high-street travel agents, who it Rangers at the Kakadu National Park in Australia International Travel Insurance Journal says levy premiums that are typically twice as have warned that there are a record number of comment expensive as buying cover online. According to the saltwater crocodiles in the area. The crocodiles are Association of British Insurers, major players such as aggressive and much larger than their freshwater WHAT’S IN Thomas Cook, Thomson and Travelcare, between cousins. As a protected species in the Northern The highlight of May was undoubtedly the them account for around 70 per cent of the travel Territory, they have amassed to 70,000 in number, ITIC (European) conference in Brighton, insurance market, which is no excuse, says whereas only 30 years ago there were as little as which brought together those involved in THIS ISSUE? Moneynet, for 3,000 in the vicinity. responding to the tsunami disaster. Five charging They are prone to attack months on from the December tsunami in ‘exorbitant boats and so the rangers South East Asia, it’s an ideal time to reflect prices’. are on high alert. There on how insurance companies, assistance REGULARS Despite single have been casualties companies and air ambulance companies trip travel cover already, however: one (as well as governments) reacted to the News 1 being obtainable fisherman was attacked in devastating crisis. At the conference, we Editorial comment 2 for very March when a 13-foot croc watched some moving footage of the tidal reasonable prices jumped into his boat and bit wave’s destructive power and listened to a Grapevine 5 direct from a him on the head! He variety of speakers who were there during Insurance matters 7 broker or online, survived with a few the immediate aftermath. It is now Air ambulance news 10 the difference in puncture wounds for his evident that there are several important Health matters 10 price that travel trouble. Statistically, fatalities lessons to be learned. The pure chaos Travel matters 12 agents charge, are not that common – the after the tidal wave struck was largely says Richard last in the area was in 1987. down to a breakdown in communication Company brief 16 Brown, What is alarming is that between different parties. Indeed, the News analysis: FBI closes in on insurers 18 Moneynet Chief Executive, “in our view, [can] only over 170,000 people, including a great number of breaking news of the incident was widely Profile 25 be accounted for by the commission that some foreign tourists, visit Kakadu National Park on an underestimated. Many organisations and World markets: Danish sizzle 26 agents are taking from the insurance company. As annual basis. It is a world heritage site covering a governments had a wake-up call about Service directory 30 usual, it is the consumer who loses out because of vast 20,000 square kilometres. New waterholes are how they needed to be better prepared travel agents’ greed.” appearing with the spread of the wetlands, allowing for large-scale disasters. Under the Hot spots 34 Mr Brown went on to remind holidaymakers that crocodiles into areas they were previously not circumstances, it is widely believed that Smile corner 34 they are not fully protected by the Financial Services known to inhabit. authorities all over the world worked as Dick’s hotline: Foreign arrests 34 Authority when buying single trip cover from travel One of the tourist spots, named Twin Falls, saw 200 hard as they could, but there was room Diary dates 35 agents, and pointed out how important it is for tourists a day in 2004, but is now closed as crocs for improvement in the way they travellers to understand the level of cover they are could be hiding in the plunge pool. organised their response. On the move 35 purchasing and to compare like with like. However, Kakadu National Park Ranger, Garry Lindner, Preparing for unknown catastrophes is Contributors 35 according to Mr Brown: “You have to ask yourself if warned: “The number of crocodile incidents has difficult, but with the correct training and a travel agent – who is more often than not only increased. We have got to be prepared on a daily by putting systems in place now, maybe FEATURES concerned with omission – actually knows what basis for an incident even though they might only the next time there’s a major disaster of level of cover is most appropriate.” occur every now and then.” this nature, the response will be better co- ITIC Euro 20 ordinated. International Travel Insurance Conference Island dangers 22 Indian and Pacific Ocean island life Will hurricanes mar Florida resurgence? ITIJ TEAM Coming out of a season south Florida tourism Florida’s tourism industry could hardly believe its Editor-in-chief: Ian Cameron officials have branded ‘stupendous’, scientists warn incredible good fortune in having such a buoyant that the forthcoming hurricane cycle, which begins in winter season – the best since 2001. With hotel Richard Forsyth Editor: Richard Forsyth June, will be abnormally active – an unwelcome occupancy in Miami Beach in the upper 90 per cent Editor Deputy editor: Sarah Lee reminder of the devastation caused by last year’s range, and some rooms on South Beach going for Editorial assistant: Leonie Bennett multiple barrage of killer storms. Report by Milan $360 a night, one hotel general manager told the Korcok Miami Herald: “This year is going outrageously well.” Designers: Eli Butler Nicki Grossman, tourism chief for Broward County – Chris Marke According to North America’s leading tropical cyclone encompassing Fort Lauderdale and Hollywood – is US correspondent: Milan Korcok forecaster, William Gray, professor of atmospheric also reported in the paper as saying: “February is going Sports tourism India correspondent: Saby Ganguly science at Colorado State University, information off the charts … We’re looking at months that are the updated through March indicates that the 2005 Atlantic best ever.” warning Legal correspondent: Dick Atkins hurricane season will be well above average in activity, Whether or not that continues into the summer Conference manager: Denise Clements with seven named hurricanes (three of them in the remains a question, to be answered, perhaps, only by With the advent of low-cost flights and the easing of intense three to five category range), 13 named the elements. travel restrictions to many countries, sports tourism is Production: Adele Brown storms, and a 73 per cent chance of at least one major Dr Gray attributed last year’s four hurricanes in one of the many travel sectors that is rapidly Production assistant: Helen Watts category three to five hurricane making landfall seven weeks to an unusual pattern of ocean steering increasing in popularity. Whether it’s travel within a Advertising sales: Jude Edwards somewhere along the US eastern coastline. currents. He also re-asserted a conclusion he and his country or travel between countries, fans of sports as David Fitzpatrick The report by Dr Gray and his research team, issued team have made previously that last year’s freakish varied as baseball and horse racing or rugby, football on 1 April, noted that at least one major storm had a events were not related ‘in any way to human- and athletics are setting of to support their teams or Finance: Pauline Lloyd 53 per cent chance of hitting Florida, and a 41 per induced climate changes’: “If global warming were countries at national and international events around Helen Parker cent chance of one hitting the Gulf of Mexico Coast the cause of the increase in US hurricane landfalls in the world. But one thing they are forgetting, Cartoonist: Chris Duggan somewhere between the Florida Panhandle and 2004 and the overall increase in Atlantic basin major according to some insurers, is travel insurance. Brownsville, Texas. hurricane activity of the past 10 years, one would “It is common for sports fans to let their enthusiasm There is also, says Dr Gray, an above average chance expect to see an increase in tropical cyclone activity get the better of them and dash off with passport in FREE SUBSCRIPTIONS FOR of a major hurricane landfall risk in the Caribbean. in other storm basins as well. This has not hand without checking their insurance,” said David TRAVEL PROFESSIONALS This forecast is based on extended range forecast occurred.” Norton, Head of Marketing at Halifax General procedures that gauge global atmospheric conditions But in anticipation of more hurricanes to come, or Insurance in the UK. and trends, and also use 52 years of past global perhaps just still licking its wounds from the $2 billion With many sports tourists jetting off to places that ITIJ analyses that determine hurricane development it paid out in claims after Hurricanes Charley, offer adventure activities such as bungee jumping, outcomes based on specific sets of measured Frances, Ivan and Jeanne battered Florida in 2004, jet skiing, skydiving and the like, travellers are being Voyageur Buildings conditions. The data is also tempered by what appears Allstate, the nation’s second-largest property and urged to make sure that they get adequate cover, 43 Colston St Bristol BS1 5AX to be the failing likelihood of a Pacific El Nino casualty insurer after State Farm, has said it will stop not just for loss of match or event tickets, but for UK developing. Periods when El Nino are present in the writing commercial insurance policies in the state illness and injury as well. Pacific tend to induce westerly wind anomalies over and won’t renew 95,000 homeowner policies. The editorial: +44 (0)117 922 6600 the tropical Atlantic that inhibit hurricane development. insurer will continue to write new homeowner advertising: +44 (0)117 925 5151 That does not appear to be the case so far this year, policies where it sees fit, however, and said it has fax editoial: +44 (0)117 929 2023 says Gray, and if that tendency is further verified in taken steps to ensure people and businesses will not fax advertising: +44 (0)117 925 2040 coming weeks, forecasts of even greater Atlantic be left without insurance, through recommending email: [email protected] hurricane activity may have to be issued in the next, 31 policies sold through their agents and other May, advisory. companies. web: www.itij.co.uk Following last year’s phenomenal four hurricanes, Could travel insurance be affected next?

International Travel Insurance Journal www.itij.co.uk

4 NEWS

Cairo violence worsens NEWS BITES! Business travellers Just weeks after a bomb exploded in a tourist bazaar in statements claiming responsibility for the latest attacks – • Insurance industry payrolls in the US increased fail on insurance the Egyptian capital of Cairo killing four people, a man the Mujahedeen of Egypt and the Abdullah Azzam by 1,700 in April to 2.257 million jobs, after a has blown himself up as he leapt off a bridge, and two Bridges. However, neither claim’s authenticity could be revised 5,700 decline in March. The March Almost one in ten business travellers do not know women opened fire on a tour bus, in this the latest in verified. The Abdullah Azzam Brigades said the deadline was originally reported as a 6,700 jobs whether they are covered by travel insurance when a wave of violence in the region. violence was in revenge for the arrests of thousands of loss. The Bureau of Labor Statistics released the travelling for their companies. This is the finding of the The two attacks, which happened on 30 April, people in Sinai after the October bombings. seasonally adjusted data on 6 May. ninth Barclaycard Business Travel Survey, which found occurred within two hours of each other, two and half Egyptian authorities have denied major militant groups that 64 per cent of business travellers have travel miles apart. All three attackers died, and nine people – have instigated a violent resurgence, but Cairo police • The European Parliament voted on its first reading insurance organised by their employer or designated four of them foreigners – were wounded in the officials say they have raised their security presence in of he proposed new directive aimed at establishing supplier; 24 per cent organise it themselves; but nine apparent revival of violence against Egypt’s tourism Cairo and other parts of the capital, including near the the first common regulatory regime in the EU re- per cent do not know whether they are covered or industry. Among the wounded were an Israeli couple, Giza pyramids. Fouad Allam, a retired general in insurance market as ITIJ went to press. More details not. Avital and Ben Tzion Smorzik, a Swedish man, Tobias Egypt’s anti-terrorism security apparatus, said there is will follow online and in our next issue. The figures show that, from their survey of 1,500 Johansson, and an Italian woman, Francesca Catelani, no way to compare the recent attacks with those in commercial cardholders in the UK, employees are along with three Egyptians. “They are in a stable the 1990s, which were led by larger, more organised more likely to organise their own travel insurance if condition in hospital,” said Health Minister Mohamed groups that have since been marginalised by a they work for a company with a lower turnover. For Awad Tag Eddin. protracted, harsh government crackdown. example, 47 per cent of employees that work for The Interior Ministry believes that the latest bombing Nevertheless, other countries are taking precautions. Mistaken travel companies with a turnover of £250,000 or less was a result of the police round up of those behind No formal warnings have been issued as yet, but organise their insurance personally, as do 30 per cent the Khan el-Khalili bazaar attack on 7 April (see ITTN foreign offices have amended their travel advice to the warning retracted of employees in companies with a turnover of 27, Cairo tourist bazaar bomb kills four). Police had area. The UK Foreign Office has changed its advice for between £1 and £5 million. This is in comparison to apparently captured two suspects that day and were visitors to Egypt, warning: “There is a high threat from The Australian foreign ministry apologised for a only six per cent that work for companies with a chasing a third, Ehab Yousri Yassin, on a highway fly- terrorism in Egypt… [Visitors] should be aware of the mistake that warned against travel to Australia’s turnover of more than £100 million. over when he jumped off, setting off the nail-filled global risk of indiscriminate terrorist attacks which could western city of Perth, saying it was dangerous. Likewise, the poll shows that employees in larger explosive he was carrying into a crowded square be against civilian targets, including places frequented Subscribers to the foreign affairs department’s email companies are more likely to rely on their employer between an exclusive hotel on the banks of the Nile by foreigners.” The country’s Foreign and travel advice received an or designated supplier to organize and the Egyptian museum. Commonwealth Office website warns that a suspect overnight advisory reading: “This their travel insurance. Head of The two veiled women who carried out the shooting terrorist in the country has escaped and that further is a message to let you know Card Issuing at Barclaycard a couple of hours later, Yassin’s sister, Negat Yassin, and attacks in Cairo ‘cannot be ruled out’. German and that Perth is dangerous at this Business, Tim Carlier, commented: fiancée, Iman Ibrahim Khamis, followed a tourist bus as Polish foreign offices have also issued warnings. “As a time of year.” “It is worrying that nearly one it headed to the Citadel, one of Cairo’s most result of the terrorist attacks in Egypt, which are aimed The reason for the Perth tenth of business travellers are prominent historic Islamic sites, then stopped and fired at foreign tourists, the Polish Foreign Ministry advises warning was said to be because unsure who has responsibility for three bullets through its back window before shooting Polish citizens who are travelling to this country to be a contractor had sent a message organising their travel insurance.” themselves, the Interior Ministry said. One of the especially careful,” ministry spokesperson Aleksander through a new mail system to Insurance, he recognises, is one of womem died at the scene, the other in hospital. Checko said in a statement. test it. the most important purchases Police have temporarily detained about 200 people German tour operators Rewe, TUI and Thomas The department also says that when travelling, and failure to get from the home villages of those responsible for the Cook said they were taking the precaution to suspend measures have been taken to cover could result in complicated attacks on Saturday. The records of the detainees are day trips to Cairo in the wake of the violence. prevent this kind of mistake financial implications and personal being examined for any connections with local terror We can only hope that the violence seen in April does happening again. difficulty. networks, police said. not escalate further. Ron Buckley, President of the “It is important for employers,” he These latest attacks have increased Tourism Council of says, “to ensure their staff are a fear in the country that militants Western Australia, was aware of company policies.” are launching a new round of angry at the mistake, violence in Egypt, after a bloody saying: “Perth is one of campaign by Islamic extremists in the safest cities in the world at the present the 1990s. The violence had been time, as far as we are concerned. It’s quite suppressed, and tourism was seen alarming that [the department of foreign Protect or bust to be recovering, until last affairs] doesn’t have these advisories October, when bomb blasts in checked by senior management before they As the ninth European airline since September 2001 Sinai killed 34 people. are released to the wider audience…It failed, the UK travel industry rushed to urge the Two militant groups posted Web makes Australia look absolutely stupid.” government to hurry through legislation to protect airline passengers’ cash. Midlands-based airline Duo collapsed at the beginning of May, stranding more than 1,200 passengers abroad when it suddenly ceased trading. Fears are now rife that without further legislation and in the current climate of fierce competition between no-frills carriers, more airlines could fail, which could lead to many thousands more travellers being left stranded and out of pocket. The Civil Aviation Authority (CAA) administers the Air Travel Organiser’s Licence (ATOL), which tour operators must hold to ensure their customers are refunded or flown home in the event of operator failure. However, with 40 per cent of passengers now booking flights directly from the airlines, especially over the Internet, many people are not covered in the event of airline failure; unless, of course, they have purchased adequate travel insurance cover or, in some cases, have purchased the flight on their credit card. “The law hasn’t kept pace with how people book holidays now,” said a spokesperson from the Association of Independent Tour Operators (AITO). “Most of Duo’s customers will be shocked to find they have lost their money – the public thinks bonding covers everything. We have been lobbying the government to bring airlines into the established bonding scheme for the past 18 months.” So, with the CAA and AITO on their case to extend ATOL protection to airlines, the government is being pressed hard to pass legislation that would dissolve some of the inadequacies of current consumer protection. Surely those left stranded recently by Duo, as well as the 52,000 people holding forward bookings with the airline, along with any other passenger that thinks twice about travel cover, would not mind paying the estimated £2 premium on the cost of a return flight.

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

GRAPEVINE•GRAPEVINE•GRAPEVINE•GR APEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE Customer focus Innovation spurs India G GRAPEVINE Latest research from Mercer Oliver Wyman, the The insurance sector in India has already recorded a the year with a premium income of approximately financial services consultancy, suggests that the UK’s premium growth rate of around 15 per cent in Rs890 crore, followed closely by Bajaj Allianz property and casualty insurers have destroyed more 2005, and the changing face of the industry looks set General Insurance, which posted premium income Hop-on flights than £3 billion in shareholder value over the past to increase revenue for insurers even further. of Rs855 crore. ten years through poor underwriting. Intense competition from private insurers and the With the operating environment in the country Passengers on board an easyJet plane were Anthony Stevens, Managing Director at Mercer, said: arrival of brokerage firms into the market have all becoming increasingly competitive and, hence, the amazed as they watched a man trying to stop the “The general industry consensus is that the market lead to increased pressure on the state-owned profitability of the insurance companies coming plane as it prepared to take off from Nice airport has learnt its lesson and won’t repeat past mistakes, insurance companies. under further pressure, insurers are recognising the on its way to Luton in the UK. The man, but a deeper analysis reveals a less optimistic It is still these large state-owned corporations that need to improve their underwriting practices, prune believed to be in his forties, is said to have outlook.” The new report suggests that the property lead the way, however, with the New India costs and improve claims management and service managed to get through security and run up to and casualty insurance sector is likely to be one of Assurance Company recording the highest premium standards. They also, according to Minna Kumar of the plane. The Daily Mail newspaper quoted one the slowest growing in the world over the next ten in the non-life sector – Rs5,107 crore – for the last Sify Finance, need to innovate. man as saying: “The man came across to the years – mainly due to companies’ lack of a strong financial year. This represents growth of around four And they are. Both private and the state-owned plane bold as brass. He had his coat over one focus on the customer in the business they write. per cent, which has allowed the company to retain companies are offering innovative products – arm and was desperately waving a boarding pass Past underwriting performance, according to the its leadership by a wide margin. Among the private especially travel insurance products, says Kumar. in the other as if to say ‘open up – I want to get report, was worse than generally realised. On insurers, ICICI Lombard General Insurance closed Sports tourism, exclusive holiday cover and study- on!’ I thought maybe they were going to let him average, £100 of capital invested in an abroad programmes have all been thought of on. But he just stood there while the engines underwriter would have destroyed £2 per year and policies exist to cover seemingly any type started up. It was so dangerous.” over the past ten years, the report says. It also of travel the Indian population may decide to The funny thing is: the man, who according to says that investment returns have been mostly embark on. The use of the Internet for selling some witnesses was drunk, was actually chasing non-existent for the industry once adjusted for these travel insurance policies has also been the wrong plane. He was actually meant to be the economic capital costs of the risks taken. adopted by many private insurers, who already flying to Gatwick! However, the news for companies involved in have tie-ups with travel agents and brokers. distribution is slightly better as they are thought to It is precisely such innovation, not just in be able to create entry barriers for independent product design, but in sales channels, that rivals because they ‘own’ the customer explains why the private companies are gaining Toilet humour relationship. Saga’s move into financial services the most ground in this particular sector. It is and Admiral’s creation of various brands are cited now believed that the major private A blocked toilet as good examples for ‘customer relationship companies have captured almost 50 per cent recently caused economics’. of the estimated Rs200 crore travel insurance an evacuation of The message is – insurers, retain your strong market, although this proportion is expected to Hobart Airport in focus on customers! grow. Australia, when staff mistook the smelly toilet for a gas leak! Passengers and Growing consumer Freak wave coverage More travellers airline staff were evacuated from concern In April, passengers on board the 965-foot-long than in 2001 the Qantas cruise ship Norwegian Dawn endured a freak 70-foot domestic airport as a precaution. However, it was Insurance providers have reported an increase in wave that shattered two upper storey windows and The UK travel data company OAG has released a discovered that the foul smell was actually coming calls from customers concerned with the level of flooded over 60 cabins, injuring four passengers. report stating that over 2,270,000 flights were taken from a blocked toilet and being drawn into the financial default coverage their travel policies offer. Out of the 2,500 passengers on board, 100 had worldwide in April – 45,000 more than in April 2001, air-conditioning unit, rather than being anything This comes in the wake of concerns over the future purchased travel insurance plans from insurer Travel just before the world trade centres were brought dangerous. “It was largely staff [who were of several struggling airlines. Guard. According to the insurer, the affected down by terrorists in New York. The success and evacuated], it was a quiet time and there were “We have been receiving more and more phone passengers with comprehensive coverage could be growth of budget carriers and the opening up of only a few passengers involved,” Hobart Airport calls from consumers concerning the financial default entitled to claim on their China are strong factors to account for Chief Executive, Wayne Tucker, said. “I can’t help protection found in travel insurance and whether or travel insurance in this this. giggling about it really, as it wasn’t potentially not they can be protected if their trip is cancelled or unusual case. Duncan Alexander, Managing Director serious.” interrupted because of an airline bankruptcy,” said Dan McGinnity, Travel of OAG Business Development, said: John Cook, President of US online travel insurance Guard spokesperson, said: “The low-cost phenomenon continues provider Quoteright. “We consider this a to break all records.” Low-budget In today’s delicate financial environment, Mr Cook weather-related incident, airlines are offering 19 per cent more Cold night says, there are several ways to protect the cost of which is one of the many flights than last year, and over 10 per Arca resort is going to be more careful about your flight or holiday – from checking your situations covered.” cent (equivalent to 300,000) of flights checking ski lifts at the end of a night after two insurance plan for a list of airlines or travel After the wave struck, the for April worldwide will be made by skiers spent the night on a ski lift in freezing companies it might not cover in the event of failure, ship was diverted to low-cost airlines. temperatures. Apparently, staff members to making sure you purchase insurance immediately Charleston to be repaired, Increase in traffic to Europe, the Middle switched the machinery off and went home, after purchasing your holiday or flight and checking delaying its arrival in New East and Africa has helped make 2005 a leaving two Parisian men, who were discovered the default coverage period – and so consumers York. busy year. on the ski lift the next day and were transported can do much to protect themselves from possible Claims are expected to be With the negative affect that SARS, the to the local hospital in Chambery, suffering from travel disruptions due to airline bankruptcies or filed for lost and damaged Iraq war and fuel price increases have hypothermia.

strikes. baggage as a result of the also had on travel, this is seen as •G incident. positive news indeed. RAPEVINE•GRAPEVINE•GRAPEVINE•GRA PEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•

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

Travel insurance on the up US over $1 billion a year on trip insurance

The latest survey of American Express’s travel insurance year, with Ms Field explaining that ‘travel is more A survey conducted by Avalon Actuarial Consulting policies, although it also transpires that sales of online customers has revealed that holiday cover will be high accessible and fluid than it has ever been. Consumers on behalf of the US Travel Insurance Association travel insurance have rocketed, nearly doubling in on people’s shopping lists this year after it was found are just as likely to pop over to New York for the (UStiA) concluded that Americans spent in excess of the two-year period between 2002 and 2004. that the number of international and domestic trips weekend to take $1 billion on travel Although over 80 per cent of policies sold were per planned for this year have increased by 7.5 per cent. advantage of the strong insurance last year. The trip travel insurance plans that were inclusive of More than 10,000 British American Express travel pound’s buying power as Travel Insurance Market cover for trip cancellation, it was discovered that insurance customers took part in the poll, which they are to jet off to Survey, the first of its kind, there is a widespread general misunderstanding that revealed that the number of holidays taken in 2005 Dublin for lunch traveling revealed that 17 million credit cards cover trip cancellation. could rise by as much as 15 per cent on 2004. with a discount airline travellers purchased travel Jonathan Ansell, UStiA President commented: "In the Marketing manager at American Express Insurance ticket.” insurance from UStiA uncertain months following the terrorist attacks, travel Services, Joanne Field, said: “This is the second year This new frequency of member companies in insurance played a vital role in restoring travellers' running we have seen a rise in consumer confidence travel, it was concluded, 2004: UStiA accounts for confidence. As a result, we have seen an unprecedented with more travel being planned in this year than the could make annual policies around 90 per cent of the surge in the awareness of travel insurance. The UStiA last. Indeed, this is borne out by our own insurance a better buy. However, US market. estimates that 30 per cent of leisure travellers taking business with overall sales for the start of this year the level of cover is an The survey found that cruises, air/tour vacations and international trips bought up 21 per cent on this time last year.” important aspect to look travel agencies appear to travel insurance in 2004. This is a significant increase from The company also indicated that sales of their annual at by those purchasing any sell more than 35 per the estimated eight to 10 per cent of travellers buying travel insurance cover have increased over the last kind of travel policy. cent of travel insurance travel insurance before 9/11.”

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

International Travel Insurance Journal www.itij.co.uk INSURANCEMATTERS 7

Aon 9/11 claim India too slow for treaty reinsurers rejected Though India is now an active playing field for the gap is much more – as much as 15 per cent in global insurance companies, the country’s some cases – because the reinsurance treaties used information disclosure efficiency falls considerably historical data, instead of actual data,” Pranav Patel, short of international standards. This is causing an insurance industry consultant, told ITIJ. This, concern among international treaty reinsurers, according to Patel, works to the disadvantage of who are demanding more efficient availability of treaty reinsurers since they end up provisioning information for renewal of their annual treaties more funds than necessary. with local counterparts to reduce the gap between The answer lies in better information technology the provision for claims and the claim amounts systems. According to Patel, India does have some of actually disbursed. From Saby Ganguly in Mumbai the world’s best IT systems, which can generate required data within the timeframe norms preferred Treaty reinsurance is an automatic reinsurance by treaty reinsurers, but the experience to generate agreement between the ceding insurer and the the required data is lacking. reinsurer by which the reinsurer is bound to accept “The problem is more serious than it looks: if the all risks ceded to it, usually for one year. Treaty treaty reinsurance companies refuse to sign up reinsurance contrasts with facultative reinsurance, treaties, there will be disaster in the industry as which is a reinsurance arrangement by which insurers will not have funds to settle all claims,” says individual risks are offered by the ceding insurer to a Swapan De, General Insurance Consultant. “It is reinsurer, who has the right to accept or reject each good that the international treaty reinsurers have not risk. set a deadline for faster availability of information, but Travel and other non-life insurance companies it would be advisable for the Indian companies to set reinsure business both on the annual treaty basis as their data collection and dissemination systems in top well as the facultative basis for large risks. While gear before a deadline catches them by surprise.” facultative reinsurers can reject covers if the Meanwhile, IRDA – the insurance regulator – has reinsured party is not charging an adequate rate, pulled up two leading players, New India Assurance treaty reinsurers are bound by annual contracts. Company and National Insurance Company, for not In the past, treaty reinsurers were happy accepting submitting premium data for January even by April. contracts without going into the nitty-gritty, but times “The current year’s business numbers have not were different then. Today, margins have narrowed been furnished by the two insurers. They have been as companies are paying out more commission, asked to explain the reason for non-submission, Irda extending special discounts and cross-subsidising tariff has said in its latest monthly journal. This is the first A UK judge has rejected a suit by insurance broker business with non-tariff business. This makes it time in the last two years that the two public sector Aon claiming that 169 of its employees were on a necessary for the treaty reinsurers to bring insurers have failed to comply with IRDA’s rules. As a business trip to New York when they were killed provisioned claims ratio closer to the actual ratio. result of the non-submission of data, IRDA could not attempting to escape the World Trade Center According to industry sources, the claims ratio compile the general insurance industry’s aggregate attack. should not be more than five per cent. “But in India, data for January 2005. The claim could have resulted in massive insurance payouts running into millions, as the families of the deceased would have been able to receive additional money from Aon’s travel accident policy if Lloyd’s threatens to use penalties the employees had been determined to be on an ‘authorised business trip’ whey they died. However, Underwriters who fail to tackle uncertainty over the ensure that we make the progress we need. We will Judge Peter Cresswell ruled that the 169 workers terms of insurance contracts could face penalties, mandate processes or impose penalties on people were not travelling for the purpose of furthering Lloyd’s Chief Executive Nick Prettejohn has warned. who don’t adopt the processes once we have Aon business so could not be covered by travel The move follows the proved that they work. I accident insurance. statement last December by don’t want to be in the In the cases of seven other Aon employees from the Financial Services position where we have a the firm’s other offices who died at the Trade Authority (FSA) that they workable solution and we Center on 9/11, the judge ruled in favour of the would give insurers and are still running the risk of a claim. Those families received $6.4 million under brokers two years to come solution being imposed by the company’s business travel insurance policy. up with proposals for the FSA.” ensuring the exact terms of However, although cover are agreed before a Prettejohn has embraced policy becomes effective. the FSA’s proposals for This could include new rules contract certainty, he is APRA tightens or forcing insurers with poor believed to be unwilling to systems to hold capital. work on a code for the control of Oz Prettejohn said: “We will use the power to mandate disclosure of insurance brokers’ commissions, which insurers selectively over the next 18 months if necessary to the regulator has said it will support.

The Australian Prudential Regulation Authority (APRA), which regulates the country’s insurance New rules from the OECD industry, is proposing tighter scrutiny of the financial status of individual companies. The Organisation for Economic Co-operation and This comes as US, UK and other European The move follows the collapse of HIH, which was Development (OECD) has unveiled tough new regulators are probing insurers’ use of finite Australia’s second largest insurance company, in governance guidelines for insurers, in a move reinsurance contracts, which combine insurance and March 2001 under a mountain of debt. The APRA designed to protect policyholders and investors from financing. The regulatory investigations have also received widespread criticism after a Royal ‘scandals and financial irregularities’. The move, prompted some insurance brokers to abandon Commission recommended tightening the scrutiny naturally, comes in the wake of the Spitzer probe of controversial bonus commissions, alter their business of the industry. Reports suggest that the Insurance the insurance industry, as companies on both sides models and review the way they handle conflicts of Council of Australia (ICA), the industry’s of the Atlantic come under intense scrutiny over interest. “Recent scandals have revealed huge representative body, has cautiously welcomed the various governance issues. financial irregularities and highlighted the need for the move after initial concerns about the increased cost The OECD has already published global principles insurance industry and its watchdogs to improve burden of the regulation, especially for smaller concerning corporate governance for listed governance standards,” the OECD said. companies. companies, which have been used as a benchmark However, the news guidelines, says Flore-Anne ICA spokesman Rod Frail stated: “ It would appear for national codes of conduct, but these only focus Messy, spokesperson for the OECD’s insurance on an initial look that the scope of the information on the protection of investors in insurance committee, “will serve to increase the pressure on required will be the same but the level of detail that companies, and not policyholders. The new regulators and companies to strengthen governance will be required for smaller companies will be less. guidelines call on insurers to comply with existing to protect policyholders and investors.” That’s a positive.” regulations, but also ask them to implement This move by the Paris-based think-tank, which APRA is proposing that actuaries produce an annual ‘additional internal checks and balances to improve represents the world’s leading 30 industrialised financial condition report on each general insurer in integrity’. The 12-point road map includes proposals nations, will pile the pressure onto national an effort to upgrade the regulatory standards for to clarify the structure and responsibilities of the regulators – who are already attempting to deal with insurers. The reports would be available to the board, ensure that all insurers have strict internal shortcomings in the governance of stock market- company’s board, senior management and APRA, control and reporting systems and have appointed listed insurers – to widen their remit to include but not to the general public. external, independent auditors. mutual insurers and reinsurance firms.

www.itij.co.uk International Travel Insurance Journal 8 INSURANCEMATTERS NEWSWIRE Australia’s P/C S&P reports negative Swiss outlook et income for the Allianz Group increased by nearly €1.2 billion in the first quarter of 2005. industry Standard & Poor’s Ratings Services (S&P) has made respond to the challenges of a continued complex N The increase amounted to nearly 33 per cent it clear in a new report that it maintains its negative environment’. Underlying profitability in 2005 is compared to the adjusted figure for the previous year According to Standard and Poor’s (S&P), the rating outlook on the Swiss insurance sector for both likely to stabilise, it believes, and industry risk for the and resulted from improvements in operating business. agency, the Australian property and casualty industry property and casualty and life. The report, entitled non-life market is considered moderately low. Helmut Perlet, a member of the Allianz Board of is doing ok, showing good profits despite rate Swiss Insurance Market Portfolio Review, stated: “The In addition, S&P views positively the introduction of Management, said: “We’re well on track to reach our reductions seen in some areas of the sector. negative outlook indicates that potential for a new Swiss Insurance Supervisory Law, which is targets for 2005.” “The softening insurance cycle downgrades expected to come into effect next year. The law is has entrenched itself in remains, and aimed at improving insurers’ risk management, roperty and casualty revenues at AXA has commercial lines in Australia. is in line with increasing security, and expanding corporate increased by two per cent to €5,903 million. Premium rate reductions the current governance. With the sweeping allegations of bid P Commercial and personal lines improved by two between five per cent and 20 per outlook for rigging in the US, and with the kickback being felt per cent, while other lines saw a seven per cent cent have been recorded across the majority now in Europe, the law will also reinforce increase driven by UK Health. Elsewhere, various lines of commercial of the transparency and extend customer protection. “The International Insurance revenues increased by six per business renewed in the first insurance law,” says S&P “opens the way to a more risk- cent to €1,772 million, with AXA PE up eight per quarter of 2005,” S&P’s report companies oriented approach to determining capital cent. noted. However, “despite these that Standard requirements, via the introduction of a new Swiss rate reductions, policy terms and & Poor’s Solvency Test.” NG Group has announced a first-quarter net profit conditions remain strong, and the covers rise of 72 per cent to €1,941 million, which extensions of cover and reduced interactively I boosted share prices from €0.54 in the first excesses, apparent in the last in quarter of 2004 to €0.89. “ING Group made a softening cycle, have not yet Switzerland.” strong start to the year. All six business lines appeared in the local market. Insurance Insurers call for contributed to the sharp increase in first-quarter net Reported profitability remains companies’ profit,” stated Chairman of the Executive Board, very strong for the industry for restructuring TRIA extension Michel Tilmant. results up to December 2004, measures, and, importantly, many insurers show continued along with increased capital market stability, have led urich Specialties London Limited (ZSL) has had signs of lower claims frequency across many lines of to significantly improved earnings and capitalisation in Terrorism, sadly, remains a very real threat in Z its financial strength rating downgraded to B++ business and, in particular, liability lines.” 2003 and 2004, however, removing some of the today’s world and, according to Aon’s recently (Very Good) from A (Excellent) by A.M. Best Co. The S&P said it “believes that premium rates in Australia pressure on the industry after two years of published 2005 Terrorism Risk Map, it has made the downgrade reflects the diminished importance of ZSL currently remain at a profitable level, and are likely ‘significant negative pressures’. This upturn has been world a much riskier place in which to do business. within the Zurich Financial Services Group as a whole. to continue to do so for the remaining part of this reflected in S&P’s ratings, so is not expected to lead Whether the US government decides to extend the fiscal 2005 year.” to widespread upgrades. Conversely, however, Terrorism Risk Insurance Act (TRIA) beyond the end XA and FINAXA have announced their intention The agency also suggested that personal lines rates failure to meet expectations could have ‘negative of this year or not, terrorism cannot be ignored. to merge following the AXA Management Board remain robust and are unlikely to see premium rate rating implications’. The Act was passed after the terrorist attacks of 11 A meeting last month. The move will enable AXA reductions. “Increasingly intense competition, S&P also noted that Swiss insurers “have improved September 2001 in the US, when insurance to directly own its brand, which is currently the however, will limit growth in this segment as the focus of their business models, significantly coverage for terrorism largely disappeared. property of FINAXA and will cost an annual fee of insurers find it increasingly difficult to write new improved asset and risk management capabilities, cut Congress passed TRIA in 2002 to ensure that approximately €6.6 million in 2005. It is expected business. Personal lines claims frequency and costs, and ‘de-risked’ their balance sheets.” business activity did not materially suffer from a lack the merger will be presented to both AXA and severity has reduced over time, given generally dry Resultantly, states the ratings service, most players in of available terrorism insurance and to give the FINAXA shareholders by the end of the year. weather conditions, lower crime rates and initiatives the market were able to achieve the better year-end insurance industry time to develop mechanisms to such as reduced speed limits,” it said. results in 2003 and 2004 and are now ‘better set to provide such insurance after the Act expires. “If .M. Best Co. has affirmed the financial strength TRIA does expire at the end of this year, the A rating of B++ and the issuer credit rating of aggregate capacity of the stand-alone terrorism ‘bbb’ for The Egyptian Reinsurance Company. market is going to come under severe strain. The outlook for both ratings is stable. Businesses need to explore alternative options for mitigating and transferring their terrorism risks now,” IG has lost its position as the biggest foreign says Aaron Davis, Vice President of Aon’s Property insurer in China to Italy’s Generali, which sold a Syndication Group in the US. Meanwhile, however, A record $2.4 billion group policy in the country insurers are lobbying the government for this year. This is the first time AIG has lost its top reauthorisation of the Act. ranking in more than 12 years. According to Aon’s 2005 Terrorism Risk Map, which assesses the level and nature of terrorist threats rch Insurance group, a division of Bermuda’s around the world, 31 countries have received Arch Capital Group Ltd, announced its entrance higher risk ratings than last year – almost half of A into the Canadian insurance marketplace at the which are in Western Europe. The Netherlands, recent RIMS Conference in Philadelphia, US. Arch has Germany, Belgium and Denmark have all been appointed Sheldon Rankin, former Chairman and CEO marked as at higher risk due to increased Islamic of Marsh Canada, to head its operation. extremist activity. For the US, where 27 terrorist incidents were oyal & SunAlliance has revealed in its annual recorded in 2004, the risk rating of ‘elevated’ report that it is considering dropping the use of remains unchanged. Elsewhere, participation in the R share options in its pay schemes for top US-led Iraq coalition has increased the risk of executives. According to the report, chief executive terrorism in countries including Australia, Poland and Andy Haste was paid £1.6 million in salary and Estonia. The concern is that anti-Western sentiment bonuses last year, an increase of £300,000 on 2003. will be taken advantage of by international terrorist organizations like Al-Qaida, who could launch EGON N.V., the Dutch financial service giant, terrorist attacks in these countries in the future. has completed the sale of AEGON Seguros Recent terrorist attacks at such sites as a British A Generales, its general insurance subsidiary in theatre and school in Qatar and the Australian Spain, to the Italian mutual insurance company Reale embassy in Indonesia, as well as a thwarted plot to Mutua Group for a sale price in the region of €250 bomb the Italian embassy in Lebanon, all highlight million. the threat to the business operations of such countries and their staff. unich Re’s chairman, Nikolaus von Bomhard, “Terrorism is not a new threat and many announced ‘an excellent result’ of €1.8 billion international businesses have, to date, been rightly M in 2004 at the world’s largest reinsurer’s preoccupied with the risks facing their operations in recent annual general meeting. The board also the Middle East, Africa and the Gulf. Although approved a dividend of €2 per share, a 60 per cent companies do need to be aware of the global increase over 2004. picture, the 2005 map highlights the need for vigilance in so-called ‘safer’ European countries,” arsh & McLennan, parent of the biggest said Paul Bassett, Executive Director at Aon’s Crisis insurance broker, saw profits fall by 70 per cent Management division. “Companies must acquire as M in the first quarter due to the elimination of much knowledge as possible about the risks they certain bonus commissions and a slowdown in new face…in order to maximize the human and financial business. Michael Cherkasky, Chief Executive, impact of such attacks. Businesses can then assess declared Marsh had been ‘badly bruised’ by the how best to allocate their expenditure on insurance investigation into bid-rigging launched by New York and counter terrorism risk management procedures Attorney General Eliot Spitzer. effectively.”

International Travel Insurance Journal www.itij.co.uk INSURANCEMATTERS 9 NEWSWIRE onverium, the Swiss reinsurer, has reported a Mapfre expands in Profitable underwriting returns $61.8 million loss in the first quarter, which C surprised investors expecting a modest profit. Brazil According to consolidated industry data provided conditions over the past two years have played a The main reason given for the setback was the from various industry groups, the US property and major role in the industry’s outstanding underwriting decision to settle early some reinsurance contracts Spain’s leading insurance group Mapfre has casualty (p&c) insurance sector has recorded a 29 performance, says A.M. Best. Insurers, it warns, will with other reinsurers, resulting in a $38.7 million confirmed its intentions to expand its per cent gain in net income and a record surplus need to continue their prudent underwriting charge. international business by taking control of Brazil’s level for 2004, reinforced by its first annual practices as rates soften, however. “Improved Nossa Caixa Seguros y Previdencia. By David Ing underwriting profit in 26 years. The multi-million- profitability and the growth in capacity as measured urich, one of Europe’s biggest insurers, has said dollar question, however, is whether – with by surplus seem to have sparked increased it is to continue to improve profitability. Net An expected rival bid from the US failed to premium growth now slowing considerably – p&c competition that threatens to undermine Z profits rose 21 per cent year on year to $779 materialise as Mapfre’s existing Brazilian subsidiary, insurers have had their moment. underwriting results going forward,” said John Kollar, million, while business profit climbed 18 per cent to Mapfre Vera Cruz, secured its own sealed bid at The US p&c Vice President for $1.03 billion. A.M.Best says that ZFS ratings remain auction for 225.8 million reales (some €73.8 industry showed Consulting and unchanged following the group’s announcement. million). improved Research at the ISO. The Sao Paolo state government had offered 10.2 operating results And adding to the L Capital Ltd has reported slightly lower profits million shares – equivalent to half the company’s in 2004 for the concern, investment for the first quarter of 2005, as it announced a stock – at a minimum price of 154 million reales. second straight firm Cochran, X net income of $442.9 million this year Nossa Caixa Seguros y Previdencia is the insurance year, reporting Caronia Securities compared with $4452.2 million the previous year. arm of the Nossa Caixa bank, which is run by and $38.7 billion in LLC issued a severe handles the administrative accounts for Sao Paolo, net profits, up warning about the viva is looking to release £4.5 billion in its the main centre of Brazilian industry and the from $30 billion in p&c sector’s ‘orphan estate’ (unclaimed pots of money built country’s richest and most populous state. 2003. Nominally, prospects, which it A up over decades) in order to free up surplus The deal includes a 20-year exclusivity clause on last year’s net sees as quickly assets. No decision has been made as yet, however. selling insurance policies through the bank’s network income is the deteriorating, despite of 512 braches, all bar seven of which are within highest-ever the strong omputer Sciences Corporation (CSC) has won a the state of Sao Paolo. recorded for the performance last year. $17.6-million software and services contract Analysts had been waiting for a positive move from sector – just 10.6 It predicts US p&c C from China Pacific Property Insurance Company. Mapfre after a cash injection of 500 million was per cent below 1997’s all-time high when adjusted insurers will see ‘dramatic declines in core earnings China Pacific will use the software to automate a approved last year that included almost 190 for inflation – according to the Insurance Services power’ beginning as early as this summer and into number of business processes, including customer million to cover future acquisitions. The company Office (ISO) and the Property Casualty Insurers 2006. service, billing and collection, underwriting and claims said at the time that it was particularly interested in Association of America (PCI). Others are more optimistic, however. A new study by management. expanding its business in Europe and Latin America. The most impressive achievement, they say Conning Research and Consulting, Inc. predicts the Mapfre’s willingness to pay 46 per cent over the however, is the collective net underwriting profit of p&c industry can look forward to another year of CE has reported that its net income for the first minimum asking price for Nossa Caixa’s insurance over $5 billion – a massive improvement on 2003, underwriting profits, assuming normal catastrophic quarter ended 31 March was $433 million, arm follows a frustrated bid in April to gain control when the industry suffered an underwriting net loss losses of around $14 billion. “Despite a softening A compared with $477 million for the same of Real Seguros, the Brazilian subsidiary of ABN of $4.9 billion. This impressive gain, the first in p&c market, we fully expect the underwriting profits of quarter last year – a three per cent drop. Operating Amro. net underwriting in almost 30 years, is also a drastic 2004 will continue at least into 2005,” says Stephan earnings, however, increased by seven per cent for the The group’s share of the Brazilian market is only improvement on 2001, the industry’s worst year on Chrisiansen, Director of Research at Conning. “Of first quarter to $441 million, compared with $411 around four per cent. But analysts believe there is record, when an underwriting loss of $53.9 billion course, despite the stunning performance of personal million for the same quarter a year ago. plenty of room for growth given Brazil’s fast- was reported, says A.M. Best. This is all the more lines…softening market conditions will ultimately begin expanding economy. impressive considering the heavy catastrophe claims to chip away at the industry’s record performance. urich has announced today that Zurich Insurance for the hurricanes suffered during 2004. Our analysis suggests that 2006 will be the first year of Ireland Limited (ZIL) will become a EU-wide risk Strong pricing and restrictive policy terms and deterioration.” Z carrier for Global Corporate business, with the ability to operate through a branch network under the EU Non-Life Insurance Directives. ZIL will specialise in Disclosure quality up offering insurance cover for cross-border risks and related services to European corporate customers. A group of US life and property and casualty insurance and reinsurance companies, the Group of -flex solutions, a leading provider of technology North American Insurance Companies (GNAIE), solutions to the global financial services industry, has made it known that they endorse the efforts of i has entered into a strategic alliance with Castek the International Association of Insurance Software Inc., a Toronto based provider of insurance Supervisors (IAIS) to develop high quality disclosure systems for the global property and casualty (P&C) standards. insurance industry. “High quality disclosure standards assist companies, regulators and key stakeholders in better .M. Best Co. has affirmed the issuer credit rating understanding operating performance and in making A (ICR) of ‘bb+’ and the debt ratings of Toronto- more informed business and investment decisions,” based Fairfax Financial Holdings Limited. At the the GNAIE said in a statement. The GNAIE also same time, Best affirmed the financial strength rating commented that the IAIS draft standard does not of ‘A-‘ (Excellent) of Crum & Forster Insurance Group, recognise the differing investment practises of life Fairfax, New Jersey-based subsidiary, and Seneca and non-life insurers based on the diverse products Insurance Group of New York. Best also affirmed the they sell, i.e. long-term products, such as life financial strength rating of ‘B+’ (Very Good) of the insurance and annuities, and products which have Texas-based TIG Insurance Group. either short-term or long-term loss development patterns, such as fire policies verses medical tandard & Poor's has placed its ‘B-‘ long-term malpractice. counterparty credit and insurer financial strength S ratings on the Russian insurer Neftepolis Insurance Co. LLC (Neftepolis) with negative implications following cancellation of its merger with Russian gas company OAO Gazprom. No PICC crisis

NG, the Dutch insurance company, has reported PICC Property and Casualty has revealed poor pleasing results for Q1 of this year, as the group's results for 2004, prompting a near eight per cent fall I net profit rose 72 per cent to €1.941 billion in its shares. However, China’s biggest non-life ($2.44 billion). The company's announcement noted insurer has demonstrated that there is no crisis at that all of its business lines had contributed to the the company by announcing plans to expand its growth in profits. operations overseas. “Our goal is to become a diversified and onverium has announced a $61.8 million loss for international company,” stated Tang Yunxiang, PICC C the Q1 of 2005 and a pre-tax operating loss of Chairman. The company, which listed in Hong $47.8 million, compared to a $77.9 million profit Kong in 2003, saw a drop of 85.7 per cent in its net in the first quarter of 2004. Gross premiums written in profit for 2004 to Rmb208 million (£25.4 million) Q1 2005 (which includes January treaty renewals) due to lower underwriting profits, large investment were $717.5 million, compared to $1.3836 billion in losses and higher claims. Following the news, the same quarter of 2004, a 48.1 per cent drop. The Morgan Stanley downgraded PICC, in which US- company has shrunk substantially over the past year, based AIG has a 9.9 per cent stake, from equal- however, and S&P now rates Converium as ‘BBB+’. weight to underweight due to the poor performance of China’s stock market.

www.itij.co.uk International Travel Insurance Journal 10 AIR AMBULANCENEWS SPONSORED BY AIR AMBULANCE SPECIALISTS, INC. PHONE +1 (720) 875 9182

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Patient safety is, of course, top priority on an air rescue or repatriation mission, so it is with this principal in mind that Cholera outbreak Avian flu numbers DRF (German Air Rescue) has developed and recently confirmed The World Health Organization is updating its table introduced a patient safety showing cumulative numbers of human cases of information system called An outbreak of cholera has been declared in H5N1 avian influenza broken down according to PaSIS, together with TüPASS, Makurdi in Benue State, southeastern Nigeria. phases in the outbreak, which began in December the patient safety and Officials have so far reported that seven people 2003. It is now available on their website. simulation centre based in have died in the past two weeks, but locals say the The Ministry of Health has amended numbers for Tübingen in Germany. real death count is nearer 100. Vietnam, where the vast majority of recent cases PaSIS is an anonymous incident Cholera is an intestinal infection caused by poor have occurred, in line with case counts provided reporting system (IRS) that sanitation and drinking dirty water. Its symptoms are during late April and May. Since the third wave of helps the not-for-profit severe diarrhoea and vomiting, leading to infection began in Vietnam in mid-December 2004, organisation to detect the dehydration. 49 cases have been reported. Of these cases, 17 cause of critical incidents that The Nigerian government has sent emergency were fatal. The most recent case was reported to happen during rescue missions. health teams the ministry on 17 April. DRF can, thus, identify room to Since January 2004, when human for improvement and develop solutions. For reporting sheet – completely anonymously – either concentrate cases of H5N1 avian influenza example, crew-members might have had different online via a safe Internet connection or via email, on quick oral were first reported in the current ideas on how to treat a patient, but did not have the which goes directly to TüPASS. “It is the topic that is rehydration outbreak, 97 cases and 53 deaths chance to talk about it during the mission; or a crew- important, not the person who reported it,” therapy to have been reported in Vietnam, member may have realised that the patient commented Dr Gerson Conrad, responsible for save lives, and Thailand and Cambodia. Vietnam, monitoring system device could have been in a medical training at DRF and the development of also provide with 76 cases and 37 deaths, has better position; or duty hours for flight crew were PaSIS. At the independent reporting centre, TüPASS, clean drinking been the most severely affected miscalculated. Any such incidents, but also positive reports and data are sorted, analysed and further water in an country, followed by Thailand occurrences, can be reported with the system. action is formulated in order to improve procedures, attempt to with 17 cases and 12 deaths, and Any crew-member can enter an incident on a PaSIS as well as logistics and communication between stop the Cambodia with four cases and crews – all vital to patient safety. This is the main cycle. four deaths. focus of the new system. Pilots already have a reporting system for technical matters, but this new Netcare joins procedure is predominantly for incidents affecting forces with Egres patient safety. Celebrity sun guide A recent survey by charity Cancer Research has cancers in the UK, killing around 1,700 people in the Netcare 911 has recently acquired Egres Medical shown that more than 70 per cent of people in the country each year. Developed by the World Health Services, a private air ambulance company with Joining forces in UK, when questioned, do not know what the UV Organization, the UV Index is a way of describing the multiple international and local clients, operating out Index is, despite its frequent appearance on TV maximum strength of the UV radiation from the sun of Lanseria Airport in Johannesburg. The deal is set Africa weather forecasts and websites, and it being an on a particular day, and it is a more accurate indication to substantially boost the capabilities of the Netcare important indication of when to stay out of the sun of the potential for sunburn than the temperatures 911 aeromedical division. South African-based Netcare 911 has announced its to prevent the risk of skin cancer. forecast each day. According to Netcare 911 Chief Executive Officer acquisition of Egres Medical Services, a private air To help people understand what the UV Index The Index ranges from one (the lowest) to 20 (the Dr Ryan Noach, the Netcare 911 aeromedical ambulance company with international as well as means to them, health and beauty retailer Boots and highest). However, it is rare for the Index to go division has experienced a 120 per cent increase in local clients operating out of Lanseria Airport in Cancer Research UK have created a Celebrity UV above eight in the UK, so the upper limit used in UK its total number of flying hours over the past year: Johannesburg. Egres was launched in July 2003 Guide, using star skin types as a guide to when forecasts tends to be 10. “We have been astonished at the demand for our following the acquisition of the business by people should cover up – usually between 11 A.M. Manager of the SunSmart campaign, Jo Viner Smith, aeromedical services. The acquisition of Egres will Managing Director Sergio Avice du Buisson of and 3 P.M in summer, according to the UV Index: says: "These results are quite alarming, especially not only assist us in serving the needs of this Medical Rescue International (MRI). Du Buisson, Very fair, burns easily e.g. Renee Zellweger, Kelly following the warnings issued recently that we may growing market but will effectively result in the previously the Flight Service Manager for MRI, has Osbourne, Gwyneth Paltrow, Nicole Kidman, Marcia be in for a heat-wave this summer. formation of one of the busiest private air been contracted as the new Business Development Cross, Ewan McGregor, Rhys Ifans, and Prince Harry It is particularly worrying that over 70 per cent of ambulance and assistance services in Africa. Manager at Netcare’s Aeromedical division. people with very fair skin, who are most at risk of skin “In the past year we have had to keep expanding Netcare, a private healthcare organisation that owns UV Index 2-3 and higher cancer, do not know what the UV Index is. Fair-skinned the division to keep pace with the increased and manages 64 hospitals, 319 operating theatres Fair but tans e.g. Colleen McLoughlin, Sienna people can burn in as little as 30 minutes when the UV demand for quality aeromedical services around and 61 specialised medical centres, has also Miller, Jennifer Aniston, Victoria Beckham, Teri Index is seven and it is important they take extra care at Southern Africa. Our rapid growth is clearly announced its acquisition of a Citation SII jet air Hatcher, Brad Pitt, Tom Cruise, and David Beckham all times of the day when the UV Index is high. With evidenced by the increased activity of [our] ambulance, which allows the service to cover UV Index 3 and higher more than 70,000 new cases registered each year, it is aeromedical division, which currently undertakes in greater distances at improved speed, as well as to Olive or brown e.g. Jennifer Lopez, Penelope crucial people know when to cover up." excess of 50 aeromedical transfers per month. carry two stretcher patients simultaneously. This will Cruz, Laila Rouass, Joining forces with Egres is a natural development help the company with their new contract with the Parminder Nagra, Eva and most effective way of addressing our need for Botswana Department of Health, for whom Longoria and Jesse Metcalf, growth while continuing to provide top quality Netcare will provide air ambulance services Amir Kahn, Ronaldo service,” Dr Noach said. covering the whole of Botswana. UV Index 5 and higher Black e.g. Naomi Campbell, June Sarpong, Venus and Serena Williams, Will Smith, India reaches new territories Lemar, Denzel Washington

East West Rescue in India is pleased to announce its between 12 and 24 hours and take-off happens UV Index 6 and higher ability to provide air ambulances in new territories. It shortly afterwards. At the end of April, a British Over exposure to ultraviolet can now repatriate ill or injured patients from national with severe respiratory difficulties was rays, measured by the UV Kyrgyzstan, Kazakhastan, Tajikistan and Uzbekistan in airlifted by a Cessna Citation 11 jet from Samarkland Index, causes skin cancer – approximately four to five hours to New Delhi. in Uzbekistan and brought to New Delhi the same one of the most common Over-flight and landing clearances are obtained in day for investigation and treatment.

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International Travel Insurance Journal www.itij.co.uk HEALTHMATTERS 11

Encouraging healthy travel Healthy cruising

The American Society of Travel Agents (ASTA)’s preventable hepatitis can be prevented with As the market for international cruises widens, there recent survey of 1,200 US adults regarding medication or vaccination,” said Dr Karl Neumann, has been increased concern over the efficiency in individual’s travel health planning has revealed travel health expert and Director of the Travel the reporting of diseases present on ships when worrying results: although 56 per cent of US Medicine Clinic in Forest Hills, New York. “Because they dock. However, the good news is that a recent travellers plan their itinerary for their vacation, only many travellers don’t realise that they may be at risk study in the Medical Journal of Australia has shown 19 per cent seek travel health advice from a for certain diseases while travelling, it’s important that cruise ships entering Sydney harbour are being healthcare professional prior to departure. However, that they see their healthcare professional before more open about admitting an outbreak of disease 69 per cent of survey respondents agree that safety they embark on their trips to learn more about how on board. and health are major considerations when choosing to protect themselves.” As noted in the journal, cruise ship environments an international travel destination. The World Health Organization named malaria as are a haven for contagious diseases: “Cruise ships To increase awareness of the importance of taking one of the most serious threats to international have become increasingly recognised as a setting for travel health precautions, travellers, yet only 8.4 infectious disease outbreaks because of conditions ASTA is now launching a per cent of those that increase the chance of infection, such as national campaign to surveyed who had presence of crew and passengers from many parts educate travellers travelled to malaria- of the world, shared sanitation facilities, common heading abroad about endemic countries took food and drinking water supplies, exposure to air important pre-travel anti-malarial medications conditioning systems or water features potentially measures to stay healthy. to protect themselves. In contaminated with legionella, and consumption of “As travel agents, our job addition, a large number foods ashore where food safety standards may be involves more than just of US travellers who had poor.” booking the best trip visited countries with a Author of the study and Director of South Eastern possible,” said Kathy risk of vaccine- Illawarra Area Health, Professor Mark Ferson, says Sudeikis, ASTA President preventable hepatitis with advance warnings health officials are able to and Chief Executive (VPH), hepatitis A and join the ship as it arrives and act quickly, and that Officer. “We also educate hepatitis B, were not cruise ships – specifically those entering Sydney travellers about potential immunized against these harbour – are being more open about admitting an health risks and measures diseases, which can outbreak of disease on board since a programme they can take to stay seriously damage the liver for routine health surveillance on international cruise healthy while overseas. I and may potentially be ships visiting the Port of Sydney was developed in encourage those planning disabling or fatal (hepatitis 1998. The report, alarmingly, found that diseases to travel abroad to log C is not a vaccine- like gastroenteritis were previously only reported on to preventable disease). In after the ships had docked and people had arrived www.travelsafely.com for fact, 66 per cent of on shore. It is now hoped that other ports will tips on how to prepare respondents who had adopt the programme. for a safe and healthy trip.” visited countries with hepatitis A risk were never According to the ASTA survey, many US travellers vaccinated against the disease. Nearly as many don’t know which countries carry which disease (58 per cent of) travellers who had visited risks; specifically 40 per cent are not sure where countries with hepatitis B risk had never malaria is present, 52 per cent are not sure where received a hepatitis B vaccine. hepatitis A is and 51 per cent are not sure where “These survey results highlight the importance of hepatitis B can be found. In fact, many respondents consulting a physician about the right protection were unaware that diseases such as malaria and against malaria and vaccine-preventable hepatitis hepatitis could be contracted in many popular before travelling overseas,” said Dr Neumann. destinations. In addition, a large number of those “To prevent malaria, the physician may surveyed by ASTA are unsure or misinformed about recommend an anti-malarial medication, such as how some common travel diseases, including Malarone, which is an option for the last minute malaria (47 per cent) and vaccine-preventable traveller, since the regimen needs to be started hepatitis – hepatitis A (67 per cent) and hepatitis B only two days before departure. The physician (92 per cent) – are transmitted. may also recommend protection against vaccine- “The good news is that malaria and vaccine- preventable hepatitis, which can be contracted in countries where food and water hygiene and blood screening are not as stringent as in North America. There is a combination vaccine, called Antibiotics for Twinrix, which can provide protection against diarrhoea? both forms of vaccine-preventable hepatitis.”

For all travellers who have suffered from diarrhoea, good news… maybe! An antibiotic called rifaximin New regulations for outbreaks may help prevent diarrhoea caused by E. coli bacteria. Researchers, reporting in the Annals of Internal The World Health Organization (WHO) has Assistant Director-General in charge of Medicine, have found that the antibiotic could be approved a new set of International Health communicable diseases. helpful in preventing the stomach aching diarrhoea. Regulations to manage international public health “With this framework, we can now support the However, before travellers get too excited, rifaximin emergencies, due to come into effect in two years work of countries in controlling outbreaks more hasn’t been proved to treat the condition when not time. The new rules aim to ‘prevent, protect against, effectively. The regulations provide the WHO with caused by E. coli, and it didn’t completely prevent control and provide a public health response to the new, clearly defined roles and responsibilities as we the problem anyway. international spread of disease’. help countries to respond to disease outbreaks.” The study involved testing the antibiotic on 210 The regulations direct the roles of countries and the Countries will now have to carry out routine healthy American students who were in Mexico for WHO in identifying and responding to public health preventive measures, as well as to detect and summer and had not yet developed diarrhoea. emergencies, and sharing information about them. respond to public health emergencies more They were given instructions as to how best to “This is a major step forward for international efficiently. avoid developing diarrhoea and either took rifaximin health,” said Dr Lee Jong-wook, WHO Director- These routine measures include public health actions or a placebo. Participants were followed for three General. “These new regulations recognise that at ports, airports and land borders, and for means of weeks to see if diarrhoea developed and for two diseases do not respect national boundaries. They transport that use them to travel internationally. The more weeks to track side effects. are urgently needed to help limit the threats to idea behind the new regulations is to ensure the Results showed that the rifaximin group had fewer public health.” protection of people against the international spread cases of diarrhoea during their first two weeks in The original International Health Regulations agreed of diseases, while minimising interference with world Mexico. Of the students taking rifaximin, nearly 15 in 1969 were designed to help monitor and control travel and trade. per cent developed diarrhoea compared with more six serious infectious diseases – cholera, plague, “Every country already has some of these capacities, than half of the students that took the placebo. yellow fever, smallpox, relapsing fever and typhus. but almost no country has a perfect system,” said Dr Leader of the study, Herbert DuPont, says rifaximin The new rules will govern a broader range of public Max Hardiman of WHO, who has co-ordinated the could be an ideal treatment, “and should be safe health emergencies of international concern, process of revising the International Health even for prolonged use in at-risk international including emerging diseases such as SARS and Avian Regulations. “The new regulations set clear travellers.” However, in the same journal, it was flu. standards and will help countries to identify where questioned whether it is appropriate to prescribe an “The new regulations bring disease control into the their disease surveillance and response must antibiotic to millions of travellers a year! twenty-first century,” said Dr Anarfi Asamoa-Baah, improve.”

www.itij.co.uk International Travel Insurance Journal 12 TRAVELMATTERS

Superjumbo flies into record books Landing on a Zambia feels the The new closed runway affect superjumbo, the much heralded Japan’s reputation as having one of the most efficient Zambian tourism authorities say the US A380 has finally and safest transport systems in the world has government’s directive to its nationals not to travel gotten off the suffered a number of blows in the past few weeks. to Zimbabwe is likely to affect Zambia in terms of ground and Besides the rail accident, which was the worst the tourist flow. Benedict Tembo reports from Lusaka flown into the country had seen in 40 years, in a serious lapse of history books as safety, an aircraft landed on a closed runway – The US government has issued a directive against it successfully thankfully the stretch was clear. travel to Zimbabwe, citing political and economic completed it’s The Japan Airlines (JAL) aircraft was given clearance turmoil and the possibility of violence after that inaugural flight. to land by Tokyo’s Haneda airport, but onto a country’s 31 March parliamentary elections. The The world’s runway that had been closed for essential ruling ZANU-PF triumphed in the polls, which have largest passenger maintenance work. Yet another plane also nearly been disputed by the opposition Movement for plane, the giant landed on the same strip, but was told to abort the Democratic Change as having been fraudulent. double-decker landing. Although JAL was not considered to be in Zambia’s minister of tourism, Mr Patrick Kalifungwa, A380, landed the wrong, the airline has been investigated for a said in Lusaka that Zambia is likely to be affected safety after its series of incidents, which have seen parts fall off its because of its proximity to Zimbabwe. He did, maiden flight, aircraft and its pilots ignoring air traffic controllers’ however, say that under a memorandum of which circled the instructions. understanding signed by the two countries in Lusaka Bay of Biscay on In this most recent incident, all 18 on-duty traffic last year, the country will still go ahead and share the Wednesday 27 controllers in the Haneda control room forgot that same pavilion with Zimbabwe at the international April. one of the runways was closed, despite repeated tourism fair in Beijing later this year. The plane took queries by the JAL pilot. If repair work had been “We want to establish ourselves in China because it is off with a crew of six and 20 tonnes of testing Systems is the other shareholder) after it emerged underway, the mistake could have caused a fatal one of the biggest markets,” he said. In order to equipment from Toulouse-Blagnac airport in France. the project was €1.5 billion ($1.9 billion) over accident. Shinta Ehara, Head of Haneda airport, explore the Chinese market, he added, the country The crew were given parachutes, put on crash- budget. said: “We will take preventative steps [following this has to work together with others in the region, such helmets, and a handrail was fitted from the cockpit “I had tears in my eyes,” said the proud deputy latest incident] as it may have led to a serious as Kenya and Zimbabwe. to the escape door if the worst happened, but the project pilot, Peter Chandler, who had a vantage accident.” The minister also said the Zambian government was precautions proved unnecessary as the flight went point from the airfield. According to reports, all 18 air traffic control have making frantic efforts to open tourism offices at its smoothly and touched down to the applause of The Airbus is so big that at many airports the been removed from duty and are being retrained. embassies overseas, apart from at the New York thousands of on-lookers that had gathered to see infrastructure must be developed to accommodate office, where it already has a tourism manager. history in the making. its immense weight of 308 tonnes. The Airbus will Zambia is especially looking to establish offices in The pilot, Jachues Rosay, said that when flying the compete with the 747 on routes to the largest hub Germany, Italy and France. A380 “you handle it like you handle a bicycle,” airports. Meanwhile Boeing is considering building a Tourism in Zambia has, however, experienced a adding that it behaved ‘immaculately’. larger 747. steady growth at an average rate of 7.2 per cent The Airbus was designed with seating for 555 The first commercial service of the A380 should be since 2000. In 2003, international tourist arrivals passengers but it can hold a maximum of 840 in 2006 for Singapore Airlines but there are orders stood at 577,526, while receipts were worth people as opposed the Boeing 747, now in second for 154 of the planes from 15 carriers including US$148.8 million. Last year, 610,109 international place in terms of scale, with seating for only 416. Virgin, Air France and Lufthansa. tourists were received, with corresponding receipts The success of the test flight will be a welcome relief French President, Jacques Chirac commented: “A amounting to US$ 152.8 million. for the Airbus’s main shareholder EADS (BAE new page of aeronautical history has been written.” Mr Kalifungwa projects that Zambia will receive one million international tourists by 2010 due to the aggressive marketing and promotion campaign embarked on by his ministry for this year and beyond.

Australian baggage security scandal erupts Baggage security is now a major concern for were involved in the racket and had been paid Australian airports after claims that handlers were $300,000 to smuggle almost 10 kilogrammes of involved in drug smuggling operations. Story by heroin through Sydney airport. Roger Allnutt Many Australians believe that these revelations point to the problems of security of baggage and add A number of instances in recent months have weight to Ms Corby’s pleas of innocence. The chief highlighted concerns about the security of baggage at of the Australian Federal Police, Mick Keelty, Australian airports. For some time, many passengers outraged many supporters of Ms Corby when he have expressed concern at the number of bags lost was quoted as saying that he could not see the or allegedly tampered with between check-in and connection between the two events. He suggested collection at the end of their flights. ‘there is little evidence to support Ms Corby’s claim Concerns were heightened in October 2004 in the that Brisbane airport baggage handlers might have case of 27-year-old planted drugs in her boogie Queensland woman board bag’. Schapelle Corby, allegedly The revelations have led to caught trying to smuggle calls for increased security of over four kilogrammes of baggage from the time it is marijuana into Bali. Her trial checked in until it is has been going on for some collected at the end of flights months with a verdict by the with special attention being three judges expected on 27 paid to what goes on behind May. Ms Corby has the scenes at Australian proclaimed her innocence, airports. Federal Customs asserting that the drug was placed in her unlocked Minister Chris Ellison and Qantas CEO Geoff Dixon boogie board (a small surfboard) carry bag after she have led a push for covert video cameras to be checked it in at Brisbane airport. introduced at all Australian airports, as well as in Many Australians strongly believe in her innocence, aircraft holds and other baggage handling areas. This especially when claims were made by a number of suggestion has raised the ire of civil liberty groups in people that baggage handlers were involved in Australia. transporting drugs between major Australian cities in In the meantime, many passengers are taking extra unlocked baggage of unsuspecting passengers. A measures to ensure that their bags cannot be number of passengers have come forward with tampered with. Locks are being used extensively stories of finding articles (including drugs) in their (although this will cause problems in the US, where baggage after collection, following flights both within baggage cannot be locked when presented at check Australia and from Australia to overseas destinations. in) and sealing bags by wrapping in plastic is being The more recent arrest of nine Australians for tried by many passengers, although this facility is not allegedly trying to smuggle heroin into Australia from currently available at Sydney airport, where many Bali led to revelations that Qantas baggage handlers believe the major problems occur.

International Travel Insurance Journal www.itij.co.uk

14 TRAVELMATTERS

Cruising rides high US travel monitor says outlook is positive Drunks show down under According to a recent survey by Yesawich, • 20 per cent of active travellers took an flawed security Pepperdine, Brown & Russell/Yankelovich Partners – international trip during the previous 12 months, the 2005 National Leisure Travel Monitor – the although 60 per cent say they are less likely to take Three men, clearly the worst for ware after a drinking Cruising continues to be the fastest growing travel percentage of adult Americans who have taken at such a trip in the year ahead if the US dollar session, managed to scale the fence at Perth sector in the South Pacific, according to the least one overnight trip of more than 75 miles from continues to decline against other major world International Airport and walk onboard an empty International Cruise Council of Australasia (ICCA). home has risen to the highest level observed since currencies; A330 Qantas jet unchallenged recently. Whilst Federal From Miles Clarke in Sydney 1999. • Florida (40 per cent), California (36 per cent), Justice Minister Chris Ellison said the men did not The travel survey, of 1,650 US adults, found that 58 Hawaii (22 per cent), New York (19 per cent), pose a serious threat, the fact that it was relatively There was a 35 per cent increase in the number of per cent of American adults took such a trip during Colorado (17 per cent) and Nevada (17 per cent) easy to evade detection has left security officials once Australians taking cruise holidays between 2002 and the past 12 remain the states again open to criticism. 2004, according to the ICCA annual survey, with months (up from US adults say they “It wasn’t a designed attempt to create any threat to numbers swelling from 116,000 to almost 160,000 49 per cent last would like to visit security,” he said, “These three men were allegedly over the period. This includes cruises taken in other year), of which most during the intoxicated at the time and we’ll ensure that this regions of the world. one third took at next two years; doesn’t happen again.” The period has seen an explosion in the least one trip • National parks Labor MP Kim Wilkie was critical of the incident, deployment of vessels permanently in Australian primarily for now top the list of saying: “If three allegedly inebriated men are able to waters, most notably from P&O Cruises, who are business and 93 specific scale an airport fence, board a plane and spend an now part of the giant Carnival cruise family. There per cent took at destinations of hour on board then it is alarming to imagine what a has also been an increase in specialist luxury vessels least one trip interest to person or group with more sinister intentions may be working in areas such at the Great Barrier Reef and primarily for American leisure capable of doing. the spectacular wilderness areas of the Darwin to pleasure. travellers (66 per “Regardless of the sobriety or otherwise of the men Broome sector in Australia’s ‘Deep North’. cent), followed by involved, this incident exposes serious and disturbing Says Steve Odell, Chairman of the Sydney-based Among other the Islands of flaws with security at the airport.” The three men, all ICCA: “The resurgence of travel in 2004 has things, the survey Hawaii (63 per in their early twenties, were arrested near the plane resulted in important changes in destination revealed: cent), Honolulu they boarded, on an aerobridge, on 21 March. They patterns. Outside the South Pacific, Alaska emerged • 68 per cent of (59 per cent), the were so drunk that they were said to be incapable of as the new number one international destination in adults took at least Florida Keys (53 being interviewed after their arrest. terms of passenger numbers, with an 87 per one leisure trip per cent), the increase between 2002 and 2004. with a spouse or mountain resorts ”In addition, world cruise sectors increased by 106 another adult, while 37 per cent took at least one of Colorado (46 per cent) and Lake Tahoe (46 per per cent. Asian cruises showed an overall decrease trip with children (a significant increase from the cent). New York City is mentioned by 45 per cent of of 47 per cent since 2002, which proves that the percentage observed last year), and fully 26 per cent adults, Orlando by 44 per cent and Las Vegas by 43 Iraq routes open challenge of recovery from the SARS incident has took at least one vacation alone; per cent; taken longer than expected. • Weekend vacations (four nights or less including a • The survey found that the Internet is now used up from the UK “We expect this to change yet again in 2005. Saturday) continue to be the most popular, exclusively for vacation planning purposes by 56 per Already, reports from our members indicate that for representing 56 per cent of all vacations taken by cent of all leisure travellers who are active hotel and The first direct flights from the UK to Iraq since the 2005 there has been a resurgence of interest in Americans, although there has been an increase in airline users, whereas 23 per cent consult both war broke out are now available to passengers. Europe and a return to travel in Asia.” the incidence of vacations lasting more than five travel agents and the Internet and 10 per cent rely Flying from Stansted to Baghdad twice weekly, the When planning itineraries, cruise companies nights; exclusively on travel agents; tickets cost as little as £500. Dhia Al-Ani, Chairman investigate carefully the needs of particular markets, • 30 per cent of adults are planning to take fewer • Although the percentage of adults who have used of low-cost carrier operating the flights – Air particularly preferred ports of call and duration of vacations in the year ahead (roughly equivalent to the Internet to obtain information and/or prices on Scotland – added the cost would drop if insurance cruises and Australia showed its biggest market in the percentage observed last year), and ‘not able to travel services declined from the previous year, the premiums came down as the region stabilises. The cruises of eight to 14 days duration, and this has get away from my job/work’ is the most frequently percentage that now reports booking reservations gamble rides on there being 250,000 Britons of been consistent across all three years of the survey. cited reason why; online has increased from 45 per cent to 47 per Iraqi decent in the London area alone, with another Some 54 per cent booked longer cruises, while 26 • Trips that include a naturalistic element remain cent; three million second-generation Iraqis in Western per cent chose cruises of five to seven days duration very popular, with the incidence of beach/lake trips • 46 per cent of active leisure travellers are Europe. in 2004. rising over the previous year (cited by an estimated interested in taking a cruise, and 10 per cent are Al-Ani said: “The new government [in Iraq] has now Next year’s figures may be dented to some extent 27 per cent of leisure travellers, up from 21 per cent interested in purchasing a timeshare or owning by persistent engine failures in P&O’s 1,500- last year); vacation time. passenger Pacific Sky, which has led to the cancellation of six Pacific cruises in recent months. One of the last steam-powered cruise ships ever built, the Pacific Sky has had to have a key engine Space tourism guidelines released part manufactured in the US and shipped out.

The Federal Aviation Administration (FAA)’s space flights to inform, warn and take responsibility guidelines for space tourism are, basically, that for their customers. passengers will fly ‘at their own risk’. With space The team that developed and built SpaceShipOne is New deal between tourism an inevitability after SpaceShipOne won the now putting together a fleet of space vehicles for the $10-million Ansari X Prize by completing three Virgin Group under the banner Virgin Galactic, and US and India suborbital flights last year, fatalities in the early stages other companies are in the process of creating of this new era are thought to be likely. suborbital and orbital passenger-carrying craft. The US An open skies deal between the US and India was “Because the commercial human space flight industry government wants passengers signing up for the signed in New Delhi on 14 April, replacing an is in its early stages, the regulation is based on experience to understand that they are putting their agreement that restricted flights, destinations and principles of informed consent and voluntary lives at risk, however. The new guidelines include airfares. This will effectively mean that travellers can assumption of risk by space flight participants,” the asking the space tourists to sign a form that indicates expect lower fares between the two countries and Federal Aviation Administration (FAA)’s Office of they have no illusions about the risks they are an increased number of flights. Commercial Space Transportation wrote in its first undertaking, and that they are flying on an uncertified Passenger traffic between the two countries rose by guideline for private suborbital space flight, which craft. The guidelines went on to say: “This description close to 30 per cent in 2004, but there is plenty of was released recently. The US government has put should include the likelihood and consequences of any room for further expansion. the onus on the companies undertaking commercial reasonably foreseeable hazardous event and safety- Air India and US airlines Delta critical system failures that could result in a serious been elected, with all the different sectors of the and Northwest offer direct injury or death to the space flight participant.” Iraqi population involved. People are getting sick and services between India and The FAA’s charter members include John Carmack of tired of bombs and insurgents, and everybody is America. Continental Airlines Armadillo Aerospace, SpaceShipOne builder Burt Rutan now working to put an end to it. There are a lot of has also announced plans for a of Scaled Composites, Elon Musk of SpaceX, Alex Tai of indications that by November things will have non-stop service between Virgin Galactic, Jeff Greason of XCOR Aerospace, Peter calmed down and become a lot safer. Delhi and Newark starting in Diamandis of the X Prize Foundation, Gary Hudson of “Within the Baghdad Airport parameters, there is no October that will shave off t/Space and HMX, George French of Pioneer problem. Getting to the airport by road, however, over two hours of flying time. Rocketplane, Stuart Witt of the Mojave Spaceport of is dangerous, because the US base is next to it and It is hoped that by cutting out California, Eric Anderson of Space Adventures, and that is targeted by insurgents. But the airport is stopovers in places like Michael Kelly, Chairman of the Reusable Launch Vehicle going to become a more and more civilian area. Singapore and Bangkok bus Working Group of the Commercial Space Flights from Dubai and Oman have been operating travel between countries will Transportation Advisory Committee. for six weeks and there have been no problems. be encouraged. As early as the end of this year, draft regulations should “When the British Embassy opens properly to issue India is the 67th country with be issued, and the finalised rules will be in place by visas, there will be a lot of tourists.” which the US has an open June 2006. If all goes according to plan, the first Prices are expected to drop if there are no incidents skies agreement. commercial space flights should be running in 2008. that affect security.

International Travel Insurance Journal www.itij.co.uk INDUSTRY AWARDS 2005 Who canenter? success. andmarketingliteraturetohighlightyour be usedonstationery this recognitiontofurtheryourbusiness.Theawardslogocan commended finaliststheawardsofferopportunitytouse in thetravelinsuranceindustry. Forthewinnersandhighly The awardsaredesignedtorecogniseandrewardexcellence categories, itwillbeamemorableevening. For thosecompaniesandindividualsshortlistedinanyofthe ceremony inSevilleon11November. Why enter? year willlookforthefollowingkeyfeatures: The jury State yournominationinnomorethan750words. How towriteyourentry Awards ceremonyanddinner:Thursday11 November2005 2005 Judging andannouncementoffinalists:Friday28October Deadline forallentries:Friday30September2005 Dates toremember entered [email protected] yourcompanyshouldbe you areunsurewhichcategory The Categories their contactdetails. industry. Ifyouwishtonominateathirdparty, pleaseemailus How youmeetthecriteriasetforyourrespectivecategory How youplantobuildonthesuccessofpastyear How youhavegrown/progressedyourbusinessinthepast What youhavedonetomerittheawardinpastyear 2005 Awards Entry Form Send yournominationsnow! Job title______Name ______If successful,whowillcollecttheawardonnight? Signature ______Email address:______Contact fax:______Contact tel:______Company address______Company name______Job title______Surname ______First name______Dr MrMrsMissMsOther ______All finalistswillbenotifiedbyFriday28October All entrieswillbeacknowledged Closing dateforreceipt ofentries– Colston Street, Bristol,BS15AX,UK TravelDenise Clements,International Voyageur Insurance Journal, Buildings,43 your completedentryto: Return The awardswillbepresentedataglittering See the entry formbelowforthecategories.If See theentry The awardsareopentoallsectorsofthe Friday 30September2005 candidate ineachcategory. the winnerandhighlycommended The finaljudgingpanelwillselect panellists foreachcategory. all entriesandputforwardfive The shortlistingpanelwillassess travel insuranceindustry. of backgrounds,allwithaninterestinthe The judgescomefromawiderange are treatedinthestrictestofconfidence. All judgingisindependentandentries The Judges knowledge industry in thefollowingcriteria,whererelevant: excellence andprofessionalism The judgeswillalsolookfor Judging Staff training Client relationships Business growth Involvement withtradebodies Marketing andpromotionalactivities Area ofexpertise,including Insurance Awards intheInternationalTravelI wishtoenterthefollowingcategory I enclosethefollowing: including hospitals,clinicsandPPO brokers andallsellersoftravelinsurance Categories category, photocopiesare acceptable) industry. promotional material,whichwillberecognised byyour peergroups andthroughout the other related press. Thisgivesyoutheopportunityto usetheaward inyourownpublicityand ouetto,teedtiswl ecnimdoc o aebe oiida finalist. a as notified been Do notforget thatthewinnersandfinalistswillgainexposure intermsofpublicity have you once supporting confirmed submit be to will opportunity details an these given documentation, be then will category each for finalists five The of the entry of theentry formattachedtoeachcopy A signedandcompletedentry the sixkeyfiguresandcriteriaasoutlinedabove 6 copiesofthe750-wordtextdocumententry, including General Provideroftheyear Air Ambulanceoftheyear Medical &CostContainmentCompanyoftheyear– Assistance orClaimsHandleroftheyear Insurer/Underwriter oftheyear–inludingintermediaries, (All entriesmustbereceived inEnglish) (Please useaseparateentryformforeach ITIJ and 16 COMPANYBRIEF

Control Risks Camping cover Travel with care New policy for UK tour operator Holidaybreak plc has appointed After launching the first phase of its travel service for expands service Europ Assistance to manage their travel insurance Lloyds TSB customers in December of last year, component breaks and continental motoring breakdown for their UK Travelcare has now implemented its second phase, The Association of British Travel Agents (ABTA) has Control Risks Group, the business risk consultancy, camping business. Europ Assistance meaning the launched a new travel insurance policy that protects has rolled out its new and improved was chosen to handle the account, service is now consumers if holiday products, not protected by any CRTravelTracker service. With the purchase of which is worth in excess of £1 million, available to six existing financial protection scheme, go bust. The travel technology provider Flightlock International, after travel insurance solutions million new policy will give independent travellers, who put Control Risks can now boast an unparalleled level provider Voyager Insrance Services people. The their own travel packages together, piece of mind of service for its clients. Ltd was appointed to carry out a fully-integrated when they arrange their own car hire, The security travel tracking service allows global review of Holidaybreak’s camping travel service, accommodation or flights, which in the past were corporations to send out their travel and security division travel insurance programme. which can be only covered if bought as part of a package. policies to all travellers before they depart, provide “It’s very rewarding to have won this accessed The policy will be sold through ABTA members only, details of where travellers are at any time during account,” commented Gary Andrews, online or via a who will be required to offer the policy under the their journey, and provide proactive advice Director of Travel & Leisure at Europ call centre, is association’s Code of Conduct if they are selling following large-scale threats or changes in security Assistance, which won the contract available to products that are not protected through other situations. The service also logs details of all trips through a competitive tender process. Lloyds TSB’s schemes. The policy, hence, does not replace the made by employees and the advice they receive. The assistance provider will now build on their ‘added value account’ customers. need for full travel insurance as it only protects This provides a critical audit trail for companies and previous experience of handling certain parts of the These customers will not only be able to purchase customers for the financial failure of a non-ABTA is essential evidence of duty of care procedures. newly enlarged programme. travel insurance, car hire and currencies through principal and baggage cover. Also, it does not cover the service, but they will also have exclusive access companies eligible to become an ABTA member, nor to discounts on flights, accommodation, city breaks does it cover brokers. Commenting on the new and package holidays. product, Brian McLean of International Passenger Travelcare runs similar travel clubs with major Protection, said: “This new concept will provide the Florida covered businesses and organizations, including British Gas more independent traveller with protection that has Cruising along and Manchester United. never been available before and at a nominal cost.” FirstAssist Insurance Services has secured a contract PJ Hayman & Company Ltd in the UK has acquired to provide independent tour operator Travel City the Venturesure business, specialist travel insurance Direct with a total travel solution, including travel schemes for travellers including those with pre- insurance and assistance. These services will be existing medical conditions. Venturesure is provided through Primary Travel Insurance marketed under its own brand name via over 240 New Bajaj schemes for Asia Services. affinity groups, including medical charities, and also Commenting on the contract with the UK’s largest includes travel insurance schemes for well-known India-based Bajaj Allianz General Insurance has Rs250 (€5) to Rs475 (€9) for one to four days independent tour operator to Florida, FirstAssist’s companies such as Fred Olsen and Star Clipper introduced two new, low-cost travel insurance coverage for a person aged up to 40 years of age. Business Development Manager, Steve Scott, said: cruises. plans for travellers to Asian countries. The products The coverage is about $15,000. And Travel Asia “This is an exiting new contract for [us]…We look Commenting on the acquisition, Peter Hayman, – Travel Asia Flair and Travel Asia Supreme – are an Supreme’s premium varies from Rs250 (€6) to forward to working with Primary Travel Insurance Managing Director, said: “We are delighted to take extension of its basic plan Travel Companion. The RS650 (€12) for one to four days coverage for a Services and Travel City Direct to create a over this account and very much look forward to plan is valid for all Asian countries except Japan. person aged up to 40 years of age. The coverage comprehensive travel solution for its customers.” developing and building the schemes.” Travel Asia Flair has a premium that varies from on this policy is around $25,000.

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International Travel Insurance Journal www.itij.co.uk

18 NEWSANALYSIS FBI closes in on insurers

It started with accusations by Eliot Spitzer, the of corporate self-dealing, dubious accounting, and that fact will make regulation even more difficult. from the SEC and Spitzer’s office to turn their infamous New York Attorney General, and his obstruction unveiled over recent months throughout “Although corporate fraud is not unique to any attention to what they saw as accounting tireless campaign to thwart contingency the insurance industry. “Insurance fraud continues to particular industry, there has been a recent trend irregularities at AIG designed to artificially enhance commissions and payoffs, but the Pandora’s box maintain a top investigative priority, due in large part involving insurance companies caught in the web of that company’s reserves and boost its stock price. has opened up investigation after investigation into to the insurance industry’s significant status as one of these schemes,” said the report. Those investigations resulted in the ouster of the practices employed by insurance companies. In the largest US industries (more than doubling the Maurice Greenberg as chief executive and chairman the latest move, the FBI joins the probe into the US Gross Domestic Product contributions of the Spitzer gets the ball rolling of AIG, and led also to AIG’s admission that it had insurance industry, indicating that criminal securities industry),” the FBI report noted. “Insurance The FBI involvement comes several months after overstated its net worth by $2.7 million. AIG is the sanctions are more likely. Milan Korcok reports on world’s largest insurance company. what the latest twist means to insurers What that investigation also showed, was that a number of major reinsurers were complicit in The US Federal Bureau of Investigation (FBI) is helping AIG mask its true reserve picture. It revealed mobilising a large corps of special agents to join in on “…the investigations by Spitzer, the SEC, and now that executives at General Re Corp, a division of the ever-spreading investigation of insurance industry those anticipated by the FBI, will continue to turn up Warren Buffett’s Berkshire Hathaway Inc., had accounting practices and fraud schemes. Citing the improperly issued a $500-million reinsurance recent probe of American International Group cases of egregious wrongdoing…” contract to AIG to ‘smooth out’ its earnings and (AIG)’s suspicious dealings with various reinsurers as mask its true reserve status. Investigators have also but one example of industry misdeeds, the FBI has been looking at transactions between AIG and assigned agents from its 56 field offices to co- Richmond Insurance Co. of Bermuda, and two other ordinate their insurance-related investigations fraud (non-health insurance) costs the average family New York Attorney General Eliot Spitzer unleashed a reinsurers based in Barbados. through Washington in an effort to identify larger between $400 to $700 per year, with a total cost highly publicised investigation of bid rigging and Warren Buffett has already been interviewed by the patterns of illegal behaviour. exceeding $40 billion…The FBI, in concert with the kickbacks at Marsh & McLennan Companies and SEC and Spitzer, but was never considered a National Association of Insurance Commissioners several other large brokers that also involved AIG participant in any wrongdoing. FBI states priorities (NAIC), is attempting to identify the top echelon of and other insurance and reinsurance companies. As recently as 10 May, however, the SEC notified In announcing the new initiative, which clearly carries fraudsters defrauding the insurance industry and most Spitzer was soon joined in his investigations by the former and current General Re executives – with it the probability that more people in the prevalent schemes within the insurance industry.” Securities and Exchange Commission (SEC) as the Elizabeth Monrad (now chief financial officer of the insurance business will be going to jail, the FBI It noted also that the insurance industry is in the probe widened to include more and more pension fund TIAA CREEF) and Richard Napier, a released its 2005 Financial Crimes Report, which midst of technological and regulatory change that will companies and executives in the US and abroad. current General Re executive – that it planned to file emphasised its concern with the widespread nature result in foreign insurers playing a larger role, and Data turned up in this probe then led investigators civil fraud charges against them. John Houldsworth,

International Travel Insurance Journal www.itij.co.uk NEWSANALYSIS 19

‘…the FBI wanted to be regulators. The NAIC, the New York Insurance Department and the Virginia Bureau of Insurance prepared if the current have already met with special agent investigators to bring them up to speed on insurance accounting insurance problems practices, different types of policies, and the technical requirements for accounting and reporting turned ou to become the of reinsurance transactions. “State insurance regulators, working through the nation’s ‘next crisis’.” NAIC, have been tapped by the FBI to provide guidance in understanding the technical requirements for accounting and reporting former head of General Re’s Dublin office, has also reinsurance transactions, including arrangements been advised by the SEC that he is under that limit a reinsurer’s risk of loss,” said Diane investigation for participating in the AIG accounting Koken, NAIC President, in a written statement. She improprieties. The Irish Financial Services Authority said such technical assistance is routinely provided has already asked General Re for details about its to government investigators. non-traditional, or finite reinsurance policies. Finite Response from some sectors of the insurance reinsurance usually refers to contracts that blend industry has generally taken the approach that traditional reinsurance and financing – sometimes to though the investigations by Spitzer, the SEC, and ‘smooth out’ an insurer’s earnings picture over a now those anticipated by the FBI, will continue to given period. turn up cases of egregious wrongdoing, even Insurance regulators feel such finite transactions, criminality, the charges should not be used to which ultimately enhance an insurer’s earnings besmirch an entire industry. This is the ‘few bad status, should really be considered loans, not apples’ argument. operational use by the company. However, when regulatory body in order to hide the true nature of reinsurance, as they represent little or no risk to the “Any time an individual breaks the law, they should funding is needed, unscrupulous executives invade the fictitious assets listed in the statements. This insurer. be punished accordingly,” said Robert E. Vagley, the premium accounts in order to pay corporate generates large insurance premiums solely to be “We’re taking a hard look at cases like AIG to see if President of the American Insurance Association. expenses. This, in turn, leads to financial statement diverted.” there’s an indication of something more pervasive,” “However, it is very important to note that the fraud because the company is required to ‘cover its By inserting itself into the insurance industry Chris Swecker, Assistant Director of the FBI and insurance industry consists of thousands of tracks’ to conceal the improper utilisation of investigations, the FBI is staking out its turf rather head of its criminal division, told reporters at a individuals who work diligently and honestly every customer premium funds.” than asserting that it will take a lead role. But by Washington briefing held for the release of its 2005 day to serve the needs of policyholders. It would be In respect to the widening globalisation of insurance becoming an investigating ‘partner’, the FBI Financial Crimes Report. He said the FBI wanted to grossly unfair to tar these hard-working individuals and the variegation of products, the FBI report goes seriously raises the stakes for industry transgressors. be prepared if the current insurance problems with a broad brush based on the isolated actions of on to signal a concern about the role in the As one industry analysts told the media: “Any time turned out to become the nation’s ‘next crisis’, a few bad actors.” marketplace of foreign insurers and their ability to you have 75 agents looking at one thing, criminal referring to the savings and loan debacle in the late The FBI’s 2005 Financial Crimes Report emphasises stay beyond the reach of US regulators. It states indictment is absolutely a threat.” 1980s and the corporate fraud (Enron) crisis in that the agency’s interest in the insurance industry that there are “a growing number of unauthorised 2001/02. “We do not want to be caught napping goes beyond arcane accounting technicalities; that it and unregistered entities engaged in the sale of on this,” said Swecker. affects real people paying premiums out of hard- insurance-related products. As the insurance earned incomes. industry becomes open to foreign players, “…the FBI seriously Raising the stakes “The temptation for fraud within the corporate regulation becomes more difficult. (Fraudulent) In preparation for its role in investigating such industry can be greatest during periods of financial schemes typically involve entities that utilise a raises the stakes for arcane matters as finite reinsurance, the FBI has downturns. By their nature, insurance companies myriad of sophisticated schemes for verification of industry transgressors.” enlisted the aid of the industry itself and its hold customer premiums, which are forbidden from submitted fraudulent financial statements to the state

www.itij.co.uk International Travel Insurance Journal 20 ITICREVIEW

International Travel Insurance Conference – Brighton 2005

Welcome function unidentified, awaiting the completion of DNA employing DNA A mixture of the usual suspects and new delegates testing. recognition equipment arrived through the revolving doors of the Hilton to identify dead. Welcome function sponsored by Hygeia Metropole hotel in Brighton as the ITIC European Keynote speaker and panellist: Jan drew attention to kicked off with an evening welcome function Jan Axel Norlander, Ambassador, Head of the the fact that many of sponsored by Hygeia. Pre-conference mingling, Department for Consular Affairs & Civil Law – the staff at the with wine and ‘nibbles’, eased an impressive Sweden’s Ministry for Foreign Affairs emergency centre in international guest list into what was to become a Stockholm – trying to Jan Norlander, who dealt with the immediate sort through the response to the emergency in Sweden, asked the chaotic information question: ‘How do you plan for something and problem solving – unforeseeable?’, since there was nothing like the lacked the proper tsunami in living memory. training, but worked Sweden was criticized by its tabloids for its handling until they collapsed. of the disaster, but Jan explained some of the He felt the Swedish problems they had to deal with. Firstly, media had had a very there were victims spread over damaging affect on enormous areas, with search areas their morale. It stretching for thousands of miles of portrayed them as coastline, all of which were reduced to uncaring, and he rubble, often leaving no infrastructure or witnessed some staff contacts for communication and co- breaking down in tears fascinating conference, ordination. It was unlike previous over this. Problems covering subjects that emergency situations, such as bomb- were often made were emotive as well as blasts, for instance, where the worse by confusion informative. emergency is contained DAY 1 – 18 May in one location. and a lack of a proper When asked what he feels could have been done Panel session Despite administration system. “ We better, Jan replied simply that everyone in the loop, this, he believed the had many workers, but few from assistance companies to people on the ground, Tsunami: analysis of the disaster and lessons learned local authorities handled managers.” Problems were not should have known exactly what their job was. The Tsunami of 26 December 2004 brought death the situation as well as due to a lack of effort from the and destruction on an unprecedented scale. Of the could be expected. In workers involved, as the media Bo Uggerhoj, CEO, and Tina Hansen, Manager tourist casualties, Sweden, which has a population situations like this, the implied. International Network – SOS International A/S of only nine million, had a proportionally high body host country’s Because of the chaos count, with 550 killed and around 116 still emergency services on the ground in countries such as Thailand, people were being boarded onto planes without have to be relied on. the normal immigration controls and Assistance was late when it checks, which meant no one knew exactly came, he admitted, but not who was on board. too late. Jan stressed that the Swedish government In total, 13,000 Swedes were learnt from the mistakes made in the evacuated and the government response to the tsunami, but pointed out has guaranteed airlines some that you can never budget for all compensation for their eventualities. assistance. As a result of the tsunami, Jan believes Body identification was a slow that compulsory travel insurance may be process, the Thai government on the government’s agenda in the future.

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

Rowland Brothers was contracted by the UK hospital/treating doctor. Doctors, in one case, found As SOS International Jorgen Pederson, Executive Vice government to fly out to Thailand after the tsunami themselves searching the hospital to treat a patient had been involved in President – Gouda Travel Insurance hit to find, embalm and repatriate the dead. who was no longer there. “This not an ideal emergency operations Company The conditions Tony’s teams found themselves situation!” protested Dr Kajornboon, with not a little relating to 9/11 and working in were physically atrocious and totally irony in his voice. Bali previously, they Jorgen said that after the first alarm call, demoralising. To make matters worse, bodies Over the succeeding days, the hospital also became believed they had his initial thought was ‘How bad can a continued to wash up on the shores with every used as sanctuary for those without food, clothes or adequate contingency few waves be?’ and admitted how new tide for weeks after the tsunami had struck. In shelter. As an independent hospital, Bangkou Phuket plans in place for wrong this perception had been. order to cope with the number of corpses, Hospital did not receive any government money, disaster situations. Speaking as an insurer, he voiced a temporary mortuaries were created in sites such as and resources quickly became stretched. In some When they were first number of concerns. car parks and temples. cases, the aid that was received from other sources, notified of the tsunami, Firstly, he was troubled by how the Tony talked about the laborious process involved in such as food, had perished during transportation. like most people, they media had handled the disaster and identifying bodies. Even at this late stage, in Dr Kay felt that his biggest problem during first and thought it was a how stories were circulated showing Thailand, there are still many corpses yet to be most chaotic days was communication. He noted disaster on the scale of insurers in a negative light, often identified. that call centres did not link up with each other and, the Bali bombing. ignoring the facts. When moving the coffins containing identified with up to 30,000 calls in the first seven hours, Indeed, many people In the aftermath, a prime concern for bodies, often the identification tag would fall off and everyone’s systems simply crashed. believed it was just a Gouda was the state’s intervention the body would have to go through the whole “In view of unpredictable circumstances, we did a small flood. during that time. The free assistance the state had process of identification a second time, taking up good job,” he concluded, “but communications Their initial response, in common with everyone provided at the time was clearly beneficial, but his valuable resources. Tony explained that lessons could’ve been better.” else, was therefore limited. As more were, however, learned about issuing death information on the scale of the certificates after 9/11. In the US, it was important catastrophe became available, resources for death certificates to be issued as early as were increased accordingly. And as the possible for the families to receive important number of cases of injured notified to benefits. A similar system was used after the SOS rose to 1,767, procedural steps tsunami to ease families’ distress. were introduced to bring order from the chaos: Dr Sutuspun Kajornboon, Aviation 1) registering people at hospitals Director – Bangkok Hospital Network 2) making medical assessments 3) repatriating Dr Kajornboon gave an insight into the scale and his 4) assisting uninjured numbers of injured who poured into their hospital 5) repatriating luggage in Phuket after the wave receded. The hospital In addition, efforts had to be made to looked like a war-time scene, with patients lying repatriate the dead (over 400 bodies around in every available space. Wounds were were repatriated to Sweden). deteriorating faster than usual, as they became infected from the mud and silt that was forced into Many had forged strong bonds with other survivors and would not travel unless they DAY 2 – 19 May could travel together. Airport chaos was evident. worry was that in the longer term the public at Bangkok airport became a shelter and “looked like large might believe that the government would bail Competition and cartels – what is legal, can something from a war film,” said Tina. Because of them out of any situation. This, in turn, would have we share records, what is reasonable, can we the confusion, many planes also left half empty. had a detrimental affect on the sales of travel agree common policies? Communications were poor, as mobile phone insurance. However, Jorgen was happy to report networks overloaded and became useless. that this was not the case. Ros Kellaway, Partner – Eversheds Authorities and organisations helping out had to In fact, Chris Price from Direct Line, speaking from constantly adapt. Uncoordinated, the situation soon the floor, asserted that the reverse was probably Ros opened with dire warnings about ignorance of became a very messy affair. true. The tsunami disaster had highlighted the need competition laws. She made it clear that collusion of After the event, there was also the ever-lingering for cover and had probably helped increase sales. any sort, even (the wrong kind of) small talk with problem of who should pay for what. How much competitors can lead to prosecution under would the government fund? Or the tour Tony Rowland, Managing Senior Partner – operators? Or the insurers? Rowland Brothers International All sides entered into the rescue effort without a clear budget. Without budgetary control, costs had become a serious liability to the government and the insurers. This issue remains unresolved today. Bo and Tina (and Jan) felt that it was them by the wave. Within as little as 12 important to have agreements in place, so in the hours, infection would be rife and future there would be no financial uncertainty in spreading rapidly, threatening amputation the face of a catastrophe. in some extreme cases. Bo and Tina’s final point was to recur time and time Dr Kay pointed out the lack of co- again during the conference, namely: how to deal with ordination between the hospitals and the media. Failure to communicate with the media foreign medevac teams. Amazingly, in the correctly can be extremely damaging. Seasoned news first days after the impact, many simply teams are quick to pick their way through to a good wandered into the hospitals and story, positive or negative, and dealing with the media removed their clients/patients without ‘packs’ is no place for the amateur. receiving clearance from the

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

therefore, encourage whistle- blowers on illegal activities such as price fixing. They are, in a word, ‘desperate’ for information and can use undercover agents, monitoring and covert surveillance, and invasive dawn raids. There is even a leniency law, which means if you are the whistle blower that exposes a cartel – even if you were involved – you will be exempt from a punishment, whilst your partners are fully investigated. competition laws. Fines can cripple a business, even ‘Ganging up’ and boycotting a worse, lead to a five-year jail sentence for serious company is also seen as an unfair practice in the eyes disclosure of exclusions, this is usually seen as offences, and directors can be disqualified even if of competition law. If you isolate a company by a fraudulent. Similarly, questions need to be asked they were unaware of the offence. collective agreement with others then watch out if about the customer’s requirements before the policy Ros described the methods employed by regulators you are part of the boycotting group! is sold, or the policy may be practically useless, and to unearth abusers of competition laws. They are, Ros also stressed that if you feel a meeting with the customer is largely unaware of this. Presumptions she said, as stealthy and single-minded as any serious another company is turning into a pricing or any are often made about insurance – by the customer – crimes investigators, perhaps even more so. As Ros other anti-competitive discussion, you should leave – that are incorrect. For instance, as a customer, if you puts it: “Regulators have more powers than police quickly. Her advice is that if you are in doubt about are going to a ski resort, you would need insurance have for crime.” In the shadowy world of illegal competition law or need to seek advice, go to the for skiing accidents; so you need to know if the sport business practices, regulators rely on informants and, trade associations for some insight – the bottom line involved is covered in the policy chosen. A more is that you need to know the laws to common misunderstanding with coverage is with the protect your company! Club 18-30-style holidays that are fuelled with copious amounts of alcohol, as most insurance Mis-selling and duties of disclosure

Reidy Flynn, Ombudsman – Insurance Ombudsman Bureau

“The goal of the Ombudsman,” Reidy said in an opening defence, “is to open dialogue and reduce complaints.” As she sees it, one problem with travel insurance is ‘that if the proposal (policy) is point of sale. “fraudulent” in the first place, then the The travel industry puts forward the argument that it document is useless from the beginning’. should not need to regulate business sold with a That is, if there is deliberate non- holiday. However, the FSA wants a transparent sales process that has clear sales standards, clear training and competency requirements, and a clear and fair ombudsman process. Specifically, they want complaint handling processes streamlined and simplified. The industry may be having trouble with the new regulations, but Ian believes the FSA rules are just trying to achieve a straightforward regime for policies don’t cover alcohol- the customer. So what is the state of related accidents and play now? The role of the Association incidents. Another common of British Travel Agents/Financial example of a Ombudsman Service and insurers is to misunderstanding is when maintain standards of service and people don’t realise they advice for the customer. Admittedly, have cover for goods the situation is still confusing, but Ian limited to as little as £250, believes these are early days and even if £5,000 worth of things will get better. goods needs replacing. Reidy makes the case that Mike Monk, Head of Finance – it’s the clarity that is missing. Association of British Travel The wording by the insurer Agents (ABTA) is very important – and exclusions must be made clear. It is also important, Mike began by explaining that the where possible, to record Financial Services Authority (FSA) interaction: telephone sales introduced its first travel insurance should be recorded, for instance. There needs to be more emphasis on choice and less on price, for the customer to obtain the correct coverage. Controversially, Reidy also suggests that if the claimant knows they are going to have the amount of their claim negotiated down by the insurer, it is not unreasonable for them to exaggerate the cost, and that this may not be a form of fraud. What seems to disturb insurers is there is no one set of rules in place to determine all cases – it is very much a case-by-case judgement.

Future distribution of travel insurance, and regulations present and future… Working towards 2007

Ian Holloway, Head of Compliance – AXAI

Ian briefed us on the new Financial Services Authority (FSA) regulations and how he felt they would impact on the travel insurance industry as a whole. The regulator’s objective is to make the customer understand what they are buying at the

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

or tour operators’ main business, they should not be made to go through all the costs of individual FSA regulation. He also believes that his members are being forced to endure layer after layer of bureaucracy, which is making it almost impossible to sell the insurance products. He believes that the end result will be that travel agents and tour operators will stop selling insurance products, and this, ultimately, will not be in the consumer’s interest.

Andy Cooper, Director General – Federation of Tour Operators (FTO) regulations on 14 January, and in the first four Andy Cooper’s premise was that he also does not timeshare owners. Mike recounts that although it regulate individually. He was told by a lawyer that: months it has already closed down one broker. agree that it is in the best interest of the public to was quite an onerous process to become licensed by “Becoming FSA regulated in order to continue selling Mike says ABTA supports some regulation, the FSA, it is worth it. His advice to ABTA was that insurance is the equivalent of applying for a but believes it should be there for a purpose they should help simplify the process for travel commercial pilot’s license because you need to fly to – to protect the public, not the industry; and agents and tour operators. Self-regulation has a bad Geneva for an important business meeting. Consider at the same time, regulation should be reputation in the UK and so regulators do have a the ABTA status the equivalent of simply buying an proportionate and not over complex. ABTA purpose. The only problem, he says, “is that the airline ticket.” feels it is capable of self-regulation as a group, FSA has some daft ideas when it comes to On the broader question of ‘Is it worth regulating to not merely on an individual basis, and that it wording!” and the FSA needs to simplify regulations. sell such a small product as travel insurance’, Mike has already put sufficient procedures in place He had some interesting quotes when first seeking categorically declared that, in their case, it certainly was. for this purpose. By September, all ABTA advice about whether they should or shouldn’t members will have to have passed an exam to prove they are competent enough to sell travel insurance. Mike thinks this is enough and that tour operators and travel agents should not be subjected to the FSA rules

discourage travel agents to sell travel insurance. By doing so, his concern is that more travellers are likely to not purchase travel insurance at all. This will work against tour operators, who want all their customers to be properly insured. However, if the Financial Services Authority (FSA) forces travel agents and tour operators to regulate individually, he fears that it won’t be financially viable for them individually. His argument is that ‘if a system ain’t to sell travel insurance, whether it is in the broke, then don’t try and fix it’. consumer’s interest or not. He pointed out that in Mike quoted Mintel statistics to bolster his argument: the grand scheme of things, travel insurance sales There are six million travel insurance policies sold in make a relatively small impact on revenue for travel the UK every year. From this figure, there are only agents and operators, and revenue from this source 1,300 complaints, and out of 1,300 complaints to is continuing to decline.

Jonathon Cooper, Manager Travel – Accident and Health AIG (UK) Ltd

Jonathon started by pointing out that the reason the Financial Services Authority (FSA) started regulating the general insurance market on 14 January 2005 was for fairness and transparency for the consumer. He also explained that the connected contracts exemption takes travel agents and tour operators outside individual regulation, but only until 2007. The FSA regulations are obviously worrying travel agencies, but Cooper welcomes the FSA regime as he feels the move will smarten up the industry, adding professionalism. the Financial Ombudsman Service, 37 per cent were Jonathon predicted that online and offline brands will upheld, and only two were towards travel agents show further growth in the years to come. He says and tour operators. He insisted he and his that competition for the customer is going to association are not trying to be glib and that they do become fierce and the price and ease of access will intend to clamp down on any mis-selling. But he be key to securing business. He argues that as argues that as travel insurance is not travel agencies’ growth takes shape, new rules will mean standards are set, and given time, the consumer will come to recognise the FSA as a brand for quality assurance. Contrary to Ian Holloway’s stance on complaints, Jon sited a Which report written by Laurence Baxter, saying: “Our research has shown widespread mis- selling with travel agents.” His point is that it would be easy to put our heads in the sand, but regulation is here to stay, and so we all need to embrace it. At the end of the day, it is all about good business practice and professionalism.

Mike Myers, Group Director – Interval Travel

Interval Travel is the first and only travel agency that is individually licensed by the FSA. The company sells annual travel insurance to its large membership of

www.itij.co.uk International Travel Insurance Journal 24 ITICREVIEW

were shed to the backs of chairs as the The gala dinner warmth of the heavily populated room infected guests. Soon after the last courses were devoured, champagne corks popped intermittently, almost drowned out by the charming musical accompaniment from a string quartet. With some excellent dinner table company and many jokes and smiles, it was the perfect wind down to a successful ITIC. As a howling gale brushed up surf frills on the shoreline outside, in a lively hotel function room an after-

Sangrias lining the gurgling stomachs of the hungry delegates, soon to be followed with a feast of courses from goats cheese to After a small rest from the bustle of the conference, tender beef, with all the trimmings. Dinner jackets the gala dinner proved a glitzy affair, with pre dinner

dinner disco aided digestion with some of the best dancing to date at ITIC, not least demonstrated by the nimble footed Volker Lemke. If only there were ITIC awards for dance moves, we know who the winner would be!

Voyageur would like to thank the ITIC sponsors: Welcome function – Hygeia Corporation Coffee break – (day 1) Travel Guard Assist Coffee break – (day 2) RISCK Solutions Ltd., Medichek Ltd. & Wings Aeromedical Services Ltd. Badges – Clinica Benidorm Bags – Funeralcare International Post-it notes – FAI Message board – IMG Europe Gala dinner tables: Travel Assistance International Ltd. and Whitehorse Insurance Ireland

To see more pictures from ITIC, log on to www.itic.org.uk and sign up to ‘MY ITIC’

International Travel Insurance Journal www.itij.co.uk PROFILE 25 In for the long haul Robert MacMillan, MD, past President of the Travel providing supplemental private health insurance for OMA and CMA: developing home care Health Insurance Association of Canada (THIA) and services no longer paid for by government became a programmes, working with the Victorian Order of currently Senior Medical Consultant with Medipac growth industry. Nurses, serving as jail physician and medical officer International Inc, a major supplier of travel health The government cutbacks also moved MacMillan out with the Canadian Armed Forces, founding the insurance products for travelling Canadians, has front in having to explain OHIP motives and urge Peterborough Child Abuse Committee, and acting as become one of the more recognisable people in the snowbirds and other Canadians to look to the local coroner. There was plenty of competition for travel insurance industry by being agile, anxious to private sector to supplement their health insurance his attention to the family practice. Rolls Royce Barker Doctor’s Coupe, or his 1928 travel, unafraid of trying new challenges, and It was ultimately his role as coroner that led to Model A Ford Roadster. willing to try on silly cowboy hats to serve as MacMillan’s career change into the civil service in Once in the provincial civil service, MacMillan again master of ceremonies at insurance industry 1982, a change he approached after much soul kept his options open. After serving as Regional barbecue parties in the Sonoran desert. No searching and reflection. With his outside activities Supervising Coroner for eastern Ontario for five question about his variability. Milan Korcok, chief cutting in half the time he could devote to his years, he was offered the position of Assistant North American correspondent for Voyageur family practice: “The time had come to either Deputy Minister of Health responsible for publications, long-time friend and occasional return to full-time practice for the remainder of community health, which he held for two years MacMillan co-worker, sketches out some revealing my career, or branch out into another, related before requesting a transfer within the Ministry of images of a man who keeps changing his stripes career.” Health to OHIP, where, as Executive Director he He chose the latter and the ‘branching out’ would would stay until 1993, when the issue of out-of- The scene was as ironic as it was serendipitous. Bob take him into areas he had never dreamed of. country insurance coverage was still on simmer. MacMillan sat in shirtsleeves in a friend’s back yard in Again, serendipity played a role because as Chief Florida, fondling a cold drink in one hand and cradling Coroner for Eastern Ontario, MacMillan would MacMillan meets travel insurers head on his cell phone in the other. He couldn’t help smiling work out of Kingston, his home town, the area he Invited to speak at a travel health insurance industry as he listened to his partners in Toronto complain had always loved. (Ontario has a widely diversified seminar in Florida, MacMillan reiterated that about their wretched January weather. He had government bureaucratic structure, with various government was not about to pull back from its recently arrived in Fort Lauderdale to pick up the departments and divisions headquartered decision to restrict coverage of out-of-country ‘winter half’ of his job – managing the passage of throughout the province.) services for travelling Canadians and it was going to Canadian snowbird patients through America’s highly while travelling. That was not a totally happy At this point, MacMillan and his family – sons Ian and be up to the private sector to manage its risks in the sophisticated, and extraordinarily expensive, prospect for MacMillan, whose own mother, a Andrew, and daughters Laurel and Susan – moved to face of serious cost escalation by US hospitals. It was hospitals. confirmed Florida snowbird, was clearly ticked off by Kingston, where the family homestead would soon a tough message, but coming from the bureaucrat As President of Insurance Claims Management the out-of-country cuts. “Quit the government,” she accommodate his growing passion for acquiring and who knew OHIP best, and who knew how Systems, Inc., the Fort Lauderdale-based subsidiary commanded her son. restoring antique cars, woodworking, and demanding American healthcare providers could be, of Ingle Life and Health Assurance of Canada, Well, in a couple of years he would. Not because “Growing tomatoes that taste like tomatoes.” the message was not lost on the participants. At least MacMillan’s major problem that day was not the OHIP cut out-of-country benefits – which he feels Andrew is now a family physician in Ontario, Ian is in one of them, Robin Ingle, then President of Ingle Life weather, reliably warm and sunny at this time of year, was justified – but because, after more than a decade television production in Vancouver, Laurel is an artist and Health Assurance Company, took MacMillan but the logistics of getting an incapacitated patient of full-time government service under his belt; as and art administrator in Toronto and Susan a criminal aside for some ‘private’ chats. home to Canada from a small hospital in the desert regional provincial coroner, assistant deputy minister prosecutor in the Ontario Attorney General’s office. When MacMillan ultimately made the decision to Southwest before her condition, or medical bill, of health, and finally as executive director of OHIP; it As for his antique cars, MacMillan still likes to hit the leave the civil service and re-enter the private sector, became unmanageable. was time to move on, time to go back to the private road with his yellow and black (mostly yellow) 1933 continued on p.35 With thousands of Canadians scattered across the sector from which he had come. And so in 1993, American sunbelt – virtually all of them relying on with the burgeoning field of travel health insurance private health insurance to keep them secure, opening up before him, he remembers: “I knew the MacMillan faced the dilemma of balancing patient time was right for a final career change.” expectations of top level medical care, with his company’s economic imperative of getting First, a little history reasonable prices at American hospitals or getting Bob MacMillan was born in Toronto, the son of a those patients home where government-funded schoolteacher and a telephone company executive. health insurance would take over. Raised later in Kingston, a small city close to the For MacMillan, a medical doctor who was once banks of the St Lawrence River, about halfway Executive Director of the Ontario Health Insurance between Toronto and Montreal and only an hour’s Plan (OHIP), the publicly-funded government drive south of Ottawa, the nation’s capital, MacMillan programme that covers virtually all of Ontario’s 13 first attended McGill University in Montreal (math million residents, the interplay of public and private and physics) before taking up medicine at Queen’s financing of healthcare was part of the air he University in Kingston, where he earned his medical breathed. As OHIP’s top bureaucrat from 1989 to doctorate (MD). After graduation, MacMillan started 1993, MacMillan had actively participated in up a family practice in the village of Apsley, Ontario, government initiatives to curb abusive charges by with his wife Teresa (Tess), his former high school hospitals abroad, particularly those in the US. And sweetheart and trained nurse, running the office. now, as President of ICMS, he was doing the same In 1970, influenced by a groundswell to family thing, but as a player in the private, not the public, practice throughout Canada, MacMillan and four sector. And here’s where the serendipity comes in. other physicians set up a group family practice in the In the late 1980s and early 1990s, Canadian city of Peterborough – one of the first of its kind in provincial health plans paid most of what they were the province and soon a model for others charged by foreign hospitals treating visiting nationwide. Canadians, no questions asked. While in family practice, MacMillan would become In time, some American-based drug and alcohol increasingly active in medical association affairs, first as addiction treatment centres began openly recruiting Executive Board Member of the Peterborough Canadian addicts with promises of sure, quick cures County Medical Society, then its president, then as in pleasant, bucolic surroundings, all expenses paid District Director for the Ontario Medical Association by OHIP. But when audits showed millions of (OMA), then Chairman of the OMA’s board, and Canadian taxpayer dollars flowing into these US 28- finally in 1981 and ‘82 serving as OMA President. day programmes – some of them set up exclusively Concurrent to his OMA appointments, MacMillan to grab what they could from OHIP’s coffers – also served as a board member of the Canadian health policy bureaucrats, MacMillan among them, Medical Association (CMA). slammed shut the gates on the cross-border In those days, as now, medical association politics in recruiting by placing stringent limits on what OHIP Canada was turbulent. Healthcare was a provincial would pay out-of-country providers for healthcare jurisdiction, and provincial medical associations had to treatment to travelling Canadians. That share quickly negotiate their physician-member fee schedules went from about 90 per cent to less than 10 per union-style with government budget watchdogs. The cent. Tough news for itinerant drug abusers, but proceedings were often rough and tumble – fought what about the 500,000 Canadian senior snowbirds quite publicly in the media. No place for shrinking who spent their winters in the US? What about violets. The demands on association presidents and them? executives was unrelenting. All of a sudden, out-of-country health insurance During his 15 years in Peterborough, MacMillan became front-page news and almost as quickly covered many bases in addition to his work with the

www.itij.co.uk International Travel Insurance Journal 26 WORLDMARKETS

Small it might be, but Denmark has a strong economy and a population that loves to travel, as Roger St Pierre reveals DanishDanish sizzlesizzle

Post 9/11 trauma, Denmark, like other European nations, experienced a decline in outbound tourism that is only now beginning to recover. In 2003, there were some 4.88 million Danish resident departures, down 55,400 – or 1.1 per cent from the previous year. That year, France was alone among European destinations in experiencing an increase of Danish visitors. But the Danes are a sophisticated people, with literacy rate running at an impressive 100 per cent among everyone over the age of 15. They are internationally minded and like to venture abroad – after all, their nation at one time had colonies as far away as the Caribbean. And, even for domestic travel needs, these well-educated and sophisticated people understand the value of having proper travel insurance coverage.

An international affair shop within its own borders. Being home-based in establishment directives of the early The Danish insurance industry is highly competitive, what is a small, very compact country, the industry 1970s were enacted into Danish comprising around 250 competing companies, has long experienced intense competition from legislation soon after their adoption by including some 30 branches of foreign companies. insurers who do not even have offices in the country Brussels. These directives imposed on Among the biggest locally headquartered insurers are but are based in neighbouring states. Danish insurance companies the fundamental Tryg, Topdanmark, Sygforsikringen Danmark, ALKA, legislation has long allowed companies and individuals requirements for authorisation, capital Nykredit Forsikring, Laerstandens Brandforsikring, to place their insurance business in such manner, just adequacy ratios, the preparation of KommuneForsikring and Forsikringsoplysningen, as they will turn to Sweden to buy furniture or viable business plans and the right to mostly headquartered in bustling Copenhagen. Germany to purchase a new car, so they will shop establish branch offices. As a European Union member, Denmark has not beyond borders for insurance cover. Danish law does not, at present, only experienced the aforementioned influx of This native-born commitment to a truly open market permit local life and non-life business to insurers from other European markets setting up was exemplified when the EU’s insurance be underwritten by the same company, with the exception of health and accident insurance, which may form part of a life assurer’s product portfolio. However, since 1994, insurance companies and they insure. branch offices authorised to operate in any other EU This means that non-life insurers can deduct member state are permitted to sell all forms of unearned premium provisions, loss reserves and insurance within Denmark, with each company’s bonus equalisation reserves. The allowable deduction total operations across the EU being supervised by is strictly limited to an amount equalling tax-exempt the relevant authorities in the country where its head dividends and tax-exempt gains on property and office is actually located. share portfolios to the extent that such pre-exempt It is worth noting that local marketing regulations and income is spent on pay-outs to insured persons, consumer protection rules must be observed in host provisions and pension investment returns tax. countries like Denmark. Generally, foreign insurers who open for business in It’s a tough market. The Danish Insurance Denmark have their income for Danish tax purposes Association’s most recently received annual report calculated as that part of their total income that can pointed out that while the economy was showing be attributed to gross premiums earned within that good signs: “The non-life insurance market posted a country. loss for 2002 and, while showing some There are other local considerations to be taken into improvement in 2003. It has a long way to go before account, however. Insurance companies have to it can generally be found to be profitable in line with comply with the general provisions of the very strict other activity areas in the private business Danish Marketing Practices Act, which prohibits ‘the communities.” use of false, misleading or unreasonably inadequate information to influence supply and demand’. Flavour of the month There are also strict rules on comparative advertising Though Denmark is a relatively small country, with and promotion, and also stringent conditions that just 5.3 million inhabitants, it has a well-developed must be complied with when making special offers. and mature insurance industry, offering a wide range Unlike in some countries, it is not allowed for of sophisticated products to business and private businesses in Denmark to market their services via customers alike. fax or e-mail unless the consumer has requested Danes tend to favour ‘package policies’ and travel is such marketing in advance. often included as a sub-section within household insurance policies that cover not only the home’s Leading by example fabric and contents, but the family’s legal costs and With a strong sense of community and of social public liabilities as well. Such deals, which can justice, the Danes maintain a strong welfare state. sometimes include travel cover, usually represent Taxation is high but open government and its financial better value for money than the purchase of accountability mean the citizen knows where the individual policies covering different risks. money is going and, while, like everyone else, they Insurance is presently VAT free in Denmark, but grumble about taxes, they generally approve of how insurers – mutuals and public limited companies alike the resultant revenue gets spent on their behalf. – are, in general, taxed in much the same way as Consequently, there is a solid middle class, with very other commercial organisations whose shares are few immensely rich citizens – and these are mostly traded publicly. Presently, Danish corporation tax resident in offshore tax havens – and no poor either. runs at 30 per cent, which is calculated on the It’s interesting that the section marked ‘People living company’s positive taxable income. However, a below poverty line’ on one recent international special rule allows insurance companies to deduct survey of the world’s nations, bears the notation provisions for their potential liabilities towards those ‘N/A’ (‘not applicable’) when it comes to Denmark!

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

Once the homebase for legions of fierce Viking and refurbishment, textiles and electronics, as well as marauders – the scourge of Europe for centuries – the superb and world-famous Copenhagen porcelain. Denmark later became a major Scandinavian power, The country also produces paper, silverware, watches thanks to its control of the entry from the North Sea and various consumer durables. into the Baltic Sea via the Skagerrak and Kattegat and Denmark’s key trading partners are, for imports: the Straits of Denmark. Denmark’s ongoing Germany (24.2 per cent), Sweden (12.4), prosperity was solidly established in the great age of Netherlands (7.5), UK (6.4), France (6), Norway the Hanseatic League when backs turned at last on (4.6) and Italy (4.0); for exports: Germany (16.1 per rape, pillage and plunder and minds turned to trade. cent), Sweden (12), UK (7.4), Norway (7.0), US A constitutional monarchy, Denmark is a thoroughly (6.2), France (5.4), Netherlands (4.1). modern country that has always been right at the The weather norm is humid and overcast, with cool forefront of the general political and economic summers and mild but windy winters. integration of Europe since joining the then Around a quarter of the nation’s population lives in European Economic Community in 1973. However, the great port city of Copenhagen, which more than like Britain, it opted out of EMU (European lives up to its ‘Wonderful, wonderful’ epithet and Monetary Union) and has not adopted the euro, but faces the Swedish city of Malmo, just across the has instead retained its own currency, the Danish Kattegat, whose expanse of water is now spanned by a combination tunnel and bridge that has served to create a vibrant new pan-national economic region. Where ferries once plied, modern bridges now serve as vital arteries linking the nation’s mainland and islands. Denmark has a clearly bright future. Life expectancy runs at an impressive 80.03 years for women and 77.62 years for men, the nation’s current median age being 39.47 years. Purchasing power runs at US$32,200 per capita (2004 figures), while inflation stands at a modest 1.4 per cent; annual Krone – though this is tied to the euro. growth rate is 2.1 per cent and unemployment is The country also opted out of other sections of the running at around six per cent. Denmark is a net Maastricht Treaty, including European defence co- exporter of food and energy and enjoys a operation and issues concerning certain areas of comfortable balance of payments. justice administration and of home affairs. Denmark First unified in the 10th century, Denmark in turn became a member of NATO in 1949. was occupied by and occupied its Scandinavian neighbours, Sweden and Norway. Since 1949, it has Industrious nation been a constitutional monarchy. In June 1953, the The nation is spread over the Jutland peninsula, 1849 constitution was amended to allow for a which sticks up like a finger above Germany – with female head of state (Queen Margrethe II came to which country Denmark has its only land border, a the throne in 1972) and a single-chamber legislature. mere 68 kilometres long – and the islands of The currently ruling Liberal Party came to power, Zeeland, on which the capital city of Copenhagen with 29 per cent of the vote, in February this year stands, Funen, whose main town is Odense, and the next general election is to be held in erstwhile home of Hans Christian Andersen, and February 2009, with expectations of a long period of little Lolland. The Baltic island of Bornholm is also political stability up to and probably beyond that date. part of Denmark. The Liberal Party presently holds 52 of the Total land area of the country is just 42,394 square parliamentary seats, against 47 for the Social kilometres, which is slightly less than the size of Democrats, 24 for the Danish People’s Party, 19 for the Scotland – but that excludes the semi-independent Conservatives, 16 for the Social Liberal Party, 11 for the Danish protectorates of the Faroe Islands and Socialist People’s Party, six for the Unity List, plus two Greenland – which is larger than Australia and rates seats for Greenland and two for the Faroe Islands. as the world’s largest island! Since it consists of a Most Danes are both liberal thinking (with a small ‘l’) peninsula and three main islands, Denmark has a and conservative (with a small ‘c’), a national trait relatively long coastline, at 7,314 km. which leads to generally consensual government. The country ranges from flat farmland and marshes They are at the same time fiercely independent yet to gently rolling plains, its highest point being Yding actively European; they are modernists yet guardians Skovheoj, which rises impressively from a major lake of tradition – which, in insurance terms, means they just outside Silkeborg, on Jutland, but is a mere 173 are good prospects, being outward looking and metres above sea level! inventive while liking to keep their options open, With agriculture still important, 54 per cent of their reserves intact and their backs covered! Denmark’s land mass is still arable, and the rest given As a result of high GDP per capita, generous welfare over to forest, metropolitan usage and such benefits, a low Gini index and long-term political industrial production, petroleum, natural gas, salt stability, the average Dane enjoys a standard and production and the extraction of sand, chalk, stone quality of living that is presently topped by no other and gravel. Key agricultural products are barley, nationality. However, the sharp decline in the ratio of wheat, potatoes, sugar beets, pork, dairy products workers to retirees is a cause for long-term concern, and fish. as it is in other European nations. There is a manufacturing base that includes iron and As for travel, well the Danes have always been a steel manufacture, food processing, machinery and mobile nation and Copenhagen airport’s status as transportation equipment, wood products, shipbuilding one of Europe’s busiest reflects the potential for a thriving travel insurance sector.

Further information on the Danish travel insurance industry may be obtained from Danish Insurance Information, which is the information department of the Danish Insurance Institution and has been established to disseminate knowledge about the industry, its products and its views.

www.itij.co.uk International Travel Insurance Journal 28 FEATURE Island dangers

They are always the most eye-catching and enticing of all the posters in the travel agency – sparkling blue seas, palm trees and wide smiles on the faces of the locals – but dangers lurk. In the final part in our series on island safety, Miles Clarke submerges himself in Indian and Pacific Ocean island life

The tropical island getaway, with its quiet lagoons, that has driven would-be sun-seekers to alternative palm trees and coral reefs, is among the most destinations. Fiji has had to ‘buy’ back tourist business seductive of holiday options for the Frankfurt bank from Australia and New Zealand through deep teller, the Birmingham secretary, and the bus driver discounting on the part of the hotel, resort and in Stockholm. It’s everything that’s different from the airline industry. It’s a tactic that has worked well and daily humdrum life in affluent countries. there is evidence the same thinking is being applied The posters, however, tell only one side of the story, in the tsunami-ravaged areas. and when the wheels fall off during an island escape, There are also cultural and legal sensitivities that they often stay severely off. need to be taken into account. For example, in Bali, The 26 December 2004 tsunami, which has ravaged only Balinese doctors trained in the country are able countries of the Indian Ocean, did not spare the to work in the local hospitals. Western medically- islands in its path. Lives and property were taken on trained doctors can only take a background role in the Maldives, Nicobar, the Andamans and the the treatment of patients, so consequently the Seychelles. There’s evidence, however, that these decision to evacuate to Jakarta, Darwin or Perth has isolated communities were among the last to receive to take these restrictions into account. However, humanitarian aid in the wake of the catastrophe. developments in modern IT mean X-rays and other mostly overseas revellers. Visitor numbers are now a motor vehicle accident in Samoa. We wanted to In the South Pacific, the islands of Fiji, Vanuatu, the diagnostic tools can be emailed off to hospitals and only fractionally below their pre-bomb levels, thanks evacuate her to Auckland for attention to her Solomons, Cook and Tonga are all subject to severe emergency centres in other parts of the world for to sustained promotion and incentives to the travel fractured pelvis, but were in a situation where her cyclonic conditions, which reap havoc with tourism assessment and second opinions. industry and their customers. blood pressure was dropping. The reality was that infrastructure, which is often far more expensive to A co-ordinating doctor with International SOS, based we would have had to fly an air ambulance up from construct and maintain than in mainland holiday Emergency conditions in Sydney, Dr Richard Hurst, says tropical islands Auckland to collect her. Time was our enemy. The locations. In addition, a number of them have Bali’s tourism industry was hammered in the wake of pose a range of particular challenges: “Remoteness entire exercise would have taken 12 hours at least, suffered levels of political instability in the past decade the 2002 bombing in Kuta in which 200 people died, from centres of medical excellence is always an issue, so the decision was taken to operate in Samoa. It’s especially when holidaymakers might be located on a always a matter of taking the most medically resort island some distance from the main island, as appropriate decision taking into account the logistical is often the case in Fiji. Fiji has some quite good issues and, of course, the cost of the exercise.” medical facilities in the main centres such as Suva, Nadi, Sigatoka and Remote control Lautoka, but there’s virtually nothing Management of common in the way of medical services illnesses are often complicated beyond these towns. by remoteness, where water- “They are not equipped for serious borne diseases occur frequently. cardiac cases, plastic surgery and Ear infections are not tending to seriously injured people uncommon in tropical parts and after motor accidents. In these can be something of a nightmare cases, we need to be looking at for medical assistance companies evacuation to Auckland in New if an air evacuation is being Zealand or one of the major considered. Even pressurised centres on the east coast of aircraft are forced to fly at low Australia, such as Brisbane, Sydney altitude to avoid air pressure or Melbourne.” problems and severe pain for the patient. This can For the medical professional handling the case on affect the performance of the aircraft, with higher fuel behalf of the travel insurance company, good consumption, turbulence and consequently reduced knowledge of the medical facilities, capability and range adding significantly to the cost of the flight. logistical issues are essential, and emergency medical In non-urgent situations of this nature, it is often best services are constantly developing contingency plans. to let local treatment proceed, with the patient and Transport is always uppermost in the mind of a co- family staying on until the condition improves ordinating doctor managing a medical emergency on sufficiently to allow repatriation by commercial behalf of a travel insurance company in a remote aircraft. location. Dr Richard Hurst explains: “We had a case Another challenge is instances where divers might recently of a young woman who was badly injured in have contracted the ‘bends’ and need to be

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

transported to hospital in pressurised chambers, Flying Doctor Service. For these pioneers, virtually all some of which may not be in perfect working order. their medicine was practised remotely, with “We also have situations where commercial flights innovation an integral part of how they went about are fully booked at a certain time of year and it’s their business. Their services are used extensively for difficult to obtain, say, six seats to load a stretcher. the inhabited islands off the Australian coast, [You] have to have a lot of local knowledge and providing relief to indigenous islanders, as well as the forward planning in place,” said Dr Hurst. affluent visitors to Australia’s island resorts, with the “[You] also need to have a good understanding of the Whitsunday island group off the North Queensland local conditions and timing when considering an air coast being the most notable. evacuation. We may well have the aircraft Never is comprehensive travel insurance cover appropriate for the task, but many remote islands do more important than when taking an island holiday. not have runway lighting, so we need to time our What might be a simple misadventure in terms of an arrival for first light. In some instances, we find that accident on an unfamiliar road, lacerations sustained refuelling isn’t always immediately available, so all on coral reefs, an injury from a falling coconut (or “…when it comes to island holidays, the fine print needs to be thoroughly analysed to ensure the appropriate cover is sold.”

these issues need to be taken into account when something as devastating as a shark attack) will take embarking on a costly evacuation. Weather on a completely new dimension if it occurs on an conditions also play an important part in the success island. The only places in the Indian and Pacific or otherwise of a medical emergency situation and, oceans where complete First World medical with island transfers, we might opt for a speedboat assistance is available are the islands of Hawaii. to do the job where normally a flight might be called for.” The usual problems Pre-planning and a thorough understanding of local legal Travel insurance cover promised by the credit card companies when buying an air ticket through them can be useless in practical terms. If your clients don’t have comprehensive cover appropriate to the destination, they could find themselves financially stung or crippled by the cost of evacuation to more specialised medical centres. As was reported in ITIJ 44 Aussie insurer fights landmark lawsuit, an Australian family had a long and unsuccessful effort to achieve a financial settlement in the wake of the death of a family member in a canyoning disaster in Switzerland. The cover only applies to travel between the main destinations, so on an island holiday there is a case for travel insurers not to pay up in the event of an accident occurring during leisure activities. What requirements when dealing with the authorities in might be a minor accident at home can become a remote locations is a must. Where it might be quite logistical nightmare and major cost, and this is the appropriate for a qualified nurse to accompany a patient crux of some major insurance disputes. Even during an evacuation on a chartered air ambulance or occurrences such as a collapsed tooth filling may be commercial flight, some jurisdictions will insist on a denied as a travel insurance claim from a regular doctor, as nurses have no authority to administer drugs policy due to the fact it can be judged as a ‘pre- or manage the patient in a certain way. existing condition’. Australian emergency medicine professionals have a Travel consultants are able to access significant significant advantage over many of their counterparts commissions from promoting travel insurance to in the Northern Hemisphere due to the enormous their clients and when it comes to island holidays, the body of knowledge and experience gained over fine print needs to be thoroughly analysed to ensure more than three quarters of a century by the Royal the appropriate cover is sold.

www.itij.co.uk International Travel Insurance Journal 30 SERVICEDIRECTORY To have your company listed in the Service Directory email: [email protected]

AIR AMBULANCE AIR AMBULANCE cont. AFRICA Medic’Air International Dr Herve Raffin – General Manager AMREF Flying Doctor Service Dr Bettina Vadera – Medical Director 35 Rue Jules Ferry [email protected] 93170 Bagnolet www.medic-air.com Wilson Airport [email protected] Paris Tel: +33 1 4172 1414 LangataRoad www.amref.org FRANCE Fax: +331 4857 1010 PO Box 18617 Tel: +254 20 600 090 Nairobi Fax: +254 20 344 170 KENYA Medical Jet Services & Partner W Dichtl Radetzkystr 19 [email protected] Netcare 911 Aeromedical Shane Marais Vienna www.medicaljetservice.com 1030 Tel: +43 1 713 2799 Netcare 911 House [email protected] AUSTRIA Fax: +43 1 713 2799-19 49 New Road www.netcare911.co.za Halfway House Tel: +27 11 254 1392 Midrand 1685 Fax: +27 11 254 1405 Swiss Air Ambulance/REGA Walter Stunzi – PR/Marketing Mgr SOUTH AFRICA PO Box 1414 [email protected] Zurich Airport www.rega.ch AUSTRALASIA CH-8058 Tel: +41 333 333 333 SWITZERLAND Fax: +41 44 654 3590 Medical Wings Jarin Kiatfuengfoo – Director

222 Room 3602 [email protected] Bangkok Int Airport www.medicalwings.com Tyrol Air Ambulance Jakob Ringler – Managing Director Viphavadeo-Rangsit Rd Tel: +662 247 3392 PO Box 81 [email protected] Sikan, Donmuang Fax: +662 535 4355 A-6026 www.taa.at Bangkok 10210, THAILAND Innsbruck Airport Tel: +43 512 224 220 AUSTRIA Fax: +43 512 288 888 South Pacific Air Ambulance Simon Barton – General Manager Ops

NEW ZEALAND [email protected] AUSTRALIA Tel: +649 256 9000 NORTH AMERICA SINGAPORE Fax: +649 256 9111 Aerojet Stuart Hayman – President

4631 NW 31st Ave #220 [email protected] Ft Lauderdale www.aero-jet.com EUROPE FL 33309 Tel: +1 954 730 9300 USA Fax: +1 954 485 6564 Aeromed 365 Ltd Alida Benton – Managing Director

Worth Corner Business Cntr [email protected] Air Ambulance Professionals, Inc. Brian L. Weisz – President Turnershill Road www.aeromed365.com Pound Hill, Crawley Tel: +44 8707 596 999 Ft. Lauderdale Executive [email protected] W Sussex RH10 7SL Fax: +44 8707 559 995 1535 South Perimeter Rd www.airambulanceprof.com UK Hangar 36B Ft. Lauderdale Tel: +1 954 491 0555 Florida 33309 Fax: +1 954 491 6114 DRF German Air Rescue Frank Spirgatis – Director, Fixed Wing USA

Raiffeisenstr 32 [email protected] Air Ambulance Specialists, Inc. Donald Jones – President 70794 Filderstadt www.german-air-rescue.de GERMANY Tel (24hr): +49 711701070 8001 S.Interport Blvd. [email protected] Suite 250 www.airaasi.com Fax: +49 711701071 Englewood Toll Free: +1 800 424 7060 CO 80111 Tel: +1 720 875 9182 USA Fax: +1 720 875 9183 Euro-flite Air Ambulance Juani Missonen – Coordinator – Helsinki International Airport [email protected] Air Ambulance Worldwide Inc. Mark Jones President PO Box 187 Tel: +358 20510 1900 35246 US Hwy 19 North [email protected] FIN-01531 Fax: +358 20510 1901 #210 www.airambulanceworldwide.com Vantaa Palm Harbor Tel: +1 727 781 1198 FINLAND Florida 34684 Fax: +1 727 786 0897 USA FAI – Flight Ambulance International Sven Mueller – Operations Manager Air Trek Air Ambulance David Bump – Vice President Flughafenstrasse 100 (GAT) [email protected] D-90411 Nuremberg www.flightambulance.com 28000 A-5 Airport Road [email protected] GERMANY Tel: +49 911 36009 0 Punta Gorda www.medjets.com Fax: +49 911 36009 59 FL 33982 Toll free: +1 800 633 5387 USA Tel: +1 941 639 7855

Global Medical Support Otto Karud – Marketing Director Canadian Global Air Ambulance Jeff McIntosh – President Ullevaal University Hospital [email protected] 0407 Oslo www.globalmedicalsupport.com Toronto [email protected] NORWAY Tel: +47 22 96 50 50 Winnipeg www.canadianglobalair.ca Telfax: +47 22 96 50 51 Vancouver Toll Free: +1 800 563 3822 Tel: +1 204 888 5555 Fax: +1 204 888 9111 IFRA Bernhard Fantner – Assistant to Director Global Air Response Tom Cox – Director of Business Bahnhofplatz 13/5 [email protected] 7355 S Peoria Street [email protected] POB 160 www.ifra.at A3/ Suite 209 www.airresponse.net 3500 Krems Tel: +43 2732 825 610 Englewood Tel: +1 800 631 6565 AUSTRIA Fax: +43 2732 851 01 CO 80112 Fax: +1 888 631 6565 USA

Luxembourg Air Ambulance Andy Breeden – Operations Skyservice Lifeguard Air Ambulance David Ewing – VP Int Business Dev

175A, rue de Cessange [email protected] 9785 Avenue Ryan [email protected] L-1321 www.air-ambulance.lu Montreal www.skyservice.com LUXEMBOURG Tel (24 hr): +352 420 440 1 Quebec Tel: +1 514 497 7000 Fax: +352 420 440 366 H9P 1A2 Fax: +1 514 636 0096 CANADA

International Travel Insurance Journal www.itij.co.uk call +44 (0) 117 925 5151 To make an alteration to a listing email: [email protected] SERVICEDIRECTORY 31 ASSISTANCE COMPANIES ASSISTANCE COMPANIES cont.

AFRICA Global Voyager Assistance Costas Danilenko – CEO

AMREF Flying Doctor Service Dr Bettina Vadera – Medical Director PO Box II [email protected] 125124 www.gva.ru Wilson Airport [email protected] Moscow Tel: +7 095 775 0999 Langata Road www.amref.org PO Box 18617 Tel: +254 20 600 090 RUSSIA Fax: +7 095 775 0998 Nairobi Fax: +254 20 344 170 KENYA Goral Assistance Natalie Gankin – Network Manager Connex Assistance Egypt Lara Helmi – Int Network Director Corex House [email protected] Office II [email protected] PO Box 12815 www.goralassist.com Ist Floor www.connexassistance.com Hertzlya Industrial Park Tel: +97 299 579 930 6 Sad El Aali Street Tel (24hr): +2 02 336 0005 Dokki, Cairo Fax (24hr): +2 02 762 0003 46733 Fax: +97 299 579 931 EGYPT ISRAEL

Europ Assistance South Africa Diana Sharpe – Mngr Medical Operations MK International Emergency Services Minas Kaloumenos – General Manager

24 Napier Road [email protected] 95, Ioanninon Street [email protected] Richmond www.europassistance.co.za 10444 Athens Tel: +30 210 5154600 Johannesberg Tel: +27 11 359 5000 GREECE Fax: +30 210 5131660 SOUTH AFRICA Fax: +27 11 359 5002

AUSTRALASIA TBS Team 24 d.o.o Tomaz Bezensek – Marketing Manager Customer Care Pty Ltd Janine Benson – Operations Manager Ljubljanska Ulica 42 [email protected] Level 3 [email protected] 2000 Maribor www.tbs-team24.com 60 Miller Street www.customercare.com.au North Sydney 2060 Tel: +612 9202 8222 SLOVENIJA Tel: +386 2618 2301 NSW Fax: +612 9202 8220 (covering Croatia, Bosnia Fax: +386 2618 5800 AUSTRALIA and Herzegovina & Serbia) First Assistance Mary-Jo McDonald – Sales & Marketing Mgr NORTH & CENTRAL AMERICA PO Box 17-310 [email protected] Assured Assistance Inc. Martha Turnbull – Director of Operations Greenlane www.firstassistance.co.nz Auckland Tel: +64 9 356 1650 6880 Financial Drive [email protected] NEW ZEALAND Fax: +64 9 525 1278 Mississauga Tel: +1 905 816 2495 Ontario Fax: +1 905 813 4719 Global Assistance & Healthcare Mario Babin – Chief Executive Officer L5N 7Y5 CANADA Jalan Pattimura [email protected] 15 Kebayoran Baru www.global-assistance.net – Executive Vice President Jakaita Tel: +62 21 725 8115 Global Excel Management Brian Allatt 12110 Fax: +62 21 725 7961 73 Queen Street [email protected] INDONESIA Lennoxville, Quebec www.globalexcel.ca Medical Wings Jarin Kiatfuengfoo – Director JIM IJ3, CANADA Tel: +1 866 566 1130 4242 Cranmore Court Fax: +1 819 566 8335 222 Room 3602 [email protected] Belle Isle, Fl 32812, USA Bangkok Int Airport www.medicalwings.com Viphavadeo-Rangsit Rd Tel: +662 247 3392 Sikan, Donmuang Fax: +662 535 4355 Medex Assistance Corporation Linda McGee – SVP of Sales Bangkok 10210 THAILAND 8501 LaSalle Road [email protected] South Pacific Air Ambulance Simon Barton – General Manager Ops Suite 200 www.medexassist.com Baltimore Tel: +1 410 453 6300 NEW ZEALAND [email protected] MD 21286 Fax: +1 410 453 6301 AUSTRALIA Tel: +649 256 9000 USA SINGAPORE Fax: +649 256 9111 TMCA Margaret Whartom – Ops Manager

EUROPE & THE MED 217 Broadway [email protected] Suite 600 www.tmcatravel.com Antalya Assistance Murat Arslanoglu – Network Manager NYC Tel: +1 212 964 8580 NY 10007 Fax: +1 212 406 1520 Muratpasa Mah. [email protected] USA Adnan Menderes Bulvari 19 www.fempatr.com Gazihan K:4 D:21 Tel: +90 242 243 6219 Antalya Fax: +90 242 248 7724 World Travel Protection Canada Inc. Dr Ron Mayer – President & Chf Med Officer TURKEY 400 University Avenue [email protected] ARC Transistance Hans Biekmann – Network Director 15th Floor www.wtp.ca Toronto Tel: +1 416 977 3565 11 Avenue Pleiades [email protected] Ontario M5G IS7 Fax: +1 416 205 4676 B-1200 Brussels www.arctransistance.com CANADA BELGIUM Tel: +32 2 776 04 70 Fax: +32 2 776 04 99 To advertise your company in the Atlantic Assist Adriano Gouveia – Operations Manager Service Directory Rua da Alfandega 10-2.D [email protected] PO Box 750 www.atlanticassist.com 9000-056 Funchal Tel: +351 291 214 200 call Jude or Dave on Madeira Fax: +351 291 214 202 PORTUGAL +44 (0)117 925 5151

www.itij.co.uk International Travel Insurance Journal 32 SERVICEDIRECTORY To have your company listed in the Service Directory email: [email protected] FUNERAL DIRECTORS MEDICAL COST CONTAINMENT cont.

EUROPE Health Systems International Peggy Novotny – VP / Gen Mng. Int Bus. Defin Funeral Services Murat Arslanoglu – Network Manager 5975 Castle Creek Parkway [email protected] Suite 100 www.us-hsi.com Muratpasa Mah. [email protected] Indianapolis Tel: +1 317 806 2000 Adnan Menderes Bulvari 19 www.fempatr.com IN 46250 Fax: +1 317 806 2033 Gazihan K:4 D:21 Tel: +90 242 248 8389 USA Antalya Fax: +90 242 248 7724 TURKEY Hygeia Corporation Joe Radigan – Chief Operating Officer Funeraria Officia Roberto Zega Cristina Zega – General Manager 15500 New Barn Road [email protected] Suite 200 www.hygeia.net Via Clelia 26-28 [email protected] Miami Lakes Tel: +1 305 594 9291 Roma www.zega.it FL 33014 Fax: +1 305 594 9201 ITALY Tel: +39 067 840 300 USA Fax: +39 067 802 488 Medsave USA Donald Moyle – Chief Marketing Officer Funeralcare International Roger Waddington 1400 Old Country Road [email protected] Suite 109 www.medsaveusa.com 221 Upper Richmond Road [email protected] Westbury Tel: +1 516 622 1700 Putney Tel: +44 20 8788 5303 NY 11590 Fax: +1 516 622 1733 London SW15 6SQ Fax: +44 20 8788 2525 USA UK OneWorld Assist Calvin Ball – Business Development Manager

Global Networks Funeral Assistance Cristina Almudi – Managing Director 10th Floor [email protected] 6081 No. 3 Road www.oneworldassist.com 22 Falcon Crescent [email protected] Richmond, BC Tel: +1 604 278 4108 Enfield www.globalnetworksfa.com V6Y 2B2 Fax: +1 604 303 2142 EN3 4LT Tel: +44 208 350 0645 CANADA UK Fax: +44 208 482 0742 Star Healthcare Network Inc. Gigi Galen – President 850 Seventh Avenue [email protected] Kenyon Christopher Henley Christopher Henley – MD Suite #803 www.starhealthcarenet.com New York 10019 Tel: +1 212 581 8228 83 Westbourne Grove [email protected] USA Fax: +1 212 581 8272 Bayswater www.kchrepatriation.com London W2 4UL Tel: +44 20 7313 6920 UK Fax: +44 20 7313 6999 TMCA Margaret Whartom – Ops Manager 217 Broadway [email protected] MK Funeral & Transportation Services Minas Kaloumenos – General Manager Suite 600 www.tmcatravel.com NYC Tel: +1 212 964 8580 95, Ioanninon Street [email protected] NY 10007 Fax: +1 212 406 1520 10444 Athens Tel: +30 210 5154600 USA GREECE Fax: +30 210 5131660

Rowland Brothers International Steve Rowland/ Tony Rowland MEDICAL ESCORT ON COMMERCIAL AIRLINES 299-305 Whitehorse Road [email protected] AFRICA West Croydon www.rowlandbrothersinternational.co.uk Surrey Tel: +44 20 8684 2324 AMREF Flying Doctor Service Dr Bettina Vadera – Medical Director CR0 2HR Fax: +44 20 8684 8000 UK Wilson Airport [email protected] Langata Road www.amref.org Servilusa Vanda Castro – Manager Int Dept PO Box 18617 Tel: +254 20 600 090 Nairobi Fax: +254 20 344 170 Agencias Funerarias SA [email protected] KENYA International Dept. www.servilusa.pt Rua do Entreposto Industrial Tel: +35 121 470 6300 ASIA 8-2 Esq, 2610-135 Amadora Fax: +35 121 470 6499 PORTUGAL Medical Wings Jarin Kiatfuengfoo – Director 222 Room 3602 [email protected] Bangkok Int Airport www.medicalwings.com Viphavadeo-Rangsit Rd Tel: +662 247 3392 MEDICAL COST CONTAINMENT Sikan, Donmuang Fax: +662 535 4355 Bangkok 10210 THAILAND EUROPE EUROPE ChargeCare International Philip Marshall – Director of Operations Medic’Air International Dr Herve Raffin – General Manager PO Box 18 [email protected] Holsworthy www.chargecare.co.uk 35 Rue Jules Ferry [email protected] EX22 7WB Tel: +44 1409 261 368 93170 Bagnolet www.medic-air.com UK Fax: +44 1409 261 633 Paris Tel: +33 1 4172 1414 FRANCE Fax: +33 1 4857 1010 NORTH AMERICA NORTH AMERICA Global Excel Management Brian Allatt – Executive Vice President Air Ambulance Worldwide Inc. Mark Jones – President 73 Queen Street, Lennoxville [email protected] Quebec, JIM 1J3, CANADA www.globalexcel.ca 35246 US Hwy 19 North [email protected] 4242 Cranmore Court Tel: +1 866 566 1130 #210 www.airambulanceworldwide.com Belle Isle, FL 32812 Fax: +1 819 566 8335 Palm Harbor Tel: +1 727 781 1198 USA Florida 34684 Fax: +1 727 786 0897 USA Global Medical Management Raija Itzchaki – Assistant VP Marketing Global Air Response Tom Cox – Director of Business 7901 SW 36th Street [email protected] Suite 100 www.gmmusa.com 7355 S Peoria Street [email protected] Davie Tel: +1 954 370 6404 A3/ Suite 209 www.airresponse.net FL 33328 Fax: +1 954 370 8613 Englewood Tel: +1 800 631 6565 USA CO 80112 Fax: +1 888 631 6565 USA

International Travel Insurance Journal www.itij.co.uk call +44 (0) 117 925 5151 To make an alteration to a listing email: [email protected] SERVICEDIRECTORY 33 AIR AMBULANCE INTERIOR HOSPITALS

Air Ambulance Technology Egon Kuntner – President Hospital Clinica Benidorm Ana DaPaz Brown – Medical Director

A-5282 [email protected] Avenida Alfonso Purchades 8 [email protected] Ranshofen www.airambulancetechnology.com 03500 Benidorm www.clinicabenidorm.com AUSTRIA Tel: +43 7722 85051 Alicante Tel: +34 96 585 3850 Fax: +43 7722 85051-22 SPAIN Fax: +34 96 586 4345

MediClub Co Ltd. Dr I Khalilbekov – Dep. General Mgr

CLAIMS MANAGEMENT STR. 45 U.Hajlbekov [email protected] AZ 1010, Baku www.mediclub.az Global Assistance & Healthcare Nathan Hannah – TPA Mgr Asia/Pac Azerbaijan Tel: +99412 49709 11/12/13 AZERBAIJAN REPUBLIC Fax: +99412 49870 96 Jalan Pattimura [email protected] 15 Kebayoran Baru www.global-assistance.net Jakaita Tel: +62 21 725 8115 12110 Fax: +62 21 725 8951 MEDICAL PROVIDERS INDONESIA AMREF Flying Doctor Service Dr Bettina Vadera – Medical Director Global Excel Management Brian Allatt – Executive Vice President Wilson Airport [email protected] 73 Queen Street, Lennoxville [email protected] Langata Road www.amref.org Quebec, JIM 1J3, CANADA www.globalexcel.ca PO Box 18617 Tel: +254 20 600 090 4242 Cranmore Court Tel: +1 866 566 1130 Nairobi Fax: +254 20 344 170 Belle Isle, FL 32812 Fax: +1 819 566 8335 KENYA USA Atlantic Assist Adriano Gouveia – Operations Manager Rua da Alfandega 10-2.D [email protected] CRITICAL CARE PATIENT TRANSPORTATION PO Box 750 www.atlanticassist.com 9000-056 Funchal Tel: +351 291 214 200 Lufthansa German Airlines Doris Ehring – Product & Process Management Madeira Fax: +351 291 214 202 PORTUGAL FRA SQ/B [email protected] Frankfurt Airport Tel: +49 172 367 7929 MediClub Co Ltd. Dr I Khalilbekov – Dep. General Mgr D-60546 Fax: +49 69 690 58147 GERMANY STR. 45 U.Hajlbekov [email protected] AZ 1010, Baku www.mediclub.az Azerbaijan Tel: +99412 49709 11/12/13 AZERBAIJAN REPUBLIC Fax: +99412 49870 96 MediClub Co Ltd. Dr I Khalilbekov – Dep. General Mgr

STR. 45 U.Hajlbekov [email protected] AZ 1010, Baku www.mediclub.az Azerbaijan Tel: +99412 49709 11/12/13 MEDICAL SCREENING AZERBAIJAN REPUBLIC Fax: +99412 49870 96 Risck Solutions Ltd Ian Findlay – Commercial Director The Medical Centre [email protected] 238 Broomhill Road www.risck.co.uk Brislington Tel: +44 117 300 7007 EMERGENCY EVACUATION Bristol BS4 5RG Fax: +44 117 300 7003 UK Alba Consulting Ltd. Andrew McGill – Managing Director

14 Belvedere Gardens [email protected] Travel & Medical Insurance Services Michael J Turner – MD Crowborough www.albaconsulting.org 1st Flr Suite, West House [email protected] East Sussex Tel: +44 1892 610 560 46 High Street www.travelandmedical.net TN6 2LR Fax: +44 1892 652 620 Orpington, Kent Tel: +44 845 058 8000 UK BR6 0JQ Fax: +44 845 053 3000 UK

HEALTHCARE CLINICS TRAVEL AGENTS Health Management Network Rhett Crosby – Nat PPO Network Sales Mgr Voyageur Aeromedical Travel Marc Lucus – General Manager Southwest Corporate Center [email protected] Voyageur Buildings [email protected] 1600 W.Broadway Road www.healthmanagementnetwork.com 43 Colston Street www.voyageur.co.uk Suite 300, Tempe Tel: +1 480 446 2413 Bristol BS1 5AX Tel: +44 (0)117 927 3554 AZ 85282 Fax: +1 480 894 313 UK Fax: +44 (0)117 925 5940 USA

LuzDoc International Medical Service Ltd Dr Maria Alice Silva – Medical Director

Medical & Assistance Services [email protected] Rua 25 de Abril, 12 www.luzdoc.com Villa da Luz Tel: +351 282 780 700 The 24 Hour Aeromedical Travel Service 8600-174, LUZ LGS Fax: +351 282 780 709 PORTUGAL

MediClub Co Ltd. Dr I Khalilbekov – Dep. General Mgr

STR. 45 U.Hajlbekov [email protected] AZ 1010, Baku www.mediclub.az Azerbaijan Tel: +99412 49709 11/12/13 AZERBAIJAN REPUBLIC Fax: +99412 49870 96

Number One Health Group Dr Charlie Easmon – Director

1 Harley Street [email protected] Contact: Marc Lucas, Voyageur AeroMedical Travel, London www.executivescreen.com Voyageur Buildings, 43 Colston Street, Bristol BS1 5AX W1G 9QD Tel: +44 207 307 8756 Tel: +44 117 921 0401 Fax:+44 117 925 5940 Email: [email protected] UK Fax: +447092 196 169

www.itij.co.uk International Travel Insurance Journal 34 HOTSPOTS DICK’SHOTLINE Foreign arrests

Prison conditions can vary dramatically from country to country and can often be very dangerous. US lawyer Dick Atkins reveals how Bolivia: the struggle he helps hotline callers overcome the dire circumstances encountered under lock and key

for stability One of the most traumatic aspects of operating our not suffer a financial loss if the defendant fails to legal hotline is dealing with cases where the client is show up for appearances in court. This presents an arrested and imprisoned in a foreign country. Prior impossible burden for most visitors to satisfy. In early March, columns have described prison conditions in various We were fortunate to develop a good rapport with Bolivia was countries, including those that are very dangerous the detectives in this case and were able to provide suffering such a to one’s health and life. In the US, conditions in jails enough assurances, including handing over the desperate crisis vary widely for both those awaiting trial and for young woman’s passport to the Court, to convince that President those who are convicted. Dealing with the arrests the detectives to recommend to the presiding judge Carlos Mesa called of foreign tourists and other international visitors that the client be released on her own the country makes us aware of the catastrophes that can so recognizance, without putting up either money or a ‘ungovernable’ and easily occur to these typically first offenders, if they bail bond. She is presently awaiting trial in a safe vowed to resign wind up jailed with the local prison population. environment, while we work with the probation because he did not Most visitors’ initial encounter with the US criminal officials in her home country to obtain their want to ‘prolong justice system is in a police station lock-up, soon agreement to supervise any probationary sentence this shameful followed by the county jail if release on bail is not she might receive. With this arrangement, she comedy’. By Tobias quickly arranged. becomes eligible for a pretrial programme for first Jose Friedl, iJET Suburban and rural areas in the US usually have offenders, which will keep her without a criminal Latin American relatively safe jail facilities, but the urban areas, record and will allow her to reenter the US. Regional Manager where most travellers get into legal trouble, Most courts are very reluctant to release foreign generally remain dangerous, and could provide a offenders pending trial when the arrests involve any Nationwide protests traumatic, even life-threatening experience for serious offense. We have laboured long and hard to had virtually ground those male or female international visitors who find obtain ‘conditional release’ of those accused of the country to a themselves incarcerated there. criminal offenses while living or travelling abroad. halt. Groups of Recently, a foreign cultural worker, on holiday from On several occasions in France and in Spain, we farmers and indigenous peoples, many tied to coca the intensity with which his political enemies have her job in the US and travelling with her mother secured a client’s release, on condition that she live cultivation, blocked most major roads, including waged war. The main rival to Mesa, Evo Morales, and grandmother, was arrested the moment she at a local religious Order’s facility. Other cases those linking the country to Peru, Argentina and leader of the coca farmers and the Movimiento al stepped off the airplane upon her return. With her required court approval of a temporary residence Chile. The demonstrators also blockaded the road Socialismo (Movement to Socialism, MAS), did not family members tearfully observing the arrest with a local family, or the posting of collateral. It is between La Paz and El Alto, a key link between the sign the legislative agreement that eased the crisis. process, this frightened young woman was frequently necessary to be creative to allay the fears capital city and La Paz-El Alto International Airport. Protesters in the coca-producing region of Chapare informed of the local charge of ‘receiving stolen of local officials that the accused will flee the Other protesters, meanwhile, seized energy plants continued to block roads and demonstrate for property’, which was based on her having illegally jurisdiction. and forced the closure of a critical pipeline. The several days after Congress rejected Mesa’s obtained computer parts over the Internet. From A quick response and obtaining pretrial release government was forced to deploy troops to resignation. Radical protesters only temporarily prior experience, we knew that the local county jail constitute only the first part of handling a criminal prevent protesters from taking over oil fields. To lifted their roadblocks across Bolivia on 17 March. was considered very dangerous. As is the case with case in a foreign jurisdiction. Obtaining qualified make matters worse, leaders in the comparatively many urban area jails, these facilities had become local counsel is next in the series of critical steps of prosperous Santa Cruz province threatened to seek Multinational concern the recipients of hardcore offenders, including those what often turns out to be the hassle of the life of autonomy for their region. British Gas – which controls approximately 15 per awaiting trial for murder, felony assault and a variety the defendant and the defendant’s family. As it turned out, the Bolivian Congress rejected cent of Bolivia’s natural gas reserves – threatened of crimes, including an assortment of sex Mesa’s resignation on 8 May and legislators ratified authorities with legal proceedings for contract crimes and other offenses involving an agreement that temporarily eased the crisis. But violation if the hydrocarbon bill is ratified. This aggressive behavior. The arresting officers serious questions remain about the political and move could also spur other multinational energy expressed their fear for this woman’s economic stability of the country. companies operating in Bolivia to take legal action, safety once she was transferred there which would further debilitate Mesa’s from the relative safety of the police Competing interests administration. station. Many analysts believe that Mesa’s resignation was a In another illustration of the uncertain business As is commonplace in most US states, political maneuver to improve his popularity, stop landscape, on 14 April Mesa asked Congress to non-residents are not entitled to be the protests and weaken his opponents. It seems ratify or reject more than 70 oil contracts between released after depositing the customary 10 that Mesa’s strategy worked in the short term the Bolivian government and oil companies. The per cent of the bail amount. Instead, these because thousands of his backers marched through contracts are unpopular with the opposition and individuals must use a bail bondsman, but the streets of major Bolivian cities in a show of their legality has been called into question. bondsmen will not handle bail for foreign support. Protests and demonstrations over Bolivia’s oil and nationals without the posting of collateral. Even so, Mesa will have a very difficult time natural gas extractions and exports have already had Usually, local real estate must be signed reconciling the diverse needs of the business a negative impact on investment in this sector. Gas over to guarantee that the bondsman will community with those of indigenous groups and and oil industry investment in Bolivia declined 16 farmers. The tension is dramatised by a per cent in 2004 to US$235 million, compared to hydrocarbon bill that has passed both houses of US$280 in 2003. In October of 2003, however, Congress. The bill would add a 32 per cent tax on Bolivian officials announced that French extraction man, then he was laid to rest. oil and natural gas companies operating in the firm Total Bolivia Exploration & Production had Smile corner On the way from the funeral, in the limo, nation (the tax would be assessed in addition to the found a ‘mega field’ of natural gas in the the doctor confessed: "I must tell you 18 per cent that is already assessed). Many southeastern department of Santa Cruz. Officials gentlemen, I only put $20,000 on top of segments of Bolivian society, including farm and said the find would approximate two similar mega Can’t take it with you Mr Mumford. I wanted to buy this new indigenous groups, strongly favour the tax. Mesa, fields currently being exploited, each of which has machine that would enable me to diagnose however, opposes it because it will hurt foreign reserves of roughly 12 billion cubic feet of natural his rare disease and save others. It's what investment and will result in lawsuits from gas. Bolivia has the second largest natural gas and oil Mr John Mumford III was a rich old man, he would have wanted.” multinationals, many of which have voiced a strong reserves (with approximately 52.3 billion cubic feet) who was dying from a rare disease. On his Then the preacher said: "I have to confess, dislike of the bill. on the continent (behind Venezuela). deathbed, he called for his insurance agent, I only put $10,000 on top of Mr Mesa must now decide whether to veto the bill and doctor and preacher: "I trusted each you Mumford. We needed that money to help push for changes or to try to completely kill the Outlook my entire life. Now I want to give each of more homeless people, and it's what Mr legislation. There is also a chance that he will cave Violent civil unrest and roadblocks in urban and you $30,000 cash in an envelope to each Mumford would've wanted.” in and sign the bill in its current form. Whatever he remote areas are likely to continue in the next two put in my grave. I want to take it with The insurance agent was angry at both chooses, however, the tensions between the years – even if there is an agreement over Bolivia’s me." men, and said: "I can't believe both of you, various groups will remain and Mesa may have to oil and natural gas extractions and exports. Mesa, Mr Mumford died and at the funeral, each stealing from a dead man. I wrote Mr resign again before his term ends in 2007. however, will likely hold power through until the one placed the envelope on top of the Mumford a check for the full $30,000!” The difficulty of Mesa’s task is also demonstrated by end of his term.

International Travel Insurance Journal www.itij.co.uk ONTHEMOVE 35

LMA appoints new AIG Europe CONTRIBUTORS In for the long Roger Allnutt is a freelance travel writer based chairman strengthens team in Canberra, Australia, and has material published widely in magazines and newspapers in Australia and New Zealand. He Dane AIG Europe has recruited Roman Bryl as Account haul continued from p.25 travels widely both in Australia and overseas. Douetil, Manager to further strengthen its travel insurance Dick Atkins is chief counsel for International Group Chief team. Roman’s appointment closely follows the it was as managed care consultant to Ingle and as Recoveries, Philadelphia, which provides Executive of recruitment of Account Manager Robin Pegg. Founder and President of Insurance Claims global legal assistance to the travel insurance UK general Roman will be responsible for AIG Europe’s Management Systems, Inc., a subsidiary of Ingle in industry. He is in charge of International insurer Brit relationships with existing clients and for promoting which MacMillan had a partnership share. Recoveries’ legal hotline and has been Insurance its bespoke insurance partnerships to travel In his new role as a private sector insurance involved in handling international legal incidents for the past 20 years. He can be Holdings companies seeking to enhance their offering with executive, MacMillan initiated the split schedule – reached via email on [email protected] PLC, has been elected chairman of the Lloyd’s complementary products. much envied by his peers – which allowed him to Market Association (LMA). Roman joins from Mondial Assistance where he has spend six months in the South, with his ICMS team Miles Clarke is a Sydney-based freelance Mr Douetil said: “With the advent of new and spent the last four years working on corporate of multilingual case managers working 24/7 out of a journalist with more than two decades’ improving technology and increased pressure from travel insurance accounts with responsibility for bustling Fort Lauderdale high-rise. The only experience in newspapers, radio and trade press. As a business and travel writer, his work regulators, reforming business processes is essential managing business relationships, sales development complaint wife Tess had was that she was away takes him throughout the Pacific, Southeast from a commercial and compliance perspective. I and assessing the risk of partnership schemes. Prior from the children for such long periods, but then and East Asia, Australia and New Zealand. am passionate about making London the leading to joining Mondial, he worked for Norwich Union another spate of 75-degree days abated that market to conduct business, whether for Life’s Travel and Leisure team for two years. discomfort too. Saby Ganguly is an India-based business writer policyholders, brokers or underwriting entities. Based in London, Roman will report to Travel Another milestone in MacMillan’s career, and in the with more than 20 years’ experience, including “As chairman of the LMA, I see my role as Manager Jon Cooper, who joined AIG in August development of the travel health insurance industry, 16 in the Middle East. He holds a B.Pharm. degree is also the founder of IndiaOneStop.com, promoting the views of the membership to help last year. came in the spring of 1998, when a Canadian which is one of India’s earliest established deliver a clear strategy for the Lloyd’s market whilst owned, Florida-based newspaper published for business-to-business websites. acting as a driving force to help the London market snowbirds and their interests, convened a meeting to achieve its mutual objectives.” of travel insurers to encourage them to form an iJET Travel Intelligence (www.ijet.com), the Mr Douetil succeeds Robert Childs, Director of association to which snowbirds could take their travel risk management company, provides real-time travel intelligence information Underwriting at Hiscox plc, who retires from the Page joins Optimum complaints. In their eyes, insurance was too through its award-winning Worldcue chairman’s position after two and a half years. Mr expensive, its coverage too inconsistent, its fine print (copyright) technology platform for tracking Childs, outgoing chairman of LMA, said: “Dane’s too misleading. and communicating with travellers. iJET chairmanship of the LMA is enthusiastically General Surprisingly, 26 insurance executives found the idea services are backed by regional and category welcomed by the Board and will be equally engaging and travelled to Florida for the meeting. specialists from the fields of intelligence, security, travel, and health who staff an around- welcomed by the market as a whole.” Property and casualty insurer Optimum General They took to heart some of the snowbirds’ the-clock operations centre in Annapolis, MD. Simon Sperryn, Chief Executive at LMA, said: “The Inc., based in Canada, has named Jean-Claude Page concerns, set up a steering committee to explore LMA is the single voice for the market; Dane’s no- as its new president and chief executive officer. The the formation of an association, and within six Milan Korcok is an award-winning freelance nonsense practical approach will be an asset to the announcement follows the retirement of David months held what turned out to be the inaugural health policy and economics writer who covers Association and our members.” Liddle. meeting of the Travel Health Insurance Association travel insurance, public health, and medical education issues in Canada and the United States. Mr Douetil was appointed Group Chief Executive “On behalf of all shareholders and members of of Canada (THIA) at a founding meeting in Toronto. He has been writing about health financing and of UK general insurer Brit Insurance Holdings PLC management, the Board of Directors wishes to At that meeting, Rick Hine of Reliable Insurance policy issues in these countries since the 1960s in April 2005 having first joined the group in August thank Mr Liddle for his contribution to the company Company was elected President and MacMillan Vice and is a frequent contributor to leading North 1998. He sits on the Market Reform Group and and its subsidiaries over the past twenty years,” said President. After serving as VP for two years, American professional journals and consumer the Lloyd’s Claims Steering Committee. the Board’s announcement. MacMillan went on to a two-year term as president, media. He lives in Fort Lauderdale, Florida. and has just finished his term as a past president. John Sanders is a freelance journalist, writing During that time, he was actively involved in mostly about insurance, technology, legislative and government affairs committee work management and education. His clients include and in helping to organise the annual THIA winter magazines, corporates and the Welsh Assembly NU says goodbye conferences – at exotic places like the Sonoran Government. From 1990 to 1998 he worked for the Reuters news agency in London. For further desert, just outside Phoenix. information see www.johnsanders.clara.net to Ken Diary dates MacMillan’s relationship with Ingle lasted for almost nine years, at which point Trent Health Insurance Roger St Pierre is one of the UK's most Norwich Union has Services bought out the assets of the financially experienced travel, music and motoring writers announced that Ken 12-15-June troubled Ingle company and replaced ICMS with and has visited 111 countries on five continents. Wallace, pictured right, SelectCare Risk Management Corp., a wholly His insights appear in a wide range of consumer ASSE Professional Development and trade publications. Roger's 33 published Intermediary Business owned subsidiary which today continues to provide Conference & Expo books include a history of McDonald's, guides Director, will retire this claims and case management services. For a short to such destinations as Orlando, Moscow, September. He will Ernest Morial Convention Centre, New time, MacMillan stayed on with SelectCare, but as Edinburgh and the Costa del Sol, biographies of relinquish his current Trent continued its reorganisation, MacMillan left the Marilyn Monroe, James Dean, Bob Marley and Orleans, Louisiana, US Jimi Hendrix and a range of cycling books, the responsibilities at the end of May but will continue as www.asse.org company and for a short time took a breather – but latest of which is A Bike Is For Life. an executive director of Aviva General Insurance only for a short time. There were still too many (AGI) until the end of September. things to do and too much energy left to expend. Benedict Tembo is a journalist working for the Ken joined Norwich Union in Edinburgh in 1965. His 20-24-June Says MacMillan: “I recall very well the teachings and Zambia Daily Mail, one of the country's mass career has taken him to numerous different locations Airmed2005 musings of a professor of pediatrics I had back in circulation newspapers as deputy production in the UK, where he has undertaken a variety of medical school, a man who launched into a long editor. Prior to moving to the production Eighth Airmed Congress devoted to department three years ago, he was on the roles. aeromedical service for the private and and productive career as a volunteer crusader for sports desk, as sports editor. He has covered In 1992, Ken headed up the business development world issues after he retired from his university some of the high-profile events such as the operation for personal lines in the UK. In October public sectors teaching. African Nations Cup (1998 in Burkina Faso and 1996, this was extended to include all general Hotel Barcelona Plaza, Barcelona, Spain He said ‘As long as you have the mental and physical 2002 in Mali), the 2000 Sydney Olympic Games, among others. He is also board member of the insurance. On the acquisition of London & Edinburgh, www.airmed2005.com capacity to contribute, the word retirement should Press Association of Zambia (PAZA), the Ken assumed responsibility for the whole sales 21-22-June not be in your vocabulary’.” country's media professional body. operation as Business Development Director. Southwestern Insurance Information After leaving Trent, MacMillan served a short stint as He also contributes to NewsAfrica Magazine, After the merger of Norwich Union and CGU, he medical consultant to an Ontario-based air Kick-Off and Appropriate Technology magazines. Service Conference was appointed intermediary business director. ambulance firm, Angels of Flight. He then accepted “Without Ken it would be difficult to imagine how The Intercontinental Hotel, Dallas, Texas, an invitation to join Medipac International Inc., one Published on behalf of Norwich Union Insurance could have maintained the US of Canada’s largest providers of travel insurance Voyageur UK (Travel Services) Ltd, Voyageur Buildings, 43 Colston Street, loyalty and support of the broker community during products for the nation’s snowbird population, and Bristol BS15AX, UK some difficult times since the CGU/Norwich Union 27-28-June that’s where he is now. merger,” said Patrick Snowball, Chief Executive of As Senior Medical Consultant, MacMillan has Catastrophe Insurance in Asia The information contained in this publication has been Norwich Union Insurance. developed and manages a programme for published in good faith and every effort has been made to Commenting on his retirement, Ken said: “I’ve had Manila, Philippines underwriting high risk travellers, and continues a ensure its accuracy. Neither the publisher nor Voyageur Ltd can accept any responsibility for any error or 40 very good years with Norwich Union and I’ve high visibility role as spokesman for the company, misinterpretation. All liability for loss, disappointment, enjoyed my time immensely. In that time the industry 29-June and beyond that for the prolongation and expansion negligence or other damage caused by reliance on the and the issues affecting it have moved on of healthy travel for seniors: the fact that he is one information contained in this publication, or in the event of Insurance and International Climate bankruptcy or liquidation or cessation of the trade of any immeasurably. The intermediary sector continues to himself hasn’t seemed to occur to him. Change Policy Conference company, individual or firm mentioned, is hereby excluded. face fresh challenges and these will undoubtedly Give him his cars, his family, and a good meal, that’s continue into the future. That said, I leave a company ABI, 51 Gresham Street, London, restoration enough for another lap. As for the meal, Printed by St. Ives (Roche) Ltd that has led and benefited from change and is in great UK what would he like? A good Canadian ale and a shape. I am delighted with Mark Hodges’ To book contact Dr Sebastian Catovsky - nicely done sirloin would be just fine. But do the Copyright © Voyageur Publishing 2004. Materials in this publication may not be reproduced in any form without permission. appointment as Managing Director of Norwich Union [email protected] steak quite well: he doesn’t like it bloody…not General Insurance (NUGI). healthy. INTERNATIONAL TRAVEL INSURANCE JOURNAL ISSN 1743-1522

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