Page 18 Page 20 Page 22 Page 26

International Travel Insurance Journal ISSUE 36 • JANUARY 2004 ESSENTIAL READING FOR TRAVEL INSURANCE INDUSTRY PROFESSIONALS Aviva moves Court in the act

International travel health used debt collection practices that violated the state 2,350 jobs to insurers, fed up with paying of Illinois’ Consumer Fraud and Deceptive ‘inflated’ charges in American Business Practices Act. One plaintiff, a mother of hospitals, can watch with some three, claimed that she filed for bankruptcy after anticipation – and satisfaction Advocate sued to collect $3,338 for the birth of India – as the Illinois courts probe her daughter. She said she was charged more than the thorny issue of how and twice what she would have been charged if she had At the beginning of December, Aviva – which is the why hospitals charge different had insurance. UK’s largest insurance group and the world’s rates for different customers. Though it is common seventh largest – announced that it was joining the Milan Korcok reports on what practice for hospitals in likes of HSBC and Lloyds TSB in shifting thousands is proving to be an interesting the United States to offer of jobs to India. Norwich Union has told staff that it case major discounts to insurers will cut 2,350 jobs in the UK and export the work who refer patients to to India. In a class action launched them, most also provide This is the latest in a long line of UK companies to against Chicago area Advocate substantial amounts of move its call centre operations some 5,000 miles Health Care System, seven uncompensated care to away. People are predicting that offshore outsourcing former uninsured patients have patients who are unable to will more than double in the next five years. sued for damages, claiming that pay. Medicare and Aviva, formed in 2000 in a merger of Norwich they were overcharged for Medicaid (which cover the Union with CGU, already has offices in Delhi and services and hounded into elderly, the disabled and Bangalore, where about 1,200 staff process general bankruptcy when they couldn’t the poor) also pay only a insurance claims. Worldwide, Aviva now employs pay their debts. The suit, which portion of retail hospital about 59,000 people, and by the end of 2004 the could have national ‘prices’. firm expects to have at least 3,700 of them working implications for hospitals’ Advocate spokesman, Ed in India. differential billing practices, was Domansky, noted that the Of the new posts created in India, approximately The union Amicus, on the other hand, has said that filed in November in Cook County Circuit Court, hospital system had budgeted $220 million for 350 of them will be call centre roles, servicing UK it expects a possible 500 compulsory redundancies, on behalf of uninsured patients who said they were uncompensated care in 2003, $51 million of which customers. In addition, another 2,000 staff will and is part of a strong resistance to these moves by charged more than insured patients. The plaintiffs was for charity care. He also said Advocate offers work in back offices, doing administrative work and the unions, who are fighting to keep jobs in the UK. are seeking recovery of fees they allegedly overpaid, discounts of 50 to 100 per cent to many uninsured processing claims. Amicus voiced its disappointment at the insurer’s charges related to their debt refinancing and or poor patients and virtually all who apply for Aviva has said that a good 80 per cent of the jobs decision. ‘This deplorable announcement by Aviva defaulted payments, and requirements that charity care are granted discounts. going to India will be absorbed by current is based purely on greed,’ said David Fleming, Advocate inform all uninsured patients of Prior to the filing of the class action suit against vacancies, staff turnover and voluntary treatment fees up front. redundancies. continued on p.5 The suit also alleges that the 10-hospital system continued on p.2 International standards on accounting Europe and the US can’t even agree on how to consumer/investor confidence took a knock. This is the first time that counterparts to fall in line with US standards. measure their ingredients in the kitchen, so what The differences will probably take years to resolve – the rule makers in the US This has to be seen as significant. hope for harmonising international standards on if it is ever possible. But in the meantime, the rule have expressly changed The FASB’s proposal is part of a concerted accounting? This is what the accounting rule makers changes are in process, with officials of the US’s their ways to take into effort by it and the IASB not only to change are trying to do, but they have their work cut out. Financial Accounting Standards Board (FASB) account the international existing rules, but to draft new ones jointly. The efforts for a convergence of US and planning to propose a number of new rules in line approach to doing things, This will make cross-border investment and international standards took on an urgency after the with its overseas counterpart, the International rather than just expecting international stock listings a lot simpler, and Enron Corporation scandal, when Accounting Standards Board (IASB). their overseas continued on p.5 2 NEWS

Twelve charged in Terrorism a fact of Backpackers Turkey life expensive to insure As 16 people were detained in connection with the Hiscox is to offer commercial terrorism insurance in ITIJITIJ blasts in Istanbul in November, officials underlined Canada, following the launch of its broker extranet Insurance hikes are threatening the backpacker International Travel Insurance Journal Turkey’s determination to eradicate terrorism. system. The online system, known as INScribe, will market down under, Miles Clarke reports from Twelve of the men have been charged with aiding offer terrorism cover of up to $25 million per Sydney and abetting the attackers, who drove ‘cars of building on risks across Canada and the US. WHAT’S IN death’ into the British consulate and the HSBC The extranet gives brokers instant access to bank, causing 30 deaths and 459 people to be capacity and quotes for cover. Key elements of the THIS ISSUE? injured. cover include up to $25 million limit per building Counter-terrorism experts have stepped up their on a full value basis; both Canadian and US assets investigations, and the Islamic-leaning government insured on one policy; acts of domestic terrorism REGULARS has ordered mosques across Turkey to deliver a by special interest groups; zero physical damage sermon on combating terrorism, focusing on the deductible; seven-day business interruption News 1 incompatibility of violence and Islam. It is thought deductible; and physical damage and business Company brief 6 that al-Qaida sympathisers may have been interruption insurance offered as a separate or combined policy. Insurance matters 8 Robert Childs, director of underwriting at Travel matters 14 Hiscox, said: ‘Today, terrorism is a fact of life and Grapevine 15 businesses of all sizes and types are recognising The time when Australian tourism perceived Health matters 16 that they don’t have to be the actual target of an backpackers as visitors who arrived with a $10 note News analysis: Indian take-away 18 attack to suffer damage, loss and interruption to in hand, a single shirt and changed neither has long their ongoing business, regardless of their gone. Backpackers make up a valuable segment of Profile: Mike Ramsay 25 location. Hiscox has seen an increasing demand the inbound market mix, provide useful itinerant World markets: UK 26 for cover against terrorism risks across Canada labour, stay a long time and spend up big. Dick’s hotline 32 and we have launched our online system to According to tourism minister Joe Hockey, all of this Smile corner 32 meet that demand. We have experience of is under threat. He says Australia is risking being Message from the editor 32 terrorism insurance stretching back more than a dismissed as an ideal tourist destination by foreign quarter of a century, and this has enabled us to backpackers because of the rising costs of public Claim and counterclaim 32 look at the needs of the Canadian market and liability insurance. Diary dates 34 provide a cost-effective and workable solution He told the Adventure and Backpacker Industry Hot spots 34 indoctrinated in the shanty towns around Istanbul, for both brokers and clients. Our system is unique Conference that Australia's reputation as an Service directory 35 where religious feeling is strong. in that it gives instant access to capacity and then ‘adventure’ destination was at risk because of rising On the move 43 Istanbul’s police chief tried to fend off criticism of allows the broker to offer the client a very clear insurance claims. ‘One of the most significant intelligence shortcomings, blaming the Turkish and straightforward policy wording. We believe the impediments to the growth of backpacking media for its role in the bombings. He lashed out at clarity of cover and ease of use will be welcomed tourism... is the higher cost of public liability FEATURES the local press for disclosing the details of the two by Canadian brokers. insurance,’ said Mr Hockey. earlier suicide bombers, who were He continued, ‘The states of Rich pickings 20 targeting synagogues in an earlier round Australia have the highest insurance A look at kidnap insurance of attacks. He said that this indiscretion taxes in the world and it's having a had panicked other members of the profound impact on the cost of Repatriation – at any cost? 32 In the sixth part in our series on healthcare, we terrorist network into moving ahead with adventure activities. When explore the issue of repatriation in Latin America a second round of strikes against the backpackers look carefully at the British consulate and HSBC bank. He cost of adventure activities ... then accused the media of irresponsibility. compare it with New Zealand or ITIJ TEAM Meanwhile, tour operators reported South Africa, the real cost of mass cancellations and thousands of backpacking in Australia can be Editor-in-chief: Ian Cameron foreign visitors fled Istanbul and other much higher.’ Mr Hockey also said Editor: Anne Johnson cities, amid widespread fears of another insurance claims had risen from Sub-editor: Sarah Lee attack. There was extensive use of 54,000 in 1996 to 86,000 in 1999. Editorial assistant: Rebecca Attenborough roadblocks and police were visible Student Travel Authority (STA) everywhere. Scotland Yard and the FBI CEO, Dick Porter, said that the Designer: Eli Butler are helping in the hunt for the killers. insurance crisis needed to be sorted US correspondent: Milan Korcok An emergency meeting was called in out immediately. ‘The key thing India correspondent: Saby Ganguly Athens to deal with the security threat. about Australia that is it has to be a The Greek government is planning to unique affordable adventure,’ said Legal correspondent: Dick Atkins use 10,000 soldiers at this year’s Mr Porter. Conference manager: Denise Clements Olympic games to back up an estimated ‘Brand Australia has got to be cool Production: Adele Brown 40,000 police. – the young market wants to go The British consulate is intending to somewhere where they perceive it Advertising sales: Brad Cross Merik Toms return to their shattered building, in spite to be cool. They're not going to go of criticism that the site was – and somewhere where they think Cartoonist: Chris Duggan remains – unsafe. The survivors of the they're going to turn up and be attack were still feeling very vulnerable looked after by a nanny.’ FREE SUBSCRIPTIONS FOR and security at British embassies around the world Mr Hockey said regional Australia had to be is being kept under constant review. promoted as a travel destination to overcome the TRAVEL PROFESSIONALS The immediate fall in stock prices following the Court in the act downturn in tourism. ‘We have to move beyond attacks in Istanbul shows that the financial markets are continued from p.1 the traditional icons ... the reef is very important to ITIJ not immune to terrorism. The attacks were a reality us, the rock is very important to us, the Harbour check for many investors, and the news was quick to Advocate, the Illinois attorney general initiated an Bridge and the Opera House are very important to Voyageur Buildings prompt a tumble in many stock markets across the inquiry into allegations that some hospitals were us, but we need to expand travel beyond those 43 Colston St Bristol BS1 5AX world, including the DAX, the FTSE and the CAC. overcharging the uninsured. There may be some areas,’ he said. UK The bombs in Turkey highlighted that the perceived truth in this. Mr Hockey said that cash-strapped backpackers editorial: +44 (0)117 922 6600 level of the equity risk premium in 2004 is not as low Referring to the inquiry, Ben Weinberg, chief of were incredibly lucrative because they travelled to advertising: +44 (0)117 925 5151 as investors had expected and could be a catalyst for the public interest division of the attorney general’s remote destinations and worked in rural towns. fax editoial: +44 (0)117 929 2023 a correction. Analysts recommend avoiding travel- office, said hospitals may be inflating their ‘list ‘The backpacker industry is a viable part, not just in related stocks because these will be the first to feel prices’ to make up for the discounts they offer the tourism industry but in the broader Australian fax advertising: +44 (0)117 925 2040 the brunt of a drop in tourism and business travel. their best customers. Uninsured patients may not community,’ he said. He added that, for this email: [email protected] Indeed, on the day of the attacks, German tour be aware that they are the only ones paying the list reason, the backpacking industry needed to have an web: www.itij.co.uk operator TUI slid three per cent, while Lufthansa price, he said, and that they might be able to association that represented its voice to the dropped 3.6 per cent. negotiate those prices downwards. government and the community. International Travel Insurance Journal www.itij.co.uk

4 NEWS

Bomb in Moscow French arrest key Protecting soft Killing in Zanzibar kills six ETA leaders targets

Two female suicide bombers launched an attack in French anti- Soft targets are not easy to protect but are at the heart of Moscow on 9 December, just metres terrorist police the heart of the intersection where terrorism from the Kremlin and in front of the five-star arrested four key and multinational business meet. Following National hotel, opposite Red Square. Six people members of the on from the attacks of 11 September, the were killed and a dozen injured. Basque separatist terror networks of Islamist extremism have The attack raises the grim prospect of a wave of group ETA on 9 largely turned away from the heavily guarded terrorist violence in the Russian capital. It looks as December, hard and obvious targets, such as though the intended target was the parliament, including its government and diplomatic institutions and which was just a few hundred metres away. military leader have turned their attention to soft targets, like Radical groups with links to Chechen rebels are and chief of religious institutions and international suspected of being responsible. They have caused a logistics. The two, businesses. A British businessman was shot dead by robbers in succession of suicide bombings in Moscow and who were among This is the concern of Richard Ingram, deputy front of his wife and two children on Zanzibar’s southern Russia over the past year, which have left the most wanted executive director for the Overseas Security main island. At least 10 robbers raided his house about 250 people dead. terrorists in Advisory Council (OSAC), which was created and ignored his wife’s pleas to let him live. This most recent attack was the closest that suicide Europe, were by the US State Department in 1985 in the Antony Griplas ran a tourist company called Africa bombers have come to the seat of power. It was captured in a pre-dawn raid in the village of Lons, aftermath of the bombing of the US Marine Corps Afloat, specialising in trips aboard traditional Dhow timed to coincide with President Putin’s celebrations near the southwestern town of Pau. barracks in Lebanon. The then Secretary of State boats for tourists. Zanzibar is a peaceful place and of his parliamentary election victory. This is the second significant blow to the terror George Shultz was besieged by corporations that attacks of this kind are rare. campaign in less wanted the same information on terrorism and than a week, threats posed by terrorists as the State Department following the was sharing with its embassies. capture of ETA’s Today, the OSAC is overseen by the State alleged leader on 4 Department’s Bureau of Diplomatic Security and December near advises huge international companies such as banks, France’s border airlines and restaurants, as well as small businesses. with Spain. ETA is The OSAC has contacts with 450 diplomatic- thought to have security officers stationed around the world, and been dealt a severe spreads information through an email network on blow, particularly as everything from terror threats to crime trends and it is felt it will be travel information. In this way, the OSAC is able to difficult to replace watch over US firms working abroad and to their leaders. protect both their corporate interests and their employees who work so far from home. Flooding in France kills five

Five people died on 1 December, as torrential rain, flash floods and 90mph winds battered the Rhône valley in southern France. Nearly 8,000 people were evacuated from their homes, as roads and railway lines were closed. Marseille, which is France’s second largest city, was declared a natural disaster zone, and President Jacques Chirac and his interior and environment

Another fine mess

It’s not funny and it’s becoming more common, to such an extent that this wry quote from Laurence and Hardy seems grimly appropriate. A warning was issued about insurance company Tribune Risk and Insurance Services, which has apparently left 40,000 policyholders without cover because it was operating without official ministers toured the area. Metereologists said that authorisation. People who have policies with the four times as much rain had fallen in the region on company are being urged to take immediate steps one day as is usual for the whole of December, and to obtain replacement cover. people are talking of the floods of the century. Provisional liquidators moved in at the company’s headquarters just outside Edinburgh on 11 December, following legal action instigated by the Financial Services Authority (FSA). Tribune apparently had no reserves or provisions in place to meet claims. Tribune offered various types of general insurance, including household and buildings. The problem is said to have Tel: +254-20-600090/ 600552/ 315454/ 315455/ 602492 arisen as a result of the company, which Fax: +254-20-336886 Mobile: +254-733-639-088, +254-722-314-239 acted as an agent, losing some of its Sat Phone: +873-762-315-580 Sat Fax: +873-762-315-581 underwriting but continued selling policies. Radio Frequencies: HF 9116 kHz LSB, 5796 kHz LSB PricewaterhouseCoopers has been appointed as joint provisional liquidators. A email: [email protected] helpline for claims and other queries has been set up. International Travel Insurance Journal www.itij.co.uk NEWS 5

Aviva moves 2,350 jobs to India continued from p.1 national secretary of Amicus. ‘This move ignores outsourcing of call centre work is expected to grow Aviva's corporate social responsibility towards both by 25 per cent over the next five years. its UK employees and customers,’ he added. But while there are cost savings to be made now, The company has not denied that its decision is there are fears that the increased demand will about money. Aviva said that operating costs in India eventually push salaries higher in the main outsourcing were typically 30-40 per cent lower than in the UK. centres of Bangalore, New Delhi, and Bombay. ‘At When safety gear Tourists kidnapped Average call centre salaries in the UK are about the moment it is all very cost-driven, but in the long £12,500, compared with in Iran £1,200 in India. The can kill conclusions are obvious. There is a mounting problem for emergency Three European tourists were kidnapped in a But that’s not all. The move workers in the US, when car manufacturers fill their southeastern province of Iran on 8 December. The will also help the insurer cars and trucks with devices that increase safety for area is plagued by drug smuggling, and the two provide 24-hour services – this motorists but pose a danger to rescuers, many of Germans and an Irish national were on a cycling trip is because the time difference whom are not aware of the hazards. These include when they were abducted near the Pakistan border. between the UK and India air bags, which can fire off twice or may be located The hostages are thought to have been taken by the would allow the company to in doors or roofs. Even pre-tensioning seat belts, same bandit groups that kidnapped three Spanish move to round-the-clock which use a charge of gunpowder to yank against and an Italian tourist in 1999. These hostages were claims processing and an occupant during impact, can explode in the later released unharmed. The group Schiruk has administration. The fact that hands of a firefighter who is working to cut Indians are also well-educated, someone free. Also of concern are new fuel or apparently demanded a €5 million ransom. hard working and English- engine technologies, such as explosive propane gas Kidnap is rare in Iran, though the impoverished speaking is another advantage. tanks or powerful electric batteries. region is known for its armed drugs gangs, which But it is principally the lure of savings that is causing a Cars are ‘a loaded bomb waiting to try to hurt us ferry large quantities of heroin from Pakistan and growing number of companies to transfer jobs to term, companies will see savings diminish,’ warns as responders,’ said a vehicle-rescue specialist. Afghanistan into Iran and then on to Europe. Since offshore bases on the other side of the world. Kinetic management partner Stephen Peattie. Emergency workers are used to dealing with the the US-led war in Afghanistan, members of the al- Despite a high-profile counter campaign being run The astonishing thing, given the widespread move standard hazards of gas tanks and 12-volt batteries, Qaida network are thought to have fled to Iran and by many British unions, research shows that 28 firms of jobs in several sectors to India – led by the but technology is moving at such a pace that many are suspected of exploiting the drug-smuggling have outsourced more than 50,000 jobs serving UK insurance industry but also including financial, legal, of them can’t keep up with what’s on the street, networks in order to cover their movements. customers to India over the past two years. and even information sectors (British Telecom is from cars with as many as a dozen air bags to gas- As Graham Hoskins, managing partner of call centre sending Directory Enquiries to India and the electric hybrid vehicles with batteries powerful consultancy Kinetic, which produces a guide to railways are sending their network timetable people enough to electrocute a man. outsourcers in India, says, ‘The commercial there) – is that no one foresaw this happening and The US National Highway Traffic Safety arguments are very persuasive.’ it seems to have taken everyone by surprise. So Administration is asking emergency workers to The latest on the grapevine is that AXA has now what next – China, perhaps? report injuries of safety concerns about air bags and begun taking inbound calls from UK customers at its But it’s not bad news for everyone and, not other equipment in cars. There is concern that car Indian call centres for the first time in early December. surprisingly, many of the Indians who are gaining manufacturers should put labels on vehicles listing The move is apparently part of a pilot scheme to jobs are cock-a-hoop. For a discussion of what this all potentially hazardous systems on board. reduce the pressure on the insurer's UK call centres. has meant for workers in India, see News analysis, Emergency nurses and medical technicians are And we have not heard the last of it: offshore on page 18. compiling cases of post-crash injuries of this kind, in an attempt to monitor the problem. The car industry is apparently becoming more aware of the problem and is discussing ways to respond. Lightning strikes International standards on accounting Some fire and rescue departments are making efforts continued from p.1 to stay current with developments and are working Several incidents of lightning strikes recently have with car manufacturers to keep up to date. underlined what a very dangerous thing they are. will make things easier for everyone concerned. in an attempt to resolve differences, including A British backpacker had a lucky escape after being So, according to IASB chairman, David Tweedie, pensions, derivatives and re-evaluation of assets. struck by lightning in Australia, in the Blue changes to US rules are a clear, and much needed, To get things moving, the FASB and the IASB have Mountains west of Sydney. He is thought to have signal to the rest of the world, especially Europe, agreed to meet formally twice a year. Mr Tweedie died before being resuscitated. His two friends that the process of merging accounting standards is stresses that this is not about petty arguing over were also struck. All three suffered burns in the a two-way street. ‘Europe will be impressed that arcane accounting, but about growth, investment incident and were treated in hospital. the US is prepared to take the pain,’ he said. and trade. A golfer in Melbourne was struck by lightning as he Among the most significant changes that the FASB No one is underestimating the magnitude of the task took shelter under a tree when the city was propal will probably include is a general that lies ahead, but the differences do not look battered by the worst storms in a century. So it’s requirement for companies to apply accounting insuperable. If both sides are prepared to compromise true what they say – never go under a tree during changes retroactively. This is just one of a handful of and not become set on their prestige in the world, a storm. Better to get wet… areas on which the two boards have been working there may be light at the end of the tunnel.

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

More Th>n tops Travellers Life Broker reinsurance Awards for iJET £400 million enhances product system Travel Risk

Royal and SunAlliance’s direct arm, More Th>n, is Ri3k is focusing on the broker with its launch of Management set to bring in over £400 million in gross written Version 2.0 of its reinsurance infrastructure. A premiums this year, according to a More Th>n completely new user interface introduces a host of We are particularly pleased to report news of these spokesperson. More Th>n claims that research has advanced new features. Brokers are able to awards for iJET Travel Risk Management, our old revealed that the UK’s largest personal lines manage multi-layered treaty programmes, the friends who write our regular Hotpots column (see insurers, Norwich Union and Royal Bank Insurance, facility to pass on technical accounting page 32). Both awards – would have premium incomes in excess of £1 data, and access dual-continent real- the InfoWorld 100 Award billion. R&SA would have a premium income of time disaster hosting. and the Process Innovation over £530 million, whilst Zurich would have an Alex Letts, chief executive of ri3k, Award – recognise iJET's income of around £328 million for 2003. These commented, ‘The release of 2.0 is as considerable investment in findings keep R&SA safely as Britain’s third largest dramatic a step forward as Windows state-of-the-art risk personal lines insurer. 3.0 was for Microsoft 10 years ago. management technology, as The gap would close considerably if Zurich were Data can flow across the infrastructure well as the company's to pick up the household account of HSBC, Travellers Life & Annuity has introduced its from top to bottom, but there is still commitment to continually estimated to be worth £80–£90 million of improved Travellers Variable Life Accumulator one important component to be improving the technology premium income. Nevertheless, R&SA might product, a variable universal life insurance policy revealed as soon as renewals are over that drives its varied risk continue to work with HSBC on the account – its that combines investing, insurance and professional - we call it Project Jhelum. In the management solutions. existing contract is set to lapse. money management to help clients meet their meantime, the exclusive focus is on ‘We've invested a great deal insurance needs, and manage and grow their the treaty side for the renewal season.’ in our state-of-the-art wealth more effectively. A restructuring of the In September, ri3k announced that operations and response Mortality & Expense risk and administrative charges eight large cedants had already begun their migration centre,’ said iJET CTO Greg Meyer. ‘We William Russell on the improved Travellers Variable Life from paper-based processing to the electronic continually build on that investment by working to Accumulator product resulted in improved cash paradigm. ACE Overseas General, Aviva, Brit, provide our clients with the very latest in travel risk revises values for all ages and increases in distribution Talanx/HDI, and Royal & SunAlliance are among management technology. We are proud to receive potential up to eight per cent, when compared those using the ri3k infrastructure for renewals. these awards, and proud of the technology and William Russell Ltd. has recently announced their with the original product. services that are bringing high praise from clients Global Health plan revisions for 2004, which ‘Capitalising on the M&E charge restructuring to and industry experts.’ incorporates some valuable new benefits. These offer this enhanced product exemplifies an ongoing Company CEO Bruce McIndoe added, ‘These new benefits include chronic cover benefit, commitment to keep our life product portfolio awards are a testament to iJET's diligence and psychiatric benefit, compassionate home travel, robust,’ said Gene Lunman, vice president of versatility when it comes to implementing new accommodation expenses of an accompanying Travellers Life & Annuity. ‘With the equity markets, technologies. We are constantly re-evaluating and person on evacuation, increased emergency along with investor confidence improving, it is a improving our business processes to better serve evacuation benefit, and a higher annual limit on great time to make this change. Competitively our clients, and we're very pleased to have been their Select Care plan. speaking, we see this as a real opportunity to recognised by both of these prestigious awards position our variable product offering for growth.’ programmes for our efforts.’

MetLife sets up in Confidence in China China Life

MetLife, the largest life insurance company in the Investors flocked to buy into the biggest float of the US, declared in October that it would set up its first year on 12 December, reportedly bidding for at company in China, in a joint venture with Beijing least 13 times more stock than was on offer. China Capital Airport Group. The new company, called Life Insurance Company raised $ three billion, after Sino-US MetLife, will have its headquarters in Beijing pricing its share issue at HK$3.625. Investors placed and provide life insurance in China. It will make full orders for more than $40 billion. use, too, of MetLife’s staff in Hong Kong and Taiwan. The frenzied demand was seen as a vote of MetLife decided to cooperate with Beijing Capital confidence in both China and equity investment, Airport Group, which is not an insurance company, coming as it did only 12 hours after the Dow Jones because the group has so many customers and is Industrial Average broke above 10,000 for the first very influential in China. time in 18 months.

International Travel Insurance Journal www.itij.co.uk

8 INSURANCEMATTERS

Who regulates the regulators?

In a move that seems to buck the trend, the for states to reach all infrastructure upon which insurance associations nix federal regulation. modernisation goals by dates consumers throughout the Milan Korcok reports ranging from 31 December nation rely heavily to protect 2003 to 31 December 2008. their interests.’ Regulation of insurance companies in the United The idea of federal regulation In that respect, NAIC’s Pickens States is a state function and should remain so, the of insurance has been picking noted that 49 states have president of the National Association of Insurance up some steam under the adopted the NAIC’s Producer Commissioners (NAIC) recently told a impetus of Senator Fritz Licensing Model Act; 39 states congressional subcommittee. Responding to Hollings (Democrat, South have implemented state legislative initiatives in the House of Representatives Carolina) and large insurance licensing reciprocity; a System and Senate that would federalise regulation of the companies such as Prudential for Electronic Rate and Form industry, Mike Pickens told the House and Metropolitan Life that do Mike Pickens Filing (SERFF) has been created Subcommittee on Capital Markets, Insurance, and business in all states. Siding with which has resulted in an 88 percent Government Sponsored Enterprises that state Pickens and the NAIC, the National Association of increase in electronic filings in 2003 over 2002, with regulation of insurance has served consumers Insurance and Financial Advisors (NAIFA - formerly an average turnaround time nationally of 17 days; effectively and efficiently for 125 years – and that is the National Association of Life Underwriters) in its and 42 states now certify compliance with two or where it should remain for the next 125 years. own congressional testimony said it ‘remains more critical insurance exam areas such as Munich Re disappoints ‘The state regulatory system is inherently strong sceptical… that the creation of a federal scheduling, pre-exam planning, company when it comes to protecting consumers because bureaucracy is necessary to achieve reform.’ procedures and reports. The world’s largest reinsurer disappointed its we understand local needs and local market States can do the job, said the NAIFA in a statement While the NAIC was presenting testimony to the investors with a warning that it would post its first conditions,’ said Pickens, who is also the Arkansas to the House committee, especially now that states House, the National Association of Mutual full-year net loss in nearly a century for 2003. It has Insurance Commissioner. ‘However, we agree with have the NAIC’s modernisation plan as a template Insurance Companies (NAMIC) was sending a blamed German tax regulations for preventing it critics that there is a need to make the system more to work with. similar message to the Senate’s Commerce, Science writing off investment losses that were incurred in uniform, reciprocal, and efficient.’ ‘While the promise of increased uniformity and and Transportation Committee, which also held the recent stock market losses. He noted, too, that states are well on the way to efficiency sounds appealing, proponents of this hearings on Federal Involvement in ‘Regulation of Munich Re reported a third-quarter net profit of that goal as it is delineated in the NAIC’s Insurance approach appear to have lost sight of the the Insurance Industry’ this past fall. The Senate is Regulatory Modernisation Plan. The Plan, which undeniable benefits of the state-based system and currently considering Bill 1373, the Insurance €152 million, which was substantially up from the was unanimously adopted by its members last fall, have overlooked the increased havoc that a federal Consumer Protection Act of 2003, which would establishes the principles for consumer protection, system could cause… coalesce regulation of insurance companies in one €859 million loss a year earlier. That said, market regulation, new product development and There is much that is good about the state-based federal agency. however, the figure was well below analysts’ approval, licensing, solvency regulation, and changes system that would be lost through the creation of a The NAIC is a voluntary organisation of state chief in insurance company control. The action plan calls federal regulator, including an enforcement insurance regulatory officials. expectations of a net profit of around €400 million for the quarter. Munich Re has been hard hit by the turmoil that An olive branch has put the screws on the industry for the past RSA sells Chilean subsidiary three years. Heavy claims from terrorism, asbestos The UK government extended an olive branch on settlements and natural catastrophes, combined Royal & SunAlliance has agreed to sell its 51 per company to revert to local ownership. I wish every 4 December to businesses struggling to pay soaring with dwindling investment returns, have made for a cent stake in its Chilean subsidiary, Compania de success to the management and employees of La insurance premiums for compulsory employers’ heavy bill, and the balance sheets of most of the Seguros de Vida La Construccion, to La Camara Construccion, and to our former joint venture liability insurance and is publishing a report outlining world’s major insurance groups have suffered Chilena de la Construccion, the current 49 per cent partner in its role as sole owner of the business.’ proposals to tackle the problem, including plans to accordingly. shareholder. Proceeds of the sale will be used by reduce legal costs for claims. The proposals were The group’s profit warning comes as a blow to Royal & SunAlliance to support its ongoing general given a cautious welcome by employers’ groups Munich Re’s professed hopes of recovering its insurance businesses. and insurers, whose response was that the former AA rating. Reinsurance companies set great Simon Lee, Royal & government’s commitment needs to be backed by store by their credit ratings as a way of showing SunAlliance’s CEO action, and have been lobbying for government their financial strength to their clients and that they international intervention. will be able to weather the ups and downs of the businesses, said, ‘La Companies have to be insured against claims for insurance industry in the long term. Construccion has injuries in the workplace and industrial diseases been a successful such as asbestosis. But steep rises in premiums – Stake out business venture for often by as much as 100 per cent – have driven Munich Re reduced its stake in Allianz AG on the group over the some small firms to the brink of bankruptcy. 17 November, from just below 15 per cent to years, but given our Construction firms have been particularly badly hit. 12.2 per cent. Commentators applauded the increasing focus on UK Chancellor Gordon Brown defended himself by move, saying that it reduced large risk-weighted general insurance, we saying that there was ‘no quick fix’. Proposals assets on Munich Re’s books and was in line with believe that it is now favoured by employers include plans for improved both companies’ strategies for reducing cross- appropriate to rehabilitation schemes to get employees back to shareholdings. Further similar transactions are withdraw from the work faster after illness or injury. Critic s say that this expected, and Munich Re and Allianz are business and for the tackles the symptoms, not the cause of the problem.

International Travel Insurance Journal www.itij.co.uk

10 INSURANCEMATTERS

Investors take Equitable members rollercoaster ride concerned

For an industry that has been portrayed as mind- Stricken insurer Equitable Life has expressed numbingly dull, the European insurance market has certainty that it is slowly achieving stability, in spite given investors something of a thrill, with dramatic of its free capital reserves having shrunk by another highs and lows. After this year’s earlier troughs, £100 million. The insurer’s financial health has been insurers have risen to peaks and stocks are up again. hit, in general, by higher legal costs as well as a £20 Yet in spite of this, some commentators are still million increase in provisions to cover potential mis- arguing that the European insurance industry selling compensation claims. represents a good way to ride the advancing Its Fund for Future Appropriations, which charts the market, particularly when one of the next best cash available to meet bonus payments, fell £103 options, recovering technology stock, is seen as million to just £453 million over the six months to having risen too far, too fast. June. That said, however, chairman Vanni Treves Insurance stocks, especially life insurance, are said that the company had set aside what he called particularly attractive at the moment, as interest ‘sufficient’ funds to deal with the various claims and rates globally seem to be on the rise again, while legal action in bond yields are also heading in an upward progress, and that direction. Insurance stocks are therefore a good the company had alternative to shares in banks, which is another made ‘good industry whose fortunes are inextricably bound by Saga looks for buyer Hannover Re posts progress’ towards changes in interest rates. restoring an efficient This is the view expressed by a European strategist The family-owned empire that has pioneered rise business model. at Morgan Stanley in London, while JFC also rates package holidays and insurance for the over-50s But Equitable European insurers highly because of their strong since 1951 is up for sale. The deal could fetch as Not all the news is bad and Hannover Re sent warned its performance this year. Insurers have had three much as £1 billion and the company is inviting bids. good news from Germany. Its third-quarter net policyholders that dismal years, but must be given credit for rebuilding With sales last year of £341 million and pre-tax the Penrose inquiry their financial fortunes. Interestingly, JFC rates the profits of £55 million, Saga seems to be telling a profit increased to €94.2 million, which might result in it Equitable chairman Vanni Treves reinsurers most highly of all. success story in spite of 9/11 and its fallout. represented a growth of 53 per cent from the having to face a deluge But not everyone is as bullish as that. J.P. Morgan, Although Saga is probably best known for its year-earlier quarter and a 3.5 per cent rise from of legal claims, which could force further increases on the other hand, reckons that the European holidays, some 80 per cent of its profits come from the second quarter. These results compare to its provision of £846 million. Worst hit will be insurers will probably be burdened by increased its insurance and financial services. The company is particularly well with those posted by Munich Re. Equitable’s with-profits annuitants, who were told regulatory examination of their risks and growing looking for potential bids, but a flotation remains a The giant German reinsurer also raised its 2003 last year to expect cuts of up to 28 per cent in their competition from other companies in the market possibility. pensions and as yet to be determined cuts this year. that are offering long-term savings products. Potential bidders include the likes of Kohlberg Kravis earnings outlook. It expects a 2003 net profit of €350 The troubled insurer tried to put a brave face on Among the market leaders, the analysts’ favourites Roberts, Candover and Advent, while tour things as it pointed to the potential for a positive include: operators such as First Choice and Thomas Cook million, which is up from a forecast of €320 million. outcome from the review by Lord Penrose, who is • Allianz (Germany) are also likely to be interested in any deal that could Such excellent results are due to lower claims undertaking the onerous task of investigating the 40 • AXA (France) result in a demerging of the holiday side. costs, a more selective underwriting policy, lower years that led to Equitable closing to new business • Prudential (UK). write-downs on equity investment and a better in December 2000. His report has not been cost-income ratio. Year-earlier results had published yet and is due to be delivered to the been weighed down by high claims costs Treasury early in the year – though some people related to the floods in Germany and high up in the society have said that they do not expect it to be published until the spring. The society has warned that policyholders are likely to feel the pain because of the fall in inflation and GE spin low investment returns that have dogged many life insurers. Paul Braithwaite, general secretary of the General Electric plans to spin off its policyholders action group EMAG, said that the mortgage and life insurance operations this society’s interim report was a ‘grim read with toxic year into a new company called Genworth risks described’. Financial. In order to do this, it will sell 30 Liz Kwantes of the Equitable Life Members Support per cent of the company, which is expected Group said that policyholders were increasingly to have a value of $10 billion. concerned by the mounting number of claims. She The company intends to use the proceeds said that their group had been contacted by a lot of of this, which could amount to as much as annuitants, many of whom were out of their minds $3.5 billion, to pay down any debts. It will with worry. The ground keeps moving for them, she also invest in existing activities. said, and all they know is that they will be even poorer.

Executive Life in fraud case

The long-running Executive Life fraud case seems no to own insurers in the state. why talks have broken down and it is understood amounts to is a $770 million settlement that was nearer to a resolution and the French government In September of this year, France pulled out of an that the two sides have not been able to reach only reached after François Pinault agreed to pay seems set for a courtroom clash. The failed agreement to make a $585 million settlement, on agreement on the inclusion of Messrs Pinault and $185 million in settlement of criminal charges, in Californian insurance group, now known as Aurora condition that the US authorities dropped all claims, Peyrelvade in the deal. France is concerned that exchange for immunity from further criminal National Life Assurance Company, looks as though it including those against the former Crédit Lyonnais excluding the two men from the settlement would prosecution. Under the deal, the bank will also pay may have to go to court as talks between French chairman, Jean Peyrelvade and François Pinault. The leave it open to new legal attacks if US prosecutors $100 million in fines and damages, while the French officials and the US prosecution broke down. latter is head of the Italian fashion house Gucci, the were to exact compromising testimony or evidence State will contribute up to $475 million. If any trial were to go against the French side, this PPR retail chain and British auction house Christie’s, from either of them. French insurer MAAF had apparently already agreed would open the way for large civil claims against the among numerous other assets, and is one of the Both men have denied any wrongdoing. to settle with Debra Yang for $510 million, less than French parties and might ultimately cost Crédit richest men in France as well as being a close friend a day after she had rejected a French proposal. An Lyonnais, which is now owned by Crédit Agricole, of French president Jacques Chirac. unnamed spokesman has said that the settlement its banking licence in the US. The problem is that Mr Pinault’s Artemis company ** STOP PRESS ** STOP PRESS ** does not cover Jean Peyrelevade. But the row dates back to 1991, when US bought part of the Executive Life junk bond So a deal has been agreed in principle, though the authorities allege that the then stare-owned French portfolio. Mr Peyrelvade only became chairman of The latest on this protracted saga is that US final details are still being worked out, in a settlement bank bought some of the assets of Executive Life, Crédit Lyonnais after the Executive Life deal had attorney Debra Yang has finally accepted the French that represents an about-face both for France and including the junk bond portfolio. At the time, taken place. government’s proposal for a compromise, in a for Monsieur Pinault. The story is not quite over yet, banks could not own insurers and, in addition, And therein, the authorities have smelled a rat. The theatrical last-minute deal that looks like making it although – barring any unexpected glitches – the Californian law did not allow foreign governments French finance ministry has refused to comment on possible to reach a tentative agreement. What this end looks in sight. So near and yet so far… International Travel Insurance Journal www.itij.co.uk INSURANCEMATTERS 11

Consolidation in With Friends like Lloyd’s makes a MONY stands its insurance these… break ground Lloyd’s of London may be 315 years old but it has New York life insurer, MONY Friends Provident is cutting 500 jobs and making nearly collapsed twice in the last 10 years, Group Inc., responded to criticism people redundant as a result of its decision to beleagured by multibillion-pound claims. But now from shareholders that it had rushed follow its rivals by closing down its door-to-door the insurance giant is seeking help from a hard- into a proposed acquisition by sales. In addition, the insurer said that the hitting German, Rolf Tolle, to break its old boom- French insurer AXA SA by drafting a cuts were taking place after a six- and-bust ways in a bid to ensure survival. proxy disclosing details of discussions month consultation with the Herr Tolle has talked sharply to Lloyd’s about its it had held with other companies Amicus union and had to accept underwriters charging too little for ship that had, in the event and after that the number of staff affected insurance and is trying to get them to preliminary contact, proved by the disbandment of the direct modernise their ways, while still maintaining its unsuccessful. It said that it had held sales force was likely to be greater than integrity, its reputation and its profitability. He talks of this kind from 2001 until had at first been envisaged. says his role is more that of coach than April 2003, including talks with three Friends Provident had suggested in referee. The problem is that it is hard to break mutual insurers about ‘sponsoring’ In a deal valued at $16 billion that will create one of October last year that 380 jobs would old habits, particularly that of fierce their demutualisation, with four the largest property-casualty insurers in the US and be affected. The latest jobs to be lost are competition between underwriters. Lloyd’s is companies in life insurance or could be a foretaste of more consolidation in the mainly from support and administration staff. not a company but a market, and this can cause financial services about possible industry, Travelers Property Casualty Corp. and St The insurer said that the changes were particular problems of its own. mergers, and with three companies other than AXA Paul Cos have agreed to merge. Although the two needed because of forthcoming changes to In the meantime, Lloyd’s has been warned to about buying MONY. companies involved have called the deal a ‘merger the regulatory regime, which is known as prepare for ‘strict US legislation’, in order to In the filing, MONY put the inconclusive nature of of equals’, the financial terms call for the smaller St depolarisation and which ends the prevent ‘alarming levels of misunderstanding’ over the talks down to its comparatively small size, a Paul to acquire the larger Travelers in an all-stock separation of independent financial advisers the incoming funding requirements imposed by the decision by the mutual companies to remain transaction that offers no price premium to and agents for financial services. This means that US regulators on foreign reinsurance companies. independent, the perceived risks of integration, and shareholders in Travelers. many financial firms may decide they no longer London market reinsurance practitioners must make MONY’s belief that further talks would not be likely No-premium deals can encourage speculation about need to have a direct sales force and will rather sell sure that they are aware of the proposals to reduce to lead to ‘an attractive transaction’. potential rival bidders, though no suiter is expected their products through independent financial current collateral requirements and regularly discuss MONY announced its $1.5 billion acquisition by to make a bid for either Travelers or St Paul. Were advisers and self-employed appointed the matter with their US counterparts. AXA in September and then came under immediate either party to walk away from the deal, there is a representatives. The insurer is currently in attack from shareholders, who argued that the price $300 million break-up fee. discussions with 150 of those who are being made had been too low and said that the company had The combined company will be based in St Paul, redundant, with a view to them becoming self- not held an auction and had been too quick in its Minnesota, though much of its operations will employed appointed representatives. acceptance. Some shareholders have even gone to remain in Hartford, Connecticut. Executives from The company has said that the changes will better court to try to raise the price of the deal. the two companies are emphasising that this was align the sales structure and the emerging market MONY, on the other hand, argued that the deal simply too good an opportunity to miss rather than place ahead of depolarisation. It hopes that this will was fair, particularly when one bears in mind a reflection of pricing trends. result in greater cost and operational efficiency, while MONY’s low return on equity. MONY also said Commentators have said, nevertheless, that the deal allowing the company’s momentum to continue. that AXA had originally indicated a higher price than may be seen as a signal that the ‘hard’ market of rising Friends Provident will be closing six of its regional the one eventually agreed. premium rates, which property-casualty insurers have offices. These are in Bristol, Sunbury on Thames, St been enjoying in recent years, may be on the wane. Albans, Sale, Wakefield and Musselburgh, Midlothian. This could, in turn, indicate that we may be able to expect a wave of industry consolidation.

Restructuring takes effect

As a result of its restructuring, including cutting several thousand jobs and the sale of non-core assets, Zurich Financial Service achieved a turnaround in the third quarter of this year. This gave them a profit of $701 million compared with a loss of $763 million in the year-earlier quarter. In addition, this year’s third-quarter gross written premiums improved by 13 per cent to $13.36 billion from last year’s $11.84 billion, mainly as a Britannic closes doors result of rate increases in US insurance. The company said that the figures were in line with to new business expectations.

Ailing UK life insurer Britannic is taking the final step in its restructuring plans and is saying no to new business at its annuities arm. It has been trying to shore up its finances for some time but is now admitting defeat and says that prospective returns from Britannic Retirement Solutions (BRS), set up three years ago, are too low for it to stay in the market. The decision to move the unit into run-off is likely to lead to some 200 job losses at BRS. Britannic has been looking for a buyer for the unit for months, and this latest move is seen as a logical extension of its strategy, following the closure of its £5 billion with-profits fund to new business, scrapping its dividend and putting a stop to bonuses for policyholders. New sales will now be concentrated through its fund management and unit trust arm, Britannic Asset Management. Shares are unchanged. www.itij.co.uk International Travel Insurance Journal 12 INSURANCEMATTERS

Scor shores up Generali returns to Sirius goes to White balance sheet profit Mountains French reinsurer Scor SA, struggling to shore up its poor balance sheet, said that it would increase Europe’s fourth-largest insurer by premiums, No, its not a new skiing trip. Nor is it anything to the amount sought in its right issue, as well as Assicurazioni Generali SpA, reported a third- do with Harry Potter’s late godfather Sirius Black. selling several real-estate holdings in Paris and ABB, owners of re-insurer Sirius (Sirius Madrid, including its headquarters and some quarter net profit of €206 million. This was International of Sweden, Sirius America and other corporate properties, to raise a larger- especially good news because it reversed a year- Scandinavian Re) are selling to White Mountains Insurance Group of Bermuda, subject to regulatory than-expected €750 million. The extra capital is earlier loss of €401 million, and puts it on track to approval. Sirius employs around 200 people. intended to give Scor greater financial flexibility. achieve its full-year profit target. Shareholders have already pledged €300 for the Two down at Old The company said that rights issue, including principal investor – French its earnings were due to mutual insurer Groupama SA. The pricing of the improved profitability of rights issue is to be decided by the company’s Mutual its underwriting board at an undisclosed date. operations and gains on Scor’s shares rose following the announcement, The founders of Old Mutual’s American fund investments, as opposed reflecting the improvement in the company’s financial management business have been ousted by the position, which will help it to improve its ratings. London-listed financial services group after being to last year’s €669 Over the past few months, Standard & Poor’s has caught up in the US mutual funds investigation. million of losses on pushed its rating down to BBB. This can be serious Harold Baxter and Gary Pilgrim, founders of the investments. Generali for a reinsurer, because many of its clients are unlikely Pilgrim Baxter & Associates fund management said, too, that its to work with any reinsurer rated less than AA. group it bought in 2000, have been forced to underwriting result, Scor’s problems began in 2002, when a sharp rise in resign following conduct that was not considered to which measures the insurance claims occurred in conjunction with the be of the highest standard of professional and combined operating ethical behaviour. profit of the non-life and This development is the latest sign that the life businesses, rose 51 investigation by US authorities into the mutual fund industry is having an effect in Britain. Old per cent to €125 Mutual’s shares have fallen following the million. This was well surprise departure of the two. above most analysts’ The problem seems to revolve around a expectations. passive investment that Mr Pilgrim had in an The results prove investment limited partnership, unaffiliated Generali’s new course to with Pilgrim Baxter, that bought and sold be right, while its shares of certain mutual funds. Mr Baxter was apparently aware of the moves. Fortis pulls out of Spanish market

opportunities for expanding its business there, said the managing director of Fortis Insurance International, Jozef de Mey. It will, however, continue to work with Barcelona-based savings bank La Caixa, mainly in the life policy sector. Catalana Occidente, currently ranked 14 in Spain, made its first move outside the country in August when it took a shared 15 per cent stake in German insurer Gerling NCM, where its partners include financial giants Swiss Re and Deutsche Bank. In

2002, it reported sales 16 per cent higher at €1.3

billion. Seguros Bilbao’s income was €373 million.

Fortis in UK Fortis Insurance Ltd in the UK reported continued growth, with an overall gross written premium (GWP) for the third quarter of 2003 of £418 million, an eight per cent increase over the same period in 2002 (£388 million). ‘Overall, the results of the third quarter are very Dutch-Belgian bank Fortis has decided to sell off strong. Our strategy to enhance our product range its Spanish insurance subsidiary Seguros Bilbao to and our continued commitment to serving the broker and intermediated market is clearly proving Catalana Occidente for €255 million. David Ing successful,’ said Barry Smith, chief executive. ‘In the reports from Spain SME commercial market, we have seen a 56 per cent increase in GWP to £29 million (2002 Q3 The deal, which is expected to be given the green £18.6 million). Similarly, household GWP has light by the authorities early next year, fits in with increased by 14 per cent to £70.8 million (2002 ‘our strategic objective of growing through Q3 £61.9 million). purchases of companies which are good ‘While premiums have remained broadly flat for opportunities,’ said Catalana Occidente president motor, we have maintained our strong market Jose Maria Serra. The two companies are very position with private motor GWP at £291 million similar in terms of products, in that they both use a (2002 Q3 £287 million),’ he continued. ‘Our policy commercial network of agents, and have a portfolio count is at an all-time high, clearly establishing Fortis aimed at the public and small to medium size firms, as one of the largest private car insurers in the UK. he added. Travel GWP has increased by 39 per cent to £19.8 Fortis is pulling out of direct involvement in the million (2002 Q3 £14.2 million). This is, in part, Spanish market because there are limited due to our winning the Post Office account earlier International Travel Insurance Journal www.itij.co.uk

14 TRAVELMATTERS

Airlines vie for LAX Risk of collision on the up

Recent air space reforms in Australia are causing The Australian Federation of Airline Pilots and the The Australian Government’s relationship with of trans-Pacific flights from Australia. He believed concern in the airline industry. Roger Allnutt looks air traffic controllers' union are firmly against the national carrier Qantas is a little frosty following there was a compelling case for additional airline at the reasons changes and have suggested that the risk of mid-air an exchange between Federal Tourism Minister Joe activity between Australia and the US and that he collision was significantly increased under the new Hockey and Qantas CEO Geoff Dixon over the would like to see another carrier on the route. There has been a chorus of concern from pilots and system. In the first few days of operation, there lucrative Sydney-Los Angeles direct aviation route. Cathay Pacific and Singapore Airlines have long air traffic controllers around Australia at the were reports that a number of air safety breaches Miles Clarke reports coveted a slice of the Australian East Coast to US introduction by the Australian government of new air- had occurred, especially by light aircraft whose West Coast traffic but Australia has effectively space rules that came into effect on 27 November. transponders were not functioning properly. Qantas enjoys the lion’s share of this route, with blocked this happening until there is greater stability The new system, which will allow light lanes into areas Hobart, Launceston and Alice Springs airports were some 70 per cent of the market, with competition in the global aviation market. For its part, Qantas used by commercial airliners and involve a reliance on among those considered to be most at risk, mostly from United Airlines, which also operates a has long wanted the right to fly the Hong Kong- visual checks for other aircraft, has been roundly according to a list released by the Australian and San Francisco service. Air New Zealand also has London sector, one of Cathay Pacific’s most criticised by the air industry unions, which claim that International Pilots Association. limited rights to operate the direct route. important and jealously guarded routes. the risks are too great under the new system. It will be interesting to see what happens in the Mr Joe Hockey has called on Qantas to open its Qantas flights to Europe mostly pass through Based on the system operating in the United States, next few months as the Australian government books to provide more information about its Singapore’s Changi Airport. Qantas chief executive light planes operating above 3,000 metres (10,000 presses ahead with the new system. operations on the route. Hockey made the call after Geoff Dixon responded to Hockey’s call to open its feet) must now use transponders. Qantas had earlier described as ‘ill-founded’, views books by saying the airline had provided detailed These are radar devices that make expressed by the minister advocating an opening up information to Hockey on the issue, and ‘did not aircraft visible to air traffic controllers understand why he had chosen to ignore the and commercial craft.

© Stephan Tophoven facts.’ The rules do away with the Dixon described as ‘plain wrong’ suggestions by requirement that light aircraft stay in Hockey that a shortage of seats was having a touch by radio, adopting the US negative impact on the number of people model of 'see and avoid'. The coming to Australia from both the US and National Airspace System Europe. He also rejected the assertion that there implementation group has declared was a compelling case for additional airline that the system is safe and that the activity between Australia and the US and for safety concerns expressed publicly Emirates Airlines to have greater access to are not sufficient to warrant any

Australia. After cutting its Australia-Los Angeles postponement of its introduction. © services to 25 flights a week during the height of the SARS crisis, Qantas has since restored its flights to 34 a week. Stelios gets the bus Niki Lauda has high © Vasco Garcia Check seat availability EasyJet founder Stelios Haji-Ioannou is said to be in hopes talks with bus manufacturers regarding the acquisition of a fleet of © D. Lausberg OAG has introduced an upgrading of the CD version of its vehicles for use by his latest monthly travel planner, which allows users connected to the venture, easyBus. This is expected internet (particularly those using broadband and other ‘live’ to start operating by the spring of systems), to view OAGflights.com. This has the great this year. advantage of showing seat availability. While not as up to The low-cost intercity point-to- date as dealing directly with an actual airline site, it is still point service will use a similar quick and extremely useful. marketing model to his successful The editor of weekly news review, Air and Business Travel News, airline, with fares starting from as remarked recently on the fact that he had not had to chase for a little as £1. Its first route is likely to Manchester–London City flight, which he knew was full from be London–Birmingham. EasyBus checking on OAGflights.com. But it is worth noting that some of will compete directly with the budget airlines are not participating in this, presumably to Megabus, which is the budget protect their strange and often irritating pricing systems. operator that was launched last September by Stagecoach. Niki Lauda, Austria’s ex-Formula 1 world champion BA scores a try and the founder of Lauda Air, is reported to be paying €4 million for a majority stake in the The thousands of fans who cheered England to which was a 1.8 per cent increase on the same Sri Lanka goes Austrian charter operations of Aero Lloyd, which victory in the rugby World Cup in Australia were month a year previously. filed for bankruptcy in October. The airline, which responsible for helping boost British Airways’ Air Pacific traffic, which also includes flights to domestic is called FlyNiki, though he says this is only a passenger numbers in November. The airline Australia, was also up, by nine per cent. temporary name, will fly from Vienna to Egypt, carried 2.68 million passengers in that month, Sri Lanka is launching its first domestic flights in the Madeira and the Canaries. It took off for the first new year, with SriLankan Airlines serving five time on 24 November. © Daniel Lynch/Newscast destinations from the capital, Colombo. This move The original Lauda Air was launched in 1980. Mr reflects a growth in tourism in the country, largely Lauda resigned in 2000, thus allowing majority as a result of its newly brokered peace. owner Austrian Airlines to take full control and Flight information is available on: www.srilankan.lk. reposition it as its charter carrier. Lauda, who qualified as a professional pilot after starting the airline, is still its nominal president. He is said to be

© Alexander Jonsson

International Travel Insurance Journal www.itij.co.uk TRAVELMATTERS 15

© Chris White Low flying aids Air Canada gets new Flying nannies air quality owner First it was the Flying Doctor, then the Flying Nun and now Gulf Air is introducing the Flying Nanny on its Sydney-Bahrain-London service. Roger Allnutt We hear a lot about the environmental It looks like Air Canada will be getting a new reports havoc wreaked by air travel, but leading owner, as it agrees to accept a $650 million bail-out scientists say that it could apparently be from Hong Kong-based businessman Victor Li, the Gulf Air claims that it is a first for an airline to brought under control if aircraft were to son of one of Asia’s richest men and himself a provide specialised care for the under-12s cruise at a lower altitude and flew in Canadian citizen, in exchange for a 31 per cent throughout their journey. The service is available on straight lines. It sounds simple, as stake in the carrier. This is being seen as a move all classes of the Airbus 340 jets that are used on experts say that the rapid rise in emissions from air that will help the Star Alliance airline emerge from the long-haul run. transport could be halted if the industry operated BA man in drug plot The in-flight team of professional, qualified nannies more efficiently. First drink and now drugs… A senior British © Bo Kim (all female) will keep youngsters entertained and This is what Keith Mans, chief executive of the UK’s Airways employee was arrested on 2 December in fed, giving parents the opportunity to relax. It Royal Aeronautical Society, claims. ‘If we invest in connection with a £13 million international cocaine should also be a boon for other passengers, who technology, invest in operational improvements and smuggling plot. He worked in BA’s engineering are often inconvenienced by crying babies and look at the problems in a holistic way, there is a department and was arrested in a raid after a long- fractious children. good chance that we will be able to at least stabilise running police and customs surveillance operation. Note will be taken of any special dietary emissions in the medium term,’ he said. He and five others were charged with planning a requirements and children's meals will be served Research suggests that by flying 6,000 feet lower scheme to bring in the drug on BA flights from before adults. There will also be the usual additional than the current cruising altitude, airlines could cut around the world. The man is accused of collecting child-friendly ‘activities’, such as books, games and the damage caused by vapour trails by as much as packages from drug couriers on the flights, using his TV channels available to keep children entertained. 47 per cent. They would, however, burn more fuel airline pass to evade security.Police say he was The service has been developed with the assistance if they did this. Vapour emissions are thought to be involved in bringing 200 kilos via this route over the of one of the world’s best-known childcare and a major contributor to global warming. past three or four months. educational schools, the Bath-based Norland College in the UK, a special child-care training

bankruptcy protection. course has been established for flight attendants and INE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GR GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEV That said, however, the move has had a devastating others chosen to be the 'sky nannies'. effect on Air Canada shares, which have now been rendered virtually worthless. Mr Li has said he will © Paul Dopson GRAPEVINE fund the purchase himself or perhaps use the assets of his family, which owns the world's biggest port operator and invests in telecommunications, Terror alert over Hallowe’en gun property and drug stores. Creditors will get a stake of about 56 per cent of A security alert on Capitol Hill was triggered by a two women employees the carrier, which has 336 aircraft and 31,000 Hallowe’en costume on 30 October, Hundreds of police had brought Hallowe’en employees. The agreement is subject to a number were mobilised after reports that intruders armed with a costumes to work, one of of conditions, including the future funding of its revolver were wandering around offices used by the US which contained a toy pension plans and approval by the Ontario court. House of Representatives in Washington DC. plastic gun. A guard at the Cannon building told officers that they It’s not clear who must had seen a man go through an X-ray machine with a have looked sillier – the suspicious object in his backpack. It later emerged that women or the guards. Bending over Travelling ferrets backwards Alpine forests and Mediterranean beaches have been beckoning for fats and dogs for some time, Air travel can often be rather stressful – not just how, but new European rules on harmonising psychologically, with delays and lots of waiting passports for pets now also include ferrets. A around, but also physically. Waiting in long decision adopted by the European Commission queues, lifting heavy baggage and sitting in on 27 November means that a standard EU cramped airline seats all contribute to discomfort passport must in future be issued to pets in the back. travelling outside their home country. However, whether you are travelling for business The documents, which will become effective or pleasure, help is now at hand. A new product, from July of this year, provide proof that the called the Impleo®, has been launched and it bearer has been vaccinated against rabies and offers some relief from the stresses and strains of other diseases. They will carry a unique number, air travel. The device works by gently corresponding to a microchip or tattoo on the decompressing and stretching out the spine while animal, and will replace national passports and lying back in an inclined and arched position. other paperwork. It was developed by Jeff Chandler, who came up The pet passport will be the sole requirement with the idea after suffering from back pain for for domestic animals travelling to all EU member many years, following a car accident. He states, except for Ireland, Sweden and Britain, designed the product to provide relief from the which require additional tests for ticks and constant downwards pressure on the spine and tapeworm. It will also apply to the 10 countries poor posture caused not only by travelling but that are joining in May, extending pan-European also by daily activities such as office work, travel as far afield as Cyprus and Estonia. gardening, housework and sports. Ferrets became eligible for EU-wide travel last Used for just 10 minutes year, after intense before and after traveling, lobbying from it can help minimise back Britain. There are stiffness considerably. The apparently two product is pending an million pet ferrets in international patent and is the UK. currently being considered Bags not be the one for inclusion in airports and to give a ferret a

train waiting rooms. microchip or tattoo!

APEVINE•GRAPEVINE•GRAPEVINE •GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEV APEVINE•GRAPEVINE•GRAPEVINE•GR

www.itij.co.uk International Travel Insurance Journal 16 HEALTHMATTERS

Arguing for equal treatment

EU Commissioner Ms Ana Diamantopoulou has after he returns to the state where he is insured by requested details of cases seen by UK Medical his own social security institution, or he can contact Emergency Services in some EU Member States, the institution of the state of stay, which will request where health benefits available to local residents are an E111 form from the competent institution.’ not being provided to temporary residents. This BMESF is concerned that, in many cases, neither the follows correspondence between the British Medical patient nor the insurance company is offered either Emergency Service Forum (BMESF) and the EU of these options, in spite of the fact that all medical Commission for Employment and Social Affairs, emergency services will arrange for a retrospective concerning cases in Spain and Portugal where British E111 for the benefit of the clinic. It seems the EU patients presenting at public hospitals were Commission would consider this discriminatory transferred to private healthcare centres, which then against British temporary residents and has asked invoiced the patient or the insurance company for BMESF for specific case details to be provided so that the treatment given. it can discuss the matter with the relevant authorities In a recent letter to BMESF Chairman Jon Phillips, in Spain and Portugal. Rob Cornelissen, writing on behalf of Commissioner BMESF and ITIJ would both be interested to hear Diamantopoulou, reminded BMESF that Article 22 from medical emergency services or travel insurers in (1) (a) of Regulation (EEC) 1408/71 sets out the other countries that feel their nationals may also be entitlement of a temporary resident of one EU subject to discriminatory practice. Contact details are member state when visiting another. Mr Cornelissen available on the BMESF website (www.bmesf.org.uk). paraphrased the article: ‘An insured person is entitled to equal treatment in the state of stay as a national of the state of stay,’ and commented that this was designed to protect freedom of movement within EU Member States of all its citizens regardless of nationality. BMESF is concerned that British tourists and their insurance companies are being denied reciprocal healthcare benefits that are available to the local population. A number of companies report private clinics invoicing for treatment to British patients who have been referred to their centres by the public hospitals under local partnership arrangements, and investigations show that this does not happen with local residents. There are also reports of public hospitals refusing treatment to a patient unless a valid E111 proof of entitlement form is produced on admission. The patient is asked for evidence of private insurance and moved to a private clinic, not necessarily the nearest one, where again treatment is invoiced to the patient or the insurance company. However, as Mr Cornelissen says, ‘if the person concerned is not able to submit an E111 form to the healthcare provider in the state of stay, he can pay for the treatment himself and be reimbursed

Will SARS return?

It was one of the biggest concerns among insurers But all the research that has been done on SARS in last winter, and the question they are all asking an attempt to find a vaccine or treatment has themselves at the moment is whether it will flare up produced a new threat. In August, a 27-year-old again this winter. It’s a distinct possibility, if only Singaporean researcher became infected in a high- because almost all viruses that attack the respiratory security laboratory. It was the first confirmed case of system are more likely to do this in winter and SARS since June. This highlights the possibility of lab SARS experts are not sure if the disease was truly accidents and of scientific efforts creating a new defeated earlier this year or whether it just reached reservoir of the virus. The World Health the end of it natural cycle and is now preparing to Organisation (WHO) says this is a considerable risk. strike again. A researcher for pharmaceutical company Chiron in China to test vaccine on humans Italy, which is developing a vaccine against SARS, China is planning to begin testing an experimental admits that this may well be the case, in which case SARS vaccine on humans by the beginning of 2004. SARS is likely to come back within the next few Tests of the vaccine on monkeys showed that it was months. The crucial thing is whether it will come effective in fighting SARS and had no serious side- back on a global scale, which would be a effects, and people are the next stage. worldwide emergency, or just in a few isolated The development of a vaccine has been unusually cases in China. Two extremes, but two distinct fast and has overtaken other areas of research into possibilities … The insurance industry must be the illness, such as finding an effective treatment. wondering. Being the first to develop a vaccine has become a The World Health Organisation (WHO) has called matter of national pride for China. But the WHO the possibility of the return of SARS one of the has said that it believes it will be two years or most pressing issues facing public health agencies longer before a vaccine will be ready. around the world. If SARS does return, however, health officials say that they should have the upper hand because they now know so much more about the virus and therefore about how to keep it in check. International Travel Insurance Journal www.itij.co.uk www.airambulancenetwork.com

One of our providers’ aircraft DO YOU KNOW YOUR RIGHTS? The RIGHT place (worldwide) at the RIGHT time (whenever you need us) for the RIGHT price (we have a worldwide network through our providers, that save you time and money) Over our 30+ year history we have developed a flawless process for transferring your patient with the maximum amount of comfort and safety, while minimizing the costs. Worldwide experience for 30+ years (See recent transfers below) We are ready for your call 24/365 Aircraft in our network are located as close as possible to your patient, to save you time and money! Critical Care and Trauma Specialists Commercial Stretchers and Medical Escorts 2003 TRANSFERS Luxor,2004 Egypt TRANSFERS to Cairo, Egypt (2) New Jersey, USA to Damascus, Syria Indian, USA to Bogotá, Columbia New Orleans, Louisiana to Manila, Philippines (2) Minnesota, USA to Kuwait Atlanta, Georgia to Düsseldorf, Germany Florida, USA to England San Jose, California to Istanbul, Turkey Cozumel, Mexico to USA Stanford, CA to Tacoma, WA (Neonatal 2 month old baby) Ecuador to Florida, USA English speaking operators available on: 1 800-327-1966 Bahamas 1-800-522-3467 Puerto Rico 1-800-327-1966 United Kingdom 0-800-89-10-61 1-800-327-1966 Mexico 95-800-010-0027 Air Ambulance Network Jamaica 0-800-422-2181 Japan 1 800 460 4410 905 Martin Luther King Jr. Drive Barbados 1-800-762-7022 Dominican Republic 1-800-722-7086 Tarpon Springs, Florida 34689 USA Tel:Tel: +1 +1 800 800 327 327 1966 1966 * *Tel: Tel: ++ 11 727727 934 3999 ** FAX FAX + + 1 1727 727 937 937 0276 0276 Email: [email protected] 18 NEWSANALYSIS

IndianIndian take-away take-away

has some 40 British nationals employed in Bombay. Technovate, a European travel company, has been hiring foreigners to work in India since mid-2003. Outsourcing makes no difference at the macro level as far as western job markets are concerned, but it does make a positive difference to their business bottom-line since outsourced functions cost about 40 per cent less than they otherwise would.’ Satya also sees the protests as ‘nothing more than a reflection of western prejudice against India. They didn’t protest so much when manufacturing industries went from the West to southeast Asian countries, but why are they so agitated only now, when technology-enabled services are being exported?’

The opposition Be that as it may, there can be no denying an increasingly strident opposition to outsourcing in general. Texas (US)-based Dell Computers has decided to scale down technical support calls to India because, according to spokesperson John Weisblatt (as quoted in The Times of India), its customers have complained, in particular, of ‘thick accents and poor service’. Another adverse development for India is a blanket ban on outsourcing by the state of New Jersey in the US. The fear is that more states in the US may see this as a worthy example and may follow suit. In Britain, Lloyds TSB bank is in trouble over a decision to open a call centre in India. According to reports in the Indian media, the local council in Newcastle had paid Lloyds TSB £230,000 from the exchequer two years ago to set up a call centre in Tyneside, which it did, resulting in jobs for 960 locals. Now, the bank has announced that it would close this centre in 2004 and move the operation The outsourcing of jobs to India has hit the the outcry against outsourcing, India’s BPO wallahs voice-based, requiring native Indians to learn to India. It remains to be seen if Lloyds TSB stands headlines recently and has not been hailed as have steeled their resolve and are taking heart from western accents, often with disastrous results. Our by its decision or gives in to public pressure in what good news by everyone. In India itself, though, it recent decisions by some western multinationals to call centre operatives also have to pretend they are could be a test case. is a story of pride, prejudice and new insurance continue outsourcing, in spite of all the opposition. not Indians, that they are located close to where Overall, however, India’s BPO sector is going vistas. Saby Ganguly reports from Bombay and the western caller is calling from. The operatives strong. A study by Phil Taylor of the University of looks at what the future holds Looking in a crystal ball also have to take false western names. This is Stirling and Peter Bain of the University of But what does the future hold for the outsourcing almost impersonation, basic dishonesty, a disowning Strathclyde (both in Scotland) predicts that Scottish Business process outsourcing (BPO) is India’s industry? Will it come to be seen in the West as an of one’s self. The slogan, ‘Be proud to be Indian’ call centres could see a flood of jobs shipped to hottest new economic sector. It is projected to be unacceptably profit-driven anti-national act, forcing has gone for a toss.’ India in the next few years. Taylor and Bain have worth over US$24 billion and to employ 1.1 million companies to stop exporting jobs? Or will the need However, Satya, like almost all others in India’s BPO reportedly spent the past 18 months studying call people by 2008. That’s a lot of money and a lot of to keep costs low be enough reason for them to field, is dismissive of the anti-outsourcing outcry in centres in Scotland and India, and have identified people. overlook the protests? western countries. ‘The number of jobs coming to several big attractions in sending jobs overseas in But, in spite of this – or perhaps because of it – it is ‘The whole BPO business is primarily based on low India’s BPO sector is only in thousands, not millions, the near future, in spite of a slew of hidden costs taking its toll on Indian pride, while stoking angst costs,’ Bombay-based Web entrepreneur, Pranav as of now. Foreign nationals are also being that could discourage further offshoring in the over a perceived western prejudice. In the face of Satya, told ITIJ. ‘Most of the BPO jobs we get are employed in India. For example, Britain’s Prudential longer-term.

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

INSURANCE MATTERS continued from p.1 The road to Damascus

When Zaher Sadaoui was studying the German Syria, like its wartorn nextdoor neighbour, Iraq, is language in Germany 30 years ago, in preparation basically a virgin market. With $84 million in for a degree in engineering in Cologne, his host premiums paid to the state insurance company in family said to him, ‘Why is it that all of the Syrians 2000, Syria has one of the smallest insurance who come here only study medicine or markets in the world. Premiums paid in Qatar in engineering? Look at that 2x2 metre shop across the same year totalled $158 million, in spite of the the street. It has 12 types of insurance – fire, theft, fact that Qatar has a population 30 times smaller accident, etc.’ than that of Syria. And that changed Zaher’s life. He has been in the Although some people have a hard time believing insurance business ever since. He son, Waiel, that Syria will really open its markets after over 40 returned to Syria from Europe in 1884 after eight years of a socialist economy, there are nevertheless years of studying and working in the insurance field, signs that change is, in fact, taking place. Three and then became a partner in his father’s banks have been approved to operate in Wyria and independent company. tishrin University in Lattakia has begun holding Now, this father-and-son team – and other evening classes in insurance. insurance specialists like them – are excited about There are many 2x2 metre shops in Syria, and the prospect of private banks soon opening in Syria there are many eager insurance experts like Zaher after an absence of more than 40 years and are Sadaoui and his son. They are looking forward to asking themselves whether the private banks will the day when the road to Damascus will be open. open the way for private insurance.

And if this applies to Scotland, there is little reason why it should not apply equally well to The lure of lucre the UK on the whole and other European As we read what Saby has to say, we read that countries, argues Pranav Satya, Web thousands of young call centre workers in India are entrepreneur in Bombay. celebrating the new experience of having money in the pockets of their new designer jeans. They are The insurance world watching soaps like EastEnders and Coronation Perhaps the strongest vote of confidence in the Street, even Friends in an attempt to perfect their survivability of India’s BPO business has come English (or American) and to make themselves from the insurance world. Global insurance sound as ‘local’ as possible. broker and risk manager, Aon, in an arrangement Because it is not only the UK that is relocating jobs with Lloyd’s of London insurers Kiln and Liberty, to India. Thousands of Indians are staffing operations has sold a unique insurance policy to an that have been established not only by British, but undisclosed European airline that is setting up call also by American and Australian firms in the past five centres in India. The policy protects the airline’s years. The companies concerned reckon they can outsourcing investments from unforeseen make cost savings of as much as 70 per cent on troubles and covers relocation costs in the event domestic operations, by paying much lower wages of things such as war, terrorism, trade embargo, than they would have to cough up in the West. strike or expropriation by the host government. But in Indian terms, the money is amazing. An annual According to reports published in India, Charles income of £5,000 may not seem much to us in the Keville, Aon’s director of counter-terrorism and West, but in this part of the world, it’s a small political risk, says he is lining up similar policies for fortune. As a result, the people who are taking call- financial houses and software companies that centre jobs, tempted by the money on offer, are also have outsourced. ‘People have been on the doctors, lawyers and accountants, all of whom are phone within minutes of finding out that such prepared to do shifts for the pay they’ll get in return. insurance is available,’ Keville is quoted as saying. They take western names and they practise their In the next issue of ITIJ, News analysis will look at accents, they download British tabloids so they know the issue of outsourcing jobs to India from the what their customers are reading, and they even western point of view. attend seminars on the Royal family. Some people have raised concerns about the loss of identity that this must entail and the problem of developing split personalities, but this is of little concern to these employees and most of them are hooked.

www.itij.co.uk International Travel Insurance Journal 20 FEATURE Rich pickings

Kidnap and ransom is a highly profitable business, year and rising. are providing the with some 15,000 incidents a year worldwide and Ransom amounts vary with the country involved steady supply of a market value well in excess of $500 million a but demands of several million dollars are not potential victims year. Not surprisingly – because people always see uncommon, though amounts may be as little as upon which opportunities where they exist – the K&R $200 or less for a local farmer. Average ransoms kidnapping thrives. Although well publicised, it is still – not all countries are as diligent. About 80 per cent insurance industry is growing at a correspondingly are now decreasing, as the wealthier take greater rare for tourists in at-risk countries to be kidnapped of kidnaps in Colombia are carried out by the health rate. For those of you who missed Dr Sean precautions, thus displacing risk to the less wealthy. but the risk exists, especially for those venturing off Marxist-Leninist FARC in Central and Southern Keogh’s fascinating talk on the subject at ITIC in the beaten track. Colombia and ELN in Central and Northern Rome, he has adapted it for you to read here Who and where? Although often lucrative, kidnapping is not always regions. Forty percent of FARC income originates In most countries, about 90 per cent of hostages about money. Several countries, such as Chechnya from kidnapping and the kidnapping business in Kidnapping is often portrayed as a spur of the originate from the poorly protected local middle and the Yemen, still resort to kidnap primarily as a Colombia is worth between $150million and moment, irrational, cultural phenomenon. It is not. classes but rich pickings are found in countries with political weapon, but political organisations in many $500million per year, with average ransom figures Kidnapping is most often carried out by well- higher rates of foreign domestic investment and countries (particularly in Latin America) now use probably being around $130,000. Abduction occurs organised terrorist and criminal gangs and is very where multinational corporations operate – kidnapping more as a means of extracting cash to mainly outside towns and cities and Colombia is profitable. although foreigners account for only 10 per cent of fund their cause, mostly because of a decline in one of the countries where adventure tourists are It is estimated that there are around 15,000 kidnaps victims, ransoms are usually much higher than those funding from sources such as the former Soviet at greater risk, though the chance of a tourist being a year worldwide, with about 80 per cent occurring demanded for locals. New economic territory Union. Other organisations or individuals simply kidnapped is still very low. in Latin America. Kidnapping is now big business development and the presence of natural kidnap as a convenient method of wealth Mexico is second on the list for kidnap frequency, with a market value well in excess of $500 million a resources, attracting multinationals and their staff, generation. This distinction sometimes becomes and the comparison of abduction tactics between blurred; in April 2000, the Islamic fundamentalist group Abu Sayyaf orchestrated the mass kidnapping of westerners in the Philippines, where initial political demands were eventually overshadowed by the payment of a large financial ransom. Like all criminals, a kidnapper will weigh up the risks of being caught and punished versus the potentially large rewards on offer. About 15–20 per cent of kidnappers are caught (more in developed nations such as the UK and the US). Countries with a weak legal and legislative framework are higher risk for kidnap episodes, especially where corruption is rife: Jose Balbontin, the former Mexican Chief of Police, was sentenced to 50 years in prison in 2000 following revelations that he was a long-term member of a gang involved in kidnapping.

The badlands Kidnapping can happen anywhere, but by far the most occur in Latin America. Colombia tops the world with over 1400 kidnappings reported so far this year. This high rate may partly reflect the fact that Colombia is making efforts to combat Mexico and Colombia illustrates how individual kidnapping and is trying to accurately record figures kidnappers will adapt to the differing responses and effectiveness of local police and security forces; criminal gangs operating in cities in Mexico, where detection rates are relatively high, use more violence to frighten those negotiating in order to make them pay up quickly (so reducing the chance of being caught). In rural Colombia, powerful guerrilla groups operating in demilitarised zones are often effectively beyond the force of law and can extract concessions over longer periods of time. Colombian tactics include ‘the double’, with a second payment being demanded after the first, particularly if the first is paid quickly in a panic, suggesting to the kidnappers that they have pitched their ransom demand too low. The confidence of Colombian gangs in drawing out negotiations in this way illustrates their degree of

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

victims who do not survive a kidnapping, most is no insurable interest, travel agents deaths are due to a failed escape or rescue attempt cannot buy the cover on behalf of their or to complications resulting from a hostage’s pre- clients anyway’. existing medical problems, for instance poorly Although very few tourists will take on controlled diabetes or heart disease. K&R insurance, the problem of kidnap abroad is an increasing concern. The K&R insurance industry Education is the key to prevention, The K&R insurance industry is growing at 15–20 particularly for vulnerable individual per cent per year and covers policyholders against travellers and central to this is the access losses resulting from a kidnap incident. K&R insurers and sharing of reliable and up to date offer preventive measure advice, financial information. Individuals must manage reimbursement and paid access to kidnap response their own risk by being sensible and contempt for law enforcement. consultants. Following policy sale the risk is then responsible. The Foreign Office’s travel Other countries where kidnapping is endemic placed with underwriters (such as Lloyd’s who now advice service is useful but the advice include Brazil, the former Soviet Union, Philippines, have 75 per cent of the market). At present, it is given is very broad; an improvement Nigeria, parts of India, Ecuador and Venezuela. estimated that only about one per cent of kidnaps may be to present advice in different An increasing problem is the rise in recorded are covered by K&R insurance. ways for different types of travellers, numbers of piracy incidents on the high seas, with The K&R response consultant works independently using up to date internet technology. 344 attacks in the first 9 months of 2003, the of the policy and advises the client, who decides on Most importantly, travellers should have highest since international records began in 1991. ransom payout value. The policy is one of knowledge of local risk and adhere to Piracy may include kidnapping with particular black- reimbursement of loss by underwriters after the basic safety principles, being aware of spots now well identified; the Malacca Straits event; the family or employer actually pays the their surroundings, keeping a low profile between Indonesia, Malaysia and Singapore force kidnappers the ransom, not the underwriter. and an unpredictable routine. They large merchant vessels to slow down to negotiate It is important to realise that this is an should always let a contact know where shallow waters, leaving the ship vulnerable to attack. indemnification policy and insurers will not insure they are and what their plans are. Those Local Aceh rebels have taken crews hostage and for an amount greater than net assets of company at particular risk should consider specific demanded ransoms to pay for heavy weapons to or individual. This is significant because most K&R training. fight for their political cause. The going rate for insurers will have a minimum sum insured of at least £500,000-£1m. Minimum premiums start at around travel insurers seeking cover. A spokesman explains; £2,000. ‘like travel insurance, kidnap insurance would be Most travel insurers and taken out in the individual’s name, so it is the tour operators are individual’s assets that are considered when setting concerned about the the sum insured, which means that most kidnap of holidaymakers independent travellers are ineligible. Not only that, rather than those who but travel agents recognise that identifying the need work abroad for to take out K&R insurance doesn’t exactly promote corporations, and these a good reputation for a holiday destination. Basically, figures clearly leave the K&R insurance is not something that can simply be vast majority of adventure packaged up with a travel policy and because there tourists and travellers out of the game. Because tour operators work on very small margins, most would also find such premium payments out of the question. It is usually a condition of K&R release now is around £60,000, which is usually insurance that policies remain secret and because of paid rapidly. On occasion, tourists on smaller this clause, a tour company would not even be able pleasure boats have also been victims of abduction. to advise its clients that K&R insurance was in place; even if they were providing what might be seen as Chances of survival a commercially attractive duty of care, they would Most kidnap victims survive their ordeal, but the be unable to advise potential clients of that fact. process of release can be drawn out over months Asset Security Managers, a leading K&R insurer, has or even years. Kidnappers may terrorise with an been approached in the past from travel agents and initial silence of months, but will almost always negotiate and figures show that 70 per cent of Surviving a kidnap hostages will be released after negotiation and ransom payment. In fact, 10 per cent will be released without any ransom payment at all. • Don’t try to escape unless it is very likely that Although the popular press and Hollywood have you will succeed

• Obey your captors and be submissive

• Keep as physically and mentally fit as possible with mind games and daily exercise

• Eat all that is offered to you

• Try to make friends with your captors and personalise your relationship with them

• Try not to negotiate yourself as this may interfere with others negotiating on your immortalised the concept of hostage rescue by behalf private individuals or companies, this is not the case in reality; any rescue attempt is carried out by the • Be aware that a rescue attempt may occur – national army of the country in which the kidnap decide how you will react ahead of time and has occurred, with about 10 per cent of kidnaps identify the safest place to be resulting in a rescue. Unfortunately rescue attempts are fraught with danger; of the 10 per cent of • Don’t fall in love with your kidnapper!

www.itij.co.uk n International Travel Insurance Journal 22 FEATURE State v. private healthcare – part 6 Repatriation – at any cost?

Latin American insurance companies have the linked with economic growth (expressed in US reputation, when things go wrong, of being quick dollars). Flat growth and a 30 per cent decline in to repatriate their insureds, regardless of the the real’s value in 2002 have produced further medical condition involved. Joaquin Rodriguez declines in outbound travel, already reeling after the examines the proposition 1999 devaluation of the real. Only 2 million Brazilians left the county in 2002, less than half the Although still small compared to the US or amount in 1998, when the currency was at its European markets, the Latin American travel strongest. insurance market is gaining importance year after According to InfoAmericas, Brazilians travel abroad year. When economies grow and the currency less frequently than Mexicans for several reasons. strengthens, Latin Americans like to indulge The most important is that Brazilians are more tied themselves in foreign travel. to home than Mexicans. The number of Brazilian What first motivates Latin Americans to travel, citizens living abroad is less than two million out of a however, is the prospect of visiting friends and population of 165 million – just over one per cent. relatives. According to a study carried out by In comparison, no fewer than 12 million Mexicans InfoAmericas – a leading market intelligence and reside abroad, about 11 per cent of the Mexican- strategic consulting firm – more than 70 per cent of born population. Visiting friends and relatives trips are planned around visits to loved ones, which therefore draws relatively few Brazilians abroad. is almost double the rate in the US. As more Latin When it comes to business travel, total international Americans migrate abroad, mainly to the US, the trade (imports plus exports) totals about US $115 potential demand for outbound travel keeps billion for Brazil versus US $361 billion for Mexico. growing, spiking when local currencies are Mexicans almost invariably confront visa obstacles strongest. when travelling abroad, whereas Brazilians can

The biggest economies Mexico, Brazil and Argentina are the biggest economies in the region and also the main travel markets. Mexico, with a population of around 100 million, continues to lead Latin America as the largest source of outbound tourists thanks to a stable and strong currency and increased links with the US. Outbound travel volume is highly correlated with per capita GDP (expressed in dollars). In 1994, more than 12 million Mexicans travelled abroad, most commonly visiting family and friends in the US. In 1995, the 60 per cent devaluation of the peso led to a 35 per cent drop in Mexico’s dollar- denominated per capita GDP. This caused a proportionate decline in outbound travel from 12 million to 8 million tourists. And as Mexican dollar purchasing power has gradually recovered, so has outbound travel volume. 2002 was a record year for outbound Mexican tourism, in spite of the 11 September attacks and rising unemployment in Mexico. Close to two-thirds of Mexicans travel to visit family and friends. With an estimated 350,000 Mexicans moving permanently to the US each year, there is always more family to visit in the US. Another 1.2 million Mexicans cross the border each year for the events of 11 September. More than 30 per cent statistics. The main destination has always been seasonal labour but return quickly to Mexico and do travel to Europe, and to neighbouring Mercosur of outbound Brazilians head for the US to see the Uruguay (1,300,000 travellers in 1998) followed by not tend to attract visitors when abroad. Outbound countries, without a visa. Nonetheless, the relative country, study there, and to shop for luxury items Chile (760,000), Paraguay (560,000) and Brazil Mexican travellers also include Mexican business geographic isolation of Brazil from the travel that are far cheaper than at home. The prospects (500,000). Travels to neighbouring countries people flying overseas in pursuit of trade. destinations favoured by its residents means that for the future are that Brazilian outbound travel will therefore account for the vast majority of the total travel costs are high, limiting the numbers who can slowly begin to recover. number of travels made by Argentines (77 per cent Brazilian travel patterns afford to leave the country. in 1998). The acute economic crisis that affected Brazilian outbound travel patterns are also tightly Travel by Brazilians to the US has been slowed by Argentinian tourists As for Argentina, during the 1990s the number of outbound tourists increased by 92 per cent thanks to the parity between the dollar and the peso, raising from 2,398,00 tourists in 1990 to 4,591,000 in 1998. Nevertheless, these figures must be carefully considered as the statistics refer to tourists travelling more than once to different destinations. In fact, local tour operators estimate that Argentines nowadays prefer to make short trips abroad rather than spending one long month away on holidays, subsequently affecting official International Travel Insurance Journal www.itij.co.uk FEATURE 23

the country over the last three years has had a tremendous impact on the Argentinian travel industry, which is slowly trying to recover at present. When it comes to travel insurance, statistics for the region are difficult to obtain. Nevertheless, and considered best to treat the client locally. employees working full-time. patients. ‘It is quite the opposite, I would say,’ she although every country represents a different reality Most of the main companies operating in the Latin A standard insurance policy, such as Assist-Card assured us. ‘Generally speaking, and due to Latin and policy prices and coverage differ from one American travel insurance and assistance market Classic, can cost the final client around US $93 for a American low medical standards, our patients prefer nation to another, it is commonly agreed that agree to accept that the average maximum medical period of 15 days. The medical expense coverage to stay in their destination. maximum medical expense coverage is substantially expense coverage is low, but they utterly reject the can vary between US $6,000 and 250,000, ‘The decision to repatriate a patient is always low when compared to that in the US or Europe. claim that their repatriation policies are based on depending on the characteristics of the product. entirely down to our specialised medical teams and Another presumption is that local companies prefer financial criteria. Here follows their points of view They even have a premium policy, Assist-Card to the patient’s family. Never, and it is both against to repatriate clients in favour of paying out for on these apparently controversial issues. Privileged, with a maximum coverage of US our company policy and the nature of our business, medical expenses, even when it might have been $1,000,000. do we order the repatriation of anyone when In case of assistance Alexia Keglevich, Assist-Card managing director, hospitalization has been clinically recommended,’ Assist-Card has been thinks that costs are certainly cheaper in Latin commercialising a wide range of America than in the US or Europe due to the travel assistance-related products devaluation of the dollar and the appreciation in 17 Latin American countries of the euro. Ms Keglevich explains that since 1972 and they roughly repatriations have an average cost of US have 1.5 million clients in the $40,000, but when the repatriations take region, for whom they annually place between American countries, the cost handle around 45,000 assistance goes down. During 2003, Assist-Card has cases. Assist-Card owns and carried out 21 repatriations from Europe and operates over 40 offices in the the US to Latin America. area, including premises in major Ms Keglevich dismisses the idea that Latin airports, with more than 2,000 American companies prefer to repatriate their

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

she emphases.

Going Dutch Gouda International, part of the Dutch insurance group De Goudse NV, is the company behind the ISIS insurance products. ISIS – market leader in insuring student and youth travel – has a nearly 50- year-old history and is sold in over 45 countries throughout the world. In Latin America it has been commercialised in 18 countries since the 70s and at present they have a portfolio of 50-60,000 policyholders. The ISIS travel insurance is developed in close cooperation with local sales organizations and, as local circumstances can vary considerably, most countries have their own specific product. In Mexico, the price of a two-week policy (to any destination) is US $29 for students and US $34 for

non students, with a maximum medical expense offered by European companies, a circumstance coverage of US $50,000. For a US $100,000 that according to him is explained by to two main coverage a student must pay US $41 and a non- factors: volume (less insured people, which makes student US $50. impossible to achieve economies of scale) and price In Brazil, a student willing to take out an ISIS travel (Latin American coverage is more economical than insurance policy for 16 days will have to pay US $50,000 medical expense coverage; US $76 for a that commercialised in Europe). Mr Márquez also $61 for a maximum medical expense coverage of US $75,000 coverage; and US $88 for a US states that the average cost in Latin America is 60 US $50,000. There are also several other options $100,000 coverage. per cent cheaper than in the US. which include the following prices: US $64 for a US In Argentina, a two-week policy for a student costs Universal Assistance handles around 40,000 cases a approximately US $39 for a US $50,000 maximum year worldwide, 34,000 of which are related to its medical expense coverage and US $46 for a US own assistance programmes. As for repatriations, $100,000 maximum coverage. The prices for a during last year they carried out 400, including non-student policy are US $44 (US $50,000 interregional (e.g. Uruguay-Argentina) and coverage) and US $52 (US $100,000 coverage). international (e.g. Spain-Argentina) cases. Their When confronted with the question of low medical criteria for repatriations are always the same: coverage, Jesús Corredoira, business development ailments must permit a repatriation by plane; the manager at the company, believes they are not company also needs to have the consent of both necessarily low. ‘In Latin America, we offer a the patient and his/her family, as well as the consent minimum of US $50,000 per event, while in Spain

some competitors offer €6,000 coverage…’ In the case of repatriations, Mr Corredoira is clear. ‘You cannot take any risk with a client’s health. No hospital will allow a patient to be discharged just so that he can be repatriated. Our medical staff will not approve any repatriation that carries a risk for the insured. ‘It is a different case when the treatment is necessary or not,’ he added. ‘Keep in mind that travel insurance is only a temporary insurance, some non-emergency treatments could be postponed without any medical problem.’ of their clients when the patient is a corporate Better to recover at home client; medical authorisation must be obtained; and Universal Assistance provides travel assistance finally medical expenses must be within the products to 2.6 million clients in Latin America maximum coverage. through retailers (travel agencies and tour- Mr Márquez does not completely agree with the operators) and corporate programmes (insurance presumption that Latin American companies are companies and credit cards). They have commercial quick to repatriate their patients regardless of any offices in nine countries in the region as well as medical consideration. ‘That is not true, since a other minor premises in many other Latin American medical repatriation does not only depend on the nations. convenience of the insurance company, but on a The company had a turnover of US $15 million in whole set of medical and professional conditions.’ 2002, US $11 million less than the previous year, Moreover, Mr Márquez believes that, in many due to the Argentinian monetary devaluation. A cases, their patients prefer to recover in their own Universal Assistance standard policy for 15 days countries than in faraway destinations. ‘According to costs US $84 for a medical coverage of US our experience, I must say that whenever the $12,000, or up to US $30,000 if an accident repatriation is feasible, our patients want to be occurs. repatriated home so that they can recover in the Ignacio Márquez, Universal Assistance international place where they have both resources and business development manager, also agrees that protection, that is to say, the cities where they live Latin American health coverage is lower than that and where their families are closer.’

International Travel Insurance Journal www.itij.co.uk PROFILE 25 Mummy’s boy (and proud of it!)

A relatively new boy at International SOS, where and touch every wall. So the wide world was management team. Eventually, he was made sales regular travelling. He loves all the great characters in he works as business development manager, Mike actually very small – and big sister conveniently on and marketing director at the age of 23. films – ‘I always wanted to be Indiana Jones,’ he Ramsay is enjoying every minute. But then he the end of a phone. But then Mike met Stephen Madeley, business says – epics, adventures, anything. His favourite film enjoys everything, so that comes as no surprise. His first job in Hong Kong was for a company called development director for the UK at SOS is Legends of the Fall, with Anthony Hopkins and He talked his socks off to Anne Johnson Santé International, selling Kirby vacuum cleaners, International. This was at ITIC in Nassau and that Brad Pitt, and he reckons to have seen it some 40 which – in these pre-Dyson days – had the was another turning point. He had always wanted times. His favourite actor is Nicholas Cage, Mike has come a long way from the early days reputation of being good for asthma. He spent a to work for SOS International, which he had always favourite actress Sandra Bullock. spent at his mother’s side. A ‘Jack of all trades’, in year in Hong Kong and came back to England on thought was just the best company there is, and he ‘But I hate sad or scary movies. I don’t have any of his own words, he likes to get involved in the spur of the moment, couldn’t believe his luck those.’ everything he does, be it a favourite song – his just three days before when Stephen offered him So it’s not really a question of ‘anything’. And that, favourite singer is Cat Stevens – a best-loved movie Christmas. He’d loved it in a job. Maybe being hungry perhaps, says more about Mike than anything else. or a job. Mike is one of the most enthusiastic Hong Kong and was had paid off, after all. He’s a really nice guy, friendly, sensitive, sociable, people I have ever had the pleasure of meeting, appalled at what he saw as Mike joined SOS in August who enjoys life and practically anything that it can and sometimes it can be hard to keep up with him. the biggest mistake he’d of this year, and he still throw at him. ‘I wake up in the morning, feeling that it’s a lovely ever made in coming back. thinks it’s the best. He was day. It’s bound to be. They always are. People say given a piece of paper The downside to me, “Why do you have to love everything, Turning points when he joined the Mike talks a lot about all the things in life that he Michael?” But I do – I just do.’ It took Mike a while to find company, entitled ‘Visions loves, but there must be things he doesn’t like. And he grins. His looks are suggestive of someone his feet again and he was and values’, which Aren’t there? even younger than his 25 years. With his tousled, looking for some kind of somehow encapsulates the ‘Well, I suppose so. I hate being criticised, for a reddish hair, Mike has an infectious, boyish grin, and temporary work before soul of the company. The start. So I don’t criticise other people, either. Which anyone who spends more than a few minutes in his going back to Malaysia in scrap of paper has become is why I like to lead rather than to manage. I like to company will end up grinning too – even if they those days. A fundamentally a bit scrappy by now but be up there, in front, waving a flag saying, thought they didn’t feel like it. They just won’t be decisive person, Mike is a he still has it in his wallet at “Onwards!” Rather than at the back saying, “You able to help themselves. big believer in making all times. guys aren’t doing it properly.”’ decisions, but also in And, needless to say, he But what about his private life? A girlfriend would be The female presence reversing them if he feels loves it here, too. ‘I wake nice, for a start, I suggest. Mike has what most of us would regard as an he was wrong. up in the morning and I ‘Oh, I don’t know. Relationships are difficult. You see enviably close relationship with his family. When he But it was then that he met Mike Ramsay speaking at ITIC in Nassau in 2002 can’t wait to get to work. so many people who are very unhappy. Maybe I was a child, they spent half the year in Spain and a man called Andrew Moving to London has watch too many movies. half in England. Most of his time was spent at his Blowers, one of the founding partners at Inter been a bit of a culture shock – and if I had the ‘Now dogs, they’re different. My family have always mother’s side (his sister, Gabrielle, is nine years Group Insurance, who offered him a job as sales chance I would be country boy again – but I just had dogs. They never let you down. There’s older than him), and when it was time for him to go coordinator and took him under his wing. Mike has love my job. I’m proud to be part of the insurance something about a dog’s pure honesty that’s just to school, he couldn’t bear to be parted from her. a glowing memory of Andrew’s part in his career. industry. It’s so close-knit, everyone knows wonderful. There’s no political stuff, no barriers. If So she had to spend the day at the back of the ‘He taught me so much. He treated me as a friend, everyone, and people have a passion for what ore people were like that, the world would be a class, as a constantly reassuring presence. Which is not an employee, and he was a huge inspiration to they’re doing, they really care passionately about better place.’ strange, really, because he comes across as a me. He made me understand that life, a career, the business. That’s great. That’s the reason I will And he laughs – but perhaps not quite as loudly as supremely confident young man and it’s hard to whatever – it’s a long rocky road and you’ve really stay in the industry.’ all the other times. He’s thought about this. imagine him needing his mum to be there. He tells got to want things if you’re going to stand any Mike is not sporty, though he likes sailing. That said, me he’s actually very shy, though, and often rather chance of getting them. You have to be hungry.’ Nineteen to the dozen though, and after seeing Jaws countless times, he is nervous. He’s obviously good at hiding it. That was a turning point for Mike, a sort of lightbulb Mike talks a lot and very fast. He’s used to that and ‘scared witless’ of the sea. After school and a year doing a GVMQ in business over the head moment, and he feels he owed Inter it’s important in his job. There’s nothing more ‘If I can’t control something, it scares me. It’s the management, something he recalls as having had Group in general a lot, and Andrew in particular. He important than the gift of the gab when you’re sheer honesty of the sea that’s the really scary ‘no positive effect at all’, he went to China. Without rose quickly up the ranks at Inter Group – team running a cell centre, and his business now is in thing.’ Mum? Yes, but his sister, who was known as leader in a call centre, then assistant manager, then marketing and consumer trends, for which The honesty of dogs, the honesty of the sea … ‘Mummy 2’ and was also very protective of him, call centre manager, and then, at the tender age of communication is probably the most important there seems to be a theme emerging here. was living there at the time with her husband who 20, he was sent to Ireland to set up the Irish call attribute a person can have. Honesty is clearly something else that Mike has a bit worked for an oil company. centre. So it’s not surprising that he’s got a bit of a thing of a thing about. So while his trip to Hong Kong represented his first Mike was on a steep learning curve but, needless to about communication. ‘Most people are afraid to ‘Yes. There’s no point in putting on a mask. People step out of reclusiveness and into the big wide say, he loved every minute. ‘I like change and I like talk,’ he says. ‘We’re supposed to live in a world in rarely understand one another at the best of times. world, it was only a little step. Mummy 2 replaced soaking up knowledge and information. I feel which communication is number one – telephones, How to Win Friends and Influence People is just one Mummy 1, and he was still under the wing of one depressed if I get to the end of the day and I feel mobiles, emails, and so on – but email, in particular, of the best books there is. I give a copy to of the two most important female influences in his that I haven’t learned anything.’ has actually caused a lot of problems. It’s the most everyone who works for me. It’s a fantastic book. young life. He spent 18 months in Ireland but in the end he superficial way of communicating there is. People People often don’t understand one another because He found somewhere to live for just £30 a month, didn’t feel it was really ‘enough of abroad’, and he aren’t really communicating through it at all, they’re they’re not listening. They hear what they want to in a room in which he could stand in the middle came back to the UK to run the account and just hiding behind their emails.’ hear. But if you fit, you fit; if you don’t you don’t.’ All of which is a bit surprising coming out of the Which perhaps brings us back to relationships… But mouth of a young 25-year-old. It sounds more like then I get the feeling that’s for another day. what an old fogey might say, and the thought struck He’s come a long way for someone so young, but me that Mike is a young man with an old head. I what is his ambition now? remembered what he’d said about his favourite music ‘Oh, still to be Indiana Jones,’ he says, and he being by Cat Stevens – and I thought, at his age? laughs. With more gusto, this time. There’s nothing Mike likes better than sitting in a His mother is a lucky woman – she should be café and watching the world go by, or listening to proud of him. people chat. He loves playing chess, too, but his number one love (other than work, of course) is that he is the biggest movie buff. He has some 1,000 films on DVD and video, and he buys around 25 new ones a week. ‘When I was about nine or ten years old,’ he recalls, ‘I would save up all my pocket money and spend it on videos. I remember queuing in a shop – W.H. Smith, it was – clutching my video, and the guy in front of me had a stack of about 15. I swore then that, when I had a job and money to spend, I would spend it all on videos.’ Which is more or less what he does. That and www.itij.co.uk International Travel Insurance Journal 26 WORLDMARKETS The UK travel insurance market

Since the early days when a few adventurous Brits to eat fish and chips and drink warm beer braved the Channel and lost their suitcases, a on their annual summer holiday. large industry has grown to look after them. The price of these new, tempting holidays Fiona McDonald, travel product manager at in sunny destinations was low enough, and FirstAssist and chair of the ABI Travel Insurance standards of living in the UK had risen high Committee, gives an overview of the travel enough, that it was no longer necessary to insurance market in the UK and how it has be wealthy to afford a holiday abroad. developed British travellers responded like a wave of lemmings going off the edge of a cliff. Which The growth of the travel insurance market in the is when they found they needed travel UK is inextricably linked with the growth of insurance. overseas travel by the UK population. If you go Having taken the British National Health back to the swinging 60s (yes, some of us can system for granted since the late 1940s, it remember that far back – just!) the number of trips came as something of a shock to the Brit UK residents took abroad was small. Travelling to a abroad that no comparable level of care strange country where they spoke a foreign was provided for him or her when they language and ate outlandish things was not travelled beyond the boundaries of ‘this something the average Brit would consider. Most scepter’d isle’. They also found they needed grown steadily since the early 70s, but the rate of Of course, not every single resident of the UK flees people from the UK agreed with the old King, insurance cover for losing their baggage while on growth has slowed significantly in the last couple of ‘this royal throne of kings’ every year. In fact, it’s George VI, when he said, ‘Abroad is bloody.’ their trip, (something they did with monotonous years. As ever, the growth in sales of travel estimated that only 40 per cent of the total adults in regularity) and for cancellation if they fell ill before insurance is closely linked to the travel patterns of the UK travel abroad each year. It doesn’t take a Where did it all begin? they travelled. the British public. So how much travelling does the mathematician to work out that these people must As a nation, we’ve always been divided from our Ever responsive to the needs of the customer, the average Brit do? be taking more than one trip each. More and more Continental cousins by a narrow strip of water, UK insurance industry stepped in to design products of us are taking more than one trip abroad every which we stubbornly refer to as the English and services to help the British traveller. And from Tripping through the years year, and in recent years the ‘mini-break’ of Channel, without caring too much about what these humble beginnings, a large industry has No, this is not a reference to any drug-related between one and three nights outside the UK, has others want to call it. The barrier presented by that grown, with travel insurers providing the insurance activities from the 60s! In 2001, UK residents took been growing in popularity. In 2002, over 7 million water was as much psychological as physical, and cover, assistance companies supporting the traveller 58.3 million trips abroad, spending a total of 579 trips abroad fell into this category. only the adventurous and wealthy traveller was when they get into trouble during their trip, claims million nights outside the UK. (That’s the equivalent A significant factor in the increasing number of trips willing or could afford to set out on an aeroplane or handlers dedicated to receiving the claims of the of 1,586,000 years!) Compare this to the 19 million taken per person has been the growing numbers ferry to visit foreign climes. returning travellers, and ancillary businesses trips taken in 1981 and it’s easy to see how much and wealth of the ‘grey’ market. The older, retired But the 70s changed all that. A new wave of charter providing all the services these companies need. tourism and travel has grown over the last twenty traveller has more time to spend on their trips, and airlines and package tour operators came into being, In 2002 the size of the UK travel insurance market years. The number of trips in 2002 was around 60 in recent years has become increasingly affluent. offering the wary Brit the chance of experiencing was estimated as having a gross written premium of million, and was forecast to grow to over 61 million This market has presented challenges to the travel Mediterranean sunshine at a low cost, while £574 million, expected to grow to about £600 by 2003. For a country with a population of 59 insurance underwriter, as with increasing age, the providing reassurance that they would still be able million in 2003. The value of premium written has million in 2002, that’s quite a lot of travelling. frequency and cost of claims also rises. It will be

INTERNATIONAL TRAVEL INSURANCE CONFERENCE 2004

BRIGHTON 11th - 13th MAY 2004 ITIC

For further information and travel reservations call: VOYAGEUR EVENT MANAGEMENT, VOYAGEUR BUILDINGS, 43 COLSTON ST, BRISTOL BS1 5AX tel: +44 (0)117 922 6600 fax: +44 (0)117 929 2023 email: [email protected]

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

interesting to see if this market One of these exceptions is the sale of insurance policies. continues to grow, as pressures on travel insurance policies sold with a pension funds increase. This could holiday, by a travel agent. The whys Where do we go from here? result in pensioners becoming less and wherefores of the decision to There are a lot of questions about the future of affluent, and less able to afford exempt such sales from the FSA travel and travel insurance in the UK, but not so frequent or extended trips overseas. regulation have been debated many answers. Will UK residents continue to travel As the British have travelled more, so elsewhere, and there’s no need to in the same way as they have in the past? The world we have also ventured further afield, repeat the arguments here. However, has changed over the last couple of years, and many with new destinations increasing in many in the industry see this as UK residents perceive it to be a more dangerous popularity over the years. Back in creating a two tier approach to place. Patterns have shifted, and while people still 1981, of the 19 million trips taken regulation, which will in the end be want to travel, they seem to be staying closer to outside the UK, only 3 million or 16 detrimental to the purpose of the home. Trips to Europe have increased steadily over per cent were to destinations outside IMD: the protection of the consumer. the last five years, although the rate of growth had Europe. By 2001, 10.7 million trips We have all seen cases where slowed from 10 per cent a year in the mid-90s to had destinations outside Europe, insufficient information as to the cover five per cent a year more recently. Even in 2001, we representing 18.4 per cent of all trips provided by the policy has been given still saw year on year growth of four per cent. taken, and this in a year when the last at the point of sale. It remains to be In contrast, the number trips outside Europe were four months saw dramatic changes in seen whether travel agents can prove growing at a much faster rate of 10 per cent to 15 travel patterns. In 2000, over 11 they can give the necessary guidance per cent in the mid-90s, but this all changed in million trips had been taken outside and information to their customers at 2001. Trips to the US fell by eight per cent that Europe, representing 19.4 per cent the time the travel insurance policy is year, and trips to other destinations outside Europe of all trips. purchased. stalled at the 2000 level. This is a trend that we can Inevitably, the number of trips abroad probably look forward to in the future: continued taken by UK residents was impacted The underwriters steady growth in trips to Europe, but a slower rate by the tragic events of 11 September The travel insurance market has of increase in trips to destinations further afield. 2001. What’s interesting is that, in spite of that awful are finally in. become increasingly consolidated in recent years, With more people travelling more than once a year, day, the number of journeys taken in 2001 was still with some players leaving the market, and others but many of them choosing to stay closer to home, up on 2000, by 1.5 million. How many more visits Where we buy our policies joining. The picture is constantly changing as we can expect sales of annual policies and those abroad would have been taken if 9/11 hadn’t Who has sold all these travel insurance policies to accounts move, but at the start of 2003 the largest taken ‘free’ with bank accounts and credit cards to happened? It won’t come as any surprise that the customers? In the early days, nearly everyone in the players in the UK market were AXA and GEFI, both keep growing, while sales of single trip policies may main destination affected by the events of that day UK bought their travel insurance at the same time of whom were estimated to underwrite about 20 stabilise or even diminish. And just to make things was the US. Trips there dropped by 400,000 as their holiday. Travel agents dominated the per cent of the market. more interesting, the ‘grey’ market, which has between 2000 and 2001, and fell again in 2002. market, with single trip policies accounting for Several insurers fall into the next layer, all of which fuelled a lot of the growth in travel in recent years, We obviously don’t have statistics for 2003 as yet, almost all of the travel insurance policies sold. underwrite between 5 per cent and 10 per cent of may move into decline, as fewer people can afford but from reading the travel trade press, it would Over the last five years, this picture has changed the total premium income. These include White to retire early, and older people’s disposable seem that total trips numbers could well have dramatically. As more people take more than one Horse (the MyTravel captive), Europe Assistance, incomes reduce in value. stalled this year. Many agents and operators have trip abroad each year, sales of annual travel policies AIG, Norwich Union, Churchill, Mondial and In summary, we live in an uncertain world. So reported reduced bookings, and we have all seen a have grown rapidly. Many of these policies are FirstAssist (which was Royal & SunAlliance), as well what’s new? glut of late, cheap holidays available even at the purchased through alternative distribution channels, as Lloyd’s of London. Between them, these insurers height of the season. So what happened? such as direct insurers, banks, and more recently, underwrite close to 90 per cent of all travel In 2003 we saw an unusual combination of events, high street retailers and Internet providers. This although to be honest, every year since 2001 trend was accelerated by a change in the law in seems to have been unusual, making the travel 1998, which made it illegal for travel agents and underwriter’s job that much more challenging! In tour operators to make the offer of discounts on 2003, we saw a very slow start to the year, with the holidays conditional on purchasing travel insurance threat of war in the Gulf hanging over us, the from them. Many people in the UK also now have increased awareness of the potential risk of bank accounts or credit cards for which they pay an terrorism as a result, and just to make life more annual fee, and which provide them with ‘free’ interesting, the rise of the SARS virus. Perhaps not travel insurance as a benefit. surprisingly, many British families decided to The result of this diversification has been to reduce postpone their decision on booking a summer the proportion of policies sold through travel agents holiday, and sales of both trips and travel insurance significantly. In 2002, for the first time, less than 50 policies were sluggish as a result. per cent of travel insurance sales were from travel Just when we might have expected sales to start agents. But this pendulum may be set to swing back picking up, an extraordinary event happened in the in the opposite direction. UK, something unparalleled in recent years. The A new wave of regulation of all general insurance sun shone. sales is sweeping through the UK as government And it kept on shining. This summer, many British seeks to implement the EU Insurance Mediation families decided to stay at home and enjoy the Directive (IMD), through the offices of the Financial almost unprecedented sunshine, which has Services Authority (FSA). The sale of all general impacted sales across the board. It will be insurance products will in future be regulated by the interesting to see how much of an impact the FSA, in accordance with the standards laid down in sunshine has had when all the numbers for 2003 the IMD, with only a couple of exceptions.

www.itij.co.uk International Travel Insurance Journal 28 WORLDMARKETS

interesting statistics regarding the risks Lloyd’s In today’s marketplace, the major, multi-million willingness to accept and assume risk in areas that The London market underwrites: pound programmes are generally written to a others fear are not only unique in travel, but the margin of profit that Lloyd’s underwriters do not whole market. and Lloyd’s • 12 per cent global marine market find attractive. So how do they maintain such a • 29 per cent global aviation market (including 67 significant presence? Some examples of insurance cover: The market at Lloyd’s of London is unique airlines) • Firstly, there are historical and long-term • War and terrorism exposures amongst the world’s insurers and David Stirling of • 52 per cent of the London market’s gross income relationships that have been built up over many • In-flight and common carrier accumulations Crispin Speers & Partners gives us a little insight • 6th largest reinsurer worldwide years, and continuity and understanding does still • Credit card and financial institutions into what it is and its involvement in Travel • US business virtually doubled 1998–2002 remain an important factor. • Evacuation and repatriation reimbursement Insurance. • Secondly, Lloyd’s underwriters both singularly and • Expeditions and explorers Travel insurance collectively enjoy first class security ratings and • World record attempts Lloyd’s of London evokes all sorts of messages and But, what does all this have to do with travel have the added advantage of a chain of security. • Sports teams is one of the best known names or brands in the insurance? Well, travel insurance and reinsurance is • Thirdly, the imagination, innovation and • Kidnap, ransom and extortion world today. This article sets out the historic written into essentially the following portfolios of position of Lloyd’s, bringing it up to date and picks business: out some of the more niche and specialist areas • Accident & health which compliment the rank and file travel insurance • Personal accident policies. • Casualty Having started out trading from a coffee house in • Non-marine the City of London in 1688, some 315 years later • Treaty reinsurance the original marine policies for ships and their cargo have been moved on at a pace. I wonder if this Within each of these portfolios, there exist separate would be possible in Starbucks today? or overlapping areas depending upon the In today’s market there is currently a capacity to description given by the market in question. There underwrite and accept in excess of are no identifiable codes that I can reliably use to £14,000,000,000 in premium. While the onus of identify the incomes for travel insurance or capacity has shifted from individual names to reinsurance, so my comments are based upon my corporate capital, much of the strengths have been personal experiences and market knowledge. kept, such as the ability to communicate face to Some of the earliest travel insurance policies were face. Indeed, the 1986 building designed by Sir underwritten at Lloyd’s covering aviators and travel Richard Rodgers provides for all the functionality pioneers. Going back into the history books, you can that a modern marketplace needs, in spite of its find policies for the Titanic, for example, but in truth completion 17 years ago. (I wonder if it will one day these were not travel insurance as we know them become the new Concorde!) today. Current style travel insurance policies were Many of you will have had the chance to visit the developed in the late 1960s around the time that building during your business career and for those of the early assistance companies came into being, such you that have not, may I heartily recommend it. You as Europ Assistance and GESA. The policies were will discover that the market retains many traditions combinations and packages of products bundled yet reaches out to the future through over 70 Lloyd’s together either as a package at a discount or as a syndicates accessed by over 150 Lloyd’s brokers. self-selection process – an area that has sadly fallen In researching this article, I discovered a number of away in favour of the comprehensive package.

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

The Lloyd’s market encourages those initiatives The war and terrorism cover offered is plentiful and where profitable business can be traded in a secure varied, of course subject to the necessary environment and it follows that support and underwriting information. Just because the risk underwriting capacity is there when it is needed. maybe dangerous does not necessarily mean that it In concluding, it is important to emphasise the role is uninsurable. Indeed, the market is currently that Lloyd’s plays in reinsurance. offering solutions for many of the aid workers in There is a misconception that reinsurance is a distressed territories, along with the insurance for difficult or mysterious product to handle. This is those re-building war-torn countries. emphatically not the case and indeed we treat our The issues with in-flight, common carrier and credit facultative reinsurance in the same way that we card risks are often the concern about the values would any other insurance risks. It simply means given and the management of the overall that the business is underwritten locally, rated at accumulation. With more and more travel, coupled Lloyd’s and then ceded to them as reinsurance, with the use of payment by credit cards, eventually typically on a 90 per cent quota share basis. Any risk we are going to have to face a multiple life loss, like can be traded this way. the Tenerife air disaster, involving two Boeing 747 For whole portfolios of business, this is then termed _NEED MEDICAL ASSISTANCE, HOSPITAL ADMISSIONS jets colliding on the runway with the loss of over ‘Treaty’ and markets will look at all combinations of & MANAGEMENT IN SOUTH AFRICA?_ 500 lives. coverage and design the programme around the In today’s market, the typical sums insured are client’s specific requirements. Indeed, at the ITIC between £100,000 and £500,000 (insurers are conference, there was a reinsurance forum which resisting higher coverages). Even at the minimum was held to discuss just these issues, not only for Should you require assistance with emergency £100,000, this would equal the entire premium for Lloyd’s but the whole market. travel insurance in the UK of £500,000,000! So what do you need to do if you want to send a medical air evacuation to hospital in South The advent of the assistance companies offering risk to Lloyd’s underwriters for consideration? Africa this can be arranged to your both their services on an insured and uninsured 1. Find a suitable Lloyd’s broker who is well versed basis has led to many differing products and in the services and expertise that you are looking requirements. We cover the financial programmes bespoked for that audience. for. obligations for your members. We include in The one-off record attempt or expedition risks are Further information about brokers and markets can extremely difficult to evaluate in terms of risk and be found at www.lloyds.com. the service a 24hr on call facility, full patient exposure. The very nature of the client is that they 2. Collate all the information and ensure that it is all push to the limits to achieve their given goals and shared with your chosen broker. and family care, both individual and medical sometimes it is fair to say that they will be exposing 3. Where at all possible visit your broker, your management. themselves to needless perils! underwriters and the market as a whole. One ‘crazy’ example was the man who wanted to row across the Atlantic in a bath-tub. He had no real experience, backing or organisation, but The UK assistance We have a wealth of experience in this field tremendous passion and a real belief that he could and trust that this will be beneficial to both do it! industry Typically sports teams are insured for career ending the insurer and patient. injuries, but what about when they travel together The assistance industry is there to pick up the for away games or tournaments like the Rugby pieces when the traveller gets him- or herself into World Cup where many of the players are insured trouble. Tim Ablett, chief executive of FirstAssist, at Lloyd’s? reviews the origins and development of the UK It was Tony Cassidy and Bill Davis of Cassidy Davis assistance market. We can facilitate the Syndicate at Lloyd’s who were credited with the following: development of the kidnap and ransom policies. To the purist customer, I imagine that insurance These were and still continue to be sold to both conjures up images of being there to help when • Admission to most groups as well as individuals, not just for the disaster strikes. Sadly, over the years, and with hospitals in South insurance, but also for their linkage to specialty growing financial constraints, that rosy image of the assistance and management response companies average general insurer in the UK often is not reality Africa like Control Risks Group. and is not the helpful, needed and sought after • Issuing cost While Lloyd’s does not own the rights to these service the policyholder (in such circumstances products exclusively – indeed others underwrite the already magically relabelled ‘the claimant’) expects estimates risks too – their origins and development have to receive. This jaundiced image of our great • Audit and cost invariably been at Lloyd’s and will continue to be industry – where the public think we hide behind underwritten there. small print, readily accepting premiums but too containment often seeming to find ways of wriggling out of paying • Translation services What else has Lloyd’s got to claims - is sadly one which leaves our reputation offer? marginally higher that second hand car dealers. Even • Case managed Lloyd’s is licensed to transact direct if this is only perception in the eyes of policyholders admissions business in over 60 territories and, and not reality - we cannot ignore perceptions when you include reinsurance, when they harm our reputation. • Medical updates does so in over 120. The market and reports daily enjoys a fantastic ability to transfer Important adjuncts this into business opportunities, a Continental Europe, and in particular the mutual fact that has not been ignored by insurers, both recognised and tackled this problem the market’s ‘corporate’ capital in the early 1970s and 1980s with the creation of providers, many of whom are their own assistance operations. They became insurance professionals themselves. important adjuncts to their core insurance For instance, our company agreed businesses and they became key factors in the we are here for your peace of mind to work in partnership with Global delivery of help and service whenever one of their Insurance Solutions (Collinson ‘members’ had a disaster – either when travelling, at Group) nearly 5 years ago to home or when holidaying. Most of the Continental develop a web-based trading assistance companies were born to take over the platform for travel insurance. Today delivery of a solution rather than the too often 4th Floor Allcare House, 90 Grayston Drive, Sandton this international programme is event of having an argument over the indemnity Johannesburg, SOUTH AFRICA distributed through many key value of a claim. partners in six currencies, two These companies were often subsidiaries of the Contact: (24hrs) +27 82 323 7553 (o/h) +27 11 290 6330 languages, and 38 countries. It is mutual insurers and provided valuable and quite fax: +27 11 290 6329 email: [email protected] expanding to encompass agency different non-insurance skills into the indemnity and third-party business and an proposition, such as medical and language skills. All web ad: www.aims.org.za example can be viewed at: the time the intention was twofold – improved www.travelinsurancewebsite.com customer service to the member / policyholder; to

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

put them in the same position they were in prior to proposals, relying heavily on the use of their paramount. Insurers saw these moves as an ideal is a much harder than other areas of assistance such the disaster / accident and secondly to improve the assistance companies to deliver these solutions. As way of improving that elusive customer service as travel / medical and motor assistance, which cost effectiveness of the claim and its handling. already discussed, medical/travel assistance had sought by the financial services industry. largely require a single network, however extensive In the UK, with less of a history of mutual general been the bedrock of the past with strong network Home assistance was developed very much later that may have to be. Rarely can home assistance be insurers and more a structure of composite links either to their own representatives in overseas and did not really become prominent in the UK delivered via such a single network. More likely a insurers, assistance companies took longer to take countries or more likely with local agents liaising until after the hurricane which hit the south of series of networks are required, involving roofers, off. Perhaps it was also the Brit’s reluctance to travel with the UK operations centre. plumbers, electricians, glaziers etc. Many of these abroad that slowed the need for assistance A special skill of the medical assistance are small local businesses unprepared to travel out operations. The first UK assistance operations were companies rests very much with the medical of their region – compare this to the motor unsurprisingly ‘continental imports’ – GESA team at the heart of the operation’s centre. recovery agents who travel literally miles to recover Assistance, Europ Assistance and Mondial Assistance Not only is the highest standard of medical a vehicle. Thus, the networks are large, fragmented to name but three. However two of the oldest competence required but also excellent and very difficult to manage and to guarantee assistance companies born in the UK should not be linguistic and communication skills are essential consistency and quality of service. forgotten – the AA and the RAC, both of which as we travel to more and more remote areas As if to demonstrate these difficulties, some of the were born to look after the needs of motorists and of the globe. The ability to communicate with traditional companies have entered these markets both of which at different times have ventured into the treating doctor, to take the right decision and exited – for example AA Home Service and other aspects of assistance, although not entirely for the patient and the most cost effective for Green Flag Home Service. Arguably, this end of the successfully. the insurer, is often a judgement that has to be assistance market is still not well served and So as the 1970s and 1980s progressed and the made by the team back in the operations opportunities exist to provide a full planned British obsession with foreign travel grew, there centre of the assistance company. Making the property maintenance service for the time poor, came the overwhelming need for travel and medical wrong decision (for example; should treatment money rich society that has emerged over the last assistance to all travellers leaving the UK shores for continue in the holiday resort? Can the patient 20 years. their two weeks in sunnier climes. travel? Does the condition demand the use of Coupled with the plethora of 24-hour telephone With the growth in travel and the subsequent an air ambulance?) can have serious effects on assistance services offered as add-ons to core growth in travel insurers, there came an inexorable both the health of the injured party and the insurance products – such as legal and financial rise in travel and medical assistance companies. claims ratio of the insurance company! advice and medical help lines including advice and Experience moved across the Channel from, in Moving from medical treatment and travel counselling – the future certainly looks bright for the particular, France, and slowly a new breed of Anglo assistance to motor assistance in the UK was assistance business world. Saxon assistance companies started to emerge - not a dramatic or difficult change for the UK Finally, we should not forget the area of largest Cega, International Assistance Services (now part of operators, particularly as there were already growth that we have seen in the assistance industry FirstAssist) and SOS, for example. the established players – AA and RAC. In some over the last few years – the launch and operation senses looking after a broken down vehicle is a of NHS Direct in the UK. This operation now Increasing the scope great deal simpler logistically compared to services 6.3 million calls a year, providing help and Although most of these operations began life as looking after an injured person. The same comfort to millions of patients requiring help. medical assistance companies, it soon became principles apply: a reliable network able to Clearly, as the pressures of living increase and life evident that there was scope for the expansion of triage vehicles broken down on the highway, along England in 1987, when thousands of customers lost becomes more complex, our demand for help 24 24/7 services, involving the same principles of with a full recovery service for vehicle and trees, fences and roofs, and suffered serious hours a day, 365 days a year, appears insatiable. helping people in distress, to other lines of domestic passengers back to the garage for those vehicles damage to their homes. They were desperate for The UK assistance industry will undoubtedly general insurance – e.g. motor and home irreparable at the roadside. Once again, the tradesmen to repair their homes and despite the respond and is set for growth and an expansion of insurance. General insurers saw the need and the importance of looking after the customer dominates best efforts of their insurers many were left for the services it provides. opportunity to move their indemnity driven and putting the customer (claimant) back into the weeks without those vital repairs being carried out. propositions into service driven solution-based same position he was in prior to the incident is Logistically, delivering a full home assistance service,

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

How are foreign visitors to HIV/AIDS where it is only the first diagnosis and making the situation worse. obtain free treatment connected counselling sessions that are charge There are many examples of such abuses that give • Business travellers to the UK and their the UK treated? free) an appreciation of the costs involved. There are dependants who receive free treatment if they fall 3. Compulsory psychiatric treatment. numerous cases of pregnant women who come to ill or are injured on a trip to the UK But what about the foreign visitors the UK for an extended holiday just Other proposals include changes to the rules on when they come a-cropper in the UK? to give birth here. Such cases can charging for treatment of UK citizens who have Dr Simon Brownleader from Healix cost somewhere between £1,500 been working abroad for more than five years. International looks at how the UK and £4,000 depending on length of There are also new charge exemptions for health market supports patients from stay and if complications requiring pensioners who share their time between this overseas more intervention arise during country and another EEA country, and foreign delivery. One particular patient from students resident in this country. The UK National Health Service (NHS) Nigeria on a six-month visitor visa It is difficult to ascertain whether foreign visitors are was created in 1948 to overcome the needed treatment costing over mainly treated in NHS hospitals or private hospitals, inequalities in healthcare that existed in £53,000. This had to be written off as there are no centrally maintained statistics. the UK prior to its inception. The quality by the hospital trust. Where patients end up generally depends on the of health care provided within the NHS nature of their medical problem. If a person needs is of a high standard and is comparable New proposals emergency hospital treatment they would always to other health care systems in the It is accepted that these abuses end up in an NHS Accident & Emergency (A&E) developed world. The cost of providing occur, but there is little information department, as there are no private A&E this service is also comparable with gathered centrally to get a feel for departments in the UK. A&E treatment is free in the other EU countries. The World Health the actual number of cases involved UK, but if a patient is admitted onto a ward they Organisation's health league table scores for the whole of the NHS, let alone would be charged for their stay. There are patients the NHS at 24th out of 191 countries the financial burden it imposes. who mislead the hospital by giving false addresses surveyed. This table looks at overall However, it is recognised that the and names so that they can avoid payment and health efficiency: how much health care use of the NHS by visitors from abuse the system, a practice called 'health tourism'. systems cost, morbidity, mortality abroad puts demands on the service The scale of this abuse is unknown. statistics and other outcomes. It is not a that it was never intended to carry. Some NHS hospitals have private patient wings, so consumer guide to technical excellence Currently, new proposals are being foreign visitors could be transferred to these if the in acute healthcare. put together to try and close the patient has private medical insurance cover and a loopholes, and to clarify who is consultant is available. Health tourism entitled to free treatment and who There is a steady stream of patients from around In its ethos is enshrined the principle that has to pay. the world who come to the UK for private the NHS is there to provide a free, at- Some of the abuses that these healthcare, but these are usually pre-planned events the-point-of-use service for people who proposed rule changes are aimed at and patients would invariably end up in private live in the United Kingdom. However, stopping include: hospitals. Private general practitioner services may recent media stories have described how the NHS • Failed asylum seekers and others with no legal refer patients to the private sector but again this is open to widespread abuse by foreigners and right to be in the country who seek treatment would depend on the nature of the problem. If a tourists from overseas, and the term 'health tourism' Financial obligation free of charge medical problem is acute, the patient would be best has been coined. NHS Hospital Trusts involved in treating such • Dependants of someone who is exempt from served by an NHS hospital. Before looking at this type of abuse further it is patients get no funding or reimbursement for the charges who visits the country briefly just to worth examining who qualifies for treatment within cost of treating overseas patients, so there is both a the NHS, and for what type of treatment they legal and a financial obligation on the hospital trust qualify. to identify patients not entitled to free care and to Overseas visitors from the European Economic charge them accordingly. Area (EEA) are entitled to full, free care within the Figures from one North London hospital have NHS. There are also reciprocal health care shown almost a 300 per cent increase in the agreements in place with other countries outside number of overseas patients in the last three years, the EEA, with countries as diverse as Russia, New from 200 in the year 2000 to 583 in 2002, with a Zealand, Australia, the Caribbean islands and several decrease in the amount of money received to cover former Soviet block countries. hospital costs currently running at 40 per cent. The Certain treatments are exempt from charges implications are clear: hospital trusts end up writing irrespective of where you come from. These tend off the costs as it becomes impossible to claim any to be for conditions that if not treated may have a of the money back from patients, especially if they wider impact on public health and these include: are poor and from developing countries. 1. Any treatment given in an accident and These patients tie up resources that would normally emergency department, but ward admission is be used for the local population and consequently chargeable. waiting lists will increase. More worryingly, if 2. Treatment for communicable diseases (excluding unchecked, more overseas patients will arrive

www.itij.co.uk International Travel Insurance Journal 32 DICK’SHOTLINE

Studying for a record Message from the editor It is all too easy for students abroad to come back Christmas festivities leave most of us feeling because people always manage to find with rather more than a qualification. Dick Atkins, horribly drained and only too glad to wipe opportunities where they exist – the K&R the slate clean and start a brand new year. insurance industry is growing at a Philadelphia US lawyer and specialist in travel New year, new prospects, new beginnings, correspondingly healthy rate, and we look at insurance-related legal matters, sounds a note of new fortunes… With this in mind, I am the details and the prospects in this issue. sending you all my best wishes for a Last but not least and most excitingly for us, caution prosperous and happy this issue is also one in 2004. accompanied by the first But back to work: in this edition of our International issue, we have the sixth Healthcare Journal We recently described a case part in our series on supplement. We hope that of post-arrest interrogation healthcare all over the this will become bigger and and incarceration in Japan. world, focusing on the better as time goes on, and Almost immediately after debate between public that it will eventually be an writing that column, we and private. In this issue, independent journal in its received a hotline call from we look at the debate own right, aimed at distraught parents of a 20- from the perspective of everyone who works in the year-old college study- what is happening in healthcare industry. Tell us abroad student enrolled in a Latin America, where the what you think of it and Japanese university. His host insurance companies we’ll be sure to bear in mother had found a have the reputation, mind what you say when miniscule amount of when things go wrong, of being quick to we put our thinking caps on. marijuana in his dresser repatriate their insureds, regardless of the As always, there is plenty to mull over and drawer and reported it to medical condition involved. We look at the read, plus all the usual mix of news and the university. A call to the truth of this and the whys and wherefores. views. In the meantime, happy reading, local police by the university Those of you who were lucky enough to happy travelling and look after yourselves – resulted in the young man turning himself in to the accidents and other non-criminal activities, and come to ITIC in Rome will no doubt you can never be sure what’s around the police. He was charged and incarcerated without therefore the majority of their legal problems are of remember Dr Sean Keogh’s fascinating talk corner. bail. a civil nature. In common with other travellers, they on kidnap and ransom. These days, this is Ten hectic days of frequent legal calls, critical input are cited for a variety of vehicle operation offences. an astonishingly highly profitable business, by the study abroad programme and the In the US, each state has its own rules and with some 15,000 incidents a year announcement of a congressional investigation regulations concerning driver’s licence requirements. worldwide and a market value well in excess resulted in the young man’s release, the dropping of Since 11 September, some states have become of $500 million a year. Not surprisingly – the case, and his safe return to the US. This is a rare much stricter in requiring visiting foreign nationals occurrence, with the official explanation citing the to obtain local operator’s licences. Fortunately, student’s unblemished background, his self- students are typically permitted to drive with their surrender, prompt confession and acceptance of home country licence plus an International Driver’s responsibility. Permit (IDP). Other categories of foreign visitors are The initial distress call came in through the required to obtain a local state licence. The CLAIM AND assistance company, a vital component of a study situations constitute a confusing administrative Smile abroad programme, as well as of any foreign hassle. COUNTERCLAIM country work-study or travel programme. In this We frequently receive calls from students, au pairs, case, no local lawyer had yet been appointed or and other J1 visitors in the US who receive citations retained. Our primary initial task in foreign arrest for ‘driving without a licence’. In many of these corner Our thanks go to cases is to locate an appropriate lawyer, one who incidents, even the police are unfamiliar with the Walter van Tiel, hopefully will be able to communicate in the same complicated licence rules, and time and effort is Our thanks go to Bruce Unger, language as the defendant. necessary to clarify the situation. former clinical director and chief marketing manager at In Japan, outside of Tokyo, obtaining a Japanese Probably the most frequent encounter with the legal flight nurse at Air Ambulance lawyer with such language skills can be most system for foreign visitors in the US is Traffic Court. Europeesche difficult. Being incarcerated in a far-away foreign For visitors from the UK and some Commonwealth Professionals, for the following. Verzekeringen, for the prison is difficult enough, but not being able to countries, unfamiliarity with driving on the right communicate effectively with one’s lawyer is a side of the road is enough to cause a potential For all of you out there who've had to deal with following rather sad significant added problem. In the student’s case, we traffic violation (or accident, or both). Even though an irate customer, this one is for you. An award should go to the United Airlines gate agent in little story. used University of Pennsylvania graduate law many visitors do drive on the same side of the road Denver for being smart and funny, while making students from Japan to do the translation and as US residents, it is still easy to get confused by her point, when confronted with a passenger interpretation that we needed. congested road conditions, unfamiliar signs, and who probably deserved to fly as cargo. His client went skiing and claimed In another study-abroad case in Spain, a male traffic laws and rules, which differ from state to A crowded United Airlines flight was cancelled. A on his return for an injury that he student was charged with the equivalent of date state and locally. single agent was rebooking a long line of inconvenienced travellers. Suddenly an angry had sustained to his foot. Not rape. The only legal issue was whether the sex was Many moving violations listed in the various Motor passenger pushed his way to the desk. He slapped surprising, you may think – a lot of consensual. In that case, it was essential to obtain a Vehicle Codes, including DUI (drunk driving) cases, his ticket on the counter and said, ‘I HAVE to be top quality Spanish lawyer, which we did within 24 carry penalties that constitute a criminal violation. on this flight and it has to be FIRST CLASS.’ people hurt themselves when hours. Obtaining the release of the student from jail In the post-11 September era of vigilance in regard The agent replied, ‘I am sorry, sir. I'll be happy skiing. But no, that was not the on to a bail status certainly helped permit an to granting of visas and entry into the US, even a to try to help you, but I’ve got to help these folks first, and I'm sure we'll be able to work problem; his claim for the doctor’s effective preparation of the defence. Being able to minor criminal infraction may bar a student or any something out.’ bill was not caused by an injury promptly retain a distinguished criminal practitioner other visitor from future visits to the US. The passenger was unimpressed. He asked was vital to the successful outcome of this case. Some visitors to the US unwittingly plead guilty to loudly, so that the passengers behind him could while skiing but because he had Criminal cases of other study-abroad students are traffic infractions, which has the potential of hear, ‘DO YOU HAVE ANY IDEA WHO I AM?’ dropped his too heavy suitcase on typically less onerous. One incident involved two creating serious problems at a later time. Many Without hesitating, the agent smiled and grabbed her public address microphone, ‘May I have your his foot when he slipped on the American students in Grenoble, France, who ignored lawyers are not cognisant of the collateral attention please,’ She began, her voice heard iced stairway of the hotel. the posted warning signs and snowboarded down a consequences of seemingly insignificant traffic clearly throughout the terminal. ‘We have a ski-slope, causing an avalanche. Fortunately, no one infractions. Competent legal advice is a necessity. passenger here at Gate 14 WHO DOES NOT Ouch… was injured; but they were both arrested and Travellers should be forewarned and alerted to the KNOW WHO HE IS. If anyone can help him find charged with ‘risking a catastrophe’. The well- availability of legal consultation and referral his identity, please come to Gate 14.’ With the folks behind him in line laughing Please keep your stories coming – we’ve known lawyer in Paris whom we recommended was services, and this legal service should be quickly hysterically, the man glared at the United agent, pretty well run out of these now and we vital to the successful conclusion of that case. accessible. gritted his teeth and swore ‘Screw you!’ need your help. So genuine ones, please, Students are frequently involved in automobile Without flinching, she smiled and said, ‘I'm sorry, sir, but you'll have to get in line for that too.’ and the more bizarre the better.

International Travel Insurance Journal www.itij.co.uk

34 REGULARS

Terrorist warnings various militant cells; as such, the group remains A review of published terrorist warnings and a threat to travellers. indicators for Turkey over the past six months shows • 19 April: The Turkish Security General Directorate that international intelligence organizations were issued two alerts to provincial police warning of not far off in their assessments of the threat in the potential terrorist attacks. The first alert said that country: approximately 35 specially trained terrorists, • 17 October: In a warden message, the US possibly belonging to al-Qaida or the Kurdistan Embassy in Ankara warned that US citizens and Workers' Party (PKK or KADEK), had infiltrated interests in Turkey could be targeted in terrorist Turkey via northern Iraq. The second alert warned attacks. The embassy warns of a heightened that al-Qaida could conduct a terrorist operation threat during Ramadan (when the November in the coming days. Potential targets cited by Turkey a sitting duck? attacks occurred) and other holidays, including officials include major financial centres, airports, Hanukkah (December 19–27), Christmas and New humanitarian aid establishments and logistics The 15 November attacks on two synagogues Turkish gendarmerie units conducted raids on the Year. depots. Additional possible targets are in Istanbul, Turkey and 20 November attacks residences of suspected members of the Turkish • 4 October: Intelligence indicated the threat of government institutions or Australian, British, on British targets in that city suggest a Hizballah terrorist organisation in the cities of terrorist attacks by the Kurdistan Workers' Party Israeli, Spanish and US interests. discouraging answer to the problems in that Diyarbakir, Batman and Mardin in the days (PKK-KADEK) in northern Iraq, southeastern Turkey part of the world. Our contact at iJET Travel following November attacks. and in major Turkish cities – including Istanbul High risk Risk Management considers the situation Given Turkey's significant tourism revenue and the and Ankara - may rise in the coming months as Factors that put Turkey at high risk for terrorist country's aspirations for joining the European Turkey and the U.S escalate efforts to disband the attacks include the infrastructure of domestic There is a persistent question that needs to be Union, the perception of a stable security terrorist organisation. Recent reports indicate that extremist organizations in the country. At least 17 answered. Is Turkey a relatively secure country environment is a top priority for the Turkish elements of PKK-KADEK decided to disband the terrorist groups have operated since the 1980s. This despite its proximity to the most volatile region in government. Security and intelligence officials from group in favour of a more politically driven infrastructure helps terrorists who hope to plan and the world? Or is it a sitting duck for the legions of Israel, the UK and the US are collaborating with organisation based in northern Iraq. Turkish carry out an attack. Surveillance, procurement of terrorist groups operating within its borders and in Turkey in investigating the attacks. explosive materials, recruiting of operatives and nearby countries? Although investigators believe that they may other pre-attack logistics are much easier with a The ultimate answer may not be apparent for some have established links to al-Qaida, no final network of experienced, in-country accomplices. time, but the short-term verdict is gloomy. The risk determination has been made. But the Also contributing to the high risk for terrorist of terrorist attacks in Turkey is high and is likely to sophisticated nature, targets chosen and attacks is the fact that many domestic extremist remain so over the next three months. It is unclear if quality of explosives suggest some degree of groups in Turkey share common interests with al- the Turkish security apparatus can defend the al-Qaida involvement. Turkish officials have Qaida. (These interests include establishment of a country against further attacks in the short-term. stated that the suspects in the attacks were Muslim theocracy in Turkey, and anti-Jewish and The November attacks killed at least 50 people and likely aided by an international terrorist anti-Israeli sentiments.) This increases the chances wounded more than 700. organisation. of these groups collaborating with al-Qaida to However, Turkey does have one of the more Turkish police also believe that members of the conduct attacks. Although al-Qaida collaboration in professional and efficient police forces in the world. Turkish Hizballah, a 20-year-old terrorist group the November attacks is still unproven, Al-Qaeda's Over the medium term, the police – along with that police had largely dismantled in 2000, may have officials immediately rejected the announcement financing and operational expertise can greatly Turkish intelligence and military forces – are likely regrouped and planned the attacks. Authorities had as an attempt by the group to avoid prosecution enhance the efficacy of terrorist attacks relative to to crack down hard on domestic extremist groups. blamed the group for a 1992 bombing of one of the for past crimes. It is still too early to assess attacks launched by domestic terrorist cells Security forces have already taken steps to do so. two synagogues that were targeted on 15 November. whether the group will disband or split into operating alone.

24 Hour Aeromedical Travel Service Diary dates

6 January 2004 28-29 January 2004 Chartered Insurance Institute Stepping Ahrad Successfully Managing Terrorism Insurance Risk Roadshow, Birmingham, UK Post 9/11 www.cii.co.uk/events/eventscalendar/ New York, USA [email protected] 14 January 2004 Aon presents ‘Employers’ Liability Seminar’, 29 Janaury 2004 Murrayfield Stadium, Edinburgh, Scotland Lloyd's 12 Months on Reformed Resurgence www.aon.com Vinter's Hall, London, UK www.ibc-financial.com/lloyds 15 January 2004 Chartered Insurance Institute Stepping Ahrad 9-11 Febuary 2004 Roadshow, Liverpool, UK Insuring Export Credit and Political Risk www.cii.co.uk/events/eventscalendar/ Café Royal, 14th Annual Global Convention London, UK 18-20 January 2004 The Insurance Summit 10 February 2004 The Ritz Carlton, Marcus Evans, Amelia Island, Fourth Rountable on Healthcare Reform in Japan Florida, USA Hotel Okura, Tokyo, Japan www.theinsurancesummit.com 17-20 February 2004 22 January 2004 World Insurance Forum Chartered Insurance Institute Stepping Ahrad Bermuda Roadshow, Belfast ,UK www.worldinsuranceforum.bm www.cii.co.uk/events/eventscalendar/ 25-26 February 2004 22 January 2004 PMRA 2004 Ninth Annual Insurance Leader of the Year The Brewery Conference and Exhibition Awards Dinner London, UK The New York Marriot Marquis, New York, US [email protected] 26-27 February 2004 Bringing down the cost Insurance Outsourcing Forum 22-23 January 2004 Wyndham Westshore Hotel, Tampa, Florida, US 12th Annual National Health Benefits of repatriation Conference 26-27 February 2004 Wyndham Westshore Hotel, Tampa, Florida. US Insurance Outsourcing Forum: Strategies for Success Wyndham Westshore Hotel, Tampa, Florida, US Contact: Marc Lucas, Voyageur AeroMedical Travel, Voyageur Buildings, 27 January 2004 www.tfconferences.com FSA Authorisation Workshop 43 Colston Street, Bristol BS1 5AX Tel: +44 117 921 0401 Norwich, UK Fax:+44 117 925 5940 Email: [email protected]

International Travel Insurance Journal www.itij.co.uk To make an alteration to an existing listing email: [email protected] SERVICEDIRECTORY 35

AIR AMBULANCE

Aerojet 4631 NW 31st Ave #220 Tel: +1 954 730 9300 [email protected] Stuart Hayman Ft Lauderdale Fax: +1 954 485 6564 www.aero-jet.com President FL 33309 00907 Jacabo Bercovici USA Vice-President

Aeromed 365 Ltd Gainsborough House Tel: +44 1293 582 500 [email protected] Alida Benton High Street Fax: +44 1293 582 501 www.aeromed365.com Managing Director Crawley RH10 1BW UK

Aeromedevac Inc 4420 Rainer Ave. Suite 202 Tel: +1 800 462 0911 [email protected] Raul Mendoza San Diego Fax: +1 619 284 7918 www.aeromedevac.com Vice President CA 92120 USA

Air Ambulance Network 905 Martin Luther King Jr. Drive Tel: +1 800 327 1966 [email protected] Mark Jones Suite 330 Fax: +1 727 937 0276 Vice President Tarpon Springs Florida 34689 USA

Air Ambulance Professionals, Inc. Ft. Lauderdale Executive Airport Tel: +1 954 491 0555 [email protected] Brian L. Weisz 1535 South Perimeter Rd Fax: +1 954 491 6114 www.airambulanceprof.com President Hangar 36B Ft. Lauderdale Florida 33309 USA

Air Ambulance Specialists, Inc. 8001 S. Interport Blvd. Toll Free: +1 800 424 7060 [email protected] Donald Jones Suite 250 Tel: +1 720 875 9182 www.airaasi.com President Englewood Fax: +1 720 875 9183 CO 80111 USA

Air Trek Air Ambulance 28000 A-5 Airport Road Toll Free: +1 800 6335387 [email protected] David Bump Punta Gorda Tel: +1 941 6397855 www.medjets.com Vice President FL 33982 USA

AMREF Flying Doctor Service Wilson Airport Tel: +254 20 600 552 [email protected] Dr Bettina Vadera Langata Road Tel: +254 20 600 833 [email protected] Doctor/Medical Director PO Box 18617 Fax: +254 20 600 665 www.amref.org Sean Culligan Nairobi Mob: +254 733 639088 Operations KENYA Fax: +254 20 315 454

DRF German Air Rescue Raiffeisenstrasse 32 Tel (24hr): +49 711701070 [email protected] Rainer Horcher 70794 Filderstadt Fax: +49 711701071 www.german-air-rescue.de Head of Alert Ceter GERMANY

Egres Aeromedical Evacuation Services Postnet Suite 82 Tel: +27 11 701 2172 [email protected] S.D. Avice Du Buisson Private Bag 21 Fax: +27 11 701 2173 www.egres.co.za Managing Director Canseria 1748 SOUTH AFRICA

Euro-flite Air Ambulance Helsinki International Airport Tel: +358 20510 1900 [email protected] Juani Missonen PO Box 187 Fax: +358 20510 1901 Coordinator/Programme Director FIN-01531 Vantaa FINLAND

FAI Flight - Ambulance International Flughafenstrasse 100 (GAT) Tel: +49 911 36009 0 [email protected] Sven Mueller D-90411 Nuremberg Fax: +49 911 36009 59 www.flightambulance.net Operations Manager GERMANY

Intensive Care Air Ambulance PO Box 27567 Tel (24hr): +254 722 600 600 [email protected] Rachel Gituku Post Code 0506 +254 733 600 600 Office Manager Wilson Airport +254 20 600 600 Wanjiku Murigi Nairobi +870 762 395 121 Operations Manager KENYA Fax (24hr): +254 20 605 050 Medic’Air International 35 Rue Jules Ferry Tel: +33 1 41 72 14 14 [email protected] Dr Herve Raffin (Air ambulance and rescue, 93170 Bagnolet (Paris) Fax: +33 1 48 57 10 10 www.medic-air.com General Manager medical escort worldwide) FRANCE Dr. Francois Bouchereau Medical Director

Medical Wings 222 Room 3602 Tel: +662 247 3392 [email protected] Jarin Kiatfuengfoo Bangkok International Airport Tel: +662 535 4735 www.medicalwings.com General Manager & Director Viphavadeo-Rangsit Road Fax: +662 535 4355 Sikan, Donmuang Bangkok 10210, THAILAND

National Air Ambulance 3495 S.W. 9th Ave Tel: +1 954 359 9900 [email protected] George Martinez Ft. Lauderdale Toll Free: +1 800 327 3710 www.nationalairambulance.com Manager Flight Coordination FL 33315 Fax: +1 954 359 9500 USA

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

Netcare 911 Aeromedical Netcare 911 House Tel: +27 11 254 1392 [email protected] Liz Ferguson 49 New Road Fax: +27 11 254 1405 www.netcare911.co.za Halfway House Midrand, 1610 SOUTH AFRICA

Global Medical Support Ullevaal University Hospital Tel: +47 22 96 50 50 [email protected] Otto Karud 0407 Oslo Telefax (24 hr): +47 22 96 50 51 www.globalmedicalsupport.com Marketing Director NORWAY Tel: +47 22 96 50 00 Mau Furuli Telefax: +47 22 96 50 31 Operations Manager

South Pacific Air Ambulance NEW ZEALAND Tel: +649 256 9000 [email protected] Simon Barton AUSTRALIA Fax: +649 256 9111 General Manager Operations SINGAPORE

Red Star Aviation Sahiba Gokcen Int. Airport Tel: +90 216 588 0216 [email protected] Mustafa Atac Kurtkoy 34912 Fax: +90 216 588 0225 www.redstar-aviation.com CEO Istanbul TURKEY

Skyservice Lifeguard Montreal/Dorval Int’l Airport Tel: +1 305 534 5551 [email protected] David Ewing Air Ambulance Inc 9785 Ave. Ryan Fax: +1 305 534 4190 www.skyservice.com Vice President Montreal International Business Development Quebec H9P 1A2 CANADA

Swiss Air Ambulance/REGA PO Box 1414 Tel: +41 333 333 333 [email protected] Walter Stunzi Zurich - Airport Fax: +41 654 3590 www.rega.ch PR/Marketing Manager CH-8058 SWITZERLAND

Tyrol Air Ambulance PO Box 81 Tel: +43 512 224 220 [email protected] Jakob Ringler A-6026 Fax: +43 512 288 888 www.taa.at Managing Director Innsbruk Airport AUSTRIA

VeriSafe International Ltd Unit B, 6/F Tel: +825 3110 1488 [email protected] Francis Chan Lippo Lieghton Tower Fax: +852 3110 2163 www.verisafehk.com Chairman 103-109 Leighton Road www.verisafegroup.com Causeway Bay HONG KONG AIR AMBULANCE INTERIOR

Air Ambulance Technology A-5282 Tel: +43 7722 85051 [email protected] Egon Kuntner Ranshofen Fax: +43 7722 85037/22 www.airambulancetechnology.com President AUSTRIA

Bucher Leichtbau AG Indusriestrasse 1a Tel: +41 (I) 806 2424 [email protected] Daniel Mettler Fallenden/Zurich Fax: +41 (1) 806 2420 www.bucher-group.com CEO CH-8117 SWITZERLAND

ASSISTANCE COMPANIES

AMREF Flying Doctor Service Wilson Airport Tel: +254 20 600 552 [email protected] Dr Bettina Vadera LangataRoad Tel: +254 20 600 833 [email protected] Doctor/Medical Director PO Box 18617 Fax: +254 20 600 665 www.amref.org Sean Culligan Nairobi Mob: +254 733 639088 Operations KENYA Fax: +254 20 315 454

Antalya Assistance Muratpasa Mah. Tel: +90 242 243 6219 [email protected] Murat Arslanoglu Adnan Menderes Bulvari No 19 Fax: +90 242 248 7724 www.fempatr.com Network Manager Gazihan K:4 D:21 Antalya TURKEY

Anubis Assistance International 2 Rue du Te Tel: +331 4816 1888 [email protected] Mr Dominique Vernhes Worldwide Funeral Assistance BP 10375 Roissy Fax: +331 4816 1881 General Manager CD6 Cedex 95706 FRANCE

ARC Transistance 11 Avenue Pleiades Tel: +32 2 776 04 70 [email protected] Hans Biekmann B-1200 Brussels Fax: +32 2 776 04 99 www.arctransistance.com Network Director BELGIUM

ASISTUR Paseo del Prado Tel: +53 7 866 4499 [email protected] Emilio Guevara Fernández 208 e/ Colón y Trocadero Fax: +53 7 866 8087 www.asistur.com Managing Director Habana Vieja www.asistur.cu Nestor Silva Pérez Ciudad Habana Assistance Manager CUBA

International Travel Insurance Journal www.itij.co.uk +44 (0) 117 925 5151 To make an alteration to an existing listing email: [email protected] SERVICEDIRECTORY 37

ASSIST-CARD 15, Rue du Cendrier Tel: +41 22 732 0320 [email protected] Alexia Keglevich 1201 Geneva Fax: +41 22 738 6305 www.assist-card.com Managing Director SWITZERLAND

Assured Assistance Inc. 6880 Financial Drive UK Toll Free: +080013872487 [email protected] Martha Turnbull Mississauga Toll Free: +18003872487 Director of Operations Ontario Tel: +1 905 816 2495 L5N 7Y5 Fax: +1 905 813 4719 CANADA

Customer Care Pty Ltd Level 3 Tel: +612 9202 8222 [email protected] Janine Benson 60 Miller Street Fax: +612 9202 8220 Team Manager North Sydney 2060 NSW AUSTRALIA

FirstAssist Marshall’s Court Tel: +44 208 8652 1313 [email protected] Brian Morgan Marshall’s Road Fax: +44 208 8661 7604 www.firstassist.co.uk Marketing Manager Sutton Surrey SM1 4DU UK First Assistance PO Box 17-310 Tel: +64 9 356 1650 [email protected] Mary-Jo McDonald Greenlane Fax: +64 9 356 1798 www.firstassistance.co.nz Sales & Marketing Manager Auckland NEW ZEALAND

Global Excel Management 73 Queen Street, Lennoxville Euro tel: +1 819 566 1130 [email protected] Brian Allatt Quebec, J1M 1J3, CANADA NA tel: +1 866 566 1130 www.globalexcel.ca Executive Vice President 4242 Cranmore Court Fax: +1 819 566 8335 Christine Francis-Herrin Belle Isle, FL 32812, USA Director of Business Development

Global Voyager Assistance PO Box 11 Tel: +7 095 775 0999 [email protected] Costas Danilenko 125124 Fax: +7 095 775 0998 [email protected] CEO Moscow Cyprus tel: +357 24 62 5099 www.gva.ru Dr Arthur Zulficarov RUSSIA Cyprus Fax: +357 24 62 5065 Director of Operations

Goral Assistance Ltd. Corex House Tel: +972 9 957 9930 [email protected] Sidney Kadoche PO Box 12815 Fax: +972 9 957 9931 General Manager Hertzelya 46733 ISRAEL

IKS Innovative Key Solutions Barbaros Bulvari Tel: +90 212 340 4 IKS(457) [email protected] Özge Yildirim Hattat Halim Sok. Uyum Apt 12 Tel: +90 212 274 99 90 www.iks.com.tr International Business Manager 34349 Besiktas Fax: +90 212 275 13 76 Deniz Ak Istanbul General Manager TURKEY LuzDoc International Medical Service Ltd Rua 25 de Abril, 12 Tel: +351 282 780 700 [email protected] Dr Maria Alice Silva Praia da Luz Fax: +351 282 780 709 Medical Director 8600-174 LUZ LGS PORTUGAL

Marm Assistance Sahiba Gokcen Int. Airport Tel: +90 216 588 0216 [email protected] Mrs Jill Atac Kurtkoy 34912 Fax: +90 216 588 0225 www.redstar-aviation.com CEO Istanbul TURKEY

Mapfre Asistencia, S.A C/Gobelas, 41-45 Tel: +34 91 581 66 01 [email protected] Nikos Antimisaris Madrid 28023 Fax: +34 91 581 18 32 www.mapfre.com/asistencia Regional Director for Europe SPAIN

MEDJET Assistance LLC PO Box 610629 Tel: +1 205 595 6626 [email protected] Philip R Morris Birmingham Fax: +1 205 595 6658 www.medjetassistance.com Executive Vice President AL 35261 Alabama USA

Medex Assistance Corporation 8501 LaSalle Road Tel: +1 800 537 2029 [email protected] John Hmelnicky Suite 200 Fax: +1 410 453 6301 www.medexassist.com SVP Sales & Marketing Towson MD 21286 USA

Medex Assistance Corporation Victoria House, 5th Floor Tel: +44 1273 22 3000 [email protected] Robert Moore 125 Queens Road Fax: +44 1273 22 3001 www.medexassist.com Director of Business Dev. UK Brighton East Sussex BN1 3WB UK

Medical Wings 222 Room 3602 Tel: +662 247 3392 [email protected] Jarin Kiatfuengfoo Bangkok International Airport Tel: +662 535 4735 www.medicalwings.com General Manager & Director Viphavadeo-Rangsit Road Fax: +662 535 4355 Sikan, Donmuang Bangkok 10210, THAILAND

www.itij.co.uk International Travel Insurance Journal 38 SERVICEDIRECTORY To have your company listed in the Service Directory email: [email protected] or call

Medisave Assistance PO Box 64272 Tel: +357 26 220 345 [email protected] Georgia Yagnam 8073 Paphos Fax: +357 26 923 067 Managing Director CYPRUS Tel (24 hr): +357 99 55 3737

MK International Emergency Services 95, Ioanninon Street Tel: +30 210 5154600 [email protected] Minas Kaloumenos 10444 Athens Fax: +30 210 5131660 GREECE

Netcare 911 Aeromedical Netcare 911 House Tel: +27 11 254 1392 [email protected] Liz Ferguson 49 New Road Fax: +27 11 254 1405 www.netcare911.co.za Halfway House Midrand, 1610 SOUTH AFRICA

South Pacific Air Ambulance NEW ZEALAND Tel: +649 256 9000 [email protected] Simon Barton AUSTRALIA Fax: +649 256 9111 General Manager Operations SINGAPORE

Remed Assistance 4. Levent, E. Buyukdere Cad., Tel: +90 212 282 8077 [email protected] Dr. Atilla Erdag Yunlisemre Sok. Fax: +90 212 282 8277 www.remedassistance.com Operations Manager Topcu is Merkezi No1 D:14/B 80660 Istanbul TURKEY

SOS-Hungary Assistance Company Csalogany Street 4/D Tel: +36 1240 0475 [email protected] Dr Peter Felkai Budapest Fax: +36 1439 1440 www.soshungary.hu Medical Director H-1015 Hungary

TBS Team 24 d.o.o. Ljubljanska Ulica 42, Tel: +386 2618 2301 [email protected] Edvard Hojnik 2000 Maribor Fax: +386 2618 5800 www.tbs-team24.com General Manager SLOVENIJA Tomaz Bezensek (covering CROATIA, BOSNIA and HERZEGOVINA & SERBIA) Marketing Manager

TMCA 217 Broadway Tel: +1 212 964 8580 [email protected] Margaret Whartom Suite 600 Fax: +1 212 406 1520 www.tmcatravel.com Operational Manager / VP Travel Division NYC NY 10007 USA Universal Assistance Avenida Córdoba 967 Tel: +(54 11) 4323 6027 [email protected] Ignacio Márquez C1054AA1 Fax: +(54 11) 4323 6001 www.ua.com.ar International Business Manager Buenos Aires ARGENTINA

VeriSafe International Ltd Unit B, 6/F Tel: +825 3110 1488 [email protected] Francis Chan Lippo Lieghton Tower Fax: +852 3110 2163 www.verisafehk.com Chairman 103-109 Leighton Road www.verisafegroup.com Causeway Bay HONG KONG

World Travel Protection Canada Inc. 400 University Avenue Tel: +1 416 911 3565 [email protected] Dr. Ron Mayer Suite 1500 Fax: +1 416 205 4676 [email protected] President & Chief Medical Officer Toronto www.wtp.ca Lambert Boenders Ontario M5G 1S7 VP Operations & Customer Relations CANADA BROKERS

Parkview EMS Ltd 5770 Timberlea Blvd. Tel: +1 905 629 7557 [email protected] France Paquin Suite 201 Fax: +1 905 629 1927 www.parkviewems.com Mississauga Toll Free: +1 888 795 9570 Ontario L4W 4W7 CANADA CLAIMS HANDLERS

IKS Innovative Key Solutions Barbaros Bulvari Tel: +90 212 3404 IKS(457) [email protected] Özge Yildirim Hattat Halim Sok. Uyum Apt 12 Tel: +90 212 274 99 90 www.iks.com.tr International Business Manager 34349 Besiktas Fax: +90 212 275 13 76 Deniz Ak Istanbul General Manager TURKEY Mapfre Asistencia, S.A C/Gobelas, 41-45 Tel: +34 91 581 64 49 [email protected] Barbara Montenergo Madrid 28023 Fax: +34 91 581 16 86 www.mapfre.com/asistencia Cost Control Product Manager SPAIN Tel: +34 91 581 64 37 [email protected] Virginia Villanueva Fax: +34 91 581 41 81 Medical Director

Medex Assistance Corporation 8501 LaSalle Road Tel: +1 800 537 2029 [email protected] Ed Broderick Suite 200 Fax: +1 410 453 6301 www.medexassist.com Director of Claims Towson MD 21286 USA

International Travel Insurance Journal www.itij.co.uk +44 (0) 117 925 5151 To make an alteration to an existing listing email: [email protected] SERVICEDIRECTORY 39

Universal Assistance Avenida Córdoba 967 Tel: +(54 11) 4323 6027 [email protected] Ignacio Márquez C1054AA1 Fax: +(54 11) 4323 6001 www.ua.com.ar International Business Manager Buenos Aires ARGENTINA

CLAIMS MANAGEMENT

Global Excel Management 73 Queen Street, Lennoxville Euro tel: +1 819 566 1130 [email protected] Brian Allatt Quebec, J1M 1J3, CANADA NA tel: +1 866 566 1130 www.globalexcel.ca Executive Vice President 4242 Cranmore Court Fax: +1 819 566 8335 Christine Francis-Herrin Belle Isle, FL 32812 Director of Business Development USA

Strategic Claims Management Ltd 150 Minories Tel: +44 845 345 6611 [email protected] Tim Snowball London EC3N 1LS Fax: +44 845 458 9633 CEO UK Nick Graham Director

CONSULTING SERVICES

IKS Innovative Key Solutions Barbaros Bulvari Tel: +90 212 340 4 IKS(457) [email protected] Özge Yildirim Hattat Halim Sok. Uyum Apt 12 Tel: +90 212 274 99 90 www.iks.com.tr International Business Manager 34349 Besiktas Fax: +90 212 275 13 76 Deniz Ak Istanbul General Manager TURKEY The Maturin Group 902 Arabian Avenue, Tel: +1 407 382 3858 [email protected] Alan Jones Winter Springs Fax: +1 407 382 3846 President FL 32708 USA

Paradigm Network Consulting 2639 N. Riverside Drive Tel: +1 954 609 0573 [email protected] Addy Gonzalez Services Inc. #1105 Fax: +1 954 252 4083 President Pompano Beach FL 33062 USA CRITIAL CARE PATIENT TRANSPORTATION

Lufthansa German Airlines FRA SQ/B Tel: +49 561 99 33 7020 [email protected] Doris Ehring (Patient transport compartment) Frankfurt Airport Fax: +49 561 99 33 117 Key Account, Product & D-60546 Mob: +49 172 36 77 929 Process Management GERMANY

CRM

IKS Innovative Key Solutions Barbaros Bulvari Tel: +90 212 340 4 IKS(457) [email protected] Özge Yildirim Hattat Halim Sok. Uyum Apt 12 Tel: +90 212 274 99 90 www.iks.com.tr International Business Manager 34349 Besiktas Fax: +90 212 275 13 76 Deniz Ak Istanbul General Manager TURKEY FUNERAL DIRECTORS

Defin Funeral Services Muratpasa Mah. Tel: +90 242 248 8389 [email protected] Murat Arslanoglu Adnan Menderes Bulvari No 19 Fax: +90 242 248 7724 www.fempatr.com Network Manager Gazihan K:4 D:21 Antalya TURKEY

Funeraria Officia Roberto Zega Via Clelia 26-28 Tel: +39 067 840 300 [email protected] Cristina Zega Roma Fax: +39 067 802 488 www.zega.it General Manager ITALY

Funeralcare International 221 Upper Richmond Road Tel: +44 20 8788 5303 [email protected] Mike Johanson Putney Fax: +44 20 8788 2525 London SW15 6SQ UK

Kenyon Christopher Henley 83 Westbourne Grove Tel: +44 20 7313 6920 [email protected] Christopher Henley Bayswater Fax: +44 20 7313 6999 www.kchrepatriation.com Managing Director London W2 4UL UK

MK International Emergency Services 95, Ioanninon Street Tel: +30 210 5154600 [email protected] Minas Kaloumenos 10444 Athens Fax: +30 210 5131660 GREECE

Phoenix International 13 The Broadway, Tel: +44 208 993 8767 [email protected] Steve Thomas Gunnersbury Lane, Fax: +44 208 993 5797 Managing Director London W3 8HR UK

www.itij.co.uk International Travel Insurance Journal 40 SERVICEDIRECTORY To have your company listed in the Service Directory email: [email protected] or call

Rowland Brothers International 299 - 305 Whitehorse Road, Tel: +44(0)20 8684 2324 [email protected] Steve Rowland West Croydon Fax: +44(0)20 8684 8000 www.rowlandbrothersinternational.co.uk Tony Rowland Surrey CR0 2HR UK HOSPITALS

Baptist Health South Florida 8900 North Kendall Drive Tel: +1 786 596 2373 [email protected] Yohandra Noriega Miami www.baptisthealth.net Int. Patient Service Director Florida 33176 USA

Clinica Benidorm Avenida Alfonso Purchades 8 Tel: +34 96 585 3850 [email protected] Ana DaPaz Brown 03500 Benidorm Fax: +34 96 586 4345 www.clinicabenidorm.com Medical Director Alicante SPAIN

Evangelismos Hospital 87 Vasileos Costantinou Tel: +357 26 848 000 [email protected] Markos Christodoulides PO Box 62237 Tel: +357 99 644 867 Manager General 8062 Pafos Fax: +357 26 911 883 CYPRUS

Florida Medical Center 5000 W. Oakland Park Blvd Tel: +1 954 730 2780 [email protected] Lydia Rodriguez Ft. Lauderdale Fax: +1 954 730 2805 www.floridamedicalctr.com Director Admitting Department FL 33313 Tel: +1 954 609 0573 [email protected] Addy Gonzalez USA Fax: +1 954 252 4083 International Business Consultant

North Ridge Medical Center 5757 N. Dixie Highway Tel: +1 954 202 4859 [email protected] Doreen Felker Ft. Lauderdale Fax: +1 954 938 3230 www.northridgemedical.com Director Admitting Department FL 33334 Tel: +1 954 609 0573 [email protected] Addy Gonzalez USA Fax: +1 954 252 4083 International Business Consultant

INTERNATIONAL GROUND TRANSPORT CO-ORDINATOR

Parkview EMS Ltd 5770 Timberlea Blvd. Tel: +1 905 629 7557 [email protected] France Paquin Suite 201 Fax: +1 905 629 1927 www.parkviewems.com Mississauga Toll Free: +1 888 795 9570 Ontario L4W 4W7 CANADA MEDICAL COST CONTAINMENT

ChargeCare International PO Box 18 Tel: +44 1409 261 368 [email protected] Philip Marshall Holsworthy Fax: +44 1409 261 633 www.chargecare.co.uk Director of Operations EX22 7WB UK

Global Excel Management 73 Queen Street, Lennoxville Euro tel: +1 819 566 1130 [email protected] Brian Allatt Quebec, J1M 1J3, CANADA NA tel: +1 866 566 1130 www.globalexcel.ca Executive Vice President 4242 Cranmore Court Fax: +1 819 566 8335 Christine Francis-Herrin Belle Isle, FL 32812 Director of Business Development USA

Global Healthcare Network 5960 West Parker Road Tel: +1 469 429 2185(Ext 127) [email protected] Ken Jones Suite 278, #239 Fax: +1 972 312 0549 www.ghealthnet.com President Plano Texas 75093 USA

Global Medical Managment Inc. 7901 SW 36th Street Tel: +1 954 370 6404 [email protected] Raija Hoppula Itzchaki Suite 100 Fax: +1 954 370 8130 www.gmmusa.com Assistant Vice President of Marketing Davie Florida 33328 USA

Hygeia Corporation 7200 Corporate Centre Drive Tel: +1 305 594 9291 [email protected] Joe Radigan Suite 610 Fax: +1 305 594 9201 www.hygeia.net Chief Operating Officer Miami FL 33126 USA

IKS Innovative Key Solutions Barbaros Bulvari Tel: +90 212 340 4 IKS(457) [email protected] Özge Yildirim Hattat Halim Sok. Uyum Apt 12 Tel: +90 212 274 99 90 www.iks.com.tr International Business Manager 34349 Besiktas Fax: +90 212 275 13 76 Deniz Ak Istanbul General Manager TURKEY Intercontinental Corporation 135 N. Pennsylvania Street Tel: +1 317 238 5700 [email protected] Karla Kreger Suite 770 Fax: +1 317 637 6634 Marketing Manager Indianapolis IN 46204 USA

Mapfre Asistencia, S.A C/Gobelas, 41-45 Tel: +34 91 581 64 37 [email protected] Virginia Villanuevas Madrid 28023 Fax: +34 91 581 41 81 www.mapfre.com/asistencia Medicall Director SPAIN

International Travel Insurance Journal www.itij.co.uk +44 (0) 117 925 5151 To make an alteration to an existing listing email: [email protected] SERVICEDIRECTORY 41

Medex Assistance Corporation Victoria House, 5th Floor Tel: +44 1273 22 3000 [email protected] Robert Moore 125 Queens Road Fax: +44 1273 22 3001 www.medexassist.com Director of Business Dev. UK Brighton East Sussex BN1 3WB UK

Medisave Assistance PO Box 64272 Tel: +357 26 220 345 [email protected] Georgia Yagnam 8073 Paphos Fax: +357 26 923 067 Managing Director CYPRUS Tel (24 hr): +357 99 55 3737

Medsave USA 200 Garden City Plaza, Tel: +1 516 622 1700 [email protected] Jeff Baker Suite 201 Fax: +1 516 622 1733 www.medsaveusa.com COO Garden City NY 11530 USA

Netcare 911 Aeromedical Netcare 911 House Tel: +27 11 254 1392 [email protected] Liz Ferguson 49 New Road Fax: +27 11 254 1405 www.netcare911.co.za Halfway House Midrand, 1610 SOUTH AFRICA

Olympus Managed Health Care Inc. 777 Brickell Avenue Tel: +1 305 459 4800 [email protected] Frank Recio Suite 950 Fax: +1 305 530 0766 www.omhc.com Senior Vice President Maimi Florida 33131 USA

Star Healthcare Network, Inc. 850 Seventh Avenue Tel: +1 212 581 8228 [email protected] Gigi Galen Suite # 803 Fax: +1 212 581 8272 President New York 10019 USA

TMCA 217 Broadway Tel: +1 212 964 8580 [email protected] Margaret Whartom Suite 600 Fax: +1 212 406 1520 www.tmcatravel.com Operational Manager / VP Travel Division NYC NY 10007 USA Universal Assistance Avenida Córdoba 967 Tel: +(54 11) 4323 6027 [email protected] Ignacio Márquez C1054AA1 Fax: +(54 11) 4323 6001 www.ua.com.ar International Business Manager Buenos Aires ARGENTINA

MEDICAL ESCORT ON COMMERCIAL AIRLINES

Aeromed 365 Ltd Gainsborough House Tel: +44 1293 582 500 [email protected] Alida Benton High Street Fax: +44 1293 582 501 www.aeromed365.com Managing Director Crawley RH10 1BW UK

Air Ambulance Network 905 Martin Luther King Jr. Drive Tel: +1 800 327 1966 [email protected] Mark Jones Suite 330 Fax: +1 727 937 0276 Vice President Tarpon Springs Florida 34689 USA

AMREF Flying Doctor Service Wilson Airport Tel: +254 20 600 552 [email protected] Dr Bettina Vadera LangataRoad Tel: +254 20 600 833 [email protected] Doctor/Medical Director PO Box 18617 Fax: +254 20 600 665 www.amref.org Sean Culligan Nairobi Mob: +254 733 639088 Operations KENYA Fax: +254 20 315 454

Goral Assistance Ltd. Corex House Tel: +972 9 957 9930 [email protected] Sidney Kadoche PO Box 12815 Fax: +972 9 957 9931 General Manager Hertzelya 46733 ISRAEL

Medic’Air International 35 Rue Jules Ferry Tel: +33 1 41 72 14 14 [email protected] Dr Herve Raffin (Air ambulance and rescue, 93170 Bagnolet (Paris) Fax: +33 1 48 57 10 10 www.medic-air.com General Manager medical escort worldwide) FRANCE Dr. Francois Bouchereau Medical Director

Medical Wings 222 Room 3602 Tel: +662 247 3392 [email protected] Jarin Kiatfuengfoo Bangkok International Airport Tel: +662 535 4735 www.medicalwings.com General Manager & Director Viphavadeo-Rangsit Road Fax: +662 535 4355 Sikan, Donmuang Bangkok 10210, THAILAND

MEDJET Assistance LLC PO Box 610629 Tel: +1 205 595 6626 [email protected] Philip R Morris Birmingham Fax: +1 205 595 6658 www.medjetassistance.com Executive Vice President AL 35261 Alabama USA

Netcare 911 Aeromedical Netcare 911 House Tel: +27 11 254 1392 [email protected] Liz Ferguson 49 New Road Fax: +27 11 254 1405 www.netcare911.co.za Halfway House Midrand, 1610 SOUTH AFRICA

www.itij.co.uk International Travel Insurance Journal 42 SERVICEDIRECTORY To have your company listed in the Service Directory email: [email protected]

Parkview EMS Ltd 5770 Timberlea Blvd. Tel: +1 905 629 7557 [email protected] France Paquin Suite 201 Fax: +1 905 629 1927 www.parkviewems.com Mississauga Toll Free: +1 888 795 9570 Ontario L4W 4W7 CANADA MEDICAL PROVIDERS

Aeromed 365 Ltd Gainsborough House Tel: +44 1293 582 500 [email protected] Alida Benton High Street Fax: +44 1293 582 501 www.aeromed365.com Managing Director Crawley RH10 1BW UK

Aliance International Medical Services PO Box 2650 Tel: +27 11 290 6330 [email protected] BA Breton Rivonia 2128 Fax: +27 11 290 6329 Managing Director SOUTH AFRICA

AMREF Flying Doctor Service Wilson Airport Tel: +254 20 600 552 [email protected] Dr Bettina Vadera LangataRoad Tel: +254 20 600 833 [email protected] Doctor/Medical Director PO Box 18617 Fax: +254 20 600 665 www.amref.org Sean Culligan Nairobi Mob: +254 733 639088 Operations KENYA Fax: +254 20 315 454

LuzDoc International Medical Service Ltd Rua 25 de Abril, 12 Tel: +351 282 780 700 [email protected] Dr Maria Alice Silva Praia da Luz Fax: +351 282 780 709 Medical Director 8600-174 LUZ LGS PORTUGAL

Mapfre Asistencia, S.A C/Gobelas, 41-45 Tel: +34 91 581 64 37 [email protected] Virginia Villanueva Madrid 28023 Fax: +34 91 581 41 81 www.mapfre.com/asistencia Medical Director SPAIN

Netcare 911 Aeromedical Netcare 911 House Tel: +27 11 254 1392 [email protected] Liz Ferguson 49 New Road Fax: +27 11 254 1405 www.netcare911.co.za Halfway House Midrand, 1610 SOUTH AFRICA

Parkview EMS Ltd 5770 Timberlea Blvd. Tel: +1 905 629 7557 [email protected] France Paquin Suite 201 Fax: +1 905 629 1927 www.parkviewems.com Mississauga Toll Free: +1 888 795 9570 Ontario L4W 4W7 CANADA

SOS-Hungary Assistance Company Csalogany U.4/D Tel: +36 1240 0475 [email protected] Dr Peter Felkai Budapest Fax: +36 14391440 www.soshungary.hu Medical Director H-1015 HUNGARY

STRETCHER SYSTEMS

Bucher Leichbau AG Indusriestrasse 1a Tel: +41 (1) 806 2424 [email protected] Daniel Mettler Fallenden/Zurich Fax: +41 (1) 806 2420 www.bucher-group.com CEO CH-8117 SWITZERLAND

Med-Pac Inc PO Box 285 Tel: +1 701 492 7950 [email protected] Tim Wheelbourg/Ralph Braaten 302B 39 St. NW Fax: +1 701 492 7951 www.med-pac.net President Fargo ND 58107 USA TRAVEL AGENTS

Parkview EMS Ltd 5770 Timberlea Blvd. Tel: +1 905 629 7557 [email protected] France Paquin Suite 201 Fax: +1 905 629 1927 www.parkviewems.com Mississauga Toll Free: +1 888 795 9570 Ontario L4W 4W7 CANADA

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

UNDERWRITERS

Mapfre Asistencia, S.A C/Gobelas, 41-45 Tel: +34 91 581 51 61 [email protected] Jose Manuel Martinez Iglesias Madrid 28023 Fax: +34 91 581 18 32 www.mapfre.com/asistencia Int’l Commercial Director SPAIN

International Travel Insurance Journal www.itij.co.uk ONTHE MOVE 43

BIBA chooses top dogs Two new faces for Heath © Newscast CONTRIBUTORS Tim Ablett has worked in a senior position for a number of insurers, including Lloyds, International Assistance Services, The British Insurance As a result of continued growth in its retail division, Sun Alliance and Groupama. In April 2003, he was at the Brokers’ Association Heath Lambert Insurance Services (HLIS) has head of a successful bid for the healthcare and assistance business of Royal & SunAlliance – which has now been (BIBA) has announced appointed Paul Hickman as operations director, rebranded as FirstAssist Group Limited and which he now the appointment of covering home and contents, motor and travel leads as chief executive. Max Taylor as insurance. Paul joins HLIS following three years as Roger Allnutt is a freelance travel writer based in Canberra, chairman elect of the operations manager for Primary Direct, running their Australia, and has material published widely in magazines trade organisation in personal lines contact centre operation. He began his and newspapers in Australia and New Zealand. He travels widely both in Australia and overseas. July 2004. He takes insurance career as an underwriter 27 years ago. Lord Marshall (right) with Rod Eddington up the post with In addition, David Rudd has been appointed business Dick Atkins is chief counsel for International Recoveries, undivided board and product development director. Prior to joining Philadelphia, which provides global legal assistance to the travel insurance industry. He is in charge of International approval and will HLIS in 2001, David was responsible for product, e- End of era at BA Recoveries’ legal hotline and has been involved in handling succeed Hamish Max Taylor commerce and business development at Halifax The departure of Lord Marshal as chairman of British international legal incidents for the past 20 years. He can be Ritchie, the current General Insurance Services. He has also spent 20 Airways, after 20 years at the helm, marks the end of reached by e-mail on [email protected]. chairman of BIBA, at years in a number of insurance and financial services an era. But the succession of Martin Broughton, who Dr Simon Brownleader is the senior medical officer at the July Annual roles for Legal & General and the NAAFI. will give chief executive Rod Eddington a new face at Healix International. General Meeting. Paul Smith, managing director of HLIS commented, the top, will probably be well received, not least Miles Clarke is a Sydney-based freelance journalist with Max is former ‘These appointments significantly strengthen the because he comes without the baggage of the more than two decades’ experience in newspapers, radio chairman of Lloyd’s, management team and enable us to focus upon previous leader who had fought so many battles – not and trade press. As a business and travel writer, his work takes him throughout the Pacific, Southeast and East Asia, and deputy chairman expanding our operational capabilities whilst also least with Sir Richard Branson’s Virgin Atlantic. Australia and New Zealand. of Aon Limited where developing new products and distribution channels.’ He is taking a big pay cut from his previous job at he is a member of the tobacco giant BAT. He is himself a non-smoker. Saby Ganguly is an India-based business writer with more than 20 years’ experience, including 16 in the Middle East. company’s worldwide He is also the founder of IndiaOneStop.Com, which is one group executive Baker-Bates heads of India’s earliest established business-to-business websites. committee. In his role Eric Galbraith David Ing is a freelance journalist covering mainly travel and at Aon, Max is FirstAssist tourism issues in Spain. He writes on air transport for a responsible for managing and developing major client Moves at top of leading international news agency, as well as contributing relationships around the world and for developing FirstAssist has special features to Newsweek and writing in-flight magazine articles and guidebooks. Aon Risk Service’s business. appointed its first Skandia BIBA’s announcement follows its recent appointment of chairman, Rodney One of Sweden’s top financial services businesses, iJET® Travel Intelligence® (www.ijet.com), the travel risk new chief executive Eric Galbraith, who joined in Baker-Bates. With an Skandia Försäkrings AB, has appointed a new chief management company, provides real-time Travel Intelligence information through its award-winning November. Eric Galbraith started in the broking business inspiring four decades executive officer, Hans-Erik Andersson, who was Worldcue® technology platform for tracking and in 1965 with the Marsh Group and 30 years later went experience in business formerly a senior executive with the group. Since communicating with travellers. iJET services are backed by regional and category specialists from the fields of on to run the Royal Bank of Scotland insurances. Three and commerce, and 1999, he has been chairman of the Nordic region for intelligence, security, travel, and health who staff an around- years ago, he joined Aviva/Norwich Union. most recently holding Marsh & McLennan Cos, also known as MMC, and the-clock operations centre in Annapolis, Md. For more Hamish Ritchie, BIBA’s chairman, said, ‘Eric was the chief executive for Marsh Europe, which is MMC’s risk and insurance information, look at www.ijet.com. selection board’s unanimous choice for the job. He fulfilled position at Prudential Financial Services, Baker-Bates is services operating concern in Europe. Dr Sean Keogh is managing director of SecureRetrieve, the key criteria of someone with considerable experience expected to add enormous value to FirstAssist. Mr Andersson said that he is keen to get started in his which is an integrated security and medical service that he of the industry, who was well known in both the broking He started his career as a chartered accountant before new job, adding that Skandia has a ‘strong, sound founded in 2001. He is a certified consultant in emergency medicine in Europe and Australasia and holds an MBA from and underwriting field and who is passionately committed moving into management consultancy in the financial core, and an optimistic view of the future.’ London Business School. He has extensive international to the insurance broking business.’ sector, where he focused on design and implementation Bengt Braun has resigned as chairman of Skandia after experience in challenging, remote and high-risk adverse of trading systems. He is currently chairman of the a report alleging that the executives had misled the environments worldwide, ranging from Afghanistan to urban Soweto. executive managing partners of C. Hoare & Co board and auditors. This was the latest instalment in a Rogers toughens Bankers, as well as having a portfolio of non-executive long-running corporate scandal involving accusations of Milan Korcok is an award-winning freelance health policy and economics writer who covers travel insurance, public director and chairman appointments which makes him a mismanagement, excessive bonuses and free luxury health, and medical education issues in Canada and the Journeys’ profile strong addition to the FirstAssist team. apartments for some of the firm’s top managers. United States. He has been writing about health financing ‘It is such a boost to have someone on the board with Former CEO Lars-Eric Petersson was sacked last April, and policy issues in the United States and Canada since the 1960s and is a frequent contributor to leading North Top travel insurer such a wealth of experience,’ confirmed Tim Ablett, and the goup has had to unravel its international American professional journals and consumer media. He Journeys Travel chief executive. ‘The leadership team at FirstAssist network. Established in 1855 and a veteran of lives in Fort Lauderdale, Florida. Insurance has selected already has wide-ranging experience in the health and international insurance markets, the Swedish group Fiona McDonald leads the travel insurance team at John Rogers for the wellbeing marketplace and Rodney will complement has had to wind down some of its foreign operations FirstAssist. Before the new company was created, she post of marketing that with his hands-on knowledge of a number of our as economies have slowed and capital markets have worked for over 23 years at Royal & SunAlliance, taking executive. Journeys key target sectors, which we want to develop in the faltered, especially in the US. over responsibility for Royal & SunAlliance’s travel account in 1997. She leads a specialist team of underwriters and believes that Rogers’ coming months and years.’ account managers in Purley, and is chair of the ABI Travel role will strengthen Insurance Committee. the company’s profile, Joaquin Rodriguez is a freelance journalist specialising in build on existing trade AIG career paths Spanish affairs. He has worked in a number of posts, relationships and will including PR and communications manager at Mapfre Asistencia, communications officer in the Spanish Navy, and promote Journeys to Insurance giant AIG has named Don Kanak as vice news correspondent for the Spanish press. potential new agencies throughout the UK. chairman. Kanak, formerly the head of AIG’s companies Commenting on the new appointment, managing in Japan and South Korea, will join Martin Sullivan in David Stirling began his career at Lloyd’s in reinsurance, and progressed through the handling, production and placement director Patrick Chong said, ‘John brings to Journeys a sharing chief operating officer and vice chairman duties. of all classes of non-marine insurance and reinsurance. In wealth of creative experience and we will work AIG Europe Ltd has also appointed Lesa Storr as 1985, he set up Crispin Speers & Partners with a team of together to develop new initiatives that help keep regional underwriter for the crisis management division. colleagues and is currently responsible for both the UK and international accident and health risks, including employee Journeys ahead of the competition.’ With 11 years of insurance industry experience under benefits and treaty reinsurance. her belt, Lesa will have no problem developing AIG Europe’s crisis management portfolio in the UK. Would you like Published on behalf of New year, old hand to write for us? Voyageur UK (Travel Services) Ltd, Voyageur Buildings, 43 Colston Street, This new year, an old-hand at Fortis Corporate Top man at Goshawk Are you interested or Bristol BS15AX, UK Insurance will be appointed as chief executive officer. Patrick Coene, currently the vice president at Fortis, involved in travel insurance The information contained in this publication has been published quits in good faith and every effort has been made to ensure its will shortly be reporting directly to Jozef De May, or health industries? accuracy. Neither the publisher nor Voyageur Ltd can accept any chairman of the supervisory board. Chris Pagan, chief executive of insurance group responsibility for any error or misinterpretation. All liability for loss, disappointment, negligence or other damage caused by Patrick began his career at DRI Europe, an economic Goshawk, has left the company, which was recently Whether you are a professional reliance on the information contained in this publication, or in the information and forecasts provider. Subsequently he kicked out of Lloyd’s for its management failings. Pagan journalist or an industry event of bankruptcy or liquidation or cessation of the trade of any company, individual or firm mentioned, is hereby excluded. was a management consultant and project leader with said that he would not be resigning over the matter, professional we would love to McKinsey & Company for six years. More than 10 which makes one wonder if he was pushed. hear from you Printed by St. Ives (Roche) Ltd years ago, Patrick entered the operational world of Group underwriting director Andrew Gammell also Call Ian Cameron at the ITIJ offices Copyright © Voyageur Publishing 2003. Materials in this insurance within Fortis, initially at Fortis AG, and then left at the end of what has not been a happy year for publication may not be reproduced in any form without at Fortis Corporate Insurance. the company. Goshawk ceased trading at the London or email him: [email protected] permission. market after an independent audit. www.itij.co.uk International Travel Insurance Journal